power negotiator trng
DESCRIPTION
a 2 day negotiation skills program for Sourcing teams and everybody who negotiatesTRANSCRIPT
Power NegotiatorYou don’t get what you deserve, you get what you negotiate
designed for
EVERYBODY WHO NEEDS TO NEGOTIATE
By
Direction One Consulting
Objective of the Program
• To understand various negotiation tactics and counter-tactics.
• To evolve a philosophy of negotiations for Mahindra 2w sourcing department.
• To understand and practice a structured way of negotiating.
• All the above leading to higher productivity
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The POWER Negotiating Process
P O W E R
Prepare Open your positions
Working with
effective arguments
and tradeoffs
Effecting compromises
Reaching and documenting agreements on a win-win note
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How to prepare for a Negotiation?
• Have three different positions planned:– Your opening position.– Your ideal position.– Your walk – away position.
• Add more variables.• Estimate cost and value – low cost to you and
high value to the other party.• Practice to assertively justify your needs and
wants
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How to decide an opening position?
• Costs.• Profits.• What the market can bear.• Equal consumer and producer surplus.
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What variables can I add to my negotiation?
• Volumes.• Price.• Payment terms.• References, letters of recommendations.• Mould costs.• Machinery.• Financial assistance.• Training.
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Tactics and Counter-tactics
• Tactic = ask for more
• Counter-tactic = Swing an equal step to the other side of your ideal position.
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Tactics and Counter-tactics
• Tactic = Make a ridiculous first offer.
• Counter-tactic = Respond with an equally ridiculous counter offer
Direction One Consulting
Tactics and Counter-tactics
• Tactic = Higher authority.
• Counter-tactic = Respond with a higher authority of your own.
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Tactics and Counter-tactics
• Tactic = Good cop, bad cop.
• Counter-tactic:– Point out the tactic.– Introduce a bad cop of your own – real or imaginary
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Tactics and Counter-tactics
• Tactic = personal attack.
• Counter-tactic:– Point out the tactic.– Agree with the feeling, not with
the statement.– Agree with the statement in
general, while excluding yourself from it.
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Tactics and Counter-tactics
• Tactic = Reluctant seller or buyer.
• Counter-tactic = Do the same
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Tactics and Counter-tactics
• Tactic = Constant grinding, asking for more and more.
• Counter-tactic:– Trade off, ask for something in return for everything you give.– Start tapering the discounts.
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Tactics and Counter-tactics
• Tactic = Getting stuck on a particular position.
• Counter-tactic = Park the point for the time-being, agree to come back to the point after other issues are sorted out.
• Change the people involved.
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Tactics and Counter-tactics
• Tactic = low budget.
• Counter-tactic:– Find out budget.– Explain value.– Talk to someone of higher authority.– Scale down the specs to match the
budget.– Adjust on some other variable like
volume or payment terms.– Share costs to reduce eg transport.
Direction One Consulting
Tactics and Counter-tactics
• Tactic = Competitive comparison.
• Counter-tactic:– Politely ask for proof.– Ensure it is an apple to apple comparison.– Add variables, reduce the benchmarks of
comparison.– Trade offs and taper discounts.
Direction One Consulting
Tactics and Counter-tactics
• Tactic = I am your best friend.
• Counter-tactic:– So am I, but I am also answerable to my
seniors.– Probe and be on guard.
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Tactics and Counter-tactics
• Tactic = discount first, then large order.
• Counter-tactic:– Offer staggered discounts.
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Tactics and Counter-tactics
• Tactic = slow player.
• Counter-tactic:– Make yourself unavailable for some time.– Test with a tentative close.
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Evolving a philosophy of negotiations
• Think of the best negotiating situation that you were a part of.
• Think of the worst.• What kind of behaviours………• What kind of feelings……….
• Lets evolve a philosophy of negotiating for Mahindra 2 Wheelers Sourcing department
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Win win is….
• You do business, not because you have no other choice, but because you want to.
• You want to maintain the relationship, even though you have no need to.
• And both the above points are still true even when both parties know everything about each other.
Direction One Consulting
The POWER Negotiating Process
P O W E R
Prepare Open your positions
Working with
effective arguments
and tradeoffs
Effecting compromises
Reaching and documenting agreements on a win-win note
Direction One Consulting
Understanding the financial implication
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• Sales Rs 100.• Costs Rs 90
• Calculate impact on profits if:
• Sales increase by 10%.• Costs reduce by 10%.
Understanding the financial implication
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• Cost Rs 100.
• Calculate impact on profits if:
• payment terms agreed for 30 extra days.
7 steps to action!
1. Visualize what you want in personal and professional life.2. Select one activity – implement the 21 day rule.3. Be like the deer in commitment.4. Announce your action plan to all.5. Use the help of other people - appoint a buddy/ nagger.6. Write it down, send to buddy / nagger.7. Discuss with manager.
Direction One Consulting
Maneesh KonkarEmail: [email protected]: www.directiononeonline.comFacebook:
http://www.facebook.com/pages/Young-Leaders-at-Every-Level/189572801069334?v=wall
Tel: +91 – 98205 03710
Direction One Consulting