Negotiating win-winAn introduction to key ideas in negotiation

Learning outcomesBy the end of todays session, a successful participant will be able to:Discuss a practical model for conducting a successful negotiationProduce a personal negotiation skills audit

What does negotiation look like to you?Where do you negotiate already?

Bargaining stylesWhat kind of a negotiator are you?

COLLABORATIONACCOMMODATIONCOMPETITIONAVOIDANCECOMPROMISESubstantive outcome important?YESNORELATIONAL OUTCOME IMPORTANT?YESNO

Negotiation StylesCollaboration - collaborators are problem solvers - look for win-win to satisfy both sides.Accommodation - accommodators resolve problems by solving the other sides problems. They are prepared to give in on substantive issues to preserve the relationship. They prize strong relationships and love to be liked.

Negotiation StylesCompetition - competitors love the cut and thrust of conflict. Mainly, they love to win! The most aggressive of them see life as a contest with winners and losers.Avoidance - conflict avoiders strongly dislike and avoid the interpersonal conflict that often comes into negotiations. They believe conflict is unproductive. Actively avoid situations of disagreement.

Negotiation StylesCompromising - compromisers strongly believe in fairness and like to maintain good working relationships with others. They are usually prepared to split the difference, rather than fight it out and haggle to the bitter end.It is important that you learn to recognise these styles in yourself and others - so you know how to use them and how to react to them when they are used at you.

Check inLets take some time to process this!In pairs / 3s:Think of two negotiations youve been involved inOne successful & one unsuccessful from your point of view In the light of what youve learned about your negotiating style - how would you now understand what worked for you and what didnt?

A practical formula for successful negotiationR eady yourselfE xplore needsS ignal for movementP robe with proposalsE xchange concessionsC lose the dealT ie up loose ends

Ready Yourself

Set your objectives - what are you trying to achieve?Be clear about your priorities - whats really most important here? What would you be prepared to do without? What concessions are you OK to make?Get as much information as you canFor ALL of these, you need to consider their position as wellPlan your agenda for the negotiation.

Ready YourselfYou need to know your BATNA (this comes from Harvard professors Roger Fisher & William Ury - see bibliography) BATNA = Best Alternative To a Negotiated AgreementIn other words - whats the best scenario for you if you dont make an agreement? The better your BATNA, the stronger your bargaining power.

Ready YourselfYou need to decide before you negotiate:Whats the very best outcome you can hope for?What would you be happy with?Whats the least youll accept? Whats the point beyond which you will not go?Whats your BATNA?Whats their BATNA likely to be?

Explore needsClarify your and the other sides needs - FIRST (before you make any offers)Test out your assumptions Build rapport to lay the foundations of a win-win situationExchange first offers / positions.

First offersPitch high - but reasonable - be able to explain and justify your offerYour opening position will also depend on the desired outcome, and how important an ongoing relationship is with the other sideYoull never get more than you first ask for! :-)

Youll never get more than you ask for!Brian Epstein - managed The BeatlesAsked the producers of A Hard Days Night for 7.5% of the films profitsThey agreedOnly, they had been prepared to pay 25% ...

Talking about asking ... Beware the Gender trap!Men initiate negotiations about 4 times more often than women.Women tend to be more pessimistic about whats possible, and come away with on average 30% less when they negotiate.20% of women say they NEVER negotiate.When they start their first job, 57% of men haggle over their salary. Only 7% of women do. (You stand to loose 250,000 by age 60 due to this!) Babcock, L. & Laschever, S. (2003) Women Dont Ask: Women and the Gender Divide (Princeton University Press)

Signal for movementThis is where your listening and questioning skills come in!Signal you are prepared to moveLook for their signals & respond to them - aim to build momentumDont close down ... dont give ultimatums ... dont make demands ... do be prepared to say NO and then suggest an alternative.

Probe with proposalsGood advice from Herb Cohen - a highly successful professional negotiatorSuccessful collaborative negotiation lies in finding out what the other side really wants and showing them a way to get it, while you get what you want.

Probe with proposalsMake tentative proposals to see where the other side is likely to make concessionsRepackage rejected proposals into a more acceptable form.

Exchange concessionsNotice that this is about TRADING / EXCHANGING concessionsBe flexible and imaginative - what are the different areas you can bargain on? Price? Time? Place? Extras? Quality? Guarantees? ...Then ... aim high. Make credible offers. Concede slowly but fairly. Make sure the other side concedes too. Keep track of all concessions.

Close the deal!Look for closing cuesLearn when to STOP! Do not over-sell!!Dont get rattled as you near the endUse listening and silenceMake a credible and acceptable close.

Tie up the loose endsConfirm whats been agreedGet it on paperHave an agreed plan for next steps.

BibliographyThe main text Ive used for todays model (because it is short, readable and full of good advice!) is: Mills, H. (2005) The Streetsmart Negotiator (New York, American Management Association)

Bibliography3 other classic negotiation books:Fisher, R. & Ury, W. (2003) Getting to Yes (London, Century Hutchinson)Kennedy, G. (1999) Everything is Negotiable (London, Arrow Books)Shell, G. Richard (1999) Bargaining for Advantage: Negotiation Strategies for Reasonable People (New York, Penguin Group)

HomeworkGo out and negotiate something this week!Evaluate how it went, asking yourself questions like: how did you feel? how well did it go? what would you change? what have you learned from the experience? ... etc ...

Learning outcomesBy the end of todays session, a successful participant will be able to:Discuss a practical model for conducting a successful negotiationProduce a personal negotiation skills audit