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Negotiating Skills

Negotiation The Skill for living

Personal Negotiations Professional Negotiations Political Negotiations Social Negotiations Religious Negotiations

The Nature of Negotiation

The bargaining process through which buyers and sellers
resolve areas of conflict and/or arrive at agreements is called negotiation. Areas of conflict may include minor issues (e.g., who should attend future meetings) as well as major ones (e.g., cost per unit, exclusive purchase agreements).

The ultimate goal of both parties should be

to reduce or resolve the conflict.

Negotiation Process
Time Allotment As you are probably aware, negotiations can take a tremendous amount of time. Some business negotiations take years to work out. But how much time should be set aside for one negotiation session? Depends on the objective and how well prepared you are. Negotiation Objectives Power is a critical element when developing objectives. The selling/purchasing team must ask, Do we need them more than they need us? What part of our service is most valuable to them? Can they get similar products elsewhere? In the optimal situation, both parties share balanced power, although this is rare in practice.

The negotiator must answer four planning questions:

What is the minimum that I can accept?
What is the maximum I can ask for without getting laughed out of the room?

What is the maximum I can give away?

What is the least I can offer without getting laughed out of the room?

Principled Negotiation
Principled negotiation suggests that you decide issues on their merits rather than through a haggling process focused on what each side says it will and wont do. It suggests that you look for mutual gains wherever possible. Principle negotiation has four prescriptions: People: separate the people from the problem Interests: focus on interests, not positions Options: generate a variety of possibilities before deciding what to do Criteria: insist that the result be based on some objective standard

Qualities of a Good Negotiator

What do you think are the skills/ qualities of a good negotiator?

Qualities of a Good Negotiator

The skills required for successful negotiation include: 1. 2. 3. 4. 5. Assertiveness Inventing Creative Options Dealing With Emotion and Conflict Gaining Agreement and Commitment Discovering Interests and Common Ground

Qualities of a Good Negotiator (Cont.)

1. Developing Win Win Solutions 2. Questioning Skills 3. Listening Effectively (including summarizing and reflecting) 4. Understanding Body Language 5. Establishing Rapport

The Original 8-steps

1. 2. 3. 4. 5. 6. 7. 8. Prepare Argue Signal Propose Package Bargain Close Agree

Preparation- ECQ
Jewel in the crown of effective negotiation. Get the eleven crucial questions right and your performance in the negotiation dramatically improves. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. What are my interests? What are the issues? Itemize the details for negotiation. What do I want for each issue? How important is each want to me? Prioritize them. What are my entry offers? Quantify them. What are my exit offers? What might the other negotiators want? What might be their entry offers? How might they prioritize their wants? What is my strategy? Keep it simple. What happens if it is not working? Select a fall-back strategy.

Deal And Communicate Effectively: Map Your Strategy First

A key to negotiation is knowing the other side's primary needs and secondary wants - and using the latter as bargaining chips.

One way to nail down those needs? Create an "interest map" - a list of the opposing stakeholders, their interests in the outcome, and the reasons behind them.
Define terms. Before creating the map, define who the stakeholders are. They could range from a small management team to suppliers, customers, and a leadership pool that spreads across several company divisions.

Deal And Communicate Effectively: Map Your Strategy First

Chart the map. List the stakeholders horizontally across a large sheet of paper or flipchart, and group them by their relationship to each other. Below each stakeholder, list his interests in order of importance.
Be creative. When listing interests, be openminded. You may hit on a need that's not readily apparent.

Deal And Communicate Effectively: Map Your Strategy First

List hot-button issues. Certain ones are so emotionally charged, they should be avoided.
Do a reality check. When you've done your first draft, narrow the list of stakeholders by getting input from coworkers and your side's negotiating team.

Ask questions. Don't go into the negotiation thinking you have all the answers. An interest map outlines your best take on stakeholders' needs.

Getting to the Point with Interest-Based Negotiations

What interest-based negotiations do, in a nutshell, is determine what both parties' interests are and any other special interests they might represent. In other words, it isn't what they want, but why they want it that's more important.
Do your homework Practice what you preach Don't rush to judgment No pigeonholing Be flexible.

Negotiators Psychological Need Hierarchy

Self-Realization Needs

Reaching Your Potential Independence Creativity Self-Expression

Esteem Needs

Responsibility Self-Respect Recognition Sense of Accomplishment

Social Needs

Companionship Acceptance Love and Affection Group Membership

Safety Needs

Security for Self and Possessions Avoidance of Risks Avoidance of Harm Avoidance of Pain

Physical Needs

Food Clothing Shelter Comfort Self-Preservation