As part of the Institution of Mechanical Engineers' service to members, engineers and professionals in technical industries worldwide, we host a series of free training webinars. The slides were used in a free training webinar on negotiation skills. The webinar explores the process of negotiation, the importance of attitude and the range of behaviours useful to negotiation

1. LEARNING &
DEVELOPMENT
“THE MOST SUCCESSFUL
PEOPLE AND BUSINESSES
NEVER STOP LEARNING”
This session will start at 12:45
Attitude and understanding:
Improving your negotiation
skills.

2. User guide
 Questions/ comments: chat box
 Host only
 All participants
Write here…..

3. You are a leader responsible for a project due to be delivered
on Wednesday (today is Friday). You are behind schedule and
it will reflect badly on you (and the team) if the project is late
so you will have to demand that the project team work some
of the weekend and late early next week (they won’t like it).
One of the team comes to you and asks if he could have
Thursday off. Would you:
1. Agree to the day off
2. Say no to the day off
3. Explain that the project is late and that you can’t
agree to the day off as the rest of the team will
suffer even more
4. Ask why the team member wants a day off at such
short notice
5. Something else…

4.  Define what we mean by negotiation
 Briefly look at the process
 Explore the importance of attitude
 Identify a range of behaviours useful in
negotiations
 Explore “perceived value”
Agenda

5.  …working side by side to achieve mutually
beneficial and satisfactory results
 …a process through which parties move from
their initially divergent positions to a point
where agreement can be reached
What is Negotiation?

6. Types of Negotiation
Personal
Business
FinancialNon-Financial
Family
Friends
Partners
Kids
etc
Project team
members
Boss
Peers
Other colleagues
Purchasing and
selling goods and
services
Selling/buying car
House

7. The Negotiation Process
Preparation
Opening
Analysing/Influencing
Deal making
Closure
Documentation

8. The importance of attitude…
Distributive

9. The importance of attitude…
Integrative

10. Attitude
Focusonownneeds
Focus on other’s needsLo
Lo
Hi
Hi
Covey’s “win/win” matrix
Win/Win
Lose/Lose
Win/Lose
Lose/Win

11. Relationships
Personal
Business
FinancialNon-Financial
Family
Friends
Partners
Kids
etc
Project team
members
Boss
Peers
Other colleagues
Purchasing and
selling goods and
services
Selling/buying car
House

12. ProfitImpact
Supply RiskLow
Low
Hi
Hi
Kraljic matrix
Leverage Items Strategic Items
Non-critical Items Bottleneck Items
Exploitation of
purchasing power
Diversify, balance or
exploit
Efficient processing Volume assurance

13. Supplier Perspective
AccountAttractiveness
Relative ValueLo
Lo
Hi
Hi
Supplier Preferencing matrix
Development
Nurture client
Expand business
Seek new
opportunities
Core
Cosset client
Defend vigorously
High service and response
Nuisance Exploitable
Give low attention
Lose without pain
Drive premium price
Seek short-term
advantage
Risk losing customer

14. Attitude
Focusonownneeds
Focus on other’s needsLo
Lo
Hi
Hi
Covey’s “win/win” matrix
A B

15. Values Iceberg
VALUES
BELIEFS
ATTITUDES
CAPABILITIES
BEHAVIOURS
EXPECTATIONS

16. Behaviour
Focusonownneeds
Focus on other’s needsLo
Lo
Hi
Hi
Compromising
Covey cf Thomas-Kilmann

17. Variables
A B
Important to me Important to you

18.  Consider ALL the variables – be creative
 Identify those that wouldn’t cost much to give
way on
 Identify the key ones for you and ‘how much’
you really need of each
 Emphasise the value of concessions you make
 Downplay the value of concessions you
receive
Variables

19.  How much is a bottle of water worth?
 How much would you pay for it if you
were…
 Standing next to a free water cooler with an empty
bottle?
 In a country where you can’t drink the tap water?
 Close to a shop where the price of a bottle is £1?
 Close to a shop where the price of a bottle is £2?
 Dying of thirst in a desert?
Perceived value…

20.  If you were buying my car…
 “The Life of Brian”
Perceived value…

21.  Consider ALL the variables – be creative
 Identify those that wouldn’t cost much to give
way on
 Identify the key ones for you and ‘how much’
you really need of each
 Emphasize the value of concessions you make
 Downplay the value of concessions you
receive
 Remember perceived value is what matters
Variables

22.  Attitude is key to successful negotiation
outcomes
 Attitude is even important in the planning
stage
 Relationships are nearly always important
 A range of behaviours will enable us to better
maintain relationships
 Variables are the way in which we are able to
make ‘bigger pies’
Summary

23. Contact us
 NAME: Sayuri Espinoza
 EMAIL: s_espinoza@imeche.org
 OFFICE: +44 (0) 20 7304 6922
 FAX: +44 (0) 20 7304 6845
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