university of economics in bratislava, slovak republic

UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC

INTERNATIONAL NEGOTIATION –

UCL – JANUARY, 2014

lecturer Milan Oresky

INTERNATIONAL NEGOTIATION – UCL, JANUARY 2014

6. Negotiation Tactics

How to control negotiations

1. Controlling the environment (discussed earlier): arrangements, drafts, seating

2. Setting the agenda (discussed earlier): imposing agenda that you prefer

3. Controlling the course of negotiation: using questions and expressing emotions


Types of questions in negotiations

1. Open questions: designed to get more information and require explicit answers

2. Probing questions: more specific sort of open questions which require detailed explanation

3. Closed questions: requires short answers of “yes” or “no” type


Open questions and phrases (2)

Examples: What do you think about our proposal? Please tell us more about the strong sides of your proposed payment terms Could you elaborate a bit more on the delivery terms? Would you be so kind to explain your idea about the solution to this

problem? Correct me if I’m wrong The most important thing for me that everything is done correctly and fairly We would like to settle it in accordance with best common practice and

experience Can I ask a few questions to see if my understanding and information are

correct?


Open questions and phrases (3)

“Let the doors stay open” examples:

Let us say that we agree with that proposal, what would be your suggested way to proceed?

Is there any other information you feel I should have at this time?

Whys is that so important to you?

Let me get back to you on this later

Please help me understand the purpose of your request/offer


Probing questions

When you say “approximately”, what do you mean by that?

What else would that entail?

How specifically would that work?

If we meet your requirements what exactly would be your offer to us?

If speaking more specifically, what do you mean by saying…?

You said that your offer is… It seems that your current positions is…


Closed questions

Do you agree?

Are you saying we could by-pass that?

Is that always the case?

Am I correct?

Do you want me to close the issue?

Are you happy with this?

Should we proceed further?


Expressing and sharing emotions (1)

Speak about your emotions during negotiation process. Use it to create constructive and controllable environment.Examples: We had a good start. That makes me optimistic! We are doing not very well this time. Are your of the sameopinion? What are

the reasons your think? I feel exhausted by this issue. Should we change for somethingbetter? I am so happy we agreed on this. It makes me think we willmove easier now.

Don’t you think so? Should we break for a coffee? I think we deserved it both! Letsdiscuss it

informally…


Expressing and sharing emotions (2)

React immediately to what is unacceptable or undesirable foryou: take the control back.Examples:

Sorry to interrupt you, but I can’t understand the reasoning behind it I feel uncomfortable: I can’t see enough logic behind thesearguments I am an open person and I should tell you my opinion about what Ijust heard This made us a bit nervous. Could we go back and look to thesituation from

a different perspective It makes me feel bad if we can’t agree on it. Let us try to focus on itlater and

finish our agenda


Controlling the course of negotiation

Right questions help you control the overall situation of negotiation

Quick reaction and responsiveness enables you to take over the control of situation


Negotiation tactics

Negotiation tactics are purposely used or preliminaryplanned behavior, directed to achieve the main goalsof negotiations. They are directed to:

Reinforce negotiating power Gain some initial supremacy in negotiation Collect not disclosable information Make the other side emotionally disbalanced Take control over the negotiation process


Main negotiation tactics used

I. To check the opponent resistance point / reservation price/ maximum priceII. AggressiveIII. To gain positional advantageIV. To gain quantitative advantage (not equal exchange)V. To disbalance opponents emotionally

There are separate group of tactics, so called DIRTY or UNFAIR tactics often used in negotiations as well


Main negotiation tactics (1)

I. To check the opponent resistance point /reservationprice/ maximum price:

1. Small stepsBy adding a small improvements (step by step) to the first offer you arereaching the maximum price of the other side they are willing to pay2. Best offer for the budget you haveOffer to disclose your budget/ maximum price: “How much you canspend? We have the most suitable offer for you”3. Extreme position (Low ball/High ball)Initial offer received is done in the manner and under conditions to beunacceptable for the other side in order to provoke disclosure of theother side real intentions (resistance point)


Main negotiation tactics (2)II. Aggressive

1. First and Final offer (Ultimatum)Requirement to accept the first offer (or second) otherwise negotiationswill be stopped2. Threat of terminationRequirement to accept offer or conditions under threatening to terminatenegotiations3. “Best” offer (Take it or leave it)Explicit pressure not to enter into negotiations. Statement that the bestoffer is done and there is nothing more to add to it.4. Attacks Attacking you personally or attacking your company or your country .“Tell me, why I usually enter into some problems when we have a meeting orI’m coming to your country?”



III. To gain positional advantage (1)

1. Hand over (“Hot potato”)To handover your problem to the other side. “I have the amount Abut would like to have the thing B. Tell me, what I have to do?”2. Misleading (Snow ball)Concentration on some not really important issues, overloading theopponents with too much information3. Wrong targetOver evaluation of an argument or issue done on purpose to gain concessionin return. Not important concession is traded-off after hard bargaining4. Higher authorityAgreed issues or received offers have to be approved by the higher managementoffer is done and there is nothing more to add to it.



III. To gain positional advantage (2)

5. Good cop/ Bad copDeal with more sympathetic opponent while the other is absent orexcluded from negotiations6. ReluctanceShowing to the opponents that you are not interested or indifferentto negotiated subject7. The SqueezeTelling the other side that he or she has to do better in order to make the other side to give concessions without getting something back. “Seems tobe that you are not eager to work on it. We’ve done a number ofconcessions and waiting for your adequate move”


Main negotiation tactics (5)IV. To gain quantitative advantage (not equal exchange):

1. Split the differenceThe split difference between initial proposals “has to be approved” by oneside’s higher authority . You set and split the lower difference again2. Demand for reciprocityRequirement to reciprocate by giving a concession or offer to notimportant concessions made or offer given by the requesting side3. Additional requirementsNot important requirements and arguments are exchanged for animportant concessions. “If you can ‘t deliver the goods in 2 weeks than weneed additional discount of 2% to cover our stock management costs”4. NarrowingStarting from easy to agree issues and narrowing the disagreement to themost important one. “If we did all these, can’t we agree on this one?”



V. To disbalance opponents emotionally

1. Lost concentration (“Bus station”)Permanently changing the environment trough the course of negotiations: changing negotiating team members, inviting numerous experts, changing meeting places/rooms, stopping – starting negotiations because of different“ technical” reasons etc.2. OverreactionNot adequate emotional reaction to offers, concessions or arguments of opponents. “ You have to imagine me saying it to my boss. How I should explain such your offer to him?”3. ClarificationPermanently asking for clarification or additional substantiation of position/argument/offer in order to minimize opponent explanatory power and increase the chance of his mistakes


Main negotiation tactics (7)V. To disbalance opponents emotionally

4. Bad conditionsDisadvantageous seating arrangements (uncomfortable chairs, opposite the windows etc.), very early/late meetings, noisy/disturbing environment etc.5. Changing the agendaSkipping some issues, jumping back and forth through agenda of the meeting, including not agreed points to the agenda6. OverloadOverloading the other side with unnecessary, not important information,(statistics, reports, presentations, site visits etc.) or hide piece of important information in disproportional amount of non important one . Send information on Friday afternoon requiring an answer on Monday morning etc.


Unfair or ‘’dirty’’ tactics in negotiations (1)

Misleading/lying:

1. Wrong information/ facts:“This car belonged to an old lady who kept it all the time in her garage. It’s almost bran new...’’2. Limited authority:“Last time we agreed on the issue but our boss does not want to give in on this question..’’3. Too easy to be true:Your opponents taking the obligations too easy (they even do not plan to fulfill their duties) and require a real concessions from you in return


Unfair or ‘’dirty’’ tactics in negotiations (2)Psychological pressure:

1. Stress full environment: Uncomfortable chairs, small and noisy room, too dark or blinded by the light etc.2. Personal attacks, embarrassment, remarks: Remarks : ‘’please speak louder, we can’t catch a thing…’’, ‘’your documents submitted were a mess..’’, ‘’ information was outdated and unprofessionally prepared.’’ ‘’bad hotel reserved…’’ etc’. ,3. Threatening: ‘’We tell about it to your boss, shareholders, clients, journalists’’,‘’ We will go to your competitors, main rivals etc.’’4. Corruption: Usually the weakest member of your team, who has some‘’ history’’ or relations with your opponents, receives“ an interesting offer ‘’


Unfair or ‘’dirty’’ tactics in negotiations (3)Positional pressure:

1. Refusal to negotiate: For subjective reasons, like not met dates for drafts or samples submission etc., your opponents are refusing to start negotiations2. ‘’Spiraling’’ – the same requirements again “Sorry, we agreed last time, but we can’t accept it in full. This time because of...’’3. Playing with time: “Only when you meet these conditions, we are able to go further..’’4. Unreal demands: Opponent’s position is based on the terms you objectively can’t meet: ‘’If you can not do it in red color, we sent you the sample, We can not pay this price..’’. You required to make more concessions because you are ‘’failing to meet the agreed contract terms ‘’


4 Ways to Defend1. Ignore them Ignore the pressure, don’t play according to their ‘’rude’’ tactics2. Acknowledgement In a friendly manner, without any signs of anger inform your opponents that you understand their applied tactics3. Request to stop Make a firm and short statement asking opponents to stop their tactics. Explain that it is counter productive and they will be responsible for the failure of the negotiations and future of the mutual business relations4. Termination of the negotiations The most extreme way if others are used. In a calm manner inform the opponents that due to their destructive behaviour and attitude you terminate the meeting. Stay constructive and short, reconfirming that what’s happening is their fault

university of economics in bratislava, slovak republic

Documents

course of negotiation

negotiation tacticshow

negotiation process

types of questions

negotiations open questions

open examples

imposing agenda

controllable environment