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You Can Negotiate Anything
By HERB COHEN
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Authors Profile:
Herb Cohen - a practicing negotiator for more than threedecades in U.S.A. He is a person with extensive practical
experience and unique presentation style which made him
internationally renowned as someone who can articulate and
explain complex events.
You Can Negotiate Anything, which was on the New YorkTimes Bestseller List for almost one year and has been
translated into twenty-one languages.
Other works Negotiate This! By Caring But Not T-H-A-T Much
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Yes, You Can
Part 1
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What is Negotiation?
A field of knowledge and endeavor that focuses on gaining the
favor of people from whom we want things.
It is also about satisfaction of needs.
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Negotiation contd.
Prestige, Freedom, Money, Justice, Status, Love, Security andrecognition - all can be negotiated.
At least two parties with unsatisfied needs are required for anegotiation.
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Negotiation occurs when we want
to: Reconcile Differences
Manage Conflict
Resolve Dispute
Establish or Adjust Relationship
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Elements of Negotiation
Every negotiation comes with 3 elements
Information:
The other side seems to know more about you than you
know about them. Time:
The other side does not seem to be under any timerestriction as you are.
Power:The other side seems to have more power than youthink you have.
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When to Negotiate?
Are you comfortable negotiating in a givensituation?
Will negotiating meet the needs?
Is the energy and the time spent on
negotiation worth the benefits you receive?
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Criteria for an Ultimatum to Succeed
Frosting on the Cake- Negotiation should not begin with an ultimatum
- Ultimatum must come at the end
Soften Palatable
- Either Hard or Soft ultimatum should not be used- Hard ones might offend the other side
- While soft ones are only a statement
A recipe thatcant be tampered with
- Backing up the statement with some document
Selection from a limited menu- Leave the other side with choices
- Never state Its this or nothing!
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Three Crucial variables
Part 2
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Power
Everyone has power, irony is, not everyone knows how to putit to its proper use.
Power is neutral in its actual sense, but can manifestdepending on the use, two views exist
Power as a medium & not as a goal of life Power to manipulate
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Manifestations of Power
Power ofCompetition Never enter any negotiation without options.
Power ofLegitimacy Printed words, documents and signs carry authority.
Power ofRisk taking Knowledge of the odds and philosophical willingness to absorb
manageable losses.
Power ofIdentification Negotiating ability is maximized if one gets others to identify with him.
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Manifestations Contd..
Power ofCommitment Persuade others to help, get them involved and theyll shoulder part
of the burden.
Power ofExpertise Establish your background and credentials early in the confrontation.
Power ofthe knowledge ofneeds Adapt a style to satisfy the real needs of the other side.
Power ofInvestment Resource investment and compromise are directly proportional.
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Manifestations Contd..
Power ofRewarding or Punishing
Advantage rests with the one who knows the needs andperceptions of the other side, while the other side thinkshe is more powerful.
Power ofMorality
If you lay morality on people in an unqualified manner, itoften works.
Power ofPrecedent
They have got it; we should get it too attitude.
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Manifestations Contd..
Power ofPersistence
Learn to hang in there and be tenacious.
Power ofPersuasive Capacity Convincing others to meet ones needs and desires.
Power ofAttitude
Regard the negotiation process as a game or a fun filledactivity.
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TIME
Time and tide waits for none, but there's always a tide behind.
Negotiation is not an event (time restricted). WHY?
Deadlines are always there, be patient enough. Deadlinesare negotiable.
Dont reveal your deadline, make effort to the otherpartys deadline.
Keep your cool. Grass only looks greener on the other side Perseverance is the key
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INFORMATION
Its the key to the vault of success.
The process of information gathering precedes any
negotiation.
Methods of information gathering:
Probing
Third party contacts Personal leverage
Understanding Cues
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STYLES OF NEGOTIATINGA Tactic perceived is not a Tactic
PART 3
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Three styles of Negotiating:
Win-Lose ( Soviet Style ) winning at the expense ofother
Collaborative Negotiation lies in finding out what theother side really wants and showing them a way to getit, while u get what you want.
Win-Win both the parties will share the benefits.
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Negative notions about
Negotiation: There is a misconception shared by many great people.
Negotiator is a Slick manipulator who is attempting towin at expense of some innocent victim.
But the competitive strategy is the only one approach toget what u want.
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Characters of Soviet Style Negotiation:
Extreme Initial Positions.
Limited Authority.
Emotional Tactics.
1. Tears 2. Laughter 3. Threat 4. Guilt. Adversary Concessions viewed as Weakness.
Stingy in their Concessions.
Ignore Deadlines.
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Tactics help Soviet style:
No continuing relationship.
No remorse afterward.
No awareness by victim.
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Collaborative Negotiation :
Using the process to meet needs
Its all in the approach.
Eg: The clock sale.
Harmonizing or reconciling needs Eg: Howard Hughes and Russell Jane contract if $1
million.
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Conflict
Conflict is actual or perceived opposition of needs,values and interests.
It can occur sometimes due to same demand but
different styles to approach it.
Reasons of conflict: Experience- we are all captives of the pictures in our head.
Information Role
A finance and a Marketing manager.
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Win-Win technique
If the focus shifts from defeating each other to defeatingthe problem, everyone can benefit
Negotiation are never totally for what is being openly
talked about, be it price, services, products, territory,concessions, interest rates, or money. What is beingdiscussed and the manner in which it is discussed, areused to satisfy PSYCHOLOGICAL needs.
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Three Important activities for the
Win-Win Negotiation Building trust we make our fortunes and call
them fate. The process stage.
The formal event.
Eg: Stranger offering something in a competition. Gaining commitment.
Eg: Buy a house
Managing opposition.
Two types of opposition: Idea opponents. Eg: Job with a salary of $30000.
Visceral opponents- hate your ideas but alsohate you as a human being
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The Specific Game Plan for
building trust Establish trust. Obtain information.
Meet his needs.
Use his ideas. Transform relationship to collaboration.
Take moderate risk.
Get his help.
Eg: A man goes to a new shop to buy Video recorderand a new T.V.
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There is always risk involved in making Visceral opponents. For every action there is equal and opposite reaction.
Dont humiliate anybody in public.
Eg: Open door policy in an office.
Avoiding Visceral opponents:
1. Never forget the power of your Attitude.
2. Never judge the actions and motives of others.
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Solution to the problem:
Compromise results in an agreement in which eachside gives up something it really wanted.
Half a loaf is better than none.
A good negotiation outcome is one where both sides aresomewhat dissatisfied
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Compromise is not a ultimate
solution to every problem: Eg: Big Buddha solving the matter of his sons.
Eg: Siblings sharing rooms.
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Negotiating Anything, Any Place
Part 4
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Tele Negotiation
Telephone - a vital verbal link in modern life.
Million dollar transactions now a days happen throughphone.
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Phone Negotiation Characteristics
More misunderstanding
Lack of visual feedback
Easy to say NO
Quicker in nature More competitive
A win lose situation flourishes.
More risk
Quick is Risk Advantage to caller as callee is handicapped.
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Tips For success
Be caller and not callee.
Plan & prepare
Prepare check list of points to be covered If facts are present be ready with reference materials.
At end summarize what was agreed by callee.
Graceful exit
Have discipline to listen.
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Memorandum Of
Agreement/Understanding Once the telephone negotiation is over it is necessary to
draft the entire negotiation and pass it on to the otherparty.
It is the document composed after resolution ofconflict/dispute
MOA/MOU- to define the commitments of parties
involved.
It is better to take the responsibility of constructing MOA.
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Moving up in Negotiation
While negotiation deal only with apt persons.
Never waste time on dealing with individual who lackauthority.
Try to be demanding to the person who doesnt have anyauthority, and make sure he directs you to concernedauthorized person.
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Exceptions
Dilution of rules During negotiation rules can beignored, unless they are harmful. It is strictly on basis ofmutual agreement between parties.
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Final Word
Never give up and never give in.
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Personalizing
Process of humanizing yourself, making yourself identifiablewith the circumstance.
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Personalizing
In any negotiation personalize yourself and situation
How to personalize your self
Make the other person feel u are an unique individual, u havefeelings, someone who cares for him, obligated to him
How to personalize Situation
Negotiate on behalf of yourself, representing the institution.Never negotiate on behalf of any institution or organization.
Eg On behalf of IBS-B we would like to invite----
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Personalizing contd..
Make the other person feel/concerned for you.
Make them emotionally involve.
Women better in personalizing thus making them better
negotiators.
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Day To Day experience
Personalizing has a great role to play in Day to Day life.
Eg:- Negotiation between house owner and tenant.
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Tips for personalizing
Never carry any effective technique to such an extremethat it no longer becomes effective.
Act as per circumstance
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Conclusion
Destiny is determined by ones own effort so never backaway from exercising your power.
Negotiation is not always about getting what you want,but part of what you want should be to help others.
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Review
This book talks about the strategies for successful negotiationwith ease.
Author presents 3 important aspects of negotiation Information
Time & Power
The explanation is aptly presented under each topic.
Imparts knowledge in an interesting way.
The book relates to all age groups. Instances presented are humorous, making it an enjoyableread.
A Few of the examples are region-specific.
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Comments
Some of it looks outdated because the informationera has changed the scenario eg cellphones
Predominantly US based . Cross- Cultural issues not
considered adequately Money seems to be the most important platform for
negotiation!! Is it adequate
Gender bias.
Point made about Mahatma Gandhi using guilt ployto gain independence not n good taste.
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Comment:
Examples are mostly on price, however in lifemany other variables can be negotiated such
as need, choice, delivery, timing, etc
Examples from USA however in India one getsused to negotiation???
More emphasis needed on TRUST
Communication issues
What can we negotiate in business:
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COMMENT: ON NEGOTIATION
EVERY ONE NEGOTIATES
NEGOTIATION DEPENDS ONCOMMUNICATION
EVERY DESIRE THAT DEMANDS SATISFACTIONIS A POTENTIAL NEGOTIATION CANDIDATE
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WHAT CAN WE NEGOTIATE IN BUSINESS:
PRICE
TERMS
DELIVERY
QUALITY
SERVICE
TRAINING
RESOURCES (PEOPLE, MONEY, MATERIALS)
WARRANTY
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TIME POLYCHRONIC VS
MONOCHRONIC SYSTEMS
SWISS ARE MONOCHRONIC DOONE TASK ATA TIME IN STRUCTURED FASHION
IRISH ARE POLYCHRONIC PREFER TO DOMULTIPLE TASKS AT THE SAME TIME.
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COMMUNICATION/CULTURE ETC
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COMMUNICATION STYLES
FRENCH MAIN COMPANY/ JAPANESESUBSIDIARY
SUBSIDIARY SHOULD BUY FROM SAMESUPPLIERS AS PARENT COMPANY
REACTION ONE OF THE TEAM MEMBERS SAIDTHIS WILL BE VERY DIFFICULT FOR US
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FRENCH UNDERSTOOD IT AS NOT EASY, BUTNOT IMPOSSIBLE EITHER
JAPANESE WERE SAYING THIS IS ABSOLUTELYOUT OF THE QUESTION. THERES NOWAY WE
CAN AGREE TO THIS
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AN IRISH COMMUNICATION JOKE
A TOURIST APPROACHES TWO FELLOWS ANDASKS THEM HOW FAR IT IS TO THE MUSEUM.ONE RESPONDS TWOKM . THE TOURIST
THANKS HIM AND GOES OFF, THE OTHER ASKS HIM WHY DID YOU TELL
HIM THAT
THE REPLY THE POOR GUY IS WALKING
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TAKING RESPONSIBILITY
JAPANESE TO EUROPEANS - WHY DO YOUALWAYS HAVE TO GIVE EXCUSES I DID NOT
MEET THE DEAD LINE BECAUSE THE
SOFTWARE HAD BUGS, I WAS GIVEN WRONG
FIGURES,OR DATABASE HAS NOT BEEN
UPDATED..
INDIVIDUALISTIC VS GROUP
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CULTURE
SOFTWARE OF THE MIND
It is interrelated, learned and shared
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ELEMENTS OF CULTURE
LANGUAGE
VERBAL
NON-VERBAL
RELIGION VALUES AND ATTITUDES
MATERIAL ELEMENTS
AESTHETICS
EDUCATION
SOCIAL INSTITUTIONS
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CULTURE
IS PRESCRIPTIVE
SOCIALLY SHARED
FACILITATES COMMUNICATION IS LEARNED
ENDURING
Ho3 ho4
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FIXED TRUTH RELATIVE TRUTH
FIXED TRUTH THERE ARE CLEAR RIGHT AND WRONG
RELATIVE TRUTH WHAT IS RIGHT AND WRONG DEPENDS ONTHE CIRCUMSTANCE.
FIXED TRUTH NORTH AMERICANS, EUROPEANS,
AUSTRALIANS RELATIVE TRUTH EAST,SOUTH EAST AND SOUTH ASIA,
AFRICA, AROUND THE MEDITERRANEAN
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HIGH CONTEXT
VS
LOW CONTEXT
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HIGH CONTEXT - LOW CONTEXT
HIGH CONTEXT - BUSINESS RELATIONSHIPSARE COMPLICATED. THEREFORE BEDIPLOMATIC, IMPLICIT AND INDIRECT
LOW CONTEXT BUSINESS RELATIONSHIPSARE COMPLICATED. THEREFORE BE FRANK,EXPLICIT AND DIRECT
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HIGH CONTEXT
LAWYERS ARE NOT IMPORTANT
PERSONS WORD IS HIS BOND
RESPONSIBILITY FOR ORGANISATIONAL ERRORTAKEN BY HIGHEST LEVEL
POLYCHRONIC NO HURRY
COMPETITIVE BIDDING INFREQUENT
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High context cultures
Arab cultures
France
Japan Mediterranean cultures
Russia
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LOW CONTEXT
LAWYERS ARE VERY IMPORTANT
DONT RELY ON A PERSONS WORD GET IT INWRITING
RESPONSIBILITY FOR ORGANISATIONAL ERROR PUSHED TO LOWEST LEVEL
PEOPLE HAVE A PRIVATE SPACE
TIME IS MONOCHROMATIC TIME IS MONEY
NEGOTIATIONS PROCEED QUICKLY COMPETITIVE BIDDING IS COMMON
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Low-context cultures
Germany
Scandinavian cultures
Switzerland United States
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HANDLING THE HIERARCHY
IN SWEDEN THERE IS NO HIERARCHY
THE MUMBAI STORY
IN INDIA ???
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NON-VERBAL LANGUAGE
Nodding we understand it as YES
- Greece, Bulgaria and Turkey it
means NO
Thumbs up sign to us Good
- France deal is worthless
- Japan a little bribe hasbeen asked for
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Smiling In Japan people smile when they are sad,angry and confused
Earlobe pinching Brazil shows appreciation Waving In China means come here
UsingOne hand Japan pass someone an itemwith one hand , it is considered as an epitome of
rudeness.
Beckoning with an index finger- obscene inPortugal, Spain, Latin America, Japan, Indonesia and
Hong Kong. Crossing fingers rudest gesture in Paraguay
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MAKING SMALL TALK
JAPAN, ARABS GAIN TRUST
NO SMALL TALKWITH GERMANS, SWISS,SCANDINAVIANS AND FINNS
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CHOOSINGWHAT YOU SAY AND
HOW YOU SAY IT
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Individualism vs collectivism
Individualism places individual needs overcollective needs
Collectivism places collective needs aboveindividual needs
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Individualistic cultures
USA
Australia
Great Britain
Canada
France
Germany
Italy
New Zealand
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Collective Cultures
Brazil
Greece
Singapore
Hong Kong
Pakistan
Philippines
Thailand
Mexico
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Intermediate Cultures
India
Japan
Austria Israel
Spain
Argentina Iran
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VALUES AND ATTITUDES
VALUES ARE SHARED BELIEFS THAT HAVE BEENINTERNALISED BY INDIVIDUALS e.g. Japanese
raise an invisible wall against Gaijin(
foreigners)
ATTITUDES ARE EVALUATION OFALTERNATIVES BASED ON THESE VALUES e.g.
Japanese feel that buying foreign products isunpatriotic
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MANNERS AND CUSTOMS
Understanding manners and customs
Americans often interpret inaction and silence
as a negative sign
Russians have an abrasive style and it is usual for
them to come up with last minute change
requests.
Finland they may continue negotiations in the
Sauna bath.
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MANNERS AND CUSTOMS
Prepare for understanding the negotiating partysway of thinking
Pay attention to the necessity to save face Read up on the host country- history, culture,
government and image of foreigners
Recognize decision making process and the role ofpersonal relations and personalities.
Allocate sufficient time for negotiations.
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Material culture
Aesthetics
Education, social institutions ho10
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TRUST
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How Culture Affects Negotiation
InterestsAnd
Priorities
Potential forIntegrative
Agreement
Culture ANegotiator
Type ofAgreement
InterestsAnd
Priorities
Culture BNegotiator
Strategies Pattern ofInteraction
Strategies
Source : J.M. Brett, Culture and Negotiation, Intl jrl of Psy, 2000
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Take Away:
Many dimensions to approach Negotiations. He relates practical examples uniquely with
each situation.
Win-Win situation is the best negotiationpolicy.
It gives a perspective to tackle Visceral
opponents intelligently. Trust only mantra for success.
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