Definition of Negotiation by vgw19124

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									Definition of Negotiation:
“Discussion aimed at reaching an agreement” (Oxford English Dictionary)

The Negotiating Process
Step One              Prepare…                What   do you want?
Step Two              Debate…                 What   do they want?
Step Three            Propose…                What   wants can we trade?
Step Four             Bargain…                What   wants will we trade?
Step Five             Agree…


Step One - Prepare
It is important that you do not jump into negotiation without thoroughly preparing your case in
advance…

L – LIST your objectives and their objectives
I - Those you INTEND to get
M – Those you MUST get

    Do your research. Make sure you get all the facts that have a bearing on the issue being
     negotiated, making sure that they are accurate and complete.
    Find out and observe any procedures that exist for pursuing the issue.
    Having prepared your case plan how you intend to pursue the issue. What will be your
     tactics?
    It is important that you are clear about your objectives. Decide which ones you would like to
     achieve and what your fallback position will be. Remember negotiation often involves
     compromise.
      Anticipate the arguments and responses you are likely to receive in order to be prepared
          to counter them. Is there a possibility of an acceptable compromise?


Step Two – Debate
    Listen carefully
    Ask questions
    Clarify
    Summarise

    Establish a businesslike atmosphere – be confident!
    State your case clearly and with brevity – emphasise the important points.
    Listen carefully – be courteous and don’t interrupt.
    Take notes – in case of a later dispute and to plan your next steps.
    Ask for an adjournment (“time-out”) if you need to discuss a new development, an
     unexpected response or if you need time to collect your thoughts. Be clear on the reasons for
     and the length of the adjournment. The usual protocol is that the side who seeks the
     adjournment should be the one to restart the negotiation.
    Maintain discipline and unity. Consider using one main speaker. If anyone on the team
     considers that an important point has not been raised, pass a note to the speaker or ask for
     an adjournment. Never disagree in front of the other party.
    Ask questions and clarify issues - summarise as appropriate to check understanding.
    Don’t argue, interrupt or assume!




This handout includes information kindly provided by KPMG and by the MSF Union.
Negotiation Skills\1Negotiation Handout.doc
Step Three – Propose
    Make proposals.
    State conditions.
    Express concerns.
    Search for common interests.
    Begin to identify those concessions you could make that would hold most influence over the
     other side – and those they would be willing to make in return.
    Use positive body language.


Step Four - Bargain
    Listen out for offers to settle - key words are IF and THEN.
    Start making concessions.
    Every concession should have a condition - IF you … THEN I will …
    Conserve your concessions - don’t give everything away too soon.
    Don’t be afraid to say no.
    Be aware that adjournments, especially at this stage in the negotiation, may give the
     impression that you are considering an offer.


Step Five - Agree
    Usually one final concession: “IF you do that, THEN we have a deal!”
    Gain commitment.
    Record and agree results.
    Leave satisfied – both sides should be happy with what has been agreed.


Beware the 7 Deadly Sins of Negotiating!
Pride - Be prepared to compromise
Gluttony - Don’t bite off more than you can chew
Anger - Handle objections calmly
Covetousness - Prioritise needs/wants
Envy - Know competitors strengths & weaknesses… AND your own
Sloth - Do your homework
Lust - Don’t look desperate to settle


The Language of Negotiation
MFP - Most Favourable Position (this is what you are aiming for)
WAP - Walk Away Position (the stage at which you would withdraw from the negotiation)
BATNA - Best Alternative to a Negotiated Agreement (if you can’t agree, then what next?)
IVC - Inexpensive Valuable Concessions (valued highly by the other side but may cost you little)
TO - Time Out (use if new information comes to light that causes you to reconsider)


Summary
    Negotiation is a key skill - for life
    Negotiation should be win/win
    Negotiation is a process which can be learnt
    Preparation is vital.
    Be aware of your own style and performance and seek every opportunity to improve.




This handout includes information kindly provided by KPMG and by the MSF Union.
Negotiation Skills\1Negotiation Handout.doc

								
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