The final negotiation
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21-Oct-2014 -
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Transcript of The final negotiation
negotiationnegotiationNNThe
is foris for...claire huang 09KM904W
justin jojo bello 08BN946R
What?What?
« Negotiating means acting, making things change and evolve, exchanging, it is the opposite of inertia » DIMITRI WEISS
Competition in negotiation is a power Competition in negotiation is a power play…play…
• « I want to win, I will use all the ways to win; and I want you to lose »
• « The first one to speak is in a weak position »
• « We have to take advantage from the beginning »
• « The one who gives much information is in a weak position »
approach of negotiationapproach of negotiation
Advocating approachattempts to obtain the most favorable outcome for that party
Win / win approachlooks at both parties interests and requirements and seeks
mutual benefit
New creative approachcollaborating to produce results that go beyond win/win and
win/lose
factual knows all related information, covers all bases, provides information relational establish relationships, builds trust and perceives other party’s position intuitive unexpected solutions or approach, anticipates progress, sees big picture logical sets rules, develops an agenda, argues logically than emotionally, adapts
interestsinterests
Integrative: Deals with the needs and resources of the bargaining parties
Distributive: Deals with positions and resources and how much each side wants
Distinguish between positions and interests, both your own and the party with whom you are negotiating.
processprocess
Preparation of negotiationsset clear objectivesanticipate claims and reactions of the other partydevelop strategy
Discussion of the problemread and understand the problemlisten and focus on the other partyask the right questions
Propose solutionssummarize, analyze, offer suggestions or
solutions Negotiate a compromise
keep your goals in mindmake sure new proposals (concession) fit your
limitationsFinalization
formulation of agreementpreparation of implementationreview the experience of the negotiation
preparationpreparation
Set objectivesParties frame the problem & recognize that they have a common problem that they share an interest in solving
AnticipateDefine the issues to be discussed and analyze the conflict situation
StrategizeResearch and consultation with experts, prioritize their goals and positions and evaluate possible tradeoffs. identify the concerns, desires, and fears of the goals
understand needs, know priorities, identify boundaries count resources, develop walk-away position
discussion of problemdiscussion of problem
Read and understand the problemUnderstand the problems and objectives of the other party.Without this understanding, you can not propose solutions.
Listen and focus on the other partyFamiliarize yourself with the other party’s concerns, position
and goals
Ask the right questionsAsking questions provides an opportunity to get more
information andensure that the given information is understood. Asking questions considers the arguments of the other
party.
solutionssolutions
Propose solutionsIn order to propose solutions, you should be able to summarize what has been said, analyze the consequences, and be able to offer suggestions or solutions based on analysis.
compromisecompromise
Negotiating a compromise
When beginning negotiations, always keep in mind your goals
Whenever you make a new proposal (concession), you must make sure it fits within your limitations.
conflictconflict
Types of conflictsconflicts of interestconflicting needsconflicting views
Styles of conflict managementcollaboration face-to-face cooperative
challenge face-to-face non-cooperative
acceptance non confrontational cooperative
bypass non confrontational and non cooperative
compromise incorporates elements of other styles
agreementagreement
Finalizationformulation of agreementall aspects have been accepted, in particular: dates for implementation, review , finalization, and the definition of terms
preparation of implementationan agreement is managed once implemented. implementation programs are incorporated into the bargaining agreement which will define what needs to be done, when, and by whom review the experience of the negotiationafter closing, lessons must be learned.
What went wrong? What went well? What was learned?
These lessons will help for the next negotiation
strategiesstrategies
Prepare for:you and your team membersdefining the rules of the meetingsubmission of opinions on the issues to be addressedobtain a briefing on the views of the other party
Decide:who will lead the discussionwho will check the factswho asks questionswho will answer questions from the other partywho will reduce tension and show interest in otherswho will take notes
Separate personality of the person and problem to solveBroaden your horizons. Do not be limited to one solutionLook for a solution, not a confrontationOrganize a constructive meeting
A good negotiator must be…A good negotiator must be…Full of resources…
Good negociators have to deal with a lot of information, which are evolving are uncertain
Patient…
Force the other party to adopt the own opinion is never a long term solutionTo attract the other in a common solution needs time, tolerance and persistance
Stay strong and firm
Full of resources
Full of resources Patient Patient
Stay strong and firm
Stay strong and firm
Negotiator profiles (Thomas Kilman)Negotiator profiles (Thomas Kilman)
Which strategy? Which strategy?
• Strategy = sum of actions and orientations aimed at reaching set objectives
• Strategy = art to organize the war
• Tactics = means and methods
• Technique added in negotiation
What am I doing in each level ? What am I doing in each level ?
Level Functions Actions
Strategy Large orientations Targets Options
I am thinking of my target How to reach it?
Technique Ways to deal with the topic
I am seeking to go further with my opinion Or I am seeking to defend myself
Tactics Opportunist actions I am taking advantage of opportunities and circomstances I am improvising
Some examples of techniquesSome examples of techniques
• Point per pointPoint per pointDivide the issue into small parts and face them one after Divide the issue into small parts and face them one after anotheranother
• Pack solutionPack solutionReach a global solution with both parties’ concessions Reach a global solution with both parties’ concessions and advantages taking into account each one’s prioritiesand advantages taking into account each one’s priorities
• EnlargementEnlargementEnlarge the topic and deal with new rulesEnlarge the topic and deal with new rules
• False linchpinFalse linchpinPretend to focus on secondary objectives, then facing the Pretend to focus on secondary objectives, then facing the other party’s refusal, focus on main objectivesother party’s refusal, focus on main objectives
Some examples of techniquesSome examples of techniques
Four deals Deal 1: Ideal solution for the negociator ADeal 2: Solution more than ideal the
negociator B, almost ironicDeal 3: Not very interesting for negociator A,
but B can acceptDeal 4: Optimum solution for both parties
IN THE IN THE END…END…
Triangle of the negotiationTriangle of the negotiation
B2B2
A1A1
Contract3
My position
4
His position
5
Our relationship
6
Key to negotiation successKey to negotiation success
The winner knows what to do if the negotiation fails, the loser has not thought about it
Success is not winning over the other Success is having more advantage
any questions?any questions?no?no?
The
FFis foris for...savingssavings
(thank (thank you)you)