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Introduction to Negotiation
Introduction to Negotiation
How would you define negotiation? What other words do you associate with negotiation? Terminology used in negotiations
Individual Exercise
What scenario do you want to focus on?
Who is involved?
Individual Exercise
Describe the current situation?
Individual Exercise
Issues Realistic Outcomes Acceptable Worst possible
Interpersonal Skills
Interpersonal Skills
Interpersonal skills require that we are aware of our behaviour and of our counterparts in the negotiations.
The four basic styles of behaviour gives an indication of how people react and respond to situations
Interpersonal Skills
No one style is superior to the other style, and no one person can be all four styles.
To improve your negotiation, know who and how to deal with the various people, and who you are.
Interpersonal Styles
Driver (Action) Analytical (Process)
Expressive (Idea)
Amiable (People)
Interpersonal Skills
Avoider: dislikes conflict Compromiser: fair-minded people interested in maintaining relationships Accommodator: resolve interpersonal conflicts by resolving the other persons problem Competitor: winning is the main thing Problem-Solver: seeks to find the underlying problem, use brainstorming to solve
Interpersonal Skills
You are one of ten people at a conference table, each person sitting across from one another Someone comes in the room and says I will give R1,000 to the first person who can persuade the person sitting across from them to come and stand behind his/her chair.
Interpersonal Skills
Results Avoider: says I dont want to play, look foolish Compromiser: both offering R500, starts running to other side Accommodator: runs to other side, negotiates later Competitor: sits tight, demands other person move Problem-Solver: lets both get behind each others chairs, we can each make R1,000.
Group Activity
You have 10 minutes within your small group of three to brainstorm a list of the 10 key skills that successful negotiators need. List your key skills and note the reason why each of your ten skills is crucial to you as a negotiator.
Group Activity
Key Skills
1 2 3 4 5
Reasons
1 2 3 4 5
Negotiators Ratings
Planning skills
Integrity
Verbal clarity
Negotiators Ratings
Ability to gain respect
Ability to exploit power
Open mind
Tact
Negotiators Ratings
Professional standards
Product Knowledge
Self Confidence
Persistence
Insight
Individual Exercise
List all your personal strengths as a negotiator? List your personal areas for development? How good a negotiator are you? (p21)
Results
20 - 40 - You are not a successful negotiator 40 - 60 - You have some ability in negotiation 60 - 80 - You are a good negotiator 80 - 100 - You are an excellent negotiator
Body Language
Body Language
Body Language
Body Language
Body Language
Steps of Negotiation
Planning
Negotiators with high aspirations consistently outperform those with low aspirations. By adopting a high aspiration base, negotiators create sufficient room to make and request the necessary concessions. High aspirations generate positive psychological energy and prevent a negotiator from being rigid and defensive.
Planning
A high aspiration communicates confidence to the other party and generally prevents irrational negotiation behaviour. High aspirations require the other negotiating party to expend more energy in trying to lower these aspirations, thus not focusing on promoting its own aspiration.
Planning
Planning
Planning
Planning
Low vs High
Specific Measurable
Achievable Challenging Compatible
Opening Position
Opening Position
Outline Your Opening Position
Opening Position
This Position is Realistic
Perception of Power
Bargaining
Bargaining
Define your range Start Target
Questioning Techniques
An OPEN question is one that encourages a full response
A CLOSED question is one that can be answered with a short answer
Questioning Techniques
Practical Session
Ethical Negotiation
INDIVIDUAL EXERCISE - A question of ETHICS Decide whether or not the approach would be appropriate p42 - (the deal is important to you)
Influencing Techniques
Pg 45
Tactics
Competitive Tactics Avoidance Tactics Compromising Tactics Collaborative Tactics Accommodating Tactics
Tactics
Negotiation Gambit
Good Cop/Bad Cop Cherry Picking Walking Away Split the Difference Flinch
Description
How to Overcome it
Closing Techniques
Concession close Summary close Adjournment close Or Else close Either or close