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Welcome!
 NEGOTIATION

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 PURPOSE

 To impart to the participants the principles and

techniques on negotiation.
 To equip the participants with necessary negotiation
skills in engaging the stakeholders.

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 SEQUENCE OF PRESENTATION
 BACKGROUND
 NEGOTIATION
 MODELS
 PHASES
 WHAT TO DO IN A DEADLOCK
HOW TO DEAL WITH DIRTY TACTICS AND STRATEGIES
AGREEMENT

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 BACKGROUND
 Clash of interests usually leads to conflicts.
 There is also conflict when one is not given his/her due, or is being
treated unjustly.
 Negotiation is just one of the many options in resolving conflicts.

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 DEFINITION OF NEGOTIATION
 A process of resolving conflict between two or more parties
whereby both or all modify their demands to achieve a mutually
acceptable compromise.
 The process by which we pursue the terms for getting what we
want from people who want something from us.

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 ALTERNATIVES TO NEGOTIATION

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 ELEMENTS OF NEGOTIATION
 Substance
- interests and principles being advocated.

 Relationship
- the dynamics between parties involved.

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 MODELS ON NEGOTIATION
 Traditional Negotiation
Integrative-Interest-based, Cooperative
Distributive- Positional, Competitive

 Principled Negotiation

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 MODELS ON NEGOTIATION
 Traditional Negotiation
– also known as “Positional Bargaining”;
(SOFT or HARD Bargaining)
 Each side takes a position and argues for it.
 Confrontational.
 Believes negotiation is a must.
 Forced choice between substance and relationship. Sacrifices either of the
two.
 “Win-lose” or “lose-lose” approach.

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 MODELS ON NEGOTIATION
Comparative Traditional Strategies

Soft Hard

 Always talk  Don’t talk

 Friends  Enemies
 Avoids conflict by making concessions  Contest of wills; holds out
 Be accommodating longer
 Proceeds by conceding generously  Be extreme
 Tells what s/he will do  Proceeds by conceding
 Gives offer stubbornly
 Ends up exploited; feeling bitter  Tells what s/he cannot do
 Makes threats
 Wins contest, loses relationship

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 MODELS ON NEGOTIATION
 Principled Negotiation
– also known as WIN-WIN negotiation
“Adversary” is a partner in problem-solving.
Finds out the other side’s perspective.
Seeks to uphold both substance and relationship. Hard on the merits of
substance, soft on people.
Has basic optimism and openness to other options

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 MODELS ON NEGOTIATION
 Principled Negotiation
Seeks to obtain what he/she is entitled to; fair but protective from being
exploited.

Seeks to rise above the deadlock in position; finds out common interests.

Accepts the other party as person/s.

Prefers decisions arrived at willingly and consensually, not coercively.

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 PHASES OF NEGOTIATION

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 PHASES OF NEGOTIATION
 Preparation (7 considerations)

Define Wants
- Desired outcomes

Mutual Objectives
- Differences in Criteria
- Common Interests

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 PHASES OF NEGOTIATION
 Preparation

Context
- Operative concepts
- Historical and present conditions
- Factors which influence negotiator’s
behavior
- Sources and levels of power of parties
- Leverage points (stakes to a party)

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 PHASES OF NEGOTIATION
 Preparation
Issues
- Negotiables and non-negotiables
- Define/clarify standpoints

Evaluation and Prioritization of Wants

- High-Medium-Low Priorities
- Cost-benefits
- Inventory of strengths & resources
- Identify risk zones

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 PHASES OF NEGOTIATION
 Preparation
Entry and Exit Points
- Range and limits
- Rationale (Credible)
- Forms
- Best Alternative to Negotiated Agreement
(BATNA)

Groundworking (Pre-negotiation “nego”)

- Provoke a nego/dramatic actions
- Establish links
- Grapevine
- Initial info/input

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 PHASES OF NEGOTIATION
 Preparation
TTPs on preparation:
 Negotiating is a game, to do it well you have to have fun.

 Knowledge is power; do more research for more important negotiations. Hire

experts if necessary.

 Be willing to take risks. To the extent you can handle the tension, broaden the
risk zone.

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 PHASES OF NEGOTIATION
 Debate
 Use debate to gauge the other negotiator’s view

 Encourage disclosure of opinions and entry position;

 Discover their inhibitions, interests and intentions;

 Test your assumptions;

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 PHASES OF NEGOTIATION
 Debate
 Test their candor and basic honesty;

 Confirm whether or not mutual benefits of negotiating a settlement is

desirable or possible;

 Avoid disruptive diversions and destructive arguments.

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 PHASES OF NEGOTIATION
 Propose
A Proposal is:
something that is offered for consideration or
acceptance;
tentative term/s for trading;
vague conditional offer.

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 PHASES OF NEGOTIATION
 Propose
Two Elements of a Proposal:

1. The Condition

2. The Offer

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 PHASES OF NEGOTIATION
 Propose
Forms of Proposal:
 Conditional proposals

 Condition only (vague/specific)

 Offer only (vague)

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 PHASES OF NEGOTIATION
TTPs on proposal:
Always lead with conditions.
Conditions may signal value to what is being offered.
Focus on your own interests.
Avoid the no-choice choice.
Use time pressure.

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 PHASES OF NEGOTIATION
TTPs:
Observe good timing.
Give in rationally.
Agree on easier terms first.
Avoid subordinates.
Sometimes, let blind chance decide.
Record what has been agreed.

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 PHASES OF NEGOTIATION
 Bargain

 Exchange or trade-off
 Specific conditional offer
 Specific solution to a disputed issue
 It seeks agreement

Common format: “If you … then I”

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 THE BARGAINING PROCESS

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 DEADLOCKS IN BARGAINING

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 WHAT TO DO IN A DEADLOCK?
 Think positive: don’t be put off by the word “no”.

 Skip over difficult points and come back to them later.

 Get back to common ground and start building up again.

 Reduce complexity.

 Brainstorm with your opponent to generate options.

 Use creative problem-solving.

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 WHAT TO DO IN A DEADLOCK?
 Build agreements by increments.

 Call for a time out.

 Divide and conquer.

 Don’t make idle threats.

 Try an artful freakout.

 Seek third party decision.

 Ask for sympathy from opponent.

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 WHAT TO DO IN A DEADLOCK?
 Lower your opponents levels of expectations by a judicious choice of words
and gestures.

 Give small, make it seem big; glamourize your goods.

 Stress objective criteria.

 Plant new concepts early.

 Give your opponent easy decisions to make.

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 DIRTY TACTICS & STRATEGIES
IN BARGAINING

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 HOW TO DEAL WITH DIRTY TACTICS &
STRATEGIES
 If you can’t verify, don’t believe.

 Expose their tricks; name the game.

 Beware of an environment set up to intimidate you.

 Beware of the limited agenda ploy.

 Avoid unwarranted delays.

 Suspect glaring greed/extreme demands.

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 HOW TO DEAL WITH DIRTY TACTICS & STRATEGIES
 Refuse renegotiation.

 Beware of the classic gambit. (Good cop, bad cop)

 If you detect bad-faith bargaining, walk away or resort

to your BATNA.

 Beware of take it or leave it ultimatum.

 Don’t tolerate abuse.

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 OUTCOME OF
NEGOTIATION

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 AGREEMENT
 Mutually acceptable outcome

 Compromise

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 AGREEMENT
Forging an Honorable Agreement
 Keep implementation in mind.

 Design the deal to minimize your risks.

 Build in a dispute resolution procedure.

 Reaffirm the relationship.

 Celebrate with the other party.

 Develop good working relationship.

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 AGREEMENT
Closing Techniques
 Decide when or where to stop trading

 Proper timing

 Credibility

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 CONCLUDING WORDS
“We negotiate all the time.
It’s unavoidable. Most things are negotiable and when you don’t have the
tools and skills to negotiate, you cannot maximize your opportunities.”

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 END OF PRESENTATION

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