Negotiation SkillsNegotiation Skills

Overview

What is negotiation?What is negotiation? Negotiation frameworkNegotiation framework Negotiation planningNegotiation planning Negotiation tactics: trying to reach Negotiation tactics: trying to reach

agreementagreement Power in negotiationPower in negotiation ConcessionsConcessions

22

What Is Negotiation?

A process of formal communication, A process of formal communication, either face-to-face or via electronic either face-to-face or via electronic means, where two or more people means, where two or more people come together to seek mutual come together to seek mutual agreement about an issue or issuesagreement about an issue or issues

Involves the management of time, Involves the management of time, information, and power between information, and power between individuals and organizations who are individuals and organizations who are interdependentinterdependent

33

What Is Negotiation?

Relationships between people, not just Relationships between people, not just organizationsorganizations

PersuasionPersuasion Negotiation skills can be honed and Negotiation skills can be honed and

practicedpracticed

44

Terms Used in Negotiation

BATNA (best alternative to a negotiated BATNA (best alternative to a negotiated agreement)agreement)

PositionsPositions InterestsInterests Needs Needs WantsWants

55

Establish Positions

66

Buyer

SellerSeller

Asp

iration

A

spiratio

n

Po

int

Po

int

Asp

irat

ion

P

oin

t

B.A

.T.N

.A.

B.A

.T.N

.A. B

.A.T

.N.A

.

Zone of Likely Agreement

Example is a buyer-seller Example is a buyer-seller price negotiationprice negotiation

Triangle Talk

77

The Negotiation

Process

Step 1:Step 1:Know Know

Exactly Exactly What You What You

WantWant

Step 2:Step 2:Know Know

Exactly Exactly What They What They

WantWant

Step 3:Step 3:Propose Action in a Way that They Can AcceptPropose Action in a Way that They Can Accept

Negotiation Framework

88

Points to Focus On

Defining the issuesDefining the issues Defining the Defining the

negotiating mixnegotiating mix Defining interestsDefining interests Defining objectives Defining objectives

and openingsand openings Assessing Assessing

constituents and constituents and social contextsocial context

Analyzing the other Analyzing the other partyparty

Planning issue Planning issue presentation and presentation and defensedefense

Defining protocolsDefining protocols Where to negotiateWhere to negotiate

99

Being an Effective Negotiator

Willing to compromise or revise goalsWilling to compromise or revise goals View issues independentlyView issues independently Establish upper and lower ranges for each major Establish upper and lower ranges for each major

issueissue Explore additional optionsExplore additional options Build on common ground between partiesBuild on common ground between parties Avoid making irritating commentsAvoid making irritating comments Avoid argumentation by presenting too many Avoid argumentation by presenting too many

reasonsreasons Make fewer counterproposalsMake fewer counterproposals

1010

Negotiation Tactics

Low ballLow ball Honesty and Honesty and

opennessopenness Questions/Aggressive Questions/Aggressive

BehaviorBehavior CaucusCaucus Trial balloonTrial balloon Price increasePrice increase BogeyBogey NibbleNibble

High ballHigh ball Best and final offerBest and final offer SilenceSilence Planned concessionsPlanned concessions VenueVenue Good Cop/Bad CopGood Cop/Bad Cop ChickenChicken IntimidationIntimidation SnowjobSnowjob

1111

Use of Power

Used to support one’s advantageUsed to support one’s advantage Need to be careful not to abuse powerNeed to be careful not to abuse power

Damaged relationshipsDamaged relationships Invited retaliationInvited retaliation Diminished value of that powerDiminished value of that power

Some types of power interact Some types of power interact synergistically with otherssynergistically with others Example - expert and referent powerExample - expert and referent power

1212

Concessions

Movement away from a negotiating Movement away from a negotiating position that has value to the other position that has value to the other partyparty

Give-and-take process is normal in Give-and-take process is normal in most negotiationsmost negotiations

Need to avoid giving away concessions Need to avoid giving away concessions without receiving something of equal or without receiving something of equal or greater value in returngreater value in return

1313

Thank You