QUALIFIED NEGOTIATOR® Online - Schranner

QUALIFIEDNEGOTIATOR® Online

[email protected] I @andreasgossen

http://schranner.com

http://www.twitter.com/andreasgossen

IntroductionAgenda: • The negotiation process• Opening – The right entry• Important tactics – part 1• Q&A

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1. The joy of conflict2. Understand & implement the negotiation process3. Use of tactics à Establish the driver seat

Goals

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What is a negotiation?

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Negotiation process

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Phase 1: Preparation

Phase 2: Opening

Phase 3: Analysis

Phase 4: Dealing

Phase 5: Closing

Phase 6: Execution

- Target definition- Agenda setting- Gathering of information - Stabilization of partner

- Light Social Conversation- Analysis

- Dealing with conflict- Use of tactics- Reach agreement - Transfer into praxis

- Monitoring- Re-negotiation

1. In which phase do you observe the most dangerous mistakes in difficult negotiations?

2. Which phase is the most critical and important one for your negotiation partner?

3. Which phase will become increasingly more and more important in future?

Group discussion

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• Please write down before the negotiation:• Maximum target – what do I want to achieve?• Minimum target – what do I have to achieve?

• Avoid a negatively worded and past oriented targets!• „Everything should remain as it is.“• „Our customer relationship should not be endangered.“• „We have to stop the decrease of sales.“


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• Begin with a positive mindsetà Stabilize

• Create common ground• Praiseà technical positive

phrases• Take notes• Active Listening

Phase 2: Opening

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Stress

Time

• „Thank you, that we both discuss financial topics today“ à Ensure „We” perspective – maintain eye level

• „Thank you, that you and I – together – we can focus today on our proposal“ à Avoid talking about competitors/third parties

• „Thank you for your perspective…from our perspective“ à Never accept a wrong summary

• “…important information” à keep off judgmental expressions like “fair”, “final”, “constructive”, etc.

• “(…) engagement we both putting the same effort into this matter”• “(…) professional approach”

Phase 2: Opening

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• Would it be an option, if…• Would you consider, …• If you…then we…• Perhaps you can…the we would…• Say you could…then we maybe able to…• When you…we can offer…• Assuming you can…we will be able to…• On the condition that…we can agree to…• Let‘s say you can…we will agree to…• As long as you can…we will say yes to…• For a price of…we would give up…• Maybe the addition of…give us the flexibility to be able to offer…

Phase 3: Analysis

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Phase 4: Dealing

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Demands Priority ResponsibleDemand 1 R NameDemand 2 Y NameDemand 3 G NameDemand 4 G NameDemand 5 R NameDemand 6 R NameDemand 7 Y NameDemand 8 G NameDemand 9 Y NameDemand 10 R Name

Red must haveYellow should haveGreen nice to have

Phase 4: Demands - examples

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Rot (Must-have) Green (Nice-to-have)

Compliance Actions with % - volume increase

Decision mandates / team members Corporate Social Responsibility

Delivery terms Data sharing

Decision maker meeting Deferral of increases

Exclusivity (time, process, product, territory) Preferred partner status

Invoice control / audit Marketing actions

Length of contract Interview / PR activity

Last call options Results of data analysis

Payment terms Risk sharing

Terms & Conditions White paper / survey / report

Phase 4: Demands - examples

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Yellow (Should-have)

24/7 Availability Installation costs Termination settlements

72h Response time Leasing Training & Demonstration POS

Access to customer data Lot sizes Templates, IT access, order templates

Additional costs Listing fees Tolerances

Currency risks Manuals (Format, Language, ) Certificates Transport logistics

Contractual penalties („partnership bonus“) Maintenance Trial runs

Contract length Planning horizon Type and scope of financing

Consultancy services Price fixing Time of re-negotiation / Contract review

Exchange-rate risks Price scale Volume planning

Future business Recycling Volume discount / Rebates / Threshold

First / early release Service levels Volume potential

Insurance Samples, loyalty bonus Warranties / Guarantees

1. Joy of conflict2. Negotiation = visible conflict (1) + depended relationship (2)3. Pay attention to „signals of willingness to cooperate” 4. "We determine the next steps" à meeting date or follow-up activity5. First negotiate the process, then the substance6. 90% tactical preparation & 10% content preparation7. Focus on the “Window of opportunity”8. Stabilize at first à Eye level ”We” – perspective & "important information"9. "We never know enough" à Active Listening & < 20% share of words10. Bring in demands (conjunctive) & use precise and non-round numbers

Summary

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1. Negotiating = Selling2. Define negative & past-oriented targets3. Wishful thinking4. Guessing/Assuming5. Being right or wrong6. Open questions (wish list of your counterpart)7. “I don’t, I won’t, I can’t” (negative formulated sentences) 8. Repeat price of partner or justify own prices9. Change color of demands10. Bring in arguments or arguing

Summary

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• E-Learning-portal à access to new documents & materials• Individual Exercise• Next online session

Outlook

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Agenda: • Revision• Important tactics – part 2• Agreement & disagreement• Q&A

Introduction

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Revision

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Revision

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Phase 4: Dealing

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Option 1

Option 2

Option X

Phase 4: Dealing

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Open questions

Option questions

Summarize

Phase 4: Dealing

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Phase 5: Closing

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1. Law of reciprocity (give & take)2. „Is there anything else, we need to know?“ (Columbo)3. Multiple option questions4. Summarize „Thank you for your perspective…from our perspective“5. „Put the fish on the table“6. „Low hanging fruits first“7. Act and never react8. Agenda (1. current status 2. actions 3. next steps)9. Establish the driver seat 10. „3 doors“ (termination) – uncomplicated re-entry

Summary

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1. Ask for bottom line2. Person = problem3. Ask „Why“4. “final offer”, “fair idea”5. Postpone decisions6. „Other“ topics on agenda7. Talk about third parties or competitor8. Even/round numbers9. Break off by emotional reaction/circumstances 10. Escalation to Top-Management

Summary

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• E-Learning-portal à access to new documents & materials• Individual Exercise• Next online session

Outlook

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IntroductionAgenda: • Revision• Negotiation Team• Transfer into practice• Q&A

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Revision

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Revision

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Phase 3: AnalysisEgo• Behavior under pressure• Extroversion vs. Introversion• Search for recognition,

success and status• Willingness to help• Lifestyle• Empathy• Decision making• Reliability• Risk taking

Level of control• Accuracy (precise wording for

contracts)• Structure and planning• Timing & priorities (deadlines)• Formal vs. informal

procedures (i.e. strict guidelines)

• Level of protocol

Relationship• Level of cooperation (short-

vs. long-term)• Trust (exchange of sensitive

information)• Interests (similar vs. different)• Social contacts• Communication (direct vs.

indirect, regular vs. distant)

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Negotiation Team

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Negotiation Team

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Negotiation Team

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Negotiator Commander

Description: Speaking Negotiator Non-speaking Negotiator

Responsibility: • Responsible for current negotiation case• Single Point of Contact (SPOC) for external

party

• Responsible for the process• Building up lasting relationships separately

of on-going negotiationUse of tactics: • Bring-in demands (demand list)

• „Put the fish on the table“• Lead through the agenda

• Opening / Introducing team / LSC• Focus on common features• Take notes / „window of opportunity“

Focus: • Detail-oriented (red, yellow, green)• Facts and figures

• “big picture”• Progress and target achievement

Features:• After negotiation disappears • Person is independent from results • Not emotionally attached• Technical distance

• After negotiation turns visible à focus on long-term relationships

• Process owner• Briefing the decision-making level

Negotiation Team

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Decision Maker Specialist departments / Others

Description: Highest decision level (person or council) „non-speaking participants“

Responsibility: • Responsible for project• Determines negotiation rules• Defines target & timeline

• Responsible for a specific topic• Role of expert

Use of tactics: • Lead probing conversations• Never becomes involved into conflict• Focus on common features

• No conflict to be used• No demands are to be given• „From our perspective (….)“

Focus: • Relationship to external decision-makers • Focus on content

Features:• Appears on positive elements• After being contacted, initial internal

briefing to Commander

• Involvement only with previous alignment• During negotiation no contact person• Negotiation Playbook

1. Negotiation = Re-Negotiation2. Define positive targets3. Simple language4. Light Social Conversation5. Make notes – collect information6. „great idea“, „difficult“, „interesting“, 7. Sense of urgency (timeline)8. Team Setup (N-C-DM-E)9. The smaller, the better results + control of information10. Internal briefing (Decision Maker & Experts)

Summary

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1. Target movements2. Focus on content preparation3. Early commitment „Yes“, “No“4. Avoid the conflict5. Negotiate with intuition6. Accept anchor of counterpart7. Put solution too early on the table8. Change roles of Negotiation Team 9. Commander and Negotiator = single person10. Losing face of counterpart

Summary

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• E-Learning-portal à access to new documents & materials• Certification• Virtual Negotiation Classroom

Outlook

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1. “We determine the next steps" à Negotiate process before substance

2. Preparation à Focus on 90% tactical preparation 3. Opening à Praise your negotiating partner at the beginning4. Active Listening à "We never know enough" & 20% share of

words 5. Avoid being right or wrong à Bring in demands6. "Put the fish on the table" à Create a sense of urgency7. Lead through your agenda à Establish the driver seat

Important principles

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• Define your target before the negotiation • Record minimum and maximum goals in writing• A good preparation allows you to negotiate purposefully


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• Start the negotiation with a positive mindset• Praise your negotiation partner - specifically• Use Light Social Conversation at the beginning

Phase 2: Opening

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• Gather consequently information• Encourage the willingness to cooperate• Talk about options

Phase 3: Analysis

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• Act instead of react• Bring in your demands• Keep in the driver seat

Phase 4: Dealing

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• Summarize the results• Use the “3 doors“ to avoid losing face• Avoid a winner‘s smile

Phase 5: Closing

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• Expect a re-negotiation• Bring in new demands• Monitor the execution

Phase 6: Execution

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• Stabilize at first à Emphasize common ground• Enter positively à Light Social Conversation• Speak in a conjunctive mood à „Would it be possible, if (…)“• Take notes à gather further information• Address the conflict à „Put the fish on the table“• Avoid being right or wrong (bossiness) à bring in demands• Separate the people from the problem à „We negotiate for results, not against

someone.“• Lead through the agenda à act and don’t react• Share of words 20 % à Say nothing, the less the better (active listening)

Overview of tactics

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Summary1. Write down positive targets.

2. Prepare a professional agenda.

3. Praise and stabilize your

counterpart at first.

4. Act and never react to verbal assaults.

5. Separate the people from the

problem.

6. Always show willingness to

negotiate.

7. Never provide an attack option.

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Books

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Stay in touch

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@andreasgossen@SchrannerAG

http://twitter.com/andreasgossen

http://twitter.com/SchrannerAG

QUALIFIED NEGOTIATOR® Online - Schranner

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