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Transcript of Negotiating skills
What medical managers doDoing thingscomfortable, prime jobMaintaining thingssafe, easy managementChanging thingsuncomfortable, leadership
SpectrumInfluencing skillsNegotiating skillsDealing with difficult situations
Phases of negotiationPreparationOpeningBargainingClosing
Characteristics of a negotiationA preference to search for a solution rather than have a fightDepends on:Personalities of the people involvedHistory that exists between themThe persuasive ability of each
Two types of negotiationCo-operative = win/winempatheticpartnership agreementsAdversarial = win/losemaximise own gain and others lossunstable agreements
PreparationWhat are my objectives?What does the consultant want?What information will influence the outcome?How am I going to achieve my objectives?What concessions can I make?What part will other people play?
ObjectivesWhat exactly do I wish to achieve?Which of my objectives:must I achieve?do I intend to achieve?would I like to achieve?What other options are acceptable to me?How might this fit with what the consultant wants?
ConcessionsWhat is the best deal I can realistically get?What concessions do I have; their cost to me and value to the consultant?What is the limit of my authority? When should I walk away; and at what cost to the outcome?
Opening the negotiationEstablish the issuesGather information
Establish the issuesAgree an agendawhat needs to be discussed and agreedwhat are the major issueswhat are the timescalesKeep everything general at the beginningGain commitment early on, but only once all the negotiable items are identified
Gather informationYou have and are willing to giveYou have and are not willing to giveThe consultant has and is willing to giveThe consultant has and is not willing to giveDo not give concessions until you believe you have all the information
Bargain and build a solutionStart should be ambitious but defensibleBargainask questions and seek alternativesConcessions tradeddont give away for freeAgreement reached
Closing stagesVital to overall successDo not be over eager as may make the consultant hold back for more concessionsBeware one sided concessions at end of negotiation - the majority of concessions are given or traded in last 5% of total time.
ClosingReview position to date and agree itRecord the detailsDefine and timetable outstanding issuesAgree with the consultant that you both have the same interpretation
Some pitfalls - 1Failing to prepare effectivelyBeing intimidated by statusForgetting the consultant has things to gainMaking assumptions about what the consultant wantsTalking too much and failing to listen effectively
Some pitfalls - 2Giving away concessions for nothingConceding on important issues too quicklyAssuming deadlock means agreement is not possibleBeing inflexibleTaking things personally
Although the title is Influencing and Negotiating Skills, this presentation is mainly focussed on difficult negotiations. The majority of negotiating and influencing sessions should be much shorter and less painful, but as ever, preparation is the key.Doing ThingsWhen you started medicine as clinicians you did so because you wanted to do things to treat patients. This therefore is your prime job and you within our comfort zone in doing it. Maintaining ThingsWhen you first started considering medical management, it tended to be about maintaining things. To do this you attend meetings, complete returns and handle problems. Again, this is in your comfort zone. Changing ThingsHowever,you are sometimes asked to change things, outside your comfort zone because it involves a different interaction with people - leadership and influencing.
There is a big spectrum between influencing, negotiating, and dealing with difficult situations.In fact, we sub-consciously use these skills throughout the day during our interaction with people, but the step to being required to do it is often seen as gigantic. Each of these uses aspects from the other. Negotiation can also be seen as a spectrum from a one-to-one conversation to teams sitting across the table. In this presentation we will be looking at the first, although some of the lessons and techniques are borrowed from the latter.In any form of negotiation these four phases take place. There may well be different emphasis from one negotiation to the next, but all need to happen.Bear in mind that each person in a negotiation is there because they want a solution. Not everyone wants the same solution, which is why a negotiation takes place.
History can be a strong component not only history between the two people but between departments, directorates or teams. Remember, history is not always correct and if you believe it is getting in the way then bring it to the surface. Negotiation is a complex communication process. This slide indicates the two most common types of negotiation. You really have to strive to want a co-operative negotiation. The note that accompanies this presentation goes into a lot of detail on this point.Things to think about before starting the conversation.These should mould your own strategy on entering the negotiation. Do not let them become too fixed or rigid, or you may not achieve your goal and appear a dictator in embryo.The amount of time you set aside for this self reflection will always vary. You may also need to take advice from the chief executive, non-medical managers and medical colleagues.See previous slide notes.
This should help crystallise precisely what you want to achieve.lThis is how you think through the bargaining process that you will use.Agreements are usually reached by concessions being given and received. Concessions have two elements: cost and value. It is best to give away a concession with little cost to you but high value to the consultant.Know your limits, and the limits of your authority. You cannot obligate the employer to a course of events that runs counter to the trusts direction. You may have a limit on the financial deals you can strike.
Once you have reached any of your limits and lost bargaining power you have to do the most difficult thing in a negotiation stop it. Walk away. Find a good reason to do so. It is worse to agree a concession which then gets removed by a higher authority than not to agree it in the first instance. Your own pride and status takes a big fall.Successful negotiators have thought out the way ahead. They are well prepared, self-confident and structure the negotiation so that they remain in control.Although it seems formal to agree an agenda, it should be done. It gets everything out on the table and puts some timescale around them. Dont dive into detail. You cannot see a forest by looking at each tree. Keep as general as possible, that is how you may flush out inter-related issues.
Do try and gain commitment to the process and a buy-in of the agreed solution. You, too, will have to commit, as the end result may not be what you thought.You will already have gathered information, but you may now find out more. This is a two way sharing of information. Now it is about listening and probing to find out as much as you can, first hand. You may find out items you didnt expect, so you are advised to go through this step.
Dont give ground until you believe you know the whole game plan.In a negotiation you can start from a defensible extreme and give ground. You may gain more than you expected to. If so, do not be surprised and dont ever let it be known that you have gained more.
If an impasse looks likely then seek alternative solutions.The closing stages are vital. Appearing over eager is bad in closing deals think about the extra concessions you have gained from car salesmen. You may want to do it deliberately in order to give away a concession to prevent others you can see coming over the horizon, but only do so if you are experienced.
Dont toss out concessions at the end for free why would you want to? In a one hour negotiation most concessions are given in the final 3 minutes!It is vitally important that you both record and agree the position at the end. It is very easy to remember later. Doesnt need to be just factual - emotions and expectations can be recorded.This slide and the next are really important slides.Last point is very important. A good note to end on:These can be difficult discussions but the anger or other emotions are being directed at the post you hold, not at you as an individual.