Cips Negotiation Challenge

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Cips Negotiation ChallengeRound 1


A process through which parties move from their initially divergent positions to a point where agreement may be reached

Negotiation – A definition


HOUSE OF NEGOTIATION

PEOPLE

PERSUASION

PROCESS

PLOYS

3


The warm and tough approachWarm

Cold

ToughEasy

Warm and toughAssertionValue and respectGood communicator

4


• Both groups have 10 minutes to prepare for the negotiation.

• Each group list all the variables you may need in order to persuade the other party to your way of thinking.

Remember you can’t make the other party agree but you can persuade them.

17th birthday – persuasion practice session


• Team A = Parents• Team B = Teenagers approaching 17th birthday

• Parents - You are looking forward to your son/daughters 17th birthday. You have already told them that you have bought them a series of driving lessons. You feel this is an extravagant present as most teenagers have to work and pay for their own lessons.

• Teenagers - You are grateful for receiving driving lessons and appreciate how hard your parents work. However, ALL your friends get driving lessons plus a car for their 17th. You express how you feel and work to persuade your parents you should have a car too.

17th birthday – persuasion practice session


• Be in control of your emotions – don’t let them control you!

• Use from a sincerely held belief• Use early in the negotiation• Use to increase the “perceived value” of your

bargaining• Use to counter logic

Using Emotion


• Don’t be too quick to ask “Why?”• Get your own logic in first• Keep to one powerful argument – don’t dilute• Be credible• If others can’t see it, change tack• Counter logic with emotion

Using logic


• Be slow to threaten• Threaten at the business, not the person• Use a discreet or veiled threat• Never make a threat you can’t …..• Be credible• Add “if” to transfer threat to bargaining

Using threat


• Don’t expose your position early• Don’t put a marker down• Don’t seem too eager to move• Move, in small steps, • Get a return for any concession you make• Thank and bank

Using bargaining


The behaviour of last resort

• 50/50 is not the only compromise• Compromise favours the more extreme party• Let the other party suggest compromise…

…..the one suggesting compromise probably accepts or moves towards the position of the other…..

Using compromise


Preparation & Planning

Opening

Testing

Moving

Concluding

Reviewing

The negotiation cycle


Flipchart interactive exercise

The negotiation cycle


The objective here is….To place you in the best possible position before the

negotiation commences

Preparation ………researching the issues

Planning ….strategy, tactics, logistics

Preparation and planning


We need to set clear targets for each variable• IDEAL

Our ideal settlement, we strive to achieve it – our AIM HIGH figure or STRETCH target!

• REALISTICRealistically we feel that this is where we might finish up!

• FALLBACKThe point beyond which it is not commercially viable to do business

Plan to be flexible as objectives may need to be changed

Preparation and planningobjective setting


OpeningThe Vital First Impression

• Timekeeping• Politeness• Physical appearance and

dress• Personal hygiene

• The hand shake• Eye contact• Smile• The opening words


• To test the validity of the assumptions we have made

• To see where movement in the other party is likely to come from

• To understand what is likely to be expected of us

Testing


Types of question• Open• Closed• Probing• Multiple• Leading• Reflective• Hypothetical

Testing – questioning techniques


To achieve the maximum movement from the other party and make minimum movement yourself, in

relation to your targets

Moving


• Progressive and enthusiastic summary“So we’re agreed on the menus and the opening hours - we’re getting through it, let’s move on”

• Thank and bank“Thank you. I appreciate it. Can we move on to…”

“Thanks for that, I do appreciate the offer, it’s a good move, however could you look again at…”

Encouraging movement


• To reach a workable agreement

• To record what has been agreed

• To agree the next steps

• To condition for next time

Concluding


• comparison with ‘SMART’ targets• extent of plan achieved• what went well / what didn’t• what could I have done better• hard and soft successes• personal, team, organisation or industry patterns

Review


• Share two key learning points

Learning review

Documents

Cips Negotiation Challenge