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The people who are most successful at business development do not commit “random acts of lunch.” For example, less successful women sales people, upon hearing that the best friend of their college roommate just became chief of procurement at a company, rush to have a chat over coffee or an impressive lunch with that person and “try to drum up some business. Let take a look at how you can 10 steps to hone in your negotiation skills
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No Random Acts of Lunch
WELCOME TO THE LAUNCH OF KCW ENTERPRISING WOMEN’S CLUB Hosted by Diane Shawe M.Ed
25th March 2014
TABLE OF CONTENTS
Contents
Agenda _____________________________________________________________________________________________________1
10 steps to hone in your negotiation skills _____________________________________________________________2
1. Do your Research _______________________________________________________________________________________3
2. Focus on your priority _________________________________________________________________________________4
3. Identifying Your Walk Away Position (WAP) _________________________________________________________5
4. Identifying Your Best Alternative to a Negotiated Agreement (BATNA) ___________________________6
5. Working Within the Zone of Possible Agreement (ZOPA) ___________________________________________7
6. Getting Everyone’s Perspective _______________________________________________________________________8
7. Developing a Sustainable Agreement? ________________________________________________________________9
8. Resolving Power Struggles __________________________________________________________________________ 10
9. Detach yourself from the outcome __________________________________________________________________ 11
10. Know your Role and Value _________________________________________________________________________ 12
Evaluation & Confirmation of Voucher ________________________________________________________________ 13
AGENDA
Page 1 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
Agenda
Welcome & Registration
About Enterprising Women
Bev Hurley Founder
No random Acts of Lunch by Diane Shawe Host
Future events
Networking
Thank you all for joining us at our launch. This is the first of many and we hope you will join us in making
future events useful, constructive and above all engaging and enjoyable.
If you would like to register for our next event or become a member of Click here if you would like to join
the KCW Linkedin group Click here To find out more about Enterprising Women and become a member
Click here
Diane Shawe
Host of KCW Enterprising Women’s Club
10 STEPS TO HONE IN YOUR NEGOTIATION SKILLS
Page 2 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
10 steps to hone in your negotiation skills
The people who are most successful at business development do not commit “random acts of lunch.”
For example, less successful women sales people, upon hearing that the best friend of their college roommate just became chief of procurement at a company, rush to have a chat over coffee or an impressive lunch with that person and “try to drum up some business.” Successful women’s sales people recognise that such “random acts of lunch” are not usually successful and therefore not a good use of utilsiing your time and the hourly costs you need to make to secure your monthly income. To achieve a successful business relationship ask, “Where am I going to focus my marketing efforts at this meeting or over the year?” and then translate your answers into a written plan.
Are you a bargainer or a Negotiator?
Negotiating is less about confrontation and aggression than it is about flexibility and
innovative thinking.
Where as bargaining can lead to lots of problems which may not result in a win-win outcome.
Although people often think that negotiating is the same as bargaining, it is not. Negotiating
is a process, and bargaining is one stage of that process. There are three other stages of
negotiating, and even those are tempered by timing, intuition, and flexibility to the
process. We are going to set out some of the real nuggets you should put in place to
establish a firm ground for all considerations.
(Adapted from Shell, Richard: Bargaining for Advantage: Negotiation Strategies for Reasonable People, Penguin, 1999)
So let’s take a look at 10 positive habits you should implement before presenting your services or product.
1. DO YOUR RESEARCH
Page 3 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
1. Do your Research
When doing research and preparing for negotiations, there are three important
considerations:
Collecting facts Knowing priorities Knowing principles
The facts that you collect are all the direct and indirect information that you will need to back
you up during negotiations. With access to information today, it is a much simpler task than
ever to accumulate all kinds of data and statistics. For example, if you are preparing to
purchase a vehicle or a house, plenty of information is available, such as comparable
properties and prices. If you are preparing to negotiate a raise, or are negotiating salary
increases at work, then comparable wage statistics, the history of the organisation and its
mission and values, previous experiences in the collective bargaining process, and strategic
plans are all important concepts to understand.
NOTES
2. FOCUS ON YOUR PRIORITY
Page 4 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
2. Focus on your priority
Knowing priorities means having a good understanding of what you want from the
negotiation. You also need to know what the other party wants. Understanding your
principles, both as a negotiator and as an individual, will help you to form and present a case
that is compelling and believable.
Understanding the principles of the other party can also be very helpful to you. A little more
research can help you to understand what the organization’s beliefs are, how they have
approached previous negotiations, what terms seem to be more important to them than
others, and what terms they could be willing to be flexible with.
NOTES
3. IDENTIFYING YOUR WALK AWAY POSITION (WAP)
Page 5 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
3. Identifying Your Walk Away Position (WAP)
When you establish your priorities, make sure you have a clear understanding of your Walk
Away Position (WAP). What is the least that you will accept (or the highest price that you are
willing to pay)? Establish your WAP value in your mind and keep it clearly available so that
you do not get caught up in the heat of negotiating, either ending up with something you
never wanted, or turning down a deal that was better than your WAP. If you are negotiating
on someone else’s behalf, make sure that you know their WAP so that you do not make any
mistakes in negotiating for them.
NOTES
4. IDENTIFYING YOUR BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT (BATNA)
Page 6 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
4. Identifying Your Best Alternative to a Negotiated Agreement (BATNA)
In addition to your WAP, you also need a Best Alternative to a Negotiated Agreement (BATNA)
in your plan. Sometimes an issue can be settled before the bargaining phase begins if it meets
your criteria as a BATNA. For example, if you are planning to purchase a home – which is
often a very emotional decision – and the realtor comes to you with an offer that you can live
with, and you get the home you want without having to participate in any heavy bargaining or
entering into a price war, then you may have reached your BATNA. Not all negotiations have
to be bargained; sometimes, when you negotiate, you can lose the opportunity to get what
might have been a BATNA if you had not been after such a bargain.
NOTES
5. WORKING WITHIN THE ZONE OF POSSIBLE AGREEMENT (ZOPA)
Page 7 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
5. Working Within the Zone of Possible Agreement (ZOPA)
The Zone of Possible Agreement (ZOPA) is an area
of overlap where the desired outcomes of both
parties reside, and where both parties can live
with the outcome. Once you reach a ZOPA, the
finer details need to be worked out within the
scope of what both parties have already found is
potentially working for them. For example, if your
business forecasting allows for a 2% salary
increase each year for the next three years, and
similar companies in your industry are offering
the same, and the union is asking for 7% over four
years, then you may be within the ZOPA.
In general, there are three possible outcomes to a
negotiation.
Lose-Lose Win-Lose Win-Win
NOTES
6. GETTING EVERYONE’S PERSPECTIVE
Page 8 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
6. Getting Everyone’s Perspective
Gathering perspective is something that can take place throughout the negotiation process. It
begins in the research phase, where the negotiator considers the needs of the members of an
organization in conjunction with the strategic vision and mission of the negotiation. This does
not mean that everyone will get what they want in an agreement; rather, it means that all
points of view are considered. There is no point in entering negotiations and reaching an
agreement that ignores a section of stakeholders or breaks the law.
Gathering perspective can be a considerable undertaking, depending on the size and scope of
the operation. This is one area where outside resources can be utilized (an outside firm
conducting employee satisfaction surveys, for example).
NOTES
7. DEVELOPING A SUSTAINABLE AGREEMENT?
Page 9 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
7. Developing a Sustainable Agreement?
In this age of complex life and work arrangements, a sustainable agreement can be said to
reflect the reality of the business. An agreement cannot be a rigid reflection of ineffective
negotiations; rather, it must reflect the reality of business and economic cycles, industries,
and real issues that people face. It must also reflect the multiple aspects of the stakeholders
who both provide input, and are affected by the results. An agreement also cannot focus on
one aspect of the business when the business impacts other industries, cultures, or linguistic
groups.
In developing a sustainable agreement, the partners must ensure that, first of all, the
organizations that they negotiate on behalf of are interested in having an agreement.
Partners must also ensure that negotiating organizations will enforce and take part in the
terms of that agreement. If the agreement cannot stand on its own, and the parties who sign
it refuse to use it, then the paper it is printed on is useless.
A sustainable agreement really does incorporate feedback from all stakeholders. Although we
will never always agree with other people, and although we can write an agreement much
more quickly than we can negotiate the terms of one, an agreement is just that, an
agreement.
NOTES
8. RESOLVING POWER STRUGGLES
Page 10 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
8. Resolving Power Struggles
Negotiating has a lot to do with power. You may find yourself drawn into a compelling
conversation that becomes a struggle for power between you and your counterpart. You will
have to remind yourself that the negotiation is a process and what your priorities are. The
outcome is not personal, and you needn’t get drawn into a power struggle. If you notice that
the tone of conversation changes and a power struggle is taking place, one very fast way to
disarm it is to take responsibility for it.
You can try a statement like the following:
“Do you mind if we pause for a few moments? I can feel myself taking your last few
statements personally and I can feel my heels digging in. Please accept my apologies. Do you
mind if we take a short break, and then we can go over this point again once I have had a
chance to clear my mind. Perhaps we can try to approach it from a different angle?”
You do not have to mention that you feel the conversation becoming a power struggle. Simply
acknowledge the change in tone within the meeting, and then take a moment to collect
yourself and regain composure as you move forward. In most cases, the break you put into
the conversation may be enough for your partner to also review their approach and consider
an alternative.
NOTES
9. DETACH YOURSELF FROM THE OUTCOME
Page 11 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
9. Detach yourself from the outcome
The outcome of this negotiation is not about you personally. If your side wins or loses, you do
not become a winner or loser. Very few negotiations actually involve life or death issues. Keep
your feet squarely on the ground by realizing that, as a negotiator, your job is to lead people
through a process, not to win. Try to think of it in terms of four potential outcomes.
1. The two of you do not reach an agreement, and the negotiation ends. 2. Your counterpart will agree to your terms. 3. You will agree to your counterpart’s terms. 4. The two of you will compromise on some point in between your positions, perhaps closer
to your terms and perhaps not.
In some situations, you have the potential to reach the agreement that you wanted. In other
outcomes, both parties may leave unsatisfied. Sometimes not reaching an agreement is the
best outcome. (You walk away from a deal with your bank account or integrity intact.) At
other times, it is the worst arrangement. (Now, how will you get someone out to fix the
service elevator by Friday?)
NOTES
10. KNOW YOUR ROLE AND VALUE
Page 12 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
10. Know your Role and Value
Creating and claiming value are at the heart of the negotiating process. Creating value means
that we can develop effective and creative solutions that meet the needs of everyone
involved in the negotiation. In negotiation terms, this is commonly known as “expanding the
pie.” Claiming value refers to the size of the piece of the pie we receive as a result of
negotiation. Many negotiators can do a good job at either creating or claiming value, but not
both. Master negotiators do an excellent job of striking this balance by having a good
understanding of the interests of both parties, and by identifying common ground, rather
than simply aiming for a target and not allowing for any flexibility.
When you are negotiating, check your personal baggage at the door. Think of the things that
might be on your mind as you prepare for negotiations.
NOTES
EVALUATION & CONFIRMATION OF VOUCHER
Page 13 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
Evaluation & Confirmation of Voucher
Name………………………………………………………………………………………………………………………………………..
Contact Details………………………………………………………………………………………………………………………….
Email………………………………………………………………………………………………………………………………………..
Company Name…………………………………………………………………………………………………………………………
Please tell us how you found the event
Please tell us about any ideas for topic you might have on future events
Please would you make a recommendation or testimonial>
May we use your testimonial on our website yes [ ] no [ ]
Signature……………………………………………………………………… Dated………………………………………………………
ABOUT DIANE SHAWE M.ED
Page 14 Academy of Vocational & Professional Training Ltd – 0203 551 2621 [email protected]
About Diane Shawe M.Ed
KENSINGTON, CHELSEA & WESTMINSTER BUSINESS CLUB
Contact the host: [email protected]
Enterprising Women are proud to announce that we have launched a new
business club in Kensington, Chelsea Westminster. If you have a business
in the area, please register to find out the latest information about joining
us at this exciting event.
Host, Diane Shawe, kindly welcomes all women to come along and be a
part of something unique!
"We are living in exciting times with lots of changes and opportunity. Applying crucial
relationship building tactics and maintaining those relations is a skill. To gain consistency in
business failure to persist and be responsive does not help to manage expectations, so I hope
that this group will be more than support and entertainment. I will strive to make sure that our
club is effective, constructive and dynamic."
Kensington, Chelsea & Westminster Business Club is about you. We will draw on the
expertise of existing clubs around the country, but look forward to evolving the Club to meet
the needs of its members, whether you have decades or months of experience and whatever
sector your business is in. Women make an important contribution to business in the region
and to the region’s economic future and having a community in which this can be celebrated
and nurtured will further strengthen this contribution.
As a founder and CEO of two successful Training Companies based in London and
Luxembourg I have built the company from a standing start in 2003 to a globally recognised
training provider with an impressive year on year growth. I have a wealth of knowledge and
experience across multi-disciplines that could be applied to other organisations in a non-
executive role.
As well as taking an active role across all areas of my businesses I am also committed to a
number of prestigious and influential Committees and Memberships.
Diane Shawe
