Negotiation Skills

Kevin R. ThomasManager, Training & Development

x3542Kevin.R.Thomas@williams.edu

Objectives

• You’ll learn:– Specific steps you

can take to prepare for any negotiation

– Best practices for implementing a negotiation strategy

Agenda1

• Overview and Introductions

2• Preparing for a Negotiation

3• During a Negotiation

4• Complete Preparation Guide

5• Role Play

5• Debrief

Agenda1

• Overview and Introductions

2• Preparing for a Negotiation

3• During a Negotiation

4• Complete Preparation Guide

5• Role Play

5• Debrief

Norms

• Confidentiality• Participation

Traditional Negotiation

Commitment (extreme position)

Final offer

Last Offer

Final last offer

Commitment (extreme position)

Final offer

Last offer

Final last offer

Threat to walk

Threat to walk

Harvard University, Project on Negotiation

Value-Based Negotiation

Communication

Relationship

Interests

Options

Legitimacy

BATNA Commitment

Increasing the Size of the PieFight over fixed, limited, quantitative terms.Neither side gets all they want

Creating possibilities that create fulfillmentof qualitative values, needs, desiresBoth sides get everything they want

Key Principles

• Every negotiation is an opportunity to build relationships

• The best negotiations help both parties get more of what they want.

• Every negotiation is an opportunity for you to “walk the walk” of your values as a person and professional.

Agenda1

• Overview and Introductions

2• Preparing for a Negotiation

3• During a Negotiation

4• Complete Preparation Guide

5• Role Play

5• Debrief

Clarify Your Goals

• What is the ideal outcome of this negotiation:– Terms of the agreement – think about the – Status of the relationship at the end– How you felt about yourself and how you

behaved.• Universally valuable goals:– To better understand the other person’s position– To express your own views skillfully– To do your part to creating a constructive problem

solving dialog

A Good Agreement…

• Strengthens the relationship between the parties

• Meets the interests of all parties well• Is the best of many options• Is legitimate and durable, supported by

objective criteria• Is better than our BATNA (Best Alternative to a

Negotiated Agreement)• Identifies specific, firm and implementable

commitments

Substance and Relationship

Accommodation Negotiation

Avoidance CompetitionImpo

rtan

ce o

f Rel

ation

ship

High

LowImportance of Substance

High

Diagnose Their World

• What do you know about …– Their hopes and fears– Their core concerns– Their “trading currencies”– The influence of other stakeholders on them– How they are likely to see you

Trading Currencies

• Any negotiation is about an exchange of value• Value takes many forms• Trading currencies define main categories of

value that can be exchanged.• Understand what you have to offer• Understand what they may have to offer• Decide which offerings are most important for

the negotiation

Trading CurrenciesCurrency Definition and Example

Inspiration vision, excellence, morality/ethicsEx: car sale from Friday Night Lights

Task resources, information, assistance, supportEx: Training consultant sends me a free book

Position advancement, recognition, visibility, reputation,networks/contacts, importance/insidernessEx: Never Eat Alone

Relationship acceptance, personal support, understanding, inclusionEx: My Amazon return

Personal Gratitude: appreciation Ownership/involvement over important tasksSelf concept: self-esteemComfort: avoidance of hassles

Disclosure: The Negotiator’s Dilemma

No Disclosure:Missed opportunity

With Disclosure:Risk of exploitation

Disclosure: Managing the Dilemma

• Prepare. Consider what you can reveal.• Reveal the nature of your interests, but not

the intensity• Share information reciprocally, in bite-sized

pieces• Promote a frame of side-by-side joint

problem-solving

Objective Criteria

• Represent reasonable standards that create a “benchmark” for what a reasonable outcome could look like:– Professional Standards– Legal Precedent– Scientific Findings– Market Price– Expert Opinion

BATNA

• Best Alternative to a Negotiated Agreement:• Know Your BATNA:– What’s next for you if you can’t come to an

agreement?– What can you do to improve your BATNA?

• Know Their BATNA:– What might their BATNA be?– What could you do to find out?

Agenda

1• Overview and Introductions

2• Preparing for a Negotiation

3• During a Negotiation

4• Role Play

5• Debrief

Focus on Interests not Positions

• Positions: Statements of desired negotiation outcomes

• Interests: Needs, concerns, goals that motivate us to negotiate

• Probe for interests – Ask “why” or “why not?”• Conflict is a signal to exchange information

Conflict as a Signal to Exchange Information

Disagreement Information Exchange

Agreement

Shared Interests

Different Interests

Joint Effort

Exchange of Value

Invent Options for Mutual Gain

• Option generation should follow discussion of interests and be based upon them

• Follow brainstorming rules• Separate option generation from option

evaluation and commitment• A successful option maximizes joint gain, is

efficient, and expands the pie

How to Use Objective Criteria

• Use criteria as a “sword” – “Let me show you why this is fair.”

• Use criteria as a “shield” – “Why is that a fair number?”

Commitments

• Firm: explicit, often written

• Concrete: use the SMART formula

Agenda1

• Overview and Introductions

2• Preparing for a Negotiation

3• During a Negotiation

4• Complete Preparation Guide

5• Role Play

5• Debrief

Agenda1

• Overview and Introductions

2• Preparing for a Negotiation

3• During a Negotiation

4• Complete Preparation Guide

5• Role Play

5• Debrief

Agenda1

• Overview and Introductions

2• Preparing for a Negotiation

3• During a Negotiation

4• Complete Preparation Guide

5• Role Play

5• Debrief

Kevin R. ThomasManager, Training & Development

x3542Kevin.R.Thomas@williams.edu

• Program evaluation link will be sent by email.• You’ll get a link to a course page with all the materials.