The Thrill Of Negotiating


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The Thrill Of Negotiating

  1. 1. Today we experience difficulty in negotiatingperhaps because there is a clear lack ofinteraction 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 mannerpotential conflicts in the making. 1
  2. 2. The thrill of negotiating Bachelor 3 Advancia Business School - Paris Academic Year 2011 – 2012 Folgore Eugenio Pozzolini Fellow September 2011 © Folgore Eugenio Pozzolini 2011 (tiny parts of this presentation may be Copyrights of other Authors) This is an Open Source document, hence free. 2However be kind to contact me at before using any part of it.
  3. 3. A thank you toMy father, who negotiated his survival during WW 2 as a freedom fighter To some of my students in 2009 and 2010 who have been an integral part of this course and without whom I could not have tailored and refined the course to the level of today 3
  4. 4. Objective of the courseTo get, you, through the description of the sequence of actions which willtake place in conducting a negotiation and negotiating, to understand themeaning, value and effort – as well as skills – required in order tonegotiate. 4
  5. 5. My thinking in giving this courseThe nefarious habit/influence of the use via internet of Google and Wikipedia andFacebook and Second life and Video games to the extreme, is pushing human beginsto insulate more and more shielding themselves from the unknown challengescoming from the outside world by not verbally exchanging & confronting differentpoint of views with the Other .Today we experience difficulty in negotiating perhaps because there is a clear lack ofinteraction 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 ableto sort out in a decent manner potential conflicts in the making, face to face. face 5
  6. 6. I have some doubts about they validity of the 3 Winners scenarios, the so-calledslangish Win Win Win, because in any given situation there is going to be - inany case - a larger Winner than others , a smaller one if not one ormore...Losers! LosersToday’s urban mythology that all is beautiful, that we live in a world of all winners, beautiful winnersis 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 canmuster and manage. 6
  7. 7. Key WordsPreparation,DeterminationAttention that we can muster and manage. 7
  8. 8. We can’t run away from negotiating in our every day life.There in no place to hide except returning in your mother’s womb!I have no pretence of teaching you what is defined - by some - as the Art ofNegotiation, 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 or the Pietà in the VaticanI firmly believe that we can all negotiate because every day we negotiate our life.What is required is skills, preparation, knowledge, savoir faire (know how)matured through experience, a lot of hands-on experience. 8
  9. 9. Key WordsSkills,Preparation,Knowledge,Savoir faire (Know-how)Experience, lots of hands-on experience. 9
  10. 10. Clicks do not build Bricks.Bricks are built by negotiating with life, not in a baby-world of « Eldorado » orvideo game scenarios where war is won at the Microsoft Table in 3 D, no bloodspilled, no pain but always in the end :gain.Now, is that conceivable? Gain without pain ? Without negotiation? Thank you for your attention to my lesson 10
  11. 11. Some hints, advices and tipsQualities of a negotiatorFields of negotiationA sample of types of negotiationWhat not to bring to the negotiation tableWinners in a business negotiationThe myth of www vs. the reality of WwW or WL 11
  12. 12. Qualities of a one-in-class negotiator my definition Preparation Facts & Figures at the “tip-of-your-fingers” Determine for yourself –before acting - what you will doWhen acting, stick closely to what you determined you would do Flexibility Adaptability Credibility Reliability Punch (not the digestive!) Never expect……always INSPECT Checking , double checking Facts & Figures 12
  13. 13. Qualities of a negotiatorstraight from the mouth ofa one-in-class negotiator (*) Listening Listening Listening(*) Mr. Eric Pernette -Head of Industrial Relations ERDF 13
  14. 14. A word of advise a junior negotiatorFollow the leader, « carry his bag », enter the « big boys club » and become part of a negotiation session as a listener 14
  15. 15. A sample of types of negotiations Commercial agreements (buy & sell) Service contracts Partnerships Joint ventures Mergers and Acquisitions Industrial relations with Trade Unions A political agreement Your kids demands Your salary !Everything and Anything that is negotiablekeeping in mind that Anything & Everything 15 is negotiable
  16. 16. 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 16
  17. 17. Winners in a business negotiation Your Company, You, the Other Company (by order of importance) Main Your company (*) Secondary Your company and you Possible Both companies and you(*) They pay you !!! 17
  18. 18. First part SubstanceThe beef !!! 18
  19. 19. Keep in mind the followingYou are the center of your negotiating world.Be one in class in class when you negotiate.Those who dare to dare, sort out inventive SOLUTIONS, are SOLUTIONSpragmatic and at the same time able to act in a non-pragmaticfashion if so called for, contribute brilliant SOLUTIONS, are SOLUTIONSmotivated by the aim of reaching a WinWinWin agreement,create SOLUTIONS before the manifestation of the problem,are ,in my view & professional experience, valid negotiators.Key words dare to dare, sort out, contribute, create. 19
  20. 20. Si vis pacem para bellum (Prevent by beign ready)To negotiate you must master and muster Points (Infos) Figures (Data & Numbers) 20
  21. 21. Preparation 21
  22. 22. To negotiate you must master and muster steps and process What are the steps that you have to follow in order to determine what Data and Info you are should be looking for ? How and where do you scout for, search, identify InfoData ? How do you select, collect, vet/sift through, evaluate and process InfoData which is pertinent to your assignment ? 22
  23. 23. Steps that you should follow in order to determine what Info and Data you are looking for 1. Write down what you understand the Goal of your Team in fullfilling the assignment (the mission) is 2. Write down what you understand the Objectives your Team must reach to fullfill the Goal 3. Write down what you understand your Targets are to reach the Objectives 4. Compare with your Team your definition of Targets , understanding of Team Objectives and Goal of the assigment (the mission) 5. Define, agree, finalize your Team’s Objectives and each Team member’s assigned Targets 6. Engage with your Team the other Team(s) on the definition of the Goal of the Negotiation process, define with them (the Teams) a flexible structured timeline, deadlines, milestones, gate reviews, intermediate check points 7. All Teams present to me (I play the Broker/Project Supervisor role), the commonly role agreed upon  plan of action  process  timeline for the Negotiation Project 23
  24. 24. How and where do you scout for, search and identify InfoDataHow to validate the processMy personal receipt is to start scouting according to : Compilor’s background, skills, experience and quality of InfoData produced (the pedigree and the output) Independence or eventual ties of the Compilor to the Source of the InfoData (conflict of interest) Coverage of topics by Compilor Partial, Global, Detailed, Asymmetrical Credibility of InfoData Is it true ? How can I find out ? Reliability of InfoData Is it up-to-date ? Accuracy of InfoData Is it right ? Where and from Whom can I find out ? Capability of verifying the credibility, reliability and accuracy of InfoData by crisscrossing other Sources and verifying other CompilorsWhere to conduct the processToday’s users favorites are : Wikipedia, 维基百科 ,Badu Baike, Baidu, Hudong, Google,Yahoo, Bing, the WEB, Social forumsMy favorites are : books to acquire, newspapers to inform, Wikipedia to source & to 24inspire , the WEB to find and channel, word of mouth to comment
  25. 25. Keeping in mind the quality of what you may find as well as the limits of what you may be allowed to find datamining search engines (Two examples are hereby listed )A. The user who visits Wikipedia to learn about some subject, to confirm some matter of fact, is rather in the position of a visitor to a public restroom. It may be obviously dirty, so that he knows to exercise great care, or it may seem fairly clean, so that he may be lulled into a false sense of security. What he certainly does not know is who has used the facilities before him. Robert McHenry, former Encyclopædia Britannica editor-in-chiefB. Articles or comments containing the following types of content are removed in some countries:  Pornographic or violent text or images  "Malicious evaluation" of the current national system  Undermine public regulation  Attacks on government institutions and officials  Instigating racial, ethical, religion or regional issues  Propagating "religious cults or feudalistic and superstitious beliefs"  Providing hyperlinks to any of the abovementioned contents 25
  26. 26. Wikipedia content by subject 26
  27. 27. How do you select, collect, vet/sift through, evaluate, process and use InfoData which is pertinent to your assigment ?Never, ever lose sight of the focus of your mission by beign sure that what you are looking at is Pertinent, pertinent, pertinent Factual, factual, factual Simple to understand, short to recap, sharp in its opinions/facts and not idiotic Clean & Clear Clear-cut To the point Understandable for you , for the Team and the General Public, therefore in one word idiot- proof Unequivocal either black or white. No shades of gray ! User-friendly but not simplistic or stupid /childish! 27
  28. 28. Keep in mind the following Its not the effort you put in that counts, what countsis the results you get out from the InfoData 28
  29. 29. Organization 29
  30. 30. Building a TeamYou will build a team according to individual talents, interests, interplay, knowledge ,experience and anything that the team players can bring to the table !Keep in mind - for those of you that know the game of Rugby Football - that players intoday’s game must play ALL roles.That is why Forwards (les Avants) today play also a game as Backs (les Arrières), theFast scorers.Create a sense of multirole in a team that is able in any instance, circumstance, crucialmoment to play a different role that the one that was originally assigned to them .E.g.: If you are good at numbers you will be assigned in the team the number crunching role however you must also play a backup role of another team member in another area of specialty such as Marketing, Intelligence, Data Mining, Speaker, Point, InfoData Processing and Analysis 30
  31. 31. Building a TeamForwards must be at all times 31
  32. 32. Building a Team backups of Backs 32
  33. 33. Building a TeamA good negotiating team must be built around the following missions, functions and relative roles :Mission/FunctionsIntelligence/Data mining SEARCHInfoData and Facts Analysis INFORMATION SCREENINGNumbers crunching DATA PROCESSINGTherefore from the Team must emerge the following Role Players : 1. Point Coordinator, Leader, Interface of Project Broker/Supervisor 2. Speaker Co-coordinator & Spokesperson – Chief Negotiator 3. Intelligence Collecting hearsay, crisscrossing it, vetting it, verifying it, etc… 4. Data mining Gathers the InfoData 5. InfoData Processing Selects the right /useful InfoData 6. InfoData Analysis Uses the InfoData working with Data mining & InfoData Processing as well as Intelligence Team members 7. Marketing/Selling Deploys the Marketing, “jazzes” the Negotiation plan-of- action by preparing Plans A, B, C and elaborating various scenarious 33
  34. 34. Set-up 34
  35. 35. This is the most difficult part for you because you , in mostcases : Are inexperienced Have never negotiated in a business enviroment Are afraid of making mistakes and not looking good with your team playersKeep in mind what this guy once said : 35
  36. 36. “”The only thing we have to fear is fear itself”” USA President (1933-1945) Franklin D. Roosevelt Be prepared Go for it Never take NO for an answer Make mistakes Pick-up the pieces Press onIf you get discouraged get on with your work , that will keep problems off your mind Know when to cut your losses and get out of the game 36
  37. 37. Build you case by identifying and defining your Team’s Needs Wants Would likes Objectives 37
  38. 38. Define a Strategy & a Tactical plan What can I negotiate ? What is negotiable for us and what do I think is negotiable for the Opposite? What is not negotiable for us and what do I sense is not- negotiable for the Opposite ? How far/hard will I carry my arguments in order not to show weakness ? When should I slow down/suspend negotiation ? When should I cut my losses and quit the negotiation ? 38
  39. 39. Prepare Plan A, B, C Plan A MAXthe best result that you want to achieve from the negotiation Plan B In-between Plan C MIN the minimum result that you will settle for in order not to lose money & face 39
  40. 40. MentallyUnderstand the Needs, Wants (possibly theWould likes and, if you are really good, theObjectives) of the Opposite party as well asthe motives that are laying behind 40
  41. 41. Mentally define your idea of your Opposite’s Plan A, B, C Plan A MAX the best result that you belive they want to achieve from the negotiation Plan B In-between Plan C MIN the minimum result that they could settle for in order not to lose face 41
  42. 42. Roll outDelivering the Beef ! 42
  43. 43. Always think Bottom Line.Always keep in mind that full control, knowledge,reactiveness, analysis, and good mathematics (withoutyour 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 43
  44. 44. The Point Person on the team and his/her backup WILL bnefore any negotiation session conduct a “”Dry Run””1. Prepare a script, plan of action, based on Intelligence, InfoData Processing & InfoData Analysis2. Roll it out with the rest of the team playing the role of a sparring partner and sustaining it3. Answer tough questions never taking it personaly4. Train, train, train. Correct, correct, correct. Adapt, Adapt, Adapt. Change if change is required. Modify.5. Show maturity and assume the role and the responsability of the position you both are in6. Restart the process over and over again from 1 to 4 until you both feel you are STIRLING in presentation and UP-To-PAR in DataInfo management!!!!!Key words : Prepare a script, Roll it out, Answer, Train, Correct, Adapt, Change, Modify, Restart the process 44
  45. 45. Keep well impressed in your mind that you have oneand only one chance in negotiating a good agreementIf you miss this opportunity, you may be out.And someone else may be in.You may be off any team. 45
  46. 46. No time for “shape up or ship out” for you. It could be over....for you and the Team ! 46
  47. 47. Second part Form 47
  48. 48. Never make derogatory or overly gratifyingremarks to your negotiating counterpart. 48
  49. 49. Remember never, ever, ever humiliate thenegotiating couterpart.He may and will get retribution one day 49
  50. 50. Always think and build your answer or your nextquestion when your couterpart is talkingListen, think and do your numbers all at thesame time 50
  51. 51. Your answer could be a question 51
  52. 52. Simple advices and How to techniques 52
  53. 53. Always start from economics or economic impactsubjects that are difficult 53
  54. 54. Never Stall.It is a sign of weakness or incompetence orignorance or, worst-case scenario, beingidentified as a P.o.S. or a S.o.B. 54
  55. 55. Always finish one point of negotiation beforemoving to the next oneIt may block a negotiation but it will show yourcommittmentYou will then be viewed as a crediblecounterpart and interface. 55
  56. 56. SummaAlways observe & remember the techniques, thenuances, the skills of your negotiating counterpart.If you do not succeed 100 % , if you have played bythe rules, you may/will/could have a second, thirdopportunity/chance to better your performance,output and result and show your true colours. Good luck and good work! 56