Advanced Negotiation Techniques

Dealing with
Negotiation Fears
Breakout Session #104
Tom Reid
Chief Problem Solver
Certified Contracting Solutions, LLC
Louisville, CO
www.certifiedKsolutions.com
April 15, 2008
10:45 to 11:45 AM
2

What Are You Afraid of?

Innate Fears
Loud noises
Falling
Abandonment

Fear of Negotiating
Key skill for contract managers
One of the major impediments to
effective negotiation is fear

Primary Fears in Business

Fear of looking foolish
Fear of the unknown
Fear from past bad experience

Fear of Looking Foolish

We all want to be a good person
Leaders
Parents
Competent business people

What is the Perfect Deal?

Depends on the circumstance

Depends on your perspective
Depends on your goals
Can a good deal go bad?

Reject my Deal Reject Me

We personalize our effort
You are tainted by bad results
Even if you did not cause them
Even if you could not have avoided them
You feel you cant save face
Your reputation as a negotiator is bad

YOU ARE A FAILURE!!!!

10

REALLY????

11

What is Success?

We all want to bat 1.000

In business, often anything over 50% is
pretty good
Success is amorphous
You cant know what might have been
Position yourself to:
Capitalize on positive risk
Minimize negative risk

12

Mistakes
Part of being human
If not making any probably not doing
anything
Accept your mistakes; you cant change
history
Learn from them
You dont fail until you stop trying
13

Fear of the Unknown

You cant know everything
There is more you dont know than you
do know
Seek training in negotiation skills
Have substantive knowledge of the
situation

14

Understand the Process

Does the first person who speaks
always lose?
Is good cop/bad cop a legitimate
technique?
When is it appropriate to slam your fist
on the desk and walk out?

15

Understand the Subject Matter

Do you know what you are buying?
Have you gone out and kicked the
tires?
Do you know your companys strategic
plan?
Do you know whether cost, schedule, or
technical excellence is the key driver for
your company?
16

Understand the Relationship

What do you know about the other
party?
Would you want to have a beer with
them?
What motivates them?
Why are they doing business with you?

17

Fear of Change
One of the greatest learned fears
Every day is a new adventure
The only constant in life is change

Deal with it!

18

What Did You Know And

When Did You Know It?

Known knowns
Known unknowns
Unknown unknowns

19

Fear from Experience

Experience is an excellent teacher

Tried it once and failed, so Ill never
do THAT again!
Experience allows us to rationalize
Can you explain WHY it was a bad
experience and learn from it?
20

So What to do?

Prepare
Study and practice
Understand power
Understand fear

21

Prepare

Understand the subject matter

Know your companys objectives
Prepare your BATNA, then improve it
Be rested and nourished
Have a negotiation plan/agenda

THINK!!
22

Study and Practice

Ever fly with a pilot who had NOT been
through the simulator?
All skill development takes study and
practice
What was the last book on negotiation that
you read?
Do you do mock negotiations, murder
boards, or lessons learned for your
negotiations?
23

Understand Power
Power is like money neither good or
bad
Power exists whether you recognize it
or use it
Often it is more perception than reality
Preparation exhibits power

24

Understand Fear
Negotiations are not usually fight or
flight situations
Most fear is self generated
Called WORRY
Treat fear signals as opportunities for
positive change

Developing relationships reduces fear

25

What Does Zig Say?

F.E.A.R = False Evidence Appearing
Real
Fear motivates
Harmful fears versus helpful fears
know the difference
Fear can be your friend

26

Conclusion
Success requires responsibility
Dont fear negotiations
Prepare
Understand
Study
Build relationships

Position yourself to pass it on

27

The first responsibility of a leader is to

define reality. The last is to say thank
you.
MaxDePree
Author&Business
Executive

28