NegotiationSkills

TrainingManual
CorporateTrainingMaterials

TABLE OF CONTENTS

ModuleOne:GettingStarted...............................................................................................................5
WorkshopObjectives................................................................................................................................5
PreAssignmentReview............................................................................................................................6
ModuleTwo:UnderstandingNegotiation............................................................................................7
TypesofNegotiations...............................................................................................................................7
TheThreePhases......................................................................................................................................8
SkillsforSuccessfulNegotiating...............................................................................................................9
ModuleThree:GettingPrepared........................................................................................................10
EstablishingYourWATNAandBATNA....................................................................................................10
IdentifyingYourWAP..............................................................................................................................11
IdentifyingYourZOPA.............................................................................................................................12
PersonalPreparation..............................................................................................................................12
ModuleFour:LayingtheGroundwork................................................................................................14
SettingtheTimeandPlace.....................................................................................................................14
EstablishingCommonGround................................................................................................................15
CreatingaNegotiationFramework........................................................................................................16
TheNegotiationProcess.........................................................................................................................17
ModuleFive:PhaseOneExchangingInformation..........................................................................19
GettingOffontheRightFoot.................................................................................................................19
WhattoShare.........................................................................................................................................20
WhattoKeeptoYourself........................................................................................................................20
ModuleSix:PhaseTwoBargaining................................................................................................22
WhattoExpect.......................................................................................................................................22

TechniquestoTry....................................................................................................................................23
HowtoBreakanImpasse.......................................................................................................................24
ModuleSeven:AboutMutualGain....................................................................................................25
ThreeWaystoSeeYourOptions.............................................................................................................25
AboutMutualGain.................................................................................................................................26
CreatingaMutualGainSolution............................................................................................................27
WhatDoIWant?....................................................................................................................................27
WhatDoTheyWant?.............................................................................................................................28
WhatDoWeWant?................................................................................................................................28
ModuleEight:PhaseThreeClosing................................................................................................30
ReachingConsensus................................................................................................................................30
BuildinganAgreement...........................................................................................................................31
SettingtheTermsoftheAgreement......................................................................................................31
ModuleNine:DealingwithDifficultIssues.........................................................................................33
BeingPreparedforEnvironmentalTactics.............................................................................................33
DealingwithPersonalAttacks................................................................................................................34
ControllingYourEmotions......................................................................................................................35
DecidingWhenItsTimetoWalkAway..................................................................................................35
ModuleTen:NegotiatingOutsidetheBoardroom..............................................................................37
AdaptingtheProcessforSmallerNegotiations......................................................................................37
NegotiatingviaTelephone......................................................................................................................38
NegotiatingviaEmail.............................................................................................................................38
ModuleEleven:NegotiatingonBehalfofSomeoneElse.....................................................................40
ChoosingtheNegotiatingTeam.............................................................................................................40
CoveringAlltheBases.............................................................................................................................41
DealingwithToughQuestions................................................................................................................41

ModuleTwelve:WrappingUp............................................................................................................43
WordsfromtheWise..............................................................................................................................43

Success in business requires training and

discipline and hard work. But if youre not
frightened by these things, the
opportunities are just as great today as
they ever were.
David Rockefeller
Module One: Getting Started
WelcometotheNegotiationSkillsworkshop.Althoughpeople
oftenthinkofboardrooms,suits,andmilliondollardealswhen
theyhearthewordnegotiation,thetruthisthatwenegotiate
allthetime.Forexample,haveyouever:

Decidedwheretoeatwithagroupoffriends?

Decidedonchoreassignmentswithyourfamily?

Askedyourbossforaraise?

Theseareallsituationsthatinvolvenegotiating!Thisworkshopwillgiveparticipantsanunderstanding
ofthephasesofnegotiation,toolstouseduringanegotiation,andwaystobuildwinwinsolutionsfor
allthoseinvolved.

Workshop Objectives
Researchhasconsistentlydemonstratedthatwhencleargoalsareassociatedwith
learningthatthelearningoccursmoreeasilyandrapidly.Withthatinmind,lets
reviewourgoalsfortoday.
Bytheendofthisworkshop,participantswillbeableto:

Understandthebasictypesofnegotiations,thephasesofnegotiations,andtheskillsneededfor
successfulnegotiating

Understandandapplybasicnegotiatingconcepts:WATNA,BATNA,WAP,andZOPA

Laythegroundworkfornegotiation

Identifywhatinformationtoshareandwhattokeeptoyourself

Understandbasicbargainingtechniques

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Applystrategiesforidentifyingmutualgain

Understandhowtoreachconsensusandsetthetermsofagreement

Dealwithpersonalattacksandotherdifficultissues

Usethenegotiatingprocesstosolveeverydayproblems

Negotiateonbehalfofsomeoneelse

PreAssignment Review
ThepurposeofthePreAssignmentistogetyouthinkingaboutthenegotiation
process.
Asapreassignment,thinkaboutwhatyouconsiderthecharacteristicsofa
successfulnegotiator.

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Information is a negotiators greatest

weapon.
Victor Kiam
Module Two: Understanding Negotiation
Beforewegetstarted,letstakealookattwobasictypesof
negotiation.Wellconsiderthethreephasesofnegotiationandthe
skillsyouneedtobecomeaneffectivenegotiator.

Types of Negotiations
Thetwobasictypesofnegotiationsrequiredifferentapproaches.

Integrativenegotiationsarebasedoncooperation.Bothpartiesbelieve
theycanwalkawaywithsomethingtheywantwithoutgivingupsomething
important.Thedominantapproachinintegrativenegotiationsisproblem
solving.Integrativenegotiationsinvolve:
o

Multipleissues.Thisallowseachpartytomakeconcessionsonlessimportantissuesin
returnforconcessionsfromtheotherpartyonmoreimportantissues.

Informationsharing.Thisisanessentialpartofproblemsolving.

Bridgebuilding.Thesuccessofintegrativenegotiationsdependsonaspiritoftrustand
cooperation.

Distributivenegotiationsinvolveafixedpie.Thereisonlysomuchtogoaroundandeachparty
wantsasbigasliceaspossible.Anexampleofadistributivenegotiationishagglingoverthe
priceofacarwithacarsalesman.Inthistypeofnegotiation,thepartiesarelessinterestedin
formingarelationshiporcreatingapositiveimpression.Distributiverelationshipsinvolve:
o

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Keepinginformationconfidential.Forexample,youdontwantacarsalesmantoknow
howbadlyyouneedanewcarorhowmuchyouarewillingtopay.

Tryingtoextractinformationfromtheotherparty.Inanegotiation,knowledgetrulyis
power.Themoreyouknowabouttheotherpartyssituation,thestrongeryour
bargainingpositionis.

Lettingtheotherpartymakethefirstoffer.Itmightbejustwhatyouwereplanningto
offeryourself!

The Three Phases

Thethreephasesofanegotiationare:
1. ExchangingInformation
2. Bargaining
3. Closing
Thesephasesdescribethenegotiationprocessitself.Beforetheprocessbegins,bothpartiesneedto
prepareforthenegotiation.ThisinvolvesestablishingtheirbargainingpositionbydefiningtheirBATNA,
WATNA,andWAP(seeModuleThree).Italsoinvolvesgatheringinformationabouttheissuestobe
addressedinthenegotiation.
Afterthenegotiation,bothpartiesshouldworktorestorerelationshipsthatmayhavebeenfrayedby
thenegotiationprocess.
Itisessentialtopayattentiontoallthephasesofnegotiation.Withoutthefirstphase,theexchangeof
information,andtheestablishmentofbargainingpositions,thesecondphasecannothappeninany
meaningfulsensebecausenooneknowswheretheystand.Itsetsascenefordemandstobe
manageableandreasonable.Negotiationsare,afterall,abouttheartofthepossible.Withoutthethird
phase,anythingthathasbeendecidedduringphasetwocannotbeformalizedandwillnottakehold
leadingtothenecessityforfurthernegotiationoranabsolutebreakdowninarelationship.

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Skills for Successful Negotiating

Keyskillsinclude:
Effectivespeaking
Effectivespeaking

Selfconfidence

Effectivelistening
Effectivelistening

Emotionalintelligence

Asenseofhumor
Asenseofhumor

Persistence

Apositiveattitude
Apositiveattitude

Patience

Respect
Respect

Creativity

Withouttheabovefactors,negotiationswillbedifficultifnotimpossible.Thenecessityfornegotiation
arisesbecauseneitherpartywillbeabletogeteverythingtheywant.Knowingthattheremustbe
concessions,eachpartyinthenegotiationisrequiredtoadoptanattitudeofunderstandingthatthey
mustgetthebestdealpossibleinawaywhichisacceptabletotheotherparty.Theimportanceof
effectivespeakingandlisteningisclear;itisnecessarytoestablishwhatyouarelookingforandwhat
youarepreparedtoaccept,whileunderstandingwhattheotherpartieswillbehappywith.
Asenseofhumorandapositiveattitudeareessentialbecausetheyallowforasenseofgiveandtake.
Negotiationscanbecomefraught,andhavingtheabilitytoseetheothersidespointofviewwhilebeing
sanguinewithregardtowhatyoucanachievewillbeessential.Ofcourseyouwillwantasmuchasyou
cangetbuttheothersideneedstoachievewhattheycan,too.Seriouslyunevennegotiationswill
simplyleadtofurtherproblemsalongtheline.Anatmosphereofrespectisessential.Ifyoudonotmake
concessionswhiledemandingthemfromyourcounterpart,itmakesforanegotiationwhichwillendin
dissatisfaction.
Howeverimportantasenseofunderstandingforyouropponentmaybe,itisalsonecessarytohave
theconfidencetonotsettleforlessthanyoufeelisfair.Goodnegotiatorsunderstandtheimportanceof
balance.Yes,youwillhavetomakeconcessions,butthepointofmakingconcessionsistosecurewhat
youcangetsoyouneedtopayattentiontoyourbottomlineandensureyouarenotbeatendownto
aminimum.Knowingwhatisrealistic,andensuringthatyoucangetthebestdeal,reliesonbeingready
toinsistuponsomethingthattheothersidemaynotbewillingtogiveinitially.Emotionalintelligence,
persistence,patience,andcreativitycanallplayaparthere.

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If you dont know where you are going, you

will probably end up somewhere else.
Lawrence J. Peter

Module Three: Getting Prepared

Likeanychallengingtask,negotiationrequirespreparation.Before
youbeginanegotiation,youneedtodefinewhatyouhopetoget
outofit,whatyouwillsettlefor,andwhatyouconsider
unacceptable.Youalsoneedtoprepareyourselfpersonally.Thekey
topersonalpreparationistoapproachthenegotiationwithself
confidenceandapositiveattitude.
Withoutthispreparation,youwillendupgivingmorethanyouget
fromnegotiations.Itmaybeunavoidablethatyouwillhavetogive
upmorethanyouwouldordinarilybewillingto,butfindingthe
balancebetweenacceptableconcessionsandgettingthebestdeal
foryourselfreliesonyoubeingreadytogointonegotiationswiththestrongestbargainingpositionyou
can.

Establishing Your WATNA and BATNA

Inmostnegotiations,thepartiesareinfluencedbytheirassumptions
aboutwhattheythinkarethealternativestoanegotiatedagreement.
Oftenthepartieshaveanunrealisticideaofwhatthesealternativesare,
andtheyareunwillingtomakeconcessionsbecausetheythinktheycan
dojustaswellwithoutnegotiating.Ifyoudonothaveaclearideaof
yourWATNA(WorstAlternativetoaNegotiatedAgreement)and
BATNA(BestAlternativetoaNegotiatedAgreement),youwillnegotiatepoorlybasedonfalsenotions
aboutwhatyoucanexpectwithoutanagreement.
Oftenthepartiesinanegotiationneedtodecidehowlikelyaparticularoutcomewillbe.IfyourWATNA
issomethingthatwouldbedifficultforyoutoaccept,butthelikelihoodofithappeningissmall,you
mightnotfeelcompelledtogiveupmuchinnegotiations.Realismisessentialinthissituation.Ifyou
couldhavetheidealsituation,theblueskyscenario,negotiationswouldnotbenecessary.Inorderto
focusonthenegotiationswithasenseofpurpose,yourWATNAisimportant.Whatisoftenreferredto
astheworstcasescenarioissomethingthatanysensiblepersonwillthinkaboutbeforeembarkingon
anyinitiative.Whatifitgoeswrong?Howwillwedealwiththat?HowyoufeelabouttheWATNAwill
dictatehowflexibleyouneedtobe(andthereforewillbe)innegotiations.

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TheBATNAisalmostmoreimportantthantheWATNA.Ifyoulookatyoursituationintheabsenceofa
negotiatedagreement,andfinditalmostunthinkable,youwillbepressedtoenternegotiationsinthe
hopeofgettingasatisfactoryagreement.Thewordsatisfactoryisimportanthere.IstheWATNA
betterthansatisfactory?IstheBATNAworse?Generally,peopleonlyenterintonegotiationsbecause
theyfeeltheyhaveto.TheyarriveatthisconclusionbasedonanalysisoftheirWATNAandBATNA.

Identifying Your WAP

Inanynegotiation,itisimportantthatyoukeepyourWAP(WalkAwayPrice)to
yourself,especiallyifitissignificantlylessthanyourinitialoffer.Iftheotherparty
knowsthatyouwillbewillingtotakealotlessthanyouareoffering,thenyouwill
benegotiatingfromapositionofweakness.Iftheotherpartyknows,orhasan
ideaofyourWAPthenitstopsbeingyourWAPandsimplybecomesyourprice.
EstablishingaWAPinyourmind,andensuringthatthosenegotiatorsonyourside
ofthebargain(andonlythey)knowit,allowsyoutotakeyourstrongestpossiblebargainingposition.
Theotherpartywilltrytoargueyoudownfromyourproposedprice,soyouwillneedtoremainfirm.If
theywanttopayless,thenyoumaybepreparedtoagreeonalowerpriceinreturnforconcessions.
Theopposingpartywillthenhavetoconsiderwhatisacceptabletothem.Ratherthanpushtoohard
andloseoutonadealwhichwouldbebeneficialtothemselves,theywillhavetheirownareaswhere
theyarewillingtomakeconcessions.However,iftheyknowthatyouhavesetaWAPthatwouldsave
themmoney,theywillsimplyholdfirmatthatprice.Theyhavenoincentivetomakeconcessionsto
you.Inmanyways,negotiationisaboutkeepingasmuchtoyourselfasyoupossiblycanuntilyoucanno
longermaintainthatposition.
OnceyouhavesetyourWAP,itisessentialtokeeptoit.Awalkawaypricebecomesabsolutely
meaninglessifyouarenotpreparedtowalkawayshoulditnotbemet.Youshouldgivetheimpression
toopponentsinnegotiationthatyoucouldwalkawayatanytime.Theywill,afterall,notbeprepared
tostoponcetheygetapricewhichissatisfactorytothemtheywilllooktowringabitmorevalueout
ofthedealforthemselves,testingyoutoseewhatyouwillgiveup.AwarningagainstsettingyourWAP
unrealisticallylowisthattheotherpartywillnottakeyouseriouslyifyouareapushoverinnegotiations.
Theywillseektotestyouateveryturn.

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Identifying Your ZOPA

Inthenegotiationfortheusedcar,bothpartiesshouldfeelgoodaboutthe
outcome.Eventhoughthepartiesmighthavehopedforabetterdeal,bothgota
betterpricethantheirWAP.
ThisnegotiationdemonstratestheimportanceofkeepingyourWAPtoyourselfif
youwanttonegotiatethebestdeal.Yourrangeinthissituationfallsbetweenthe
pricethatyouwouldideally,realisticallygetandtheWAPyouhaveset.Inanideal
worldyoucoulddemandamilliondollarsandexpecttogetit.Inarealisticworld,youneedtobe
realisticinnegotiations.
Youshouldarriveatyouridealrealisticpricebyseeingwhattheacceptedmarketvalueforwhatyouare
offeringis.Byadjustingforyourspecificnegotiatingposition(whetheryouareapproachingitfroma
positionofneed,etc.),youcanfindyourbestrealisticprice.Thenthinkaboutapriceatwhichitwould
nolongerbeworthwhiletostrikeadeal.
Yourconegotiatorwillhavedonethesame.Whathehopestopayandwhatyouhopetogetarejust
thathopeful.TheZOPA(ZoneOfPossibleAgreement)istheareainwhichthefinalpricewillsit,and
withinthatZOPAyouwillideallyendupwithapriceclosertotheirWAPthanyours.Ifyouhintatwhere
yourWAPis,theotherpartywillbelesslikelytocometoanagreementthatissubstantiallybetterthan
that.

Personal Preparation
Onewaytorelievesomeofthetensionyoumaybefeelingbeforeanegotiationis
toremindyourselfthatthereisnothingtobeafraidof.Aslongasyouunderstand
yourposition,thereisnodangerthatyouwilllosethenegotiation.Duringand
beforenegotiationyoushouldalwaysbe:

PoliteItneverreducesyourargument

FirmRemovesPerceptionsofWeakness

CalmFacilitatesPersuasionandCompromise

Donottakethingspersonally

Knowingyourpositionbeforeenteringnegotiationsmeansthatyouaresureofyourredlines.Things
thatyouarenotpreparedtoconsiderthatwouldmakeyourpositionworsethanitisnow.Manypeople
getpushedintoadealwhichisunsatisfactorytothembecausetheyhavefailedtoprepareforthe
negotiationinthisway.Ifyougointonegotiationswithvagueideas,thatvaguenesswillbecomea
weaknessinyournegotiatingposition.

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Theimportantthingaboutyourpositioninnegotiationsisthatyoushouldbetheonlyonewhoknows
whatitis.Manypeoplecomparenegotiationtoagameofpoker.Whenplayingpokeryoushouldalways
becarefultokeeptoyourselfwhatkindofhandyouhave.Ifyouropponentknowsyourposition,they
willsqueezeyoutoitsverylimits,confidentthatyouhavenostrongimpetustopushback.
Whenanegotiatorknowsthattheiropponenthasaweakorcompromisedposition,theywill
instinctivelyknowthattheyarenegotiatingwithsomeonewhoisworkingfromapositionof
desperation.Theywillbelievethatswhathesdecidedheiswillingtosettlefor,becauseheneedsthis
deal.Doesheneeditenoughtogivemealittlebitmoreleverage?,andwillnegotiatefromthat
standpoint.

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Everything comes to him who hustles while

he waits.
Thomas Edison
Module Four: Laying the Groundwork
Inthepreviousmodule,welookedattheimportanceof
establishingyourbargainingposition.Inthismoduleweconsider
otheraspectsofpreparation:settingthetimeandplace,
establishingcommonground,andcreatinganegotiating
framework.Evenatthisearlystageitisimportanttohavecertain
principlesinplace.Ifyouallowthemtobecompromised,thenyou
willalreadyhaveputyourselfinapositionwhereyoucanbe
consideredaspreyforhostilenegotiators.Gettingthegroundwork
inplacemayseemlikeaformality,butitisthefirststageof
negotiations,andthereforeasmuchapartofthearrangementsas
anyother.

Setting the Time and Place

Settingthetimeandplacecangiveyouanadvantageinanegotiation.Peoplefeel
mostcomfortableconductinganegotiationontheirhometurf.Mostpeoplehavea
particulartimeofdaywhentheyfeelmostalertandclearheaded.
Environmentalfactorscaninterferewithnegotiations,forexample:

Anoisysetting

Frequentinterruptions

Crowdedconditions

Lackofprivacy

Ifyouareconductinganegotiationatyourownsite,youhavecontrolovermostofthesethings.Ifyou
arenegotiatingattheotherpartyssite,asktheotherpartytoremedytheseconditionsasmuchas
possiblebeforenegotiationsbegin.
Insport,everygametakesplaceatavenue,andinmostcasesoneofthepartiesinvolvedwillbethe
hometeam.Inthevastmajorityofcases,wherethepartiesareevenlymatchedintermsoftalentand
preparation,theteamthatwinswillbethehometeam.Theyareplayinginfamiliarsurroundings,where

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thingssuchasclimateandambientnoisearetotheiradvantage.Theawayteamspendstheearlypartof
thegameacclimatizingtotheirunfamiliarsurroundings.
Inpoliticalnegotiationsleadingonfromawar(ortryingtopreventone),thereisatendencytoholdthe
discussionsinaneutralvenue,wherebothpartiesareequallyunfamiliarwiththesurroundings,
meaningthatneitherhastheadvantageandallowingthenegotiationstobeevenhanded.Inbusiness,it
israretohavetheopportunitytoholdnegotiationsinaneutralvenue,andfrequentlytherewillbea
homeside.
Thetimeofnegotiationsisalsoimportant.Humanbeingsarealwaysinsomepartatthemercyoftheir
biorhythmswhichcausethebodyandthemindtofunctiondifferentlyatdifferenttimesofday.Some
people,asyouwillknow,tendtobemorningpeoplewhileothersaremorecomfortablethelonger
thedaygoeson.Ifyouwanttobuildinanadvantageinnegotiations,itisworthmakingsureeitherthat
thenegotiationsareheldatyourhomevenue,atyourmostcomfortabletimeofday,orboth.
Sometimestherewillbedebateaboutthesettingforanegotiationandoften,thisiswherethefirst
negotiationsandconcessionswilltakeplace.

Establishing Common Ground

Sometimesthepartiesinanegotiationbeginbydiscussingtheissueon
whichtheyarefarthestapart.Itmightseemliketheyareworkinghard,
buttheyarenotworkingeffectively.
Itisoftenmoreeffectivetobeginbydiscussingwhatthepartiesagreeon
andthenmovetoanissueonwhichtheyareclosetoagreement.Then
theycantakeonprogressivelytougherissuesuntiltheyreachtheissueonwhichtheyarefarthestapart.
Thisgradualapproachsetsapositivetoneforthenegotiation.Italsohelpsthetwopartiesgetintoa
patternofthinkingaboutissuesintermsofsharedinterests.
Momentumisanimportantthinginnegotiations.Ifthemeetingiscontinuallystalledbydisputesover
thesmallestofissues,theoutcomeislikelytobelessdesirableforbothpartiesasthegoodwillwhichis
necessarytodrivenegotiationsforwardwillbeextremelythinontheground.Forthisreason,havingan
agendawhichisstackedinfavorofpositiveitemsatthebeginningisawaythatwillworkbestforboth
sides.Concessionswillhavetohappenintheend,butifbothsidesareinapositiveframeofmindit
createsapositivedynamicinwhichtonegotiate.

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Creating a Negotiation Framework

Bothsidesinanegotiationbringtheirownframeofreferencebasedontheir
experience,values,andgoals.Foranegotiationtoproceed,thetwosides
havetoagreetoacommonframework.Theyneedtoagreeonwhatissues
arebeingaddressed.Sometimesthewaytheseissuesarestatedwill
influencethecourseofthenegotiation.Eachsidewouldliketoframethe
issuesinawaythatfurthersitsgoals.Fromthisitispossibletoseehow
involvednegotiationscanget.Sometimespeoplewilluseaphrasetodescribepreliminarynegotiations:
talksabouttalksandthisisafairlyinterestingphrase,asitshedslightonjusthowmuchisupfor
debateintheaveragenegotiation.
Beforestartingnegotiations,itisessentialtoagreeonwhichissuesareupfornegotiationandwhichare
nonnegotiable.Thoseissueswhicharenonnegotiablearetakenoffthenegotiatingtableandthe
partiesendeavortomoveforwardwithwhattheycannegotiateon.Itcanalsobedecidedwhatformof
wordswillbeusedintheprogramfornegotiationsmakingcleartobothsideswhatmattersareoff
limits,andwhy.
Withoutestablishingaframework,negotiationscanbeextremelydisorganizedandlackdirection.It
helpstorememberthattryingtogetanegotiatedsettlementbetweentwopartieswhohavetheir
differencescallsforagreatdealofpatienceandacceptanceonbothsidesthattherewillbesome
medicinetotakeyoudontwanttotakeit,butitisnecessaryandthereforeitisimportanttomake
thepillassweetaspossible.Settingapositiveframeworkfornegotiationsisallaboutsweeteningthe
pill.

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The Negotiation Process

Preparation

Opening
Position

Bargaining

Movement

Closing

Preparation:

Identifyyourkeycommitments

OpeningPosition:

OutlineYourOpeningPosition

DecidewhetherthiswillbeHighBallorLowBall

Ensurethatthispositionisrealisticinlightofthefactsavailabletobothsides

Allowformovementwithinwhateveropeningpositionyouadopt

Confirmallagreementsreachedandpositionsoffered

Bargaining

QuestionforInformation

Challengeothersideforjustificationsoftheirposition

ExamineandTesttheircommitment

PresentYourKeyCommitments

ExploreKeyCommitments

SummarizeArgumentsandSeekAcceptance

LookforSignalsofPossibleMovement

IdentifyandHighlightCommonGround

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Movement

BePreparedtoConcede

BeginwiththoseofLowPriorityandseekHighPriorityItems

NeverConcedeonMorethanpossiblebyyourBrief

UseyourConcessionsWisely

Dontjustgivetheseawayexpectandreceivesomethinginreturn

UseConditionalArgument

AllMovementShouldberealisticandcontainedwithinyourbrief

ItShouldbealwaystowardstheothersidespositionandnotawayfromit

Bepreparedforlargermovementsatfirstasitcanbuildtrustwithinthenegotiation

Continuewithsmallermovements

Closing

Emphasizethebenefitstobothparties

Carefullyintroducetheconsequencesofnotreachingagreementtobothpartiesandlosing
whathasbeenagreedsofar

TimingisEssential

TakeCarewhenmakingaFinalOffer.Besurethatitisconsistentwithyourbrief.

ASmallTradedOfferisoftenbetter.Asmallmovebytheminreturnforanextramovementby
you.

Ensurethatallagreementsareunderstoodandacceptedbeforefinalization

Thisshouldbewelldocumentedandsignedatthecloseofthenegotiations

Theseshouldbethenforwardedtobothpartiespostnegotiations

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The first step to getting the things you want

out of life is this: Decide what you want.
Ben Stein
Module Five: Phase One Exchanging Information
Thefirstphaseinanegotiationinvolvesanexchangeofinformation.
Bothsidesstatetheirpositionsontheissuesbeingaddressedina
nonconfrontationalway.Thetrickypartofthisphaseisdeciding
whattorevealandwhattoholdback.Thepokermetaphorfor
negotiatingisaverygoodone,becauseitdescribesexactlytheway
thatnegotiatingpartieswillwanttoalloweachothertothink.The
informationyousharewithyournegotiatingcounterpartwillallow
themtoreadacertainamountaboutyourposition.Youcannot
negotiateblindly,afterall.However,toomuchinformationgiven
awaycanreallycomebacktobiteyou.

Getting Off on the Right Foot

Beforeyouactuallygetdowntowork,itsagoodideatoengageinalittlesmalltalk
withtheotherparticipantsinthenegotiation.Thiswillhelpsetapositivetone.You
mightfindthatyouhavesomethingsincommon(suchashobbiesorfavoriteteams)
withtheotherparticipants.
Ifyourushrightintothenegotiationwithoutsomeinitialpleasantries,theother
partymayfeelthatyouarebeingpushyandaggressive.Forsomepeople,thisisadesirablenegotiating
style.However,itisadvisabletohaveasmanystringsaspossibletoyourbowwhenitcomesto
negotiations.Beinghumanandeasytorelatetoisfarlesslikelytopersuadetheotherpartythatyou
aresomeonewhoneedstobekeptincheck,andmayworktoyouradvantage.
Obviouslywhenitcomestointroductionsandpreliminariesitisanideanottogettooinformal.Apart
fromanythingelse,thiswillfeelquiteartificialwhenallpartiesarefullyawarethatthereareissuesto
bedebatedhere.Formalityalsolendsitselftodetailsbeingcorrecthowmanynegotiations,youhave
towonder,havefounderedatanearlystagebecauseoneparticipantforgotthenameofacounterpart
ormadeanaccidentallyoffensiveremarkduetoignoranceofacriticaldetail?
Projectinganimageofrelaxedfriendlinesswithanelementofrestraintisyourbestwaytointroduce
yourself.Bynomeansshouldyougivetheimpressionthatyouareheretobleedyourcounterpartdry
thiswillputthemonthedefensiveandentrenchtheirposition,toyourdisadvantagebutitdoeshelp
toprojectselfconfidence.Ifyouseeminahurrytogetnegotiationscompletedandanagreement

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sealed,theimpressionwillbethatyouwanttoescapefromthewholeprocesswithaminimumoflosses
whichwillnotmakeyouaformidablenegotiatingcounterpart.

What to Share
Atthestartofanegotiation,youdontwanttogiveadetailedstatementaboutyour
positiononspecificissues.Thatisasubjectforbargaining.Iftheotherpartytriesto
rushyouintostatingyourbargainingpositionprematurely,saysomethinglike,
Thatsanimportantquestion.Beforewegettothat,letsmakesureweagreeon
theissueswerediscussingtoday.
Itmaybehelpfultothinkwhytheotherpartywouldbeinahurrytogetyoutostateyourposition.If
theyarefixatedonthatsoearlyinnegotiations,thechancesarethattheyhavebeenworryingaboutit
forsometimebeforehand,andwillwanttogetnegotiationsoveranddonewithwithouthavingto
worryaboutgivingawaymorethantheywillneedto.Insuchacase,itdoesyounoharmatalltoleave
themwaitingforthisinformationbyconcentratingonlayingdowntheframework.
Innegotiations,onepartysopiniononwhatshouldconstitutetheagendawilldifferfromtheotherat
leastintermsofhowtheissuesshouldbeframed.Thesameissuecanbeframedinseveraldifferent
ways,andasimpleformofwordscanbequitecontentious.Agreeingonthetopicsfordiscussionis
somethingthatallowsbothpartiestofindcommonground,whilepreparingthewayforbothpartiesto
recognizethattheywillnotcompletenegotiationswithoutmakingsomemovementonsomeissues.

What to Keep to Yourself

Holdingbackinformationcanbeatrickybusiness.Youdontwanttoappear
secretiveordeceptive,butatthesametimeyoudontwanttogiveawayyour
bargainingpositionprematurely.Thebestwaytodealwiththissituationisto
attempttosettheagendaforthenegotiation.Saysomethinglike,Letsgetafew
generalissuessettledbeforewegetintospecifics.Atthestartofnegotiationsboth
partieswill,tosomeextent,beonthedefensiveandwillwanttogetanimpression
ofwhomtheyaredealingwithbeforetheygoanyfurther.
Bydealingwithmattersofagendafirst,bothpartiesgetanopportunitytosizeuptheircounterpart
andthinkaboutwhattheywanttogetfromthenegotiationandwhattheycanget.Themajorbenefitof
theseearlydiscussionsisthatthefirsttentativenegotiationscanbemadewithoutmakingorbreaking
thewholeprocess.Fromhereitispossibletohaveamorerealisticideaaboutwhoyouaredealingwith.
Thiscaninfluencehowyoucarryonwiththenegotiations.

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IfyouwalkintonegotiationsandafterpreliminaryintroductionssimplysayOK,sothisiswhatwehave
comefor,andwewillwalkawayifwedontgetit,thenyoumightaswellnotbehavinganegotiationin
thefirstplace.Equally,ifyouhintearlyinnegotiationsthatyouarepreparedtosettleforadealwhich
moreorlessfavorsyourcounterpart,youaresimplysettingthesceneforthemtotakeeverythingyou
arepreparedtoofferandmorebesides.Yoursuccessinnegotiationsdependsonknowingwhattosay,
whentosayitandwhentobesilent.

Page21

My idea of an agreeable person is someone

who agrees with me.
Benjamin Disraeli
Module Six: Phase Two Bargaining
Nowwehavereachedtheheartofthenegotiationprocess.
Thisphasebargainingiswhatmostpeoplemeanwhen
theytalkaboutnegotiation.Thismoduleexplainswhatto
expectwhenyoubegintobargainandwhattodoifyourun
intoanimpasse.Italsodescribessomecommonbargaining
techniquesusedbyexperiencednegotiators.

What to Expect
Inadditiontolearningaboutthepressures,targets,andneedsthatmight
influenceyouropponents,youmightalsowanttotrytogetsomeideaoftheir
usualnegotiatingapproach.

Dotheytypicallystartoutwithanunreasonableoffer?

Dotheytrytorushthenegotiation?

Dotheytrytoframetheissuestotheirownadvantage?

Findingthisoutcanbeaprocessoftrialanderror,butifyouhaveanycontactsinthesamebusiness
whohavenegotiatedwithyouropponentyoucanaskthemforarundownofhowthenegotiationwent.
Thisissomethingwhichwillbefamiliartoanysportsfan,inthatteamsandplayerswillscouttheir
opponentstoexploitanyweaknessesandpreparetodealwithanystrengththatmightmaketheir
opponentformidable.
Ifanopponenthasareputationforalwayslookingtorushthenegotiation,itispossibletousethatto
youradvantage.Byremainingfirmonyourbargainingpositionyouwillbeabletoplacepressureon
themtogetthedealdoneonyourterms.Iftheywantittobeoverquickly,theywillbelesslikelyto
spendtimewringingconcessionsoutofyouandwillhavetoeitherspendlongerinnegotiationsthan
theywouldordinarilywish(potentiallymakingthemuncomfortableandpronetorashdecisions)or
makeaconcessioninordertogetthearrangementinplacequickly.

Page22

Findingoutandanalyzingyouropponentspressure,targetsandneedsissomethingthatshouldbe
doneifpossiblepriortoyournegotiationswiththem.Iftheygiveinformationinthepreliminarystages
ofameetingthatmaybeofusetoyou,thenbyallmeansyoucandulynotethatinformationandbring
itintoplaylaterinnegotiationsatakeypoint.Themoreinformationyoucanfindoutinadvance,the
betterforyou.Itwillallbeusefulinnegotiationsettings.

Techniques to Try
Someofthesetechniquesarewhatyoumightexpecttoencounterwhendealing
withastreetvendor,butthatdoesntkeepmoresophisticatedbusinesspeople
fromusingthem.Theimportantthingistorecognizethemandbepreparedto
respondtothemiftheyareusedagainstyouinanegotiation.Aslongasyou
recognizethetechniquewhenitisused,youcanactuallyturnthemtoyour
advantageinapressurizednegotiationsetting.
Onethingthatmanyofthetechniqueshaveincommonisthattheytendtobeusedmoreinhopethan
inexpectation.TheExaggeratedFirstOffertechniqueistypicallymadeinthefullawarenessthatthat
offerwillnotbemet,andthehopethatsomewherebetweenthe$1000youwillsettleforandthe
$2000youhaveaskedfor,thedealerwillmakeanofferwhichisashighasyoucanhopefor.
Experiencednegotiatorsrecognizethistechnique,andwillusuallyrespondwithwhatmaybeanequally
exaggeratedcounterofferwhichundercutswhatthecarisworth.
Thetechniquestendnottohavealottodowithrealism,essentiallytryingtocreateacircumstance
wherebyacustomerfeelsrushed,belittled,orharriedinsomewayintoacceptingasituationwhichis
beneficialtothepersonusingthetechnique.Ifacustomerfeelsthatitisachoicebetweenpaying
$1,500todayor$3,000nextweek,theywillusuallyplumpfortheformerregardlessofhowtruethe
pitchwasinthefirstplace.Aswellasthis,somenegotiatorswillattempttoflatteryoubysayingOK,
normallyIwouldntgoanywherenearthislow,butbecauseIlikeyou,hereiswhatImgoingtodo.If
youhaveafirmlinetoholdto,keepholdingitinthefaceofthesetechniquesandyouwillholdthe
power.
TenNegotiationTechniques:
1. Prepare,prepare,prepare.
2. Payattentiontotiming.
3. Leavebehindyourego.
4. Rampupyourlisteningskills.
5. Ifyoudon'task,youdon'tget.
6. Anticipatecompromise.
Page23

7. Offerandexpectcommitment.
8. Don'tabsorbtheirproblems.
9. Sticktoyourprinciples.
10. Closewithconfirmation.

How to Break an Impasse

Thedictionarysaysanimpasseisanounwhichdescribes:asituationin
whichnoprogressispossible,especiallybecauseofdisagreement;a
deadlock.
Thereareanumberofwaystobreakanimpasseinnegotiations.Herearea
few:

Iftheimpasseinvolvesmoney,changetheterms:alargerdeposit,ashorterpayperiod,etc.

Changeateammemberortheteamleader.

Agreeoneasyissuesandsavethemoredifficultissuesforlater.

Changethelistofoptionsbeingconsidered.

Agreetoadjournforafixedperiodoftimetotrytocomeupwithotheroptions.

Theriskwithanimpasseinnegotiationsisthatitcanbecomeapointwhereanymovementfromeither
partywillbeseenasweakness.Theimpassecanbecometheoverallfocusofthespellofnegotiations,
wheretheactualfocusshouldbethatwhichissetoutintheinitialframeworkasagreedinthe
preliminarystages.Sometimesinpolitics,negotiationstakeyearstoreachtheirfruition,because
stickingpointsareoccasionallyunavoidable.Inbusiness,ittendsnottotakethatlongbutitis
essentialthatyoudealwithimpassesastheyoccur.
Ifyouwanttogetaroundanimpasse,therealizationneedstobemadethatitishappeningforareason
andthatovercomingitwillnecessitatechangingsomethingaboutthewayyouarenegotiating.Ifyou
canseethestickingpoint,thenbyallmeansmakethatthefocusofyourchange,butfailingthatitcan
beagoodideatoplacetoproblemonthebackburneranddealwithsomethingelsesomething
manageablewhichwillenablethemomentumtobeputbackinyournegotiations.

Page24

When dealing with people, remember you

are not dealing with creatures of logic, but
with creatures of emotion.
Dale Carnegie
Module Seven: About Mutual Gain
IntheirclassicbookGettingtoYes,RogerFisherandWilliam
Uryarguethatmostnegotiationsarenotasefficientoras
successfulastheymightbebecausepeopletendtoargue
aboutpositionsratherthaninterests.Oncethepartiesina
negotiationcommitthemselvestoaposition,theyfeelthat
changingtheirpositionrepresentsfailure.Instead,Fisherand
Urysuggestthatthepartiesinanegotiationfocusontheir
interests.Whatcanwegetoutofthenegotiationthatwill
furtherourinterests?Thatisthequestionthatshouldguidea
negotiationtowardachievingmutualgain.

Three Ways to See Your Options

PositionalBargaining:Soft

Participantschangepositions
readily

Participantsstatetheir
bottomline

Participantstrusteachother

Participantsaresoftonthe
peopleandtheproblem

Participantsmake
concessions

Participantssearchforone
solution

Participantssticktoaposition

Participantsconcealtheir
bottomline

Participantswanttobe
friends

Thegoalisagreement

PositionalBargaining:Hard

Participantsareadversaries

Thegoalisvictory

Page25

Participantsdistrusteach
other

Participantsdemand
concessions

Participantsarehardonthe
peopleandtheproblem

Participantsdemandone
solution

Participantsfocuson
interests,notpositions

Thegoalisanoutcomethat
willsatisfytheinterestsofthe
participants

Participantsdonthavea
bottomline

Participantsinventoptionsfor
mutualgain

Participantstreattrustand
distrustasirrelevant

Participantsdevelopmultiple
options

InterestBargaining

Participantsareproblem
solvers

Participantsaresoftonthe
people,hardontheproblem

About Mutual Gain
Thekeytomakingthemutualgainapproachworkistofocusoninterests,not
positions.Bothpartieswanttocreateanatmosphereofrespectandorderinthe
schools.Whatoptionsareavailabletoallowthemtosatisfytheirinterests?
Theanswerinthissituationmaybeacompromise.Onepartywantsuniforms,the
otherdoesnot.Thereasonswhythefirstpartywantstohaveuniformsistoavoida
situationwhereeverystudentwearstheirownclothesandpotentiallybullyingcanarisewhereone
personorgroupactwithhostilitytowardsanotherwhohavetheirownindividualstyle.Although
individualityistobeencouraged,ithasitsdrawbackswhenitleadstomarkeddifference.
Onepotentialansweristonothaveaspecificuniformrequirementwhereeveryonewearsthesame
clothesasthishasitsowndrawbacks,makingstudentseasilyidentifiabletooutsidersandpotentially
causingproblemsforparentswithlimitedfinancialmeans.Instead,adresscodecanbeimplemented
whichrequiresstudentstodressinacertainwaywithoutnecessarilydressingallthesame.Thedress
codecanstipulatethatthestudentsdressinamodest,reasonablewaywithoutnecessarilybeingclones
ofoneanother.Thisallowsbothpartiestogetsomethingofwhattheywant,withouteithersidehaving
togiveuptoomuch.

Page26

Creating a Mutual Gain Solution

Creatingamutualgainsolutionrequiressomeactivitiesnotusuallyassociatedwith
negotiations,forexample:

Brainstormingtoexpandthepiebycomingupwitharangeofoptions

Identifyingsharedvaluestohelpcreateoptionsthatwillmeettheinterests
ofbothparties

Changingthescopeofthenegotiationmakingitlargerorsmaller

Identifyingissuesthatcanbesetasideforfuturenegotiations

Oneoftheproblemsthatariseinnegotiationsisthatpartiescanfeelthattheyarebeingmarginalizedin
termsofwhattheycandoandwhattheycanget.Theymayfeelthatbeinginconstantopposition
meansthatthenegotiationsadvanceatasnailspaceifatall.Inordertoputinplaceamindsetwhere
thereisachanceforconsensus,thepartiescanlookatwhatunitesthemratherthanwhatputsthemin
oppositiontooneanother.
Thedifficultyinanynegotiationariseswhenthereareissueswherebothpartieshaveaphilosophical
WAPwhichistoofarfromthatoftheother.ThereisinthiscasenoZOPA,andnomatterhowmuch
negotiationtakesplacetherewillbeastickingpoint.Ifyoucanremovethestickingpointfromthe
equationatleasttemporarily,youcangetinplaceasituationwherethereisspaceforconsensus.
Thedangerofignoringtheelephantintheroomisthatitwillnotgoawayjustbecauseitisignored.It
willstillbethere,andalthoughitistemptingtolookatthingsfromablueskypointofviewandforget
aboutthecloudsformingoverhead,youcanendupsavingupproblemsforthelatterstagesof
negotiations.Whatyoucouldlookatdoingishavingsomeoneworkingawayfromthenegotiatingtable
tofindacompromisesolution,andbringitbacktothetablewhenitlooksmorepalatabletoboth
parties.

What Do I Want?
Tobegin,identifywhatyoupersonallywantoutofthenegotiation.Trytostatethis
positively.
Examples:

Iwantafairshareofallnewcustomers.

Iwantabetterworkingrelationshipwithmymanager.

Iwantchangestotheschedule.

Page27

Youcancreatetwoversionsofyourpersonalneedsstatement:youridealresolutionandyourrealistic
resolution.Or,youcouldframeyourstatementintoseveralstepsifthenegotiationiscomplicated.
Anotherusefulexerciseistobreakdownyourstatementintowantsandneeds.Thisisparticularly
valuableifyourstatementisvague.Letstakethestatement,Iwantchangestotheschedule,asan
example.
Want

Need

Moreinputintotheschedulingprocess

Toworklessthan30hoursperweek

Amoreregularschedule

Morenoticeforschedulechanges

Thiswillgiveyousomebargainingroomduringthenegotiationprocess,andwillhelpensurethatyou
getwhatyouneedoutofthesolution.Intheexampleabove,youmaybewillingtogiveupamore
regularscheduleifmorenoticeforschedulechangesisprovided.

What Do They Want?

Next,identifywhatthepersonthatyouareinconflictwithwants.Trytoframethis
positively.Explorealltheanglestomaximizeyourpossibilitiesformutualgain.
Theseframingquestionswillhelpyoustarttheprocess.

Whatdoesmyopponentneed?

Whatdoesmyopponentwant?

Whatismostimportanttothem?

Whatisleastimportanttothem?

What Do We Want?
Nowthatyouhaveidentifiedthewantsandneedsofbothsides,lookforareasof
overlap.Thesewillbethestartingpointsforestablishingmutualground.
Hereisanexample.JoeandGeorgeareinconflictoverthecurrentschedule.Asthe
mostseniormembersoftheassemblylineteam,theybothalternatetheirregular
dutieswiththatofforeman.Althoughtakingontheresponsibilitygivestheforeman
anextra$250pershift,theforemanalsohastoworkanextrahourpershift,andhas
additionalsafetyresponsibilities.
Page28

JoeandGeorgebothworkMondaytoFriday.Asaregularassemblylineteammember,theirshiftsare
from8:30a.m.to4:30p.m.Asforeman,theyareexpectedtoworkfrom8a.m.to5p.m.

Wants

Needs

Joe

George

Tohaveatleasttwoforemanshifts
perweek.

Tohaveatleasttwoforemanshifts
perweek.

Toleaveby4:30p.m.onFridays.

Toleaveby4:30p.m.onMondays
andWednesdaystopickuphis
children.

Nottohavemorethanthree
foremanshiftsperweekasitwill
requirehimtopayextrataxes.

Toensurethattheforeman
positioniscoveredbysomeone
fromMondaytoFriday,8a.m.to5
p.m.

Toensurethattheforeman
positioniscoveredbysomeone
fromMondaytoFriday,8a.m.to5
p.m.

Fromthissimplechart,wecanseethatJoeandGeorgehavethesamegoal:toensurethattheforeman
positioniscoveredbysomeoneduringregularworkinghours.Thus,thisisalogisticalconflictrather
thananemotionalone.Wecanalsoseefromthechartthatthereseemstobesomegoodstarting
groundforasolution.
Whenworkingthroughthewantsandneedsofbothparties,becarefulnottojumptoconclusions.
Rather,beonthelookoutfortherootcause.Often,theproblemisnotwhatitseems.

Page29

Negotiating in the classic sense assumes

that parties are more anxious to agree
than to disagree.
Dean Acheson
Module Eight: Phase Three Closing
Thefinalphaseofanegotiationisatimeforreachingconsensusand
buildinganagreement.Alittlehardworkinthisphasecanensure
thatthenegotiationachievesitdesiredresults.
Closinganegotiationcanmeantwodifferentthings:Firstitmaybe
aquestionofhowtobringdifferentideastoamutuallyagreed
conclusion.Asecondpossibilityviewofclosingiswhatmeans
negotiatingpartiescanusetoacknowledgeorformalizetheidea
thatagreementhasbeenreached.
Recognizingthatpartieshavereachedagreementcanbequite
simple.Onecanasktheother(s),Then,havewereachedagreement?Thepartiescanshakehands,
makeapublicannouncement,orsignadocument.Therealissueisthateachhastomakeitclearto
othernegotiatorsthatamutuallyagreedconclusionhasindeedbeenreached.

Reaching Consensus
Peoplehavedifferentideasaboutwhatconstitutesconsensus.Whenappliedto
negotiations,consensususuallyinvolvessubstantiveagreementonkeyissues.Not
everyoneneedstobecompletelysatisfiedtoreachconsensus,buteveryoneneeds
tofeelthattheoutcomeofthenegotiationissomethingtheycanlivewith.Building
consensusisoneofthehardestpartsofnegotiation,becausethenegotiatingparties
willpotentiallyhaveradicallydifferentattitudestowhattheyfeeltheresultsshould
be.
Consensushasdifferentmeaningstodifferentpeople.Tosome,itisunsatisfactorycompromise,with
bothpartiesendingonasolutionwhichdoesnotgivethemeverythingtheywant.However,thesimple
factisthatyoucannotpleaseallofthepeopleallofthetime.Consensusisaboutpleasingasmany
peopleasfaraspossible.Thebestsolutions,inreality,aretheoneswhichleavenobodytoodispleased.
Inanidealworldyoucouldpleaseeveryoneequallyandcompletely.Butthisworldisnotideal,andthe
realitiesdictatethattopleaseonepersonyouwillusuallyhavetodispleasesomeoneelse.
Thisiswhyyouhaveconcessions:ifyoupushfor100%,itispossibletoendupwith0%.Itismuch
better,therefore,tohavetwopartieswhoeachhaveasignificantpercentageofwhattheywant.
Page30

Reachingaconsensusmayhaveabittersweettasteforsomeparties,butitisbettertohave50%of
somethingthan100%ofnothing.

Building an Agreement
Buildinganagreementtakesaspecialskilltheabilitytotranslate
generalitiesintospecifics.Negotiatorsshouldrealizethatatthisstageofthe
processthebargainingisover.Theyshouldtrytocreateanagreement
basedonafairandaccurateinterpretationoftheconsensustheparties
havereached.Atthesametimetheywanttobecarefultheydonot
inadvertentlygivesomethingupbynotpayingcloseenoughattentiontothe
writtenagreement.
Sometimesinnegotiations,therecanbeatendencytoarriveatcertainprincipleagreementsandthink
thatthejobhasbeendone.Thereismoretonegotiationthanofferingaconcessionhereandstipulating
alimitthere.Ifyoumakethemistakeofthinkingthatthenegotiationprocesshasironedoutallofthe
problemsinadeal,thenyouwillfindthatthereisanastyshockwaitingforyouwhenyoucometo
formalizetheagreement.
Itmayhelptothinkofthenegotiationprocessasanewsbroadcast.Itisgreattohaveheadlinesthatwill
makepeoplesitupandtakenotice,butinorderfortheseheadlinestoactuallyhaveanymeaningitis
necessarytowritethestories.Whilethebasicprincipleagreementreachedinthenegotiationroomwill
betheheadline,andwhatsticksinpeoplesminds,itneedstobebackedupwithdetails.Agood
negotiationsteamwillhaveatleastonedetailsguy(orgal)whoisabletogetthesmallprintinplace
afterthenegotiatorshaveputtheoutlineinfrontofthem.

Setting the Terms of the Agreement

Weareallfamiliarwithwhatcanhappenwhenthetermsofanagreementarenot
clearlyspelledout.Forexample:
Twoemployeesagreeontheirindividualresponsibilitiesforupdatingtheir
companyswebsite.Aweekgoesbyandnothinghashappened.Eachpersonwas
waitingfortheotheronetotakethefirststep.Theyhaddefinedtheir
responsibilitiesbuttheyhadnotformulatedaplanforcarryingthemout.
Foranagreementtobesuccessful,alltheessentialtermsmustbeclearlystatedinwriting.Itisquite
onethingtohaveanagreementintheorybutitwillbeessentiallymeaninglesswithoutthe
practicalities.Theagreementwhichemergesattheendofnegotiationsneedstobebackedupwiththe
howfactor.Whatemergesfromtheinitialnegotiationiswhatyouaregoingtogo,andpossiblywhen.

Page31

Thehowisthemostimportantofall,though,aswithoutthefirmdetailsofhowyouaregoingtoput
everythinginplaceyoucanagreewhateveryouwantanditwillnotmatter.

Page32

All things are difficult before they are easy.

Thomas Fuller
Module Nine: Dealing with Difficult Issues
Mostpeoplearewillingtonegotiateingoodfaith.Theydont
resorttotricksorintimidation.Everyonceinawhile,though,
youmightencountersomeonewhotakesalessprincipled
approach.Youneedtobepreparedtodealwithpeoplewho
dontplayfair.Itisnotcynicismtoprepareforthepossibility
thatsomeonewilltrytobendtherules,especiallywhenthose
rulesareunwritten.Itissimplygoodpreparation,andrealism.
Somepeopleareunscrupulous,butifyouknowhowtohandle
themitneednotbetheendoftheworld.

Being Prepared for Environmental Tactics

Usingenvironmentaltacticstogainanadvantageinanegotiationdoesnthappen
thatoften,butnegotiatorsneedtobepreparedforit.Oneratherobviouscaseis
theexecutivewhorefusestocomeoutfrombehindhisdeskandforcestheother
sidetositinvisitorschairs.Ifthisshouldhappen,thebestresponsemightbe,
Imsorry,butIneedsomespacetospreadoutmynotes.Isthereaconference
roomavailable?
Thehostofthenegotiationsisinapositionofpower.Todenythatthisisthecasewouldbewhollynave
andcounterproductive.However,thewaytheyusethispowerwilldifferbetweenhosts.Sometimes
youwillcomeupagainstahostwhoturnsconditionstotheiradvantage,andifyoudonotatleastsay
somethingaboutityouruntheriskofyouropponentfeelingthattheycandoandsayanythingand
getawaywithit.Evenifyoumerelymakearequestforanimprovementintheconditions,youwillmake
themawarethatyouhavenoticedwhattheyhavedone.
Itmaybethatyoufeelyoucandealwithanyenvironmentaltacticsthatarethrownatyou.Ifyoushow
anabilitytonegotiatecompetentlydespitetheconditionswhichhavebeenfoisteduponyou,thismay
wellwinyoutherespectofyouropponent.Youshouldnothavetodothis,though,anditissensibleto
putyouropponentonnoticethatyouwillnotbemessedaroundpolitely,butfirmlyifnecessary.

Page33

Dealing with Personal Attacks

Anynegotiationwillbemoreproductiveifyouareabletofocusonproblemsand
notpersonalities.Unfortunately,theotherpartiesinthenegotiationmaynot
takethisapproach.
Thereareanumberofreasonswhynegotiatorssometimesengageinpersonal
attacks:

Theymaythinkthatthistypeofbehaviorwillgivethemanadvantageinthenegotiation.

Theymayseeanydisagreementwiththeirpositionasathreattotheirselfimage.

Theymayfeelthattheyarenotbeingtreatedfairlyorrespectfully.

Sometimesyoucanavertpersonalattacksbydemonstratingfromtheverystartthatyourespectthe
otherpartiesandtheirpositions.Arespectfulopeningsetsapositivetoneforthenegotiation.
Iftheotherpartyresistsyoureffortstoestablishanatmosphereofmutualrespect,youmighttrysaying
somethinglike,Letsgetbacktotheissues.Iftheotherpartystillengagesinpersonalattacks,itmay
betimetosuspendthenegotiation.Personalattacksareneverhelpful,althoughtheremaybesome
peopleontheoppositesidewhofeelthatbyactingorspeakinginanabusivemannertheycan
intimidateyou.
Theadvicegivenbymanyaparenttothechildwhohasbeenthesubjectofteasingintheschoolyard
doesapplyhere.Whatsomeonesayssomethingagainstyou;itoftensaysmoreaboutthemthanitdoes
aboutyou.Itiswisetotakeaccountofthefactorswhichhaveledtotheirbehavioritmayhavecome
ataparticularlyemotionalpointinnegotiations,ortheymayjusthavebeenattemptingtoassertsome
kindofsuperiorityoveryou.Bymaintainingyourdignity,youwillbeheldinhighregard.
Ithelpsnooneifyourespondinkindtopersonalattacks.Allthatwilldoisgivethepersonwhoattacked
youthereactionwhichtellsthemthattheyhavescoredadirecthit.Youwilldobetterbysimply
requestingtogetonwithnegotiationsandignoreunhelpfulcontributions.Itmayseemlikeanattempt
tobackoutofaconfrontation,butitisnosignofweaknessifyourefusetorespondtochildishness.

Page34

Controlling Your Emotions

Recognizingandcontrollingemotionsisanaspectofemotionalintelligence.
Emotionalintelligenceisdifferentfromwhatmightbecalledacademicintelligence,
thetypeofintelligencethatenablessomepeopletogetgoodgradesinschooland
scorewellonstandardizedtests.Moreandmorepeoplearerealizingthatittakes
morethanjustthistypeofintelligencetosucceedintheworkplaceandinlife.
Inanegotiation,emotionalintelligenceinvolvesrecognizinghowyouandtheotherpartyare
respondingemotionallytothediscussion.Iftheemotionaltemperatureintheroomseemstobeheating
up,youmaydecidethatitstimetotakeabreak.Thereislittlebenefittoallowinganegative
atmospheretobuildinaboardroomandturnintosomethingwhichcantorpedonegotiationsata
delicatestage.
Youwillrecognizewhentheemotionaltemperatureisrisingbeyondwhereitshouldbe,because
discussionswillbecomelessfocused,voiceswillberaisedandthesilenceswillbeallthemoresilent.At
thispointinnegotiationsitmightbewisetosuggestashortbreakforeveryonetogoandhaveacoffee,
ortakesomefreshair.Youcanthencomebacktothenegotiationswiththeatmospherecleared
somewhatandtrytomakesomeprogresswithouttheriskofpeoplelosingtheirtemper.

Deciding When Its Time to Walk Away

Itwouldbewonderfuliftheatmosphereofeverynegotiationwaswarmand
friendly,butthatsnotthewaythingsworkintherealworld.Bytheirverynature,
negotiationsinvolveakindofadversarialrelationship.Foranegotiationtoproceed,
thetwopartiesdonotneedtohavefriendlyrelations,buttheydoneedtokeep
personalconflictsandunfairtacticsfrominterferingwiththeprocess.
Itstimetowalkawayfromanegotiationif:

Theotherpartymakesyoufeelthreatenedorextremelyuncomfortable.

Theotherpartyusesunfairtacticsthatmakeitimpossibletohaveanequitablenegotiation.

Youmayfeellikewalkingawayisanadmissionofdefeat,andthismayinspireyoutotryandmake
thingsworkevenwhentheprospectofthathappeningisbecomingmoreandmoreremote.However,
therearetimeswhentheotherpartysimplycrossesaline,andyouwouldbewelladvisedtoshowthem
thatthisisnotgoingtobepermitted.Callinganendtothemeeting,withaninvitationtorecommence
negotiationsatalaterdate,maybethebestthingforeveryone.
Somenegotiatorsusetacticswhicharesimplyandpurelythreateningtotryandensurethatyoubendto
theirwill.Thereasonthatmanypeopledothisisbecauseitoftenworks.Itwill,however,onlyworkifit
isallowedtowork.Ifpeoplewalkedawayfromnegotiationseverytimesomeonetriedtocheatthemor
Page35

intimidatethem,thenthatkindoftacticwoulddieout.Itisgoodtohaveprinciplesinthisregard,
becausenooneevergotagooddealbymakingconcessionstoathreateningnegotiator.

Page36

Use soft words and hard arguments.

English Proverb
Module Ten: Negotiating Outside the Boardroom
Negotiatingisntjustsomethingthattakesplacein
conferenceroomswithpowerfulforcesalignedoneither
sideofatable.Peoplehaveinformalnegotiationsevery
daywiththeircoworkers,merchants,evenfamily
members.

Adapting the Process for Smaller Negotiations

Someoftheprinciplesofnegotiationcanbeusefulineverydaysituations.For
example:

Separatethepeoplefromtheproblem.Dontletpersonalitiesgetinthe
wayofnegotiating.

Focusoninterests,notpositions.Considerwhatbothpartieswantand
need.Dontletadherencetoaparticularpositionnarrowtherangeofoptionsyouarewillingto
consider.

Expandtherangeofoptions.Onewaytoovercomeanimpasseinanegotiationistoexpandthe
rangeofthediscussion.

Statethetermsofanagreementinspecific,clearterms.

Evenifyouarenotinatraditionalnegotiationposition,itcanbehelpfultousetheprinciplesof
negotiationtobringyouapositiveoutcomeineverydaylife.Makingdecisionsinthehome,youwillfind
thatresultscanbefoundwhicharetothebenefitofallpartiesbyusingtheseprinciples.Itshouldbe
addedthatyouwouldbeilladvisedtousetheseprinciplesforeverydecisionbutwherethereissome
difficultyinreachingadecision,youcanreachapositiveoutcomebytakingintoaccountsomesound,
decentprincipleswhichhaveforyearsbeenusedtoreachpositivedecisions.

Page37

Negotiating via Telephone

Thephonecanbeaconvenientvehiclefornegotiations,especiallywhenthetwo
partiesfinditdifficulttomeetinperson.Butinmanycasesanagreementreached
overthephoneneedstobeconfirmedthroughsomeothermethod.
Forexample,supposeyouhaveaphoneconversationwithacoworkerinwhichyou
bothagreetodocertainthingswithinthenextweek.Aweekgoesbyandtheother
personhasnotdonewhatheagreedto.Youcallhimandhereplies,Ididntagreetothat.Itwould
havebeenbettertofollowupthefirstphonecallwithanemailmessagethatbegins,Ijustwantto
confirmwhatweagreedtodoinourphoneconversation.
Whenyouarriveatapositiveconclusionfromaphonenegotiation,itcanbetemptingtojustholdonto
yourbeliefthatyouhavegottherightresult,butevenifyouhaverecordedthecallanunscrupulous
counterpartcantrytobackoutofitiftheyfeeltheyhaveplausibledeniability.Geteverythingnailed
downbyfollowingup,andyouwillbeabletoputthedealintherecordbooks.Itiscommonsenseto
keepeverythingregulatedandavoidanydifficultiesfurtherdowntheline.
Inordertonegotiateeffectivelyonthetelephoneweneedtoconsiderafewrulesthatalsoapplyto
facetofacenegotiation:

Payattentiontoparticularpoints.

ListenActively.Don'tinterrupttheotherparty;don'tspendyour'listeningtime'figuringout
howyou'regoingtorespondtothemwhentheyfinallystoptalking.Thebetteryoulisten,the
betteryoucanlearn,andthemorelikelyyouwillbeabletorespondinawaythatimprovesthe
negotiation'sresult.

Don'tlettheimmediacyofatelephonecallforceyouintofast,unwisedecisions.Thereis
nothingwrongwithrequestingmoretimetothinkaboutthetermsdiscussed.

Negotiating via Email

Emailcanbeaneffectivemethodofcommunication,butishassomeinherent
limitations.
Ingeneral,itisappropriatetouseemailinanegotiation:

Whenthetopicisclearlydefined.

Whenthetopicdoesnotrequireextensivediscussion

Whentheexpectedresponseisrelativelysimple

Whenthereislittlepossibilityofmisunderstanding

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Itisnotappropriatetouseemail:

Whenthetopiciscomplex

Whenthetopicrequiresextensivediscussion

Whenthetopichasgreatpersonalsignificanceforthepartiesinvolved

Whenthetopicislikelytostirupstrongemotions

Emailhasbecomeaverypopularwayofkeepingdiscussionssimpleandstraightforwardbothin
businessandpersonalcommunications.However,therearelimitationstoitanditisimportanttobe
awareoftheselimitations.Keepingcommunicationssimpleandsomewhatinformalcanbehelpful,but
itshouldberememberedthatwaitingonanemailcanbefrustrating.Ifmultiplecommunicationsare
required,itisbesttokeepthingsfacetoface.
Whatemaildoeshavegoingforitinanegotiationframeworkisthatitkeepsarecordofeveryemail
sentandreceived,alongwithdatesandtimesallowingeverythingtobeofficial.Ifyouhavearelatively
simpledetailortwotobefinalized,emailisfine.Ifyouhaveasituationrequiringafullnegotiation,e
mailshouldonlybeusedasapreparationaidandaformalconfirmationofthingsdecidedinafull,face
tofacenegotiation.

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To succeed as a team means to hold all of the

members accountable for their expertise.
Mitchell Caplan
Module Eleven: Negotiating on Behalf of Someone Else
Negotiatingonbehalfofsomeoneelsepresentssomespecial
challenges.Whenyoubeginsuchanegotiation,youneedtohavea
clearideaofyourWalkAwayPrice(WAP)andtheconcessionsyou
havepermissiontomake.Youalsoneedtobesureyouunderstand
theissueswellenoughtorespondtotoughquestionsthatmaycome
upinthenegotiation.
Ifyouareassemblingateamtoassistinthenegotiation,youneedto
selectpeoplewhohavetheexpertiseandthetemperamenttomove
thenegotiationforward.Itisnotunlikeselectinganarmyunit,in
someways.Whengoingintobattle,youwanttohavepeoplenearby
whowillensurethatyourinterestsareprotected.Itissaidthatachainisonlyasstrongasitsweakest
link,andthisisagoodprincipletotakewithyouintonegotiations.

Choosing the Negotiating Team

Anessentialpartofleadingateamofanykindissharinginformation.Teams
needinformationtothrive.Beforethenegotiation,holdameetingwiththe
teamtomakesureeveryonehastheinformationtheyneedtomakean
effectivecontribution.Youcanalsousethesemeetingsto:

Remindeveryoneoftheteamsgoals

Ensurethateveryoneunderstandshisorherroleinthenegotiation

Createagameplanforthenegotiation

Youdonotwanttoapproachnegotiationswithateamcontainingsomeonewhoisunawareoftheirrole
oroftheoverallgoal.Ifthereisuncertaintyintheteam,itwillspreadquicklyanditwillcertainlybe
pickeduponbyyourcounterparts.Thiscanleadtoyoubeinghamstrungintermsofyourbargaining
power,becauseateamwithaclearlydefinedbriefandallitsmembersfullyapprisedoftheplanwillbe
abletopullconcessionsfromonewithchaosinitsranks.
Havingateamwithclearlydefinedrolesandaclearlydefinedgoalissomethingthatwillbeanassetin
anynegotiations.Themorepeopleyouhave(aslongastheyareprofessionalandawareoftheir
position),themoretalentsatyourdisposalandthemoreroomformaneuveryouwillhavewhenit
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comestointensivenegotiations.Whatyouwantisasituationwheretwoheadsarebetterthanone,
ratherthanonewheretoomanychefsspoilthebroth.

Covering All the Bases

Somenegotiationsaresocomplexthatitisdifficultforonepersontomasterallthe
issues.Inthesesituationsitisworthwhiletoassembleateamofexpertstomake
sureallthebasesarecovered.Aswithanyteam,itisimportantthateachperson
knowsexactlywhatheorsheisresponsiblefor.Whatisgainedthroughhavinga
dedicatedteamdesignedtoachievethebestnegotiatingmusclecanbelostthrough
havingpeoplewhoareunawareoftheirrolesorunclearonwhattheycanand
cannotdeliver.
Itisbeneficialtohaveateamwhofeelthattheycanmakedecisionswithanelementofautonomy.This
willallowthemtooperatenaturallyinanegotiationwithlittlefearthattheymightoverstepthemark.
However,itisimportanttohavesomelimitationstotheirautonomy,astheyarenotnegotiatingfor
themselves.Thereisaneedforbalanceinthesesituations.Iftheyfeeltheirhandsaretiedandthey
cannotmakeadecisionwithoutreferringbacktoyou,theywillbepowerlessinnegotiations.Iftheyfeel
thattheyhavefreereinandcandowhatevertheywant,theymaymakeadecisionwhichyouwouldnot
havemadeyourselfandwhichdamagesyourposition.Findingthepointinbetweenwhereyoucanbe
confidentthattheirdecisionswillbenefityouisessential.
Aswithsomanyissues,itisimportanttogetthebalanceright,ascomplexnegotiationshaveatendency
tobreakdownorendinanunpopularagreementiftheyarenothandledcorrectlyandwithasenseof
commonpurpose.Ifyougetyourteamright,youcanensureatleastthatyouarenotthenegotiator
whoendsupwithanunpopulardealonyourhands.

Dealing with Tough Questions

Herearesomepossiblewaystorespondtoquestionsthatyoudeclinetoanswer:

Suggest(inafriendlyway)thatthequestionisirrelevant.Forexample,you
mightsay,Imnotsurehowthatquestionfitsinhere.

Sayyoudontknowtheanswer.Thisisthebestcourseofactiontotakeif
youreallydontknowtheanswer.Thisapproachisbetterthanguessing.As
anextstep,youmightsaythatyouwillfindouttheanswerandgetbackto
thequestionerwithinadayortwo.

Saythatyouwouldliketowaittorespondtothequestionuntillaterinthenegotiation.Thisis
thebestthingtodoifyouranswerwillrevealtoomuchaboutyourpositiontoosoon.

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Replywithaquestionofyourown.Thismayhelpclarifythemotivationofthequestioner.(What
isthequestionerreallyasking?)

Eachoftheseapproachesisawaythatyoucantakethequestioninyourstrideandbeseentobegiving
ittheconsiderationitdeserves,withoutgivingananswerthatwillputyouonthebackfootintermsof
negotiations.Peoplemayaskyoudifficultquestionsinordertotrapyou,orbecausetheirownposition
isuncertainandtheywanttofindawaytoclarifyit.Howyouhandlesuchquestionswillbeimportant,
butaslongasyoushowcertaintyandadesiretobestraightwiththem,youneednotloseconfidence.

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Success usually comes to those who are too

busy to be looking for it.
Henry David Thoreau
Module Twelve: Wrapping Up
Althoughthisworkshopiscomingtoaclose,wehopethatyour
journeytoimproveyourprojectmanagementskillsisjust
beginning.Pleasetakeamomenttoreviewandupdateyour
actionplan.Thiswillbeakeytooltoguideyourprogressinthe
days,weeks,months,andyearstocome.Wewishyouthebestof
luckontherestofyourtravels!

Words from the Wise

JohnF.Kennedy:Letusbeginanew;rememberingonbothsidesthatcivilityis
notasignofweakness.Letusnevernegotiateoutoffear,butletusneverfearto
negotiate.

HenryKissinger:Eachsuccessonlybuysanadmissiontickettoamoredifficult
problem.

TomPeters:Underpromise;overdeliver.

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