Negotiating
A Practical Approach
Alternatives
• Let us never negotiate
out of fear, but let us
never fear to negotiate.
– JFK
• BATNA: Best Alternative
to ...
What is it?
• Negotiation is a
continuing problem
solving process. It’s
getting people with
both common and
conflicting in...
Value Add
• Successful
negotiations allow
for beneficial
exchanges and
agreements to be
made that give
added value to
rela...
Communication
• “The problem
with
communication is
the
illusion that it has
occurred.”
– George Bernard
Shaw
Communication
• Listening
• Being Explicit, candid,
honest and
forthcoming.
• Understanding
• Repeat what you think
you he...
To be an effective negotiator
• Develop and use
people skills.
• Effective
negotiation
involves 20%
Technical skills and
8...
Stereotype
• Tough
• Super skillful
• Secret techniques
• Ruthless
• Winner take all mindset
Rapport
• Effective
negotiators learn to
build rapport and
trust
• They are able to
connect with
others.
Empathy
• Understand that the
other person does
not really care how
the outcome of the
negotiation affects
you.
• The othe...
Be Kind
• Be kind to people
and hard on issues.
Separate people
from the problems
and solutions.
• There’s only one
rule I...
Signaling
• Demeanor can get
you more than
substance.
It is a Small World
• Negotiate with
integrity. Your
career will depend
on it.
Make Bridges
• Don’t burn bridges.
This is especially
true if there is a
chance you’ll be
negotiating with
this same perso...
What is your bottom line?
Before starting,
know…
•your ultimate goal
•what you can waive
or modify
•what you can give
away...
Preparation Refocus
Before starting…
•craft a simple
statement you can use
to explain the goal of
the negotiations.
Someth...
Example
• Something like,
“My client is
interested in
buying the house
and your clients
are interested in
selling the hous...
Process
Start
• Start your
negotiation with a
point on which you
both agree:
• Mutual benefit of a
successful
negotiation (both
wa...
Show interest
• Get Involved- Take
your time and Take
notes. The other
side will appreciate
you taking the time
to write t...
Emotional Distance
• Treat negotiations
like a game. Come
across as caring
about the outcome,
but not that much.
• (We wil...
Don’t be Reactionary
• Deflect, reflect and
then select.
• Before responding,
learn how to take
time and let
something bou...
Empathy and Understanding
• Tap into the other
person’s belief
system. In all
negotiations there
are generally three
truth...
Listen
• Listen 70% of the
time and talk 30%
of the time.
• Two ears and one
mouth. 2 to 1
ratio. : )
• Acknowledge the
ot...
Authenticity
• Set the proper
frame. Smile and
make a good first
impression. Be
honest and real.
• Don’t be cynical in
app...
Keep talking
• Communicate with
tact and empathy.
• Keep the other side
talking. Ask open-
ended questions.
“What do you
m...
Reflect on this
• Two of the best
negotiators are
dogs and babies.
– Relentless
– Sustained
– Persistent
– Constant
SWOT
• Understand your
strengths and
weaknesses and
also the other
side’s strengths
and weaknesses.
Sell
• Share you position
via story telling.
Remember, facts
tell but stories sell.
Options and Alternatives
• Don’t fall in to the
trap of the
either/or
dichotomy. It’s
never only A or B.
There’s always C,...
Relationships and Outcomes
Preparation
Dress and groom
yourself
appropriately. Be
on time, prepared
and remember the
6 ps:
prior preparation
prevents...
Eye to Eye
• Negotiate in person
when possible. Over
the phone is OK. In
most instances,
Avoid negotiating by
email.
• 70%...
Avoid getting Boxed In
• On major issues,
never negotiate for
yourself. Use a
third party.
• Do not include
person with
au...
Authority to make a Decision
• along the same
lines, do not agree
to negotiate with
the other person
unless he or she
has ...
Acknowledge, Empathize, Redirect
• Never tell the other
side they are
wrong. Instead
use this, “I know
how you feel. I
use...
Create a sense of Urgency
• When making
offers, use time
sensitive deadlines
and mean it.
• Credibility not
threats.
Strategic Respect
• Always leave a
“back door” or
“exit strategy” for
the other person.
Allow him or her to
save face and
...
Close the Deal
• When the time is
right, never be
afraid to Close the
deal. Ask for the
sale or ultimate
desired outcome.
Signed, Sealed, Delivered
• Avoid buyer
remorse. If
documents are
necessary, have
them ready to go
and don’t leave
until t...
Success
• Both parties relatively
satisfied.
• Leave some on the
table.
• Don’t crush the other
side. You may need
informa...
Negotiating: A Practcal Approach
Negotiating: A Practcal Approach
Negotiating: A Practcal Approach
Negotiating: A Practcal Approach
Negotiating: A Practcal Approach
Negotiating: A Practcal Approach
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Negotiating: A Practcal Approach

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Tips on how to approach the process of negotiating with an emphasis on being rational, kind and even tempered. With so many ways to be led astray by ego and emotions during negotiations, this template helps us remember what is important and how to stay cool and focused.

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Negotiating: A Practcal Approach

  1. 1. Negotiating A Practical Approach
  2. 2. Alternatives • Let us never negotiate out of fear, but let us never fear to negotiate. – JFK • BATNA: Best Alternative to a Negotiated Agreement.
  3. 3. What is it? • Negotiation is a continuing problem solving process. It’s getting people with both common and conflicting interest to come together to arrange or adjust their future relationship by making a joint decision.
  4. 4. Value Add • Successful negotiations allow for beneficial exchanges and agreements to be made that give added value to relationships or situations.
  5. 5. Communication • “The problem with communication is the illusion that it has occurred.” – George Bernard Shaw
  6. 6. Communication • Listening • Being Explicit, candid, honest and forthcoming. • Understanding • Repeat what you think you heard and understood. • Get confirmation
  7. 7. To be an effective negotiator • Develop and use people skills. • Effective negotiation involves 20% Technical skills and 80% people skills.
  8. 8. Stereotype • Tough • Super skillful • Secret techniques • Ruthless • Winner take all mindset
  9. 9. Rapport • Effective negotiators learn to build rapport and trust • They are able to connect with others.
  10. 10. Empathy • Understand that the other person does not really care how the outcome of the negotiation affects you. • The other person only cares about how it affects him or her and their side.
  11. 11. Be Kind • Be kind to people and hard on issues. Separate people from the problems and solutions. • There’s only one rule I know of: you have to be kind. – Kurt Vonegut • Ad Hominum
  12. 12. Signaling • Demeanor can get you more than substance.
  13. 13. It is a Small World • Negotiate with integrity. Your career will depend on it.
  14. 14. Make Bridges • Don’t burn bridges. This is especially true if there is a chance you’ll be negotiating with this same person or company again in the future.
  15. 15. What is your bottom line? Before starting, know… •your ultimate goal •what you can waive or modify •what you can give away without any issues.
  16. 16. Preparation Refocus Before starting… •craft a simple statement you can use to explain the goal of the negotiations. Something you can use over and over during the negotiations to refocus the players.
  17. 17. Example • Something like, “My client is interested in buying the house and your clients are interested in selling the house. What can we do to get this deal done?”
  18. 18. Process
  19. 19. Start • Start your negotiation with a point on which you both agree: • Mutual benefit of a successful negotiation (both want a resolution) and • Things or issues you each have in common.
  20. 20. Show interest • Get Involved- Take your time and Take notes. The other side will appreciate you taking the time to write things down (even if you really don’t need to).
  21. 21. Emotional Distance • Treat negotiations like a game. Come across as caring about the outcome, but not that much. • (We will talk about applications of Game Theory too.)
  22. 22. Don’t be Reactionary • Deflect, reflect and then select. • Before responding, learn how to take time and let something bounce off you, reflect and think about it, and then select your response.
  23. 23. Empathy and Understanding • Tap into the other person’s belief system. In all negotiations there are generally three truths: your truth, the other person’s truth, and the actual truth.
  24. 24. Listen • Listen 70% of the time and talk 30% of the time. • Two ears and one mouth. 2 to 1 ratio. : ) • Acknowledge the other person’s ego.
  25. 25. Authenticity • Set the proper frame. Smile and make a good first impression. Be honest and real. • Don’t be cynical in applying these suggestions. You really need to care about the other party.
  26. 26. Keep talking • Communicate with tact and empathy. • Keep the other side talking. Ask open- ended questions. “What do you mean by that?”
  27. 27. Reflect on this • Two of the best negotiators are dogs and babies. – Relentless – Sustained – Persistent – Constant
  28. 28. SWOT • Understand your strengths and weaknesses and also the other side’s strengths and weaknesses.
  29. 29. Sell • Share you position via story telling. Remember, facts tell but stories sell.
  30. 30. Options and Alternatives • Don’t fall in to the trap of the either/or dichotomy. It’s never only A or B. There’s always C, D and E. • Open it up and be creative, don’t think binary.
  31. 31. Relationships and Outcomes
  32. 32. Preparation Dress and groom yourself appropriately. Be on time, prepared and remember the 6 ps: prior preparation prevents piss poor performance!
  33. 33. Eye to Eye • Negotiate in person when possible. Over the phone is OK. In most instances, Avoid negotiating by email. • 70% of all communication comes from body language, expressions and eye contact.
  34. 34. Avoid getting Boxed In • On major issues, never negotiate for yourself. Use a third party. • Do not include person with authority directly in the negotiations. Keep option open, “I need to run that by my partner…”
  35. 35. Authority to make a Decision • along the same lines, do not agree to negotiate with the other person unless he or she has full authority.
  36. 36. Acknowledge, Empathize, Redirect • Never tell the other side they are wrong. Instead use this, “I know how you feel. I use to feel the same way. But then I found out about AAA and now I feel BBB.”
  37. 37. Create a sense of Urgency • When making offers, use time sensitive deadlines and mean it. • Credibility not threats.
  38. 38. Strategic Respect • Always leave a “back door” or “exit strategy” for the other person. Allow him or her to save face and avoid embarrassment (especially in front of a client).
  39. 39. Close the Deal • When the time is right, never be afraid to Close the deal. Ask for the sale or ultimate desired outcome.
  40. 40. Signed, Sealed, Delivered • Avoid buyer remorse. If documents are necessary, have them ready to go and don’t leave until they are signed and all terms are properly confirmed.
  41. 41. Success • Both parties relatively satisfied. • Leave some on the table. • Don’t crush the other side. You may need information or a follow on favor.
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