Negotiation

Skills
 Workshop Objectives

• Gain awareness on the impact of various attitudes

in the negotiation context

• Learn & retain the core elements of the planning

stage

• Manage expectations, build

rapport & exchange ideas effectively
 Workshop Objectives…contd.

• Select the right tactic for the right situation

• Perceive, evaluate & resolve conflict in a

negotiation context

• Learn the subtle nuances of closing the

negotiation process
 I

The Attitude
Component
Approach to Negotiation

Win – Lose (Competitive)

Win – Win
(Collaborative)
 Bargaining Strategies

W
Los
in

in

in
W

W
e

Distributive Integrative
 Goals
Get as much of pie as possible
Expand the Pie
Motivation
Win Lose
Win Win

Focus
Positions
Interests
Information
Sharing
Low
High Distributive
Duration of
Relationships
Short Term
Long Term Integrative
Interests Based Negotiations

1 2
Separate People Focus on Interests,
From Problem not Positions

4 3
Invent Options for Insist on
Mutual Gain Objective Criteria
 IBN…contd.

IBN : Appropriate when IBN: Unnecessary when

• Other party willing to solve • On going relationships are

the problem not important
• Sufficient trust & • Negotiation viewed as
information strictly distributive
• On-going relationships are • Lack of commitment to
important problem solving of one or
• Commitment to carry out more parties
the agreement • One or more parties see
• Quality agreement is more negotiation as involving
important than an fundamental rights
expedient one
 II

Planning
&
Preparation
 Steps to Follow…
A
Clarify other party’s objectives
B
Information Gathering

C
Action Plan

Analyzing the situation

Setting Objectives

Develop a strategy
Determine Tactics
Determine time frame
D
The Actual Negotiation
 Focus on the Power of Information

• Ask questions
• Where & when you meet your opponent will be a
deciding factor
• Let your source understand that information is to
make negotiations smoother
• You are not the only one gathering information –
So, beware!
• Validate the information
• Information is powerful to gain concessions

Information gathering takes place before

the negotiation starts
 III

Managing Expectations
Building Rapport
Exchanging Information
 To Empathize…

Establish trust & confidence

Listen pro-actively

Acknowledge the speakers feelings

Display your understanding of the speaker’s needs

Request for more information. Probe for details

Offer assistance
 To Set Expectations…

• What are we buying? • What price would we like

to pay?
• Do we have the
• What should we look for
authority to purchase?
other than price?
• Whom do we buy from • What concessions can we
and Why? offer the supplier?
• How much do we want? • How important is our
• When do we want it? purchase to the supplier?
• What max. price are we • What problems have we
prepared to pay? had with this particular
supplier?
• What are the pressures on
the supplier to get the
order?
 Flaws in the Listening Process

SELECTIVE
A
TTENTION RETENTION

PERCEPTION
 Empathetic Listening

1. Suspend Judgment 2. Seek Clarification

Ignore your filters Verify, Seek, Clarify additional
data, Detail, Doubts

5. Attending Skills 3. Paraphrase

Display interest-nodding, Restating what another has
Uh-huh, Eye Contact said in your own words

4. Summarize
Pulling together the main
points of a Speaker
The Art of Questioning & Probing

• Closed-ended Questions
• Open-ended Questions
• Follow-Up Questions
• Leading Questions
• ‘Take-a guess’ Questions
• Hypothetical Questions
• Either-or Questions
• Reflective Questions
• ‘Find the Priority’
Question
Probing Techniques
 IV

The
Skill
Component
 Negotiation Tactics

Master the Flinch

Feel/Felt/Found Theory
The want it all approach
First offers

11
Employ the vise
Get the other side to make the first offer
Get smart play dumb
The trade-off
The Hot Potato
Tactics
Good cop, Bad cop
Decoy and Red Herring
 BATNA

In most situations:

• Rule 1 – You usually can’t satisfy your interests unless

you also satisfy our opponents

• Rule 2 – While it may not be possible to obtain your

position, it is often possible to satisfy your opponents

• Rule 3 – Your BATNA is your best alternative to a

negotiated agreement. It is your best way of satisfying
your interests without the others agreement

contd.
 To Identify Your BATNA, consider…

1. What can you do all by yourself to pursue your

interests?
your walk away alternative

2. What can you do directly to your opponent to

make him respect your interests?
your interactive alternative

3. How can you bring a third party into the situation

to further your interests?
your third party alternative
 V

Negotiator’s
Personality Styles
 Negotiation Personality Styles

A] Pragmatic

•Bottom line person Style

•Likes facts •Very efficient
•Conscious of time •Hard Working
•A doer not a watcher •Very active
or listener
•Decisive
•Looks for results
 B] Extrovert

•Easily motivated
Style
•Generally warm
•Friendly & open
•Easily impressed
•Emotional
•Gets excited with big
projects •Excited

•Good started, slow •Decisive

finisher •Humorous
•Disorganized •Assertive
•Greets everybody •Motivator
 C] Amiable

•Loves to have people

around them all the
time
Style
•Less analytical
•Friendly & open
•Powerful sensitivity to
problem •Emotional
•Easily grounded •Excited
•Decisive
•Humorous
•Assertive
•Motivator
 C] Analytical
•Usually very thorough
people
•Like details, options &
diverse options
Style
•Like illustration,
•Use information
statistics, graphs,
charts •Work consciously
•Wants to know roots •Rely on facts & figure
of problem
•Very functional
•Very precise
•Slow decision
 Relationship Model

ANALYTICAL PRAGMATIC

AMIABLE EXTROVERT

In a negotiation situation, you will always have the

most difficulty with the personality diagonally opposite
you on the chart
 VI

Managing Conflict
During Negotiations
 Conflict

The sharp disagreement and opposition of ideas

The emotional disturbance resulting from a clash

of interests
Handling Conflicts
Styles of Conflict Management
 VII

Closure
&
Follow Up
In any negotiation the object is not to
beat your opponent, but to creatively
reach an agreement in which each
negotiator can feel a winner

THE WIN – WIN APPROACH

 A good Negotiation is when…

• Both parties can walk away from the deal feeling as

though they accomplished something important

• There is the feeling that both sides have each cared about
the objectives of the other

• Each side believes that negotiations were conducted fairly

• Each negotiator feels that he would enjoy dealing with the

other at sometime in future

• Each party believes that the other is determined to keep

to the commitments made in the contract.
 5 Differences – Winning & Losing
Negotiator

Narrowing to One issue

Feeling Weak

Jump to Conclusions

Lack of Information

The opponents position

You can get anything you want in life, but you have to do more than ask,

You have to Negotiate

 Rules of Negotiation

• Assume that everything is negotiable

• Have high aspirations
• Never accept the first offer
• Create the appearance of strength
• Put what you have agreed on in writing
• Recognize that the other party is probably holding
back valuable information
• Flinch to create doubt in the counterpart’s mind &
add value to a concession
• Find out what your counterpart wants
contd.
 Rules of Negotiation
• Make eye-contact
• Keep your counterpart in the dark about your strategy and
your stake in the deal
• Try to get your counterpart to lower to lower his/her level of
aspiration
• Ask questions if you do not understand what is going on
• Answer a question with a question to avoid giving away
information needlessly
• Invoke the higher authority to buy more time
• Information is power - get as much as possible
• Verify anything you are told that you do not know to be a
fact
• Be cooperative and friendly
• Use the power of competition. Remember that power can be
real or imaginary
Closing a Negotiation
Dos
 Closing a Negotiation
Don'ts
 Follow Up to Negotiations

Dos

Don’ts

Remember
Key Steps to Closing the Deal
 Common Errors in Negotiation

• Unclear objectives
• Inadequate knowledge of the other sides goals
• Viewing the other party as an opponent
• Insufficient attention to the other party’s concerns
• Lack of understanding of the other side’s decision-
making process
• Non-existence of a strategy for making concessions
• Too few alternatives and options prepared beforehand
• Hasty calculations & pre-mediated decisions
• Failure to take account of the competition factor
• Poor sense of timing for ‘closing the deal’
Review Checklist
Reflect Checklist