ART_OF_NEGOTIATIONS

8/13/2019 ART_OF_NEGOTIATIONS

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NEGOTIATION


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Outline

1. WHY STUDY NEGOTIATIONTECHNIQUES?

2. DEFINITIONS

3. THE NEGOTIATION PROCESS4. NEGOTIATION FUNDAMENTALS

5. CONCLUSION


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PEOPLE ARE NOT TRAINED TONEGOTIATE, WE LIKE TO TAKE

CONTROL OF OTHER PEOPLE.

THAT WORKS USUALLY IN MOST OFTHE COMPANIES, BUT THIS IS NOT

THE CASE IF WORKING WITH OTHER

PEOPLE OR COMPANIES.

NEGOTIATION SKILLS ARE

ESSENTIAL TO A GOOD LEADER/

MANAGER

Why study negotiation techniques?


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After this SESSION,

one should be ready to:

Prepare negotiations.

Negotiate, considering major side-

factors.

Learning objectives


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Negotiation It is a form of communication known

as persuasive communication. In a

word, bargaining.

Persuasive communication is aboutgetting what you want.

Negotiation is about getting the bestpossible deal: that is getting whatyou want in the best possible way.


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Difference between negotiation&

mediation

NEGOTIATION

Try to reach an agreement or

compromise by discussion with

others.

Find a way over or through an

obstacle or difficult path.


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POWER TO INFLUENCE There is one additional

source of power, one of major

significance: confidence. If others believe they are

dealing with someone

confident, competent,organized and efficient then

they may be less certain of

their own position.


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Confidence comes from preparation, a

structured approach, knowledge, andbelief. Convince yourself of your confidence

and you will convince them that you

are a power to be reckoned with.


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IDENTIFYING NEGOTIATION GOALS

What do I want to achieve?

Is this a realistic goal?

What does the other party want to achieve?

Do we have anything in common?

What is my minimum result?

What can I concede?


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I bought a dog

Oh, really? A large one? No, not so very big.

Is he long hairy? No, short hair.

And, what kind of colour? Black/white spotted

What a nice dog! Yes, is he?

Do you have the

same image.

I bought a dog





Do you have the

same image.

I bought a dog





Do you have the

same image.

I bought a dog





Do you have the

same image.

I bought a dog

Oh, really? A large one? No, not so big.




Do you have the

same image.


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Preparing Set Clear Objectives

Identify the other persons needs

Identify negotiation elements.

(Variables)

Decide on concession and their value.

(Put a cost against everything you may

have to trade). Prepare your stances.

Prepare to meet.


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PREPARING FOR NEGOTIATIONS

Who am I dealing with?

Learn about their:

Positions

Interests

Perspectives

Perceptions Assumptions

Expectations

Values

CULTURALDIVERSITIES


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iceberg theory

above water:RATIO

verbal

WHATyou say:15 %

below water:

EMOTION

non verbal

Howyou mean:

85 %


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ZOPA=

ZoneOfPossibleAgreement.

The ZOPA includes the criteria both sides to a

dispute can agree upon, and that is sufficient

to produce a settlement of the dispute

BATNA =

BestAlternativeToa NegotiatedAgreement. The BATNA is the walk away

position, or what you are not willing to give

up

Definitions/Types of Negotiations


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2. NEGOTIATION PHASE

During the negotiation phase the parties employ one oftwo bargaining techniques

Distributivebargaining where one side wins, oneside looses. Typically involves manipulation andwithholding information Example: Negotiating forland.

Integrativebargaining where both sides win. Thistype of bargaining is characterized by the creation ofmutual trust based on a positive relationship andshared interests which make allow for a satisfactoryZOPA

The Negotiation Process


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Actual Negotiation

The opening talks.

Icebreaking:be patient;

remember the customary salutations and exchangesof courtesies (in accordance with the local habit);

introduce yourself and your team;outline the framework of the meeting;

some introductory small talk may be useful and polite(gives everybody a chance to get used to the way thecommon language is used and it offers a chance toassess the mood); and

offer/take refreshments.


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The main talksif possible let your counterpart start, listen to him, do notinterrupt;

start with agreement on the agenda;

if incorrect information is given, state the actual facts

(supported by evidence), but do not argue;state your companys point of view (facts only);

if there are differences in points of view, note the view of the

counterpart and highlight the point of view of the opposite

side.

Actual Negotiation


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Trading Concessions Never give a concession, trade it

reluctantly.

Build up the value and significance ofanything you offer to trade.

Reduce the value that the other partyputs on anything offered to you.


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Make no promisesor admissions, unless the

situation or your mandate clearly states youcan do so.

Do not reveal everything about your

proposal that could be exploited by the other

party. To be impartial and correctare of the

greatest importance;

Always be restrained if one of the parties

expresses a negative view about you, or yourproposal.

Actual Negotiation


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Make careful reminders about agreements,

actual arrangements and past practices;

Complete the negotiation by repeating what

has been agreed upon, if possible have itconfirmed in writing;

Agree upon a time and place for further

negotiations;

Do not forget final polite phrases, etc.

Be focused.

Actual Negotiation


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Be focused on the topic and your mission!

Actual Negotiation


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1.

Be able to recognize a negotiation

situation

Ten Negotiation Fundamentals


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2.

Plan and have a concrete strategy. Be

clear on what is important to you andwhy it is important



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3.

Know your BATNA

(BestAlternativeToa NegotiatedAgreement)



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4.

Separate people from the problem



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5.

Focus on interests not positions



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6.

Pay attention to the flow of the

negotiation (display results obtainedso far)



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7.

Take the intangibles into account;

communicate carefully



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8.

Use Active Speaking/Listening skills;

rephrase, ask questions and then asksome more



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9.

Create options for mutual gain (WIN

WIN)



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Negotiation is an art not a science

Experience is the best teacher

Personal study and reflection on your

negotiation experiences will make you a

more effective negotiator.

Conclusion


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EVERYTHING ISNEGOTIABLE EVERYONEIS A NEGOTIATOR

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