Negotiation Skills

The World is a big blue bargaining table

 We are all going to die. Aside from that , it’s negotiable
 Scarcity is the mother of better b
 We are citizens of a wired , global state ;
 Ockham Razor : The simplest answer that explains the fact is the best
answer to a question.
 Negotiations fail because of conflicting values , perceptions and beliefs
, insufficient resources , fear , timidity and clashing personalities.
 Wrong Approaches: Academic , folklore , Body language , strategies ,
fait accompany , intimidation , pestering.
Need to Negotiate
 For Japanese , the only difference between a yes and a
no is the size of “if”.
 There used to be competent negotiating throughout
Asia , not western world.
Concessions V. Reasons
 Persuasion is the process of getting someone to do something by convincing
him that it’s the logical and reasonable thing to do.
 Risk , other side may have an objection to be your argument.
 Mistake: Understanding must beget agreement . As a Chinese proverb says: “
insanity is doing the same thing over and over and expecting a different result.”
 Examples of Negotiation mistake: Clinton’s mistake on peace process ; Kashmir
; North Korea.
 Negotiating is the process of getting someone to do something , even if they
disagree with it , by giving them enough concessions.
 Always persuade first . Negotiate only when persuasion fails.


How win-win is reached?
 Lizard brain nation;
 Wherever we “lase face” (humiliated , insulted , embarrassed , etc. )
 Global thermonuclear war ;
 Versaille Treaty v. End of second world war v. cuba missle crises .
 Win- win negotiating is mandatory because the other side survives the
talks.
 Charge of market from a buyer market to a seller market (long term
strategy v.
 Trading Concessions: state high , then drop back.
The 21 Rules of successful
Negotiating
Part 1 : The Critical Rules
Rule1: No free gifts. Seek a Trade – off for
Each Concession you make
 Trading is what negotiating is all about.
 Quid pro que
 Spell out exactly what you want
 Give-get equation.
 Wait for it , never waste a concession.
 You owe me one doesn’t count
 Don’t say no ; yes , if should be used
 Every request is an opportunity
 Try to get an “if” that’s equal to or greater than the value of the concessions you make.
 Logic isn’t necessary.
 I’ll try should be followed
 Once a concession is proposed , expectations begin to shift.
 Expand the deal “what else?” is an important device.
 Non anonetary concession are easier to obtain (like training , Referral , Warranty , service
, etc.)
Rule 2 – start High
 Reagan’s act in 3rd year;
 If you want better negotiating results , start hi
 It is wrong to start fair and then sell hard.
 Opening offer should be assertive but never ridiculous.
 The moment of the opening offer is the must important and most stressful , in
the entire negotiation.
 Your opening offer freezes your negotiating upside ;
 With buyer’s attention focused on price , major concessions can be had on less
sensitive things like quantity , length of contract , warranties , payment terms ,
shipping , schedules , monthly minimums , etc.
 The extremely tight or sale source marketplace.
 Long- term relationships
Rule 3 – Follow a dramatic initial concession with sharply
diminishing concessions
 Envelope of Negotiation : Opening – Target – Bottom
line
 Bargaining from a position of strength means what is
being discussed is the size of the envelope.
 As long as your counterpart thinks you have more
concessions is your bag , shall kept beating on you .
Make them think like that.
 The Rule of Halves;
 Below Your Target
Rule 4 – Krunch Early and Often

 Use Krunch instead of counter-offer

 “Do Better-Give me more”
 It is simple;
 Get the other side to open, krunch their opening and
keep crunching until in no longer produce effects;
 Good if You are ignorant;
 It’s the only way to respond to an unreasonable offer;
 Every concession has a price, but crunches cost
nothing.
Rule 5 – Never Settle Issues Individually

 Until the final handshake, keep all issues open;

 Never stick with an issue that’s not working;
Rule 6 – Conclude with a Nibble
 A small concession obtained at the very end;
 “The Stupid Period”
 Don’t give up easily, but …
 “Oh, there’s just one more thing,sir”
Rule 7 – Keep Looking for Creative Concessions to Trade
 Hot Buttons;
 Referrals can be big Hot Buttons;

 “The Stupid Period”

 Don’t give up easily, but …
 “Oh, there’s just one more thing,sir”
 The 21 Rules of successful
Negotiating
 Part 2 : The Important but Obvious Rules
Rule 8 – Do Your Homework
 The side with the most information has the upper
hand;
 Chechlist:
 Subject Matter;
 Your Organisation;
 Your Counterpart Organisation;
 Your Counterpart,individually;
 Your Envelopes;
 Authority Issue;
 Team Preparation;
 Nibbles;
 Creative Concessions;
Rule 9 – Keep the Climate Positive
 Separate people from problem;
 Comfortable players make more concessions;
 Humour;
 Threats: Don’t reply;
 Outbursts: Don’t Reply, usually shows a weak position;
 Walkout: the goal is to get a concession but it is
unprofessional;
 Impasses and deadlocks: always end on a positive note;
 Seating: Round table is preferable;
 Meeting time:Start early, resist rush and late meetings;
 Avoid telephone and written negotiation;
Rule 10 – Almost Everything is Negotiable
 The wise negotiator frequently chooses not to negotiate;
 “It’s my bottom line” is the biggest lie in negotiation;
 Only when they do not move, they are at their bottom line;
 Never say you are at your bottom line unless you are;
 In answer to the question “is this your bottom line?” take
two steps: in first step say it is a good answer and in the
second step propose “repackaging”.
Rule 11 – Never accept the other side’s first offer
 You will almost certainly have left
concessions on the table;
 Nobody likes having their first offer
accepted;
 They’ll vow not to let this happen again;
 Krunch even at the best first offer;
 Negotiation provides a sense of confidence,
accomplishments and satisfaction.
The 21 Rules of successful
Negotiating
 Part 3 : The Nice to Do Rules
Rule 12 – Start Slowly
 Personalize;
 It helps to positive climate and your
homework;
 The best small talk is about the other side;
 Breaking the bread together;
 Learn the name of everyone;
Rule 13 – Set a Complete Agenda
 It’s better to bring things up now, when you
have some leverage, than later when you
don’t;
 Following small talk, prepare Agenda;
 Agenda should never cover offers;
 Try small issues at the top and bigger ones at
the bottom;
Rule 14 – Discuss the Small Things First
 Investment equals flexibility
 It’s two way;
 Rule 5: settle as package;
Rule 15 – Be Patient
 Patient reveals the soft points in the other
side
 Process is like grieving;
 The quicker the deal, the greater the risk;
 Sleep on the issues;
 Call a break;
Rule 16 – Use/Beware power of legitimacy
 It’s an up there golden rule;
 The more official it looks, the less subject to
being negotiated;
 Presentation Legitimacy;
 Verbal Legitimacy (Let’s split the
difference);
 It’s good for small gaps;
Rule 17 – Limited Authority
 It’s an up there golden rule;
 The more authority you have, the more concessions you
make;
 Be more careful when you are negotiating for yourself;
 Try to offer a viable alternative;
 Always negotiate with the highest authority;
 Determine who the real negotiator is;
 Keep your bosses out of it;
 As a boss, don’t close the deal;
 Making an end run;
Rule 18 – Consider using Good Guy-Bad Guy
 It’s an up there golden rule;
 The Bad guy is usually a a higher-up;
 Usually after a fight, the bad guy leaves;
 The good guy proposes a compromise;
 Some organisations prefer unity;
 Counter-measures
Rule 19 – Try to have the other side make the first offer
 Consider expectations;
 It’s best if they open;
 You can adjust;
Rule 20 – Keep your team small and under control
Rule 21 – Try to Have the Other Side Travel to You