Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Fundamental of Successful Negotiations (slides)


Published on

Fundamental of Successful Negotiations as presented during training at IPA Brunei in July 2017.

Published in: Leadership & Management
  • Login to see the comments

Fundamental of Successful Negotiations (slides)

  1. 1. JOHAN IRWAN KAMAROZAMAN Certified Directive Communication International Trainer FUNDAMENTAL OF SUCCESSFUL NEGOTIATIONS
  2. 2. Leap Leadership Academy | 2
  3. 3. Leap Leadership Academy | The world is changing 3Source: A Whole New Mind, Dan Pink 18th Century 19th Century 20th Century 21st Century AGRICULTURE AGE Farmer INDUSTRIAL AGE Factory Worker INFORMATION AGE Knowledge Worker CONCEPTUAL AGE Concept Worker
  4. 4. Leap Leadership Academy | The way we do work has changed 4 < 20th Century 21st Century > Process based Concept based Management skills is crucial Leadership skills is crucial Quality & Productivity Creativity & Innovation Less Competition Stiff Competition
  5. 5. Leap Leadership Academy | What is negotiation? 5 Negotiation is the process of two or more parties working together to arrive at a mutually acceptable resolution of one or more issues.
  6. 6. Leap Leadership Academy | Negotiation is NOT 6 When your boss gives you an order and your ONLY choice is to do what he or she says. If an outsider is brought in to make a decision between parties using arbitration, the parties are legally bound to follow the arbitrator’s decision When parties are not working together to reach an agreement A contest with other parties. We are not competing with the aim of making sure we crush the opposition
  7. 7. Leap Leadership Academy | Negotiation is 7 We aiming to do the best we can for ourselves We are less interested in the sporting aim of competing and more interested in looking out for ourselves You want to do well for yourself, but not because you want to beat someone else Effective negotiation is held in its proper context as a mechanism for pursuing interest.
  8. 8. Leap Leadership Academy | Features in negotiation 8 • Minimum two parties • Predetermined goals • Expecting Outcome • Resolution and consensus • Parties will modify their positions • Parties should understand the purpose of negotiation
  9. 9. Leap Leadership Academy | Why do we negotiate? 9 • To reach an agreement • To beat opposition • To settle an argument • To make a point
  10. 10. Leap Leadership Academy | Negotiation is not compromising 10 NEGOTIATION IS PROBLEM SOLVING
  11. 11. Leap Leadership Academy | 11 Context Setting
  12. 12. Leap Leadership Academy | 4 Steps to Effective Negotiation 12 1 Prepare 2 Negotiate 3 Close 4 Perform
  13. 13. Leap Leadership Academy | Should I negotiate? 13 How do you feel about the negotiation? Benefits vs Cost / Risk
  14. 14. Leap Leadership Academy | Know yourself and your goals 14 “If you don’t know where you are going, you might end up some place else.” — Yogi Berra
  15. 15. Leap Leadership Academy | What is your alternatives? 15
  16. 16. Leap Leadership Academy | Types of negotiation 16 Concern for our interest Concernforotherinterest Hard Adversarial Soft Accommodating Avoidance Mutual Gains Compromise
  17. 17. Leap Leadership Academy | Think win-win 17
  18. 18. Leap Leadership Academy | 4 Key Points for Win-win 18 • Separate PEOPLE from the PROBLEM • Focus on INTEREST not POSITIONS • Generate variety of OPTIONS for MUTUAL GAINS • Insist on using OBJECTIVE CRITERIA Principle Based Negotiation
  19. 19. Leap Leadership Academy | 7 Elements of Effective Negotiations 19 Interests Standards Options Relationship Communication Alternatives Commitment
  20. 20. Leap Leadership Academy | Position based vs interest based 20
  21. 21. Leap Leadership Academy | Interest based negotiation 21 • Things you say you want • Demands • Terms and Conditions POSITION • The underlying motivations • Needs and concerns • Fear and inspirations INTEREST POSITION INTEREST
  22. 22. Leap Leadership Academy | Ice Berg Perception 22 • Look behind positions for underlying interests • Ask “why?” and “why not?”
  23. 23. Leap Leadership Academy | 23
  24. 24. Leap Leadership Academy | 24 The purpose of negotiation is to satisfy your interest and the other side’s.
  25. 25. Leap Leadership Academy | DEVELOPING OPTIONS 25
  26. 26. Leap Leadership Academy | Developing Options 26 4 major obstacles to developing mutual gain: • Premature judgement • Searching for a single answer • Assumption of a fixed “pie” • Thinking that “solving the problem is their problem.”
  27. 27. Leap Leadership Academy | DEVELOPING OPTIONS 27 Instead of dividing the pie, why not enlarging the size of the pie?
  28. 28. Leap Leadership Academy | What is an options? 28 • An option is a possible agreement or part of one • An option is not a commitment • Options are exploring what we could do. • Explore options before making any decision will help on satisfying mutual interest.
  29. 29. Leap Leadership Academy | Brainstorming 29
  30. 30. Leap Leadership Academy | Before Brainstorming 30 • Define your purpose • Choose a few participants • Change the environment • Design an informal atmosphere • Choose a facilitator
  31. 31. Leap Leadership Academy | Developing options through brainstorming 31
  32. 32. Leap Leadership Academy | Brainstorming Rules 32 • No criticism • No commitment • Just invent ideas Record the ideas in full view
  33. 33. Leap Leadership Academy | After Brainstorming 33 • Star the most promising ideas • Invent improvements for promising ideas • Set up a time to evaluate ideas and decide
  34. 34. Leap Leadership Academy | Inventing options enhances the negotiators power 34 Invent options that help meet the interest of both sides Do not evaluate during the brainstorming - evaluate after the brainstorming
  35. 35. Leap Leadership Academy | UNDERSTANDING BATNA 35 B A T N
 A est lternative o a egotiated greement *It is the best you can do WITHOUT THEM.
  36. 36. Leap Leadership Academy | Should I reveal my BATNA? 36 If you have a strong one, it is worth revealing it to your opponent.  If you have a weak one, however, it is better to keep that detail hidden.
  37. 37. Leap Leadership Academy | 37 "The reason you negotiate is to produce something better than the results you can obtain without negotiating.” — Roger Fisher & William Ury When a proposal is better than your BATNA: ACCEPT IT! When a proposal is worse than your BATNA: REJECT IT!
  38. 38. Leap Leadership Academy | Understanding ZOPA - Zone of Potential Agreement 38 Seller Walks Away Seller Desired Price Buyer’s Desired Price Buyer Walks Away Zone of Potential Agreement (ZOPA)
  39. 39. Leap Leadership Academy | Standards: The Power of Objective Criteria 39 Objective criteria are factual pieces of information, independent of the parties in the negotiation, that are relevant to what should or should not be agreed to in that negotiation
  40. 40. Leap Leadership Academy | Human response to fairness 40
  41. 41. Leap Leadership Academy | Three basic points when discussing objective criteria 41 • Frame each issue as a joint search for objective criteria • Reason and be open to reason as to which standards are  most appropriate and how they should be applied • Never yield to pressure, only principle
  42. 42. Leap Leadership Academy | Example of Objective Criteria 42 • Market value • Precedent • Scientific judgement • Professional standards • Efficiency • Costs • Moral standards • Equal treatment • Tradition • Reciprocity
  43. 43. 4 I N S A N I T I E S B A R R I E R S T O C O M M U N I C AT I O N
  44. 44. 1 . C O M M O N S E N S E I S O B V I O U S
  45. 45. 2 . I F I C A N D O I T, O T H E R S S H O U L D B E A B L E T O D O I T
  46. 46. 3 . P E O P L E S H O U L D B E FA I R
  47. 47. 4 . T R U T H I S U N I V E R S A L
  48. 48. We don’t see the world as it is, we see it as who we are.
  50. 50. Leap Leadership Academy | 51 D E L E T I O N1 D I S T O RT I O N2 G E N E R A L I Z AT I O N3
  51. 51. Leap Leadership Academy | 52 D E L E T I O N1 R E T I C U L A R A C T I VAT I N G S Y S T E M
  52. 52. Leap Leadership Academy | 53 D I S T O RT I O N2 Assumptions created from: 1. Past experience 2. What we have been told 3. Meaning we give to an event
  53. 53. Leap Leadership Academy | 54 G E N E R A L I Z AT I O N3 We draw global conclusions based on one or two experiences.
  54. 54. Leap Leadership Academy | 55 } Create PERCEPTION D E L E T I O N1 D I S T O RT I O N2 G E N E R A L I Z AT I O N3
  55. 55. P E RC E P T I O N i s R E A L I T Y
  56. 56. M A C L E A N ’ S M O D E L Our brain feels about 30,000 times faster than it acts, and it acts about 30,000 times faster than it reasons.
  57. 57. C O L O R E D G L A S S S Y N D R O M E Most of us look the world and interpret it based on their own perspective.
  58. 58. What is Colored Brain? VS
  59. 59. C O L O R E D B R A I N C O M M U N I C AT I O N I N V E N T O RY
  60. 60. Leap Leadership Academy | 63 GREEN BRAIN
  61. 61. Leap Leadership Academy | 64 RED BRAIN
  62. 62. Leap Leadership Academy | 65 BLUE BRAIN
  63. 63. Leap Leadership Academy | 66 PURPLE BRAIN
  64. 64. ▪ Detailed oriented ▪ Highly organized ▪ Create system ▪ Make things practical. ▪ Slow in action / decision ▪ Over focus in details at the expense of big picture. ▪ Friendly ▪ Considerate ▪ Concern for people ▪ Team player. ▪ Emotional ▪ Overly concern for people ▪ Misunderstood for mixing up work & personal. ▪ Objective driven ▪ Think through before acting ▪ Analytical ▪ Focus. ▪ Insensitive, ▪ inflexible, ▪ non-expressive. COLORED COMPARISON Processor Strengths Gaps ▪ Action driven ▪ Fluid ▪ Mobile and Adaptable ▪ Communicate well. ▪ Make rash decision ▪ Disorganize ▪ Chaotic ▪ Impatient. GREENREDBLUEPURPLE
  65. 65. Leap Leadership Academy | Identifying Need 68 The key to successful negotiation is to ask intelligent questions and listen closely to the answer.
  66. 66. Leap Leadership Academy | Asking intelligent questions 69 O P E N Q U E S T I O N C L O S E D Q U E S T I O N HOW? Who, what, when, how, where WHY? Do you, have you, is it, can you, etc. To provide information WHEN TO USE? Gain clarity/confirmation on choice/decision Lengthy answerWHAT? Yes or no answer
  67. 67. Leap Leadership Academy | Ask question to change people’s mind 70
  68. 68. Leap Leadership Academy | Albert Mehrabian on non-verbal communication 71
  69. 69. Leap Leadership Academy | Building Rapport 72
  70. 70. Leap Leadership Academy | Matching and Mirroring 73 When 2 persons are in rapport, they are matching each other
  71. 71. Leap Leadership Academy | Matching and Mirroring 74 When 2 persons are not in rapport, they are not matching each other
  72. 72. Leap Leadership Academy | Body Language 75
  73. 73. Leap Leadership Academy | Speed and Volume 76
  74. 74. Leap Leadership Academy | Keywords 77
  75. 75. Leap Leadership Academy | Usage of Metaphor 78
  76. 76. Leap Leadership Academy | BODY LANGUAGE SIGNS 79
  77. 77. Leap Leadership Academy | 80 When dealing with people, let us remember we are not dealing with creatures of logic. We are dealing with creatures of emotion — Dale Carnegie
  78. 78. Leap Leadership Academy | 81 Mac Lean’s Model I think rationally here I feel here I re-act here It enter here
  79. 79. Leap Leadership Academy | 82 Open-Loop vs Closed-Loop
  80. 80. Leap Leadership Academy | 83 Emotions are contagious
  81. 81. Leap Leadership Academy | 84 Emotion vs Cognitive Intelligence
  82. 82. Conscious mind Avoid Pain or Gain Pleasure Apparent Reasoning Why? Subconscious mind Underlying Reason Underlying Reason Underlying Reason Underlying Reason Underlying Reason T H E I C E B E R G P E R C E P T I O N W H AT W E S E E I S A R E S U LT O F W H AT W E C A N N O T S E E 85
  83. 83. W H AT W I L L Y O U D O W I T H R M 2 0 M I L L I O N ? 86
  84. 84. Leap Leadership Academy | 87 T H E 8 E M O T I O N A L D R I V E R S
  85. 85. Leap Leadership Academy | Five concern when negotiating 88 Appreciate Autonomy Affiliation Status Role
  86. 86. Leap Leadership Academy | How to influence 89 Source: Influence, Dr. Robert Chialdini
  87. 87. © J O H A N I R WA N K A M A R O Z A M A N T H A N K Y O U Johan Irwan