Negotiating Skills

Negotiation The Skill for

living
Personal Negotiations
Professional Negotiations
Political Negotiations
Social Negotiations
Religious Negotiations
 The Nature of
Negotiation
The bargaining process through which buyers and sellers
resolve areas of conflict and/or arrive at agreements is
called negotiation.
Areas of conflict may include minor
issues (e.g., who should attend future meetings) as well
as major ones (e.g., cost per unit, exclusive purchase
agreements).
The ultimate goal of both parties should be
to reduce or resolve the conflict.
Negotiation Process
Time Allotment
As you are probably aware, negotiations can take a
tremendous amount of time. Some business
negotiations
take years to work out. But how much time should be
set
aside for one negotiation session?
Depends on the objective and how well prepared you
are.

Negotiation Objectives
Power is a critical element when developing
objectives. The selling/purchasing team must ask,
Do we need them more than they need us?
What part of our service is most valuable to them?
Can they get similar products elsewhere?
In the optimal situation, both parties share balanced
power, although this is rare in practice.
The negotiator must answer four
planning questions:
What is the minimum that I can accept?
What is the maximum I can ask for without
getting laughed out of the room?
What is the maximum I can give away?
What is the least I can offer without getting
laughed out of the room?
Principled Negotiation
Principled negotiation suggests that you
decide issues on their merits rather than
through a haggling process focused on what
each side says it will and wont do. It suggests
that you look for mutual gains wherever
possible.

Principle negotiation has four prescriptions:

People: separate the people from the problem
Interests: focus on interests, not positions
Options: generate a variety of possibilities
before deciding what to do
Criteria: insist that the result be based on
some objective standard
 Qualities of a Good
Negotiator
What do you think are the skills/ qualities of a
good negotiator?
 Qualities of a Good
Negotiator
The skills required for successful negotiation
include:

1. Assertiveness
2. Inventing Creative Options
3. Dealing With Emotion and Conflict
4. Gaining Agreement and Commitment
5. Discovering Interests and Common
Ground
 Qualities of a Good Negotiator
(Cont.)
1. Developing Win Win Solutions
2. Questioning Skills
3. Listening Effectively (including summarizing
and reflecting)
4. Understanding Body Language
5. Establishing Rapport
 The Original 8-steps
1. Prepare
2. Argue
3. Signal
4. Propose
5. Package
6. Bargain
7. Close
8. Agree
 Preparation- ECQ
Jewel in the crown of effective negotiation. Get the eleven
crucial questions right and your performance in
the negotiation dramatically improves.

1. What are my interests?

2. What are the issues? Itemize the details for
negotiation.
3. What do I want for each issue?
4. How important is each want to me? Prioritize them.
5. What are my entry offers? Quantify them.
6. What are my exit offers?
7. What might the other negotiators want?
8. What might be their entry offers?
9. How might they prioritize their wants?
10. What is my strategy? Keep it simple.
11. What happens if it is not working? Select a fall-back
strategy.
Deal And Communicate Effectively:
Map Your Strategy First
A key to negotiation is knowing the other side's
primary needs
and secondary wants - and using the latter as
bargaining
chips.

One way to nail down those needs? Create an "interest

map" - a list of the opposing stakeholders, their
interests in
the outcome, and the reasons behind them.

Define terms. Before creating the map, define who

the
stakeholders are. They could range from a small
management team to
suppliers, customers, and a leadership pool that
Deal And Communicate Effectively:
Map Your Strategy First
Chart the map. List the stakeholders
horizontally
across a large sheet of paper or flipchart,
and group
them by their relationship to each other.
Below
each stakeholder, list his interests in order of
importance.

Be creative. When listing interests, be

open-
minded. You may hit on a need that's not
Deal And Communicate Effectively:
Map Your Strategy First
List hot-button issues. Certain ones are so
emotionally charged, they should be avoided.

Do a reality check. When you've done your first

draft,
narrow the list of stakeholders by getting input from
co-
workers and your side's negotiating team.

Ask questions. Don't go into the negotiation

thinking you
have all the answers. An interest map outlines your
best
 Getting to the Point with Interest-
Based Negotiations
What interest-based negotiations do, in a nutshell,
is determine what both parties' interests are and
any other special interests they might represent. In
other words, it isn't what they want, but why they
want it
that's more important.

Do your homework
Practice what you preach
Don't rush to judgment
No pigeonholing
Be flexible.
 Self-Realization Reaching Your
Negotiators Needs Potential
Psychological Independence
Creativity
Need Hierarchy Self-Expression
Esteem Responsibility
Needs Self-Respect
Recognition
Sense of Accomplishment
Social Companionship
Needs Acceptance
Love and Affection
Group Membership

Safety Security for Self and Possessions

Needs Avoidance of Risks
Avoidance of Harm
Avoidance of Pain
Physical Food
Needs Clothing
Shelter
Comfort
Self-Preservation 16