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Negotiationsteps 110519055410-phpapp01

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  • 1. Eight Steps of Negotiations         Prepare Argue Signal Propose Package Bargain Close Agree Negotiation steps by Kinshook Chaturvedi, Manager Signal & Train Control at DELHI METRO RAIL CORPORATION LIMITED on May 19, 2011
  • 2. PREPARE     Prepare carefully well in advance Prepare for negotiations and not defending Be ready for opportunities Reconsider your preparation items
  • 3. Five key areas of preparation      Objectives Information Concessions Strategy/Style Tasks
  • 4. Preparation- objectives  Define what outcome you want to achieve from the negotiation- ISSUES  The realistic expectation against each issuesINTEND  Minimum acceptable position on intendsMUST ACHIEVE or AVOID  What is the ideal outcome you want – WISH LIST
  • 5. Step 1-Preparation- Objectives  Do the same for your opponent – ISSUES, INTEND, MUST ACHIEVE & WISH LIST  As negotiations progress keep your objectives under constant review: are they still realistic? Should your INTEND be boosted by a few WISH LIST items? Should you move on an INTEND to protect a MUST?
  • 6. Elements of Negotiations  VALUES  POSTION  NEEDS  NEEDS SATISFIERS  NEEDS BLOCKERS
  • 7. VALUES  Deeply held preferences that shape our goals and means to fulfill them. Transmitted through socialization and enduring. Values are shared and often culture specific . Values create needs that we want to fulfill.
  • 8. POSITIONS  An opening demand that the negotiator believes will satisfy need.  Positions can be changed in skillful negotiations
  • 9. NEEDS  Needs are specific in a negotiation , but are derived from the values we hold. They have to be dug out by skillful questioning and then a suitable need satisfiers can be used to move the negotiation forward .  If we are not clear about our needs we may bargain away some thing we value
  • 10. NEED SATISFIERS  These bring focus to the negotiation and create a positive environment , which can then be used to change positions
  • 11. NEED BLOCKERS  They are threatening and do not lead to collaborative negotiations
  • 12. Tactics of Negotiation  ATTACK- creates negative energy  EVADE- can be used meaningfully  INFORM- clears the environment  OPEN- helps in understanding needs  UNITE- build rapport – Emphasize common ground- reframe – propose solutions
  • 13. PREPARATION- Information  Research both parties  Analyze the basis of power for both  Do SWOT for both  Prepare questions in advance  What is the BATNA of the opponent  What is their awareness in regard to your issues and needs  Brutally admit to assumptions and biases
  • 14. BATNA- Best Alternatives in a Negotiation Agreement  Ideal----------------------------------A  Intend---------------------------------B Negotiations Zone  Must avoid--------------------------- C
  • 15. PREPARATION- Concessions  Where can we be flexible?  What concessions can we make?  What can we give in order to what we want – TRADE  What value the concessions have to the other party?  What will you ask in return?
  • 16. PREPARATION-Strategy  Keep it SIMPLE and FLEXIBLE  Avoid confusing strategy ( means) with objectives ( objectives)  E.g. Take the train ( strategy ) to London (objectives ). If you meet a “ gate “ adjourn or reconsider .
  • 17. Understand the preferred styles of each other  DEFERENTIAL- Respect and Hierarchy  SUBSTANTIVE- Material issues  RELATIONAL- Trust and good faith  PROCEDURAL- Agenda and rules
  • 18. Understand your personal style  IMAGINATIVE- creative , intuitive, integrative and inspiring  FACTUAL- clear, focused, informed , verify  RELATIONAL- solve conflict,listen, encourage, listen and maintain relations , constructive  ANALYTICAL- logical and process oriented  EVALUATIVE- weigh , measure and moniter
  • 19. PREPARATION- Tasks  Leader- conducts the negotiation, gives information, expresses opinions, makes proposals, trades concessions.  Summarizer- asks questions to test understanding, draws attention to , clarifies , summarizes to buy thinking time, confirms areas of disagreement and agreement . Does NOT give personal opinions, information's, and concessions, Observer- watches, listens, records and tries to understand the motivation , concerns, priorities, & inhibitions, 
  • 20. STEP 2- ARGUE  It is an opportunity to –          Exchange information Review issues Structure expectations Test assumptions Probe motives Explore opportunities Identify inhibitions, & chinks Influence, persuade & inform Review sanctions & concessions
  • 21. STEP 4- Signal  Signals indicate change in stance  They are verbal or non verbal  When opponent moves from absolute to qualified statements it is a signal  Listen , reward, expand and confirm signal  Signals indicate when to make a proposal
  • 22. What are qualified statements  Can you explain the reasons?  Suppose I agree to that what can you offer?  Which aspects are you unhappy with?  Why is it important?
  • 23. STEP 5- PROPOSE- ENTRY OFFER  Open realistically- entry offer  A realistic proposal is based on facts that support the proposal  Address the key issues & your intend list  Matches the other parties BATNA
  • 24. Making proposals  Propose – Explain – Summarize  Invite response  If you have to modify the proposal the secondary proposal is tentative  If there is a grievance suggest a solution
  • 25. RECIEVING PROPOPSALS          Never interrupt Question – clarify – summarize Response could be No- this gives the other party the initiative. If Yes- Are you missing an opportunity to add some thing from your wish list? Instant counter proposal- leads to haggling and arguments Adjourn- gives time to consult and think Detailed response – encourages repackaging, to make the proposal more acceptable Considered counter proposal- best response TRY TO GIVE THEM WHAT THEY WANT ON YOUR TERMS
  • 26. More about proposals  If you are asked to concede something from your intend list then add something from your wish list  Remember the strengths of your proposal  Proposal set the agenda  A proposal beats arguments
  • 27. STEP 6 - Package       Packaging adjust the variable without increasing the offer in order to make the proposal more acceptable If you have opened realistically then you may reach a deal without making any adjustment or concessions. In order to do get more out of the other identify inhibitions and interests and address the package to them. If you use a competitive stance likelihood of identifying needs about inhibitions are low , so use a cooperative stance Proposals are solutions to needs Think creatively about all the variables or services while packaging
  • 28. Styles of Negotiations          Co operative Long term relationship Voluntary relationship Trust Private and informal Tolerance of others views Emotional detachment Skilled negotiations Win - win          Competitive on recurring transactions Mandatory relations hip Suspicion Public and formal Intolerance of others Emotional involvement Poor negotiators Win lose
  • 29. Step 7- Bargain  Bargain is any trading activity , You can bargain at any stage of the negotiation: For information For concessions For signals For time’ for the deal    The fundamental rule in bargain is TRADE. You should always have an answer to the question “ What did you get in return? Be prepared to concede in areas of lesser importance to gain in areas of greater importance Put an unreasonable price to an unreasonable demand
  • 30. Step 8- CLOSE  Trial closure is useful device for drawing out issues.  Ask “ Are you saying if I agree to both of those items you will be satisfied?” - this insures if there are hidden issues they will emerge  What is the most important closing opportunity – a minor question that the other party asks about your proposal e.g. – “does that include delivery ?” or “ Would that be back dated?”  If both parties are happy
  • 31.  Closing concessions should be : Conditional ( on the deal) Specific Small  Don’t get greedy  Agree  Agree to what is agreed- any ambiguity gets cleared up easily
  • 32. When to go for adjournment  When you feel you need to reconsider your objectives  New critical information emerges  Your strategy is over taken  Stuck in circular argument  When you need time to repackage
  • 33. How to make adjournments  Summarize the position the negotiation has reached  Withdraw to a private place and discuss with your team before breaking away  Agree on a new meeting date  Give home work to the other party

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