30 min.to negotiate a better deal

8/6/2019 30 Min.to Negotiate a Better Deal

1/14

30 minutes to negotiate a better30 minutes to negotiate a better

dealdeal

ByByBrian FinchBrian Finch

Presented byPresented byPIYUSH MISHRAPIYUSH MISHRA

Roll NoRoll No--16036, Sec16036, Sec--A.A.

PGDMPGDM

SIVA SIVANI INSTITUTE OF MANAGEMENT.SIVA SIVANI INSTITUTE OF MANAGEMENT.


2/14

ABOUT THE BOOKABOUT THE BOOK

Negotiation affects all aspects ofNegotiation affects all aspects ofbusiness life. This book aims tobusiness life. This book aims toensure that you gain the upper handensure that you gain the upper hand

in any deal. It shows you how to gainin any deal. It shows you how to gaincontrol in a meeting, negotiate fromcontrol in a meeting, negotiate froma position ofweakness, and do youra position ofweakness, and do yourhomework to ensure success. Thishomework to ensure success. Thisbook is intended to provide practicalbook is intended to provide practicaladvice for everyone to improve theadvice for everyone to improve theoutcome of all the deals.outcome of all the deals.


3/14

CONTENTSCONTENTS

Introduction.Introduction.

Preparation.Preparation.

Communications.Communications.Body language.Body language.

Strategies and Tactics.Strategies and Tactics.

Dealing.Dealing.

Techniques.Techniques.

Winning the peace.Winning the peace.


4/14

INTRODUCTIONINTRODUCTION

A fewwords are needed to introduceA fewwords are needed to introducefive very simple but very importantfive very simple but very importantideas about negotiation:ideas about negotiation:

What we mean by it?What we mean by it?

It is not necessarily about beingIt is not necessarily about beingtough.tough.

It is about trading.It is about trading.It is about achieving mutual benefits.It is about achieving mutual benefits.

It is not about defeating enemy.It is not about defeating enemy.


5/14

PREPARATIONPREPARATION

Of all the possible improvements to negotiatingOf all the possible improvements to negotiatingthe most powerful is devoting a little more timethe most powerful is devoting a little more timeto preparation and to researching, before everto preparation and to researching, before everstarting to negotiate.starting to negotiate.

Setting objectivesSetting objectives--::What do you or your organization wantWhat do you or your organization want

to result from these negotiations?to result from these negotiations?Objective must beObjective must be --::Rational.Rational.

Consistent.Consistent.Achievable.Achievable.Coherent.Coherent.Measurable.Measurable.


6/14

Know your opponent or partnerKnow your opponent or partner--::

The next key element toThe next key element to

preparation is understanding withpreparation is understanding withwhom you are negotiating.whom you are negotiating.

The relationship.The relationship.

Diverse interests.Diverse interests.

Understanding.Understanding.

Do they want deal?Do they want deal?

Before a meeting.Before a meeting.


7/14

COMMUNICATIONSCOMMUNICATIONS

ListeningListening--::It is the beginning of all communication.It is the beginning of all communication.

If you dont listen effectively then you miss crucialIf you dont listen effectively then you miss crucialinformation.information.Active listeningActive listening--::

11-- Ask question to test understanding.Ask question to test understanding.22-- Summarize what the other person has said.Summarize what the other person has said.33-- Speak always something that relates towhat other personSpeak always something that relates towhat other person

has said.has said.44-- Make eye contact.Make eye contact.55-- Dont let other person to speak for toolong.Dont let other person to speak for toolong.

TalkingTalking--::Dont talk too muchDont talk too much

QuestioningQuestioning--::Open question,Closed questions & benefits.Open question,Closed questions & benefits.


8/14

BODY LANGUAGEBODY LANGUAGE

Many studies claim to show that overMany studies claim to show that over50 per cent of the messages we50 per cent of the messages we

con

vey are thr

ough gesture

,c

on

vey are thr

ough gesture

,expression and postures. It is hard toexpression and postures. It is hard to

deny this side of communication.deny this side of communication.

Look,listen and think about whatLook,listen and think about what

other person says, how they say andother person says, how they say andwhat they do.what they do.


9/14

STRATEGIES AND TACTICSSTRATEGIES AND TACTICS

An eternal dilemma of negotiating is whether toAn eternal dilemma of negotiating is whether tobid high or bid low.bid high or bid low.Bidding highBidding high--::Always be ambitious in targetsAlways be ambitious in targetsyou set yourself. If you dont ask you dont get.you set yourself. If you dont ask you dont get.

People who set high target achieve better results.People who set high target achieve better results.Bidding lowBidding low--:: If you bid toolow the other partyIf you bid toolow the other partymay conclude that you are not really a seriousmay conclude that you are not really a seriouscharacter and may turn toone of their othercharacter and may turn toone of their otheroptions.options.B

idding firstB

idding first--::The first bid sets the tone f

or theThe first bid sets the t

one f

or thenegotiation.negotiation.

Bidding lastBidding last--::The riskof bidding last is that theThe riskof bidding last is that theother party makes an unacceptable suggestionother party makes an unacceptable suggestionand then feels unable to move from it.and then feels unable to move from it.


10/14

DEALINGDEALING

The interchange between the parties is theThe interchange between the parties is thefocus of negotiating.focus of negotiating.

AggressionAggression--::In realworld aggression isIn realworld aggression is

common problem to be countered as wellcommon problem to be countered as wellas a weapon to employ at times.as a weapon to employ at times.

DefenceDefence--::One party is often notOne party is often notinterested in seeking mutual interest.interested in seeking mutual interest.

EscalationEscalation--::dont loose control,keepdont loose control,keepcalm and dont respond with aggression.calm and dont respond with aggression.


11/14

TECHNIQUESTECHNIQUES

Most negotiating techniques are incompatible with seekingMost negotiating techniques are incompatible with seeking

a mutually advantageous result.a mutually advantageous result.Instant responseInstant response --::

Keep the initiative; an immediate challengeKeep the initiative; an immediate challengemakes the party doubt their own decision.makes the party doubt their own decision.The hypothetical offerThe hypothetical offer--::

It can avoid a deadlock. It is sighting shot,It can avoid a deadlock. It is sighting shot,intended to get a response, perhaps from anintended to get a response, perhaps from anuncommunicative negotiator.uncommunicative negotiator.The package dealThe package deal --::

A package deal requires a number of benefitsA package deal requires a number of benefitsbut with a number of concessions required in return. It isbut with a number of concessions required in return. It ispresented takepresented take--itit--oror--leaveleave--it offer, denying the other partyit offer, denying the other party

the right to take some element and leaving others.the right to take some element and leaving others.The dilemma of NoThe dilemma of No --::

No can be hardest and easiest word to use.No can be hardest and easiest word to use.Poor negotiator say no because they lack imagination andPoor negotiator say no because they lack imagination anddont make effort to discover the dealwaiting to be done.dont make effort to discover the dealwaiting to be done.Poor negotiator set out their terms and stick to them. GoodPoor negotiator set out their terms and stick to them. Good

negotiat

or find the

ways t

od

odea

ls

.neg

otiat

or find the

ways t

od

odea

ls

.


12/14

WINNING THE PEACEWINNING THE PEACE

The aftermath of the meetingThe aftermath of the meeting--::

The negotiating meeting is over,The negotiating meeting is over,how did it go? Was there progress towards yourhow did it go? Was there progress towards yourobjective or did you loose?objective or did you loose?

Saving faceSaving face--::

Always find a way for the other party toAlways find a way for the other party tosave face if you defeat them. It costs very littlesave face if you defeat them. It costs very littleto be humble after a successful negotiation.to be humble after a successful negotiation.

Mending fencesMending fences--::After a tough negotiation try to rebuildAfter a tough negotiation try to rebuild

damaged relationship.damaged relationship.


13/14

CONCLUSIONCONCLUSION

We all spend our lives negotiating, to getWe all spend our lives negotiating, to geta better delivery date, a pay rise or aa better delivery date, a pay rise or abetter price and it is surprising how similarbetter price and it is surprising how similar

are the issues ofour personal andare the issues ofour personal andbusiness lives. This book is intended tobusiness lives. This book is intended toprovide practical advice for everyone toprovide practical advice for everyone toimprove the outcome of all those deals.improve the outcome of all those deals.This book describes the preparation that isThis book describes the preparation that iscrucial for success,what happens at thecrucial for success,what happens at thenegotiation itself and aftermathnegotiation itself and aftermath-- winningwinningthe peace.the peace.


14/14

30 min.to negotiate a better deal

Documents