““Winning EdgeWinning Edge” ”

Negotiating Skills WorkshopNegotiating Skills Workshop

The Principles & Practices of The Principles & Practices of Interpersonal EffectivenessInterpersonal Effectiveness

Presents Presents

Most Common Negotiating MistakesMost Common Negotiating Mistakes

Not realizing when negotiations Not realizing when negotiations BeginBegin

Underestimating of ones Underestimating of ones PowerPower

Giving Giving concessionsconcessions to to EarlyEarly, , OftenOften and and EasilyEasily!!

Not Not PreparingPreparing effectively, thus failing to understand the effectively, thus failing to understand the other partyother party

Allowing the negotiations to become Allowing the negotiations to become AdversarialAdversarial

Failing to negotiate Failing to negotiate InternallyInternally first first

Letting your Letting your EGOEGO (emotions) get in the way (emotions) get in the way

Most Common Negotiating MistakesMost Common Negotiating Mistakes

A mind-set that it is A mind-set that it is RigidRigid, failing to listen & understand, failing to listen & understand

Saying Saying YesYes to things that you have not previously thought to things that you have not previously thought throughthrough

Failing to call Failing to call Time - OutTime - Out, in the heat of the action, in the heat of the action

Not knowing when to Not knowing when to WalkWalk away away

Failing to recognize when we are Failing to recognize when we are NotNot dealing with a win – dealing with a win – win negotiatorwin negotiator

Ineffective follow- throughIneffective follow- through

1010 Things you must Know about Lower Brain Things you must Know about Lower Brain It operates on a It operates on a subsub - conscious level - conscious level

It has only one purpose – to keep us It has only one purpose – to keep us safesafe

Always using 5 Always using 5 sensessenses to scan environment looking for to scan environment looking for potential threats and dangers … Can’t tell the difference potential threats and dangers … Can’t tell the difference between some real and imaginedbetween some real and imagined

It is the well-spring of all human It is the well-spring of all human emotionsemotions (Seat of (Seat of Values and Beliefs)Values and Beliefs)

Wants immediate Wants immediate gratificationgratification … Does not anticipate … Does not anticipate consequences well … Thinks short-termconsequences well … Thinks short-term

Success Insight # 1 - Biology of BehaviorSuccess Insight # 1 - Biology of Behavior

Success Insight # 1 - Biology of BehaviorSuccess Insight # 1 - Biology of Behavior

Operational system is “association” always asks … “What Operational system is “association” always asks … “What does this does this meanmean” … Meaning is ” … Meaning is PositivePositive or or NegativeNegative

It is largely It is largely visuallyvisually driven driven

It is a It is a outcome basedoutcome based mechanism mechanism

Unlimited source of Unlimited source of creativitycreativity

It is the seat of procedural memory or ones It is the seat of procedural memory or ones habithabit patterns patterns

1010 Things you must Know about Lower Brain Things you must Know about Lower Brain

Negotiating – Best PracticesNegotiating – Best Practices

In any long-term relationship, your method of negotiating can In any long-term relationship, your method of negotiating can only be based on the guiding principle - only be based on the guiding principle - Win/ WinWin/ Win or or nono DealDeal! !

Learn to “Learn to “Sit on your own shoulderSit on your own shoulder””

Separate person from issuesSeparate person from issues … Be objective & … Be objective & LogicalLogical level … level … Be soft on people & hard on issuesBe soft on people & hard on issues

Build in as Build in as many variables as possiblemany variables as possible …. Greater number …. Greater number of options … Avoids take-it-or-leave win-lose situationof options … Avoids take-it-or-leave win-lose situation

Never say Never say YesYes to anything you have not previously thought- to anything you have not previously thought-out … “I will get back to you quickly on that one.”out … “I will get back to you quickly on that one.”

Whenever Whenever disagreementdisagreement arises arises ask questionsask questions and and listenlisten

When emotions are running high call for a When emotions are running high call for a TimeTime - - OutOut

““Collaborative Problem Solving” ProcessCollaborative Problem Solving” Process

1.1. DefineDefine in terms of in terms of needsneeds & & interestsinterests, not , not PositionsPositions! !

Create Create Win-Win Win-Win modemode by by discoveringdiscovering needsneeds & & interestsinterests BehindBehind their their position … What’s position … What’s truly importanttruly important to them! to them!

I.I. Seek firstSeek first to to UnderstandUnderstand and demonstrate that you do and demonstrate that you do

II.II. State concisely your needs, interests and restrictionsState concisely your needs, interests and restrictions

III.III. Repeat until both parties understand the otherRepeat until both parties understand the other

2.2. BrainstormBrainstorm possible alternative solutions … Best Practices possible alternative solutions … Best Practices

I.I. Sit side by side facing the problemSit side by side facing the problem

II.II. Employ a “Employ a “No CriticismNo Criticism” rule” rule

III.III. Record all ideas in full viewRecord all ideas in full view

““Collaborative Problem Solving” ProcessCollaborative Problem Solving” Process

3.3. EvaluateEvaluate the alternative solution against the needs & interests the alternative solution against the needs & interests of both parties … Best Practices …of both parties … Best Practices …

I.I. Group alternative solutions into broad categoriesGroup alternative solutions into broad categories

II.II. Star the most promising alternative solutionsStar the most promising alternative solutions

III.III. Work on improving and / or combining alternative Work on improving and / or combining alternative solutionssolutions

4.4. Make DecisionMake Decision – Only agree to solutions that both parties feel – Only agree to solutions that both parties feel Good about!Good about!

5.5. Develop an “Action Develop an “Action PlanPlan” … WHO does WHAT by WHEN” … WHO does WHAT by WHEN

Competitive Negotiations - GuidelinesCompetitive Negotiations - Guidelines

We must We must learnlearn to to identifyidentify & & defenddefend against hard ball tactics against hard ball tactics

Guiding PrincipleGuiding Principle - Win the best possible deal for self / us, - Win the best possible deal for self / us, without making the counterpart feel like they lostwithout making the counterpart feel like they lost

Ask for more than you expectAsk for more than you expect … Why?? … Why??– Higher opening positionHigher opening position the the betterbetter the the outcomeoutcome – You just You just might getmight get what you ask for what you ask for– Leaves Leaves room to haggleroom to haggle

Build in Build in bufferbuffer by “ by “bracketingbracketing” your offer in preparation to “” your offer in preparation to “split split the differencethe difference” …” …

Always be Always be reluctant sellerreluctant seller and an and an unenthusiastic buyerunenthusiastic buyer!!! … !!! … Demonstrates “walk-away” powerDemonstrates “walk-away” power

Competitive Negotiations - GuidelinesCompetitive Negotiations - Guidelines If If buyer request cost breakdownsbuyer request cost breakdowns; If ; If sellingselling try try notnot to give to give

Making the Making the first offerfirst offer … … – Try to get the other person to make Try to get the other person to make firstfirst offer offer– If “Price Range” has If “Price Range” has notnot been set … Make first offer been set … Make first offer– Never say Never say YESYES to first offer … to avoid “ to first offer … to avoid “winners cursewinners curse””

Never give without a Never give without a GETGET! … Why! … Why– You just You just might getmight get what you ask for what you ask for– Elevates the value of the concessionElevates the value of the concession– STOPS further requests for further concessionsSTOPS further requests for further concessions– Don’t trust – “I’ll make it up to you later”Don’t trust – “I’ll make it up to you later”

Tactfully Tactfully testtest their their estimatesestimates, , statisticsstatistics, averages and facts! , averages and facts! … Encourage use of … Encourage use of objective criteriaobjective criteria

Competitive Negotiations - GuidelinesCompetitive Negotiations - Guidelines Shut up!! … Info is Shut up!! … Info is PowerPower, less they know about the better!, less they know about the better!

Discover other persons “Discover other persons “degree of authoritydegree of authority” ASAP” ASAP

If identify manipulative tactic – If identify manipulative tactic – NameName it! … “You wouldn’t useit! … “You wouldn’t use

Making Making concessionsconcessions – Best Practices … – Best Practices … – Conserve your concessions - Make them Conserve your concessions - Make them SLOWLYSLOWLY – Make them with regret or Make them with regret or painpain– Ensure counterpart fully Ensure counterpart fully appreciates valueappreciates value of concession of concession– Make Make smallsmall concessions concessions– Don’tDon’t make firstmake first concession concession– Do make lastDo make last concession concession– BewareBeware late in process late in process

Competitive Negotiations - GuidelinesCompetitive Negotiations - Guidelines Don’t be fooled by “Don’t be fooled by “FunnyFunny money” money”

YIKESYIKES! … When other party requests a concession or favour ! … When other party requests a concession or favour - use the - use the WinceWince or in extreme cases, the full-body or in extreme cases, the full-body FlinchFlinch!!

Don’t overreact to threats and deadlines - … demonstrate Don’t overreact to threats and deadlines - … demonstrate ““assertive pacifismassertive pacifism”… Ask questions and ”… Ask questions and ListenListen! !

Take good Take good NotesNotes! Power goes to the person with the best ! Power goes to the person with the best documentation! … Low Trust – High Notes!documentation! … Low Trust – High Notes!

Learn to walk away and then walk back gracefully without Learn to walk away and then walk back gracefully without losing facelosing face

Leverage Leverage Time PowerTime Power … … – Try to identify counter-parts true time line or real deadlinesTry to identify counter-parts true time line or real deadlines– Try not to disclose your own time lineTry not to disclose your own time line

Competitive Negotiations - GuidelinesCompetitive Negotiations - Guidelines

Remember - “Remember - “Silence is GoldenSilence is Golden” … Sais more than talking” … Sais more than talking

Low trust - Low trust - Get it in writingGet it in writing or …“Do I have your word on that?” or …“Do I have your word on that?”

When using “higher authority” tactic be as vague as possible … When using “higher authority” tactic be as vague as possible … Committee or board, try not to provide nameCommittee or board, try not to provide name

Never say no without wooingNever say no without wooing … “we would love to do … “we would love to do business with you, however …”business with you, however …”

When confronted with unacceptable offer …”When confronted with unacceptable offer …”I’m having a hard I’m having a hard time seeing how this deal works for metime seeing how this deal works for me … … If you were in If you were in my position, how would you justify this deal?”my position, how would you justify this deal?”