Negotiation Skills[1].2 Days.voltas

8/8/2019 Negotiation Skills[1].2 Days.voltas

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Ne

gotiation

Skills


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Workshop ObjectivesWorkshop Objectives

Gain awareness on the impact of various attitudesin the negotiation context

Learn & retain the core elements of the planningstage

Manage expectations, buildrapport & exchange ideas effectively


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Workshop Objectivescontd.Workshop Objectivescontd.

Select the right tactic for the right situation

Perceive, evaluate & resolve conflict in anegotiation context

Learn the subtle nuances of closing the

negotiation process
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I

The Attitude

Component


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Approach to NegotiationApproach to Negotiation

Win Lose (Competitive)

Win Win(Collaborative)


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Bargaining StrategiesBargaining Strategies

Distributive Integrative

Win

Lose W

inWin


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Get as much of pie as possible

Goals

Expand the Pie

Win Lose

Motivation

Win Win

Positions

Focus

Interests

Low

InformationSharing

High

Short Term

Duration ofRelationships

Long Term

Distributive

Integrative


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Interests Based NegotiationsInterests Based Negotiations

1Separate People

From Problem

2Focus on Interests,

not Positions

4

Invent Options forMutual Gain

3

Insist onObjective Criteria


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IBNcontd.IBNcontd.

IBN : Appropriate when

Other party willing to solvethe problem

Sufficient trust &information

On-going relationships areimportant

Commitment to carry out

the agreement Quality agreement is more

important than anexpedient one

IBN: Unnecessary when

On going relationships arenot important

Negotiation viewed asstrictly distributive

Lack of commitment toproblem solving of one ormore parties

One or more parties seenegotiation as involvingfundamental rights


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II

Planning

&

Pre aration


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Steps to FollowSteps to Follow

Clarify other partys objectives

A

Information Gathering

B

Action Plan

C

The Actual Negotiation

D

Analyzing the situation

Setting Objectives

Develop a strategy

Determine Tactics

Determine time frame


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Focus on the Power of InformationFocus on the Power of Information

Ask questions

Where & when you meet your opponent will be adeciding factor

Let your source understand that information is tomake 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 beforethe negotiation starts
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III

Managing Expectations

Building Rapport

Exchanging Information


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To EmpathizeTo Empathize

Establish trust & confidence

Listen pro-actively

Acknowledge the speakers feelings

Display your understanding of the speakers needs

Request for more information. Probe for details

Offer assistance


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To Set ExpectationsTo Set Expectations

What are we buying?

Do we have theauthority to purchase?

Whom do we buy fromand Why?

How much do we want?

When do we want it?

What max. price are we

prepared to pay?

What price would we liketo pay?

What should we look forother than price?

What concessions can weoffer the supplier?

How important is ourpurchase to the supplier?

What problems have we

had with this particularsupplier?

What are the pressures onthe supplier to get theorder?


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Flaws in the Listening ProcessFlaws in the Listening Process

SELECTIVE

ATTENTION

PERCEPTION

RETENTION
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Empathetic ListeningEmpathetic Listening

1. Suspend Judgment

Ignore your filters

2. Seek ClarificationVerify, Seek, Clarify additional

data, Detail, Doubts

3. Paraphrase

Restating what another has

said in your own words

4. Summarize

Pulling together the main

points of a Speaker

5. Attending Skills

Display interest-nodding,

Uh-huh, Eye Contact


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Probing TechniquesProbing Techniques


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IV

The

Skill

Com onent


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Negotiation TacticsNegotiation Tactics

Master the FlinchFeel/Felt/Found Theory

The want it all approach

First offers

Employ the vise

Get the other side to make the first offer

Get smart play dumb

The trade-off

The Hot Potato

Good cop, Bad cop

Decoy and Red Herring

11

Tactics


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BATNABATNA

In most situations:

Rule 1 You usually cant satisfy your interests unlessyou also satisfy our opponents

Rule 2 While it may not be possible to obtain yourposition, it is often possible to satisfy your opponents

Rule 3 Your BATNA is your best alternative to anegotiated agreement. It is your best way of satisfyingyour interests without the others agreement

contd.


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To Identify Your BATNA, considerTo Identify Your BATNA, consider

1. What can you do all by yourself to pursue yourinterests?

your walk away alternative

2.What can you do directly to your opponent tomake him respect your interests?

your interactive alternative

3. How can you bring a third party into the situationto further your interests?

your third party alternative


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V

Negotiators

Personality Styles


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Negotiation Personality StylesNegotiation Personality Styles

A] Pragmatic

Bottom line person

Likes facts

Conscious of time

A doer not a watcheror listener

Looks for results

Style

Very efficient

Hard Working

Very active

Decisive


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Easily motivated

Generally warm

Easily impressed

Gets excited with big

projectsGood started, slowfinisher

Disorganized

Greets everybody

B] Extrovert

Style

Friendly & open

Emotional

Excited

Decisive

Humorous

Assertive

Motivator


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Loves to have peoplearound them all thetime

Less analytical

Powerful sensitivity toproblem

Easily grounded

C] Amiable

Style

Friendly & open

Emotional

Excited

DecisiveHumorous

Assertive

Motivator


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Usually very thoroughpeople

Like details, options &diverse options

Like illustration,

statistics, graphs,charts

Wants to know rootsof problem

C] Analytical

Style

Use informationWork consciously

Rely on facts & figure

Very functional

Very precise

Slow decision


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Relationship ModelRelationship Model

ANALYTICAL PRAGMATIC

AMIABLE EXTROVERT

In a negotiation situation, you will always have themost difficulty with the personality diagonally opposite

you on the chart


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VI

Managing Conflict

Durin Ne otiations


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ConflictConflict

The sharp disagreement and opposition of ideas

The emotional disturbance resulting from a clashof interests


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Handling ConflictsHandling Conflicts


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Styles of Conflict ManagementStyles of Conflict Management


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A good Negotiation is whenA good Negotiation is when

Both parties can walk away from the deal feeling asthough they accomplished something important

There is the feeling that both sides have each cared aboutthe 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 keepto the commitments made in the contract.


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5 Differences Winning & Losing5 Differences Winning & Losing

NegotiatorNegotiator

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 toNegotiate


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Rules of NegotiationRules 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 holdingback valuable information

Flinch to create doubt in the counterparts mind &add value to a concession

Find out what your counterpart wants

contd.


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Rules of NegotiationRules of Negotiation

Make eye-contact

Keep your counterpart in the dark about your strategy andyour stake in the deal

Try to get your counterpart to lower to lower his/her level ofaspiration

Ask questions if you do not understand what is going on

Answer a question with a question to avoid giving awayinformation 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 bereal or imaginary


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Closing a NegotiationClosing a Negotiation

Dos


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Closing a NegotiationClosing a Negotiation

Don'ts


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Follow Up to NegotiationsFollow Up to Negotiations

Dos

Donts

Remember


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Key Steps to Closing the DealKey Steps to Closing the Deal


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Common Errors in NegotiationCommon Errors in Negotiation

Unclear objectives Inadequate knowledge of the other sides goals

Viewing the other party as an opponent

Insufficient attention to the other partys concerns

Lack of understanding of the other sides 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


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Review ChecklistReview Checklist


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Reflect ChecklistReflect Checklist


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Documents

Negotiation Skills[1].2 Days.voltas