Build Your Negotiations skills

By: Ali Makki

Intro

“ Negotiation involves two or more parties with competing or conflicting interests or needs, working towards an agreement on

how they will cooperate.”

•The basis of negotiations is some form of conflict.

•Negotiation is complex, dynamic process.

•Many people are afraid of conflict and negotiations. •It requires behavioral and analytical skills.

•Everybody can learn how to become an effective negotiator.

Strategies for negotiations

The first steps in selecting a strategy involve in:

• Gathering information

• Considering corporate goals and constraints

• Analyzing each party’s strengths and weaknesses

And should be determined, to a large extent based on an:

• Analysis of the Strengths

• Analysis of the Weaknesses

Strategies for negotiations

•Strengths

- Preparation.- Clear and plain speaking, good communicator.- Recognition of other party’s perspective, friendliness.- Focus on win – win : fairness and honesty.

•Weaknesses

- Impatience.- Jumping right into business without a period of socializing.- Poor listening skills.- Failing to have the authority to make decision on the spot.

Balancing the outcome & relationship

The distributive view of negotiation is the traditional fixed-pie approach in which negotiators see the situation as a pie that they have to divide between them:

•A negotiation in which the parties compete over the distribution of a fixed sum of value.

•Key question here is “Who will claim the most value?”

•A gain by one party is at the expense of the other.

•Win-lose situation

Distributive negotiation

Balancing the outcome & relationship

A newer, more creative approach to negotiation is called the integrative approach. In this approach, both parties look for ways to integrate their goals under a larger umbrella.

Integrative negotiation

•A negotiation in which the parties cooperate to achieve the maximum benefits by integrating their interests into an agreement.

•These deals are about creating value and claiming it.

•Win-win situation.

Characteristics of a good negotiator• Assertive

• Patient

• Open-Minded

• Careful Listener

• Self-Disciplined

• Creative

• Flexible

• Highly Ethical

• Persuasive

• Decisive

• Confident

• Considerate

• Prudent

• Respect for Others

• Ability to Handle Pressure

Negotiating Roles

Factual Negotiator

Relational Negotiator

Intuitive Negotiator

Logical Negotiator

Lead Negotiator

Negotiating Roles

Factual Negotiator

FeaturesKnows all facts related to the issues

Asks factual questionsEnsures that no fact is left out

Provides information

ProblemTendency to leave emotional issues aside while focusing on details

and make the other party hostile

Negotiating Roles

Logical Negotiator

FeaturesSets rules of negotiation

Develops an agendaArgues logically

Adapts position to meet changing situation

ProblemLikely to see the process as being more important that content or

outcome

Negotiating Roles

Relational Negotiator

FeaturesEstablishes relationships with the other party

Builds trustIs sensitive to the other party’s emotional issues

Perceives the position of the other party

ProblemPropensity to concentrate on building relationships and lose sight of

the reason for negotiation

Negotiating Roles

Intuitive Negotiator

FeaturesAble to proffer unexpected solution

Able to separate key issues from othersVisualizes implications of proposal

Accurately guesses the progress of negotiationSees the picture

ProblemThis may be dangerous because of wildness and lack of discipline

Negotiating Roles

Lead Negotiator

This coordinates all the other roles and decides appropriate strategy to apply.

7 elements of a good negotiation•Interests: What do the parties want?

•Options: What are likely areas of agreement?

•Alternatives: What if we don’t agree? (BATNA)

•Legitimacy: How persuasive is each party?

•Communication: Are both parties willing to discuss and listen?

•Relationship: Are both parties ready to establish operational relationship?

•Commitment: What’s the structure of commitment from both parties?

What is BATNA ?B estA lternativeT o aN egotiatedA greement

• How do the proposals match your realistic alternative if you cannot come to a deal?

• The more attractive your BATNA is compared with the proposals you receive, the more POWER you have; the less attractive your BATNA is compared to the deal on offer, the less power you have.

What is BATNA ?Developing BATNA

•List what you would do if you fail to reach an agreement. •Convert the most promising options into practical choices. •Select the single best option; that is your BATNA.

•Compare your BATNA to all proposals.

•If an offer is better than your BATNA, consider improving or accepting it.

•If an offer is worse than your BATNA, consider rejecting it.

•If they will not improve their offer, consider exercising your BATNA.

Tips to help negotiating successfully•Don't be afraid to ask for what you want.•Shut up and listen.•Do your homework.•Always be willing to walk away.•Don't be in a hurry.•Aim high and expect the best outcome.•Focus on the other side's pressure, not yours.•Show the other person how their needs will be met.•Don't give anything away without getting something in return.•Don't take the issues or the other person's behavior personally.

The DO’s in negotiating

• Prioritizing arguments

• Listening and learning

• Controlling emotions

•Identifying Tenant strategies and tactics

•Maintaining the dialogue

The DON’Ts in negotiating

• Go in negotiation unprepared

• Strictly rely on creativity, improvisation and intuition

• Not know when to walk away

•Ignore legitimacy

•Make a commitment before listening