Negotation - Main
Transcript of Negotation - Main
![Page 1: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/1.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 1/112
Win - Win Negotiating Principles
![Page 2: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/2.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 2/112
Preparation
• Congratulations — you have
been selected for
negotiations!
• Now it’s time to prepare for
success
• First step — review this
presentation and your notes
to refresh yourself on the
fundamentals of effective
negotiations
![Page 3: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/3.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 3/112
Preparation
• Strategize with your
negotiation teammates to
develop a strategy
• Develop a plan
incorporating your
negotiation knowledge
and the needs of your
customer
• Practice, refine, practice,
refine, practice
![Page 4: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/4.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 4/112
Establish Win – Win Climate
• Seek to establish a climate of mutual trust and shared
goals• Get to know your counterpart as a person (family,
likes & dislikes, college, sports teams, etc.). Butdon’t be intrusive.
• Some clients like to small talk (schmooze) before
beginning negotiations. If you are a sensor, havepatience.
• It’s okay to get coffee for your counterpart
• Don’t miss an opportunity to personalize therelationship:
– Congratulatory note on your counterpart’s newbaby, promotion, favorite team victory, etc.
• Consider sharing with your customer how you arrivedat your fee proposal. BENATECH sent our feespreadsheet to our DOD customers. First step inestablishing trust relationship.
è Seeking to establish a positive climate withcounterpart •
![Page 5: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/5.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 5/112
It’s Not Always About Money
• Everyone would like to earn more money, but otherthings may be just as important in any particularnegotiation
• You may be willing to accept a lower fee if you couldstretch out the project a few months to complete
some existing projects and free resources• Your customer might be willing to stretch out the
schedule to obtain a reduced fee
• Same issues with your subcontractors. •
![Page 6: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/6.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 6/112
Be Willing to Leave SomethingOn the table
• Contrary to Gordon Gekko (movie Wall Street ), in win– win negotiating, greed is not good.
• Even when you have the stronger negotiating position(e.g., negotiating with a subcontractor who youknow needs the work), treat the other firm fairly.
Don’t wring everything you can out of a deal.• It’s not worth the bad feelings and resentment, and it
may result in your sub cutting corners on qualityand or seeking to recoup the funds throughelevated change-order fees.
• Similarly, by treating the subconsultantfairly, whenyou need some help (and all firms do from time totime), the consultant might fix a mistake your firmmade at little or no extra cost.
• Your experiences on this point . . . •
![Page 7: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/7.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 7/112
Other Tips
• If possible, have flexible travel arrangements. Don’tput yourself in a position that you need to makecritical concessions because you have to catch thatlast flight today.
• Similarly, ensure you have fallback hotel reservations
if the negotiations should go on for another day.• Caucus as needed. If part of a negotiating team and
you are hit with a totally unanticipated question,comment or strategy, it’s okay to say somethinglike “That’s an interesting point. Would it be okay
to caucus with my team to see how we can makethis work for both us?” •
![Page 8: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/8.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 8/112
![Page 9: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/9.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 9/112
![Page 10: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/10.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 10/112
![Page 11: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/11.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 11/112
Obstacles to Negotiation
• Sometimes people fail to negotiatebecause they do not recognize thatthey are in a bargaining position.
• Or, they may recognize the need forbargaining but may bargain poorlybecause they do not fully
understand the process and lackgood negotiating skills.
![Page 12: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/12.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 12/112
Therefore;
• parties must be aware of theiralternatives to a negotiatedsettlement
:Weaker parties must feel assuredthat they will not be overpowered ina negotiation
:parties must trust that theirneeds and interests will be fairlyconsidered in the negotiation
process.
![Page 13: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/13.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 13/112
Obstacles to Negotiation
• Negotiation seems to bring conflicts .Any misunderstanding that arisesbetween them will reinforce their
prejudices and arouse theiremotions.
![Page 14: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/14.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 14/112
Therefore;
• To combat perceptual bias andhostility, negotiators shouldattempt to gain a better
understanding of the other party'sperspective and try to see thesituation as the other side sees it.
![Page 15: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/15.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 15/112
Obstacles to Negotiation
• if the "right" people are not involvedin negotiations, the process is notlikely to succeed.
•
![Page 16: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/16.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 16/112
![Page 17: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/17.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 17/112
![Page 18: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/18.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 18/112
![Page 19: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/19.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 19/112
Negotiation Questions
What aspects of the negotiation willindicate it is proceeding well or poorly?What will tell you that it is time tocaucus?What signs will you use to decide whena change in negotiators is necessary?What constitutes a "successful"
negotiation?
![Page 20: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/20.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 20/112
Negotiation -- Remember
“Two elements are essential: Reasonableness and
Flexibility.”
![Page 21: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/21.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 21/112
![Page 22: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/22.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 22/112
Basic Components (1 of 2)
1. Preparation:
Prepare for negotiation if you wantto succeed.
2. Objectivity:
Assess your strengths, weaknesses,
and goals. Successful negotiatorsmake a point to "accentuate the positive."
![Page 23: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/23.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 23/112
Basic Components (2 of 2)
3. Strategy: Plan a realistic course of action
based on sound preparation and
objective appraisal of resources.
4. Technique:
Combine a wide range of skills;draw on experience and self-discipline.
![Page 24: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/24.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 24/112
![Page 25: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/25.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 25/112
![Page 26: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/26.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 26/112
Three stages of negotiation
ØInitial Stages
Ø
ØMiddle Stages
Ø
ØEnding StagesØ
![Page 27: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/27.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 27/112
![Page 28: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/28.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 28/112
Middle stagesMiddle stages
• Revise strategies.
• Consider other options.
• Increase power by getting the other side to commit first.
• Add credibility by getting agreements in writing.
• To get through with dead ends, just set it aside
momentarily.
• When asked for a concession, ask for a tradeoff.•
![Page 29: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/29.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 29/112
![Page 30: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/30.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 30/112
![Page 31: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/31.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 31/112
MODULE 2
ASSESSING THE BALANCE OFPOWER
![Page 32: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/32.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 32/112
![Page 33: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/33.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 33/112
![Page 34: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/34.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 34/112
![Page 35: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/35.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 35/112
![Page 36: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/36.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 36/112
![Page 37: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/37.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 37/112
![Page 38: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/38.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 38/112
Negotiating involves communicatingwith people.
Let’s look at how we cancommunicate with people better.
![Page 39: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/39.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 39/112
Why Effective Communication isImportant in Negotiations
• Engineers are good at calculations and equations
• However, we deal with people all the time,especially in negotiating
• It is imperative that we work well with people,listen effectively, and be able to communicatewith them to accomplish our goals
• This part of my presentation will give you tools todo that •
![Page 40: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/40.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 40/112
Communication Model
Thought ender Encodes Message
Words Pictures
ransmits the Message
:Receiver receives message- Hears it- Reads it- Feels it
Receiver decodes—message
Interprets meaning
Receiver ACTS on message
How many opportunities are there for miscommunication ?
![Page 41: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/41.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 41/112
Personality Types/
Communication Styles
![Page 42: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/42.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 42/112
Personality Types/ Communication Styles
• Research by Swiss psychologist Carl Jungsuggested there are recognizabledifferences in personality types amongpeople.
• Isabel Briggs Myers and her mother KatharineBriggs extended and refined Jung’s theoryinto what is now known as theMyers-Briggs Type Indicator ® (MBTI® )
• The following slides summarizes four different
personality types that will help you workwith and communicate with people moreeffectively. •
![Page 43: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/43.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 43/112
• Feeler
– Considers people and friendships important. They aregenuinely concerned about other people’s feelings and goout of their way not to offend.
– Strength: People sense the Feeler’s concern and are put atease by them.
– Weakness: Can miss the big picture and mission by being
overly concerned with others’ feelings. May not give youbad news out of a desire not to hurt. – Tips for working with Feelers:
• Be prepared for small talk (“schmoozing”) before getting tothe issues needing consideration. Allow time for smalltalk.
• Listen and be responsive.• Don’t be domineering or threatening.
• Be supportive of the Feeler’s issues in seeking to accomplishyour own. •
Behavioral/CommunicationStyle Differences
![Page 44: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/44.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 44/112
• Sensor – Sensors are strong, decisive, results-oriented people. They tend to keep their emotions to themselves.
– Strength: They are energetic, dynamicimplementers. Highly mission-focused. They getthings done!
– Weakness: Can appear overly pushy or demandingat times. May not pickup on human dynamics of asituation. May make a decision before having allrelevant 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.
• Don’t waste their time. •
Behavioral/CommunicationStyle Differences (cont.)
![Page 45: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/45.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 45/112
• Thinker
– Thinkers are logical and organized. They deal with facts,data, logic, details. Thinkers have tendency towardperfection. They tend to keep their feelings andemotions inside, and do not usually reveal them toothers.
– 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 beprepared to do so if asked.
• List pros and cons of any suggestions you make.
• Don’t be disorganized.
• Don’t rush the decision-making process if at all possible. •
Behavioral/CommunicationStyle Differences (cont.)
![Page 46: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/46.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 46/112
• Intuitor
– Intuitors are highly enthusiastic and creative people. They have strong conceptualization skills, and canthink outside the box. They enjoy the world of possibilities, group activities (like parties) and feel lesscomfortable in restrictive environments.
– 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 to deadlines.
– 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.)
![Page 47: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/47.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 47/112
![Page 48: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/48.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 48/112
MODULE 4
NEGOTIATION AND BARGAINING
![Page 49: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/49.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 49/112
![Page 50: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/50.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 50/112
Conflict and Group
![Page 51: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/51.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 51/112
Conflict and GroupPerformance
., , ,Robbins et al Fundamentals of Management 4th Canadian Edition ©2005 Pearson Education Canada.Inc
C fli H dli S l
![Page 52: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/52.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 52/112
Conflict-Handling Styles
Uncooperative CooperativeCooperativeness
Forcing
esolving conflicts by’atisfying one s own needs
’t the expense of another s
Avoiding
esolvi ng conflicts by ithdrawing from or uppressing them
Collaborating
ewarding conflict by seeking n advantageous solution for ll parties
Compromising
esolving conflict by each
arty giving up something f value
Accommodating
esolving conflicts by’lacing another s needs
nd concerns above yourown
., , ,Robbins et al Fundamentals of Management 4th Canadian Edition ©2005 Pearson Education Canada.Inc
![Page 53: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/53.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 53/112
![Page 54: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/54.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 54/112
The Zone of Agreement
’eller ssurplus ’uyer s surplus
one ofagreement
s x b’eller s reservation
price
( eller wants s or)ore
eller wants to move x to theright
inal
Contract
’uyer s reservationprice
( uyer wants b or)ess
uyer wants to move x to he left
( )oney $
![Page 55: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/55.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 55/112
Formulating a Negotiation
![Page 56: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/56.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 56/112
Formulating a NegotiationStrategy
• Strategic plan – Commitment to an overall approach
that has a good chance of achievingthe negotiator’s objectives
• Soft : avoid conflict, makeconcessions; often end up exploitedand feeling bitter
• Hard : sees any situation as a contest
of wills. Exhausts people andresources and harms relationships
• Other strategies are between hard andsoft, but each involves a trade off
• Making good tactical decisions
![Page 57: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/57.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 57/112
![Page 58: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/58.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 58/112
![Page 59: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/59.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 59/112
![Page 60: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/60.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 60/112
• The more credible you are, the morebelievable is your price.
• The more written documentation you
have, the more believable is yourprice.
•
RULES OF NEGOTIATING
![Page 61: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/61.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 61/112
RULES OF NEGOTIATING
• The weaker your perceived position,the more of discount will beexpected.
• If you give a much requestedconcession, demand a biggerconcession in return.
•
![Page 62: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/62.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 62/112
RULES OF NEGOTIATING
• Know their deadlines
• Be aware of your options
• Be aware of their options
• Use all the time available tonegotiate
![Page 63: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/63.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 63/112
RULES OF NEGOTIATING
• Be comfortable with stress andpressure.
• Make small concessions, slowly.
• Control your pattern of concessions.
• Make non-price concessionswhenever possible.
• Never agree to “split the difference.”
![Page 64: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/64.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 64/112
RULES OF NEGOTIATING
• Negotiate at the end of the day.
• “I’m sorry, but I don’t have theauthority.”
• Don’t be afraid to walk away andnegotiate another day.
![Page 65: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/65.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 65/112
t Know Rules
![Page 66: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/66.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 66/112
66
ule No ZERO ule No ZERO
now the Basic Info now the Basic Info
![Page 67: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/67.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 67/112
67
ule No 1
–o Free Gifts Seek-Trade off
ake sure you highlight your ompromises and make them
gainst a compromise by the
ther party
ust Know Rule
![Page 68: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/68.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 68/112
68
ule No 2
tart Higher Than What ou Desire
.I rite down what you want and lways start higher than what
ou desire
.I he recent CNG price hike story
ust Know Rule
![Page 69: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/69.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 69/112
69
ule No 3
dentify Your Envelope f Negotiation
.I Ranges.II Openingpening.II Targetarget.IIII ottom Lineottom Line
.I -he car buying experience
ust Know Rule
![Page 70: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/70.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 70/112
70
ule No 4
now Your BATNA
.I he Power to Walk Away
ust Know Rule
![Page 71: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/71.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 71/112
71
ule No 5
ever Settle Issues–ndividually Always ettle them as a Package
ust Know Rule
![Page 72: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/72.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 72/112
72
ule No 6 ‘ ’onclude With a Nibble
’ ‘ ’hat s a Nibble§ ittle snack or a bite ittle snack or a bite
‘ ’ ‘dd the free shipping or two days’arranty at the end
ust Know Rule
![Page 73: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/73.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 73/112
73
ule No 7 eep Looking for reative Concessions to
Trade
.I ‘ ’ree Complementary SessionConcession.II hink of your most common negotiation hink of your most common negotiation
- ,ituations and think of high value- ,ituations and think of high value-ow cost concessions you can offer ow cost concessions you can offer
ust Know Rule
![Page 74: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/74.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 74/112
74
ule No 8 ocus on Interests notPositions
he Rules that Maximize Retu
![Page 75: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/75.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 75/112
75
ule No 9 lways Communicate
enefits of Your Offer ot Features
‘ ’ifference between Feature and‘ ’enefits
he Rules that Maximize Retur
![Page 76: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/76.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 76/112
![Page 77: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/77.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 77/112
MODULE 5
NEGOTIATING STYLES
![Page 78: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/78.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 78/112
![Page 79: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/79.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 79/112
![Page 80: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/80.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 80/112
![Page 81: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/81.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 81/112
Step Five - Agree
• Usually final concession :“IF you do that, THEN we have adeal!”
• Gain commitment• Record and agree results
• Leave satisfied
Thi k b t i fl i t l
![Page 82: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/82.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 82/112
Think about your influencing style
Inspirational
Logical
Personal
Forceful
7 D dl Si f N ti ti
![Page 83: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/83.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 83/112
7 Deadly Sins of Negotiating
• Pride - Be prepared to compromise
• Gluttony - Don’t bite off more than you canchew
• Anger - Handle objections calmly• Covetousness - Prioritise needs/wants
• Envy - Know competitors strengths &weaknesses… AND your own
• Sloth - Do your homework
• Lust - Don’t look desperate to settle
An Unconditionally Constructive
![Page 84: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/84.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 84/112
yStrategy
o only those things that are both good for the relationship nd good for us
- h e t h e r o r n o t t h e y r e c i p r o c a t e
RATIONALITY ,Even if they are acting emotionally balance emotions with reason
UNDERSTANDING ,Even if they misunderstand us try to understand them
COMMUNICATION ,Even if they are not listening consult them before deciding on matters that affect them
RELIABILITY ,Even if they are trying to deceive us neither trust:them nor deceive them be reliable
-ON COERCIVE MODES
F INFLUENCES
,Even if they are trying to coerce us neither yield to
,that coercion nor try to coerce them be open to persuasion and try to persuade them
ACCEPTANCE Even if they reject us and our concerns as unworthy of,their consideration accept them as worthy of
,consideration care about them and be open to learning from them
" "Getting TogetherFisher
Three Approaches To Resolving
![Page 85: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/85.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 85/112
pp gDisputes
MOVING FROM A DISTRESSED TO AN EFFECTIVE RESOLUTION SYSTEM
Distressed System
Power
Rights
Interests
"Dispute Resolution" Goldberg Green Sande
Three Approaches To Resolving
![Page 86: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/86.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 86/112
Effective System
Power
Rights
Interests
Goldberg
MOVING FROM A DISTRESSED TO AN EFFECTIVE RESOLUTION SYSTEM
pp gDisputes
![Page 87: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/87.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 87/112
Negotiation Check List
42
![Page 88: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/88.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 88/112
Negotiation Check List
Good Practice Avoid
Actively listenQuestion for clarificationSummarisingTest commitmentSeeking & giving informationEncourage two way conversationState and plan your proposal – then summariseUse the ‘if you ….then we’ll’ principle
InterruptingAttackingBlamingTalking too muchSarcasmThreatsTaking it personallyClosed body language
![Page 89: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/89.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 89/112
![Page 90: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/90.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 90/112
![Page 91: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/91.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 91/112
MODULE 6
PLANNING : THE KEY TOWIN-WIN NEGOTIATION
![Page 92: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/92.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 92/112
![Page 93: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/93.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 93/112
![Page 94: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/94.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 94/112
![Page 95: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/95.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 95/112
MODULE 7
TRADING CONCESSIONS
![Page 96: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/96.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 96/112
![Page 97: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/97.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 97/112
![Page 98: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/98.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 98/112
MODULE 8
PREPARING AND CONDUCTINGINDIVIDUAL AND TEAM
NEGOTIATIONS
![Page 99: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/99.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 99/112
Tactics & Tips
![Page 100: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/100.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 100/112
1.Decline to speak first: who speaks second usually has a better opportunity to
analyze his counterpart3.Volunteering to keep the minutes of the meeting:When you do so, you willhave a better opportunity to phrase the minutes, and better window to analyze and
assess negotiation pathway.5.Stress on time-frames: Aiming to transmit sense of urgency and a feeling of
punctuality to your counterpart.7.Good guy / bad guy approach: Here, the role of the “bad guy”, or toughnegotiator is to lower counterpart’s expectations below required. Then when the
“good guy” offers the demanded solution, it gets more acceptance.
9.Claim limited authority: Never be shy saying “Sorry, but I really can not havethe rights to do this, I am not authorized to go down to this level”. Even thepresident can say “I am not authorized to accept this, it will deeply frustrate the
shareholders” 11.Caucusing: If you needed to re-align your team talks and perspectives, or to
update about an analysis you made, you can ask for a caucusing momentswith your team.
13.Walking out: If you needed to buy a moment to think a point over, you canexcuse to restroom or to smoke a cigarette.
15.Concession patterns: Whenever you feel cornerized and in a very badnegotiation positions. You can postpone reaching a consensus, or decide to focuson decreasing losses other than maximizing benefits.
17.Fait accompli : “What is done is done, let us face the current situation”. You
might use this approach if you do not wish to dig in the past and relateconsequences to it.19.Love it or Leave it : When you hold a very potent position, and you are not
willing to create a win-win for whatever reason. You can as a last option use the “take it or leave it” approach. Not as is, but to give the meaning in a descent way
that allows your counterpart a surrender with dignity.
STAGES OF NEGOTIATION
![Page 101: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/101.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 101/112
STAGES OF NEGOTIATION
• Phase 1:Preparation
• Phase 2:Interacting
• Phase 3:Agreement
![Page 102: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/102.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 102/112
PREPARATION
![Page 103: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/103.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 103/112
INTERACTING
![Page 104: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/104.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 104/112
he Art of Listening
&hallenges &hallenges
![Page 105: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/105.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 105/112
Obstaclesbstacles
![Page 106: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/106.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 106/112
A C T I C S R E G A R D I N GP R I C E
Should I ever state my acceptablerange?
Should I ever tell the other side my
bottom line?
Suppose that the other side opens with,an incredibly unreasonable number
should I counter with an equally,unreasonable number or decline to counter at all?
![Page 107: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/107.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 107/112
A C T I C S R E G A R D I N GP R O C E S S
Is it acceptable to make two moves at atime?
Is it smart or fair to bluff?
,In a complex deal is it better to reach agreement issue by issue or wait until the end?
Is it better to deal with difficult or
easy issues first?
A C T I C S R E G A R D I N G
![Page 108: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/108.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 108/112
P E O P L E
.Collaborative negotiator vs positional hardbargainer? How should I react if the other side seeks
to change something in its offer after a deal has been reached?
What should I do when the negotiator on the other side has a temper tantrum?
’ .I don t believe in what the other side says Is it essential to negotiate face to face?
How should I react when the other side,challenges my credentials status or
authority to make a deal?
![Page 109: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/109.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 109/112
CLOSURE
![Page 110: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/110.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 110/112
![Page 111: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/111.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 111/112
![Page 112: Negotation - Main](https://reader030.fdocuments.in/reader030/viewer/2022021114/577d35bf1a28ab3a6b914af5/html5/thumbnails/112.jpg)
8/8/2019 Negotation - Main
http://slidepdf.com/reader/full/negotation-main 112/112