Critical to Achieving Business Results: Effective Negotiation
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Critical to Achieving Business Results: Effective Negotiation

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Critical to achieving results in today’s fast-paced, complex business world is the ability to negotiate effectively. Every day we negotiate with our internal colleagues and/or external counterparts ...

Critical to achieving results in today’s fast-paced, complex business world is the ability to negotiate effectively. Every day we negotiate with our internal colleagues and/or external counterparts over priorities, strategies, resources, responsibilities, budgets and contracts. Typically, these negotiations are not one-off transactions; they occur with counterparts with whom we have negotiated previously, and will again. Yet even the most experienced negotiators often assume that there is a tradeoff: either pursue the best outcome for me, or make concessions to build or preserve a good relationship. This tradeoff is false, and is just one of many common disempowering assumptions that lead people to behave, with both internal and external counterparts, in ways that impede negotiation effectiveness and sub-optimize the outcomes.

This webinar, based on the bestselling book "Getting to YES: Negotiating Agreement Without Giving In" and 30 years of training and consulting to corporations about the world, will focus on:

Surfacing and replacing the common disempowering assumptions in our thinking about negotiation that drive what we do at the table and produce suboptimal result.
Introducing a systematic and strategic approach to negotiation that enables negotiators to assertively and effectively pursue their business objectives while simultaneously building and maintaining positive working relationships.
Sharing best practices for making negotiation an organizational capability — not just an individual competency.

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Critical to Achieving Business Results: Effective Negotiation Critical to Achieving Business Results: Effective Negotiation Presentation Transcript

  • #CLOwebinar The presentation will begin at the top of the hour. A dial in number will not be provided. Listen to today’s webinar using your computer’s speakers or headphones. Critical to Achieving Business Results: Effective Negotiation
  • #CLOwebinar         Speaker: Elizabeth Rayer Partner Vantage Partners Brian Blancke Ph.D. Content consultant and trainer in negotiation Vantage Partners Moderator: Max Mihelich Associate Editor Chief Learning Officer magazine Critical to Achieving Business Results: Effective Negotiation
  • #CLOwebinar         Tools You Can Use Audio Control –  A dial in number will not be provided. –  Adjust the volume by sliding the indicator in the Media Player box to the left. –  Also check your computer’s volume for external speakers or headsets.
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  • #CLOwebinar         1. May I receive a copy of the slides? YES! Click on the resource list located on the top left portion of your screen. 2. May I review the webinar recording at a later date? YES! You may log in again using today’s link to review the presentation on-demand. Frequently  Asked  Ques6ons  
  • #CLOwebinar         Max  Mihelich   Associate  Editor   Chief  Learning  Officer  magazine   Cri6cal  to  Achieving  Business  Results:   Effec6ve  Nego6a6on  
  • #CLOwebinar         Elizabeth Rayer Partner Vantage Partners Brian Blancke Ph.D. Content consultant and trainer in negotiation Vantage Partners Cri6cal  to  Achieving  Business  Results:   Effec6ve  Nego6a6on  
  • Brighton  Landing  West              10  Guest  Street              Boston,  MA    USA    02135              www.vantagepartners.com   This  publicaCon  may  not  be  reproduced,  stored  in  a  retrieval  system,  or  transmiGed  in  whole  or  in  part,  or  in  any  form  or  by  any  means,  electronic,  mechanical,   photocopying,  recording,  or  otherwise,  without  prior  wriGen  permission.  Copyright  ©  2013  by  Vantage  Partners,  LLC.  All  rights  reserved.  All  rights  reserved.     Cri6cal  to  Achieving  Business  Results:   Effec6ve  Nego6a6on   Elizabeth  Rayer,  Ph.D.   Brian  Blancke,  Ph.D.  
  • About  Vantage  Partners   n  Mission:  Drive  measurable  business  results  by  transforming  the  way   companies  negoCate  with,  and  manage  relaConships  with,  key  business   partners   n  PracCce  Areas:  Sourcing  and  Supplier  Management,  Sales  and  Key   Account  Management,  Alliance  Strategy  and  Management   n  Spin-­‐off  of  the  Harvard  NegoCaCon  Project   n  Faculty  at  Harvard  University,  the  Tuck  School  of  Business  at   Dartmouth,  and  the  US  Military  Academy  at  West  Point   n  Leaders  in  internaConal  conflict  resoluCon  through  CMG  (now  part  of   Mercy  Corps)   u  Arias  Peace  Accords,     u  Post-­‐apartheid  South  African  consCtuCon   Copyright  ©  2014  by  Vantage  Partners,  LLC.     11  
  • Vantage  Partners  publica6ons   Copyright  ©  2014  by  Vantage  Partners,  LLC.     12  
  • Webinar  purposes   Copyright  ©  2014  by  Vantage  Partners,  LLC.     13   n  Surfacing    and  replacing  the  common  disempowering   assumpCons  in  our  thinking  around  negoCaCon  that,  wibngly  or   not,  drive  what  we  do  at  the  table  and  produce  subopCmal   results     n  Introducing  a  systemaCc  and  strategic  approach  to  negoCaCon   that  enables  negoCators  to  asserCvely  and  effecCvely  pursue   their  business  objecCves  while  simultaneously  building  and   maintaining  posiCve  working  relaConships   n  Sharing  best  pracCces  for  making  negoCaCon  an  organizaConal   capability    
  • Poll  ques6on:    How  oWen  do  you  nego6ate?   Copyright  ©  2014  by  Vantage  Partners,  LLC.     14   n  Rarely   n  1  or  2  Cmes  per  month   n  A  few  Cmes  per  week   n  Every  day   n  MulCple  Cmes  per  day  
  • Copyright  ©  2014  by  Vantage  Partners,  LLC.     15     What  words  come  to  mind   when  you  think  of   nego6a6on?  
  • Surfacing  mental  assump6ons   16  Copyright  ©  2014  by  Vantage  Partners,  LLC.    
  • Assump6ons  drive  results   Assump6ons,   Stories,   Values   Adapted  from  Diana  McLain  Smith’s  “Learning  Pathways.”    Copyright  AcCon  Design.    All  rights  reserved.    Used  with  permission.   Results  Ac6ons   Copyright  ©  2014  by  Vantage  Partners,  LLC.     17  
  • Assump6ons  that  drive  different  strategies  and   ac6ons   Copyright  ©  2014  by  Vantage  Partners,  LLC.     18   Debilita6ng   Our  interests  are  opposed;  we  can’t  both  get   what  we  want   This  is  a  zero-­‐sum  game;  the  pie  is  fixed   We  need  to  compromise  between  conflicCng   posiCons   I  have  to  choose  between  a  good  rela6onship   and  good  substance   Best  to  see  what  they  do  first   Poor  communica6on  is  their  problem     They  make  poor  decisions  because  they  are   ignorant  or  misguided   I  should  behave  as  badly  as  I  think  they  are   We  have  no  choice   Empowering   While  some  interests  conflict,  others  are  shared   or  just  different   We  can  always  shrink  the  pie,  and  usually  find   ways  to  expand  it   We  can  find  creaCve  ways  to  meet    both  of  our   interests   We  can  build  a  good  rela6onship  even  as  we   disagree   Their  tendency  to  follow  is  an  opportunity  to   lead   Good  communica6on  is  my  problem   People  do  what  they  believe  is  in  their  best   interest   I  should  do  what  will  move  us  toward  where  I   want  to  go   Nothing  happens  unless  I  agree  
  • Nego6a6on       Copyright  ©  2014  by  Vantage  Partners,  LLC.     19  
  • Nego6a6on  as  bargaining   Walk  Away   No  Deal   “A  reasonable  price  of  .  .  .”   “That’s  my  bobom  line”   “Just  for  you…”   Extreme  Opening  Posi6on   Fallback  (Minor  Concession)   “Take  it  or  leave  it”   “Last”  Final  Offer   Split-­‐the-­‐difference  compromise   Threat   Counter-­‐   Threat   Walk  Out   (Temporarily)     “Final”  Offer   Walk  Away   No  Deal   Copyright  ©  2014  by  Vantage  Partners,  LLC.     20  
  • A  fundamental  tension?   We  oken  need  the  skills   to  negoCate  in  a  way  that   produces  both    good   substanCve  outcomes   and    a  good  working   relaConship   RelaConship   Substance   Copyright  ©  2014  by  Vantage  Partners,  LLC.     21  
  • Seven  elements  of  nego6a6on   n  Interests   n  AlternaCves   n  OpCons   n  LegiCmacy   n  Commitments   n  RelaConship   n  CommunicaCon   n  Defining  Success   n  NegoCaCon  PreparaCon   n  NegoCaCon  strategy   execuCon  and   understanding  different   process  choices   n  Diagnosing  and  handling   difficult  tacCcs   n  Organizing  insights,  tools,   and  lessons   Useful  for   Copyright  ©  2014  by  Vantage  Partners,  LLC.     22  
  • Nego6a6on  as  joint  problem-­‐solving:    The  Circle   of  Value   Copyright  ©  2014  by  Vantage  Partners,  LLC.     23   If  “Yes”   Commitment   If  “No”   AlternaCves   Interests   OpCons   LegiCmacy   CommunicaCon  RelaConship   Build  a  working   relaConship.   Be  respecnul.   Jointly  explore   opCons  for   creaCng  and   distribuCng  value.   Make   choices.  
  • If  “Yes”   Commitment   If  “No”   Alterna6ves   Interests   Op6ons   Legi6macy   Communica6on  Rela6onship   Circle  of  Value   24   Copyright  ©  2014  by  Vantage  Partners,  LLC.     Rela6onship   The  way  in  which  parCes  interact,  both   during  the  negoCaCon  and  akerwards,   and  their  percepCons  of,  and  beliefs   about,  one  another  (which  affect  how   they  interact)    
  • If  “Yes”   Commitment   If  “No”   Alterna6ves   Interests   Op6ons   Legi6macy   Communica6on  Rela6onship   Circle  of  Value   25   Copyright  ©  2014  by  Vantage  Partners,  LLC.     Communica6on   CommunicaCon  refers  to  the   messages,  acCons,  and  signals  sent   during  negoCaCon,  and  the  way  that   these  signals  are  interpreted  or   received      
  • If  “Yes”   Commitment   If  “No”   Alterna6ves   Interests   Op6ons   Legi6macy   Communica6on  Rela6onship   Circle  of  Value   26   Copyright  ©  2014  by  Vantage  Partners,  LLC.     Interests   Interests  are  what  moCvate  parCes  to   negoCate  in  the  first  place,  and  which   they  seek  to  saCsfy  through  a   negoCated  agreement:    their  needs,   objecCves,  risks  they  want  to  miCgate,   and  the  like.  There  are  two  levels  of   interests  to  always  keep  in  mind  —   organizaConal  and  personal.    
  • If  “Yes”   Commitment   If  “No”   Alterna6ves   Interests   Op6ons   Legi6macy   Communica6on  Rela6onship   Circle  of  Value   27   Copyright  ©  2014  by  Vantage  Partners,  LLC.     Op6ons   OpCons  are  the  possible  elements   of  an  agreement.  To  implement  an   opCon,  all  parCes  must  agree.    
  • If  “Yes”   Commitment   If  “No”   Alterna6ves   Interests   Op6ons   Legi6macy   Communica6on  Rela6onship   Circle  of  Value   28   Copyright  ©  2014  by  Vantage  Partners,  LLC.     Legi6macy   LegiCmacy  refers  to  the  extent  to   which  an  agreement  is  perceived   as  fair,  appropriate  or  “on  the   merits”    
  • If  “Yes”   Commitment   If  “No”   Alterna6ves   Interests   Op6ons   Legi6macy   Communica6on  Rela6onship   Circle  of  Value   29   Copyright  ©  2014  by  Vantage  Partners,  LLC.     Alterna6ves   AlternaCves  are  the  ways  that   each  party  can  saCsfy  its  interests   if  an  agreement  is  not  reached      
  • If  “Yes”   Commitment   If  “No”   Alterna6ves   Interests   Op6ons   Legi6macy   Communica6on  Rela6onship   Circle  of  Value   30   Copyright  ©  2014  by  Vantage  Partners,  LLC.     Commitments   Commitment  are  oral  or  wriGen   statements  about  what  a  party  will   or  won't  do      
  • Nego6a6on  Take  2     Copyright  ©  2014  by  Vantage  Partners,  LLC.     31  
  • Buy-­‐side  versus  sell-­‐side  percep6ons  of  percentage  of   total  contract  value  realized  during  implementa6on   Copyright  ©  2014  by  Vantage  Partners,  LLC.     32   0% 25% 50% 75% 100% Percentage  of  Poten6al  Value  Realized   66%   54%   Buy-­‐side  respondents  were  asked  to  esCmate  the  average  %  of  total  potenCal  contract  value  realized   across  all  their  supplier  contracts.    Sell-­‐side  respondents  were  asked  to  esCmate  the  average  %  of  total   potenCal  contract  value  actually  delivered  by  their  company  to  their  customers  during  contract   implementaCon.    The  chart  represents  the  averages  of  these  responses.   Buy-­‐side  respondents  -­‐  realized   Sell-­‐side  respondents  -­‐  delivered   Average  contract  value  realized  in  implementa6on  
  • Nego6a6on  as  a  corporate  capability   Copyright  ©  2014  by  Vantage  Partners,  LLC.     33     CreaCng  a  NegoCaCon  Infrastructure     Broadening  the  measures  of  success  
  • Crea6ng  a  nego6a6on  infrastructure   Copyright  ©  2014  by  Vantage  Partners,  LLC.     34   n  Move  from  an  individual   focus  to  some   standardizaCon  of   processes  and  tools   n  Coordinate  and  support   negoCaCon  like  any   funcCon   n  Create  a  system  for   sharing  successful   pracCces    
  • Broadening  the  measures  of  success   Copyright  ©  2014  by  Vantage  Partners,  LLC.     35   Rela6onship   Does  the  negoCaCon  process  help  build  the  kind  of  relaConship  that  will  enable   us  and  our  clients  to  work  effecCvely  together  over  the  project’s  life  cycle?   Communica6on   Do  our  negoCaCons  help  create  an  environment  in  which  both  parCes  can   engage  in  construcCve  conversaCons  aimed  at  solving  problems?   Interests     Have  we  craked  a  deal  that  saCsfies  our  interests  well  at  the  same  Cme  that  it   saCsfies  our  client’s  interests  to  at  least  an  acceptable  level  and  the  interests  of   any  relevant  third  parCes  (government  regulators,  environmental  groups,  and  so   on)  to  at  least  a  tolerable  level?   Op6ons   As  part  of  the  negoCaCon  process,  have  we  searched  for  innovaCve,  elegant,   and  efficient  soluCons  that  might  offer  joint  gains?   Legi6macy   Aker  brainstorming  a  variety  of  opCons,  have  we  used  objecCve  criteria  to   evaluate  and  choose  an  op-­‐Con  that  could  be  jusCfied  by  both  sides?   BATNA   Have  we  measured  the  proposed  deal  against  our  Best  AlternaCve  to  NegoCated   Agreement,  and  are  we  confident  that  it  saCsfies  our  interests  beGer  than  our   BATNA  does?   Commitment   Have  we  generated  a  set  of  well-­‐planned,  realisCc,  and  workable  commitments   that  both  sides  understand  and  are  prepared  to  implement?  
  • To  achieve  op6mal  business  results  through   nego6a6on…   Copyright  ©  2014  by  Vantage  Partners,  LLC.     36   n  Change  the  mindset  around  negoCaCon  to  one  of  joint  problem-­‐ solving   n  Implement  a  robust  model  for  preparing  and  conducCng   negoCaCons  that  informs  strategic  and  tacCcal  choices   n  See  negoCaCon  as  a  core  “funcCon”  within  the  organizaCon   versus  just  an  individual  capability    
  • A  spin-­‐off  of  the   Harvard  NegoCaCon  Project,   Vantage  Partners  helps   companies  achieve  breakthrough   business  results  by  transforming   the  way  they  negoCate  with,   and  manage  relaConships  with,   their  suppliers,  customers,   and  alliance  partners.       Vantage  Partners     10  Guest  Street   Boston,  MA  02135  USA   T:  +1  617.354.6090   F:  +1  617.354.4685     www.vantagepartners.co m   Copyright  ©  2014  by  Vantage  Partners,  LLC.     37  
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