Negotiation Skills


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This presentation will help in developing one's negotiation skills which will be of great help in daily life.

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Negotiation Skills

  1. 1. Negotiation Skills My father said: "You must never try to make all the money that's in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won't have many deals.” J. Paul Getty
  2. 2. Why Negotiate? Gavin Kennedy in his book The New Negotiating Edge says.. ‘ Animals do not negotiate. They use violence or the threat of violence to get what they want, whether it be food, a mate or territory.’ Have you ever seen 2 dogs negotiate over a bone? ‘ Trade is the human foundation of human civilisation. It is what makes humans different from animals.’ ‘ Negotiation is anathema to tyrants, who usually want something for nothing and do not recognise a need for another person’s voluntary consent before they get what they want’
  3. 3. Negotiation – What is it? ‘ The process by which we search for the terms to obtain what we want from somebody who wants something from us’ Gavin Kennedy Confer with others to reach a compromise or agreement. Concise Oxford Dictionary To negotiate is to trade something we have for something we want. Anon ‘ Negotiation is an explicit voluntary traded exchange between people who want something from each other’ Gavin Kennedy
  4. 4. Some Decision Making Tools for Negotiation: Persuasion : Usually the first method we choose when we want something. Useful when interests or opinions are the same. Giving in: This is not the easy way out, and sometimes it’s just not worth continuing if the cost (in any terms) is too high. Coercion: This could simply be stating your options, ‘I could take my business elsewhere’. It could also be gentle reminders or unspecified consequences right up to threats. Threats are not useful in a negotiation situation as they erupt in full blown battles. Problem Solving: Works well when both parties have a strong relationship, where you trust each other, and share the problem.
  5. 5. When do we Negotiate? When we need someone’s consent When the time and effort of negotiating are justified When the outcome is uncertain Source: The Negotiate Trainers Manual 1996 p6.
  6. 6. Negotiating Behaviour Gavin Kennedy (The New Negotiating Edge) describes 3 types of behaviour that we can display and encounter when in a negotiating situation RED BLUE PURPLE 7
  7. 7. RED Behaviour Manipulation Aggressive Exploitation Always seeking the best for you No concern for person you are negotiating with Taking People behave in this manner when they fear exploitation by the other party, but by behaving this way to protect themselves, they provoke the behaviour they are trying to avoid. 8
  8. 8. BLUE Behaviour <ul><li>Win win approach </li></ul><ul><li>Cooperation </li></ul><ul><li>Trusting </li></ul><ul><li>Pacifying </li></ul><ul><li>Relational </li></ul><ul><li>Giving </li></ul>Kennedy talks of a ‘behavioural dilemma’, do you cooperate (blue) or defect (red) ? Can you trust the other person? And to what extent? Trusting someone involves risk, on the one hand being too trusting is naïve and on the other, not trusting at all can create deceitful behaviour. The answer is to merge blue and red behaviour into purple. 9
  9. 9. PURPLE Behaviour <ul><li>Give me some of what I want (red) </li></ul><ul><li>I’ll give you some of what you want ( blue ) </li></ul><ul><li>Deal with people as they are not how you think they are </li></ul><ul><li>Good intentions </li></ul><ul><li>Two way exchange </li></ul><ul><li>Purple behaviour incites purple behaviour </li></ul><ul><li>Tit for tat strategies </li></ul><ul><li>Open </li></ul><ul><li>People know where they stand </li></ul><ul><li>Determination to solve problems by both sets of criteria of the merits of the case and/or the terms of a negotiated exchange </li></ul>To the red behaviourist the message is loud and clear, ‘You will get nothing from me unless and until I get something from you’. 10
  10. 10. The Four Phases of Negotiation PLAN DEBATE PROPOSE BARGAIN 11
  11. 11. Closing the Negotiation <ul><li>Summary Close Summarise the details of the conditions and the offer, and ask for agreement. </li></ul><ul><li>Adjournment Close Useful where there remains some small differences. It gives both parties time to consider the final agreement. </li></ul><ul><li>Final offer close Make it clear that this is your final offer by choosing the right words, tone and body language. Create an atmosphere of decisiveness, gather your papers together as though getting ready to leave. </li></ul>35
  12. 12. Negotiation Check List 42 <ul><li>Interrupting </li></ul><ul><li>Attacking </li></ul><ul><li>Blaming </li></ul><ul><li>Talking too much </li></ul><ul><li>Sarcasm </li></ul><ul><li>Threats </li></ul><ul><li>Taking it personally </li></ul><ul><li>Closed body language </li></ul><ul><li>Actively listen </li></ul><ul><li>Question for clarification </li></ul><ul><li>Summarising </li></ul><ul><li>Test commitment </li></ul><ul><li>Seeking & giving information </li></ul><ul><li>Encourage two way conversation </li></ul><ul><li>State and plan your proposal – then summarise </li></ul><ul><li>Use the ‘if you ….then we’ll’ principle </li></ul>Avoid Good Practice
  13. 13. Negotiating Style Avoidance Style Competing Style Collaborative Style Accommodating Style Uncooperative Cooperative Assertive Unassertive Compromising Style
  14. 14. BATNA <ul><li>“ Best Alternative To a Negotiated Agreement” </li></ul><ul><ul><li>List your alternatives </li></ul></ul><ul><ul><li>Evaluate your alternatives </li></ul></ul><ul><ul><li>Establish your best as your BATNA </li></ul></ul><ul><li>Have a Reservation Point – the least you will accept </li></ul><ul><li>List their alternatives – their BATNA </li></ul>
  15. 15. Thank You