01. Negotiating Presentation For The Seminar Generic 2009 September Beta Release 1.16 04092009

Otium or Negotium ? The thrill of Negotiating Playing hard by negotiating efficiently Folgore Eugenio Pozzolini – The Pozzolini Flying Circus 2009 (parts of this presentation are Copyrights of other authors) The Courage To Do The Impossible Lies In The Hearts of Men 2009 September Beta Release 1.16

This is an Open Source document, hence free . However be kind to contact me at [email_address] before using any part of it.

Folgore Eugenio Pozzolini 2009

(parts of this presentation are Copyrights of other authors)

A thank you to My father, who negotiated his survival during WW 2 as a freedom fighter Mr. Eric Pernette – Head of Industrial Relations ERDF For his effort in discussing this paper, advice and common good sense Roger Fisher , PhD – Harvard Law School William Ury , PhD, co-founder Harvard's Program on Negotiation Director the Global Negotiating Initiative Bruce Patton - Deputy Director Negotiation Project Harvard Negotiation Project authors of GETTING TO YES (Negotiating agreement without giving in) whom I quote extensivley in this course

Objective of the course To get, you, through the understanding of the sequence of actions which will take place in conducting a negotiation and negotiating, to comprehend the meaning, value and effort – as well as skills - required to negotiate The Latin ethymology of the verb to negotiate is : negotiatus , past participle of negotiari to carry on business from the noun negotium , neg ( not) + otium ( leisure) which means in one simple sentence GOOD WORK !

Chapter 1.01 Today’s ethimology of the word/verb negotiate

The construction of the linguistic process and its derivates by analysing the

linguistic and philological root tree.

Where do the word negotiation and the verb to negotiate come from?

What are the variances and derivations of both ?

Where do they lead to?

What other meanings can we attribute to both!?!

If you understand this – in a short lapse of time - I will buy you a

beer!

Not simple or easy but in terms of logics necessary , essential

Without it you will not understand where a word/verb come from nor what are

their meaning in context, therefore you may not know what you are talking

about as you will not have a full 100 % mastering of it !

negotiation (noun) the activity or business of negotiating an agreement The Tree: act ; human action ; human activity ╚ activity ╚ negotiation negotiation, ( noun) a discussion intended to produce an agreement The Tree: abstraction FROM ╚ relation ╚ social relation ╚ communication ╚ auditory communication ╚ speech ; speech communication ; spoken communication ; spoken language ; language ; voice communication ; oral communication ╚ discussion ; give-and-take ; word ╚ negotiation, dialogue , talks TO ╚ mediation ╚ horse trading ╚ collective bargaining ╚ bargaining ╚ diplomacy ; diplomatic negotiations ╚ parley

to negociate , negotiate, (verb) The Tree: act ; move FROM ╚ interact ╚ communicate ; intercommunicate ╚ talk ; speak ; utter ; mouth ; verbalize ; verbalise ╚ talk of ; talk about ╚ hash out ; discuss ; talk over ╚ negociate , negotiate, talk terms TO ╚ broker ╚ dicker ; bargain ╚ re- negociate ; renegotiate ╚ intercede ; mediate ; intermediate ; liaise ; arbitrate

My observations and a few thoughts about the use/abuse, misconceptions, misunderstanding on the concept of NEGOTIATION Chapter 1.02

The nefarious habit/influence of the use via internet of Google and Wikipedia and Facebook and Second life and Video games to the extreme has pushed human begins to isolate themselves more and more shielding themselves from the impervious challenges coming from the outside world. Today we experience difficulty in negotiating perhaps because there is a clear lack of interaction between humans based on knowing each other, negotiating our positions, defending our point of view, fighting for our needs and wants, in the end, being able to sort out in a decent manner potential conflicts in the making. I have some doubts about the validity of the 3 Winners scenarios, WWW , because in any given situation there is going to be a larger winner than others. Today’s urban mythology that all is beautiful, that we live in a world of all winners, is pernicious and misleading. Dangerous in the least. World as it was, is and will be, is a world of latent conflicts, problems, issues, which can and should be confronted one on one , person to person, head to head, eye to eye with all the preparation, determination and attention that we can muster and manage.

We can’t run away from negotiating in our every day life

There in no place to hide except returning to your mother’s womb!

I have no pretence of teaching you what is defined - by some - as the Art of Negotiation , because I do not believe that it exists, if not in rare, very rare cases, where we have a Leonardo or a Michelangelo of negotiation in action.

They are as rare as the Mona Lisa in the Louvre or the Pietà in the Vatican.

I firmly believe that we can ALL negotiate because every day we negotiate our life.

What is required are skills, preparation, knowledge and savoir faire (know how). Clicks do not build Bricks . Bricks are built by negotiating with life, not in a pseudo baby-world of « Eldorado » or video game scenarios where war is won at the Microsoft Table in 3 D, no blood spilled, no pain, but always in the end gain. Now, is that conceivable? Gain without pain ? Without negotiation?

Not in the world I belong to !

Thank you for your attention to my lesson

Otium et Negotium a few words of explanation Chapter 1.03

Otium and Negotium were two key concepts for Latin culture, but with a totally opposite value. And meaning. Indeed, while the Negotia ( plural of Negotium) were activities purely performed in order to serve the Senatus Popolusque Romanorum (SPQR) or - in modern terms - the State, Otia (idem) indicated taking time off from public devoted activity, or free time for the free citazin for his private life , privacy or study ( Otium litteraratum ). For a long time Roman Society and Culture favoured the Negotia . This innate idea in Rome was influenced particularly by the typical rural values of the mos maiorum existing, from its origins in, the cives romanus . Otium thus remained only a small diversion/interlude that they allowed themselves from time to time between one Negotiae commitments and another… PS. Someone asked me a few days ago: why Otium and then Negotium ? Slightly embarrassed I realized that unconsciously I had placed, as usual in my mind, the PLAY HARD part before the WORK HARD.

Chapter 1.04 Quotes Definition Example of negotiations postures

John Fitzgerald Kennedy

Mr. Eric Pernette

Theodore Roosvelt

Barack Obama

Mohandas Gandhi

Marcus Junius Brutus

Marcus Antonius

So let us begin anew -- remembering on both sides that civility is not a sign of weakness , and sincerity is always subject to proof Let us never negotiate out of fear , but let us never fear to negotiate. JFK - Inauguration speech - 1961 You must exchange with the risk of changing Mr. Eric Pernette –F2F meeting August 2009 The Courage To Do The Impossible Lies In The Hearts of Men. “ Leader” of Master & Commander, the Film

It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better.

The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself for a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat. Theodore Roosvelt - La Sorbonne, Paris, April 23, 1910

Mr. Obama has few illusions about Mr. Putin.

“ I found him tough, smart, shrewd, very unsentimental, very pragmatic.

And on areas where we disagree, like Georgia, I don’t anticipate a

meeting of minds anytime soon.”

By the same token, Mr Obama said he trusted Mr. Medvedev and found

him “ straightforward and professional”.

The Economist, 11th July 2009

Gandhi tells British authorities that they will leave India

Is it a negotiation?

Is it a factual non negotiable point which should force the opposite to think or should he negotiate ?

What is the force of Gahndi’s argument in his negotiating tone? What is the strenght of the Englishmen in their negotiating pattern ?

www.americanrhetoric.com/MovieSpeeches/moviespeechgandhi3.html

Between Brutus and Marcus Antonius a negotiation ?

Is it a tactical mistake of Brutus to let Marcus Antonius have his say?

How does Marcus Antonius turn around the crowd ?

Is it a negotiation or a skilled off-balancing on the part of Marcus Antonius

of the opposite by the use of factual irony ?

By using the roman rethoric method on the part of Marcus Antonius of

saying what we want to say by saying the opposite ?

What are the factual and emotional elements that Marcus Antonius brings

to the table?

What are the main difference between the two. Is one a speech and the other

an oration?

http://www.americanrhetoric.com/MovieSpeeches/moviespeechjuliuscaesarantony.html

Chapter 1.05

1.05.01 Qualities and Character of a negotiator

1.05.02 Fields, Types and Areas of negotiation

1.05.03 What not to bring to the table

1.05.04 Winner & Losers. The myth of WinWinWin vs. the reality of WinWinWin

1.05.o1 Qualities of a terrific one-in-class negotiator my definition Preparation Numbers & Facts on the tip of your fingers Make it clear that what you SAY is what you will do Make sure that you will DO is what you said you would Flexibility , always Punch - if and when called for Stepping back, when required

Qualities of a terrific one-in-class negotiator straight from the mouth of a one-in-class negotiator Listening Listening Listening I must admit I was surprised how this coincided with my previous apprentiship in a Masonic Lodge where for the first 3 years I had to listen before beign allowed to talk!

An advise to a future - green & young - negotiator Follow the leader, « carry his bag », enter in the « big boys club » and become part of a negotiation session as a listener

Therefore I will talk to you about…………

In talking to good professional negotiators I came across the fact that

indeed there are quite a number/types of negotiations possible in the

universe of a Company, depending on the field of business, diverse

activities, opposites, object of the negotiation.

As well as negotiations in your day-to-day life, in politics, war,

between countries, between sharp contrasting interests.

Therefore I will talk to you about…………

1.05.02 Fields,Types and Areas of negotiation Industrial relations with Trade Unions Commercial agreements (buy & sell) Service contracts Partnerships Joint ventures Mergers and Acquisitions A political agreement Your fiancée's hand Your kids demands A bank loan Your salary ! Everything and Anything that is negotiable keeping in mind that Anything & Everything is negotiable

1.05.03 What imperatively you must not bring to the negotiation table

Lack of Integrity

Ulterior motives

Hidden Agenda

Lack of good faith

False information or data

1.05.04 Winner & Losers. The myth of WWW vs. the reality of small wins, ok wins and large wins There are no two winners in a prize fight, just the one who rolls the best punches There is a winner and a loser : “The Bronx Bull”Jacke Lamotta or “Sugar” Ray Robinson NOT the public, NOT the referee. This even more in a three way negotiation. Therefore please get out of you mind that we are all good, soft, that we love the earth, that we love not to hurt. Because if you don’t get it out of your mind, stiffen up, you will get hurt, badly at times In business there are winners, losers or less winners. But for sure no equals

1.05.04 Winner & Losers. The myth of WinWinWin vs. the reality of WinWinWin Who are the Winners in a business negotiation ?

First of all Your company

Second You and your company

Possibly You and both companies

Chapter 1.06 First part

Substance

Si vis pacem para bellum

You are the key & center of your negotiating world.

Be one in class when you negotiate.

Those who dare to dare , sort out inventive SOLUTIONS , are pragmatic and - at the same time - able to act in a non-pragmatic fashion if so called for, contribute brilliant SOLUTIONS , are motivated by the aim of reaching a WinWinWin agreement, create SOLUTIONS , think SOLUTION before the manifestation of the problem, are - in my view & professional experience - valid negotiators.

To negotiate you must master and muster

Points (Infos)

Figures (Data)

And know PEOPLE , think PEOPLE because if don’t know PEOPLE you

will never give the opposite an honourable way out

You WILL

Prepare a script

Roll it out with a superb, better than you , Sparring Partner and defend it tooth and nail

Answer tough questions never taking it personaly

Train, train, train

Preparing yourself for the first round of negotiations

You must and will :

Prepare your plan of action , a time-table as well as a schedule

Set your Agenda

Define what is negotiable , not negotiable and in-between

Define what is marginal and what is priority for your Company

Set you imaginary scenario, seating positions & allotted time for each step and phase

Define in your mind who is going to run the negotiation session, us or them ?

Define , again in your mind, who is going to chair the negotiation session, acting as an arbiter even if he belongs to one of the two camps

Clarify in your mind and set what Rules of Order will govern you negotiating meeting

Scroll down your agenda with your splendid Sparring Partner (an in boxing) and lay out your positions, argument your arguments, points, to the limit (that I mean) issues tooth and nails

No blood spilled but hard tack, attack and defence, we are not in the boy scouts , you are selling and defending your Company, no prisoners, and prisoners must be taken often..

Prepare and put to your Sparring Partner tough questions never attacking him personally

Answer tough questions from your SP never taking it personally

Train, train, train

The only things, the one and only that you must be sure of is yourself .

If you bring all you have , to the best, you will probably not be loved but surely respecetd and perhaps admired

Last but not least, if you are a smart one , try to negotiate as if you where your opposite !!!!!

Keep well impressed in your mind that you have one and only one chance in negotiating a good agreement if you are in charge of it.

If you miss this opportunity, you are out.

You are off my team.

No time for “shape up or ship out” for you.

It’s over, for you.

Chapter 1.06 Second part Form

Never make derogatory or overly gratifying remarks to your negotiating counterpart.

Remember never, ever, ever humiliate the negotiating couterpart.

He may and will get retribution one day

Always think and build your answer or your next question when your coutrepart is talking

Listen and think at the same time

Your answer could be a question

Chapter 1.07

Method

Always think Bottom Line .

Always keep in mind that full control, knowledge, reactiveness, analysis, and good mathematics (without your pocket calculator) :

2 plus 2 is always 4, neither three nor 5

4 times 2 is 8

8 by eight is 64

And € 10,000.00 divided by 112 is ?

are key to becoming proficient & smart at negotiating

Always start from economics or economic impact subjects that are difficult

Never Stall.

It is a sign of weakness or incompetence or ignorance or, worst-case scenario, being identified as a P.o.S. or a S.o.B.

Always finish one point of negotiation before moving to the next one

It may block a negotiation but it will show your committment

You will then be viewed as a credible counterpart and interface.

Summa

Always remember the tecniques, the nuances, the skills of your negotiating countepart.

If you do not succeed 100 % , if you have played by the rules , you may/will/could have a second, third opportunit & chanche to better your performance, output and result and show your true colours.

Good luck and good work

Intermission

Home work

Rehears all that was done today and prepare yourself for the first ½ hour of Q/A during lesson TWO

Got it ?

Read Chapter ONE and TWO of the book.

Better if all (It will take you one day)

By-by to the next lesson

Lesson of day TWO Let’s get down to business

Negotiating an agreement without giving in (*)

Parts of this presentation are an adaptation or simple lifting of parts from the book, others are copies from the Internet

(*) subtitle to the book GETTING TO YES.

QUESTION of the DAY How do we negotiate on an everyday basis ? In which environment, with whom , what do we negotiate for , when and, above all, why ?

This is your standard network of contacts, websites, etc… that you have on you dashboard. Are you going to use it at all times and with what frequency?

This is your world of negotiable contacts. How many can you really exploit and negotiate with ?

The evolution of a negotiated relationship on Facebook form Total Network to « Real friends ? » non - clustering

The evolution of a negotiated relationship on Facebook form Total Network to « Real friends ? » clustering

Original Network 179 contacts on Facebook high clustering

C ontacts maintained Actively following the postings of smaller groups lower clustering

Messages sent to even fewer people One way pings - One way communication ( ping-no-echo – no doppler effect) minimal clustering

Of those only some reciprocate. Are they « real friends » ? Is there a mutual communication in place ? no clustering Should we further NEGOTIATE ?

Soft Negotiating Positioning

Partecipants are friends

The goal is agreement

Concessions are to be made to cultivate the relationship

Go soft on the people and the problem

Tust others

Change your position easily

Make offers

Disclose your bottom line

Accept one-sided losses to reach agreement

Search for the single answer : the only they will accept

Insist on agreement

Try to avoid a contest of will

Yield to preassure

Hard Negotiating Positioning

Partecipants are adversaries

The goal is victory

Demand concessions as a condition of the relationship

Be hard on the the problem and the people

Distrust others

Dig in to your position

Make threats

Mislead as to your bottom line

Demand one-sided gains as the price of agreement

Search for the single answer : the only you will accept

Insist on your position

Try to win a contest of will

Apply preassure

The game of negotiation

It takes place at two levels :

On one level negotiation process addresses the substance

On another level the negotiation process focuses – implicitly – on the procedure for dealing with substance

The first level negotiation process addresses the substance which may concern your salary, the terms of a lease, a price to be paid. The second level negotiation focuses on the procedure for dealing with substance and concerns how you will negotiate the substantive question :

either

by soft positional bargaining

or

by hard positional bargaining or by some other method

This second level negotiation is a game about a game - a meta game.

Each move you make within a negotiation is not only a move that deals with rent, salary, or other substantive questions; it also helps structure the rules of the game you are playing. Your move may serve to keep the negotiation within an ongoing mode, or it may constitute a game-changing move

Chapter 2.01

Definining a straightforward method of negotiation that you will be able to use in most circumstances

2.01.01 Separate the People from the problem

Emotions become entangled with the objective merits of the problem

Taking positions makes this worse because people’s ego become idendified with their ego and their positions.

You must be working side by side with your opposte and allies, attacking the problem, not the other , not beign part of the problem, but the solution.

2.01.02 Focus on interest not position

Overcome the drawback of focusing on people’s stated

positions when the objective of a negotitation is to satisfy

their underlying intersts

A negotiating position often obscures what you really want

Compromising between positions is not likely to produce

an agreement which effectivley takes care of human needs

that leads people to adopt those positions

2.01.03 Invent options for mutual gains before trying to reach agreement

It is difficult to design optimal solutions when under preassure. Trying to decide in the presence of an opposite narrows you scope and vision

Having a lot at stake narrows you vision.

Searching for the one right solution will also narrow your vision

2.01.04 Result must be based on some objective standard by using objective critera

Any negotiator may be able to reach a favourable result simply by being hard headed

This modus operandi tends to prize intransigence and will produce arbitrry results.

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

All this in a

No gloves offatmosphere

Smile

Tought barganing if so required

Give and take

Respect of the well prepared opposite

Never giving and always giving in

What is negotiable and what is not negotiable

Rule of thumb

20 percent that produces the 80 percent of all is non negotiable

The 80 percent which produces the 20 if fully negotiable

The tecnique of pre-negotiting the negotiable A small trick you should know before entering the heat of the meeting

60 percent of the total subject of the negotiating agenda & session can be addressed & negotiated before the face-to-face meeting and got out of your way

You can then focus the heart of the matter tough-nut-to-carck 20 percent that is not negotiable which is part the remaining 40 percent, half of which is negotiable in order to give you leeway during the session

If you are so clever to get 60 percent of the remaining 40 percent negotiated without any damage to your side and acceptable by your “opposites” , then

Bingo !!!!!!!!!!!!!!!!!! you got it! The negotiation was a success. No blood spilled!!!!!!

How do you set up a communication & negotiating strategy in order to be sure that the 60 percent of all issues on the table out of the way, deal done before the meeting takes place ?