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
2. Contents
• What is Negotiation?
• Features of Negotiation
• Why Negotiate ?
• Types of Negotiation
Negotiation Skills - Gihan
• 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
3. “Change the way
you look at things,
and the things you
Negotiation Skills - Gihan
look at
change ”
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
Negotiation Skills - Gihan
different parties, each with their own interests and preferences.
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
Negotiation Skills - Gihan
Aboueleish
communication, sales, marketing, psychology, sociology,
assertiveness and conflict resolution.
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
Negotiation Skills - Gihan
Aboueleish
• Expecting an outcome
• Resolution and Consensus
• 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
Negotiation Skills - Gihan
• To compromise
Aboueleish
• To settle an argument
• To make a point
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?”
Negotiation Skills - Gihan
Aboueleish
Integrative negotiations tend to occur in following situations:
• 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 Negotiations
Characteristic Distributive Integrative
Outcome Win-lose Win-win
Joint and individual
Negotiation Skills - Gihan
Aboueleish
Motivation Individual gain
gain
Different but not
Interests Opposed
always Opposite
Relationship Short-term Longer or Short-term
Issues involved Single Multiple
Ability to make
Not Flexible Flexible
trade-offs
Solution Not creative Creative
13. Negotiation Process
PREPARATION
Negotiation Skills - Gihan
Aboueleish
INFORMATION SHARING
BARGAINING
FINALIZING THE DEAL
14. BATNA
BATNA is ;
Best
Negotiation Skills - Gihan
Alternative
Aboueleish
To
Negotiated
Agreement
15. Why BATNAS Matter
• BATNAs tell you when to accept and when to reject an
agreement
Negotiation Skills - Gihan
Aboueleish
• When a proposal is better than your BATNA:
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 manual
Focus on Positions Focus on interests
Dive into the negotiation Defer the negotiation to a time of our own
choosing, gather information first
When our proposals are rejected, Ask why our proposal doesn’t work, and
justify and defend them gather information
When a proposal is made to us Instead of rejecting, ask why their proposal
that is unacceptable, rejection is important, and gather information
17
18. Basic Principles Common To All Forms Of
Negotiation
There are minimum 2 parties involved in the
negotiation process. There exists some
common interest, either in the subject
Negotiation Skills - Gihan
Aboueleish
matter of the negotiation or in the
negotiating context, that 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
Negotiation Skills - Gihan
Aboueleish
acceptable final agreement.
Each party has some influence or power – real or
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.
Negotiation Skills - Gihan
Aboueleish
Should know the body language of the
people at the negotiation process.
Should be open and flexible and yet firm.
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
Negotiation Skills - Gihan
Aboueleish
formula for his counter party.
• Should be able to grasp the situation from many
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.
Negotiation Skills - Gihan
Aboueleish
• Should radiate energy and enthusiasm
and must be in a position to empathize
with his opponents.
• Should be a patient listener.
25. How To Develop These Skills And Use Them
Effectively ?
• what negotiation means and the various
forms it can take that negotiating, in the
fullest sense, means forging long-term
Negotiation Skills - Gihan
relationships the role that the individual
Aboueleish
personalities play in negotiating that you
must take a variety of approaches to
negotiation, since no single set of
principles will suffice in all circumstances
28. Managerial Negotiations
Types Parties Involved Examples
1. Different levels of 1. Negotiation for
Day-to-day/ Management pay, terms and
Negotiation Skills - Gihan
Aboueleish
Managerial working
Negotiations 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 Examples
Negotiation Skills - Gihan
Aboueleish
Commercial 1. Management 1. Striking a contract with
Negotiations 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
Negotiation Skills - Gihan
Aboueleish
Legal the laws of the
2.Management
Negotiations local and
3.Customers national
government.
31. How To Plan Your Negotiation Agenda
Negotiation 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
negotiating.
Negotiation Skills - Gihan
Aboueleish
• 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?
Gihan Aboueleish
Negotiation Skills -
• 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 people
be expecting from the
Negotiation Skills - Gihan
Aboueleish
negotiation?
• 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 you?
• What are the consequences of winning
Negotiation Skills - Gihan
Aboueleish
or loosing by the other person?
39. • Power:
• Who has the power in the relationship?
• Who do controls the resources?
• Who stands to lose most if agreement is
Negotiation Skills - Gihan
Aboueleish
not been reached?
• What power does other person have to
deliver which you do hope for?
40. • Possible Solutions:
•
Based on all considerations, what
Negotiation Skills - Gihan
Aboueleish
possible compromises might be there?
41. Negotiating And Long-term Relationships
Good negotiators are the people who
understand
Negotiation Skills - Gihan
Aboueleish
• how to build key relationships
• how to identify what people need
• how to give them what they need and
• how to get what they want in return, all
in 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
Negotiation Skills - Gihan
Aboueleish
authority 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
Aboueleish
In order to avoid conflict, they do not negotiate
at all and often end up overriding their own
interests.
45. The Negotiation Process
BATNA
The Best Alternative To a
Negotiation Skills - Gihan
Aboueleish
Negotiated Agreement; the
lowest acceptable value
(outcome) to an individual for a
negotiated 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
Negotiation Skills - Gihan
Aboueleish
would be 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 BATNA
BATNAs 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
ple The car owner is not
am agreeing for the lesser
A
Ex price.
TN Than customer can
BA
ask for Radial
tires[best alternative]
with any increase in
price further.
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
Negotiation Skills - Gihan
Aboueleish
Brill Leisure Centre, based upon the
following issues:
52. CASE STUDY – Application 02
A community discovers that its water is being
polluted by the discharges of a nearby factory.
Negotiation Skills - Gihan
Community leaders first attempt to negotiate a
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 Negotiation
The Role of Mood & Personality Traits in Negotiation;
• Positive moods positively affect negotiations
• Traits do not appear to have a significantly direct
Negotiation Skills - Gihan
Aboueleish
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 BATNAs
Once parties establish a BATNA, they
must then compare the costs and
benefits of the BATNA to all of the
Negotiation Skills - Gihan
Aboueleish
settlement options on the table.
Ask, "What's it going to cost you if you
don't?"
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-win Bargaining
• Integrative bargaining in which parties collaborate to
find a “win-win" solution to their dispute.
• This strategy focuses on developing mutually beneficial
Negotiation Skills - Gihan
Aboueleish
agreements based on the interests of the disputants.
• Interests include the needs, desires, concerns, and
fears important to each side.
59. Positional Bargaining
Positional 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.
62. Exercise #1
Roles : Rita, a 15 year old girl. The Observer
becomes Rita’s parent. Others are Observers to
record use/abuse of “win/win” techniques.
Negotiation Skills - Gihan
Aboueleish
Background: Rita is calling home from a payphone
on Hwy 401 to tell her parent she is hitch-hiking to
Hollywood to be a movie star. She has no money,
is a little 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 effect a “win-win” approach before the
payphone times out.
63. Exercises #2
Background:
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 programmer, and knows the tasks.
Negotiation Skills - Gihan
Aboueleish
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 #3
Background: Raima is not using the
car this weekend, but is concerned
the good friend is a fast driver. The
Negotiation Skills - Gihan
Aboueleish
friend is generous, and has done
Raima several favors for Raima,
including a recent birthday gift.
Time: 3 minutes
65. Use….Competition
When quick, decisive action is vital (in
emergencies); on important issues.
Where unpopular actions need implementing (in
Gihan Aboueleish
Negotiation Skills -
cost 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 resolution.
To let people cool down and regain perspective.
When gathering information supersedes immediate decision.
When others can resolve the conflict effectively.
Negotiation Skills - Gihan
When issues seem tangential or symptomatic of other issues.
Aboueleish
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 cooperation.
To build social credits for later issues.
Negotiation Skills - Gihan
Aboueleish
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 to mutually
exclusive goals.
To achieve temporary settlements to complex issues.
Negotiation Skills - Gihan
Aboueleish
To arrive at expedient solutions under time pressure.
As a backup when collaboration or competition is
unsuccessful.
73. 1) Prepare, prepare, prepare
2) Pay attention to timing
3) Leave behind your ego.
Negotiation Skills - Gihan
Aboueleish
4) Ramp up your listening skills.
5) If you don't ask, you don't get
74. 6. Anticipate compromise
7. Offer and expect commitment
8. Don't absorb their problems
9. Stick to your principles
Negotiation Skills - Gihan
Aboueleish
10. Close with confirmation.
75. 01- Prepare, Prepare, Prepare
Pay attention to timing. Timing is important in
any negotiation. Sure, you must know what
Negotiation Skills - Gihan
Aboueleish
to 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. 02- 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
Negotiation Skills - Gihan
Aboueleish
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.
77. 03- Leave Behind Your Ego.
• Leave behind your ego. The best
negotiators either don't care or don't
show they care about who gets credit
for a successful deal. Their talent is in
Negotiation Skills - Gihan
Aboueleish
making 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 first. That helps set up
one of negotiation's oldest maxims: Whoever mentions
Negotiation Skills - Gihan
Aboueleish
numbers first, loses. While that's not always true, it's
generally better to sit tight and let the other side go
first. Even if they don't mention numbers, it gives you a
chance to ask what they are thinking.
79. - 05if You Don't Ask, You Don't Get
• If you don't ask, you don't get. Another tenet of
negotiating is "Go high, or go home." As part
of your preparation, define your highest
justifiable price. As long as you can argue
Negotiation Skills - Gihan
Aboueleish
convincingly, don't 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
Negotiation Skills - Gihan
Aboueleish
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.
81. 07- Offer And Expect Commitment.
• Offer and expect commitment. The
glue that keeps deals from
Negotiation Skills - Gihan
Aboueleish
unravelling 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. Don't Absorb Their Problems.
• 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
Negotiation Skills - Gihan
Aboueleish
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.
83. Stick To Your Principles.
• Stick to your principles. As an
individual and a business owner, you
likely have a set of guiding principles
Negotiation Skills - Gihan
Aboueleish
— values that you just won't
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
Negotiation Skills - Gihan
Aboueleish
any areas of agreement. Make sure
everyone confirms. Follow-up with
appropriate letters or emails. Do not
leave behind loose ends.
85. Hand
ling
Difficu
lt N
ego
tia
to
rs
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 they finish.
• Be critical of foul language.
Negotiation Skills - Gihan
Aboueleish
• 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?
Focus on issues
Negotiation Skills - Gihan
Aboueleish
Guilt
Re-focus
False flattery
Tips:
• 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 Buttons
Exercise: List the last 3 times you felt someone pressed
your “Hot Button”.
Subject Who pushed Why did you feel Next time I
Negotiation Skills - Gihan
discussed your buttons? manipulated? will…..
89. Reachnegotiate?
So why an agreement
Get the better of the opposition
Compromise
Negotiation Skills - Gihan
Aboueleish
Settle a dispute
Make a point
91. Key steps • In writing
• Speed
• Enforce
Communicate clearly
Confidence
Flexible Close deal
Control
• Build expectations
Strategy
Who with Which style?
Homework
Preparation Easy first
Objectives Manage agenda
91Benefits to both Negotiation Skills - Gihan
Aboueleish
92. Negotiation Strategy
High
BARGAININ
EMOTION
G
[Ability to modify others]
Gihan Aboueleish
Negotiation Skills -
INTITUTION
COMPROMI
LOGICALLY
SE
Low
Low High
INFLUENC
E
93. Bargaining Zone Model Of Negotiation
Your initial Your target
Your resistance
point point
point
Gihan Aboueleish
Negotiation Skills -
Area of
potential
agreement
Opponent’s Opponent’s Opponent’s
resistance target point initial point
point
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
RED BLUE PURPLE
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
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
Negotiation Skills - Gihan
Aboueleish
• Two way exchange
• 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
100. Effective Negotiation
• Successful relationships are built on communication and
trust.
Negotiation Skills - Gihan
• Lack of trust leads to “win-lose” or “lose-lose” result.
Aboueleish
• 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.
Gihan Aboueleish
Negotiation Skills -
3) It is a mistake to assume you know what the
other 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
Negotiation Skills - Gihan
Aboueleish
pressure and uncertainty
• Ability to express thoughts verbally
• Listening skill
• Patience
• General problem-solving and analytical skills
104. Preparation
1. 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
Aboueleish
5. 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 Sharing
1. Company activities and market position
2. Opinion on entry points
3. What elements are clearly off the table or not up for
Negotiation Skills - Gihan
Aboueleish
discussion and why
4. Opponents attitude and commitment
5. Motivational factors (“I want this price because…”)
6. Stakeholders and importantly decision makers
7. Problems, issues or risk
8. An order/structure for proceedings
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!”
• Insults – “If you insist on that price you must be stupid”
• Provocation – “Keep talking like that and see where it gets you!”
Gihan Aboueleish
Negotiation Skills -
• 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
Negotiation Skills - Gihan
Aboueleish
• Consider how you will phrase your proposal
• 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?
Negotiation Skills - Gihan
Aboueleish
• Can you signify to your opponent that if certain terms were met
the 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 - UK
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. Preparation
Give and take
Trust and
integrity
Negotiation Skills - Gihan
Aboueleish
Shared values
Steady dialogue
Creative solutions
114. Your experiences? Negotiating in Dubai
Developers
Contractors
Negotiation Skills - Gihan
Aboueleish
Sub-contractors
Consultants
Suppliers
Local 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
most consideration, the
best deals, to those people
Negotiation Skills - Gihan
Aboueleish
they like and TRUST