This document provides an overview of effective negotiation strategies and techniques. It discusses that negotiation is a life skill that helps people reach agreements. There are three crucial elements to effective negotiation: information about the parties, time constraints that create pressure, and power dynamics. The document then outlines multiple steps for negotiating, including understanding what each party wants and their needs. It also discusses different power sources, styles of negotiating including collaborative win-win and compromising approaches, and tips for telephone negotiations.

1. Effective NegotiationPresented by : Bijoy Viswanadhan04 Mar 2010bijoyev@yahoo.comRef: You Can Negotiate Anything- Herb Cohen

2. Negotiation is a Life SkillEverybody negotiates all of the time. It helps people reach decisions jointly in a civilized wayYou can get what you want if you recognize that each person is unique and needs can be reconciled ...Most needs can be fulfilled by the way you act and behave. Mutual satisfaction should be your goal and the means of achievement|

3. Three Crucial Elements1. Information: Need to know each parties well to have an effective negotiation2. Time: Time constrains always put both the end under pressure3. Power: This comes thru more of a perception. Negotiation is often a series of episodes, which means that considering your counterpart as a partner or a collaborator is the foundation of trusting, fruitful, and ongoing negotiation. “How the game is played matters more than who wins.”

4. Negotiating Requires Multiple StepsKnowing:What you really want, why and how badly you want or need it, and at what point you're willing to walk away without getting it. Know what the other party wants and why it's important to them. How much do they need or want what you have to offer?What would make them really happy?Are they being honest & sincere? This is vital information if you're going to craft a creative resolution that will satisfy everyone.

5. Elements make Negotiation worthwhileShould be comfortable negotiating on the situationNegotiation should have more chances of meeting the needsNegotiation should be worth enough to meet the expenditure of energy and time spent for it.

6. Five Levels of CommunicationFacts – what someone sees, hears, touches, & perceives the facts to be.Thoughts – what their thoughts about the facts are.Emotions – how they feel because of their thoughts about the facts.Meaning/Importance – why it’s important to them.Actions/Expectations – what they want.

7. Power, an influencing factorcan be a positive force If a seller know the buyer is having a huge purchase power, all the pricing negotiation with that buyer will go on a very flexible manner to such buyer, irrespective of what selling policy that seller is having.

8. Capacity or ability to get things done, to exercise control over people, events, situations, oneself

9. Within a reason, you can get whatever you want, if you aware of your options, if you test your assumptions, if you take shrewdly calculated risks based on solid information, and you believe you have power

10. You have more power sources at your fingertips than you realizePower

11. Power continued..Power of competition- never enter a negotiation without options.Power of legitimacy- printed boards, sign boards, etc.,Legitimacy can be questioned and challenged. Use the power of legitimacy when its advantageous for you to do so and challenge that power when its advantageous for you to do so.The Power of risk takingCalculated risk, incremental risks, Be rational, not impulsive. Never take a risk out of pride, impatience or a desire to get it over with

12. Power continued..Power of commitmentAlways get the commitment of others in any undertaking. Have them take a piece of action so it’s their action as well as yours. Involvement begets commitment, Commitment begets power.Power of expertiseWe don’t question the Tax accountants, physicians, auto mechanics, plumbers, scientistsPower of knowledge of needsIf you can establish a reasonable guess about what someone’s needs are you can predict, with remarkable certainty, what will happen in any interaction

13. Power continued..The power of investment

14. Try and make the other person invest his time, money and energy into the negotiation.

15. If you have something difficult to negotiate – an emotional issue, or a concrete item such as price, cost , interest rate or salary – cope with it at the end of a negotiation, after the other side has made a hefty expenditure of energy and a substantial time investment.

16. The Power of rewarding and Punishing

17. Don’t transform yourself into a paper tiger. In a competitive situation don’t eliminate options and reduce the other side’s stress. Let them wonder until you have received what your are shooting for. In geopolitics the perception that you are willing to take risks and exercise power may prevent opportunism by a potential aggressor.Power Cont’d....The Power of IdentificationYou will maximise your negotiating ability if you get others to identify with you. More often than people care to admit, identification (whether with or against) plays a significant role in negotiations and decision making. That’s why behaving decently and trying to help others is the equivalent of having a canteen of water in the Gobi Desert. (our Politicians)The Power of precedentWorkers in US got 7% pay hike, Canadian autoworkers using the US example, demanded for the same 7% hike and they got it.

18. TimeSince we cannot control time is not possible, we must examine how effectively time for the negotiations process.

19. Japanese example of how they won over Cohen by killing time and knowing his return date and time.

20. Always ask yourself what will happen if I go beyond the deadline? What is the certainty of the detriment or penalty? What is the extent of the punishment? In short how great is the risk I am taking?4 important things – Time ManagementSince most concession, behaviour and settlement will occur at or even beyond the deadline, be patient. True strength lies in ability to sustain the tension. Remain calm but keep alert for the favourable moments to act. Patience pays.

21. Never reveal your deadline but know others deadlines and act accordingly.

22. The “other side” cool and serene as they appear always have a deadline.

23. You cannot achieve a best outcomes quickly, you can achieve it only slowly and perseveringly . As you approach the deadline shift of power occur, presenting a creative solutions and even a turn around by the other side.InformationInformation is power, better information leads to stronger negotiations.