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Eight Steps of Negotiations









Prepare
Argue
Signal
Propose
Package
Bargain
Close
Agree

Negotiation steps
b...
PREPARE








Prepare carefully well in
advance
Prepare for
negotiations and not
defending
Be ready for
opportunitie...
Five key areas of preparation
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




Objectives
Information
Concessions
Strategy/Style
Tasks
Preparation- objectives
 Define

what outcome you want to achieve
from the negotiation- ISSUES
 The realistic expectatio...
Step 1-Preparation- Objectives
 Do

the same for your opponent – ISSUES,
INTEND, MUST ACHIEVE & WISH LIST

 As

negotiat...
Elements of Negotiations
 VALUES
 POSTION
 NEEDS
 NEEDS

SATISFIERS
 NEEDS BLOCKERS
VALUES
 Deeply

held preferences that shape our goals
and means to fulfill them. Transmitted
through socialization and en...
POSITIONS
 An

opening demand that the negotiator
believes will satisfy need.

 Positions

can be changed in skillful
ne...
NEEDS
 Needs

are specific in a negotiation , but are
derived from the values we hold. They have
to be dug out by skillfu...
NEED SATISFIERS
 These

bring focus to the negotiation and
create a positive environment , which can
then be used to chan...
NEED BLOCKERS
 They

are threatening and do not lead to
collaborative negotiations
Tactics of Negotiation
 ATTACK-

creates negative energy
 EVADE- can be used meaningfully
 INFORM- clears the environme...
PREPARATION- Information
 Research

both parties
 Analyze the basis of power for both
 Do SWOT for both
 Prepare quest...
BATNA- Best Alternatives in a
Negotiation Agreement
 Ideal----------------------------------A

 Intend------------------...
PREPARATION- Concessions
 Where

can we be flexible?
 What concessions can we make?
 What can we give in order to what ...
PREPARATION-Strategy
 Keep

it SIMPLE and FLEXIBLE
 Avoid confusing strategy ( means) with
objectives ( objectives)
 E....
Understand the preferred
styles of each other
 DEFERENTIAL-

Respect and Hierarchy

 SUBSTANTIVE-

Material issues

 RE...
Understand your personal
style
 IMAGINATIVE-

creative , intuitive, integrative

and inspiring
 FACTUAL- clear, focused,...
PREPARATION- Tasks


Leader- conducts the negotiation, gives information, expresses
opinions, makes proposals, trades con...
STEP 2- ARGUE
 It

is an opportunity to –










Exchange information
Review issues
Structure expectations
Te...
STEP 4- Signal
 Signals

indicate change in stance
 They are verbal or non verbal
 When opponent moves from absolute to...
What are qualified statements
 Can

you explain the reasons?
 Suppose I agree to that what can you offer?
 Which aspect...
STEP 5- PROPOSE- ENTRY
OFFER
 Open

realistically- entry offer
 A realistic proposal is based on facts that
support the ...
Making proposals
 Propose

– Explain – Summarize
 Invite response
 If you have to modify the proposal the
secondary pro...
RECIEVING PROPOPSALS










Never interrupt
Question – clarify – summarize
Response could be No- this gives th...
More about proposals
 If

you are asked to concede something from
your intend list then add something from your
wish list...
STEP 6 - Package







Packaging adjust the variable without increasing the offer in
order to make the proposal mor...
Styles of Negotiations










Co operative
Long term relationship
Voluntary relationship
Trust
Private and inf...
Step 7- Bargain


Bargain is any trading activity , You can bargain at any
stage of the negotiation:
For information
For ...
Step 8- CLOSE


Trial closure is useful device for drawing out issues.



Ask “ Are you saying if I agree to both of tho...


Closing concessions should be :
Conditional ( on the deal)
Specific
Small



Don’t get greedy



Agree



Agree to w...
When to go for adjournment
 When

you feel you need to reconsider your
objectives
 New critical information emerges
 Yo...
How to make adjournments
 Summarize

the position the negotiation has

reached
 Withdraw to a private place and discuss ...
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Transcript of "Negotiationsteps 110519055410-phpapp01"

  1. 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. 2. PREPARE     Prepare carefully well in advance Prepare for negotiations and not defending Be ready for opportunities Reconsider your preparation items
  3. 3. Five key areas of preparation      Objectives Information Concessions Strategy/Style Tasks
  4. 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. 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. 6. Elements of Negotiations  VALUES  POSTION  NEEDS  NEEDS SATISFIERS  NEEDS BLOCKERS
  7. 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. 8. POSITIONS  An opening demand that the negotiator believes will satisfy need.  Positions can be changed in skillful negotiations
  9. 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. 10. NEED SATISFIERS  These bring focus to the negotiation and create a positive environment , which can then be used to change positions
  11. 11. NEED BLOCKERS  They are threatening and do not lead to collaborative negotiations
  12. 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. 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. 14. BATNA- Best Alternatives in a Negotiation Agreement  Ideal----------------------------------A  Intend---------------------------------B Negotiations Zone  Must avoid--------------------------- C
  15. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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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