Docstoc

Short Term Car Lease Car Company Insurance

Document Sample
Short Term Car Lease Car Company Insurance Powered By Docstoc
					 Effective
Negotiation

Adapted from Articles & Advice Columns
                   by
      Steven Cohen, President,
   The Negotiation Skills Company
        Negotiation is a Life Skill
 • Everybody negotiates all of the time.
 • It helps people reach decisions jointly in a civilized way




        Definition of Negotiation
Successful negotiation is a process that yields an agreement,
 as part of collaborative decision making, that each party
                      will willingly fulfill.
  The fundamental asset of negotiation is information.
 Negotiation is not a competitive sport

Taking a hard line may be fine -- but only in the short term,
 and only if you really believe that your counterpart is your
 adversary. Before you come up with a “take it or leave it”
          approach, consider the consequences.

Negotiation is often a series of episodes, which means that
considering your counterpart as a partner or a collaborator is
 the foundation of trusting, fruitful, and ongoing negotiation.


 “How the game is played matters more than who wins.”
          Steven P. Cohen, Pres., The Negotiation Skills Co.
   Negotiating Requires Multiple Steps
Knowing:
 1. what you really want, why and how badly you want or
    need it, and at what point you're willing to walk away
    without getting it.
 2. Know what the other party wants and why it's important
    to them.
 3. How much do they need or want what you have to offer?
 4. What would make them really happy?
 5. Are they being honest & sincere?

         This is vital information if you're going to craft a
          creative resolution that will satisfy everyone.
Six Stages in the Negotiation Process:
1.   Orientation and fact finding
2.   Resistance
3.   Reformulation of strategies
4.   Hard bargaining and decision making
5.   Agreement, and
6.   Follow-up


       Acuff, Frank L. (1997).
       How to Negotiate Anything with Anyone
       Anywhere Around the World. New York:
       American Management Association
 Five Levels of Communication
1. Facts – what someone sees, hears, touches, &
   perceives the facts to be.
2. Thoughts – what their thoughts about the facts are.
3. Emotions – how they feel because of their thoughts
   about the facts.
4. Meaning/Importance – why it’s important to them.
5. Actions/Expectations – what they want.



            Information from: Resource International
               Eight Pillars of Negotiational Wisdom
                                               by Steven Cohen
1.   Be Conscious of the difference between positions and interests. If you can figure out why you want
     something - and why others want their outcome - then you are looking at interests.

2.   Be Creative. Using brainstorming techniques, listening to outlandish proposals and opening up to
     unanticipated possibilities expands agreement opportunities. If you respond with new ideas and do the
     unexpected, you can open doors to far greater gains than when you behave predictably. Creativity can
     make everyone look good.

3.   Be fair. If people feel a process is fair, they are more likely to make real commitments and less likely to
     walk away planning ways to wriggle out of the agreement

4.   Be prepared to commit. You shouldn't make a commitment unless you can fulfill it. Your commitment
     isn't worth much unless the parties to the negotiation are Drop-Dead Decision-Makers. Moreover,
     commitment is not likely to result unless all parties feel the process has been fair.

5.   Be an active listener. Focus on what others say, both on their words & their underlying meaning.

6.   Be conscious of the importance of the relationship. Most of your negotiation is with repeaters, (family,
     friends, employers, team mates, etc...).

7.   Be aware of BATNAs. BATNA stands for the Best Alternative To a Negotiated Agreement. Your
     BATNA is the situation you want to improve by negotiating with a given party or set of parties. But
     BATNA is not your bottom line. It is a measure of the relative value of negotiating a particular issue with a
     particular party -- or whether you can fall back on better alternatives.

8.   Be Prepared. In order to negotiate effectively, efficiently, and wisely, it is crucial to prepare. Your job is
     not to outline a perfect, total solution; that would be a positional approach. Preparation means studying
     the interests and BATNAs of every possible party. It means understanding the short and the long term
     consequences you use and the substantive results you pursue. Doing your homework can save a lot of
     time.
           Good Negotiation Habits
• A key to negotiation is knowing the other party’s primary & 2ndary
  needs.
• The more info you gather prior to formal negotiations, the better-
  prepared you are to negotiate.
• Create an interest map listing the opposing party’s interests in the
  outcome & the reasons behind them. It focuses you on the info
  you’ll need, the questions you’ll ask & areas of common ground.
• Do a reality check – test the accuracy of your information.
• Ask Questions during the negotiation.
• Hear the other person – listen, focus, ask clarification questions, pay
  attention, summarize.
• Don’t rush to judgment – collaborate & cooperate.
• Be flexible
• The key communication skill in negotiation is to listen.
   You have two ears & one mouth – use them in that ratio.
  Two Categories of Negotiation
Positional -- someone who is inflexible, says 'my way or the highway',
  and who cannot change his/her demands without losing face.

   Positional negotiators place their demands on the bargaining table
   and expect their negotiation partners (the folks on the other side of
   the table) to respond by saying 'yes' or 'no'.


Interest-based -- negotiation focused on the underlying reasons for
   pursuing one's negotiation objectives.
   Interest-based negotiators try to learn what factors offered by their
   negotiation partners will help them achieve their own interests -- and
   what those other parties believe the interest-based negotiator can
   offer to respond to what they themselves want.
     Interest Based Negotiation
• Determine what both parties’ interests are & any other
  special interests they might represent.

• It’s not what they want, but why they want it that’s more
  important.

• Once the reason behind the other party’s stance is
  identified, it becomes much easier to reach common
  interests.
There aren’t any specific models for negotiating specific kinds
  of issues. Each negotiation depends on many issues & may
        be amenable to a variety of different approaches.

 Negotiation is quite different from flying an airplane. A pilot
  must go through a precise pre-flight process before taking
        off. There is no room for varying that process.

A good negotiator understands that the process involves
    a continuous series of choices as to strategy and
                         tactics.

Being locked into one strategy or set of tactics to implement
 that strategy weakens a negotiator's capacity to reach wise
               solutions in an efficient manner.
     Evaluating a Job Offer - Pros and Cons
1.   Does the prospective job meet the criteria that I laid out when my job search first began?
2.   Will the prospective job improve my level of satisfaction, personally and professionally?
3.   Will this job take me down the path that leads to future career and/or personal goals?

•    Salary
     Even if money isn't what gives you the most job satisfaction, no one can argue its importance. You need a certain
     amount of money to pay the bills, for example. Most of us also want to make sure we are being paid what we're
     worth and what is the going rate for jobs similar to ours. It's important to find out what others are making for related
     work in the same industry, and in the same geographic region. You can start gathering this information by looking
     at salary surveys and other occupational information. And don't forget, if other aspects of the job appeal to you,
     you can try to negotiate the offer.
•    Office Environment
     Every office has a different feel to it. Some feel kind of "dark pin-striped suit" while others feel a little more relaxed.
     Years ago I interviewed for an internship in a public relations firm. From the second I set foot in the office I knew I
     wanted to work there. There was a big bubble gum machine in the corner and colorful pictures hung on the walls.
     A few years later I interviewed for a job at a large investment bank. The office was the complete opposite of the
     one I just described. I was interviewed in a formally decorated conference room and given a tour of the department
     I'd be working in. It was brightly lit, yet furnished in dull colors. I was offered and accepted both positions and loved
     both jobs. As you can see, you can be happy in two totally different environments. You just need to know which
     environment you'd be unhappy in.
•    Corporate Culture
     Defined by Merriam-Webster as "the set of shared attitudes, values, goals, and practices that characterizes a
     company or corporation," corporate culture should be an important factor in your decision whether to accept a job
     offer. If you value your time away from the office, a company with a corporate culture that encourages late hours
     may not be for you. Is the potential employer's philosophy "win at all costs?" Is your philosophy "always play
     clean?" This company isn't for you. Are you an ardent proponent for animal rights? Through your research you
     learn that one of the company's subsidiaries does animal testing. Although this won't affect the day-to-day
     activities of your job, it may not be a situation in which you'll feel comfortable.
The Best Possible Pay/Benefits Package
• Know your financial needs & what is important to you.
• Look at the company & the general marketplace – do
  your research to know what they pay & what other firms
  pay.
• Find out all you can about the company’s policies about
  pay, salary reviews, seniority, & other issues that impact
  pay.
• Take a piece of paper & list what you want & for each
  item, list the reasons WHY each of those objectives is
  important to you.
• Aim as high as you feel necessary to gain the best deal
  for yourself. It is easier to play down than to gain.
Evaluating a Job Offer - Economics

Compensation will probably be a key factor in your decision. Even if
compensation doesn't rate number one on your list of priorities, you
should at least take it into consideration.

To truly put the economics of your job offer into perspective, all
things must be taken into account. Salary, benefits, and bonuses
should be considered, and if you are moving to a new area, you will
want to figure in relocation expenses and the area's cost of living.

Unless you are motivated only by money, a few extra bucks will
never turn a bad job into a good job.

The best approach is to decide if the job interests you and suits your
needs. Once that has been established, decide your bottom line.
    Evaluating a Job Offer - The Bottom Line
•    The bottom line is the lowest compensation amount that you would be
     willing to accept. For example, if you really want $30,000, but would think
     about $28,000 or settle for $26,000, then you haven't actually established a
     bottom line.
•    Your bottom line needs to be firm and encompass the figure that you would
     be willing to walk away from. For example, if you would not be willing to
     work for less than $25,000, then your bottom line should be set at $25,001.
     Setting a bottom line clarifies your financial goals and makes negotiation
     easier.
     Never reveal your bottom line to a potential employer- wait for them to make
     an offer. If they offer you more than your bottom line, feel good about it. If
     they offer you less, you have the option of turning it down or better yet, you
     can reveal to them what they would need to pay to gain your acceptance.
•    Unless you are extremely offended by their offer, negotiation is always
     worth a try. Many employers expect it and that's why job applicants often
     get low-balled from the start.
• What's the most important thing to consider? Is it salary, health
  benefits, or vacation time? Or could it be the corporate culture or the
  length or your commute? What about your boss and co-workers --
  will working with them be pleasant?
• As you can see there are a number of factors to take into account
  and only some are negotiable. You can try to get a higher salary or
  more vacation time. However, health benefits are often standard
  packages. The corporate culture isn't going to change for you, and
  your boss and co-workers aren't going anywhere.
• Each of us, of course, is different. And what carries a lot of weight
  for some of us is insignificant to the rest of us.
• Assess your own situation, your interests both short- and long-term.
  You should also think about the situation faced by your employer,
  both the organization and the individual(s) involved in your salary
  decisions.
• Research comparative salaries paid to others both within the
  organization and outside.
   Evaluating a Job Offer - The Extras
In some cases, money can present a problem for employers, especially when your salary requirements exceed their
budget or create inequity within their company.
Little known fact: Internal equity issues are the cause of most deals that fail due to financial reasons.

To remedy these problems, look for ways to increase your overall compensation without increasing your salary. Here
are just a few examples of what you can ask for:
•     A sign-on bonus
•     Performance bonuses (paid in 30, 60, or 90 day intervals after pre-determined goals have been achieved.)
•     A relocation bonus /Relocation expenses
•     Stock options
•     Vacation packages , additional vacation
•     Increased vacation time
•     Working conditions or location
•     Working at home or flexible hours
•     Timing on salary increases
•     A car lease or purchase
•     Title
•     Parking Space
•     An agreement to switch shifts with a coworker
•     A sabbatical when the terms aren't clearly spelled out in the employee handbook
•     Health insurance: dental, medical, optical
•     Long-Term Care Insurance/Disability Insurance
•     Retirement Funds
•     Flexible Hours
•     Tuition reimbursement &/or time away from work for classes
•     You can also ask about how their firm handles salary reviews, sign-up bonuses, year-end bonuses, retirement
      plans, & other elements of the total compensation package.
                        Know Your Market Value
• Do some serious homework to know as much as you can about the market value for your
  position for people with your experience & qualifications, both in that organization & at others.
  Check with others, are they telling everyone the same thing?
• Know the facts about all of the elements of your compensation package: salary, benefits, &
  relocation expenses.
• Figure out how much you are willing to settle for as a guaranteed minimum & how much you
  are willing to gamble you can add to the minimum through bonuses, commissions, or overtime.
  Weigh short term vs. longer term financial issues.
• When asked “how much pay do you want?” answer with a range that gives the interviewer room
  to bargain without offering them space to go below your minimum.
• The old saying is that “the first person who mentions a number loses in the Game of Chicken.”
  If they say “name your price” – ask for what you really want. Remember, they expect to
  negotiate down from your proposal.
• Bracket the range you are willing to settle within – for example: if you say “high 30’s or low 40’s”
  they will work within a range of approximately $37,500-42,500. This is known as the ZOPA –
  Zone of Possible Agreement.
• You set up the bargaining range, give them the opportunity to do the bargaining.
• Taking the first offer is often a mistake, as is taking your minimum.
• A pay offer that does not meet your fair expectations should be given a clear response: “Based
  on my research I had anticipated receiving an offer in the low 40’s.”
• You can also say something like “I have been thinking about the package we have been
  discussing & there are several open issues I would like to re-examine with you.”
 Determining Market Value for Experienced Folks
• For more experienced candidates – when asked about their current
  income, they may ask what their current income tells the employer
  about their value to the employer’s company. They can also ask
  what they hope the candidate will provide to the company & what
  the value of that contribution is. They may also reply that they are
  trying to learn about the job & how the company pays its staff to see
  whether the salary reflects the responsibilities the job entails.
• Find out about the transferability of your prior experience – is it
  something that will induce them to hire you?
• If the salary doesn’t meet your expectations – give a clear response
  - In order to justify changing jobs I need a variety of incentives
  including better pay. I had anticipated getting paid something in the
  low forties (e.g.$40-45k).
• It’s reasonable to let them know they are your #1 choice, but that
  given your salary history & financial responsibilities, you cannot
  accept their current offer.
          Accepting the Offer
Take things step by step. Focus on what is most important to you – both
short & long-term.

If everything about the employment offer meets your expectations, accept it
as soon as possible. Don't keep you new employer on pins and needles.
Not only does it show a lack of enthusiasm, it also shows a lack of
commitment and professionalism.
Either way, once an offer is on the table, you shouldn't take more than a day
or two to decide. If you have legitimate concerns or questions that need to
be answered, don't hesitate to bring them up before making your decision.
Thinking about the offer doesn't do any good if you don't have all of the
facts.
And always keep in mind, if you decide to reject the offer, it may be
impossible to get a second chance at a later date. The position may be
offered to someone else or depending upon how the rejection is handled,
the employer may feel insulted. Whatever you do, make sure your decision
is final.
    Accepting or Declining the Offer

• Whether you choose to accept or reject a job offer, you must inform
  the employer who made that offer.

• This should be done formally, in writing, and if you wish by
  telephone as well.

• If your answer is "yes" it's obvious why you'll want to make a good
  impression with your future employer.

• But, why is it important to be polite to someone you don't plan to
  work for? You don't know where your future will take you. You may
  at some point wind up with that employer as a superior, a colleague,
  a client, or even your next door neighbor. You certainly don't want to
  leave a bad impression.

				
DOCUMENT INFO
Description: Short Term Car Lease Car Company Insurance document sample