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What is Negotiation? ...

What is Negotiation?
Features of Negotiation
Why Negotiate ?
Types of Negotiation
Distributive Vs Integrative Negotiation
Negotiation Process
BATNA
Bargaining Zone Model of Negotiation
Negotiating Behavior
Issues in Negotiation
Third party Negotiations
How to achieve an Effective Negotiation
Negotiation Tips

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  • Day-to-day / Managerial Negotiations Such types of negotiations are done within the organization and are related to the internal problems in the organization. It is in regards to the working relationship between the groups of employees. Usually, the manager needs to interact with the members at different levels in the organization structure. For conducting the day-to-day business, internally, the superior needs to allot job responsibilities, maintain a flow of information, direct the record keeping and many more activities for smooth functioning. All this requires entering into negotiations with the parties internal to the organization.
  • Commercial NegotiationsSuch types of negotiations are conducted with external parties. The driving forces behind such negotiations are usually financial gains. They are based on a give-and-take relationship. Commercial negotiations successfully end up into contracts. It relates to foregoing of one resource to get the other.
  • Legal Negotiations These negotiations are usually formal and legally binding. Disputes over precedents can become as significant as the main issue. They are also contractual in nature and relate to gaining legal ground.
  • This type of manager must learn to be more collaborative. Autocratic managers have a tendency to miss seeing the big picture. When these types of managers fail to negotiate effectively, the results of their efforts often suffer. While autocratic types may believe they are skilled negotiators, they often are not because they lack the ability to listen and to empathize.
  • Since negotiation often implies conflict (something these types of managers avoid at all costs), it is critical for them to take responsibility for forcing a certain amount of compromise. This is the only way they will be able to lead others effectively.
  • Highly Brill Leisure Center has hired you to help them with their marketing decision making. Perform a SWOT analysis on Highly Brill Leisure Center, based upon the following issues:1.The Center is located within a two-minute walk of the main bus station, and is a fifteen-minute ride away from the local railway station.2.There is a competition standard swimming pool; although it has no wave machines or whirlpool equipment as do competing local facilities.3.It is located next to one of the largest shopping centers in Britain.4.It is one of the oldest centers in the area and needs some cosmetic attention.5.Due to an increase in disposable income over the last six years, local residents have more money to spend on leisure activities.6.There has been a substantial decrease in the birth rate over the last ten years.7.In general people are living longer and there are more local residents aged over fifty-five now than ever before.8.After a heated argument with the manager of a competing leisure center, the leader of a respected local scuba club is looking for a new venue.9.The local authority is considering privatizing all local leisure centers by the year 2000.10.Press releases have just been issued to confirm that Highly Brill Leisure Center is the first center in the area to be awarded quality assurance standard BS EN ISO 9002.11.A private joke between staff states that if you want a day-off from work that you should order a curry from the Center's canteen, which has never made a profit.12.The Center has been offered the latest sporting craze.13.Highly Brill Leisure Center has received a grant to fit special ramps and changing rooms to accommodate the local disabled.14.It is widely acknowledged that Highly Brill has the best-trained and most respected staff of all of the centres in the locality
  • Negotiation activity_charity
  • Established rapport and common goals?Probed for understanding of beliefs, goals, win-win options, and hidden stakeholder motivators? Paraphrased for confirmation/affirmation?Analysed outcomes and risks?Summarized what was agreed on, and next steps?If stalled, returned to a fundamental that was agree on?Built on this common ground?Avoided emotional responses (even if insulted)?Considered interim options (or postponement) if undesirable outcome was imminent, or key info missing?
  • Anticipate compromise. You should expect to make concessions and plan what they might be. Of course, the other side is thinking the same, so never take their first offer. Even if it's better than you'd hoped for, practice your best look of disappointment and politely decline. You never know what else you can get. Offer and expect commitment. The glue that keeps deals from unraveling is an unshakable commitment to deliver. You should offer this comfort level to others. Likewise, avoid deals where the other side does not demonstrate commitment. Don't absorb their problems. In most negotiations, you will hear all of the other side's problems and reasons they can't give you what you want. They want their problems to become yours, but don't let them. Instead, deal with each as they come up and try to solve them. If their "budget" is too low, for example, maybe there are other places that money could come from. Stick to your principles. As an individual and a business owner, you likely have a set of guiding principles — values that you just won't compromise. If you find negotiations crossing those boundaries, it might be a deal you can live without. Close with confirmation. At the close of any meeting — even if no final deal is struck — recap the points covered and any areas of agreement. Make sure everyone confirms. Follow-up with appropriate letters or emails. Do not leave behind loose ends.

Mastering negotiation skills Presentation Transcript

  • 1. Negotiation skills - Gihan Aboueleish GihanPrepared By : Presented By: TARINI- 41002Aboueleish SACHIN- 41001
  • 2. Contents • What is Negotiation? • Features of Negotiation • Why Negotiate ? • Types of Negotiation • Distributive Vs Integrative Negotiation • Negotiation Process Negotiation skills - Gihan Aboueleish • BATNA • Bargaining Zone Model of Negotiation • Negotiating Behavior • Issues in Negotiation • Third party Negotiations • How to achieve an Effective Negotiation • Negotiation Tips
  • 3. “Change theway you look atthings, and thethings youlook at Negotiation skills - Gihan Aboueleishchange ”
  • 4. You can’t sail anywhere until you learn which way the wind wants to blow Negotiation skills - Gihan Aboueleish
  • 5. What Is Negotiation ? • The word "negotiation" originated from the Latin expression, "negotiatus", which means "to carry on business". • The process of conferring to arrive at an agreement between different parties, each with their own interests and preferences. Negotiation skills - Gihan Aboueleish • “A give-and-take decision-making process involving interdependent parties with different preferences.”
  • 6. Defined : Negotiating is the process of communicating back and forth, for the purpose of reaching a joint agreement about differing needs or ideas. It is a collection of behaviours that involves communication, sales, marketing, psychology, sociology, assertiveness and conflict resolution. Negotiation skills - Gihan Aboueleish A negotiator may be a buyer or seller, a customer or supplier, a boss or employee, a business partner, a diplomat or a civil servant. On a more personal level negotiation takes place between spouse’s friends, parents or children.
  • 7. Features Of Negotiation• Minimum two parties• Predetermined goals• Expecting an outcome• Resolution and Consensus Negotiation skills - Gihan Aboueleish• Parties willing to modify their positions• Parties should understand the purpose of negotiation
  • 8. Why Do We Negotiate ? • To reach an agreement • To beat the opposition • To compromise Negotiation skills - Gihan Aboueleish • To settle an argument • To make a point
  • 9. Types Of Negotiation Distributive Negotiation Integrative Negotiation Negotiation skills - Gihan Aboueleish
  • 10. Distributive Negotiation Parties compete over the distribution of a fixed sum of value. The key question in a distributed negotiation is, “Who will claim the most value?” A gain by one side is made at the expanse of other. Negotiation skills - Gihan Aboueleish The Seller’s goal is to negotiate as high a price as possible; the Buyer’s goal is to negotiate as low a price as possible. Thus, the deal is confined: there are not much opportunities for creativity or for enlarging the scope of the negotiation.
  • 11. Integrative Negotiation In Integrative Negotiation, parties cooperate to achieve maximize benefits by integrating their interests into an agreement. This is also known as a win-win negotiation. • The key questions is: “How can the resource best be utilized?” Integrative negotiations tend to occur in following situations: Negotiation skills - Gihan Aboueleish • Structuring of complex long-term Strategic Relationships or other collaborations. • When the deal involves many financial and non-financial terms. In an integrative negotiation,, there are many items and issues to be negotiated, and the goal of each side is to “create” as much value as possible for itself and the other side.
  • 12. Distributive Versus Integrative NegotiationsCharacteristic Distributive Integrative Outcome Win-lose Win-win Motivation Individual gain Joint and individual gain Different but not always Negotiation skills - Gihan Aboueleish Interests Opposed Opposite Relationship Short-term Longer or Short-termIssues involved Single MultipleAbility to make Not Flexible Flexible trade-offs Solution Not creative Creative
  • 13. Negotiation Process PREPARATION INFORMATION SHARING Negotiation skills - Gihan Aboueleish BARGAINING FINALIZING THE DEAL
  • 14. BATNA BATNA is ; Best Alternative To Negotiation skills - Gihan Aboueleish Negotiated Agreement
  • 15. Why BATNAS Matter• BATNAs tell you when to accept and when to reject an agreement • When a proposal is better than your BATNA: Negotiation skills - Gihan Aboueleish ACCEPT IT • When a proposal is worse than your BATNA: REJECT IT
  • 16. Negotiation: A Counter-intuitive Process  Title comes from remarks made by participants at some of my negotiation workshops “that’s the opposite of what I do” “I know I should do that, but I find myself doing exactly the opposite” “Its counter-intuitive” Negotiation skills - Gihan Aboueleish  What are people saying ? • They recognize the prudence of a particular strategy • But they find it difficult to implement it • Their natural inclination is to do the opposite of what they recognise is the prudent strategy
  • 17. Intuitive – Counter-intuitive What are  some of the intuitive things we do in a negotiation  the counter-intuitive thing we might consider as an alternative ?Automatic gear Shift into manualFocus on Positions Focus on interestsDive into the negotiation Defer the negotiation to a time of our own choosing, gather information firstWhen our proposals are rejected, Ask why our proposal doesn’t work, andjustify and defend them gather informationWhen a proposal is made to us Instead of rejecting, ask why their proposalthat is unacceptable, rejection is important, and gather information 17
  • 18. Basic Principles Common To All Forms OfNegotiation There are minimum 2 parties involved in the negotiation process. There exists some common interest, either in the subject matter of the negotiation or in the negotiating context, that Negotiation skills - Gihan Aboueleish puts or keeps the parties in contact. Though the parties have the same degree of interest, they initially start with different opinions and objectives which hinders the outcome in general.
  • 19.  In the beginning, parties consider that negotiation is a better way of trying to solve their differences. Negotiation skills - Gihan Aboueleish Each party is under an impression that there is a possibility of persuading the other party to modify their original position, as initially parties feel that they shall maintain their opening position and persuade the other to change.
  • 20.  During the process, the ideal outcome proves unattainable but parties retain their hope of an acceptable final agreement. Each party has some influence or power – real or Negotiation skills - Gihan Aboueleish assumed – over the other’s ability to act. The process of negotiation is that of interaction between people – usually this is direct and verbal interchange.
  • 21. Characteristics Of An Effective Negotiator He should be a good learner and observer. Should know the body language of the people at the negotiation process. Should be open and flexible and yet firm. Negotiation skills - Gihan Aboueleish Exercise great patience, coolness and maturity. Should possess leadership qualities.
  • 22. • Should control emotions and not show his weaknesses.• Should bargain from the position of strength.• Should know and anticipate the pros and cons of his each move and its repercussions. Negotiation skills - Gihan Aboueleish• Should know how to create the momentum for the negotiations and must know when to exit and where to exit by closing the talks successfully.
  • 23. • Should build trust and confidence.• Should be confident and optimist.• Should have clear cut goals and objectives.• If necessary, he should provide a face saving formula for his counter party.• Should be able to grasp the situation from many Negotiation skills - Gihan Aboueleish dimensions.• Should know human psychology and face reading
  • 24. • Should not be a doubting Thomas.• Should plan and prepare thoroughly with relevant data and information to avoid blank mind in the process.• Should radiate energy and enthusiasm and Negotiation skills - Gihan Aboueleish must be in a position to empathize with his opponents.• Should be a patient listener.
  • 25. How To Develop These Skills And Use ThemEffectively ?• what negotiation means and the various forms it can take that negotiating, in the fullest sense, means forging long-term relationships the role that the individual personalities play in Negotiation skills - Gihan Aboueleish negotiating that you must take a variety of approaches to negotiation, since no single set of principles will suffice in all circumstances
  • 26. Negotiation Skills Style TestNegotiation skills - Gihan Aboueleish
  • 27. Negotiation skills - Gihan AboueleishTypes Of Negotiation In Organizations
  • 28. Managerial Negotiations Types Parties Involved Examples 1. Different levels of 1. Negotiation forDay-to-day/ Management pay, terms andManagerial Negotiation skills - Gihan working AboueleishNegotiations 2. In between colleagues conditions. 3. Trade unions 2. Description of the job and 4. Legal advisers fixation of responsibility. 3. Increasing productivity.
  • 29. Commercial Negotiations Types Parties Involved ExamplesCommercial 1. Management 1. Striking a contract with Negotiation skills - Gihan AboueleishNegotiations 2. Suppliers the customer. 3. Government 2. Negotiations for the 4. Customers price and quality of 5. Trade unions goods to be 6. Legal advisors purchased. 7. Public 3. Negotiations with financial institutions as regarding the availability of capital
  • 30. Legal Negotiations Types Parties Involved Examples 1.Government 1. Adhering to the laws of Negotiation skills - GihanLegal Aboueleish 2.ManagementNegotiations the local and 3.Customers national government.
  • 31. How To Plan Your Negotiation AgendaNegotiation skills - Gihan Aboueleish
  • 32. Preparing For A Successful Negotiation…  Depending on a scale of disagreement, the level of preparation might be appropriate for conducting the successful negotiation. Negotiation skills - Gihan Aboueleish  For a small disagreements, excessive preparation could be counter-productive because it do takes time which is better focused in reaching the team goals.
  • 33. If the major disagreement needed to be resolved, preparing thoroughly for that is required, and worthwhile.Think through following points before you could start Negotiation skills - Gihan Aboueleish negotiating. • Goals: What you want to get out from the negotiation? What do you expect from the other person?
  • 34.  What you and the other person have which you can trade? Negotiation skills - Gihan Aboueleish • What do you and the other person have so that the other wants it? • What might you both be prepared to give away?
  • 35. • Alternatives: • If you do not reach the agreement with him/her, what alternatives you have? • Are these things good or bad alternatives? Negotiation skills - Gihan Aboueleish • How much it matters if you do not reach the agreement? • Will the failure to reach the agreement cut out future opportunities? • What alternatives may the other person have?
  • 36. • The relationship: • What is a history of relationship? • Can or should this history impact negotiation? Negotiation skills - Gihan Aboueleish • Will there be any of the hidden issues that might influence negotiation? • How you will handle these?
  • 37. • Expected outcomes: • What outcome would peoplebe expecting from the Negotiation skills - Gihan Aboueleishnegotiation? • What was the outcome in the past, and what precedents been set?
  • 38. • The Consequences: • What are the consequences of winning or losing this negotiation by Negotiation skills - Gihan Aboueleish you? • What are the consequences of winning or loosing by the other person?
  • 39. Power: •• Who has the power in the relationship?• Who do controls the resources? Negotiation skills - Gihan Aboueleish• Who stands to lose most if agreement is not been reached?• What power does other person have to deliver which you do hope for?
  • 40. • Possible Solutions:• Based on all considerations, what possible Negotiation skills - Gihan Aboueleish compromises might be there?
  • 41. Negotiating And Long-term RelationshipsGood negotiators are the people who understand • how to build key relationships Negotiation skills - Gihan Aboueleish • how to identify what people need • how to give them what they need and • how to get what they want in return, allin a way that seems effortless.
  • 42. Negotiating And Individual Personalities  Autocratic managers typically hold the view that they are going to get what they want when they interact with subordinates, because their inherent authority Negotiation skills - Gihan Aboueleish precludes the need to negotiate.  These managers do not realize that, in the process of handing out orders, they are engaged in a kind of one- sided negotiation that can antagonize others, with the result that the tasks they wish to see completed may be carried out improperly or not at all.
  • 43. The Accommodating manager is more concerned with what others want than with their own needs. Negotiation skills - Gihan AboueleishIn order to avoid conflict, they do not negotiate at all and often end up overriding their own interests.
  • 44. B.A.T.N.ANegotiation skills - Gihan Aboueleish
  • 45. The Negotiation ProcessBATNAThe Best Alternative To a Negotiation skills - Gihan AboueleishNegotiated Agreement; thelowest acceptable value(outcome) to an individual for anegotiated agreement.
  • 46. Your “BATNA “ is the only standard which can protect you both from accepting terms that are too unfavourable and from rejecting terms it would be Negotiation skills - Gihan Aboueleish in your interest to accept.”In the simplest terms, if the proposed agreement is better than your “BATNA”, then you should accept it. If the agreement is not better than your “BATNA” , then you should reopen negotiations.
  • 47. Where Do Use This Skill? • Everything is negotiated. • Family and personal • “ Where should we go for dinner?” • “ Can I borrow the car?” Negotiation skills - Gihan Aboueleish • Academic research • “ Fund my project.” • “ Publish my paper.” • Business ventures • “ I want a raise.” • “ Invest in my company.” • “ Pay me a license fee or I’ll sue you.”
  • 48. Determining Your BATNABATNAs are not always readily apparent. Fisher and Ury outline a simple process for determining your BATNA: Negotiation skills - Gihan Aboueleish • develop a list of actions you might conceivably take if no agreement is reached; • improve some of the more promising ideas and convert them into practical options; and • select, tentatively, the one option that seems best.
  • 49.  A persons go for car purchase. [To negotiate with showroom sales man for lesser price] Negotiation skills - Gihan Aboueleish The car owner is not agreeing for the lesser price. Than customer can ask for Radial tires[best alternative] with any increase in price further.
  • 50. CASE STUDYNegotiation skills - Gihan Aboueleish
  • 51. Case Study – Application 01• Highly Brill Leisure Centre has hired you to help them with their marketing decision making. Perform a SWOT analysis on Highly Brill Leisure Negotiation skills - Gihan Aboueleish Centre, based upon the following issues:
  • 52. CASE STUDY – Application 02A community discovers that its water is being polluted by the discharges of a nearby factory.Community leaders first attempt to negotiate a Negotiation skills - Gihan Aboueleish clean-up plan with the company, but the business refuses to voluntarily agree on a plan of action that the community is satisfied with.
  • 53. Issues In NegotiationThe Role of Mood & Personality Traits in Negotiation; • Positive moods positively affect negotiations • Traits do not appear to have a significantly Negotiation skills - Gihan Aboueleish direct effect on the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiation effectiveness)
  • 54. Gender Differences In Negotiations; • Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. Negotiation skills - Gihan Aboueleish • Men and women with similar power bases use the same negotiating styles. • Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s.
  • 55. The Importance of BATNAsOnce parties establish a BATNA, they must then compare the costs and benefits of the BATNA to all of the settlement options Negotiation skills - Gihan Aboueleish on the table.Ask, "Whats it going to cost you if you dont?"
  • 56. Negotiation StrategiesNegotiation skills - Gihan Aboueleish
  • 57. • Most of the negotiation literature focuses on two strategies, although they call them by different names. Negotiation skills - Gihan Aboueleish• One strategy is interest-based(or integrative, or cooperative) bargaining, while the other is positional (or distributive or competitive) bargaining.
  • 58. Interest-based Bargaining /Win-winBargaining• Integrative bargaining in which parties collaborate to find a “win-win" solution to Negotiation skills - Gihan Aboueleish their dispute.• This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants.• Interests include the needs, desires, concerns, and fears important to each side.
  • 59. Positional BargainingPositional bargaining is one that involves holding on to a fixed idea, or position, of Negotiation skills - Gihan Aboueleish what you want and arguing for it and it alone, regardless of any underlying interests.
  • 60. Negotiation skills - Gihan Aboueleish
  • 61. Negotiation Skills Style TestNegotiation skills - Gihan Aboueleish
  • 62. Exercise #1Roles : Rita, a 15 year old girl. The Observer becomesRita’s parent. Others are Observers to record use/abuseof “win/win” techniques. Negotiation skills - Gihan AboueleishBackground: Rita is calling home from a payphone onHwy 401 to tell her parent she is hitch-hiking toHollywood to be a movie star. She has no money, is alittle afraid, and secretly wants to go to drama school.The parent is worried about Rita being out after curfew.Parent picks up the ‘phone, and has 3 minutes to effecta “win-win” approach before the payphone times out.
  • 63. Exercises #2Background: Suresh has a Programmer off sick, and wants to negotiate two weeks of Kunal’s time to work on the Company’s most important project immediately, because Kunal is the best Negotiation skills - Gihan Aboueleish programmer, and knows the tasks. Delays may affect everyone’s bonus. Kunal’s Manager is concerned the loss of Kunal will mean he will not be able to complete tasks on another project their department is committed to deliver (requiring one week of work in the next 3 weeks), because Suresh has a reputation of over-utilizing resources (and padding their schedule contingency). Other commitments will also need juggling.
  • 64. Exercise #3Background: Raima is not using the carthis weekend, but is concerned the goodfriend is a fast driver. The friend is Negotiation skills - Gihan Aboueleishgenerous, and has done Raima severalfavors for Raima, including a recentbirthday gift. Time: 3 minutes
  • 65. Use….Competition When quick, decisive action is vital (in emergencies); on important issues. Where unpopular actions need implementing (in cost Negotiation skills - Gihan Aboueleish cutting, enforcing unpopular rules, discipline). On issues vital to the organization’s welfare. When you know you’re right. Against people who take advantage of noncompetitive behavior.
  • 66. Use …..Collaboration  To find an integrative solution when both sets of concerns are too important to be compromised.  When your objective is to learn.  To merge insights from people with different Negotiation skills - Gihan Aboueleish perspectives.  To gain commitment by incorporating concerns into a consensus.  To work through feelings that have interfered with a relationship.
  • 67. Use….Avoidance  When an issue is trivial, or more important issues are pressing.  When you perceive no chance of satisfying your concerns.  When potential disruption outweighs the benefits of Negotiation skills - Gihan Aboueleish resolution.  To let people cool down and regain perspective.  When gathering information supersedes immediate decision.  When others can resolve the conflict effectively.  When issues seem tangential or symptomatic of other issues.
  • 68. Use….Accommodation ;  When you find you’re wrong and to allow a better position to be heard.  To learn, and to show your reasonableness.  When issues are more important to others than to yourself and to satisfy others and maintain Negotiation skills - Gihan Aboueleish cooperation.  To build social credits for later issues.  To minimize loss when outmatched and losing.  When harmony and stability are especially important.  To allow employees to develop by learning from mistakes.
  • 69. Use…compromise;  When goals are important but not worth the effort of potential disruption of more assertive approaches.  When opponents with equal power are committed Negotiation skills - Gihan Aboueleish to mutually exclusive goals.  To achieve temporary settlements to complex issues.  To arrive at expedient solutions under time pressure.  As a backup when collaboration or competition is unsuccessful.
  • 70. Negotiation skills - Gihan AboueleishUnderstanding Your Style Of Negotiation
  • 71. • Behaviour• Motivation:• Assertive-directing, Altruistic-nurturing, Negotiation skills - Gihan Aboueleish Flexible-cohering• Personal strengths• Personal weaknesses
  • 72. Techniques for Better NegotiationNegotiation skills - Gihan Aboueleish
  • 73. 1) Prepare, prepare, prepare2) Pay attention to timing3) Leave behind your ego.4) Ramp up your listening skills. Negotiation skills - Gihan Aboueleish5) If you dont ask, you dont get
  • 74. 6. Anticipate compromise7. Offer and expect commitment8. Dont absorb their problems9. Stick to your principles Negotiation skills - Gihan Aboueleish10. Close with confirmation.
  • 75. 01- Prepare, Prepare, Prepare Pay attention to timing. Timing is important in any negotiation. Sure, you must know what to Negotiation skills - Gihan Aboueleish ask for. But be sensitive to when you ask for it. There are times to press ahead, and times to wait. When you are looking your best is the time to press for what you want. But beware of pushing too hard and poisoning any long-term relationship.
  • 76. - Pay Attention To Timing• Pay attention to timing. Timing is important in any negotiation. Sure, you must know what to ask for. But be sensitive to when you ask for it. There are times to press ahead, and times to Negotiation skills - Gihan Aboueleish wait. When you are looking your best is the time to press for what you want. But beware of pushing too hard and poisoning any long-term relationship.
  • 77. 03- Leave Behind Your Ego. • Leave behind your ego. The best negotiators either dont care or dont show they care about who gets credit for a successful deal. Their talent is in making Negotiation skills - Gihan Aboueleish the other side feel like the final agreement was all their idea.
  • 78. 04 - Ramp Up Your Listening Skills.  Ramp up your listening skills. The best negotiators are often quiet listeners who patiently let others have the floor while they make their case. They never interrupt. Encourage the other side to talk Negotiation skills - Gihan Aboueleish first. That helps set up one of negotiations oldest maxims: Whoever mentions numbers first, loses. While thats not always true, its generally better to sit tight and let the other side go first. Even if they dont mention numbers, it gives you a chance to ask what they are thinking.
  • 79. -if You Dont Ask, You Dont Get• If you dont ask, you dont get. Another tenet of negotiating is "Go high, or go home." As part of your preparation, define your highest justifiable price. As Negotiation skills - Gihan Aboueleish long as you can argue convincingly, dont be afraid to aim high. But no ultimatums, please. Take-it-or-leave-it offers are usually out of place.
  • 80. 06- Anticipate Compromise.• Anticipate compromise. You should expect to make concessions and plan what they might be. Of course, the other side is thinking the same, so Negotiation skills - Gihan Aboueleish never take their first offer. Even if its better than youd hoped for, practice your best look of disappointment and politely decline. You never know what else you can get.
  • 81. 07- Offer And Expect Commitment.• Offer and expect commitment. The glue that keeps deals from unravelling Negotiation skills - Gihan Aboueleish is an unshakable commitment to deliver. You should offer this comfort level to others. Likewise, avoid deals where the other side does not demonstrate commitment.
  • 82. Dont Absorb Their Problems. • Dont absorb their problems. In most negotiations, you will hear all of the other sides problems and reasons they cant give you what Negotiation skills - Gihan Aboueleish you want. They want their problems to become yours, but dont let them. Instead, deal with each as they come up and try to solve them. If their "budget" is too low, for example, maybe there are other places that money could come from.
  • 83. Stick To Your Principles.• Stick to your principles. As an individual and a business owner, you likely have a set Negotiation skills - Gihan Aboueleish of guiding principles — values that you just wont compromise. If you find negotiations crossing those boundaries, it might be a deal you can live without.
  • 84. Close with confirmation.• Close with confirmation. At the close of any meeting — even if no final deal is struck — recap the points covered and any Negotiation skills - Gihan Aboueleish areas of agreement. Make sure everyone confirms. Follow-up with appropriate letters or emails. Do not leave behind loose ends.
  • 85. Negotiation skills - Gihan Aboueleish
  • 86. • Speak more quietly than them.• Have more space in between your words than them.• If they interrupt, pause for a few seconds after Negotiation skills - Gihan Aboueleish they finish.• Be critical of foul language.• Do not rise to a bait if they attack or blame you.• Ignore all threats.
  • 87. Handling Emotions Emotional Challenges Recommended Response Anger/exasperation Allow venting. Probe for why Insulted What wouldn’t be insulting? Guilt Focus on issues Negotiation skills - Gihan Aboueleish False flattery Re-focusTips:•Don’t lose your cool .•Try to defuse with acknowledgement, empathy, patience,impartiality.•Consider dealing with less emotional issues first•Know your own “Hot Buttons”•Practice
  • 88. Know Your Hot ButtonsExercise: List the last 3 times you felt someone pressedyour “Hot Button”.Subject Who pushed Why did you feel Next time I Negotiation skills - Gihan Aboueleishdiscussed your buttons? manipulated? will…..
  • 89.  Reachnegotiate?So why an agreement Get the better of the opposition Negotiation skills - Gihan Aboueleish Compromise Settle a dispute Make a point
  • 90. Negotiation Styles1. competitive 2. collaborative Negotiation skills - Gihan Aboueleish3. compromising 4. avoiding 5. accommodating
  • 91. Key steps In writing• Speed•  Communicate Enforce• clearly  Confidence Close deal  Flexible Control StrategyBuild expectations• Who with Preparation  Which style? Homework  Easy first Objectives  Manage agenda Benefits to both 91 Negotiation skills - Gihan Aboueleish
  • 92. Negotiation Strategy High BARGAINING EMOTION [Ability to modify others] Negotiation skills - Gihan Aboueleish INTITUTION COMPROMISE LOGICALLY Low Low High INFLUENCE
  • 93. Bargaining Zone Model Of Negotiation Your initial Your target Your resistance point point point Negotiation skills - Gihan Aboueleish Area of potential agreement Opponent’s Opponent’s Opponent’s resistance target point initial point point
  • 94. ExampleNegotiation skills - Gihan Aboueleish
  • 95. Negotiating Behaviour Gavin Kennedy describes 3 types of behaviour that we can display and encounter when in a negotiating situation. Negotiation skills - Gihan Aboueleish PURPLE BLUE RED
  • 96. RED Behaviour Manipulation Aggressive Negotiation skills - Gihan Aboueleish Intimidation Exploitation Always seeking the best for you No concern for person you are negotiating with Taking
  • 97. BLUE Behaviour • Win win approach • Cooperation Negotiation skills - Gihan Aboueleish • Trusting • Pacifying • Relational • Giving
  • 98. PURPLE Behaviour• Give me some of what I want (red)• I’ll give you some of what you want (blue)• Deal with people as they are not how you think they are• Good intentions• Two way exchange Negotiation skills - Gihan Aboueleish• Purple behaviour incites purple behaviour• Tit for tat strategies• Open• People know where they stand• Determination to solve problems by both sets of criteria of the merits of the case and/or the terms of a negotiated exchange
  • 99. Third-party Negotiations1. Investigation2. Mediation Negotiation skills - Gihan Aboueleish3. Conciliation4. Arbitration5. Adjudication
  • 100. Effective Negotiation• Successful relationships are built on communication and trust.• Lack of trust leads to “win-lose” or “lose-lose” Negotiation skills - Gihan Aboueleish result.• Negotiation is one way of creating trust – or deciding whether trust is justified. • Example: “The Negotiator’s Dilemma” a classic risk strategy game
  • 101. The Negotiator’s Dilemma B Cooperates B Competes A Cooperates Both cooperates A Cooperates Both have a good B Competes outcome Negotiation skills - Gihan Aboueleish A has terrible outcome, B has great outcome A Competes A Competes Both competes B Cooperates Both have mediocre outcome A has great outcome, B has terrible outcome
  • 102. Negotiation Tips;1) Do not underestimate your power.2) Do not assume that other party knows your weaknesses.3) It is a mistake to assume you know what the other Negotiation skills - Gihan Aboueleish party wants.4) Never accept the 1st offer.5) Don’t fear to negotiate.
  • 103. Skills For Effective Negotiation • Preparation and planning skill • Knowledge of the subject • Ability to think clearly and rapidly under pressure and uncertainty Negotiation skills - Gihan Aboueleish • Ability to express thoughts verbally • Listening skill • Patience • General problem-solving and analytical skills
  • 104. Preparation1. Firstly understand what it is you want?2. What do you think your opponent wants?3. What would happen if you didn’t do a deal?4. Do you know your stakeholders? Negotiation skills - Gihan Aboueleish5. Do you know who the decision maker is? Are you negotiating with them? If not what affect does that have?6. Are there concessions you can build into the negotiation?7. Know your product / service inside out? What standards are there in the market place?8. Know your price points?9. What issues do you think you’ll need to overcome?10. Prioritize!11. Practice!
  • 105. Information Sharing1. Company activities and market position2. Opinion on entry points3. What elements are clearly off the table or not up for discussion Negotiation skills - Gihan Aboueleish and why4. Opponents attitude and commitment5. Motivational factors (“I want this price because…”)6. Stakeholders and importantly decision makers7. Problems, issues or risk8. An order/structure for proceedings
  • 106. BARGAININGBargaining has two basic parts Debating Negotiation skills - Gihan Aboueleish Proposing
  • 107. DEBATING• To be successful in negotiation you must build relationships and trust• You need to avoid the following- • Point scoring – “Your company is always late with deliveries so I’m not paying that!” Negotiation skills - Gihan Aboueleish • Insults – “If you insist on that price you must be stupid” • Provocation – “Keep talking like that and see where it gets you!” • Threats – “You just wait until your other customers hear about this”• Instead try- • Building a relationship – It will make your negotiation much easier • Sticking to an agreed agenda – This will help avoid destructive discussions. • Share information and ask questions – What do you want – what do they want • Try and be positive and listen – What do they want and why – look for areas of win/win or easy compromise.
  • 108. PROPOSING• When proposing your offer consider • Consider both your entry and exit – This could include all or some of your wants, and your opponents entry and exit points • Consider how you will phrase your proposal Negotiation skills - Gihan Aboueleish • Consider what will motivate your opponent into making the deal • Consider the likely response – Think about the “if I do that then they will do that” • Are there alternative proposals? – Once an initial response has been made are you happy or do you need to offer up something new. • Remember the key thing is to propose – don’t argue and try and remain realistic, and invite a response from your opponent.
  • 109. Finalizing The Deal• So when closing the deal consider • Do you have what you want? • Do they have what they want? • Can you signify to your opponent that if certain terms were met the Negotiation skills - Gihan Aboueleish deal could be done. • Do you both understand the potential non deal by not closing or reaching agreement? • Document the agreement quickly and share it with your opponent and get agreement on the details of the deal. • Do not offer further concessions! • Agree the measures that will be applied to record fulfilment of the deal.
  • 110. Cabot Circus - UKNegotiation skills - Gihan Aboueleish
  • 111. Negotiation skills - Gihan Aboueleish
  • 112. Negotiation and Relationships Global marketplace Negotiation skills - Gihan Aboueleish Long-lasting business relationships Trust and integrity Conflicts with short-term needs Deals from position of strength
  • 113. PreparationGive and take Trust and integrity Negotiation skills - Gihan AboueleishShared valuesSteady dialogueCreative solutions
  • 114. Your experiences? Negotiating in DubaiDevelopersContractors Negotiation skills - Gihan AboueleishSub-contractorsConsultantsSuppliersLocal government
  • 115. Summary Promises – keeping them is hard Builds reputation Negotiation skills - Gihan Aboueleish More Trust = More Wins Never compromise on integrity Success is measure over time…
  • 116. People always give the mostconsideration, the best deals,to those people they like and Negotiation skills - Gihan AboueleishTRUST
  • 117. Thank youNegotiation skills - Gihan Aboueleish