Upload
phammien
View
229
Download
0
Embed Size (px)
Citation preview
ACC Europe 20th Annual Conference:
Negotiation Styles and Techniques Presented by Eric Evans
Eric Evans
Introduction to the session (10 minutes)
Introduction to the Exercise (5 minutes)
Planning Time (10 minutes)
The Negotiation (20 minutes)
Results (5 minutes)
De-Brief & Discussion (40 minutes)
Session Objectives:
“Negotiation is a key requirement
for survival, let alone success; this
interactive workshop is targeted at
the experienced negotiator, with the
intention to challenge and to build
upon our skills”
The intention is to cover:
• Positional v Collaborative
negotiation
• Planning and Preparation
• Key Skills
• Effective behaviours
• Roles, rules and tactics
Negotiation Styles and Techniques: Dealing With Confrontation and Avoiding Common Pitfalls
Session Structure
A simple game of cards
Instructions
You should be sitting at a table with a total of 10 people. Please organise yourselves into 4 teams of 2 or 3 people at each table.
Each team should have an envelope containing 12 or 13 playing cards. Some times will have 12 cards and some will have 13. This is your opening “hand”.
Introduction
The objective of this exercise is to make as much money as possible. You will do this by buying, selling or exchanging cards with the other teams until you have achieved your objective.
You should be aware that two random cards have been removed from the pack of cards.
Each team starts off with €500 which can be used to buy cards from other teams. Cards are worth whatever teams agree they are worth when negotiating to buy or sell
Scoring
A run of 12 cards in sequence from a low number to a high number, all of the same suit will earn your team €1,000.
A run of 12 cards in sequence from a low number to a high number, all of the same colour (that is hearts and diamonds, or spades and clubs) will earn your team €600
Four of a kind (that is three Kings or four 3’s etc) will earn your team €400
Three of a kind (that is four Kings or four 3’s etc) will earn your team €100
A 4 is a lucky card, and you score €50 for every 4 in you hand. (If you have some of the other point scoring combinations including a 4, then this is an additional score)
Rules
The exercise for the four teams at a table is over after 20 minutes or the minute any team at a table declares it has finished. Tables may therefore finish at different times.
3
What makes a good negotiator?
Decide which of the following attributes from the list provided against each of the headings, makes for the “best” strategic negotiator. Select one
of the options for each question.
A. The Goal
1. Believes in winning at all costs
2. Believes the relationship is more important than winning
3. If, somewhere between 1. and 2. then use your own words to articulate the position the “best” negotiator might take.
4. Something else. Use your own words to describe the goal from a negotiation.
B. The Relationship
1. A constraint which prevents us from maximising our leverage
2. A means to an end
3. A by product of the negotiation
4. An asset
C. The Approach
1. Leverage is central to good negotiation practice
2. Compromise is essentially at the heart of negotiation
3. Everything is tradeable, and negotiation is about looking for trades
4. There is something else which works better. (Say what it is)
D. Taking Positions
1. It is important to take an extreme position so that you give yourself bargaining room
2. It is better to go in with an honest position rather than an exaggerated one
3. Taking positions in negotiation is less than optimum
4. It is more important to think through the opponent’s likely position
E. Pressure
1. The world is a high-pressure environment, and negotiators need to be able to apply pressure
2. Pressure is unpleasant and can damage a relationship
3. You cannot avoid putting pressure on people in negotiation
4. Something else
F. Planning
1. Successful negotiators spend longer planning for a negotiation than average negotiators
2. Successful negotiators typically spend the same amount of time planning as average negotiators
3. You can’t really plan a negotiation
4. Having a structure to use when planning for a negotiation is important
4
What is negotiation?
• Screw or be screwed?
• A battle of wills?
• Convincing the other guy it’s a good deal?
• Psychological warfare?
• Compromise?
• Being “fair”?
• Both sides getting a good deal?
• The application of power?
• Getting your own way?
• Trading concessions?
• Haggling?
• Genuine problem solving?
5
Is there a “right” stance?
6
Uncooperative Co-operative
Assertive
Unassertive
A
Avoiding
B
Benevolent
C
Compromising
D
Duelling
E
Engaging
Recognising the possible approaches
Win / Lose Psychological
Warfare
Win / Perceived
Win
Win / Win,
Principled or
AGILE
Trading Compromise Abdication
Features Demands
Power
Leverage
Control
Weaknesses
Empathy
Conditioning
Trading
Self focus
Genuine
interests &
Options
High gain /
Low cost
Fairness
Still friends
Naivety
Discomfort
The Goal Win at all costs Win with smart
moves
Win but other
also “feels”
good
A wise outcome To win by
swapping
To reach
agreement and
keep the
relationship
To avoid having
to negotiate
Relationships Of no
consequence
Something that
can be dealt
with separately
A means to an
end
Should be an
asset
Should be
maintained
The end not the
means
The end is not
important
View of
Pressure
Figures strongly
in the gameplan
Sources of
pressure are
key
To be expected
as conditioning
Pressure on the
problem, not the
people
Needed to
generate
movement
Unpleasant Unnecessary
Consequences Short term gain
only
Resentment at
games and
approach
May lead to loss
of credibility
Enhances
relationship
Moves into
games and
exaggeration
Encourages
opponent to dig
in
Lost
opportunities
Planning focus Power
leverage
Linkages
Persuasion
Tradeables
Common
ground
The AGILE
model
Creativity
Trade offs Own
weaknesses,
other’s
strengths
Skills required Insensitivity Strong
character
High order
interpersonal
skills
Strong planning
ethic
Empathy
Intellectual
maturity
Strategic
thinking
Understanding
of relative
values
None None
7
Win / Win is much misunderstood
8
Position Position COMPETITIVE
It is common for people to take positions
when negotiating, and this leads to a “game”
and reduces the chances of a real win / win.
Genuine
Interests
Genuine
Interests
COLLABORATIVE
For a true win / win, there is a need for an
understanding of each party’s genuine
interests.
Where this is accompanied by trust and a
willingness to look for creative solutions, there
is a much greater chance of win / win
Consider the example of:
• The two sisters and the orange
Neil Rackham research
Neil Rackham was the founder of the Huthwaite Research Group who have conducted significant research programmes into why some people are better than others in areas such as chairing meetings, negotiation, selling and presenting.
Rackham looked at two groups of negotiators (average and successful) and observed the differences between these two groups in terms of both planning and face to face behaviour.
Successful negotiators where described as successful on three criteria: They were widely regarded by their peers, colleagues and
opponents as being good negotiators;
They got better results in comparable situations than their colleagues in the average group
The deals stood the test of time 9
Planning
There are conflicting views on the significance of planning in negotiation.
Dr Brian Farrington – a Procurement Guru has suggested that for every hour you are to negotiate, you need to spend between 5 and 8 hours planning.
10
Neil Rackham has looked at how successful negotiators differ from average negotiators and suggests that the difference is not how much time is spent, but how effectively the time is used. Which is right? Most negotiating practitioners would suggest that spending 1 day planning for a 1 hour negotiation is simply not possible, simply because of the day to day resource pressures we all face. However for complex negotiations Brian Farrington is almost certainly correct. Neil Rackham’s view is also likely to be correct in that no matter how much time you have available for negotiation planning, the key must be how effectively you use that time
The Neil Rackham view (supplemented by some additional research from others)
It is how you use time, not how much time which counts
Exploration of options is key
Common ground builds bridges
Long term perspective reduces tension
A range of objectives is preferable
Consider your BATNA and theirs
Playing devil’s advocate is critical
The Zone of Possible Agreement (ZOPA)
Linkages and tradeables
The opening you will go with
Listing key questions to ask
Immediate review of a completed negotiation
11 This is so important that we should look at each of these in more detail
Common ground and long term
perspective
12
Recipe for an argument Recipe for a good outcome
Two parties negotiating against each other across a table.
Two parties negotiating together to work out how best to resolve a problem
Exploration of options
The average negotiator identifies 2.6 possible solutions for each negotiable issue.
The successful negotiator considers twice as many options in the planning stage
If the first 2.6 options are not acceptable to the opponent, the negotiation is unresolved, but the successful negotiator has more chance of reaching agreement
What does this mean for you? Most negotiators identify 1 or 2 possible
solutions to any issue which is to be discussed, but the most successful guys spend a lot longer working through possible options.
Lancashire Co-Op buyers have identified 120 possible concessions they could ask suppliers for. This means that if they can’t reach agreement through one particular route, they can use 119 possible alternatives to get agreement, some of which may be lost cost trade-ables for the supplier
How good are you at creating possible options in the planning stage.
13
Common ground and long term
perspective
1. A successful negotiator puts time into building up the common ground, time into painting a long term view and actually plays down the problem. The focus is on this is not a big problem if viewed in the right perspective
2. An average negotiator invest less time in common ground and the long term view and consequently the problem is much more clearly identified from each party’s perspective as a big issue
What does this mean for you? When planning a negotiation it makes
sense to consider building bridges of agreement and framing the negotiation in the longer term
14
Negotiation with common ground and long term perspective
No common ground or long term perspective
Common ground Long term view
The problem
The problem
Typical Planning Template
Issues MDO Source of
Legitimacy
LAA Their
Opening
Their Likely
LAA
Compelling
reason for
them to
move?
Our
opening on
this issue
Actions to
strengthen
our
position
Step in rights
Liability for
Reputational
Damage
Termination
for
Convenience
Innovation
Fund
In addition to completing this analysis by issue, it is also important to have a BATNA (Best
Alternative to a Negotiated Agreement)
Research findings on why negotiations
fail
Questions
The quantity or quality of questions is inadequate to give the negotiator information, understanding, time to think or control
Listening
The negotiator hears what we wants to hear or what he expects to hear rather than what is actually said, or the way it is said, or the message behind what is said
Answers
The negotiator answers a question without considering the implications of giving the answer
Talk too much
Information is gratuitously given away, or a position is unnecessarily conceded
Words
Words are used without consideration. (Words need to be chosen for their impact, not their meaning)
Looking
The negotiator misses non-verbal signals
16
More failure findings
Easily satisfied
The negotiator finds a solution and then stops rather than searches for others, or considers those put forward by the opponent
Assumptions
The negotiator makes assumptions without testing them at an early stage of the negotiation
Like to be liked
We do not wish to cause offence or embarrassment and therefore we do not take an aspirational position, or we concede too easily or too quickly, or we go are too oblique in asking for concessions
Predictability
We stick with one approach to negotiation to the point where we are predictable, and therefore easy to deal with
Emotion
We allow our emotions to control us instead of using appropriate emotions to influence an outcome
Attention Span
The average attention span is 20 minutes after which we miss opportunities 17
Team failings
Lack of a conduit Team members interrupt each other and vie for air
time, often resulting in the wrong person answering a question, or two different answers being given to the same question
Goldfish Team members sit there without contributing and there
is a risk that if drawn into the negotiation, they will not be able to add value. Please note that this is not the same as deliberately sitting there and not actively taking part (which could be a valid strategy)
Drifting In spite of the existence of an agenda and a team plan,
the discussion is allowed to drift as personal hobby horses are let loose
Jaw Jealousy One or more team members feel the need to dominate
the conversation
Hospital Passes A question is passed to a team mate who is
unprepared to deal with it
Group Think The team make it clear that they do not have a position
on a particular issue, or an answer to a particular question
Style and Substance Clash There is an apparent tension between members of the
team
18
What makes a good negotiator?
Suggested answers
A. The Goal
1. Believes in winning at all costs
2. Believes the relationship is more important than winning
3. If, somewhere between 1. and 2. then use your own words to articulate the position the “best” negotiator might take.
4. Something else. Use your own words to describe the goal from a negotiation. – Believes in a wise outcome
B. The Relationship
1. A constraint which prevents us from maximising our leverage
2. A means to an end
3. A by product of the negotiation
4. An asset
C. The Approach
1. Leverage is central to good negotiation practice
2. Compromise is essentially at the heart of negotiation
3. Everything is tradeable, and negotiation is about looking for trades
4. There is something else which works better. (Say what it is) - Empathy
D. Taking Positions
1. It is important to take an extreme position so that you give yourself bargaining room
2. It is better to go in with an honest position rather than an exaggerated one
3. Taking positions in negotiation is less than optimum
4. It is more important to think through the opponent’s likely position
E. Pressure
1. The world is a high-pressure environment, and negotiators need to be able to apply pressure
2. Pressure is unpleasant and can damage a relationship
3. You cannot avoid putting pressure on people in negotiation
4. Something else. Successful negotiators are hard on the problem and soft on the people
F. Planning
1. Successful negotiators spend longer planning for a negotiation than average negotiators
2. Successful negotiators typically spend the same amount of time planning as average negotiators
3. You can’t really plan a negotiation
4. Having a structure to use when planning for a negotiation is important
19
The Negotiation Profile
A self assessment tool designed to help you
understand your negotiating strengths and your
development opportunities
The software is available on request by sending an
email to [email protected] with “Negotiation Profile”
in the heading
Instructions
You will receive a MS Excel spreadsheet. The
document contains descriptions of key negotiation
elements against four different levels of competence -
accomplished (4), practitioner (3), aware (2) and
innocent (1).
Enter the number which is closest to how you regard
yourself against each element into the spreadsheet.
A chart such as those shown on the next four slides will
then be produced automatically. This is your
negotiation profile and should help you to identify the
broad areas where improvement is possible and
desirable.
21
Negotiation profile: example 1
22
0
0.5
1
1.5
2
2.5
3
3.5
4
BATNA
InterestsOptions
Legitimacy
Relationship
Communications
Commitment
Vivid opening
Common purpose
Agenda
Question cycle
Testing understanding
Summaries
Conducive openingEmotional control
Suitable language
SensitivityReceptivity
Use of body language
Feelings commentary
Focus
Creativity
Persuasion
Pow er
Conditioning
Use of time
Mindset
Understanding
BehaviourStrategy Planning
Control
Relationship
Achievement
Approach
Negotiation profile: example 2
0
0.5
1
1.5
2
2.5
3
3.5
4
BATNA
InterestsOptions
Legitimacy
Relationship
Communications
Commitment
Vivid opening
Common purpose
Agenda
Question cycle
Testing understanding
Summaries
Conducive openingEmotional control
Suitable language
SensitivityReceptivity
Use of body language
Feelings commentary
Focus
Creativity
Persuasion
Pow er
Conditioning
Use of time
Mindset
Understanding
BehaviourStrategy
Planning
Control
Relationship
Achievement
Approach
23
Negotiation profile: example 3
0
0.5
1
1.5
2
2.5
3
3.5
4
BATNA
InterestsOptions
Legitimacy
Relationship
Communications
Commitment
Vivid opening
Common purpose
Agenda
Question cycle
Testing understanding
Summaries
Conducive openingEmotional control
Suitable language
SensitivityReceptivity
Use of body language
Feelings commentary
Focus
Creativity
Persuasion
Pow er
Conditioning
Use of time
Mindset
Understanding
BehaviourStrategy
Planning
Control
Relationship
Achievement
Approach
24
Negotiation profile: example 4
0
0.5
1
1.5
2
2.5
3
3.5
4
BATNA
InterestsOptions
Legitimacy
Relationship
Communications
Commitment
Vivid opening
Common purpose
Agenda
Question cycle
Testing understanding
Summaries
Conducive openingEmotional control
Suitable language
SensitivityReceptivity
Use of body language
Feelings commentary
Focus
Creativity
Persuasion
Pow er
Conditioning
Use of time
Mindset
Understanding
BehaviourStrategy
Planning
Control
Relationship
Achievement
Approach
25
Reading list
The ability to negotiate is a critical skill in business and our personal lives. For those who wish to negotiate professionally and capably there is a need to take the subject seriously. This list of books referred to throughout the text is intended to assist the reader to continue to develop the skills of negotiation.
Getting to Yes Fisher & Ury Arrow Books
Getting Past No William Ury Business Books
The Power of a Positive No William Ury Hodder & Stoughton
Getting Ready to Negotiate Fisher & Ertel Penguin (Not available in the UK)
The First Move: A negotiator’s companion Lempereur & Colson Wiley
Negotiating Globally Jeanne M Brett Jossey Bass
The Mind and Heart of the Negotiator Leigh Thompson prentice Hall
Negotiating Rationally Bazerman & Neale MacMillan
Face to Face Skills Peter Honey Gower
The Expression of Emotion in Animals and Man Charles Darwin
The Psychology of Interpersonal Behaviour Michael Argyle
Body Language Alan Pease Sheldon Press
The Art & Science of Negotiation Howard Raiffa Harvard University Press
When Cultures Collide Richard D Lewis Nicholas Brealey International
Negotiation Genius Malhotra & Bazerman Harvard Business School
26