Secrets Of Power Negotiating

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The art of how to win at the negotiating table and leave the other person feeling that he won.

The art of how to win at the negotiating table and leave the other person feeling that he won.

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  • 1. Secrets of Power Negotiating Presented to: Dr.Hassan Wagieh Prepared by : Maie Rebhy Marianne Victor Ahmed ElMahdy Asser Halim John Wagieh
  • 2. Questions:
    • What is power negotiating?
    • What are the sources of power?
    • Why “over stating demands”?
    • What is the use of “WHY NOT”?
    • What are the tips for successful negotiation?
    • What is the most dangerous moment in negotiation?
    • What is the most powerful weapon?
    • What is the negotiation process (BATNA)?
    • What are the negotiating principles?
    • How do negotiations work in cross culture environment?
  • 3. What is Power Negotiating?
    • The Definition:
    • The art of how to win at the negotiating table and leave the other person feeling that he won.
    • Power Negotiating is like a game of chess.
    • In negotiating, your counter part does not have to know the game rules but in general he will respond predictably to moves you make.
  • 4. What are the sources of power?
    • Informational sources of power
    • ( information is the most common source of power)
    • Personal sources of power
    • (Personal orientation-skills)
    • Power based on position
    • (Title-control of resources based on position)
    • Relationships – based sources of power
    • (Networking-Military alliances NATO/WARSW)
  • 5. Why “over stating demands”?
    • Effectiveness at the Negotiating table depends upon overstating the demands.
    • Asking for more than you expect raises the perceived value of what you are offering and prevents deadlocking.
    • The Rule: “THE LESS YOU KNOW ABOUT WHOMEVER YOU ARE UP AGAINST , THE HIGHIER YOUR INITIAL POSITION SHOULD BE”
    • “ MPP” Maximum Plausible Position
    • The most you can ask for and still appeared Credible
  • 6. What are the use of “WHY NOT”?
    • Why not triggers two negative thoughts in your counterpart’s mind:
    • “ I COULD HAVE DONE BETTER”
    • “ SOMETHING MUST BE WRONG”
  • 7. What are the tips for successful negotiation?
    • Flinch at proposals; Appear shocked by the other side proposal, the other side is watching for reaction, body language is critical here because most people believe what they see more than what they hear.
    • Avoid confrontational negotiation; what you say in the first few moments often sets the climate of negotiation ,arguing in the early stage of negotiation lead to early deadlock.
    • Play the reluctant seller and the reluctant buyer; The reluctant seller is the person who say (I never considered selling this boat), the reluctant buyer is doing the same in reverse. This gambit squeezes the other side negotiating range before the negotiation even starts.
  • 8.
    • The vise technique; This technique is deployed with the expression (you have to do better than that), the technique is then followed by silence. If this technique is used on you, respond with the counter gambit (how much better do I need to do?).
    • Don’t worry about Price; Price is a bigger concern to the people selling than it is to those they are selling to. People want to pay more not less. Customer who may be asking you to cut your price may be secretly wishing they could pay more. If you are trying to get someone to spend money, all you have to do is give him a reason and convince him there is no way to get a better deal. Ex. First gulf war “people were buying canned food with quantities although the prices were higher.
    • Higher Authority; Try to postpone the decision and try to act as if the final say is for the person in a higher authority" BOSS” Your counter part will make more concessions to people they don’t see or know than they will to you only.
  • 9.
    • Don’t Split Differences; Splitting the difference is perceived as being the fair thing to do, it is not! Remember that a dollar earned in a negotiation is a bottom line dollar.
    • The set-aside gambit; Use this to handle an impasse, a point at which both sides are in complete disagreement over one issue. Ask the other side to set this issue aside while the negotiations continue on remaining issues.
    • The longer the better; The longer you can keep the other party involved in the negotiation the more likely he is to move around your point of view, but this works both ways because the longer you stay the more concessions you make.
  • 10. What is the most dangerous moment in negotiation?
    • The most vulnerable moment
    • It is the moment when you Think that the negotiation is over and you are feeling good so you might give a way things you other wise you would not give away.
    • (WATCH YOUR EMOTIONS)
  • 11. What is the most powerful weapon?
    • “ Learn to develop walk-away power”
    • Example: The packages were offered to Northern Korea from the USA in return to shut down the nuclear experiments program,
    • Korea succeeded to gain more benefits by always walking away from the negotiations.
  • 12. What is the negotiation process?
    • Preparation and planning
    • Definition of ground rules
    • Classification and justification
    • Bargaining and problem solving
    • Closure and implementation
    • The BATNA:
    • The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.
  • 13. BATNA
    • Example:
    • Selling a car
    • If I have an offer to sell a car for $100, then my BATNA when dealing with other potential purchasers would be $100, since I can get $100 for my car even without reaching an agreement with such alternative purchaser .
    • In this example, other offers that illustrate the difficulty of valuing qualitative factors might include :
    • An offer of $90 by a close relative ( is the goodwill generated worth $10 or more)
    • An offer of $125 in 45 days ( what are the chances of this future commitment falling through, and would my prior BATNA ( $100 ) still be available if it did?
  • 14. What are the negotiation principles?
    • Peace negotiating principles are ethical and build success. follow them during all negotiation:
    • Get the other side to commit first.
    • Acting dumb is a smart way to obtain useful information
    • Don’t let the other side write the contract.
    • Read the contract every time it is received.
    • Be aware of funny money (look at actual dollars per year, not cents per day).
    • People believe what they see in writing.
    • Concentrate on the issues.
    • Always congratulate the other side.
  • 15. How do negotiations work in cross culture environment?
    • Cross cultural negotiation is one of many specialized areas within the wider field of cross cultural communications.
    • There are three aspects that need to be considered before entering into cross cultural negotiation:
  • 16.
    • 1- The Basis of the Relationship:
    • In Europe and North America, business is contractual in nature.
    • Personal relationships are seen as unhealthy as they can cloud objectivity and lead to complications.
    • In South America and much of Asia, business is personal. Partnerships will only be made with those they know, trust and feel comfortable with.
    • It is therefore necessary to invest in relationship building before conducting business.
  • 17.
    • 2- Information at Negotiations:
    • Western business culture places emphasis on clearly presented and rationally argued business proposals using statistics and facts.
    • Other business cultures rely on similar information but with differences.
    • For example, visual and oral communicators such as the South Americans may prefer information presented through speech or using maps, graphs and charts.
  • 18.
    • 3- Negotiation Styles:
    • The way in which we approach negotiation differs across cultures. For example, in the Middle East rather than approaching topics sequentially negotiators may discuss issues simultaneously.
    • South Americans can become quite vocal and animated.
    • The Japanese will negotiate in teams and decisions will be based upon consensual agreement.
    • In middle Asia, decisions are usually made by the most senior figure or head of a family.
    • In China, negotiators are highly trained in the art of gaining concessions.
    • In Germany, decisions can take a long time due to the need to analyse information and statistics in great depth.
    • In the UK, pressure tactics and imposing deadlines are ways of closing deals whilst in Greece this would backfire.
  • 19. Case Study
    • A young man was interested in cars, he once purchased a new car, after two months the car became so boring to him, and he thought of buying a new one with higher specifications, he decided to resell the old one which was in an excellent condition.
    • He published an add in local news paper specialized in cars markets, and he received lots of phone calls over two weeks and he did not sell the car waiting for a higher price than the market evaluation of his car!
    • Finally he decided to sell it for a higher price after long negotiations to a man who works in a critical governmental position and has relationships with cars market decision makers who informed him that the mentioned car price will deteriorate due to a new shape of the same model arriving in two days.
    • The high authority man holds the deal for couple of days, then the new shape went all over the media.
    • The deal was dismissed and our guy discovered the truth that he was playing an adversary game without knowing any of its rules.
  • 20. Thank you