NEGOTIATION TECHNIQUES

References:1. “Negotiation Strategy and Techniques – Bill Scott

2. “Getting to Yes” – Roger Fisher & William Ury

Negotiation …

“ A form of interaction between two parties with

the objective to reach to an agreement”

Types ofNEGOTIATION

HARD

SOFT-----------------------------------------------------------------------------------H---A--R--D---------------------------

POSITIONAL BARGAINING

I WIN BOTH WIN

I WIN!

The objective:

I get what I want, the rest does not matter

Long term relationship is not important

Examples of “I WIN” negotiation:

Bully your opponent (Gertak Sambal)

The Eagle and The Dove(Elang dan Merpati)

I am OK, you are not OK

Time Pressure!

Examples of “I WIN” negotiation:

Bully your opponent

“The Eagle and the Dove”

I am ok, you are not ok

Time pressurePretendingAsking why, what if…Reciprocation

WIN – WIN NEGOTIATION

It is also called: NEGOTIATION ON THE MERITS

The objective is to reach to an agreement which makes

both parties happy and is done in the most efficient

way

Focus on the subject matter, not positions

Both parties are “problem solvers”

WHAT SHOULD WE ACHIEVE?

• A wise decision resulting to a good agreement between both parties

• It is done in an efficient manner

• It does not affect the relationship

THE METHOD

Separate people from the issue

Focus on each other’s interest not each other’s position

Search and explore any possibilities which can help lead

into a solution that makes both party happy

Hold on to objective criteria

WHAT DO WE NEED TO PREPARE?

1. Who are we dealing with?

SELFACTUALIZATION

RECOGNITION

SOCIAL NEEDS

SECURITY NEEDS

PHYSICAL NEEDS

Hierarchy of Human Needs by Maslow

The preparation

2. What is the subject matter?

3. What is your target?

4. When and where?

5. What is your strategy?

6. Equip yourself with sufficient references/information

7. Be prepared physically and mentally

CREATE A CONDUSIVE ATMOSPHERE

Find a cozy place and a convenient time

Create a friendly atmosphere, full of team-work spirit

Establish mutual trust

I am Ok and you are Ok

Fit your physical appearance to the situation

PHASES IN NEGOTIATION

Exploration

State your offer

Bargaining

Finishing

Confirmation

Phases in Negotiation: EXPLORATION

1. Collect all data/information you need

2. Find out and agree on each party’s objectives

3. Put yourself in your opponent’s shoes

4. Put your opponent into your shoes

5. Create understanding

6. Avoid conflicts

GOOD COMMUNICATION

What is said may not be heard

What is heard may not be understood

What is understood may not be accepted

The speaker may not know what have been heard,

understood or accepted by the audience

Paraphrase!

Phases in Negotiation: YOUR OFFER

Do you state your offer as high as possible, or straight to

the point?

Phases in Negotiation: YOUR OFFER

Support your offer/call with solid arguments

Avoid giving impression that you just want to win alone

Explain why our offer/call is fair

Phases in Negotiation: BARGAINING

Do not easily discount your proposal without clear and

sensible explanation

Say “NO” with a smile

Think and explain why your offer is good/beneficial for

your opponent

Phases in Negotiation: BARGAINING

Listen to the counter offer of your opponent

Avoid confrontation, look for meeting points

If it is difficult to find meeting points, try and look for a

“creative solution” (think outside the box)

EXERCISE

Connect these 9 dots with 4 straight lines. Do not lift your

pen from the paper/screen.

o o o

o o o

o o o

PHASES IN NEGOTIATION

Exploration

State your offer

Bargaining

Finishing

Confirmation

THINGS TO CONSIDER WHEN FORMULATING A NEGOTIATION STRATEGY

Importance of the relationship

Strength, position and character of our opponent

Strength, position and character of ourselves

How important is the negotiation

Time frame

What options do we have?

Who will do the negotiation?

OTHER TIPS FROM THE “SYNECTICS”

A section of the Synectics problem solving technique:

Ask your opponent to look for and point out what are the positive

things that he can see from your proposal

Ask him to evaluate areas that need to be improved

Find the best solution together, how to improve or make

the proposal better.

The End