Proposal to an Investor

							                Influence Negotiation
         Building Stronger Relationships & Trustsm

                              presented to

                           NIRI Richmond Chapter


                          Glenn Faulkner

703 204 1669
gfaulkner@WatershedAssociates.com
                                                     Slide 1
 Red
Yellow
Green
 Blue
 Red
 Blue
Yellow
Green
 Blue
 Red

         Slide 2
 Red
Yellow
Green
 Blue
 Red
 Blue
Yellow
Green
 Blue
 Red

         Slide 3
Slide 4
Slide 5
                 Think big, ask for what you want

                                                             B
                                                       B/L   A
                              Goal                           T
MDO                                                   LAA
                                                             N
                                                             A

               Defining Your Negotiating Opportunity
 MDO – Most Desired Outcome
 LAA – Least Acceptable Agreement
 B/L – Bottom Line
 BATNA - Best Alternative to a Negotiated Agreement

                                                                 Slide 6
      Think big, ask for what you want


      And Determine What They Need

MDO                                 LAA
              Yours

            Mutual Motivation
                        Theirs

      LAA                                 MDO

         Are the goals aligned?
                                                Slide 7
                 Never say No…or Yes



            NO!
 Ends discussions
 Is face losing


           YES!               The Negotiated Yes…"Yes, if"
 Invalidates last offer    Allows you to say yes
 Violates trust            Validates your opening offer
 Cuts off creativity       More engaging
 Removes give-and-take     More likely to generate creativity



                                                              Slide 8
             Make smaller concessions



   Give value, but don’t rush
   Progressively smaller concessions
   Allow counterpart a sense of satisfaction




 And don’t forget to summarize early and often


                                                Slide 9
              Make smaller concessions
                 Concession Patterns

Pattern MDO       1        2       3     Goal

  A    300       300      300     300    200
  B    300       275      250     225    200
  C    300       295      285     265    200
  D    300       200      200     200    200
  E    300       250      220     205    200

  LAA = 150
                                                Slide 10
                   Always be patient
              The Power (and risk) of time

 A quick solution may be a bad solution
 Patience softens expectations and encourages flexibility
 Patience allows them time to accept tough choices
 Beware, their patience may compel you to make unnecessary
  concessions
 Deadlines force concessions
    – Establish deadlines for them
    – Probe any deadline they set



                                                      Slide 11
Slide 12
                  Always be patient

        Don’t negotiate too early in the process

MDO             LAA
                         No
      Yours           perceived
                       value in           Theirs
                      agreeing    LAA              MDO




                                                    Slide 13
                Always think creatively

         Creative concessions are “painless”


   A low cost to You but a high value to them
   …or a low cost to them, high value to you
   Interests and needs, not positions or demands
   Put yourself in their shoes
   Avoid zero-sum exchange vs. value creation
   Will be different from situation to situation


                                                    Slide 14
                  Always think creatively

            When did we stop being creative?

   Percentage of highly creative people at the
    age of 5                                      90%

   Percentage of highly creative people at the
    age of 10                                     10%

   Percentage of highly creative people at the
    age of 22, 32, and 42                         2%



                                                        Slide 15
             Prepare, prepare, prepare
                Sources of Information
    What does the counter party want?
    Peer organizations
   Past negotiations
   Legitimacy-
    Industry Standards
    Third Party Measurements
    Newspapers and magazines




                                         Slide 16
The most powerful thing you can do is make offers and
         proposals.


   You cannot negotiate an argument
   You can negotiate proposals
   Proposals keep the other side engaged
   An offer or proposal compels a response:
       Accept
       Counteroffer
       Probe



                                                   Slide 17
                   Never say No…or Yes


        When THEY say “No”: Handling Objections
You find out by probing:
1. “If we can find a solution on this one item, can we get a
   final agreement today?”
2. “What if we…” (the hypothetical)
3. “In a perfect world, what would this look like to you?”
4. Maybe you need only to acknowledge the objection


                                                             Slide 18
                 Never say No…or Yes

        When THEY say “No”: Handling Objections

How well did you prepare?
  1.   Need more information on the other side?
  2.   Need more information on Your solution, position,
       product, organization, market, etc.?
  3.   Need more information on stakeholders?
  4.   Are you talking to the right person/people?
  5.   Maybe this is not a good agreement?
  6.   Should you execute your BATNA?

                                                       Slide 19
                   So Remember

   Think big and ask for what you want
   Be patient do not fill the silence
   Be creative, look for low cost high value
   Preparation and legitimacy advance your position
   Use linkage through the negotiators yes



                 Good Negotiating !
                 Glenn Faulkner
                                                       Slide 20