Successful Negotiation thru Relationship Capital (RC)

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Successful Negotiation thru Relationship Capital (RC)

  1. 1. Successful Negotiation thru Relationship Capital (RC) By Rob Peters Standard of Trust, llc www.StandardofTrust.com
  2. 2. Agenda <ul><li>Negotiation in the 21 st Century </li></ul><ul><li>Definition of “Negotiation” </li></ul><ul><li>The Principled Negotiator </li></ul><ul><li>The Negotiation Matrix </li></ul><ul><li>Principled Negotiation is based on TRUST </li></ul><ul><li>Relationship Capital (RC) Measures a Negotiator’s Reputation </li></ul>
  3. 3. A Definition of Negotiation <ul><li>Parties who share the fact that they both have conflicting and common interests </li></ul><ul><li>Willingness to come together and discuss </li></ul><ul><li>A set of positions and underlying needs </li></ul><ul><li>Trade of what they each can control </li></ul><ul><li>Attempt to find an agreement </li></ul><ul><li>A result which is beneficial and acceptable to all. </li></ul>
  4. 4. The Principled Negotiator <ul><li>Strive for commitment to agreement </li></ul><ul><li>In business it is about the negotiation </li></ul><ul><li>Focus on the underlying requirements </li></ul><ul><li>Look at all the options </li></ul><ul><li>Try to pin point the areas of commonality </li></ul><ul><li>Listen </li></ul>
  5. 5. The Negotiation Matrix I Win-You Lose Win-Win I Lose-You Win Lose-Lose
  6. 6. Principled Negotiation is based on Trust <ul><li>authority of your word and the credibility of your actions. </li></ul><ul><li>Agreements are difficult in the absence of mutual respect and reliability. </li></ul><ul><li>A.T Kearney' showed that trust in high-level business alliances is of particular significance. </li></ul><ul><li>A direct correlation exists between trust and profit (Quality of Agreements). </li></ul>
  7. 7. Performance is Determined by Quality of Relationships
  8. 8. If Trust is Important to Negotiation, How do you Develop it? <ul><li>Questions to Ask about You and Your Organization’s negotiating behavior? </li></ul><ul><ul><li>Are You Honest? </li></ul></ul><ul><ul><li>Are You Accountable? </li></ul></ul><ul><ul><li>Are You Responsible? </li></ul></ul><ul><ul><li>Are You Respectful? </li></ul></ul><ul><ul><li>Are You Supportive? </li></ul></ul><ul><ul><li>Are You Trustworthy? </li></ul></ul>
  9. 9. How do You Measure Relationships?
  10. 10. Trust = Relationship Capital (RC) <ul><li>Honesty </li></ul><ul><li>Accountability </li></ul><ul><li>Responsibility </li></ul><ul><li>Respect </li></ul><ul><li>Trustworthy </li></ul><ul><li>Supportive </li></ul>
  11. 11. Would it be reasonable to look at these things in accounting terms? Asset Liability Transaction 1: I commit to sharing my data report during negotiation of business alliance Transaction 2: I deliver the data report to potential alliance partner negotiator 1 2 Respect Accountability Honesty Support
  12. 12. Reputation = Relationship Capital (RC) <ul><li>Today, a select group of Negotiators are earning relationship capital (RC) by learning & mastering industry standards and having their commitments and perceptions scored. </li></ul><ul><li>“ This score is relationship capital (RC) that negotiator’s are using to enhance their reputation one interaction at a time.” </li></ul><ul><li>– Norm Myers, Founder – RNIA.org </li></ul>
  13. 13. Thank You <ul><li>Rob Peters </li></ul><ul><li>Founder </li></ul><ul><li>(M) 708-819-8360 </li></ul><ul><li>www.StandardofTrust.com </li></ul>

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