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Win Win Negotiating For Executives Exec Net St. Louis Sept 23 09
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Win Win Negotiating For Executives Exec Net St. Louis Sept 23 09

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Learn the principles of win-win negotiating for today\'s environment to close a deal or to get a job.

Learn the principles of win-win negotiating for today\'s environment to close a deal or to get a job.

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  • 1. ExecNet-St. Louis: “Executives Helping Executives” Win-Win Negotiating for Executives Presented by Greg Porto - Michael Garcia September 23, 2009
  • 2. Win-Win Negotiating for Executives Table of Contents  Overview of the Presentation  Keys to a Successful Negotiation  Common Negotiation Mistakes  How to Negotiate a Successful Job Offer . Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 2 greg@ion-partners.com michael.g789@sbcglobal.net
  • 3. Win-Win Negotiating for Executives Overview of the Presentation  The type of negotiation we are discussing today is give and take communication where:  Both sides come to a consensus and commit to an agreement  The agreement helps to preserve, and build upon, the relationship - no permanent damage to the other side … Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 3 greg@ion-partners.com michael.g789@sbcglobal.net
  • 4. Win-Win Negotiating for Executives Overview of the Presentation  Greg Porto will discuss best practices as well as pitfalls in general negotiating  Greg is a Managing Director with Ion Partners LLC, a NYC based investment bank. He assists clients with mergers and acquisitions and capital offerings.  Greg will present pages 5 -14.  Michael Garcia will discuss negotiating job offers  Michael is a former Chief Human Resource Officer for a publicly traded healthcare company and a private KKR funded Start-Up. He is in transition.  Michael will present pages 15 – 27. Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 4 greg@ion-partners.com michael.g789@sbcglobal.net
  • 5. Win-Win Negotiating for Executives Keys to a Successful Negotiation Before you start formal negotiation…. 1. Have a positive, can-do mindset: - Be in a calm, focused place – mentally, emotionally, physically - Have clarity - to see the facts – from both your and the other side‘s perspective - to see the opportunities and challenges - Fundamentally believe you‘ll strike a good deal which benefits both parties - visualize success Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 5 greg@ion-partners.com michael.g789@sbcglobal.net
  • 6. Win-Win Negotiating for Executives Keys to a Successful Negotiation Before you start formal negotiation…. 2. Answer these questions in writing: - What specific outcomes do you hope to achieve and why? - What outcomes would you like to achieve but can live without? - Given your desired outcomes, what will your opening positions/requests be? - What will you tell the other side you need, but can readily offer as a bargaining chip? - What are your alternatives to an agreement? Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 6 greg@ion-partners.com michael.g789@sbcglobal.net
  • 7. Win-Win Negotiating for Executives Keys to a Successful Negotiation Before you start formal negotiation (cont’d)…. 3. Put yourself in the other side‘s shoes: Based on preliminary discussions with, and your knowledge of, the other side write out: - What are their desired outcomes and why? - Given their desired outcomes, what will their opening positions be? - What will they ask for that‘s not critical? - What are their alternatives to an agreement? - Focus on underlying needs not positions - Repeat this exercise as you get more information and throughout the negotiation Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 7 greg@ion-partners.com michael.g789@sbcglobal.net
  • 8. Win-Win Negotiating for Executives Keys to a Successful Negotiation Before you start formal negotiation (cont’d)…. 4. Work through scenarios in writing - Write out ‗What-if‘ and ‗Win-Win‘ scenarios - How can you get what you want while satisfying their needs? - Repeat this exercise as you get more information and throughout the negotiation Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 8 greg@ion-partners.com michael.g789@sbcglobal.net
  • 9. Win-Win Negotiating for Executives Keys to a Successful Negotiation Before you start formal negotiation (cont’d)… 5. Practice beforehand: - In front of mirror (facial expression, body language, tone of voice, clothes); videotape yourself - Role play with a colleague, friend or your spouse - Recognize the power of presence 6. Define the negotiation framework with the other side before you begin: - Identify the players - make sure parties have proper authority to negotiate - Define primary and secondary issues to be negotiated - Determine negotiation timing, venue(s) Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 9 greg@ion-partners.com michael.g789@sbcglobal.net
  • 10. Win-Win Negotiating for Executives Keys to a Successful Negotiation During the negotiation…. 7. Ask outstanding questions / be clear in your communication - Formulate your questions ahead of time - In a negotiation, the side that frames the questions has an enormous advantage - Ask straightforward questions and don‘t make the other side feel inferior - Listen carefully to what they say as well as what they do not say - Clearly ask for what you want - if you don‘t ask, you don‘t get 8. Revisit the questions in #3 and #4 regarding the other side and what-if scenarios Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 10 greg@ion-partners.com michael.g789@sbcglobal.net
  • 11. Win-Win Negotiating for Executives Keys to a Successful Negotiation During the negotiation (cont’d)…. 9. Rely on facts, not assumptions - If facts warrant you to change your opinion, then change your opinion - Never become emotionally wed to your opinion 10. Present a consistent communication style - Fluctuating emotions/moods elicit mistrust or may make you appear tentative - Your style should be complementary to the other side‘s - Know your interpersonal strengths and weaknesses Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 11 greg@ion-partners.com michael.g789@sbcglobal.net
  • 12. Win-Win Negotiating for Executives Common Negotiation Mistakes 1. Talking instead of listening - Let the other side talk freely, confirm their priorities and the facts as they see them - Listen for where there is agreement/disagreement - Let the facts get out before you start drawing conclusions 2. Caring more about enlightening the other side than striking a deal - Act like a ‗closer‘ not a ‗teacher‘ - There is no prize for being right and not reaching an agreement 3. Looking for answers before you have identified all the issues/questions - Take the time to frame out the issues/questions - Take care not to overlook or ignore key issues Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 12 greg@ion-partners.com michael.g789@sbcglobal.net
  • 13. Win-Win Negotiating for Executives Common Negotiation Mistakes 4. Assuming the other side communicates like you do - Take into account style and cultural differences in communication 5. Not taking a ‗time out‘ or walking away when you should - Taking a time out, walking away and saying ‗no‘ are not giving up, they are strategic negotiating tools. You can always re-engage. - Sometimes agreement is not meant to be – in this case, moving on to find a solution by pursuing an alternative to negotiating is the most constructive course Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 13 greg@ion-partners.com michael.g789@sbcglobal.net
  • 14. Win-Win Negotiating for Executives Finally…… Make Friends and Create Solutions!! - Keep the Substance (facts) of the negotiation objective - Keep the Form (communication style) of the negotiation personable ―All things being equal, people want to do business with their friends. All things being not quite so equal, people STILL want to do business with their friends.‖ - Jeffrey Gitomer Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 14 greg@ion-partners.com michael.g789@sbcglobal.net
  • 15. Win-Win Negotiating for Executives Negotiating a Job Offer with a Prospective Company Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 15 greg@ion-partners.com michael.g789@sbcglobal.net
  • 16. Win-Win Negotiating for Executives Has the market changed the rules of negotiating? • Mostly yes … even if it is only temporary. • The availability of labor and talent has changed the market. • The current market has depressed and compressed salaries. • High degree of competition per position. • Companies are now looking to upgrade and find the ―perfect fit‖ candidate. • Budgets are more tight and tenuous. Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 16 greg@ion-partners.com michael.g789@sbcglobal.net
  • 17. Win-Win Negotiating for Executives Negotiating starts with your first interaction. • What you tell your perspective employer early on does matter. • Determine your specific level and salary target (be realistic). • Do not give mixed messages. • My target salary depends on several factors and money is not on my top three: 1. Good organization and Culture 2. A good team and boss 3. An ability to make a positive difference and contribute to Company success. Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 17 greg@ion-partners.com michael.g789@sbcglobal.net
  • 18. Win-Win Negotiating for Executives Good Ideas and Rules of thumb • Your number one objective is to get and offer! • Show and tell your enthusiasm. • Being able to do the job is important… being liked and creating good chemistry with your interviewers is more important. • Do not talk to much • Be still / silent • Be consultative in your style—Identify their needs and figure out how you can help them. • It is always better to have competing interested parties as a way to increase offers. Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 18 greg@ion-partners.com michael.g789@sbcglobal.net
  • 19. Win-Win Negotiating for Executives A walk in their shoes helps us understand! • Companies worry about internal equity and compression problems. • You should target an offer between the 40th and 75th percentile. • You do not want too low or too high of an offer. • Ask – ―Where will I fit in percentile wise with others on my team and others performing similar roles?‖ • Ask about their flexibility. • Ask – ―So I better understand the offer – what variables are impacting this offer?‖ • Ask – ―Is this the best offer you are able to make?‖ • Ask about their flexibility. • Negotiations that are too tough may cause harm after your start or cause a removal of an offer. Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 19 greg@ion-partners.com michael.g789@sbcglobal.net
  • 20. Win-Win Negotiating for Executives Please hire me! – Tactics • Position all negotiations in a positive, I am very interested in the job; help me understand the offer angle. • Present yourself in a prepared, organized, positive, very likable manner. • State: ―I am open on compensation but want to ensure I receive a competitive offer.‖ Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 20 greg@ion-partners.com michael.g789@sbcglobal.net
  • 21. Win-Win Negotiating for Executives Please Hire Me! – Tactics Prepare and show them a ―T – Chart‖ in order to show why it makes sense to hire you. Key Job Requirements Experience Examples Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 21 greg@ion-partners.com michael.g789@sbcglobal.net
  • 22. Win-Win Negotiating for Executives Please Hire Me! – Tactics • Start any negotiations by telling the Company your strong interest in the position. • Follow-up by telling the Company you need help understanding the offer… specifically the compensation package. • Speak in person or by phone when discussing salary negotiations. NEVER BY EMAIL! • Allow them time to consider your concern – silence is wisdom. • Always stay positive during negotiations. Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 22 greg@ion-partners.com michael.g789@sbcglobal.net
  • 23. Win-Win Negotiating for Executives Please Hire Me! – Tactics • Understand the full scope of the total cash and non cash offer AND the opportunity. • It is OK to be creative and discuss goal oriented cash awards – keep them simple. • Target a salary range • Know your market for your position. • Always stay honest. • If appropriate – explain why you might consider taking less and why you would stay. Would you be willing to make a long term commitment? Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 23 greg@ion-partners.com michael.g789@sbcglobal.net
  • 24. Win-Win Negotiating for Executives Navigating the tough questions • What did you make at _______? • What is the least you would take? • Tell me about your salary history? • You are too high level/salary for _________? Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 24 greg@ion-partners.com michael.g789@sbcglobal.net
  • 25. Win-Win Negotiating for Executives When to accept / not accept • Target a salary between the 40th and 75th percentile of the prospective internal group. • Consider opportunities for progression. Does the offer meet your ―important‖ criteria? • Will you be able to drive company success? • Will your boss and team be reasonably good people to work with? • Avoid the trap of grabbing a job and creating a choppy resume. • The current market creates a little air cover for weak moves. Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 25 greg@ion-partners.com michael.g789@sbcglobal.net
  • 26. Win-Win Negotiating for Executives Some factors to consider: • Your financial situation • Family support • Industry • Job vs. Career moves • Who will you work for? • Your true goals • Do not go against your instincts! Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 26 greg@ion-partners.com michael.g789@sbcglobal.net
  • 27. Win-Win Negotiating for Executives Selling short Role Play Questions and Answers Greg Porto Michael Garcia Managing Director – Ion Partners LLC Human Resources Executive 27 greg@ion-partners.com michael.g789@sbcglobal.net