The Art of Negotiation- Aditi Singh

What is negotiation? A dialog or Problem solving process between

Interdependent parties.

Negotiation is possible only if the parties involved are dependent on one another and see advantage in the process, it may be an opportunity or sheer necessity.

Styles of NegotiationDistributive

The term distributive implies that there is a finite amount of thing that is being distributed or divided among the people involved. It is also called the Fixed pie or Positional or hard-bargaining negotiation, where  each side often adopts an extreme position, knowing that it is a Win-Lose scenario.

IntegrativeAlso called interest-based or principled negotiation. Integrative negotiation often attempts to create value in the course of the negotiation ("expand the pie"). It focuses on the underlying interests of the parties rather than their arbitrary starting positions, negotiation is approached as a shared problem rather than a personalized battle. It often involves a higher degree of trust and the forming of a relationship. It is also sometimes called Win-Win negotiation.

Language of NegotiationPosition: The stand that each party takes at the

beginning of negotiation. The “What I want” stand. If both the parties maintain this stand negotiation may turn into conflict.

Interest: The underlying interest / objective behind the stand taken by the parties. The “why we want it” stand. Once the interest of both the parties are in view it is easier to srtike a “win-win” deal.

Strategic thinking

Competing

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Collaborative Approach

Avoiding Interaction

Yielding Approac

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Cooperation (relationship)

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5 Phases of NegotiationPreparation

This is the back-office of negotiation. Research, planning and emotional preparedness are keys to preparation for negotiation.

Agenda Setting Declare the what and how of negotiation. The context or the premises. Take a buy in on what would be discussedPre-empt the objectionsProbing , asking right question may help us uncover the interest of the parties

ProposalTiming is crucial while making a proposal. It is important to match with the speed/ style of the other party, viz. Impatient or reflective/ analytical type.The proposal may be accepted, out right rejected or met with counter offer.Finding common grounds to make the proposal may lead to lesser resistance.While listening to a proposal, please give a due hearing to the offer and repect the time and effort put in to make the offer.

BargainingBargaining is just a stage in negotiation that focuses largely on the commercial terms viz. Price and Terms, conditions etc. A trade of concessions, like margin or volumes Common bargain tactics – good cop/bad cop, boogie, nibbleBest concession is to offer some thing of low cost to you but higher value to other

Finalizing It is vital to converge the various points of discussions and summarize them Remember the “Power of Pen”

Experiences Our past experiences and perceptions may hinder the negotiation processWe must also evaluate if our association with the past experiences hold value in the given situation

Anchoring This is our reference point during negotiation We must be careful and reasonable while anchoring. An unreasonable anchor point may stall the negotiation before it begins.

Cycle of escalationThis is the sense of commitment we feel towards nailing the negotiation because of the time and effort put in.Beware of the escalation of comitment

Common Errors in Negotiation

For further details please contact:

Aditi Singhwinningskillz@gmail.com