The document outlines eight steps for effective negotiations: 1) Prepare objectives and information in advance; 2) Argue to exchange information and identify opportunities; 3) Signal when stances have changed; 4) Propose entry offers that address key issues; 5) Package proposals by adjusting variables; 6) Bargain through trading concessions; 7) Close by confirming agreement and resolving ambiguities; 8) Adjourn when needs be to reconsider objectives or get new information. Preparation involves understanding interests, positions, and styles of both parties to have a successful negotiation.

1. Eight Steps of Negotiations Prepare Argue Signal Propose Package Bargain Close Agree

2. PREPARE Prepare carefully well in advance Prepare for negotiations and not defending Be ready for opportunities Reconsider your preparation items

3. Five key areas of preparation Objectives Information Concessions Strategy/Style Tasks

4. Preparation- objectives Define what outcome you want to achieve from the negotiation- ISSUES The realistic expectation against each issues- INTEND Minimum acceptable position on intends- MUST ACHIEVE or AVOID What is the ideal outcome you want – WISH LIST

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. Elements of Negotiations VALUES POSTION NEEDS NEEDS SATISFIERS NEEDS BLOCKERS

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. POSITIONS An opening demand that the negotiator believes will satisfy need. Positions can be changed in skillful negotiations

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. NEED SATISFIERS These bring focus to the negotiation and create a positive environment , which can then be used to change positions

11. NEED BLOCKERS They are threatening and do not lead to collaborative negotiations

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. 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. BATNA- Best Alternatives in a Negotiation Agreement Ideal----------------------------------A Intend---------------------------------B Must avoid--------------------------- C Negotiations Zone

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. 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. Understand the preferred styles of each other DEFERENTIAL- Respect and Hierarchy SUBSTANTIVE- Material issues RELATIONAL- Trust and good faith PROCEDURAL- Agenda and rules

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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