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A negotiation is a form of meeting between two parties. The objective is to reach an agreement for mutual satisfaction of their respective needs. Both parties move towards an outcome, which is good in their joint interest. It is a Win-Win situation that we have to ultimately reach and not a WinLose situation.
Negotiation is a field of knowledge and endeavour that focuses on gaining the favour of people from whom we want things - Herb Kohen.
Negotiating Process
Style
Outcome Principles
Style
Style is a continuum between two styles:
Quick Deliberate Middle is compromise
Quick Style
Negotiate in a hurry Use when you wont negotiate with these people again Get the best deal without regard to the other sides win
Deliberate Style
Use when long term relationship likely Involves cooperation and relationship building to reach agreement Needs much prep, hard work May move in fits and starts
Outcomes
Realistic
Both sides satisfied, win/win situation Usually results from deliberate style
Acceptable
Likely to result from quick style Something is better than nothing Always ask for a better deal
Worst
When youre too stubborn to be flexible Usually from quick style
Outcomes
Predetermine the outcomes before you start negotiations, you have a better chance of getting a better result Think carefully, think creatively, and think ahead
Principles
There are no rules
Establish an agenda
Social Skills
Enjoy people Interest in others
Recognition
Accomplishment Pat on the back
Teamwork
Better as a team Self-control
Integrity
No trickery Trustworthiness
Creativity
Always looking for ways to complete the deal
Negotiation Model
Investigate Presentation Bargaining Agreement
Investigate
What do you want? What does the other side need? Decide on style What are the consequences of each choice.
Presentation
Prepare other sides case Present the reasons for your side better Planning sheet
Issues involved Realistic, possible, worst
The Presentation
Creative title Reduce to must know items Keywords Mini-speeches around keywords Visuals Dont give concessions just to keep things going Make note of concerns and keep going
Bargaining
When in doubt, ask questions! Open questions Reflective questions Tactics
Tactics
Use
Walk out You go first Bad environment Defer to higher authority Not willing to make any changes Silence Good guy/bad buy
Dont use
Emotional outburst Argue special case Pretend ignorance Play for time Nibble and retreat
Agreement
Arrangements should be neutral and comfortable Pay attention to what others say Screen out all visual distractions Ask open ended questions Listen to responses Proactive vs. reactive behavior
pattern of behaviour
Enter in an upright stance; expression should be open and friendly; shoulders have to be relaxed; and right hand unencumbered. You must be neat, tidy and well dressed. Handshake or Namaste and first eye-contact should convey credibility and confidence. Movement and speech must set a brisk pace but not flustered. Discuss neutral topics before commencing discussion on business. Take 5% of the prospective time to break ice. Stand during the opening moments in small mixed groups if teams are negotiating.
Pick up your opportunities based upon your needs. Choose your attitude toward any set of given circumstances to affect the outcome. Believe in your power viz; ability to get things done. Dont allow yourself to be manipulated by others who are not interested in you. Use communication skills effectively. Acquire required information and data in advance. Manoeuvre time constraint and manage Dead Line to your advantage. Take some calculated risks breaking precedents if necessary. Move off the major items in the discussion and deal with a secondary element (what if?), whenever desirable.
Dumb is sometimes better than smart, Weakness also can be strength Train yourself to say, I dont know, I dont understand or help me. Watch your listen talk ratio. Learn to ask questions. Make your ultimatum prevail by using it appropriately. Emphasize the element of agreement from the outset Nurture the spirit throughout the process of negotiation. Be clear about the four Ps PURPOSE, PLAN, PACE and PERSONALITIES, Why we are here? What we are going to do?, How long?, Who we are?. Assent and Assert to suit the requirements. Avert confrontation, Avoid impasse, and prevents stalemate. Fighting is not skillful negotiating. Identify yourself with the other party empathy. Try to achieve a winwin situation.