2009 05 05 Win Win Negotiating Skills

8/8/2019 2009 05 05 Win Win Negotiating Skills

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1 2009 BENATECH, INC.

Iselin, NJ ASHRAEWin-Win Negotiating Skills.2009.1.ppt

LEADERSHIP

EXCELLENCE

WIN-WIN NEGOTIATING SKILLS

Iselin, NJ ASHRAE May 5, 2009


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LEADERSHIP

EXCELLENCE Presented by:

Barry Benator, P.E., CEM

BENATECH, INC.

Atlanta, GA

(770) 998-3302 Phone

www.Benatech.com

[email protected]


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LEADERSHIP

EXCELLENCE About Your Presenter

s Barry Benator, P.E., CEM, is founder and president of BENATECH INC., a leadership andmanagement consulting firm serving clients throughout the U.S. and internationally. He hasmore than 30 years of consulting and training experience for corporate and governmentalclients, and has taught leadership and management skills to more than 5,000 executives,managers, engineers and others in leadership positions.

s His clients have included: ASHRAE, Heery International, Chevron Energy Solutions, FloridaPower & Light Co., Progress Energy, American Public Power Association, Cox Enterprises,

Association of Energy Engineers and the Department of Defense.

s Barry has an M.B.A. in finance from Loyola College and bachelor and M.S. degrees inelectrical engineering from Georgia Tech. He is an ASHRAE Distinguished Lecturer, a Myers-Briggs Type Indicator Master Practitioner, a Certified Situational Leadership Programtrainer, a professional engineer and a certified energy manager.

s Prior to his civilian career, Barry was a nuclear powered submarine officer.


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LEADERSHIP

EXCELLENCE Copyright/Trademark Information

s 2009 BENATECH, INC. This PowerPoint presentation,electronic and hard copies thereof, and associatedhandouts, case studies and role plays not copyrighted byothers are copyrighted by BENATECH, INC.

s

No part of this program may be reproduced in any form orformat now known or which may be invented in the futurewithout permission of the respective publisher.

s Leadership Excellence and Project ManagementExcellence are registered trademarks of BENATECH, INC.


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LEADERSHIP

EXCELLENCE


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7 2009 BENATECH, INC.Iselin, NJ ASHRAEWin-Win Negotiating Skills.2009.1.ppt

LEADERSHIP

EXCELLENCE

Lets get into it!


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LEADERSHIP

EXCELLENCE

Negotiations

Mutual discussions for the purpose

of arriving at the terms of a

transaction or agreement


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LEADERSHIP

EXCELLENCENegotiation Skills

Learned or Natural Ability?

s Definition: Negotiation: Mutual discussions for the purposeof arriving at the terms of a transaction or agreement.

s Successful negotiating is a skill. It is not something you haveor dont have. (Gerard Nierenberg, The Art of Negotiating)

s Like playing a sport, flying an airplane, or driving a car,becoming an effective negotiator is a skill that can be learned.

s Some people have a natural talent for it. Others do not.

s If you do not have a natural inclination for negotiating,you can learn how to do it, and do it well!

s If you do have a natural talent for it, you can improve that skillwith training and practice.

s This presentation will give you some tools to help you becomean effective negotiator


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LEADERSHIP

EXCELLENCE Win - Win Negotiations

Negotiations in which both parties come away winnersand both parties are committed to upholding their ends ofthe agreement

(The Win-Win Negotiator)


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LEADERSHIP

EXCELLENCE Win - Win Negotiations

Negotiations in which both parties come away winnersand both parties are committed to upholding their ends ofthe agreement

(The Win-Win Negotiator)

s Negotiation

s Both parties

s Winners

s Committed

s Upholding their ends of the agreement


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LEADERSHIP

EXCELLENCE Possible Negotiating Strategies

You Command/My way or highway

You Give In/Need Any Deal

Collaborate/Win-Win

Compromise

HIGH

LOW

Yourapparen

tw

in

HIGHOther sides apparent win

Win-Lose/Short

Lose-Lose/Long

Okay/Short TermLose-Lose/Long

Win-Win/Short

Win-Win/Long

This is our goal!

Lose-Win/ShortLose-Lose/LongAvoid, dontnegotiate

Your needs satisfied

Counterparts needs satisfied


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LEADERSHIP

EXCELLENCE Possible Negotiating Strategies

You Command/My way or highway

You Give In/Need Any Deal

Collaborate/Win-Win

Compromise

HIGH

LOW

Yourapparen

tw

in

HIGHOther sides apparent win

Win-Lose/Short

Lose-Lose/Long

Okay/Short TermLose-Lose/Long

Win-Win/Short

Win-Win/Long

This is our goal!

Lose-Win/ShortLose-Lose/Long

Winners Circle!

Avoid, dontnegotiate

Your needs satisfied

Counterparts needs satisfied


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LEADERSHIP

EXCELLENCEPrinciples of

Win Win Negotiating

s

What it is not: A game where one side wins and the other side losess What it is: A relationship whereby We both win (1+1 = 4)

Why?

s Fundamental principle in negotiations need satisfaction

s Look for creative ways to satisfy your and your counterparts needs

s Establish a friendly climate of mutual interests and trusts Negotiation is the beginning of a process, not the end

Look for a long-term mutually beneficial relationship

s Dont be afraid to give up something to get something

s Be open to creative ways to satisfy critical needs look beyond currentsituation forwin - win

s Everyone is better off than before the negotiation


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BENATECH, INC.Iselin, NJ ASHRAEWin-Win Negotiating Skills...ppt

LEADERSHIP

EXCELLENCE

Negotiating involves communicatingwith people.

Lets look at how we cancommunicate with people better.


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LEADERSHIP

EXCELLENCEWhy Effective Communication is

Important in Negotiations

s Engineers are good at calculations and equations

s However, we deal with people all the time, especially innegotiating

s It is imperative that we work well with people, listen

effectively, and be able to communicate with them toaccomplish our goals

s This part of my presentation will give you tools to do that


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LEADERSHIP

EXCELLENCE Communication Model

Thought Sender Encodes Message

Words

Pictures

Transmits the Message

Receiver receives message:

- Hears it

- Reads it

- Feels itReceiver decodes

message

Interprets meaning

Receiver ACTS

on message

How many opportunities are there

for miscommunication ?


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LEADERSHIP

EXCELLENCE

Personality Types/Communication Styles


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LEADERSHIP

EXCELLENCEPersonality Types/

Communication Styles

s Research by Swiss psychologist Carl Jungsuggested there are recognizable differences inpersonality types among people.

s Isabel Briggs Myers and her mother Katharine Briggsextended and refined Jungs theory into what is nowknown as theMyers-Briggs Type Indicator (MBTI)

s The following slides summarizes four differentpersonality types that will help you work with andcommunicate with people more effectively.


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s Feeler

Considers people and friendships important. They are genuinely concerned about otherpeoples feelings and go out of their way not to offend.

Strength: People sense the Feelers concern and are put at ease by them.

Weakness: Can miss the big picture and mission by being overly concerned with othersfeelings. May not give you bad news out of a desire not to hurt.

Tips for working with Feelers:

Be prepared for small talk (schmoozing) before getting to the issues needing consideration.Allow time for small talk.

Listen and be responsive.

Dont be domineering or threatening.

Be supportive of the Feelers issues in seeking to accomplish your own.

Behavioral/CommunicationStyle Differences


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EXCELLENCE

s

Sensor Sensors are strong, decisive, results-oriented people. They tend to

keep their emotions to themselves.

Strength: They are energetic, dynamic implementers. Highlymission-focused. They get things done!

Weakness: Can appear overly pushy or demanding at times. May notpickup on human dynamics of a situation. May make a decisionbefore having all relevant facts

Tips for working with sensors:

Be brief, specific and to the point.

Be well-prepared.

Provide alternative solutions with pros and cons of each.

Dont waste their time.

Behavioral/CommunicationStyle Differences(cont.)


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s Thinker

Thinkers are logical and organized. They deal with facts, data, logic, details.Thinkers have tendency toward perfection. They tend to keep their feelingsand emotions inside, and do not usually reveal them to others.

Strength: The information they provide is usually very accurate.

Weakness: Can be overly cautious. May not pickup on human dynamics of

a situation.

Tips for working with Thinkers:

Prepare. Be as logical, practical, orderly and accurate as you can.

Provide tangible and practical evidence or at least be prepared to do so if asked.

List pros and cons of any suggestions you make.

Dont be disorganized.

Dont rush the decision-making process if at all possible.

Behavioral/CommunicationStyle Differences (cont.)


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s Intuitor

Intuitors are highly enthusiastic and creative people. They have strongconceptualization skills, and can think outside the box. They enjoy the world ofpossibilities, group activities (like parties) and feel less comfortable in restrictiveenvironments.

Strength: Think big picture. Future oriented. Long-range thinkers. Many ideas.Often see opportunities others miss.

Weakness: Can often appear to be abstract or vague, unresponsive todeadlines.

Tips for working with Intuitors:

Plan interactions that support their dream.

Allow time for exploring their ideas.

Help them focus by providing ways for implementing action. Try to stay on agenda or you will take many tangents.

Behavioral/CommunicationStyle Differences(cont.)


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LEADERSHIP

EXCELLENCE Preparation

s Congratulations you have been selected fornegotiations!

s Now its time to prepare for success

s First step review this presentation and your notes to

refresh yourself on the fundamentals of effectivenegotiations

s Strategize with your negotiation teammates to develop astrategy

s Develop a plan incorporating your negotiation knowledgeand the needs of your customer

s Practice, refine, practice, refine, practice


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LEADERSHIP

EXCELLENCEEstablish Win Win Climate

s Seek to establish a climate of mutual trust and shared goals

s Get to know your counterpart as a person (family, likes &dislikes, college, sports teams, etc.). But dont be intrusive.

s Some clients like to small talk (schmooze) before beginningnegotiations. If you are a sensor, have patience.

s Its okay to get coffee for your counterparts Dont miss an opportunity to personalize the relationship:

Congratulatory note on your counterparts new baby, promotion,favorite team victory, etc.

s

Consider sharing with your customer how you arrived at yourfee proposal. BENATECH sent our fee spreadsheet to our DODcustomers. First step in establishing trust relationship.

Seeking to establish a positive climate with counterpart


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LEADERSHIP

EXCELLENCEIts Not Always About Money

s

Everyone would like to earn more money, but other thingsmay be just as important in any particular negotiation

s You may be willing to accept a lower fee if you could stretchout the project a few months to complete some existingprojects and free resources

s Your customer might be willing to stretch out the schedule toobtain a reduced fee

s Same issues with your subcontractors.


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LEADERSHIP

EXCELLENCEBe Willing to Leave Something

On the table

s Contrary to Gordon Gekko (movie Wall Street), in win winnegotiating, greed is not good.

s Even when you have the stronger negotiating position (e.g.,negotiating with a subcontractor who you know needs thework), treat the other firm fairly. Dont wring everything youcan out of a deal.

s Its not worth the bad feelings and resentment, and it mayresult in your sub cutting corners on quality and or seeking torecoup the funds through elevated change-order fees.

s Similarly, by treating the subconsultant fairly, when you needsome help (and all firms do from time to time), the consultantmight fix a mistake your firm made at little or no extra cost.

s Your experiences on this point . . .


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LEADERSHIP

EXCELLENCE Relationship Management

s Always remember, the effects of negotiations outlast theactual negotiations.

s Think of your negotiations as the beginning of a relationshipwith your counterpart.

Perform, Perform, Perform!

If you are the contractor, you want to do such a good job that thecustomer will give you favorable consideration for the next job.Make your customers life easy.

If you are working with a subcontractor, treat the sub with

respect and as a valuable member of your team. Seek toestablish a relationship with the sub such that the last thinghe/she would want to do is let you down. Pay the sub on time,thank him/her for good work, provide positive recommendations,if earned


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LEADERSHIP

EXCELLENCE

PRACTICE


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LEADERSHIP

EXCELLENCEPractice

s

Now that you have reviewed the guidance in thispresentation, developed a negotiation strategy and preparedfor your upcoming negotiation you will want to practice:

In front of a mirror

Feedback and refine

With a colleague / spouse / significant other

Feedback and refine

With negotiation team members ABSOLUTE MUST evenif by conference call

Feedback and refine


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LEADERSHIP

EXCELLENCE Next Steps

s A course on win-win negotiating skills:

It should cover the principles of win win negotiating and include job-relevant role plays that allow you to practice applying win winnegotiating skills and to receive feedback from the facilitator and yourcolleagues

Its a plus if the course will allow you videotape/DVD your role playsso you can refine and critique them back at your office or home.

s A course on personality types such as theMyers-Briggs Type Indicator (MBTI).


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LEADERSHIP

EXCELLENCE Review

s Negotiation Skills Learned or natural ability?

s Definition of negotiation

s Negotiation Strategies

s

Personality Types / Communication Styless Win - Win Negotiating Principles

s Prepare and Practice

s Continuing education on negotiating skills


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LEADERSHIP

EXCELLENCE

Thank you for

your attention.

I appreciate your interest andparticipation.

Questions?

2009 05 05 Win Win Negotiating Skills

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Transcript of 2009 05 05 Win Win Negotiating Skills