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Communicating in Negotiations . . .

A Working Definition . . . Negotiation: A process where two or more people work to reach agreement on a way forward.

To Start . . . All negotiations take place in a context Physical Environment Psycho / Emotional Temporal

If you know the enemy and know yourself you need not fear the results of a hundred battles. Sun Tzu

You MUST prepare in order to get a Successful negotiation outcome.


Anything else is just lucky.
Prior Preparation Prevents Poor Performance !

By Way of Preparation . . .
You have six friends that serve you true, their names are

What ?
Why ? How ? When ? Where? Who? and

Rudyard Kipling

Forewarned is Forearmed . . .

Now the reason the enlightened prince and the wise general conquer the enemy whenever they move and their achievements surpass those of ordinary men is foreknowledge.
Sun Tzu The Art of War Some 2000 years ago !

The Six Friends and Preparation


Who are you dealing with? What do they want? Why do they want it? How badly do they want it? When do they want it by? Who else is involved? What is their interest?

What do you want?

Phases in Negotiation
Clarify wants
Put forward proposals

(Rose 1987)

Bargain
Gain agreement

Follow-up

Elements in any Negotiation ( After Dwyer, 2002)

The issues themselves


The relationships to be preserved Moving through different phases

Maintaining the relationship


Making decisions Managing differing perceptions of the situation

Parties to the negotiation situation

More powerful and less powerful parties Power of each of the parties not always known to the other

Discover their power

Sources of Power in any context, including Negotiation


(French and Raven Power Typology)

Legitimate Power

By Authority / Legal

Expert Power
Reward Power Co-ercive Power Referent Power

By knowledge / expertise
By rewarding By force / punishment By status, charisma

Approaches to the Negotiation I win, they lose I lose, They win We both win We both lose Win - Lose Lose - Win Win - Win Lose - Lose

Another Perspective
Compete Collaborate Must Win or Lose Try to both win

Compromise
Capitulate Clear Out

Win some, lose some


Give in Leave, refuse to engage

Collaborative and Co - Problemsolving


Research / Prepare Hear what the other party wants to achieve State what you want Couch it in terms of whats in it for them, whats in it for you Indicate what appears to be common ground Sum up progress Identify what remains to be agreed

Balancing the Goal with Maintaining the Relationship

Source: Communication in Business, 2e, Judith Dwyer, Pearson, 2002

The WATNA and BATNA of Your Negotiation


What is the Worst Alternative To a Negotiated Agreement? Clarify this for yourself

What is the Best Alternative To a Negotiated Agreement Clarify this for yourself as well

Your outcome will be somewhere between these two points Can you live with that?

Good Negotiator Style


Plans and Prepares

Can Work under pressure


Adopts a commonsense approach Communicates effectively verbal, non-verbal, listens actively Knows their area Assertive but not aggressive Has integrity, builds trust Identifies interests of all Sets objectives that are SMART Follows through - DWYPYWD
(Adapted from DWYER, 2002)

CONFLICT AND NEGOTIATION


Conflict can arise in modern organisations, due to: 1. Resource scarcity 2. Differentiation

3. Parochial perspectives
4. Misunderstandings. Four common approaches to conflict in organisations are: 1. Smoothing 2. Dominance 3. Compromise 4. Integrative Problem Solving

Five Negotiation Styles

Assertive
Partys desire to satisfy OWN concern

Competitive Domination

Collaborative Integration

Sharing

Compromise

Unassertive

ClearOut Neglect

Capitulate Appeasement

Uncooperative

Cooperative

Partys desire to satisfy OTHERS concern

Using the Competitive Style When quick decisive action is vital (eg: in emergencies) On important issues where unpopular actions need implementing (eg; cost-cutting, enforcing unpopular rules, discipline). On issues vital to company welfare when you know youre right. Against people who take advantage of noncompetitive behaviour.

Using the Clear-Out Approach When an issue is trivial, or when more important issues are pressing. When you perceive no chance of satisfying your concerns. When potential disruption outweighs the benefits of resolution. To let people cool down and regain perspective. When gathering information supersedes the need to make an immediate decision. When others can resolve the conflict more effectively. When issues seem tangential or symptomatic of other issues.

Using the Capitulative Approach


When you find you are wrong to allow a better position to be heard, to learn and to show your reasonableness. When issues are more important to others than to yourself to satisfy others and maintain cooperation.

To build social credits for later issues (Steven Coveys emotional bank account).
To minimise loss when you are outmatched and losing.

When harmony and stability are especially important.


To allow subordinates to develop by learning from mistakes.

Using the Compromising Style


When goals are important, but not worth the effort or potential disruption of more assertive modes When opponents with equal power are committed to mutually exclusive goals

To achieve temporary settlements to complex issues


To arrive at an expedient solution under time pressure

As a backup when collaboration or competition is unsuccessful

Using the Collaborative Style


To find an integrative solution when both sets of concerns are too important to be compromised

When your objective is to learn (the learning organisation)


To merge insights from people with different perspectives To gain commitment by incorporating concerns into a consensus (= a decision you can live with) To work through feelings which have interfered with a relationship

Problem-Solving / Collaborative Style VS Bargaining Style

Bargaining (after Mukhi, 1990)


Parties state their positions
Sometimes misrepresent situations Sometimes exaggerate strength of concerns Sometimes withhold information Sometimes make threats

In bargaining, the issue is often seen as a matter of winning and losing

Problem-Solving / Collaborative Style VS Bargaining Style

Collaborative Approach Involves Three Steps: 1. Identifying essential / underlying concerns of each party

2. Searching for alternatives & identifying consequences


3. Identifying the most satisfying alternative for all Effective problem solving depends upon candid exchange of accurate information - Does not always occur in negotiation processes Effective negotiations can be approached from bargaining or collaborative perspectives

Frameworks for Thinking on Your Feet


Primary Objective: Win some time, even a few seconds to gather thoughts. Try the Following

Re-phrase the proposition or question Summarise the situation thus far Reflect positively on progress so far Seek Clarification they will re-phrase Ask a question what, why, when, where etc Switch from content to process

Ask for time with your colleague / time out Describe the importance of the outcome, its impact, need to feel right Move to a flipchart / whiteboard Draw diagram / record points Any combination of the above

Psychological Barriers to Negotiations


Fear Of lack of faith in your abilities Of what the other party will do to you

Of being ripped off


Of being beaten and losing Of being seen as pushy

Of upsetting the other party / losing the relationship

Psychological Barriers to Negotiations


Overcoming the Fears
Preparation You have a right to be assertive You can lose if you set up a competing negotiation Develop a thicker skin Sometimes you cant win. It happens to all of us You will make mistakes. Welcome to your learning experience! Have Learning Experiences that dont kill or bankrupt you Do realistic risk assessments What is your WATNA and BATNA?

Express confidence and a positive outlook

Closing the Deal


After problem-solving and identifying the best alternative

Put the Proposition


Shut UP Listen for agreement Paraphrase the agreement Record the agreement if necessary

Express confidence / satisfaction with the outcome


Signal the next step that parties have agreed to Set a date / future event -----------------------------------------------------------------------------------------Follow through to maintain trust. Absolutely Essential.

Final Hints - Negotiation


Most of this is common sense but thats not common!

Dont rush. Eeeeasyyy does it


Stay away from desperate men and women. Desperadoes are dangerous to themselves and to others. Learn to walk away from deals or propositions that sound too good to be true.

They almost always are.


There is no instance of a nation benefitting from prolonged warfare Sun Tzu

References
Cleary, Thomas, (Translator), The Art of War- Sun Tzu, Shambala Publications Inc, 1988 Dwyer, Judith, Communication in Business, 2e, Pearson, 2002 French and Raven, quoted in Organisational Behaviour A Global Perspective 3e, Wood, Chapman, et al John Wiley, 2004 Mukhi - quoted in Dwyer (2002), ibid. Rose - quoted in Dwyer (2002) ibid.