Negotiation Skills


Published on

Published in: Technology, Business

Negotiation Skills

  1. 1. Negotiating Skills To provide you with the skills to plan & implement successful negotiation <ul><li>At the end of the course you will appreciate how to: </li></ul><ul><li>Establish objectives to be achieved by negotiation. </li></ul><ul><li>Identify a range of outcomes from the desired ideal to the ultimate acceptable fall back position. </li></ul><ul><li>Use interpersonal skills to influence others in both informal and formal situations to achieve your objectives. </li></ul>
  2. 2. <ul><li>Act assertively to achieve objectives </li></ul><ul><li>Reduce resistance & minimise conflict </li></ul><ul><li>Know how & when to accept the opinions, values & will of others </li></ul><ul><li>Work to achieve a WIN-WIN situation </li></ul>Negotiating Skills
  3. 3. Negotiation occurs when there is something of value that you wish to attain <ul><li>Need is the negotiators starting point </li></ul><ul><li>Need is also the weakness that can be exploited </li></ul><ul><li>Negotiation is also a process that is of benefit to all parties </li></ul>Negotiating Skills
  4. 4. Ineffective Negotiation is about: <ul><li>Non mutual benefit </li></ul><ul><li>Compromising for no return </li></ul><ul><li>Playing games </li></ul>Think of a time when a negotiation has not been successful. Can you identify what went wrong? When you have purchased a house or a car – Did you negotiate terms? Were you successful? Negotiating Skills
  5. 5. Effective Negotiation <ul><li>Is an important communication skill </li></ul><ul><li>Reaches the agreement that best meets both sides requirements </li></ul><ul><li>Should be conducted in a professional manner </li></ul><ul><li>Be a solid foundation on which to build future relationships </li></ul>Negotiating Skills
  6. 6. Preparing yourself <ul><li>Identify your objectives </li></ul><ul><li>Identify targets </li></ul><ul><li>Know your resistance point </li></ul><ul><li>Adopt the most suitable style </li></ul><ul><li>Time the interaction correctly </li></ul><ul><li>Achieve a deal </li></ul>Preparation enables you to : Negotiating Skills
  7. 7. Traditional Negotiation <ul><li>Has two sides Is a form of warfare </li></ul><ul><li>Has opposing objectives Has a short sighted approach </li></ul>Formal Negotiation Favours the party with the strongest power base Limits the likelihood of informal talks Emphasises the letter of agreement Informal Negotiation Emphasises the relationship between the two parties Encourages the spirit of any agreement reached Negotiating Skills
  8. 8. Modern Negotiation - Benefits <ul><li>Enables strategic alliances to be built </li></ul><ul><li>Emphasises partnerships </li></ul><ul><li>Builds relationships </li></ul><ul><li>Is effective long term </li></ul>Outcomes From Negotiation Need to achieve the objective set Be of benefit to all parties Ensuring a WIN/WIN situation Negotiating Skills
  9. 9. Identifying Possible Outcomes <ul><li>Write down all your objectives </li></ul><ul><li>Put them in order of priority </li></ul><ul><li>Identify issues that are open to compromise </li></ul><ul><li>Identify those that are not </li></ul>Classifying Priorities Those that are desirable Those that are acceptable Those that are the minimum you/the organisation require Negotiating Skills
  10. 10. What is influencing? <ul><li>Achieving a result that meets the legitimate needs </li></ul><ul><li>of both sides </li></ul><ul><li>Achieving long lasting results </li></ul><ul><li>Improving the relationship of the people involved </li></ul>Legitimate is the important word here. Needs must be legitimate if influencing is to be successful. For influencing to be effective it has to be sustainable. Negotiating Skills
  11. 11. What is influencing? The MIGHT IS RIGHT style of influencing always fails. People can appear to agree but over time they may show their disagreement by leaving the workplace. A boss who forces his influence onto his work-team may only see short term gains. The relationship of trust may be destroyed and will be hard to rebuild. When it fails Negotiating Skills
  12. 12. Why is influencing important? <ul><li>Flatter organisation structures need it to be effective. </li></ul><ul><li>Lean is mean – more stress is prevalent in current organisations. </li></ul><ul><li>The rise of the customer – the customer is not always right, but it is our job to make them ‘feel’ right. </li></ul><ul><li>Working across organisations – it’s the only positive way forward. </li></ul><ul><li>The demise of traditional authority – all employees have a vested interest in the future success of any company/organisation. </li></ul>Negotiating Skills
  13. 13. Influencing is not about : <ul><li>Forcing your point of view on others </li></ul><ul><li>Nagging until they agree </li></ul><ul><li>Giving in to someone </li></ul><ul><li>Bargaining </li></ul><ul><li>A debate </li></ul>Dealing with others assertively Speaking with knowledge and confidence Listening to their point of view Appreciating the differences Showing respect It is about Negotiating Skills
  14. 14. The Levers Of Influence <ul><li>Pull Skills </li></ul><ul><li>Creating rapport </li></ul><ul><li>Authentic listening </li></ul><ul><li>Skilful questioning </li></ul>These Pull techniques also involve the effective use of non-verbal communication. Creating rapport : Posture Voice – Tone & Volume Gesture Eye Contact Facial expressions How we occupy our space Consider carefully how you want to build the relationship with someone who you will be negotiating with. Negotiating Skills
  15. 15. The aim is empathy – a non-judgmental state that aims to understand the other person. <ul><li>Authentic Listening is : </li></ul><ul><li>Listen for content </li></ul><ul><li>Listening to the other messages </li></ul><ul><li>Summarising the content </li></ul><ul><li>Summarising the emotion </li></ul><ul><li>Testing your assumptions </li></ul>Authentic Listening Negotiating Skills
  16. 16. Barriers to Listening <ul><li>Dialogue of the deal - Both sides within a discussion, intent on making their own point, may fail to listen to each other. </li></ul><ul><li>Experience - The parties may have had bad experiences of negotiations in the past. </li></ul><ul><li>Familiarity - Can be a crucial disabler when negotiating. </li></ul><ul><li>Skim Listening - Picking up on key words and missing vital parts of the conversation. </li></ul><ul><li>Attention span – Are you focused or distracted? </li></ul>Negotiating Skills
  17. 17. Pull Levers <ul><li>Questioning : </li></ul><ul><li>Have a questioning strategy – </li></ul><ul><li>USE : </li></ul><ul><li>Hypothetical questions </li></ul><ul><li>Defining questions </li></ul><ul><li>Probing questions </li></ul>The aim is to use effective questioning skills to Help build rapport Obtain accurate information Obtain other people’s opinion Negotiating Skills
  18. 18. Assertiveness is <ul><li>Saying what you mean </li></ul><ul><li>Meaning what you say </li></ul><ul><li>Asking for what you want clearly </li></ul><ul><li>Listening to what the other person is saying </li></ul><ul><li>Being honest about what is relevant </li></ul><ul><li>Being prepared to look for a workable compromise </li></ul>Being Assertive during a negotiation is the best way to achieve a win/win outcome. Conduct your conversation with clarity, confidence and an open mind. Negotiating Skills
  19. 19. Recognising Assertiveness Effective body language – how would you describe this? Use assertive language – what is considered assertive language? Never become emotional Angry Resentful Frustrated “ Behaviour breeds behaviour” Keep the temperature low Stay detached Show respect Responding Not Reacting Negotiating Skills
  20. 20. Power In Negotiation <ul><li>Negotiation assumes a “certain equality” between parties </li></ul>Negotiation refers to obtaining something of value that someone else has. The focus is upon mutual benefit. Differing power bases can lead into fighting behaviours. Parties do test each others strengths and probe into just how dependant they are on each other. A balance of power is essential if negotiations are to be successful. Negotiating Skills
  21. 21. Influencing The balance Of Power <ul><li>Facts Expertise Explore Strengthen Authority </li></ul>Facts – The skilled negotiator has all the facts , background history and figures. Even a hardened MD cannot fail to be impressed. Expertise – Again gained by effective preparation. Explore – Pose questions in a non threatening manner . How do we find this solution together. Strengthen – Develop acceptance and trust . Find & implement outcomes that are of interest to both parties. Authority – it is vital that both parties have the authority to make the outcome happen. Negotiating Skills
  22. 22. Negotiation Strategy <ul><li>Opening Exploration Create movement </li></ul><ul><li>Create Closure Finish </li></ul>The Process Agree Boundaries Deny Need Stress the Difference Agree Boundaries – On which the negotiation will focus. Deny the need – A deliberate strategy in which both parties play down their need for a particular outcome. From the outset skilled negotiators will play up the fact that they do not believe the outcome will be successful. Negotiating Skills
  23. 23. Opening Negotiation <ul><li>Set the offer at the most appropriate level </li></ul><ul><li>normally a long way removed from target. </li></ul><ul><li>Respond in a way that is deemed most appropriate, usually rejection. </li></ul>There is no such thing as a first offer that is too good to refuse. Openings within negotiation are like a chess match both parties will begin with an offer that is far removed from target. The opening offer is very rarely a serious commitment. Negotiating Skills
  24. 24. Exploration <ul><li>Identify : Needs Wants Interests </li></ul>Needs – Those things that you feel you cannot do without Wants – Those things that people would prefer to have Interests – The reasons that lie behind the WANTS & NEEDS It allows the parties to explore the situation. Needs & Wants are talked about first. A skilful negotiator can see where the other party expect the final outcome to be. Exploration is important because: Negotiating Skills
  25. 25. Create Movement <ul><li>Be prepared to compromise </li></ul><ul><li>Explore possibilities </li></ul><ul><li>Ask ‘what if?’ questions </li></ul><ul><li>Be clear about the variables </li></ul><ul><li>Exchange </li></ul>During this phase it is vital that if you agree to a concession you get something back in return . Don’t give anything away too easily – people do not value things that have been obtained with little effort. Restate your case – Ensure that the agreement is clear by going over again what has been agreed. Restate everything that you have agreed on. Minimise the perception of what is left to agree. Write it down – It may prompt some questions before the deal is closed. Prevention is better then cure. Firming Up Proposals Negotiating Skills
  26. 26. <ul><li>Keep moving </li></ul><ul><li>Don’t get bogged down in detail </li></ul><ul><li>Focus on issues </li></ul><ul><li>Give recognition </li></ul><ul><li>Give the other party a final </li></ul><ul><li>opportunity to clarify any issues </li></ul>Create Closure Negotiating Skills
  27. 27. Closing <ul><li>List of issues from both sides </li></ul><ul><li>Prepare a draft framework </li></ul><ul><li>Tackle outstanding details </li></ul><ul><li>Record each point as it is agreed </li></ul><ul><li>Agree a process to review </li></ul><ul><li>Agree a procedure for complaints </li></ul>Know when to stop talking The skilled negotiator will not be distracted from their task. Always remember that the whole point of negotiation is that two parties have something of value. Negotiating Skills
  28. 28. Failing Negotiation Initial commitment may be based on incomplete information Negotiation may be based on false assumption People communicate using their mind & body through the use of emotion. Misunderstandings can arise because of stereotyping. Tension is caused by emotions which can then lead to stress & anxiety. Listen actively with empathy to reduce the perceived threat and try to show acceptance and understanding. If everyone ignores the pinch then a crunch can be just around the corner. The relationship may suffer as a consequence. The secret of success is to look for the pinch before it becomes a crunch. Negotiating Skills
  29. 29. Approaches to Resolve Conflict Skilful listening to improve understanding Assertion skills Influence by using interpersonal skills Emphasise issues, break up large issues Make careful note of actions decided Facilitation – Helping people communicate with one another. Conciliation or mediation – Working towards resolving an issue whilst remaining independent. Advocacy – negotiating on behalf of one party. Negotiating Skills
  30. 30. Outcomes From Negotiation In a win/lose situation one party may feel threatened by the other and react in a defensive or aggressive way to ensure they don’t get beaten into submission. In a lose /lose situation, both parties have lost and no-one gets what they really want. In a win/win situation, this provides the basis for a long lasting partnership that can be mutually rewarding. Negotiating Skills
  31. 31. Stages to Successful Negotiation <ul><li>Exchange information </li></ul><ul><li>Assess Wants, Needs, Information </li></ul><ul><li>Find the middle ground which is fair & reasonable to both </li></ul><ul><li>Firm up a mutually agreeable solution </li></ul>Recognise these stages, work towards them. Use the notes in this course to help future Negotiations. Create a learning log – a simple diary will do. Assess every negotiation you are involved in. What went well? What could be better? What will you do differently next time? Negotiating Skills
  32. 32. A successful Negotiator can <ul><li>Build Rapport </li></ul><ul><li>Network effectively </li></ul><ul><li>Work in a team </li></ul><ul><li>Build consensus </li></ul><ul><li>Be persuasive </li></ul><ul><li>Deal with conflict </li></ul>Negotiating Skills