Negotiation seminar farzin fardiss day 1391 [6 pp mode](1)


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Negotiation seminar farzin fardiss day 1391 [6 pp mode](1)

  1. 1. Negotiation Principles, Techniques, and Skills Farzin Fardiss Member of Board Persian Telecom Systems Group (Pars Saman) Negotiation A Outline of the remaining sessions What is Negotiation? & Why it is important? Negotiation Styles Negotiation Principles Negotiation Tactics Good / Bad Negotiator Communication Skills required for Neg. Planning for Negotiation Influence Principles Personality Types for Negotiation
  2. 2. What is Negotiation? “The process by which we search for the terms to obtain what we want from somebody who wants something from us” “Negotiation is an explicit voluntary traded exchange between people who want something from each other” “To negotiate is to trade something we have for something we want” What is Negotiation? “A decision making process by which two or more people come to agreement on how to allocate scarce resources” “Mutual discussions for the purpose of arriving at the terms of a transaction or agreement” What is Negotiation? “Negotiating is the art of reaching an agreement by resolving differences through creativity” “Interaction that occurs when two or more parties attempt to agree on a mutually acceptable outcome in a situation where their preferences for outcomes are negatively related” What is Negotiation? “Use of information and power to affect the other party’s behavior within a web of tension” “Coordinating preferences to ensure mutually acceptable gains” What is Negotiation? “Negotiating is the art of creating a bigger solution. Negotiating is not the art of taking advantage of others.” What is Negotiation? ‫مذاکره‬‫به‬‫جريان‬‫داد‬‫و‬‫ستدی‬‫اطالق‬‫می‬‫شود‬ ‫که‬‫شرايط‬‫آن‬‫از‬‫پيش‬‫معين‬‫نبوده‬‫و‬‫در‬‫جريان‬ ‫گفتگو‬‫تعيين‬‫می‬‫شود‬. ‫مذاکره‬‫فرآيندی‬‫است‬‫که‬‫طی‬‫آن‬‫دو‬‫يا‬‫چند‬‫نفر‬ ‫بر‬‫اساس‬‫وابستگی‬‫متقابل‬‫برای‬‫توافق‬‫در‬ ‫رابطه‬‫با‬‫مبادله‬‫داشته‬‫ھای‬‫خود‬‫به‬‫گفتگو‬‫می‬ ‫پردازند‬.
  3. 3. Two Kinds of Outcomes Tangible – Price, delivery, quality, guarantees Intangible – Making the other person happy – “Winning” – Being fair – Preserving your reputation/Integrity What you are looking for in business negotiation? Getting what you want Building a long lasting relation Letting both parties leave negotiation session happily – History will fight you – ‫توافقات‬ ‫اجرای‬ ‫در‬ ‫کارشکنی‬ Other Party shall have a good feeling about the process. – Your servant will not be satisfied with a one shot 300K Negotiaton Negotiation Myths Successful Negotiators are born so Successful Negotiator do not prepare themselves in advance Good Negotiators take uncalculated risks Good Negotiators rely only on intuition How can we find we are negotiating? (when?) Existence of – Multiple Parties • At least two parties (sides) – Interdependency (Conflict of Interests) • Different interests and needs in some issues or domains – Mutual Goals • Issues or domains which are common and accepted by both parties • Both sides want a settlement. – Flexibility • Flexible items such as time, price, condition – Decision Making Ability • Cooperation whilst Conflict How can we find we are negotiating? (when?) Every Negotiation has two parties involved There is a conflict of interest between involved parties Both sides have chosen negotiation as a solution to existing perception of conflict Negotiation is a goal-seeking process – Goal seeking is as important as process Both sides understand that they are engaged in a give and take (compromise) Negotiation is just an important part of daily life! Daily bargains (purchases) Specific purchases ( Auto, home, … ) Inter Organization and Inter group conflicts Marriage Job Negotiations (Salary, Work Condition, …) Next events planning (Trip, Vacation, …)
  4. 4. What negotiation is not? Negotiation is not a fight Negotiation is not arguing on a topic Negotiations is not the last solution – When you start the negotiation late, you are dictated – Iran & USA Negotiations – North Korea & USA Negotiations – Parking in the Apartment Negotiation is a not an euphemism for cunning – Yelling at the manger for the salary; “ you have disturbed my rights” Negotiation is not a “winner take it all” game What negotiation is not? Negotiation is not a contest – Different from the sport, it may have different gold medals Why is negotiation important? One of the most effective tools for – Business Development – Sales and Marketing – Recruitment and Human Resources Planning One of the most effective tools for – Being a more lovely person in the groups – Being a better family member – Influencing your friends more – … To have a happier and more successful life! Why is negotiation important? Scarce Resources Increased Competitiveness Entrepreneurial Environment of Business Globalization Why is negotiation important? Want to Achieve Success? Why is negotiation important? It is not enough to be right to reach our rights. We should be able to negotiate well. (Caspian Sea as an Example) Life can be summarized as relationship. Personal, Group, Social, National and … relationships. Negotiation is the main tool for successful negotiation. Our Relationship with our environment is getting more and more complex and diversified. (WTO as an Example) The rivals are getting more powerful everyday. We should make ourselves ready for this improving rivals. Learning Negotiation is a life time investment. It has return on investment in our whole life. It is not like all other investments. Quality of Life is a wish for any human being in this universe. Negotiation is the most useful tool for reaching such wish.
  5. 5. Why we need Negotiation Skills? You do not get what you deserve, you get what you negotiate for Negotiation is one of the most popular modes of communication. It can build a closer relation if it be made in the right way. Everybody is getting trained and developed in negotiation skills Why is negotiation important? Everything you want is under the control of somebody else. Only your desire, plan and skill for success is under your control My Interests are others belongings! When to negotiate? Win/Win outcome is desirable to both parties You occupy a defensible position Both parties have options When NOT to negotiate? You are in competition with the other party (Reconsider) One or both sides enter with false intentions – Both sides must want and be willing to pursue win/win Can’t possibly win You or other party lack authority When NOT to negotiate? Don’t negotiate with someone who’s intent is to defeat you (& vice versa) – “Don’t wrestle with a pig…you both get dirty and the pig likes it!”
  6. 6. Tools for Negotiation Personal – Communication skills (Listening, Body Language, Speaking…) – Expertise in the field of Negotiation (Technical, Norms, Standards, Literature) – Preparation for Negotiation – Mastery of Techniques for Negotiation – Analytical Power – Understanding Business Law or Trade Law – Personality & Characteristics Analysis – Management of Emotions – …. Non personal Tools – Time – Host / Guest – Location of Negotiation – Environment of Negotiation Tools for Negotiation You should be completely aware and competent of the standards and norms of the negotiation issue – “Do you own the shop or you are tenant?” in Bazaar area – Transfer of technology and license agreement (SAMSUNG LCD) – EPC Contract (Construction of a Hospital, Refinery, Port) – Finance from World Bank (Development of Sewage Network) – Negotiation for a Purchase in a Real State Agency Negotiation; Learned or Natural Ability? “Successful negotiating is a skill. It is not something you have or don’t have.” (Gerard Nierenberg, The Art of Negotiating) Like playing a sport, flying an airplane, or driving a car, becoming an effective negotiator is a skill that can be learned. Some people have a natural talent for it. Others do not. If you do not have a natural inclination for negotiating, you can learn how to do it, and do it well! If you do have a natural talent for it, you can improve that skill with training and practice. Let us never negotiate out of fear. But let us never fear to negotiate. John Fitzgerald Kennedy I learned very early that in most negotiations success or failure is determined more by the actions, inactions, habits, idiosyncrasies, blunders, insights, and clever strategic moves of the individuals involved than by the terms of the agreement or other formal elements of the proposed transaction. Royce A. Coffin Negotiation Negotiation is a game, “a game of moving people from ‘no’ to ‘yes’.”
  7. 7. Negotiation A 5 Major Principles of Negotiation Getting to Yes, by William Ury and Roger Fisher Separate People from the Problem Focus on the Interests not on the Positions Invent Options for Mutual Gains Insist on using Objective Criteria Know your BATNA 5 Major Principles of Negotiation (Principle 1) Make human relations with the opposite side negotiator Keep your relationship with the opposite side friendly Keep out of any conflicts (‫تنش‬ ‫و‬ ‫)تعارض‬ Absorb the collaboration of the other parties Mutual Understanding (‫)تفاھم‬ Agreement (‫)توافق‬ Write down the agreements in a legal (Contractual) but friendly format. 5 Major Principles of Negotiation (Principle 2) Try to identify any and all interests which you are looking for Try to evaluate any and all interests which you are driving at Try to arrange them on the basis of sequence of priority Consider the legitimate interests of the other side Go to the negotiation in order to find the meeting point of the legitimate interests of both parties 5 Major Principles of Negotiation (Principle 3) Anticipate (Forecast) what are the issue which will be arise on the negotiation table (Expect what are the problems) Do not enter to the negotiation without any solutions Do not enter with only one solution – A good Soldier shall participate in the battle with a riffle full of bullets not with one bullet – Why not one? The one which is acceptable for you, maybe is not acceptable for him Why we should this? We do not negotiate with angels, machines, … We negotiate with human beings The Job Description of the negotiator is Problem Solving which should be done through Creative Solution Providing – When you are not in collaboration with the other party (Confrontation!) you can not create new solutions.
  8. 8. How should we implement human relations and friendly collaboration Describe your interests, situation, fundamentals, principles – In the first stage you are completely opposite to each other but after the description they agree in some parts with you! Listen Carefully to the other side – Good Negotiator is a professional speaker and a professional listener. First Listen then Speak. First open the other Side. – Do not Negotiate with Black Box. You are aware of yourself but you should be aware of the other side. – Stand on the top of the information Ladder – Do not blame yourself for saying something which should not be said in this stage. – If the other side is aware of this technique, what should we do? • Open both sides step by step • Do not tell all your statements one time! • Start with your most important reason How should we implement human relations and friendly collaboration Hesitate to show your negative reactions immediately! – Instead Ask why? – You should not tolerate the load of the proving the wrong – The first judgment may be wrong – Example: • Would you please explain • why your company • still • has such a viewpoint (attitude) (not position!) Do not attack the other side! If he is telling lie, if he is in a weak position, let him and encourage him to speak more – Do not tell him that you are lying. – The information which we have in this side of the table is different from the information which is now delivered (given) to the table. – ‫بگيريد‬ ‫رو‬ ‫کالمتون‬ ‫زھر‬. How should we implement human relations and friendly collaboration Do not impose him (force him), convince them, persuade him – They will resist – Do not dictate – Help him decide correctly, do not let him go to the negative side – Lubricate the decision making, Assist him, facilitate, accelerate his decision making Put yourself in his shoes specially in case of confrontation – As a result you will be more logical and fair Mention his name between the negotiation process occasionally. – Business Cards – Name of the participants – Use 1 Cal and 1 Sec for “Dearest” How should we implement human relations and friendly collaboration Do not attack the other person. It will kill the negotiation – You are a civil engineer. You do not speak about law! (Governing law or applicable law) – You are not familiar with the issue. It is a good time to learn! Do not leave the session while you are in fight, … – You should pay so much to come back to the session Do not ruin the trust of the other side – ‫گويی‬ ‫تناقض‬ – ‫بندی‬ ‫خالی‬ – ‫گويی‬ ‫دروغ‬ – Prove that you are fair, logical and reliable Do not let the negative points push to personal negative judgments about the other side. How should we implement human relations and friendly collaboration The other side is not your personal enemy! Do not ridicule the other party. If he is mistaken do not highlight or enlighten his mistakes. – You know nothing about the L/C. Go and bring your daddy! – First credit his wrong answer – Indirect training – Ask your question in another proper way What’s the role of Planning If you fail to plan, you plan to fail
  9. 9. Negotiation A Negotiation Style Avoider (‫کننده‬ ‫)اجتناب‬ – This is not possible! Nobody would do this! – Get out of me! – I do not play. It is selfish. – ‫کاريم‬ ‫سر‬ Competitor (‫)رقابتی‬ – The main issue is that I should win. – I will not follow anybody – Stand Up and come and follow me – ‫نگرفتم‬ ‫حالتو‬ ‫تا‬ ‫طرف‬ ‫اين‬ ‫بيا‬ ‫خودت‬ ‫پاشو‬ Accommodator (‫جو‬ ‫)مصالحه‬ – There is no difference between me and you. I will follow you but kindly pls consider my portion Compromiser (‫کننده‬ ‫)توافق‬ – Give me a guarantee for my acceptance of following you then I will follow you Collaborator (‫کننده‬ ‫مساعی‬ ‫)تشريک‬ – Searches for the best solution for the problem! Negotiation Style Importance of Relationship ImportanceofOutcome Glaser & Glaser (1996). Negotiating Style Profile Accommodate Build positive Relationships. Collaborate Problem solve so both win. Withdraw Take whatever you can. Defeat Winner at any cost. Compromise Negotiation style There is no one unique good negotiation style which is the best for all the situations! You shall be aware of your and the other party’s negotiation style Maybe you should change your negotiation style during one negotiation Two major criteria for selection of the appropriate style is – Importance of long term relationships – Importance of outcome Types of Negotiation Single Issue vs Multiple Issue Single Episodic vs Multi Episodic Offer – Counter Offer Between Main Stakeholder vs Between Representatives
  10. 10. Negotiation Strategies Broadly Distributive: Competitive Situations – Goals in direct conflict – Fixed and Limited Resources – Both parties want to maximize their share – Therefore strategy to maximize share – Managing Information Broadly Integrative: Cooperative Situations – Committed to each other interest – Emphasize on commonalities – Both parties achieve their goals therefore win-win – Reliant on discussion and trust A sample for a Bad Negotiation! Position Based Negotiation vs Interest based Negotiation – The other party do not accept our position – If we were in his shoes we would not accept this position – I will be happy with lower than my position – The standard or norm is lower than my position and I can not justify my position 100 Meter Square Apartment – We Will lock in this situation • I will believe that it worth 300 Million • Negotiation is give and Take, is tit for tat, compromise. • The Other party will lock himself • The weaker will give the first advantage The Dog of the neighbor Communications Importance in Negotiations Negotiation is a process by which negotiators communicate their own interests, positions, and goals and in return make sense of those of the other party and of the negotiation as a whole.