EFFECTIVE NEGOTIATION

 Introduction
 What is Negotiation ?
 Why Negotiate ?
 The Approaches to Negotiation
 The Stages of Negotiation
 The Sources of Power
 Transactional Analysis
 Resolving Conflict
 Tips for Negotiation
 INTRODUCTION
– Ground Rules -

 Mobiles Off/Silent Mode

 If important call, please move out of room
 No smoking, tea/coffee in room
 Questions anytime
 Avoid side conversations
 Share experiences
 Question & Challenge
 WHAT IS NEGOTIATION
 A process through which
 parties move from initially divergent positions
 to a point where agreement may be reached
 A technique that enables us to :
 Persuade & convince others
 To accept our way of thinking/doing
 Without their feeling shortchanged
 WHY NEGOTIATE ?
 The reason you negotiate is to produce
something better than the results you can
obtain without negotiating…

 B A T N A – Best Alternative To a Negotiated

Agreement

 W A T N A – Worst Alternative To a
Negotiated Agreement
The Five Key Approaches
 NEGOTIATION

Compromise Coercion

Logical
Emotion
Reasoning

Bargaining
Five Key Approaches - Compromise
 Ready to give up something that is dear

 Feel as if lost something

 Use as last resort

 Generally perceived as sub-optimal

Five Key Approaches - Logical
 Strong role of Facts/Data – don’t
nitpick

 Analytical – flow important

 Source Credibility/Impeccability

 Generally emotions take back seat

Five Key Approaches - Bargaining
 1st & Last levels known

 Start higher than expected. Get a

return for every concession you make

 Do not indicate you will move quickly

from your position

 Generally played like a game

Five Key Approaches - Emotion
 Strong understanding of respective
emotional clues – control your emotions
– don’t let them control you

 Facts/data take back seat/selectively

used

 Variable tonality of discussion

 Generally involves play acting

Five Key Approaches - Coercion
 Strong understanding of respective
pulse points – think before you
threaten

 Use mirrored or emotional threats

rather than real ones

 Making offers that cannot be refused

 Generally happens when there is some

inequality in dependence
The Seven Phases
 The Seven Phases of Negotiation
PLANNING & OPENINGS TESTING
PREPARATION

•Setting Targets •Be Polite •Understand their

weaknesses

•Cost on concessions •Outline your position

•Probe facts and
inconsistencies
•S.W.O.T.- both sides •Never accept their
first offer •Get them on the back
• Avoid markers foot
•Variables/Outcomes

•Silence – get them

•Market Intelligence talking

•Team clear •Challenge them

 The Seven Phases of Negotiation
MOVING YOUR MAKING CONCESSIONS AGREEMENT
POSITIONS

•Positive Summary •When to do it ? •Make final offer with

TOTAL conviction

•Put on Pressure •How much to give ?

•Watch for closing
signals BEFORE you
•Emphasise that you •What do I get in move
have moved return
•Only break deadlog if
to your advantage

•Use Closing
Techniques

•Make sure everybody

knows what has been
agreed
The Seven Phases of Negotiation

• Last Phase is of Review

• What went right ?
• What went wrong ?
• What could be done differently/better ?
• What could have been avoided ?
• This becomes input into the Planning &
Preparation phase of next Negotiation
Tonalities doing the Negotiation
 WARM  HARD TO GET

 BE INTERESTED IN THEM – BE  PREPARE/PREPARE/PREPARE

POLITE  KNOW YOUR SUBJECT
 ADMIT MISTAKES  HAVE THE AUTHORITY
 BE POSITIVE
 USE SILENCE / FACIAL
 FIND COMMON GROUND
EXPRESSIONS
 RESPECT CONFIDNCE
 CONTROL MEETING
 SHOW PRIDE IN YOUR
COMPANY
 REJECT INDUCEMENTS

 LOADS OF QUESTIONS  LISTEN LIKE MAD

 OPEN  WHAT IS AND IS NOT SAID

 CLOSED  ACTIVE LISTENING
 PROBING  ENCOURAGE AND SUPPORT
 LEADING  BUILD / TEST
 HYPOTHETICAL QUESTIONS  REFLECT BACK AND SUMMARISE
 UNDERSTAND THEIR
FEELINGS & POSITION
 Looking for Non-Verbal
Messages
• Very powerful …. But hard to read
• It will corroborate what you are hearing or
not
• Look for patterns, not isolated gestures
• Your personal appearance, office, building,
team members’ appearances say a lot
• Watch for changes … when getting too close
NON-VERBAL SIGNALS - POSITIVE
 CONFIDENCE
 ERECT STANDING OR
SITTING POSITION
 PLENTY OF EYE CONTACT
 LEANING BACK….HANDS
BEHIND HEAD
 PYRAMIDING FINGERS
 DOMINANCE/AGGRESSION
 HANDS CLASPED BEIND HEAD
 LEGS EXTENDED
 HEAD WELL BACK
 ANKLES CROSSED
 COAT FULLY BUTTONED
 COOPERATION
 HEAD INCLINED TO ONE SIDE
 BODY LEANS FORWARD
 SIT NEXT TO THEM .. NOT
OPPOSITE
 PALMS OF HANDS OPENED UP
/TURNED UP
 OPEN MINDEDNESS
 LEGS UNCROSSED
 FRONT OF SEAT
 HEAD RAISED
 KNEES APART
NON-VERBAL SIGNALS - POSITIVE
 EXPECTANCY  CONTEMPLATION

› RUBS PALMS
 HEAD RAISED
TOGETHER
 CHIN STROKING
› CLICKS FINGERS
 HAND ON CHEEK
› SITS ON EDGE OF
CHAIR  PINCH BRIDGE OF NOSE

› HANDS SPREAD,  GLASSES IN MOUTH

GRIPPING TABLE
 GLASSES REMOVED AND
› KNEES APART CLEANED
 NON-VERBAL SIGNALS -
NEGATIVE
FRUSTRATION
 RUBS BACK OF NECK
 RUNS FINGERS THROUGH
HAIR
 BREAKS PENCIL
 SHORT BREATHS
 WRINGING OR CLENCHING
HANDS
 ONE INDEX FINGER POINTED
 BOREDOM
 DRUMS TABLE WITH FINGERS
 TAPS FEET
 CLICKS PEN
 DOODLES
 REST HEAD IN HANDS
 BLANK STARE
 ANXIETY/NERVOUSNESS
 CLEARS THROAT
 FIDGETS IN CHAIR
 TUGS EARLOBE
 HANDS OVER MOUTH WHEN
SPEAKING
 FINGERS TIE, CUFFS ETC..
 DEFENSIVE/NON ACCEPTANCE
 TIGHTLY FOLDED ARMS
 ANKLES LOCKED
 HEAD ON CHEST
 TWIDDLES WITH NOSE/EARS
 CLENCHES FIST
 BUTTONS COAT
NEGOTIATION STYLES
TRADITIONAL NEGOTIATION APPROACH
VERSUS
CONTEMPORARY APPROACH

THE
TRADITIONAL
APPROACH

THE
CONTEMPORARY
APPROACH

FIXED PIE
EXPANDING THE
PIE
The Sources of Power
 The Sources of Power
 8 Sources of Power “NO TRICKS”
N Need
O Options

T Time
R Relationship
I Investment
C Credibility
K Knowledge
S Skill
 N: Need
 Definition
 Who needs this solution more, you or your
client?
 Ask what they need; State what you need
 Use active listening to confirm understanding
 Remember, focus on interests, not positions

 Application
 ROI can give you need power
 O: Options
 Definition
 What are the options for each party if an
agreement is not reached?
 Consider your BATNA

 Application
 Sketch multiple solutions. Pictures can drive
a point home
 Brainstorming session with key stakeholders
 T: Time
Definition
 What is your client’s deadline?
Tight deadlines can strengthen or weaken
your time power
Application
 We lose time power because testing is done
too late in the process.
 Present short and long term solutions to give
you time power
 R: Relationship
Definition
How strong is your relationship with your prospect?
Do you have a high quantity of high quality
relationships with your customer ?
Focus on the future rather than the past
Application
In-house staff can have more relationship power than
hired consultants
Appreciate positive findings
Encashing past favours ?
 I : Investment
Definition

The more effort someone invests, the more committed

he or she will be to reaching an agreement
Application

Increase investment power by asking clients to

participate in planning, testing, and solutions
Use stakeholder design strategy meetings
Build trust within group
Get on track; stay on track.
Increase your understanding of their needs.
C: Credibility
Definition
Deals with your brand and relationships
Application
Showcase projects
Statistics can play a role in credibility.
Focus on the obvious trends that you see without
statistics
Testimonials from Industry or similar.
Prioritize findings based on ROI
K: Knowledge
Definition
“Knowledge in itself is not powerful; it is the
application of knowledge that confers power.”

Application
Have answers to all their questions
Ask questions early about time, budget and
resource/technology constraints when creating
recommendations to enhance your knowledge power
S: Skill

Definition
Who is the most skillful negotiator?
Application
Take classes
Read books
Practice, Practice, Practice
Power: Rules of Power
Rule 1: Seldom does one side have all the
power.
Rule 2: Power may be real or apparent.
Rule 3: Power exists only to the point at which it
is accepted.
Rule 4: Power relationships can change over
time.
Rule 5: In relationships, commitment determines
1. Equal-sized concessions
2. Making the final concession a big one
3. Never give it all away up front
4. Giving a small concession to test the
waters
Key points to remember:

1. The way that you make concessions can create a

pattern of expectations in the other person's mind.

2. Don't make equal size concessions because the other

side will keep on pushing.

3. Don't make your last concession a big one because it

creates hostility.

4. Never concede your entire negotiating range just

because the other person calls for your "last and final"
proposal or claims that he or she "doesn't like to
negotiate."

5. Taper the concessions to communicate that the other