NEGOTIATION

Outline
1. WHY STUDY NEGOTIATION TECHNIQUES? 2. DEFINITIONS 3. THE NEGOTIATION PROCESS 4. NEGOTIATION FUNDAMENTALS 5. CONCLUSION

Why study negotiation techniques? PEOPLE ARE NOT TRAINED TO NEGOTIATE, WE LIKE TO TAKE CONTROL OF OTHER PEOPLE.
THAT WORKS USUALLY IN MOST OF THE COMPANIES, BUT THIS IS NOT THE CASE IF WORKING WITH OTHER PEOPLE OR COMPANIES.

NEGOTIATION SKILLS ARE ESSENTIAL TO A GOOD LEADER/ MANAGER

Learning objectives
After this SESSION, one should be ready to:
Prepare negotiations. Negotiate, considering major sidefactors.

Negotiation
It is a form of communication known as persuasive communication. In a word, bargaining. Persuasive communication is about getting what you want. Negotiation is about getting the best possible deal: that is, getting what you want in the best possible way.

Difference between negotiation & mediation

NEGOTIATION Try to reach an agreement or compromise by discussion with others. Find a way over or through an obstacle or difficult path.

POWER TO INFLUENCE
There is one additional source of power, one of major significance: confidence. If others believe they are dealing with someone confident, competent, organized and efficient then they may be less certain of their own position.

 Confidence comes from preparation, a structured approach, knowledge, and belief.

Convince yourself of your confidence and you will convince them that you are a power to be reckoned with.

IDENTIFYING NEGOTIATION GOALS

What do I want to achieve? Is this a realistic goal? What does the other party want to achieve? Do we have anything in common? What is my minimum result? What can I concede?

Do you have the same image.

I bought a dog

Oh, really? A large one?

very big. No, not so big.

Is he long hairy?

No, short hair.

And, what kind of colour? Black/white spotted

What a nice dog!

Yes, is he?

Preparing
Set Clear Objectives Identify the other persons needs Identify negotiation elements. (Variables) Decide on concession and their value. (Put a cost against everything you may have to trade). Prepare your stances. Prepare to meet.

PREPARING FOR NEGOTIATIONS

Who am I dealing with?

Learn about their: Positions Interests Perspectives Perceptions Assumptions Expectations Values

CULTURAL DIVERSITIES

iceberg theory above water: RATIO

verbal

WHAT you say: 15 %

below water: EMOTION

non verbal

How you mean: 85 %

Definitions/Types of Negotiations
ZOPA =
Zone Of Possible Agreement. The ZOPA includes the criteria both sides to a dispute can agree upon, and that is sufficient to produce a settlement of the dispute BATNA = Best Alternative To a Negotiated Agreement. The BATNA is the walk away position, or what you are not willing to give up

The Negotiation Process

2. NEGOTIATION PHASE

During the negotiation phase the parties employ one of two bargaining techniques

Distributive bargaining where one side wins, one

side looses. Typically involves manipulation and withholding information Example: Negotiating for land.

Integrative bargaining where both sides win. This

type of bargaining is characterized by the creation of mutual trust based on a positive relationship and shared interests which make allow for a satisfactory ZOPA

Actual Negotiation
The opening talks. Icebreaking:
be patient; remember the customary salutations and exchanges of courtesies (in accordance with the local habit); introduce yourself and your team; outline the framework of the meeting; some introductory small talk may be useful and polite (gives everybody a chance to get used to the way the common language is used and it offers a chance to assess the mood); and offer/take refreshments.

Actual Negotiation
The main talks
if possible let your counterpart start, listen to him, do not interrupt; start with agreement on the agenda; if incorrect information is given, state the actual facts (supported by evidence), but do not argue; state your companys point of view (facts only); if there are differences in points of view, note the view of the counterpart and highlight the point of view of the opposite side.

Trading Concessions
Never give a concession, trade it reluctantly. Build up the value and significance of anything you offer to trade. Reduce the value that the other party puts on anything offered to you.

Actual Negotiation
Make no promises or admissions, unless the situation or your mandate clearly states you can do so. Do not reveal everything about your proposal that could be exploited by the other party. To be impartial and correct are of the greatest importance; Always be restrained if one of the parties expresses a negative view about you, or your proposal.

Actual Negotiation
Make careful reminders about agreements, actual arrangements and past practices; Complete the negotiation by repeating what has been agreed upon, if possible have it confirmed in writing; Agree upon a time and place for further negotiations; Do not forget final polite phrases, etc. Be focused.

Actual Negotiation

Be focused on the topic and your mission!

Ten Negotiation Fundamentals

1. Be able to recognize a negotiation situation

Ten Negotiation Fundamentals

2. Plan and have a concrete strategy. Be clear on what is important to you and why it is important

Ten Negotiation Fundamentals

3. Know your BATNA

(Best Alternative To a Negotiated

Agreement)

Ten Negotiation Fundamentals

4. Separate people from the problem

Ten Negotiation Fundamentals

5. Focus on interests not positions

Ten Negotiation Fundamentals

6. Pay attention to the flow of the negotiation (display results obtained so far)

Ten Negotiation Fundamentals

7. Take the intangibles into account; communicate carefully

Ten Negotiation Fundamentals

8. Use Active Speaking/Listening skills; rephrase, ask questions and then ask some more

Ten Negotiation Fundamentals

9. Create options for mutual gain (WIN WIN)

Ten Negotiation Fundamentals

10. Maintain control; if it becomes worst, consider rescheduling the meeting to a later date

Conclusion
Negotiation is an art not a science Experience is the best teacher Personal study and reflection on your negotiation experiences will make you a more effective negotiator.

EVERYTHING IS NEGOTIABLE EVERYONE IS A NEGOTIATOR.