negotiation skills
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Negotiating SkillsTo provide you with the skills
to plan & implement successful negotiation
At the end of the course you will appreciate how to:
• Establish objectives to be achieved by negotiation.
• Identify a range of outcomes from the desired ideal to the ultimate acceptable fall back position.
• Use interpersonal skills to influence others in both informal and formal situations to achieve your objectives.
• Act assertively to achieve objectives • Reduce resistance & minimise conflict• Know how & when to accept the opinions,
values & will of others • Work to achieve a WIN-WIN situation
Negotiating Skills
Negotiation occurs when there is something of value that you wish to attain
• Need is the negotiators starting point• Need is also the weakness that can be exploited• Negotiation is also a process that is of benefit to
all parties
Negotiating Skills
Ineffective Negotiation is about:
• Non mutual benefit• Compromising for no return • Playing games
Think of a time when a Think of a time when a negotiation has not been negotiation has not been
successful.successful.Can you identify what went Can you identify what went
wrong?wrong?
When you have purchased
a house or a car –
Did you negotiate terms?
Were you successful?
Negotiating Skills
Effective Negotiation
• Is an important communication skill
• Reaches the agreement that best meets both sides requirements
• Should be conducted in a professional manner
• Be a solid foundation on which to build future relationships
Negotiating Skills
Preparing yourself
Preparation enables you to : Preparation enables you to :
• Identify your objectives • Identify targets• Know your resistance point• Adopt the most suitable style• Time the interaction correctly• Achieve a deal
Negotiating Skills
Traditional Negotiation
Has two sides Is a form of warfare
Has opposing objectives Has a short sighted approach
Formal Negotiation
Favours the party with the strongest power baseLimits the likelihood of informal talks Emphasises the letter of agreement
Informal Negotiation
Emphasises the relationship between the two parties
Encourages the spirit of any agreement reached
Negotiating Skills
Modern Negotiation - Benefits
Enables strategic alliances to be built
Emphasises partnerships
Builds relationships
Is effective long term
Outcomes From Negotiation
Need to achieve the objective set
Be of benefit to all parties
Ensuring a WIN/WIN situation
Negotiating Skills
Identifying Possible Outcomes
Write down all your objectives Put them in order of priority Identify issues that are open to compromiseIdentify those that are not
Classifying Priorities
Those that are desirable
Those that are acceptable
Those that are the minimum you/the organisation require
Negotiating Skills
What is influencing?
Achieving a result that meets the legitimate needs
of both sides
Achieving long lasting results
Improving the relationship of the people involved
Legitimate is the important word here. Needs must be legitimate if influencing is to be
successful.For influencing to be effective it has to be
sustainable.
Negotiating Skills
The MIGHT IS RIGHT style of influencing always fails.
People can appear to agree but over time they may show their disagreement by leaving the workplace.
A boss who forces his influence onto his work-team may only see short term gains.
The relationship of trust may be destroyed and will be hard to rebuild.
What is influencing?
When it fails
Negotiating Skills
Why is influencing important?
Flatter organisation structures need it to be effective.
Lean is mean – more stress is prevalent in current organisations.
The rise of the customer – the customer is not always right, but it is our job to make them ‘feel’ right.
Working across organisations – it’s the only positive way forward.
The demise of traditional authority – all employees have a vested interest in the future success of any company/organisation.
Negotiating Skills
Influencing is not about :Forcing your point of view on othersNagging until they agreeGiving in to someoneBargainingA debate
Dealing with others assertivelySpeaking with knowledge and confidenceListening to their point of viewAppreciating the differencesShowing respect
It is about
Negotiating Skills
The Levers Of Influence Pull Skills
Creating rapport
Authentic listening
Skilful questioning
These Pull techniques also involve the effective use of non-verbal
communication.
Creating rapportCreating rapport : : Posture Posture Voice – Tone & VolumeVoice – Tone & VolumeGesture Gesture Eye Contact Eye Contact Facial expressionsFacial expressionsHow we occupy our spaceHow we occupy our space
Consider carefully how you want to build the relationshipwith someone who you will be negotiating with.
Negotiating Skills
The aim is empathy – a non-judgmental state that aims to understand the other person.
Authentic Listening is :
Listen for content
Listening to the other messages
Summarising the content
Summarising the emotion
Testing your assumptions
Authentic Listening
Negotiating Skills
Barriers to ListeningDialogue of the deal - Both sides within a discussion, intent on making
their own point, may fail to listen to each other.Experience - The parties may have had bad experiences of negotiations
in the past.Familiarity - Can be a crucial disabler when negotiating. Skim Listening - Picking up on key words and missing vital parts of the
conversation.Attention span – Are you focused or distracted?
Negotiating Skills
Pull Levers Questioning :
Have a questioning strategy –
USE:
Hypothetical questions
Defining questions
Probing questions
The aim is to use effective questioning skills to Help build rapport
Obtain accurate informationObtain other people’s opinion
Negotiating Skills
Assertiveness is Saying what you mean
Meaning what you say
Asking for what you want clearly
Listening to what the other person is saying
Being honest about what is relevant
Being prepared to look for a workable compromise
Being Assertive during a negotiation is the best wayto achieve a win/win outcome. Conduct your conversation
with clarity, confidence and an open mind.
Negotiating Skills
Recognising Assertiveness
Effective body language – how would you describe this?Effective body language – how would you describe this?Use assertive language – what is considered assertive Use assertive language – what is considered assertive language?language?
Never become emotionalAngry
Resentful Frustrated
“Behaviour breeds behaviour”Keep the temperature low
Stay detached Show respect
RespondingRespondingNotNot
ReactingReacting
Negotiating Skills
Power In Negotiation
Negotiation assumes a “certain equality” between parties
Negotiation refers to obtaining something of value that someone else has. The focus is upon
mutual benefit.Differing power bases can lead into fighting
behaviours.Parties do test each others strengths and probe into just how dependant they are on each other.
A balance of power is essential if negotiations are to be successful.
Negotiating Skills
Influencing The balance Of Power
Facts Expertise Explore Strengthen Authority
Facts – The skilled negotiator has all the facts , background history and figures. Even a hardened MD
cannot fail to be impressed.Expertise – Again gained by effective preparation.
Explore – Pose questions in a non threatening manner. How do we find this solution together.
Strengthen – Develop acceptance and trust . Find & implement outcomes that are of interest to both parties.
Authority – it is vital that both parties have the authority to make the outcome happen.
Negotiating Skills
Negotiation Strategy
Opening Exploration Create movement
Create Closure Finish
The Process
Agree Agree BoundariesBoundaries
Deny Deny NeedNeed
Stress theStress theDifferenceDifference
Agree Boundaries – On which the negotiation will focus.Deny the need – A deliberate strategy in which both parties play down
their need for a particular outcome. From the outset skilled negotiators will play up the fact that they do not
believe the outcome will be successful.
Negotiating Skills
Opening Negotiation
• Set the offer at the most appropriate level
normally a long way removed from target.• Respond in a way that is deemed most appropriate,
usually rejection.
There is no such thing as a first offer that is too good to refuse. Openings within
negotiation are like a chess match both parties will begin with an offer that is far
removed from target.The opening offer is very rarely a serious
commitment.
Negotiating Skills
Exploration
Identify : Needs Wants Interests
Needs – Those things that you feel you cannot do withoutWants – Those things that people would prefer to have
Interests – The reasons that lie behind the WANTS & NEEDS
It allows the parties to explore the situation.Needs & Wants are talked about first.
A skilful negotiator can see where the other party expect the final outcome to be.
Exploration is important because:
Negotiating Skills
Create Movement• Be prepared to compromise• Explore possibilities• Ask ‘what if?’ questions• Be clear about the variables • Exchange
During this phase it is vital that if you agree to a concession you get
something back in return .Don’t give anything away too easily – people do not value
things that have been obtained with little effort.
Restate your case – Ensure that the agreement is clear by going over again
what has been agreed. Restate everything that you have
agreed on. Minimise the perception of what is left to agree.
Write it down – It may prompt some questions before the deal is closed.
Prevention is better then cure.
Firming Up Proposals
Negotiating Skills
• Keep moving • Don’t get bogged down in detail • Focus on issues • Give recognition• Give the other party a final
opportunity to clarify any issues
Create Closure
Negotiating Skills
Closing
• List of issues from both sides • Prepare a draft framework• Tackle outstanding details• Record each point as it is agreed• Agree a process to review• Agree a procedure for complaints
Know when to stop talking
The skilled negotiator will not be distracted from their task. Always remember that the whole point of negotiation is
that two parties have something of value.
Negotiating Skills
Failing Negotiation
Initial commitment may be based on incomplete information Negotiation may be based on false assumption
People communicate using their mind & body through the use of emotion. Misunderstandings can arise because of stereotyping.
Tension is caused by emotions which can then lead to stress & anxiety.Listen actively with empathy to reduce the perceived threat and try to show
acceptance and understanding.If everyone ignores the pinch then a crunch can be just around the corner.
The relationship may suffer as a consequence.The secret of success is to look for the pinch before it becomes a crunch.
Negotiating Skills
Approaches to Resolve Conflict
Skilful listening to improve understanding Skilful listening to improve understanding
Assertion skillsAssertion skills
Influence by using interpersonal skillsInfluence by using interpersonal skills
Emphasise issues, break up large issuesEmphasise issues, break up large issues
Make careful note of actions decidedMake careful note of actions decided
Facilitation – Helping people communicate with one another.
Conciliation or mediation – Working towards resolving an issue whilst remaining independent. Advocacy – negotiating on behalf of one party.
Negotiating Skills
Outcomes From Negotiation
In a win/lose situation one party may feel threatened by the other and react in a defensive or aggressive way to ensure they don’t get beaten into
submission.In a lose /lose situation, both parties have lost and no-one gets what they
really want. In a win/win situation, this provides the basis for a long lasting partnership
that can be mutually rewarding.
Negotiating Skills
Stages to Successful Negotiation
• Exchange information• Assess Wants, Needs, Information• Find the middle ground which is fair & reasonable to
both• Firm up a mutually agreeable solution
Recognise these stages, work towards them.Use the notes in this course to help future
Negotiations. Create a learning log – a simple diary will do.Assess every negotiation you are involved in.
What went well? What could be better? What will you do differently next time?
Negotiating Skills
A successful Negotiator can
• Build Rapport• Network effectively• Work in a team• Build consensus• Be persuasive• Deal with conflict
Negotiating Skills