The purpose of negotiation skills training is to ensure participants sharpen negotiation skills and understand the nature of closing the deal. Subjects covered during the training vary, yet all help individuals gain skills in conflict management, negotiation and advanced counter negotiation tactics.
Training Presentation Negotiation Skills Why this Session ? Identify and discuss individual sources of negotiation strength Practice skills that can influence the outcome of the negotiation Develop an awareness of the importance of personality traits, trust and self-awareness in effective negotiation Understand the relationship between conflict and negotiation Identify potential problems in the negotiation process Develop action plans to overcome problems / issues What is Negotiation ? Negotiation occurs when conflict exists between groups and both parties are prepared to seek a resolution through bargaining. OR Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage. Why Negotiation ? Negotiation is needed to resolve intra-person or inter-person conflicts / disagreements / clash of interests. Negotiation is something that we do all the time and is not only used for business purposes.The aim of negotiation is to explore the situation, and to find a solution that is acceptable to both the parties. Negotiation is one of the most difficult jobs a person can do. It requires not only good business judgment but also a keen understanding of human nature. Example of Negotiation Day to Day with your family, friends, relatives Day to Day at workplace Employee and Employer Commercial In the Marketplace Legal Issues Purchasing Selling and others Personal Diagnostic You need to review the statements, and circle the numbers of those that they know they need to work upon Remember to sort these in the context of your need to influence others, and skilfully get people to take your point of view Personal Diagnostic Activity When you have all completed a self assessment sheet, the group should have a meeting to discuss the self assessments Please share your experiences Various Types of Negotiation Planned Negotiation Integrative negotiation is often referred to as 'win-win' and typically entails two or more issues to be negotiated. It often involves an agreement process that better integrates the aims and goals of all the involved negotiating parties through creative and collaborative problem solving. Distributive negotiation usually involves people who have never had a previous interactive relationship, nor are they likely to do so again in the near future. Simple everyday examples, would be when we're buying a car or a house. Purchasing products or services are simple business examples where distributive bargaining is often employed. Remember, even friends or business associates can drive a hard bargain just as well as any stranger. Hard Negotiation Hard negotiation involves the negotiation of positions, rather than interests It is highly competitive, seeing victory as the number one goal Hard bargainers, see the participants as opponents. They disbelieve the other side and play tricky games to try to gain the negotiating advantage Hard bargainers refuse to make concessions and demand one-sided gains as the price of an agreement When confronted with a softer opponent, hard bargainers almost always will win. When confronted with another hard bargainers, however, it can result in no agreement, both losing Soft Negotiation Soft negotiation also involves the negotiation of positions, rather than interests. However, it treats the participants as friends, seeking agreement at almost any cost, and offering concessions easily in the interests of preserving (or creating) a good relationship with the other side. Soft bargainers trust the other side, and are open and honest about their bottom line Principled Negotiation Principled negotiation is the interest-based approach to negotiation. Fundamental principles of principled negotiation are: it separates the people from the problem; focuses on interests, not positions; insists on objective criteria of the solution. You are out ! - Exercise Group activity Each individual in the group have to negotiate their way into staying in the group. The group collectively votes to remove an individual from the group. 5 minutes for each individual to debate or negotiate 2 minutes for decision making You’re out ! - Exercise What methods of negotiation ? Reasoning or Persuasion ? How did the chosen individual react to the decision made by the group ? Were they threatened or had taken up the challenge actively? Negotiation Styles The win-lose is the most common style of distributive negotiation wherein a person pursues his or her own wishes at the expense of other party. Under this style negotiation is viewed as a game to be won. Losing may be taken as failure, weakness, and a loss of status. When engaged in this style, the parties may use different tactics to win like: persuasion, argument, power, or even threat. Usefulness A forceful position during negotiation may be appropriate when the stakes are high and costs of indecision and compromise are non-affordable. It is useful when issues of legality and ethics are at hand. Where you do not expect to deal with people ever again, and you do not need their goodwill. When there is only one prize. At management level, this style is helping when unpopular but necessary decisions must be made. Win-lose is also a style to use when the other party has a tendency to take advantage of you. Avoiding Style Avoiding the conflict in certain situations – need of no negotiation at all – is also a negotiation. People may physically withdraw by simply leaving the scene of conflict or they can refuse to get involved by using silence, or changing the topic of conversation. Usefulness Useful when: your involvement will only result in negative outcomes for you; cost of challenge / cost is quite high; there is little chance of success; relationships are more important to be maintained; to buy time and / or get other party cool down. Accommodating Style Accommodating style of negotiation entails giving in to the wishes of the opponent party. Like avoidance, accommodating the other party almost in one-sided way, is also a negotiation. Unlike avoiders, the accommodators enter into negotiation and give in a way that strengthens the relationships. During negotiation, giving in totally / partially may be part of strategic strategy. Usefulness When other issues are more important that need satisfying others and maintaining cooperation. When social credit is to be built for some final issue. To minimize loss when one is already losing. When relationships are more important than the interests. Compromising Style Compromising, the most common style of conflict resolution, entails splitting the differences and reaching an acceptable middle ground solution through give-and-take whereby each party should gain something and may have to lose something. Parties under this style of negotiation, generally use techniques like trading, bargaining, and voting etc. Most of the negotiations though start with lose-win style, do end up at the compromising style. Usefulness It is useful: when two parties have relatively equal power and have mutually exclusive goals; when time is not available to solve problems that are complex and require a great deal of effort to sort out all the issues; when competition or collaboration fails to lead to a solution. Collaborating (Win-Win) Style Collaborating is based on a willingness to accept other party’s needs while asserting your own needs as well. It assumes that there is some reasonable chance that a solution can be found to satisfy both parties in conflict without losing much. Such solution, most of the time, is not possible but it is worth trying to find that. Negotiation Style I Win,You Lose I Win,You Win I Lose,You Lose I Lose,You Win Win-Win Negotiation Best type of negotiation is “win-win” which means both parties will be satisfied with the result. “Win-Win” negotiation is about agreement not conflict. 1. Plan your questions, strategies, alternative offers and suggestions 2. Listening and Showing genuine interests 3. Competent negotiator appreciates and praises 4. Be prepared to be flexible and to change your position 5. List all the points covered in the meeting A Story Two brothers had an orange. Each of them wanted to have it. Ultimately they resolved the conflict through splitting the orange into two halves, one half for the each. Elder brother ate the pulp and threw the peeling. The younger brother who did not have an natural liking for the oranges and just wanted the peeling as a recipe ingredient, used the peeling and discarded the pulp. Your Comments What negotiation style(s) the two brothers adopted to resolve the conflict? Offer your comments over degree of usefulness of the style(s) used in this situation The Four Phases of Negotiation BARGAIN PROPOSE DISCUSS PLAN The Four Phases of Negotiation Plan What do we want? What do they want? What will/can we trade? Explore all the available options of the trade. Explore long and short term implications of each option for all parties involved Set objectives in terms of acceptable limits and that you have a realistic chance of achieving. Visualise possible gains, not losses. Be aware that the opposition might have a hidden agenda The Four Phases of Negotiation Plan Example – Share your experience. Each individual share an example The Four Phases of Negotiation Discuss Positive Powerful opening – confident body language, tone and words Break the ice and discuss neutral topics and build rapport Cover: Why we are here, what we are going to do, how long it will take Emphasise the need for agreement at the kick-off Listen to what the other party say and how they say it Observe non-verbal signals Sit where you can see everyone The Four Phases of Negotiation Discuss Example – Share your experience. Each individual share an example The Four Phases of Negotiation Propose Decide whether you will speak your proposal first or respond to the proposal from the other party Put forward your proposal with as little emotion as possible. Example – Share your experience. Each individual share an example The Four Phases of Negotiation Propose Submissive (Passive) Assertive (Confident) 1. How about we make it 10%? If you make it a 10% discount, then we will order in lots of 100,000. 2. No Problem.... 3. I hope you can meet that deadline.... 4. We were hoping to include a liquidated damages clause.... 5. It‟ll be tough to meet that deadline but ok we‟ll give it a go .... The Four Phases of Negotiation Propose Submissive (Passive) Assertive (Confident) 1. How about we make it 10%? If you make it a 10% discount, then we will order in lots of 100,000. 2. No Problem.... If you pay our costs then we could consider uplifting it ourselves. 3. I hope you can meet that deadline.... If you meet that deadline then we can consider giving you the work 4. We were hoping to include a liquidated damages c If you include a liquidated damages clause then clause.... you are eligible to be awarded the contract 5. It‟ll be tough to meet that deadline but ok we‟ll give it If you pay our premium hourly overtime rates a go .... then we’ll go for that deadline. The Four Phases of Negotiation Bargain A bargain is the conclusion of the negotiation.... Phrases like: „So, what you are offering is…‟ „Ok I get the picture…‟ „Let me be clear, you want x for y‟ „Here‟s how I see it….‟ „To sum up, in return for x I‟ll agree to y‟ Above examples show that the two parties are moving towards each other and the negotiation is coming to agreement.... The Four Phases of Negotiation During Bargain Be prepared to make concessions or You may not need to go any further Do not ignore issues in order to speed up negotiations. Record fully all agreements finalised at the negotiations close. Example – Share your experience. Each individual share an example Closing the Negotiation Summarise the details of the conditions and the offer, and ask for an agreement. The Four Phases of Negotiation BARGAIN PROPOSE DISCUSS PLAN Negotiation Mixer TASK: In your teams, negotiate with your partners to decide how you would divide USD $ 100 among you. Once you have agreement, all members stand up. You have 120 seconds to negotiate. Are you ready to begin? Go! BATNA Deadlock What you would most prefer to do if you and the other party are not able to reach a deal ? Best Alternative To a Negotiated Agreement Help you make smarter choices because they remove the pressure to reach an agreement. Before you negotiate, you should also consider the options you have if you cannot reach an agreement.These options make up your BATNA BATNA 1. Describe a negotiation you‟re facing in the future 2. Ask yourself “What will I do if this agreement cannot be reached?” List Alternatives 3. Outline the interests that the alternatives meet or don‟t meet. Consider – ease, process, time pressure, relationships, risks 4. What else could you do to improve your analysis? 5. Are the alternatives practical and actionable? Non-Verbal Communication 1. Speech pace, pauses 2. Pitch and Tone 3. Use of space, distance 4. Body motion and gestures 5. Body posture 6. Facial Expressions 7. Look / Gaze 8. Touch and body contact 9. Style of written text – Interrogative etc Non-Verbal Communication Body Language What it could mean ? Avoiding eye contact Making excessive eye contact Fiddling with objects such as hair, pencils, or papers Crossing and uncrossing the legs Keeping legs and arms crossed Non-Verbal Communication Body Language What it could mean ? Avoiding eye contact Lack of confidence in bargaining position Making excessive eye contact Trying to bully or intimidate Fiddling with objects such as hair, pencils, Lack of confidence in bargaining or papers position Crossing and uncrossing the legs Impatient – wants to cut a deal quickly Keeping legs and arms crossed Not receptive to your bargaining position Non-Verbal Communication The impact of a speaker's feelings and attitudes in a conversation 60% 55% 50% 38% 40% Verbal (w ords) Impact 30% Visual (face) 20% Vocal (voice) 7% 10% 0% Verbal Visual Vocal (w ords) (face) (voice) Reference: Making Presentations Happen (Page 7) by Michael Brown, 2004 Non-Verbal Communication If we combine the last two columns, we get what we see in the following figure: Your words versus how you present them 100% 93% 80% 60% Your Words Impact 40% How you present your words? 20% 7% 0% Your Words How you present your words? Reference: Making Presentations Happen (Page 7) by Michael Brown, 2004 Conflict - Exercise Each participant record 3 conflicts that they were involved in, in the last 3 days. The „toxic words‟ that triggered the conflicts and made them feel that they had to protest and defend themselves. 10 Minutes Toxic Words Conflict - Exercise Subject of the People What happened? Trigger Conflict Involved Word Example: Me and Supplier accused me of being Always Email Problem Materials unprofessional by saying Supplier “ You always not sending emails on time ” 1: 2: 3: Conflict - Exercise To DO Volunteer participant to read the first conflict case they have identified ... The person on the left should then proceed to provide a solution to resolve the conflict..... Next person to present his own conflict and again the next people on the left should provide the solutions..... Continues with this cycle until all cases have been presented.... Conflict - Exercise Questions How did recalling a conflict make you feel ? Why was the trigger word that made you feel you are in a conflicting situation? How helpful were other‟s suggestions? Dealing with Difficult Negotiators. Threats Bossy Bullying Irritation Pressure Focusing on their own interests and not yours Dealing with Difficult Negotiators. Case 1 - The man you are negotiating with has a bombastic and rude manner. He interrupts constantly and loudly and at a pace that does not allow interruptions to his flow. He is emphatic and threatening and shows no interest in your point of view. Do you: a) Retaliate in kind with matching behaviour? b) Wait for an opening to say your piece? c) Agree to what he wants. Dealing with Difficult Negotiators. a) Retaliation is a challenge. He is not intimidating you enough – he will put on more pressure. b) Yes. But only if you are clear that his behaviour will not affect your focus on the outcome. c) Never! Do not give him the satisfaction, by giving into a bully and their intimidation. Dealing with Difficult Negotiators. Case 2 - The Owner of a large customer is an abusive and bossy person, who has a list of swear words and will not accept ‘No’ for an answer. She expects you to sit there and take it and throws papers around when she wants to make a point. Do you: a) Behave in a contrasting manner and keep your cool? b) Agree to what she wants? c) Wait to say your piece? Dealing with Difficult Negotiators. a) To contrast her behaviour only shows her that her behaviour is working, she’ll put on more pressure until you give in. b) Never! Do not give in to her threats. c) Yes, but only if you are sure her behaviour will not affect the outcome. How do You Negotiate ? GOOD BAD Active Listening x Interrupting Question for Clarification x Attacking Summarising x Blaming Test Commitment x Talking too much Seeking and giving Information x Threats Encourage two way communication x Taking it personally State & plan your proposal then summarise x Defensive body language Do’s for Negotiations Obtain as much background about the subject to be discussed from the other side as possible. Assess the other party's strengths, weaknesses and negotiating strategies. Study the culture of the other party and negotiating style. Identify your needs. Adopt cooperative tactics but be ready to use a competitive approach when warranted. View negotiation as an opportunity to build a rewarding working relationship that is mutually beneficial over the long term. Project confidence, credibility and professionalism. Anticipate last-minute demands when planning your negotiating strategy and tactics. Examine the draft agreement and clarify any points that you don't understand, before signing. Follow up complaints and seek mutually agreeable solutions. Don'ts for Negotiations Enter into negotiations without preparation. Assess the other party's position and behaviour on the basis of your own culture or background. Develop negotiating strategies based on assumptions. Make too many concessions in the early stage of negotiations. Under estimate the other side. Rush into hasty decisions and calculations. View closing as a separate step in the negotiations. Be in a hurry to close. Make large concessions at the last minute. Consider your involvement finished after the agreement has been signed. Take a rigid stance concerning any required re-negotiation. Personal Action Plan Determine what you want to accomplish (goal) after this session ? Plan the direction by which you intend to achieve the goal ? Give time to your good self. Personal Action Plan Area of Timelines improvement / Plan of Action for Action development Negotiation Planning Before engaging in formal Immediately. 1 negotiations, I first determine my needs and what I want to achieve. 2 3 Recommended Books Getting to YES – Negotiating Agreement Without Giving In by Roger Fisher & William Ury Lateral Thinking - by Edward De Bona The Alchemist – Paulo Choelho The 7 Habits of Highly Effective People by Stephen R. Covey Built to Last by Jim Collins
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