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Today we experience difficulty in negotiating perhaps because there is a clear lack of interaction between humans based on :knowing each other, negotiating our positions, defending our point of view, fighting for our needs and wants, in the end, being able to sort out in a decent manner potential conflicts in the making.

The thrill of negotiating

Bachelor 3

Advancia Business School - ParisAcademic Year 2011 – 2012

Folgore Eugenio PozzoliniFellow

September 2011

© Folgore Eugenio Pozzolini 2011

(tiny parts of this presentation may be Copyrights of other Authors)

This is an Open Source document, hence free.

However be kind to contact me at pozzolini@aol.com before using any part of it.

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A thank you to

My father, who negotiated his survival during WW 2 as a freedom fighter

To some of my students in 2009 and 2010 who have been an integral part of this course and without whom

I could not have tailored and refined the course to the level of today

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To get, you, through the description of the sequence of actions which will take place in conducting a negotiation and negotiating, to understand the meaning, value and effort – as well as skills – required in order to negotiate.

Objective of the course

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My thinking in giving this course

The nefarious habit/influence of the use via internet of Google and Wikipedia and Facebook and Second life and Video games to the extreme, is pushing human begins to insulate more and more shielding themselves from the unknown challenges coming from the outside world by not verbally exchanging & confronting different point of views with the Other .

Today we experience difficulty in negotiating perhaps because there is a clear lack of interaction between humans based on knowing each other, negotiating our positions, defending our point of view, fighting for our needs and wants, in the end, being able to sort out in a decent manner potential conflicts in the making, face to faceface to face.

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I have some doubts about they validity of the 3 Winners scenarios, the so-called slangish Win Win Win, because in any given situation there is going to be - in any case - a larger WinnerWinner than others , a smaller one if not one or more...LosersLosers!

Today’s urban mythology that all is beautifulbeautiful, that we live in a world of all winnersall winners, is pernicious and misleading. Dangerous in the least.

World as it was, is and will be, is a world of latent conflicts, problems, issues, which can and should be confronted one on one , person to person, head to head, eye to eye with all the preparation, determination and attention that we can muster and manage.

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Key Words

Preparation,

Determination

Attention that we can muster and manage.

We can’t run away from negotiating in our every day life.

There in no place to hide except returning in your mother’s womb!

I have no pretence of teaching you what is defined - by some - as the Art of Negotiation, because I do not believe that it exists, if not in rare, very rare cases, where we have a Leonardo or a Michelangelo of negotiation in action.

They are as rare as the Mona Lisa or the Pietà in the Vatican

I firmly believe that we can all negotiate because every day we negotiate our life.

What is required is skills, preparation, knowledge, savoir faire (know how) matured through experience, a lot of hands-on experience.

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Key Words

Skills, Preparation, Knowledge, Savoir faire (Know-how)

Experience, lots of hands-on experience.

Clicks do not build Bricks.

Bricks are built by negotiating with life, not in a baby-world of « Eldorado » or video game scenarios where war is won at the Microsoft Table in 3 D, no blood spilled, no pain but always in the end :gain.

Now, is that conceivable? Gain without pain ? Without negotiation?

Thank you for your attention to my lesson

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Some hints, advices and tips

Qualities of a negotiatorFields of negotiationA sample of types of negotiationWhat not to bring to the negotiation tableWinners in a business negotiationThe myth of www vs. the reality of WwW or WL

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Qualities of a one-in-class negotiator

my definition

PreparationFacts & Figures at the “tip-of-your-fingers”

Determine for yourself –before acting - what you will doWhen acting, stick closely to what you determined you

would doFlexibility

AdaptabilityCredibilityReliability

Punch (not the digestive!)Never expect……always INSPECT

Checking , double checking Facts & Figures 12

Qualities of a negotiator straight from the mouth of a one-in-class negotiator (*)

ListeningListeningListening

(*) Mr. Eric Pernette -Head of Industrial Relations ERDF

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A word of advise a junior negotiator

Follow the leader, « carry his bag », enter the « big boys club » and become part of a negotiation session as

a listener

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A sample of types of negotiations

Commercial agreements (buy & sell)Service contracts

PartnershipsJoint ventures

Mergers and AcquisitionsIndustrial relations with Trade Unions

A political agreementYour kids demands

Your salary !Everything and Anything that is negotiable

keeping in mind that Anything & Everything is negotiable

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What imperatively you must not bring to the negotiation table

Lack of IntegrityUlterior motivesHidden AgendaLack of good faithFalse information or data

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Winners in a business negotiationYour Company, You, the Other Company

(by order of importance)

Main Your company (*)

Secondary Your company and you Possible Both companies and you

(*) They pay you !!!17

First part

Substance

The beef !!!

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Keep in mind the following

You are the center of your negotiating world.

Be one in class in class when you negotiate.

Those who dare to dare, sort out inventive SOLUTIONSSOLUTIONS, are pragmatic and at the same time able to act in a non-pragmatic fashion if so called for, contribute brilliant SOLUTIONSSOLUTIONS, are motivated by the aim of reaching a WinWinWin agreement, create SOLUTIONSSOLUTIONS before the manifestation of the problem, are ,in my view & professional experience, valid negotiators.

Key words dare to dare, sort out, contribute, create.

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Si vis pacem para bellum(Prevent by beign ready)

To negotiate you must master and muster

Points (Infos)Figures (Data & Numbers)

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Preparation

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To negotiate you must master and muster steps and process

What are the steps that you have to follow in order to determine what Data and Info you are should be looking for ?

How and where do you scout for, search, identify InfoData ?

How do you select, collect, vet/sift through, evaluate and process InfoData which is pertinent to your assignment ?

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Steps that you should follow in order to determine what Info and Data you are looking for

1. Write down what you understand you understand the Goal of your Team in fullfilling the assignment (the mission) is

2. Write down what you understandyou understand the Objectives your Team must reach to fullfill the Goal

3. Write down what you understand you understand your Targets are to reach the Objectives4. Compare with your Team your definition of Targets , understanding of Team

Objectives and Goal of the assigment (the mission)5. Define, agree, finalize your Team’s Objectives and each Team member’s

assigned Targets6. Engage with your Team the other Team(s) on the definition of the Goal of the

Negotiation process, define with them (the Teams) a flexible structured timeline, deadlines, milestones, gate reviews, intermediate check points

7. All Teams present to me (I play the Broker/Project Supervisor roleI play the Broker/Project Supervisor role), the commonly agreed upon plan of action plan of action process process timelinetimeline

for the Negotiation Project23

How and where do you scout for, search and identify InfoData

How to validate the processMy personal receipt is to start scouting according to : Compilor’s background, skills, experience and quality of InfoData produced

(the pedigree and the output) Independence or eventual ties of the Compilor to the Source of the InfoData

(conflict of interest) Coverage of topics by Compilor Partial, Global, Detailed, Asymmetrical Credibility of InfoData Is it true ? How can I find out ? Reliability of InfoData Is it up-to-date ? Accuracy of InfoData Is it right ? Where and from Whom can I find

out ? Capability of verifying the credibility, reliability and accuracy of InfoData by

crisscrossing other Sources and verifying other Compilors

Where to conduct the processToday’s users favorites are : Wikipedia, 维基百科 ,Badu Baike, Baidu, Hudong,

Google,Yahoo, Bing, the WEB, Social forums

My favorites are : books to acquire, newspapers to inform, Wikipedia to source & toinspire , the WEB to find and channel, word of mouth to comment

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Keeping in mind the quality of what you may find as well as the limits of what you may be allowed to

find datamining search engines (Two examples are hereby listed )

A. The user who visits Wikipedia to learn about some subject, to confirm some matter of fact, is rather in the position of a visitor to a public restroom. It may be obviously dirty, so that he knows to exercise great care, or it may seem fairly clean, so that he may be lulled into a false sense of security. What he certainly does not know is who has used the facilities before him.

Robert McHenry, former Encyclopædia Britannica editor-in-chief

B. Articles or comments containing the following types of content are removed in some countries: Pornographic or violent text or images "Malicious evaluation" of the current national system Undermine public regulation Attacks on government institutions and officials Instigating racial, ethical, religion or regional issues Propagating "religious cults or feudalistic and superstitious beliefs" Providing hyperlinks to any of the abovementioned contents

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Wikipedia content by subject

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How do you select, collect, vet/sift through, evaluate, process and use InfoData which is

pertinent to your assigment ?

Never, ever lose sight of the focus of your mission by beign sure that what you are looking at is

Pertinent, pertinent, pertinent Factual, factual, factual Simple to understand, short to recap, sharp in its opinions/facts and not idiotic Clean & Clear Clear-cut To the point Understandable for you , for the Team and the General Public, therefore in one

word idiot-proof Unequivocal either black or white. No shades of gray ! User-friendly but not simplistic or stupid /childish!

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Keep in mind the following

It's not the efforteffort you put in that counts,

what counts

is the resultsresults you get out from the InfoData

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Organization

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Building a Team

You will build a team according to individual talentsindividual talents, , interestsinterests, , interplayinterplay, , knowledgeknowledge , ,

experienceexperience and anything that the team players can bring to the table and anything that the team players can bring to the table !!

Keep in mind - for those of you that know the game of Rugby Football - that players intoday’s game must play ALLALL roles.

That is why Forwards (les Avants) today play also a game as Backs (les Arrières), theFast scorers.

Create a sense of multirole in a team that is able in any instance, circumstance, crucialmoment to play a different role that the one that was originally assigned to them .

E.g.: If you are good at numbers you will be assigned in the team the number crunching role however you must also play a backup role of another team member in another area of specialty such as Marketing, Intelligence, Data Mining, Speaker, Point, InfoData Processing and Analysis

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Building a Team

Forwards must be at all times

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Building a Team

backups of Backs32

Building a Team

A good negotiating team must be built around the following missions, functions and relative roles :Mission/FunctionsIntelligence/Data mining SEARCHInfoData and Facts Analysis INFORMATION SCREENINGNumbers crunching DATA PROCESSING

Therefore from the Team must emerge the following Role Players :1. Point Coordinator, Leader, Interface of Project Broker/Supervisor2. Speaker Co-coordinator & Spokesperson – Chief Negotiator3. Intelligence Collecting hearsay, crisscrossing it, vetting it, verifying

it, etc…4. Data mining Gathers the InfoData 5. InfoData Processing Selects the right /useful InfoData6. InfoData AnalysisUses the InfoData working with Data mining & InfoData

Processing as well as Intelligence Team members7. Marketing/Selling Deploys the Marketing, “jazzes” the Negotiation plan-of-

action by preparing Plans A, B, C and elaborating various

scenarious

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Set-up

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This is the most difficult part for you because you , in mostcases :

Are inexperienced

Have never negotiated in a business enviroment

Are afraid of making mistakes and not looking good withyour team players

Keep in mind what this guy once said :

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“”The only thing we have to fear is fear itself””

USA President (1933-1945)

Franklin D. Roosevelt

Be preparedGo for it

Never take NO for an answerMake mistakes

Pick-up the piecesPress on

If you get discouraged get on with your work , that will keep problems off your mind

Know when to cut your losses and get out of the game

Build you caseby identifying and defining your

Team’s

NeedsWantsWould likesObjectives

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Define a Strategy &

a Tactical plan

What can I negotiate ? What is negotiable for us and what do I think is

negotiable for the Opposite? What is not negotiable for us and what do I sense is

not-negotiable for the Opposite ? How far/hard will I carry my arguments in order not to

show weakness ? When should I slow down/suspend negotiation ? When should I cut my losses and quit the negotiation ?

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Prepare Plan A, B, C

Plan A MAX the best result that you want to achieve from the

negotiation

Plan B In-between

Plan C MINthe minimum result that you will settle for in

order not to lose money & face

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Mentally

Understand the Needs, Wants (possibly the

Would likes and, if you are really good, the

Objectives) of the Opposite party as well as

the motives that are laying behind40

Mentally define your idea of your Opposite’s Plan A, B, C

Plan A MAX the best result that you belive they want to achieve from

the negotiation

Plan B In-between

Plan C MINthe minimum result that they could settle for

in order not to lose face

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Roll outDelivering the Beef !

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Always think Bottom Line.

Always keep in mind that full control, knowledge, reactiveness, analysis, and good mathematics (without your pocket calculator) :

2 plus 2 is always 4, neither three nor 54 times 2 is 88 by eight is 64And € 10,000.00 divided by 112 is ?

are key to becoming proficient & smart at to becoming proficient & smart at negotiating negotiating

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The Point Person on the team and his/her backup WILL bnefore any negotiation session conduct a “”Dry Run””

1. Prepare a script, plan of action, based on Intelligence, InfoData Processing & InfoData Analysis

2. Roll it out with the rest of the team playing the role of a sparring partner sparring partner and sustaining it

3. Answer tough questions never taking it personaly4. Train, train, train. Correct, correct, correct. Adapt, Adapt,

Adapt. Change if change is required. Modify.5. Show maturity and assume the role and the responsability

of the position you both are in6. Restart the process over and over again from 1 to 4 until you

both feel you are STIRLING in presentation and UP-To-PAR in DataInfo management!!!!!

Key words : Prepare a script, Roll it out, Answer, Train, Correct, Adapt, Change, Modify, Restart the process

Keep well impressed in your mind that you have one and only one chance in negotiating a good agreement

If you miss this opportunity, you may be out.

And someone else may be in.

You may be off any team.

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No time for “shape up or ship out” for you.

It could be over....for you and the Team !

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Second part

Form

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Never make derogatory or overly gratifying remarks to your negotiating counterpart.

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Remember never, ever, ever humiliate the negotiating couterpart.

He may and will get retribution one day

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Always think and build your answer or your next question when your couterpart is talking

Listen, think and do your numbers all at the same time

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Your answer could be a question

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Simple advices and How to techniques

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Always start from economics or economic impact subjects that are difficult

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Never Stall.

It is a sign of weakness or incompetence or ignorance or, worst-case scenario, beingidentified as a P.o.S. or a S.o.B.

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Always finish one point of negotiation before moving to the next one

It may block a negotiation but it will show your committment

You will then be viewed as a credible counterpart and interface.

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Summa

Always observe & remember observe & remember the techniques, the nuances, the skills of your negotiating counterpart.

If you do not succeed 100 % , if you have played by the rules, you may/will/could have a second, third opportunity/chance to better your performance, output and result and show your true colours.

Good luck and good work! 56