Your SlideShare is downloading. ×
Negotiation Skills for the Credit Manager
Author/Lecturer <ul><li>DAVID L. OSBURN </li></ul><ul><li>David L. Osburn, MBA is the founder and managing member of David...
<ul><li>NEGOTIATION SKILLS FOR THE CREDIT MANAGER </li></ul><ul><li>I.  WHAT IS NEGOTIATIONS? </li></ul><ul><li>HOW WOULD ...
III. NEGOTIATION INCLUDES VERBAL AND    NON- VERBAL COMMUNICATIONS <ul><ul><ul><li>A.ORAL </li></ul></ul></ul><ul><ul><ul>...
IV. NEGOTIATION SCENARIOS <ul><li>YOU ARE AT TARGET AND YOUR THREE YEAR OLD SEES A DOLL AND WANTS IT NOW! (SHE HAS ALREADY...
V. THE USE OF THE TELEPHONE AS A NEGOTIATION TOOL-   <ul><li>NON- BUSINESS AND BUSINESS  </li></ul><ul><li>TELEPHONE SCENA...
VI.THE TELEPHONE AS A MEANS OF COLLECTING DOLLARS <ul><li>FAIR DEBT COLLECTIONS ACT (HOW HARD CAN YOU PUSH?) </li></ul><ul...
VII.  THE NEGOTIATION PROCESS <ul><li>THE AIDAS MODEL </li></ul><ul><li>A. AWARENESS- CREATE A STARTING OR FOCAL POINT. </...
VIII.  EGO <ul><li>WHAT IS EGO?  </li></ul><ul><li>HOW DO YOU USE EGO IN THE NEGOTIATION PROCESS? </li></ul><ul><li>CAN YO...
IX.  MEDIATION AS PART OF THE   NEGOTIATION PROCESS <ul><li>WHAT IS MEDIATION? </li></ul><ul><li>THE EVOLUTION OF CONFLICT...
X.  NEGOTIATION SKILLS- SOME   FINAL THOUGHTS <ul><li>LACK OF NEGOTIATION SKILLS AS TAUGHT IN BUSINESS SCHOOL.  </li></ul>...
Upcoming SlideShare
Loading in...5
×

Negotiation Skills for the Credit Manager

1,719

Published on

Information on how to effectively negotiate. Includes negotiation scenarios, telephone negotiation, the process of negotiation, etc.

Published in: Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,719
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Transcript of "Negotiation Skills for the Credit Manager"

  1. 1. Negotiation Skills for the Credit Manager
  2. 2. Author/Lecturer <ul><li>DAVID L. OSBURN </li></ul><ul><li>David L. Osburn, MBA is the founder and managing member of David L. Osburn & Associates, LLC that specializes in providing seminars on topics such as finance, accounting, economics, marketing, banking, business law, and management. </li></ul><ul><li>Osburn also functions as the CFO of a multi-state construction company and is an adjunct faculty member of both an accredited MBA program and the accounting department of a community college with over 24 years of teaching experience. Additionally, he administers the American Institute of Banking (AIB) program in the Las Vegas area. </li></ul><ul><li>Osburn’s extensive professional background includes 16 years in banking (commercial lending) including the position of Vice President & Senior Banking Officer and an additional 9 years in related fields. Osburn has an MBA in Finance/Marketing from Utah State University and a BS degree in Finance from Brigham Young University. He is also a graduate of the National Commercial Lending School at the University of Oklahoma. </li></ul><ul><li>David L. Osburn & Associates, LLC </li></ul><ul><li>A Business Training & Contract CFO Firm </li></ul><ul><li>David L. Osburn, MBA </li></ul><ul><li>Managing Member </li></ul><ul><li>7521 Enchanted Hills Ct. </li></ul><ul><li>Las Vegas, Nevada 89129 </li></ul><ul><li>Direct: (702) 655-1187 </li></ul><ul><li>Fax: (702) 382-2298 </li></ul><ul><li>E-Mail: [email_address] </li></ul><ul><li>Web: dlosburn.com </li></ul>
  3. 3. <ul><li>NEGOTIATION SKILLS FOR THE CREDIT MANAGER </li></ul><ul><li>I. WHAT IS NEGOTIATIONS? </li></ul><ul><li>HOW WOULD YOU DEFINE NEGOTIATION? </li></ul><ul><li>II. NEGOTIATION IS A COMMUNICATIVE INTERACTION BETWEEN </li></ul><ul><li>TWO HUMANS </li></ul><ul><li> SENDER---- COMMUNICATION CHANNEL---- RECEIVER </li></ul><ul><li> (ENCODES) “ ROADBLOCK” (DECODES) </li></ul>
  4. 4. III. NEGOTIATION INCLUDES VERBAL AND NON- VERBAL COMMUNICATIONS <ul><ul><ul><li>A.ORAL </li></ul></ul></ul><ul><ul><ul><li>B.WRITTEN </li></ul></ul></ul><ul><ul><ul><li>C.NON-VERBAL (USE OF BODY LANGUAGE) </li></ul></ul></ul><ul><ul><ul><li>D.ELECTRONIC </li></ul></ul></ul><ul><ul><ul><li>THE USE OF NEGOTIATIONS IN EVERYDAY LIFE- </li></ul></ul></ul><ul><ul><ul><li>NON- BUSINESS AND BUSINESS </li></ul></ul></ul><ul><ul><ul><li>NON-BUSINESS LIFE </li></ul></ul></ul><ul><ul><ul><li>EX. TODDLER </li></ul></ul></ul><ul><ul><ul><li>EX. TEENAGER </li></ul></ul></ul><ul><ul><ul><li>EX. OLDER ADULT </li></ul></ul></ul>
  5. 5. IV. NEGOTIATION SCENARIOS <ul><li>YOU ARE AT TARGET AND YOUR THREE YEAR OLD SEES A DOLL AND WANTS IT NOW! (SHE HAS ALREADY STARTED TO SCREAM) </li></ul><ul><li> WHAT DO YOU DO? </li></ul><ul><li>YOUR TEENAGE DAUGHTER WANTS TO GO OUT WITH HER FRIENDS AND ATTEND A FUNCTION THAT WILL LAST UNTIL 1AM? (SHE IS 14 YEARS OLD). </li></ul><ul><li> WHAT DO YOU DO? </li></ul><ul><li>YOUR GREAT-UNCLE NEEDS TO RELOCATE TO AN </li></ul><ul><li>ASSISTED LIVING SITUATION BUT REFUSES? </li></ul><ul><li> WHAT DO YOU DO? </li></ul><ul><li>BUSINESS LIFE </li></ul><ul><li> EX. SALES </li></ul><ul><li> EX. RENEWING ESTABLISHED CONTRACT </li></ul><ul><li> EX. BUDGET NEGOTIATION </li></ul><ul><li>YOUR LARGEST COMMISSION FOR THE YEAR IS BASED UPON YOUR ABILITY TO CLOSE THE NEXT SALE. (YOUR CLIENT IS KNOWN FOR HIS “UNDERHANDED” NEGOTIATION TACTICS). </li></ul><ul><li> WHAT DO YOU DO? </li></ul><ul><li>YOUR MAIN CLIENT IS PROPOSING TO RENEW THE CONTRACT PRICE AT A LEVEL THAT WILL CAUSE YOUR DEPARTMENT TO LOSE MONEY. </li></ul><ul><li> WHAT DO YOU DO? </li></ul><ul><li>YOUR DIVISION MANAGER WANTS YOU TO SHAVE 20% OFF YOUR UPCOMING ANNUAL BUDGET. </li></ul><ul><li> WHAT DO YOU DO? </li></ul>
  6. 6. V. THE USE OF THE TELEPHONE AS A NEGOTIATION TOOL- <ul><li>NON- BUSINESS AND BUSINESS </li></ul><ul><li>TELEPHONE SCENARIOS </li></ul><ul><li>NON-BUSINESS: </li></ul><ul><li>A.YOU ARE ON THE PHONE WITH YOUR TEENAGER AND HE REQUESTS TO STAY FOR ANOTHER HOUR AT THE MALL. </li></ul><ul><li>WHAT DO YOU DO? </li></ul><ul><li>B.YOUR BROTHER-IN-LAW IS ON THE PHONE AND IS ASKING TO MOVE IN WITH YOU FOR A COUPLE OF MONTHS UNTIL HE CAN GET ESTABLISHED. </li></ul><ul><li>WHAT DO YOU DO? </li></ul><ul><li>BUSINESS LIFE: </li></ul><ul><li>A.YOUR MAIN CUSTOMER IS ON THE PHONE AND WANTS YOU TO WAIVE $50,000 IN LATE FEES, CHARGES, ETC. </li></ul><ul><li>WHAT DO YOU DO? </li></ul><ul><li>B.YOUR WORST CUSTOMER IS ON THE PHONE AND WANTS YOU TO GIVE THEM AN ADDITIONAL 30 DAYS ON A 75 DAY AGED INVOICE. </li></ul><ul><li>WHAT DO YOU DO? </li></ul>
  7. 7. VI.THE TELEPHONE AS A MEANS OF COLLECTING DOLLARS <ul><li>FAIR DEBT COLLECTIONS ACT (HOW HARD CAN YOU PUSH?) </li></ul><ul><li>THE USE OF SILENCE </li></ul><ul><li>MEETING YOUR CLIENT HALF-WAY, PART OF THE </li></ul><ul><li>WAY, ALL THE WAY? </li></ul><ul><li>MAKE THE END RESULT A “WIN-WIN” SITUATION: </li></ul><ul><li>THE COVEY CONCEPT </li></ul>
  8. 8. VII. THE NEGOTIATION PROCESS <ul><li>THE AIDAS MODEL </li></ul><ul><li>A. AWARENESS- CREATE A STARTING OR FOCAL POINT. </li></ul><ul><li>B. INTEREST- CREATE A DESIRE FOR YOUR POSITION. </li></ul><ul><li>C. DESIRE- CREATE A NEED FOR YOUR POSITION (BASIC </li></ul><ul><li> MARKETING- FIND A COMMON NEED AND THEN </li></ul><ul><li> FULFILL IT!) </li></ul><ul><li>D. ACTION- CREATE A RESPONSE </li></ul><ul><li>E. SATISFACTION- CREATE A POSITIVE OUTCOME </li></ul><ul><li> EMPATHY </li></ul><ul><li>WHAT IS EMPATHY? (WALKING IN SOMEONE ELSE’S MOCCASINS) </li></ul><ul><li>HOW DO YOU USE EMPATHY IN THE NEGOTIATION PROCESS? </li></ul><ul><li>DON’T MAKE THE OPPOSING SIDE FEEL SORRY FOR YOU, BUT ALLOW THEM TO SEE (FEEL) YOUR POSITION! </li></ul>
  9. 9. VIII. EGO <ul><li>WHAT IS EGO? </li></ul><ul><li>HOW DO YOU USE EGO IN THE NEGOTIATION PROCESS? </li></ul><ul><li>CAN YOU OVERUSE EGO IN THE NEGOTIATION PROCESS? </li></ul><ul><li>REMEMBER MASLOW’S HIERARCHY OF NEEDS </li></ul>
  10. 10. IX. MEDIATION AS PART OF THE NEGOTIATION PROCESS <ul><li>WHAT IS MEDIATION? </li></ul><ul><li>THE EVOLUTION OF CONFLICT RESOLUTION: LAWSUIT--- ARBITRATION--- MEDIATION </li></ul>
  11. 11. X. NEGOTIATION SKILLS- SOME FINAL THOUGHTS <ul><li>LACK OF NEGOTIATION SKILLS AS TAUGHT IN BUSINESS SCHOOL. </li></ul><ul><li>WE HAVE THE POWER TO NEGOTIATE AND MAKE “CORRECT” DECISIONS! </li></ul>

×