Deadlock Breaking NegotiationsDeadlock Breaking Negotiations

Four Techniques to move Negotiations beyond

Deadlock

By F. Michael Babineaux, CPSM, C.P.M.President/CEO

Babineaux Educational Services and Training, Inc.www.BESTraining.com

901.853.0539

for

Who Am I?

• F. Michael “Mike” Babineaux, CPSM, C.P.M.• Experience

– 40 years Supply Chain Management Experience

– 30 year FedEx Veteran

• SCM Educator and TrainerBabineaux Educational Services and Training, Inc.

www.BESTraining.com

901.853.0539

My Stories of No

• Breakfast with spouse and a new car– Don’t be ridiculous – can’t afford

• Carefully prepared proposal with the boss– Been there, done that, didn’t work – next item

• Returning toaster and store policy– No sales slip – no return

• Contract closing– 5% increase or no sale

Agenda & Direction• Foundation

– Four Facts of Negotiation– Definitions– Negotiation Flow– Negotiation Objectives

• Deadlock Causes

&

• Breakthrough Techniques

Four Facts of Negotiating Life

1. Most things you want are not in your immediate control

• A day off with pay would not normally be within your total control.

• For those things, you must negotiate

Four Facts of Negotiating Life

2. Everybody has different wants, needs and desires

• You may want information, your colleague may want recognition.

• Each for their own reasons, and different.

Four Facts of Negotiating Life

3. A particular approach may not work all the time

• Just like fishing, sometimes you can catch 'em on worms

• Other times, they just don’t bite

Four Facts of Negotiating Life

4. To be forewarned is to be forearmed

• It's a good strategy to plan, prepare and practice.

• You'll be much more effective, if you've thought about it.

Key PointKey Point

“You don’t get what you deserve, you get what you negotiate”

Chester Karrass

Agenda & Direction

• Foundation– Definitions

• Deadlock Causes

&

• Breakthrough Techniques

Defining the Subject

• Negotiating - Give as little as you can while getting as much as you can

Defining the Subject

• Bargaining - Give as little as you can while getting as much as you can– Bargaining has its place

Defining the Subject

A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or

objectives

Negotiation

Negotiation Strategy Matrix

Business Impact

Marketplace Complexity

Low

High

LowHigh

StrategicLeverage

Routine Bottleneck

Negotiation Strategy MatrixStrategic Quadrant Strategy

• Focus on Building Relationships

– Collaborative or interdependent relationships (e.g. Strategic Alliances)

Business Impact

Marketplace Complexity

Low

High

Low High

StrategicLeverage

Routine Bottleneck

Defining the Subject

A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or

objectives

Negotiation

Defining the Subject

A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or

objectives

Negotiation

Key Negotiation Goals and Results

• Goal – Have a collaborative relationship

• Results - For the future

Defining the Subject

A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or

objectives

Negotiation

Key Negotiation Goals and Results

• Goal - Mutually Satisfying Agreement

• Results - So that it happens

Key PointKey Point

Don’t confuse Bargaining

with Negotiations

Agenda & Direction

• Foundation– Negotiation flow

• Deadlock Causes

&

• Breakthrough Techniques

Negotiation Flow Sequence

Entry

Exploration

Give and Take

Closing

Negotiation Flow

Agenda & Direction

• Foundation– Negotiation Objectives

• Deadlock Causes

&

• Breakthrough Techniques

Negotiation Objectives

Negotiation Flow Negotiation Objective

Entry

Exploration

Create Favorable ClimateGetting to know them

Give and Take

Closing

Creating a Favorable Environment

Describe Positions

–The more discussion, the more understanding

Creating a Favorable Environment

Describe Positions

– The more discussion, the more understanding

– Ask questions, don’t make statements

– Look for the reason for their positions

– Look for common ground

“You can lead a horse to water but,

you can’t make it drink”

Unless you run it around the pond long enough to make it thirsty.

Creating a Favorable Environment

Key PointKey Point

Set the stage for a favorable outcome

Agenda & Direction

• Foundation

• Deadlock Causes

&

• Breakthrough Techniques

Deadlock Causes During Negotiation Flow

PersonalityDifferences

Negotiation Flow Deadlock CauseNegotiation Objective

Entry Create a Favorable Climate

Getting to know them

Defining the Subject

A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or

objectives.

Negotiation

Observable Behavior of Negotiators

Quick Decisions No Detail Gut Feelings

Relaxed Relationships Habits/Routines

Quick Decisions No Time Wasting Control

Slow Decisions Detailed Calm

Facts

Feelings

Ask Assertive Tell Assertive

Opposites DO NOT Attract

Personality Differences

Do you see

The Young Woman

or

The Old Woman

Perception vs RealityPerception vs RealityGetting To Yes by Fisher and Ury

“Understanding the other side’s thinking is not simply a useful activity that will help you solve your problem.”

“Their thinking is the problem.”

“As useful as looking for objective reality can be, it is the reality as each side sees it that constitutes the problem in a negotiation and opens the way to a solution.”

“Ultimately, however, conflict lies not in objective reality, but in people’s heads.”

Dealing With PerceptionIssues

• Before Negotiation– How to Prevent

Perception Challenges• During Negotiation

– How to Overcome Perception Challenges

• Before Negotiation– Look at it from their point of view

• How do they see the issue?

– Don’t Blame them for your problems

• That makes them defensive

– Don’t assume the worst• You’ll make it worst than it is

Dealing With PerceptionIssues

• During Negotiation– Get them involved

• Part of solution – not problem

– Help them save face• Need to reconcile position

with principal

– Act inconsistently with their perception

• Sending messages different than expected

Dealing With PerceptionIssues

Beware of Perceptions

People will Act on their Perceptions

Key PointKey Point

Negotiators are People FirstUnderstand their Personalities

Deadlock Causes and Breakers

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

EntryTake it to

Another Place

Take it To Another Place

How to...

– Pause and say nothing

– Take a Time out

While there...

– Examine how you feel

– Keep eye on Prize

Take it To Another Place

How to...

– Pause and say nothing

– Take a Time out

While there...

– Examine how you feel

– Keep eye on Prize

Take it To Another Place - Key Point

Don’t Let Them Get To You

Negotiation Objectives

Negotiation Flow Deadlock CauseNegotiation Objective

Entry

Uncovering Interest Asking QuestionsExploration

Create a Favorable ClimateGetting to know them

PersonalityDifferences

Positions Versus Interest

• Position = A stance that excludes the possibility of any other– What people say they want

• Interest = What people really want– Why they take a position

Positions Versus InterestPositions Versus Interest

The Orange ProblemThe basic problem in a negotiation lies not in conflicting positions, but in the conflict of interests.

Positions Versus InterestPositions Versus Interest

Why is it important to know the difference?

That’s where solutions are to be found.

Three Kinds of InterestsThree Kinds of Interests• I have a car to sell• You want to buy a car

I want $1000 for the car

You want to pay $900 for the car

• You’re looking for a red car

• I’ve got a green car

Key PointKey Point

Satisfying interests is Key to Solutions

Deadlock Causes During Negotiation Flow

Negotiation Flow Deadlock CauseNegotiation Objective

Entry

Uncovering Interest Asking QuestionsExploration

Create a Favorable Climate Getting to know them

You don’tunderstand

PersonalityDifferences

Deadlock Causes and Breakers

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

EntryTake it to

Another Place

ExplorationYou don’t

understandWalk in their

Shoes

Walk in Their Shoes - How to

Listen Actively

Paraphrase

Ask for Corrections

Walk in Their Shoes - How to

Acknowledge a point

Acknowledge their Feelings

Offer Apologies

Walk in Their Shoes - How to

Agree whenever you can

Accumulate Yeses

Tune in to their Wavelength

Walk in Their Shoes - How to

Acknowledge their person

Their Authority

Their Competence

Covey Quote

The Fifth Habit – Seek first to understand . . .

“The psychological equivalent of air is to feel understood.”

Stephen R. Covey

Walk in Their Shoes – Key Point

SeekFIRST

ToUnderstand

Negotiation Objectives

Negotiation Flow Deadlock CauseNegotiation Objective

Entry

Uncovering Interest Asking questions

Exploration

Create Favorable Climate Getting to know them

Give and Take Developing Alternatives

Stretch your thinking

You don’tunderstand

PersonalityDifferences

Common Negotiator MindsetCommon Negotiator Mindset

Assume only a fixed Pie

Develop Mutual Gain Develop Mutual Gain AlternativesAlternatives

• Tips for Successful Alternative Invention– Invent before judging

• Like Brainstorming

– Invent a wide range of options• Think out of the box

Stretching Your ThinkingStretching Your ThinkingThe Nine Dot Exercise

Connect all dots with only 4 straight lines and without lifting

your pen

Developing AlternativesDeveloping Alternatives10 Killer Phases10 Killer Phases

Killer Phrases– A good idea, but . . .– It’s against policy– Be practical!– That’s all right in theory,

but . . . – The boss won’t go for it

And these– Are you serious?!– Don’t be ridiculous– That’s dumb– We tried that before– That wasn’t what I

had in mind

Key PointKey PointDon’t assume

a fixed Pie

Deadlock Causes During Negotiation Flow

Negotiation Flow Deadlock CauseNegotiation Objective

Entry

Uncovering Interest Asking QuestionsExploration

Create a Favorable Climate Getting to know them

You don’tunderstand

PersonalityDifferences

Exploration Developing Alternatives

Stretch your thinkingResistance to

your ideas

Resistance? What causes it?

Not their idea - Not Invented Here

Interest unmet - Just overlooked

Fear losing face - Looking bad

Too much too fast - Easier to say no

Deadlock Causes and Breakers

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

Entry Take it toAnother Place

ExplorationYou don’t

understandWalk in their

Shoes

Give and TakeResistance to

your ideasBridge

the Gap

Bridge the Gap – What is it ?

A Way to Get to Yes

Not their idea - Not invented here

Interest unmet - Just overlooked

Fear losing face - Looking bad

Too much too fast - Easier to say no

Involve them

Look beyond position

Give them an out

A little at a time

Make it easy

for them to say

YES

Bridge the Gap – Key Point

Negotiation Objectives

Negotiation Flow Deadlock CauseNegotiation Objective

Entry

Uncovering Interest Asking questions

Exploration

Create Favorable ClimateGetting to know them

Give and Take Developing Alternatives

Stretch your thinking

You don’tunderstand

PersonalityDifferences

Closing Agreeing to best

Use Objective Criteria

Resistance toyour ideas

Using an Objective CriteriaUsing an Objective Criteria

• Examples– Market value– Tradition/Precedent– Fairness/Equal Treatment– Others Judgment

Using an Objective CriteriaUsing an Objective Criteria

• How to do it - – Be open to what criteria to use– Jointly agree– Ask questions

Using an Objective CriteriaUsing an Objective Criteria

• Sample questions to ask– What’s fair?– How do others do it?

Using an Objective CriteriaUsing an Objective Criteria

• Basic Points– Agree first on the principle – Various ways to launch an

independent criteria discussion• Bring up the general idea of an objective

criteria• Suggest one or more

Key PointKey Point

Defer to a measuring stick

- independent of your will

Deadlock Causes and Breakers

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

Entry Take it toAnother Place

ExplorationYou don’t

understandWalk in their

Shoes

Give and TakeResistance to

your ideasBridge the Gap

ClosingThey don’tunderstand

Guidelines for Making Offers• Presenting Offers

– Propose - Don’t Foreclose• What if we . . .

– Present as a Gain• With this you can . . .

– Be Specific• That’s 16 oz per . . .

Guidelines for Making Offers• First Offers

– When – Clear Specs– How – Don’t start with bottom line

Guidelines for Making Offers• Evaluating an Offer

– Does it Satisfy?– Are you Happy?

Guidelines for Making Offers• Making Counteroffers

– What’s Acceptable– Combined Interest

• Benefits should be talked about before actual price

How to Talk Price

• If offer good, say so

• If offer not great, say you are open to counter offer

How to Talk Price

• Would you accept the offer if someone made it to you

How to Talk Price

Deadlock Causes and Breakers

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

Entry Take it toAnother Place

ExplorationYou don’t

understandWalk in their

Shoes

Give and TakeResistance to

your ideasBridge the Gap

ClosingThey don’tunderstand

Use Powerto Convince

Use Power To Convince – What is it

• Types of Negotiating power– Things the Others Want

• Product endorsements• Tie in Services• Money

Use Power To Convince – What is it

• Types of Negotiating power– Things the Others Want

– Formal• Title• Status• Situational

Use Power To Convince – What is it

• Types of Negotiating power– Things the Others Want

– Formal

– Personal• Charisma• Conviction• Consistency

Use Power To Convince – How to do it

Ask reality-testing questions- Are you sure you want to end like this?

Use Power To Convince – How to do it

Warn, but don’t threaten- If we can’t come to agreement, I’ll . . .

Use Power To Convince – How to do it

Display BATNA - without using- We have other things we’re considering, so . . .

Display a BATNA

What is a B.A.T.N.A.?

Best

Alternative

To

Negotiated or

Agreement

No

Display a BATNA

What is a B.A.T.N.A.?

A Comparison

and

An Alternative

Develop a BATNA

1.Make a list of options

2.Improve on most promising

3.Select best

4.Consider their BATNA

Use Power to Convince - Key Point

Be sure they know the

Consequences

Agenda & Direction Review

• Foundation– Four Facts– Definitions– Negotiation Flow– Negotiation Objectives

• Deadlock Causes

&

• Deadlock Breakers

Four Facts of Negotiating Life

Key PointKey Point

“In Business as in Life - You don’t get what you Deserve,

You get what you Negotiate”

Chester L. Karrass

Definitions?

Key PointKey Point

Don’t confuse Bargaining with Negotiations

Negotiation Flow Sequence

Entry

Exploration

Give and Take

Closing

Negotiation Flow

Negotiation Objectives

Negotiation Flow Negotiation Objective

Entry

Uncovering Interest Asking questions

Exploration

Create Favorable ClimateGetting to know them

Give and Take Developing Alternatives

Stretch your thinking

Closing Agree to best option

Use Objective Criteria

Break?

Deadlock Causes and BreakersSummary

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

Entry Take it toAnother Place

ExplorationYou don’t

understandWalk in their

Shoes

Give and TakeResistance to

your ideasBridge

the Gap

ClosingThey don’tunderstand

Use Powerto Convince

Negotiation Objectives

CreatingClimate

UncoveringInterest

DevelopingAlternatives

Agreeing toBest

Deadlock Breaking NegotiationsDeadlock Breaking Negotiations

Four Techniques to move Negotiations beyond

Deadlock

By F. Michael Babineaux, CPSM, C.P.M.President/CEO

Babineaux Educational Services and Training, Inc.www.BESTraining.com

901.853.0539

for