Unlock the Hidden Power of Your Negotiating Style · Participant Guide | Unlock the Hidden Power of Your Negotiating Style THE FOUNDATION OF NEGOTIATING 05 SECTION don’t get what

Unlock the Hidden Power of Your Negotiating StyleStylePARTICIPANT GUIDE

Phone (515) 339-5899 | Fax (515) 993-1912

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LEGAL DISCLAIMERThe material in this publication is provided “as is.” collector mentor disclaims any warranties, expressed or implied, regarding its accuracy or reliability, and assumes no responsibility for errors or omissions. To the extent permissible by law, collector mentor accepts no liability for any injuries or damages caused by acting upon or using the content contained in this publication. This seminar should not be used as a substitute for competent legal advice. Seminar participants are encouraged to consult their manager prior to implementing any new practices or procedures.

Certain portions of this training program have been adapted from the “Negotiating Style Profile” and “Dealing With Difficult Negotiators” and are presented under license agreement with HRDQ.

Copyright © 2011 collector mentor

P.O. Box 44Adel, IA 50003

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Participant Guide | Unlock the Hidden Power of Your Negotiating Style

Adel, IA 50003

Phone: (515) 339-5899Fax: (515) 993-1912Web: www.collectormentor.com

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Version 2.2 modified for GCRA Conference 2011Last updated August 2011

01© 2011 collector mentor. It is forbidden to copy or transmit this workbook in any manner. Certain portions of this training program have been adapted from the "Negotiating Style

Profile" and "Dealing With Difficult Negotiators" and are presented under license agreement with HRDQ. Unauthorized use, reproduction, or distribution of the material contained in this

workbook is a violation of federal law and punishable by civil and criminal penalty. To obtain reproduction rights, contact [email protected] or (515) 339-5899.

Legal Disclaimer 01

Copyright Notice 01

Learning Goals 03

Today’s Agenda 04

SECTION ONE: THE FOUNDATION OF NEGOTIATING 05How Do You Define Negotiating? 06

Characteristics of Negotiators 06

What Is Negotiation? 07

The Two Universal Concerns 08

Five Negotiating Styles 09

SECTION TWO: UNLOCKING YOUR NEGOTIATION STYLE 15The Negotiating Style Profile 16

Charting Your Results 17


CONTENTS

02

Charting Your Results 17

SECTION THREE: EFFECTIVE COLLECTION NEGOTIATIONS 18Which Style is Preferred? 19

Style Advantages/Disadvantages 20

The Negotiation Waterfall 25

The Collaborative Negotiation Process 26

The Six Interpersonal Skills of a Collaborator 27

Seven Steps for Conducting a Collaborative Negotiation 29

Seven Common Negotiation Pitfalls 30

SECTION FOUR: COLLECTING FROM DIFFICULT CONSUMERS 31Dealing With Difficult Consumers 32

Five Skills for Dealing with Difficult Consumers 32

Three Examples of the Five Skills in Action 38

APPENDIX: ADDITIONAL RESOURCES 42Recommended Reading 43

References 44

© 2011 collector mentor. It is forbidden to copy or transmit this workbook in any manner. Certain portions of this training program have been adapted from the "Negotiating Style



LEARNING GOALSSuccessful completion of this course will increase your knowledge and ability to:

� Discover your primary negotiating style.

� Describe the two universal concerns of every negotiation communication.

� Contrast the five negotiating styles in terms of behaviors and outcomes.

� Identify the pros and cons of each negotiating style.

� Recognize opportunities for flexing or adapting your


03

� Recognize opportunities for flexing or adapting your negotiating style.

� Identify strategies for guiding collaborative negotiations.

� Avoid common negotiation pitfalls.

� Effectively handle difficult consumers using a five step approach.




TODAY’S AGENDA

PART ASection One: The Foundation of Negotiating

• What Is Negotiation?• Characteristics of Effective and Ineffective Negotiators• The Two Universal Outcomes• Five Types of Negotiating Styles

Section Two: Unlocking Your Hidden Negotiation Style• The Negotiating Style Profile• Charting Your Results

PART B


04

PART BSection Three: Effective Collection Negotiations

• Which Style is Preferred?• Style Advantages/Disadvantages• The Negotiation Waterfall• Collaborative Negotiations Overview• The Six Interpersonal Skills of a Collaborator• Seven Steps for Conducting a Collaborative Negotiation• Avoiding Seven Common Negotiation Pitfalls

Section Four: Collecting From Difficult Consumers• Why Can’t We All Just Get Along?• Five Steps for Dealing With Difficult Consumers• Dealing With Three Types of Difficult Consumers





THE FOUNDATION

OF NEGOTIATING

05

SECTIONONE“In business, you

don’t get what you

deserve, you get

what you negotiate.”

~ Chester L. Karrass





HOW DO YOU DEFINE NEGOTIATING?How would you describe the process of debt collection negotiations to a new hire?

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CHARACTERISTICS OF NEGOTIATORSWhat characteristics would you use to describe effective and ineffective negotiators?

EFFECTIVE NEGOTIATORS INEFFECTIVE NEGOTIATORS


“Negotiation is a process of communicating back and forth for the purpose of reaching a joint decision.”

- Roger Fisher and William Ury Getting to Yes

WHAT IS NEGOTIATION?

Everyone is a negotiator. Negotiation is something that

we all do every day whenever we need another




we all do every day whenever we need another

person’s consent. Our negotiations can range from

deciding on what’s for dinner to complex mergers and

acquisitions. Regardless if the negotiation occurs in our

personal or professional life, the better we are at

negotiating, the higher the likelihood of reaching our

desired result. The process of negotiating increases or

decreases in difficulty depending on the level of conflict

that exists between negotiating parties.


THE TWO UNIVERSAL CONCERNS

“Every negotiator has two kinds of interests: in the substance and in the relationship.”

- Roger Fisher and William UryGetting to Yes

CONCERN FOR THE OUTCOME

08

Low Moderate High




Source: Getting to Yes

Low Moderate High

CONCERN FOR THE RELATIONSHIP

FIVE NEGOTIATING STYLES


“The two universal concerns for outcome and relationship are shared by all negotiators, regardless of the object of their negotiations. But these concerns are not expressed independently. Each concern interacts with the other to produce a pattern or style of negotiating behavior.”

– Negotiating Style Profile

09

Source: The Model of Negotiating Styles, HRDQ





DEFEATCONCERN FOR OUTCOME HIGH CONCERN FOR RELATIONSHIP LOW

Goal: Be a winner at any cost.When a collector has a high degree of concern for the

outcome of the call but a low degree of concern for the

relationship, a Defeat behavior pattern is produced. This

pattern is characterized by win-lose competition and sends

the message that the consumer’s needs are not important.

Collectors who rely on this style may use pressure,

intimidation, unlawful threats, and harassment. This style

results in adversarial relationships with consumers and may

generate complaints.

The following statements/characteristics apply to the Defeat style:

ACCOMMODATE COLLABORATE

WITHDRAW DEFEAT

COMPROMISE

10

� Drive a hard bargain.

� I win/you lose mentality.

� Our conflicting interests can’t be reconciled.

� Total victory is the goal.

� Get as much as I can.

� My interests must prevail.

� Me or them.

� Don’t get taken.� Business is business.

� Insist on your own position.

� Apply pressure. Intimidate. Browbeat. Be belligerent.

� Don’t trust anyone.

� Participants are adversaries.

� Be a tough battler; top dog.

� Clobber them before they clobber you.

� Power and control are everything.

� Two dogs, one bone.

� How much can I get for how little?

� There can only be one winner.






DEFEATWITHDRAW

COMPROMISE

WITHDRAWCONCERN FOR OUTCOME LOWCONCERN FOR RELATIONSHIP LOW

Goal: Take whatever you can get.When a collector has a low degree of concern for both the

outcome of the call and the relationship with the consumer,

a Withdraw behavior pattern is produced. The collector has

little interest in working out the best deal and little interest

in the relationship with the consumer. Collectors who rely

on this style may show a lack of confidence, have feelings

of powerlessness, show an indifference to the outcome,

and have feelings of surrender.

The following statements/characteristics apply to the Withdraw style:

11

� Indifferent.� Resigned. � Keep a low profile.

� Avoid conflict. � Do minimum to keep up appearances.

� Results are beyond my influence.

� Realistically, you take whatever you can get.

� Other people have more power.

� Relinquish control.

� Who cares?� Surrender and retreat.

� Forgo my needs.� Just want to skate by.





COLLABORATE

WITHDRAW

ACCOMMODATE

DEFEAT

COMPROMISE

ACCOMMODATECONCERN FOR OUTCOME MODERATECONCERN FOR RELATIONSHIP HIGH

Goal: Build friendly relationships.When a collector focuses on building a positive relationship

with the consumer in hopes that it will produce a successful

outcome, an Accommodate behavior pattern is produced.

Collectors who rely on this style may expend minimal energy

to work out the best outcome, and instead focus that energy

on building a friendly relationship. These collectors generally

try to avoid conflict at any cost and work to promote

harmony, even yielding to pressure to preserve relationship.

The following statements/characteristics apply to the Accommodate style:

12

� Good relationships produce good results.

� Maintain harmony.

� Keep the peace.� Be friendly.� Avoid unpleasant discussions.

� Be agreeable; keep the consumer happy.

� Make concessions so the consumer likes me.

� Trust others without hesitation.

� Disclose your bottom line so the other party knows what you’re after.

� Yield to pressure.

� Let the consumer have it her way.

� Place relationships above a fair outcome.

� Don’t ask difficult questions.

� The relationship is the number one priority.






WITHDRAW DEFEAT

COMPROMISE

COMPROMISECONCERN FOR OUTCOME MODERATECONCERN FOR RELATIONSHIP MODERATE

Goal: Split the difference.When a collector has a moderate degree of concern for

both the outcome and the relationship, a Comprise

behavior pattern is produced. Collectors may resort to

splitting the difference and may prematurely look for trade-

offs. Although this style may produce a reasonable result, it

does not generate the same optimum result that can be

achieved through a high degree of concern for both the

outcome and the relationship.

The following statements/characteristics apply to the Compromise style:

13

� Compromise.� Agree to split the difference.

� Meet halfway.� Find a quick, easy solution that we can both agree on.

� Give something to get something.

� Look for trade-offs.

� No one gives up or gains everything.

� Each person walks away with something.

� We scratch each other’s backs.

� You win some, you lose some.

� If I don’t compromise, I’ll end up empty-handed.

� Avoid conflict.� An adequate outcome achieved in a short time is better than an optimum outcome that requires more time.

� I have to compromise to show I care.

� It’s expected.





ACCOMMODATE

WITHDRAW DEFEAT

COLLABORATE

COMPROMISE

COLLABORATECONCERN FOR OUTCOME HIGHCONCERN FOR RELATIONSHIP HIGH

Goal: Creatively problem-solve so both parties

can win.When a collector has a high degree of concern for both the

outcome and the relationship, a Collaborate behavior

pattern is produced. Collectors rely on searching creatively

for common interests with the consumer, problem-solving

behavior, and recognizing that both parties must get their

needs satisfied in order to reach the optimum solution.

The following statements/characteristics apply to the Collaborate style:

14

� Collaboration is key.

� Win-win.� Negotiation is a creative, problem-solving situation.

� We have common interests and need to form a partnership.

� We attack the problem, not each other.

� Both parties’ needs are met.

� Each party explores mutual interests and works for mutual gains.

� Yield to principle, not pressure.

� Try to reach a result based on objective criteria.

� Principled negations.

� No tricks, no games.

� Instead of dividing the apples, we both shake the tree to get more apples.

� Synergistic solutions.





UNLOCKING YOUR

NEGOTIATION STYLE

15

SECTIONTWO




“He who has

learned to disagree

without being disagreeable

has discovered the most

valuable secret of a

diplomat.”

~ Robert Estabrook


THE “NEGOTIATING STYLE PROFILE”Purpose: To help you gain a deeper understanding of your

preference for using the five negotiating styles.

ABOUT THE PROFILE� Thirty-item assessment, divided into five scales/negotiating

styles: defeat, withdraw, accommodate, compromise, and

collaborate.

� Evolved from a need to help department store buyers with

their vendor relationships.

� Designed to measure a person’s concern for the two

dimensions: outcome and relationship.

� The assessment has been administered to thousands of

people worldwide in a variety of industries including retail,

hospitality, computer software, food manufacturers,




hospitality, computer software, food manufacturers,

telecommunication companies, government agencies, and

financial services firms.

THE FOGGY LENS EFFECTSince the assessment is a self-report, it is possible that your observation might be

somewhat “foggy.” Sometimes we pick what we think is the best answer instead of

selecting an answer based on how we actually perform. Ask your manager and

coworkers if they agree with your results.

IMPORTANT WARNING!This assessment is not a guarantee of performance.

It should not be used as a selection tool.


CHARTING YOUR RESULTS

30

33

36

39

42

Directions: Transfer your five separate scores from your Negotiation Style Profile

worksheet to the chart below. Mark your scores with an “X” and then draw a solid line

connecting all five scores.

tyle

Sco

res




DEFEAT WITHDRAW ACCOMMODATE COMPROMISE COLLOBORATE

Avg All Industries 20 23 31 28 35

Avg Collection Industry 20 23 32 29 34

Avg Third Party 22 20 32 30 35

Avg First Party 16 25 31 28 33

6

9

12

15

18

21

24

27

30

Ne

go

tia

tin

g P

rofi

le S

tyle


EFFECTIVE COLLECTION

NEGOTIATIONS

18

SECTIONTHREE




“Let us never

negotiate

out of fear, but let us

never fear to

negotiate.”

~ John Fitzgerald Kennedy


WHICH STYLE IS PREFERRED?

Variations of each style may be

appropriate under certain conditions.

A negotiator may choose any one of the

five styles for a particular negotiation.

What influences the style a collector uses?

� Company philosophy and brand

19

� Company philosophy and brand

� Client requirements

� Collector personality/emotions

� Consumer personality/emotions

� Results of previous conversations

� Stage of delinquency/status of account

� Type of collector (first party, third-party, debt buyer, etc.)

� Type of debt being collected

� Amount of time allotted for negotiation

� Your attitude towards debt and belief about people

� Tolerance for complaints

___________________________________________________

___________________________________________________

___________________________________________________

___________________________________________________





DEFEAT STYLE

ADVANTAGES/DISADVANTAGES

ADVANTAGES DISADVANTAGES

•Good short-term deals

• If the other negotiator

uses this style, it may be

appropriate to use it

•Useful for establishing

bottom line when

•Could be destructive

and ineffective in the

long run

•The other party may try

to “get back” at you in

the future

20

bottom line when

collaborative

negotiations have failed

the future

•Not effective in building

relationships

•Could lead to false

commitments (e.g.,

NSF check)

•May cause collector to

be rejected on principle

alone

• Increase likelihood of

hangs up, escalated

conversations, and

complaints






•Expediency of

negotiations because

one side has all of the

power

•Least stressful approach

•Rarely generates

•May result in unfair

outcomes

•Doesn’t do the

client/company justice

•May leave money on

the table

WITHDRAW STYLE


21

•Rarely generates

complaints

the table






•Easy agreement

•Effective when

relationship is

paramount

•Helpful if consumer has

multiple lines of

•High cost in terms of

one-sided solutions

•Relationships may be

superficial

•Often produces low

collection results

ACCOMMODATE STYLE


22

multiple lines of

business or is an

influential customer

collection results

•Consumer may take

advantage of the

situation






•Some of both parties’

needs are met

•Produces adequate

solutions and

relationships

•Works well when trade-

•May not produce a true

win-win solution

•Does not produce the

best outcome or the

best relationship

•May cause buyer’s

COMPROMISE STYLE


23

•Works well when trade-

offs are the only way to

come to an agreement

•Can produce a cost-

effective agreement in

shorter time period

•May cause buyer’s

remorse.

•Sets expectations for

future negotiations






•Creative, long-term

solutions

•Builds strong

relationships

•Synergistic partnership

•Generates high levels of

•Takes time, effort, and

practice

•Depending on account

balance, it may not be

cost-effective to invest

the time needed to

COLLABORATE STYLE


24

•Generates high levels of

trust

•Can reduce complaints

and escalated calls

the time needed to

collaborate

•Consumer not always

willing to work together

with the collector to

find the best solution

•Consumer not always

interested in building a

relationship with a

collector





THE NEGOTIATION WATERFALL™

COLLABORATE

COMPROMISE

ACCOMMODATE

WITHDRAW




WITHDRAW

DEFEAT

It is impossible for a collector to start with a defeat style and then

move to a collaborative style without doing some damage to the

relationship. The best approach is to start with a collaborative style

and then move down The Negotiation Waterfall™ in a way that will

best satisfy your concerns for the outcome and the relationship.


THE COLLABORATIVE

NEGOTIATION PROCESS

“Consistent application of the Collaborate

style offers the ________ ________ of

producing negotiating results of the ______

______ and _______ ________satisfaction

to the parties involved. “– Negotiating Style Profile

26

REQUIRES A SPECIFIC SET OF SIX INTERPERSONAL SKILLS

1. Assertive behavior2. Supportive climate-building3. Active listening4. Nonverbal behavior sensitivity5. Using questions to raise receptivity6. Confronting and working through differences

REQUIRES A DEFINED SEVEN STEP APPROACH

1. Comprehensive preparation2. Appropriate opening to set the tone of the negotiation3. Exploration of each party’s needs4. Creative development of alternatives5. Use of objective criteria to evaluate agreements6. Appropriate closing to define the agreement7. Critique of the negotiated outcomes





THE SIX INTERPERSONAL

SKILLS OF A COLLABORATOR

1. ASSERTIVE BEHAVIORThe collector should be able to honestly and openly state his or her needs, while respecting the needs and concerns of the consumer.

2. SUPPORTIVE CLIMATE- BUILDINGBoth parties are more likely to

27

Both parties are more likely to collaborate if they feel they are working in a mutually supportive, respectful environment.

3. ACTIVE LISTENINGOne key to a successful collaborative negotiation is that both parties actively listen to each other. Active listening means making a point to hear, understand, and respond to what the other person is saying.





THE SIX INTERPERSONAL

SKILLS OF A COLLABORATOR

4. NONVERBAL BEHAVIOR SENSITIVITYA great deal about how someone is feeling is communicated through his or her nonverbal behaviors. Successful negotiators are able to recognize, interpret, and respond to the other party’s nonverbal behaviors. Remember: Actions speak louder than words.

28

than words.

5. USING QUESTIONS TO RAISE RECEPTIVITYFor collaboration to occur, both parties need to understand the other’s needs and concerns. Asking questions assures that these needs and concerns are brought to the table.

6. CONFRONTING AND WORKING THROUGH DIFFERENCESWhen two parties face each other in a negotiation there are guaranteed to be differences. Collaborative negotiators are skilled at acknowledging these differences and using them constructively in the conversation.





SEVEN STEPS FOR CONDUCTING A

COLLABORATIVE NEGOTIATIONStep 1: COMPREHENSIVE PREPERATION� Review the results of previous conversations.� Know your bottom-line and levels of authority.� Call at the right time; avoid inconvenient times/places.� Get good at identifying one or two critical pieces of information when on an auto-dialer.

Step 2: APPROPRIATE OPENING TO SET THE TONE OF THE NEGOTIATION� Know previous outcomes and use linking phrases to create a warm introductions.� Don’t head into the call with the intention of debating the consumer.� Schmooze with the consumer to build rapport. Link with details.� Watch words, rate, tone, pitch, and inflection. Smiling and standing while talking can help.

Step 3: EXPLORATION OF EACH PARTY’S NEEDS� Work to tie up lose ends and meet unmet needs when possible. � Don’t overlook core human emotions/needs.

29

� Don’t overlook core human emotions/needs. � Use effective questioning techniques and listen for thoughts and feelings.

Step 4: CREATIVE DEVELOPMENT OF ALTERNATIVES� Present multiple offers simultaneously. Be careful with fixed-choice demands.� Ask the consumer to share his or her ideas.� Expand the piggy bank. Think outside the wallet.

Step 5: USE OF OBJECTIVE CRITERIA TO EVALUATE AGREEMENTS� Separate people from the problem.� Establish ground rules if necessary.� Never yield to pressure (bribes, threats, etc.)

Step 6: APPROPRIATE CLOSING TO DEFINE THE AGREEMENT� Restate details of arrangement and check for understanding.� Thank the consumer for his or her partnership.� Discuss next steps.� Agree on consequences of broken commitments.

Step 7: CRITIQUE OF THE NEGOTIATED OUTCOMES� Review your results. � Could you have done anything differently?� Did you achieve synergy?� Get a second opinion.





SEVEN COMMON

NEGOTIATION PITFALLS

• Using threats and harassment to force payment. While threats and harassment can increase payments, the Fair Debt Collection Practices Act clearly prohibits such behavior. These collection tactics damage relationships, tarnish your company brand, and often cause the consumer to terminate the call.

• Not being assertive.Failing to assert your position out of fear of conflict will present a unique set of challenges during the call. Collectors must learn to openly and honestly communicate their expectations by maintaining a healthy sense of confidence.

• Viewing the negotiation as a debate.Treat the consumer with respect and treat the collection call as an opportunity to

30

Treat the consumer with respect and treat the collection call as an opportunity to help a fellow human being in a time of need. “Going to war” with the consumer can decrease collections while increasing complaints and lawsuits.

• Getting caught up in the other party’s personality or behavior.Successful collectors know they have to separate the person from the problem. Some consumers will try to distract you from the real purpose of the call and when this happens you must be ready to keep the purpose of the call in mind.

• Closing yourself off to a consumer’s alternatives.It is possible that the consumer will present a solution that works. Be open to the possibility. And, remember, nobody argues with his or her own idea. Successful collectors guide consumer’s to their own alternative.

• Failing to understand the other party’s needs and wants.If you push forward without truly understanding the other party’s needs and wants it is possible that you could end up with a broken arrangement or damaged relationship.

• Letting emotions control the call.The best negotiators are aware of their own emotional states. Know your hot buttons and know how to avoid erupting when those buttons are pushed.





COLLECTING FROM

DIFFICULT CONSUMERS*The information in this section is used from HRDQ’s “Dealing With

Difficult Negotiators” program and is used with permission.

31

SECTIONFOUR




“There are two ways

of meeting difficulties:

You alter the difficulties

or you alter yourself to

meet them.”

~ Phyllis Bottome


WHY CAN’T WE ALL

JUST GET ALONG?Collectors aren’t the only party to a negotiation that can be difficult to

deal with. Consumers can be difficult, too.

So how do you turn a the tough negotiator into an ideal negotiator?

The truth is, you probably can’t. Though negotiators often have

developed their negotiating style over time and with reinforcement

for their behavior. It is not up to you to change the person. But you

still can achieve a collaborative solution despite a seemingly

impossible negotiation situation.

In this section, we will show you how to practice the skills that enable




In this section, we will show you how to practice the skills that enable

a win-win solution when the other party to the negotiation is less

than collaborative. These skills have been drawn from research on

how to effectively deal with difficult negotiators.

The five skills needed for dealing

with difficult consumers are:

1. Maintaining Composure

2. Developing Data

3. Refocusing the Discussion

4. Being Creative

5. Handling Information Strategically


#1. MAINTAIN COMPOSUREDifficult consumers can create an emotionally heated environment. They

may attempt purposely to upset you so that you are not thinking

objectively. Maintaining your composure in stressful and heated negations

is a powerful weapon. It allows you to evaluate assertions coolly and

encourage the other party to focus on the objective.

These tips can help you keep your cool:

� Silence perhaps is the most effective tool. When the other party says something

inflammatory or proposes something outrageous, take a moment of silence. It may

cause the other party to fill in the gap with more information. And it gives you time

to compose yourself.

� Take a mental break. Think about the ocean. Think about what’s good in your life.

Temporarily distance yourself from the discussion so that you won’t react with

emotion.




emotion.

� Make light of the situation. A good deal of judgment goes into this tactic.

Lightening the situation with humor may break the tension. But it could also

increase it. Knowing when the other party is likely to accept humor is important.

� Take a deep breath and count to ten. This technique allows you to take a short

break and regain your composure.

� Refocus yourself on what you need from the negotiation. Bring your own needs to

the front of your mind instead of reacting to the emotion of the situation.

� Ask the other party to explain him/herself. This gives you time to regain your

composure and is a good way to get the other party to tone down his/her

inflammatory statements.

� State the goal of objectivity. Remind the other party of the goals of the negotiation.

� Use the “feel/felt/found” strategy. Take time to gather your thoughts by telling the

other party, “I know how you feel about this, I felt that way until I found that (reason

for not feeling that way).”

� Physically remove yourself from the negotiation. This may be extreme, but if the

negotiation is not productive because of emotion, taking a break might be best.


#2. DEVELOP DATAA tough negotiator will put forth many different arguments and claims

during the negotiation. He or she also will react strongly or emotionally to

information that you present. The best way to keep a handle on the

negotiation is to have a strong store of data about the negotiating

situation. When the other party makes a claim, suddenly introduces a new

demand, or makes heated statements, your store of objective knowledge

about the situation will allow you to respond to those maneuvers.

These tips can help you gather several types of information

before and during the negotiation.

� Find the “asymmetries.” Asymmetries occur when one party values something

more than the other party. You should list as many as you can before the negotiation

and look for cues to others during the negotiation.

� Make a list of the difficult issues to resolve and why they are difficult.




� Make a list of the difficult issues to resolve and why they are difficult.

� Use “feelers” when you are trying to gather information during the negotiation

(e.g., “how do you feel about this idea” ) instead of direct or firm offers. Using

feelers in conjunction with questions about the other party’s intentions or

preferences provides you with the greatest wealth of information while preventing a

deadlock.

� Make a list of factors affecting the situation of the other party such as employment

status, budget constraints, etc.

� Focus on the other party’s motivation. What are the most important factors to the

consumer? Conduct research beforehand and then ask questions during the

negotiation that help you discover priorities.

� Know your alternatives to a negotiated agreement. Can you afford to walk away?

At what point would it be better to walk away than to accept an agreement?

� Research objective data and facts relevant to the situation and keep them at your

fingertips during the negotiation.

� Pay careful attention to body language. The other party’s behavior during face-to-

face conversations will be full of informational cues.


#3. REFOCUS THE DISCUSSIONThough negotiators may throw the discussion off-track either intentionally

or unintentionally. Either way, a discussion that begins to focus on

irrelevant aspects of the situation, or on emotional issues that cannot be

resolved, is not headed for satisfactory resolution. A productive discussion

centers on objective information and the underlying needs of both parties.

It is your job as a negotiator to make sure that the other party does not

monopolize the conversation with diversions or exclusive focus on his or

her positions.

These tips can help you keep the conversation headed in the

right direction:

� Ask problem-solving questions that push you and the other party to work together

to solve a problem.

Make a list of underlying needs behind each goal and discuss how those needs can




� Make a list of underlying needs behind each goal and discuss how those needs can

be satisfied.

� Don’t reject proposals automatically that are presented as ultimatums. Tell the

other party that you will consider his or her proposal as one of the options for

settling the negotiation.

� Ask for clarification when the other party says anything that is unclear, seemingly

erroneous, or antagonistic.

� After you present new information, ask the other party to tell you how that

information affects his or her position.

� If the other party is adamant about a particular position, do not spend a great deal

of time trying to change his or her mind. Explore the needs behind that position and

treat it as one option to be considered.

� If the other party dwells on past problems, acknowledge that there were problems,

but maintain the focus of the discussion on the current situation.

� With the other party, make a list of common interests.

� Paraphrase a summary of the other party’s points.


#4. BE CREATIVEWhen two parties enter a negotiating situation, they usually have some set

goals in mind. When those individual goals get stuck in each party’s mind,

the negotiation may come to an impasse quickly. It always is best to start a

negotiation with a focus on underlying needs, not specific goals. Your

negotiating partner may not be so inclined. Moving forward often requires

a large dose of creativity on your part. By creatively we mean introducing

novel solutions, figuring out how to rethink problems, and/or looking at a

situation from several angles. But succeeding with a tough negotiator goes

beyond just thinking of new ways to view the situation. You need to be able

to get the other party involved in the creative process and accepting of

your creative solutions.

There are several creativity techniques you can use. Here are a

few that you can use to keep the negotiation moving along:




few that you can use to keep the negotiation moving along:

� Put off discussion of specific solutions until you and the other party have discussed

the negotiating situation fully and what needs must be met.

� Don’t think only in terms of monetary cost. Make a list of other costs and benefits

to your proposal(s) and the other party’s proposal(s).

� Withhold immediate judgment of all proposals that are offered. Give them time to

sink in and compare their value with other proposals.

� Think of solutions where your low priority items can be conceded in exchange for

concessions by the other party on your high priority items.

� Think of ways to make it easier for the other party to accept your proposal.

� If no solution offered meets both parties’ needs, try to engage the other party in

brainstorming new solutions.

� Think of ways to expand the piggy bank.

� Don’t introduce new solutions when the parties are confused about existing

options.


#5. HANDLE INFO STRATEGICALLYBecause tough negotiators often create a tense climate, how you choose to

release and ask for information can be as important as the information

itself. If you expect immediate agreement with a point you make, you likely

will be disappointed and antagonize the other party. Likewise, if you lay all

of your information on the table without requiring disclosure from the

other party, you run the risk of giving the other party an unfair advantage.

Despite the fact that open communication yields the best results, a tough

negotiator is unlikely to be open. Making the other party comfortable with

exchanging information and understanding your points is crucial to long-

lasting agreement.

These tips can help you handle information strategically:

� Give the other party a reason to trust you by revealing some, but not all, of your

information.




information.

� When you introduce new information or attempt to switch the focus of the

conversation, give the other party ample room and time to digest what you are

saying.

� Concentrate on the quality of your reasons for a proposal, not the quantity. One or

two strong reasons is better than a dozen weak reasons.

� Give the other side the opportunity to voice objections to your proposals.

Consider those objections seriously and address each one.

� Don’t take everything the other party says at face value. Verify with objective

information the validity of the other party’s statements.

� Watch the other party for signals that he or she feels good (or bad) about the

alternatives being discussed.


HOW TO HANDLE A CONSUMER

WHO RELIES ON THREATSSome consumers routinely use threats. A threat can range from the obvious

(“I’ll hang up!) to the subtle (“I’m not sure I can talk about this now.”). But

whatever form the threat takes, your job is to figure out whether the other

party will carry through with it. Threats generally are a function of capability

and resolve. You need to know whether or not the other party has the

capability of carrying through with the threat and whether he or she is

motivated to do so.

Maintain Composure� React calmly and with resolve.

� Brush off the threat lightly. Use this tactic only if you think the other party

will not take offense.




will not take offense.

� Don’t let the pressure force you into a premature agreement.

Develop Data� Know whether or not you can afford to walk away.

� Know what the other party’s capability is to deliver on the threat.

� How likely is the threat to impact your business?

� Is there validity to the consumer’s threat?

Be Creative� Figure out a way around the threat if it is real. Ask yourself how you can

get your needs met if the threat is carried out.



WHO USES TIME PRESSUREA tough consumer may pressure you to make decisions or agreements within

a limited amount of time. Time limits can be imposed arbitrarily by the other

party (e.g., “I’ll give you 24 hours to consider my settlement”) or may occur

naturally (e.g., the statute of limitations is about to expire). Arbitrary time

limits are somewhat easier with which to deal. However, if there is not an

artificial time constraint, you can reach a collaborative solution quickly.

Maintain Composure� Don’t respond immediately. Give yourself at least a minute to think about

the best course of action.

� Focus calmly on your needs.




Develop Data� Prioritize your needs. Know your bottom line.

� Find out the flexibility of the time constraint. Is it being imposed

arbitrarily, and if so, can it be changed?

� Make a quick list of your options and resources.

Handle Information Strategically� Don’t release all of your information because of time pressure.

� Don’t rush to an agreement even if there is time pressure.

� Give the other party a few moments to digest your agreements and

proposals.



WHO IS AGGRESSIVESome consumers like to maintain control of a negotiation by displaying

aggressive behavior. They may speak in loud tones and use hostile language.

It is difficult to hold an objective discussion under these circumstances, so

you will want to calm the atmosphere before proceeding. Nonetheless, you

may have to proceed with some level of aggressive behavior from the

consumer. Concentrate on your needs and the facts of the situation through

the haze of aggressiveness.

Maintain Composure� Don’t shout back. It is easy to mirror the negative and aggressive

emotions of the other party. But doing so only escalates the situation.

� Silence is particularly effective.




� Silence is particularly effective.

� Responding with feel, felt, found also can work.

� Humor can be quite effective but should be used with caution.

� Let them vent. Sometimes that’s all it takes.

Develop Data� Know your bottom line.

� Know the other party – will humor work; is he or she serious?

� Know the other party’s situations in terms of support.

� Know when to walk away.

� What is causing the behavior? Is there a legitimate concern?

Refocus the Discussion� Discuss the objective facts of the situation.

� Ask the other party to engage in problem solving with you.

� Apologize without accepting responsibility, then redirect to the objective.

� Separate the people from the problem.

� Address any legitimate concerns and then redirect the conversation.

RECAP OF TODAY’S SESSION

Today, we …

� Discovered your primary negotiating style.

� Learned how to describe the two universal concerns of every negotiation communication.

� Contrasted the five negotiating styles in terms of behaviors and outcomes.

� Identified the pros and cons of each negotiating style.

� Recognized opportunities for flexing or adapting your


41

� Recognized opportunities for flexing or adapting your negotiating style.

� Identified strategies for guiding collaborative negotiations.

� Learned how to spot common negotiation pitfalls.

� Discovered a five step approach for dealing with difficult consumers.





Additional Resources

42

APPENDIX




“Let us move from the

era of confrontation to

the era of negotiation.

~Richard M. Nixon


Recommended Reading

� Successful Negotiating: Letting the Other Person Have Your Way

� Negotiating in Organizations� Managing by Negotiations� The Negotiator: A Manual for Winners

� You Can Negotiate Anything� The Tao of Negotiations� Telling Lies: Clues to Deceit in the Marketplace, Politics, and Marriage

� Getting Together� Smart Negotiation� Building Negotiating PowerCollaborating

� Everyday Negotiation: Navigating the Hidden Agendas in Bargaining

� When Talk Works� Deal Maker� Negotiating Tactics: Bargain Your Way to Winning

� Power Negotiating: Tactics and Techniques

� The Pre-Negotiation Planning Book� The Art of Negotiating� Getting Past No� How to Win Friends & Influence PeopleInfluence: The Psychology of

43

� Collaborating� Negotiation: Strategies for Mutual Gain

� Nonverbal Communication: The State of the Art

� Business Negotiating Power: Optimizing Your Side of the Deal

� Power Negotiating: Strategies for Winning in Life and Business

� The Negotiating Game� Give and Take: The Complete Guide to Negotiating Strategies and Tactics

� Assertion Training: A Facilitator’s Guide

� Field Guide to Negotiation� No Contest: The Case Against Competition

� Influence: The Psychology of Persuasion

� Six Thinking Hats� Bargaining for Advantage: Negotiation Strategies for Reasonable People

� Getting to Yes: Negotiating Agreement Without Giving In

� Harvard Business Essentials Guide to Negotiation

� Secrets of Power Negotiating� Getting More: How to Negotiate to Achieve Your Goals in the Real World

� The Art and Science of Negotiating





References

Bazerman, M. (2003). The Mythical Fixed Pie. Negotiation

Blake, R.R., & Mouton, J.S. (1978). The New Managerial Grid. Houston: Gulf.

Cohen, H. (2003). Negotiate This! New York: Warren Business Books.

Editors. (2010). Business Negotiation Skills. Negotiation Special Report. Program on

Negotiation at Harvard Law School

Editors. (2010). Dispute Resolution. Negotiation Special Report. Program on Negotiation at

Harvard Law School

Fisher, R., & Ury, W. (1981). Getting to Yes. Boston: Houghton-Mifflin

Glaser, C., & Glaser, R. (2005). Negotiating Style Profile. King of Prussia: HRDQ

Kilmann, R., & Thomas, K. (1974). Thomas-Kilmann Conflict Mode Instrument. CPP, Inc.

44

Kilmann, R., & Thomas, K. (1974). Thomas-Kilmann Conflict Mode Instrument. CPP, Inc.

Merrill, D.W., (1960). Social Style Model. TRACOM Group

Shapiro, R. & Jankowski, M. (2001). The Power of Nice. New York: Wiley & Sons, Inc.

Shea, G. (1983). Creative Negotiating. Boston: CBI.

Ury, W. (1991). Getting Past No. New York: Bantam


Profile" and "Dealing With Difficult Negotiators" and are presented under license agreement with HRDQ. Unauthorized use, reproduction, or distribution of the material contained in

this workbook is a violation of federal law and punishable by civil and criminal penalty. To obtain reproduction rights, contact [email protected] or (515) 339-5899.


Thank you for participating in the Unlock the Hidden Power of Your

Negotiating Style training program.

You’ve reached the end of the session.

Stay cool, calm, and collected!SM

(And remember…)

End

(And remember…)

“Learning is not a spectator sport. [Learners] do not learn much by just sitting and listening, memorizing prepackaged assignments, and spitting out answers. They must talk about what they are learning, write about it, relate it to past experiences, apply it to their daily lives. They must make what they learn part of

themselves.”

– Seven Principles for Good Practice


Profile" and "Dealing With Difficult Negotiators" and are presented under license agreement with HRDQ. Unauthorized use, reproduction, or distribution of the material contained in

this workbook is a violation of federal law and punishable by civil and criminal penalty. To obtain reproduction rights, contact [email protected] or (515) 339-5899.

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