Negotiation Skills
Negotiation Skills
AADYA L&D Solutions URL
Learning
Objectives
Understand the relationship between
conflict and negotiation
Understand
Identify the key roles and responsibilities
required by the negotiation team
Identify
Implement an effective negotiation process
•Preparation
•Opening Position
•Bargaining
•Movement
•Closing
Implement
AADYA L&D Solutions URL
What is Negotiation?
Negotiation occurs when conflict exists between groups and both parties are
prepared to seek a resolution through bargaining
AADYA L&D Solutions URL
Conflict &
Negotiation
• Conflict can be solved through
negotiation when:
• There are two are more parties
• There is a conflict of interest
between the parties
• The parties are willing to
negotiate to seek a better
position
• Both parties believe that
entering negotiations as a
better solution than breaking
contact
AADYA L&D Solutions URL
Levels of Conflict
• Intra-Personal
• Conflict exists within the
individual
• Inter-Personal
• Conflict that exists between
individuals
• Intra-Group
• Conflict exists within a small
group
• Inter-Group
• Conflict exists between groups
AADYA L&D Solutions URL
Types of
Negotiations
• Job Roles
• Pay
Day-to-Day Managerial
• Contracts
• Quality
Commercial
• Compliance with Governmental
Regulations
Legal
AADYA L&D Solutions URL
The Negotiation Team
AADYA L&D Solutions URL
Team Roles &
Responsibilities
Lead Negotiator
Recorder
Analyst
AADYA L&D Solutions URL
Lead Negotiator
• Main Speaker
• Only Member permitted to make
• Signals
• Movement
AADYA L&D Solutions URL
Analyst
• Monitors overall team strategy
• Monitors other teams strategy
• Identifies areas of Common Ground
• Monitors Movement
AADYA L&D Solutions URL
Recorder
• Records Key Arguments
• Records Final Agreement
AADYA L&D Solutions URL
Team Control
• Discipline
• Self
• Team
• Never interrupt the Lead Negotiator
• Respect Silence - NEVER Interrupt
AADYA L&D Solutions URL
Team Control
Decide and
Agree the
strategy early on
Always keep to
the agreed
strategy
Negotiate
through the
Leader
Support one
another openly
Empathise with
fellow members
Protray a United
Front
AADYA L&D Solutions URL
Personal
Control
• Always Be
• Polite - It never
reduces your argument
• Firm - Removes
Perceptions of
Weakness
• Calm - Facilitates
Persuasion and
Compromise
• Don’t ever take things personally!
AADYA L&D Solutions URL
Signaling
Listen for Changes in Emphasis
• We could never agree to X
• It would be difficult for us to
agree to Y
Listen for Subtle Differences in
Emphasis
• We could never agree to X
• At present we could not possibly
agree to Y
AADYA L&D Solutions URL
The Negotiation Process
AADYA L&D Solutions URL
The
Negotiation
Process
Preparation
Preparation
Opening Position
Opening Position
Bargaining
Bargaining
Movement
Movement
Closing
Closing
AADYA L&D Solutions URL
Preparation
AADYA L&D Solutions URL
Preparation - Early
Steps
• What are the Strengths of both
positions?
• What are the Weaknesses of both
positions?
• What are the benefits to both sides?
• What are the potential negative
consequences to both sides?
AADYA L&D Solutions URL
Preparation
• What Do You Want?
• Relate these to your interests to
increase the chances of a favorable
settlement
• Prioritize What You Want?
• This will ensure that you can trade
when needed
• Ensure that you have completed your
calculations!
• What will it cost you versus what will
the benefits be?
AADYA L&D Solutions URL
Preparation
• Identify Issues for Both Sides
• What are the Major Conflict Areas?
• Where Will the Common Ground
Exist?
• Identify Issues for Yourself
• What are the Issues?
• What will the Settlement Point Be?
• Test Yourself On Whether You
Believe they will be willing to adhere
to your Settlement Points?
AADYA L&D Solutions URL
Preparation
• Put Yourself in Their Shoes
• What are the issues that you think that they will be concerned about?
• List the Settlement Points that they may want for each of these issues?
• Would you be willing to give in to these settlement points?
• Identify your
• Ideal Settlement
• Realistic Settlement
• Bottom-Line - Fall back Position
• Develop your ‘B A T N A ’
• Best Alternative To a Negotiated Agreement
AADYA L&D Solutions URL
Preparation -
BATNA
• A Weak BATNA
• Only Decreases Your Bargaining
Power
• Eradicates Pressure to Reach an
Unfavorable Settlement
• A Strong BATNA
• Increases the Chances of you
reaching a Favorable
Settlement
AADYA L&D Solutions URL
Preparation
• Identify Your Key Commitments
• Important: These are not bargaining points
• They are principles that underline your bargaining purpose
• They can only be argued and therefore are not open to be
traded
• These should be ‘laid on the table’ early on to form the
foundation of your position
• From this your key commitments can be built on to reach
settlements
AADYA L&D Solutions URL
Preparation - Key
Commitments
• Examples
• Survival of the Organization
• Ensuring Competitiveness
• Legislation
• Keeping Pace with Inflation
AADYA L&D Solutions URL
Preparation
• Identify your Bargaining Mix
• Document the range of Issues at
Stake
• Ensure that all Issues are Discussed
and Documented
• Construct a ‘Shopping-List’ that can
be traded during the course of the
negotiation
AADYA L&D Solutions URL
Preparation
• Prioritize and Weight the Issues for Both
Sides
• Must Have ----
-- 1
• Would Like to Have ------ 2
• Be Nice to Have ------ 3
• Rank ----
-- 4
AADYA L&D Solutions URL
Opening Position
Opening Position
AADYA L&D Solutions URL
Opening
Position
Outline Your Opening Position
Outline
Decide whether this will be High Ball or Low Ball
•Low Ball ---
•High Ball ---
Decide
Ensure that this position is realistic in light of the
facts available to both sides
Ensure
Allow for movement within whatever opening
position you adopt
Allow
AADYA L&D Solutions URL
Opening
Position
Confirm all agreements
reached and positions
offered
Questioning
For
Information
For
Clarification
For
Commitment
AADYA L&D Solutions URL
Bargaining
Bargaining
AADYA L&D Solutions URL
Bargaining
QUESTION FOR
INFORMATION
CHALLENGE OTHER SIDE
FOR JUSTIFICATIONS OF
THEIR POSITION
EXAMINE AND TEST
THEIR COMMITMENT
PRESENT YOUR KEY
COMMITMENTS
AADYA L&D Solutions URL
Bargaining
EXPLORE KEY
COMMITMENTS
SUMMARIZE
ARGUMENTS AND
SEEK ACCEPTANCE
LOOK FOR SIGNALS
OF POSSIBLE
MOVEMENT
IDENTIFY AND
HIGHLIGHT
COMMON GROUND
AADYA L&D Solutions URL
Bargaining
• Identify Actual Common Ground
• Identify Potential Common Ground
Common Ground
• Extends Common Ground
• Trade low priority items for high priority items
Log-Rolling
AADYA L&D Solutions URL
Bargaining
Use Questioning
Throughout
Use Signals
without Excessive
Concessions
AADYA L&D Solutions URL
Movement
Movement
AADYA L&D Solutions URL
Movement
Be Prepared to Concede
Be
Begin with those of Low Priority and seek High
Priority Items
Begin
Never Concede on More than possible by your
Brief
Concede
on
AADYA L&D Solutions URL
Movement
USE YOUR CONCESSIONS
WISELY
DON’T JUST GIVE THESE
AWAY EXPECT AND RECEIVE
SOMETHING IN RETURN
AADYA L&D Solutions URL
Movement
• Use Conditional Argument
• If you would move on Y then
we would be prepared to move
on X
• In return for Y we could move
on X
• Movement on Y would allow us
to move on X
• Practice Makes Perfect!
AADYA L&D Solutions URL
Movement
• All Movement Should be realistic and
contained within your brief
• It Should be always towards the other sides
position and not away from it
• Be prepared for larger movements at first as it
can build trust within the negotiation
• Continue with smaller movements
AADYA L&D Solutions URL
Closing
Closing
AADYA L&D Solutions URL
Getting Agreement
Emphasize the benefits to
both parties
Carefully introduce the
consequences of not
reaching agreement to
both parties and losing
what has been agreed so
far
AADYA L&D Solutions URL
Concluding the
Negotiations
Timing is Essential
•Be sure that it is consistent with your brief
Take Care when making a Final Offer
•A small move by them in return for a extra
movement by you
A Small Traded Offer is often better
AADYA L&D Solutions URL
Concluding the
Negotiations
Ensure that all agreements are
understood and accepted before
finalization
Ensure that all agreements are
understood and accepted before
finalization
This should be well documented and
signed at the close of the negotiations
This should be well documented and
signed at the close of the negotiations
These should be then forwarded to
both parties post negotiations
These should be then forwarded to
both parties post negotiations
AADYA L&D Solutions URL
Summary
A Negotiation Team should comprise of
Lead
Negotiator
Recorder Analyst
Negotiation occurs when conflict exists
between groups and both parties are
prepared to seek a resolution through
bargaining
AADYA L&D Solutions URL
Summary
• The main stages in an effective negotiation
process are
• Preparation
• Opening Position
• Bargaining
• Movement
• Closing
AADYA L&D Solutions URL
Thank You
AADYA L&D Solutions URL

Negotiation Skills Training Module Basic

  • 1.
  • 2.
    Learning Objectives Understand the relationshipbetween conflict and negotiation Understand Identify the key roles and responsibilities required by the negotiation team Identify Implement an effective negotiation process •Preparation •Opening Position •Bargaining •Movement •Closing Implement AADYA L&D Solutions URL
  • 3.
    What is Negotiation? Negotiationoccurs when conflict exists between groups and both parties are prepared to seek a resolution through bargaining AADYA L&D Solutions URL
  • 4.
    Conflict & Negotiation • Conflictcan be solved through negotiation when: • There are two are more parties • There is a conflict of interest between the parties • The parties are willing to negotiate to seek a better position • Both parties believe that entering negotiations as a better solution than breaking contact AADYA L&D Solutions URL
  • 5.
    Levels of Conflict •Intra-Personal • Conflict exists within the individual • Inter-Personal • Conflict that exists between individuals • Intra-Group • Conflict exists within a small group • Inter-Group • Conflict exists between groups AADYA L&D Solutions URL
  • 6.
    Types of Negotiations • JobRoles • Pay Day-to-Day Managerial • Contracts • Quality Commercial • Compliance with Governmental Regulations Legal AADYA L&D Solutions URL
  • 7.
    The Negotiation Team AADYAL&D Solutions URL
  • 8.
    Team Roles & Responsibilities LeadNegotiator Recorder Analyst AADYA L&D Solutions URL
  • 9.
    Lead Negotiator • MainSpeaker • Only Member permitted to make • Signals • Movement AADYA L&D Solutions URL
  • 10.
    Analyst • Monitors overallteam strategy • Monitors other teams strategy • Identifies areas of Common Ground • Monitors Movement AADYA L&D Solutions URL
  • 11.
    Recorder • Records KeyArguments • Records Final Agreement AADYA L&D Solutions URL
  • 12.
    Team Control • Discipline •Self • Team • Never interrupt the Lead Negotiator • Respect Silence - NEVER Interrupt AADYA L&D Solutions URL
  • 13.
    Team Control Decide and Agreethe strategy early on Always keep to the agreed strategy Negotiate through the Leader Support one another openly Empathise with fellow members Protray a United Front AADYA L&D Solutions URL
  • 14.
    Personal Control • Always Be •Polite - It never reduces your argument • Firm - Removes Perceptions of Weakness • Calm - Facilitates Persuasion and Compromise • Don’t ever take things personally! AADYA L&D Solutions URL
  • 15.
    Signaling Listen for Changesin Emphasis • We could never agree to X • It would be difficult for us to agree to Y Listen for Subtle Differences in Emphasis • We could never agree to X • At present we could not possibly agree to Y AADYA L&D Solutions URL
  • 16.
  • 17.
  • 18.
  • 19.
    Preparation - Early Steps •What are the Strengths of both positions? • What are the Weaknesses of both positions? • What are the benefits to both sides? • What are the potential negative consequences to both sides? AADYA L&D Solutions URL
  • 20.
    Preparation • What DoYou Want? • Relate these to your interests to increase the chances of a favorable settlement • Prioritize What You Want? • This will ensure that you can trade when needed • Ensure that you have completed your calculations! • What will it cost you versus what will the benefits be? AADYA L&D Solutions URL
  • 21.
    Preparation • Identify Issuesfor Both Sides • What are the Major Conflict Areas? • Where Will the Common Ground Exist? • Identify Issues for Yourself • What are the Issues? • What will the Settlement Point Be? • Test Yourself On Whether You Believe they will be willing to adhere to your Settlement Points? AADYA L&D Solutions URL
  • 22.
    Preparation • Put Yourselfin Their Shoes • What are the issues that you think that they will be concerned about? • List the Settlement Points that they may want for each of these issues? • Would you be willing to give in to these settlement points? • Identify your • Ideal Settlement • Realistic Settlement • Bottom-Line - Fall back Position • Develop your ‘B A T N A ’ • Best Alternative To a Negotiated Agreement AADYA L&D Solutions URL
  • 23.
    Preparation - BATNA • AWeak BATNA • Only Decreases Your Bargaining Power • Eradicates Pressure to Reach an Unfavorable Settlement • A Strong BATNA • Increases the Chances of you reaching a Favorable Settlement AADYA L&D Solutions URL
  • 24.
    Preparation • Identify YourKey Commitments • Important: These are not bargaining points • They are principles that underline your bargaining purpose • They can only be argued and therefore are not open to be traded • These should be ‘laid on the table’ early on to form the foundation of your position • From this your key commitments can be built on to reach settlements AADYA L&D Solutions URL
  • 25.
    Preparation - Key Commitments •Examples • Survival of the Organization • Ensuring Competitiveness • Legislation • Keeping Pace with Inflation AADYA L&D Solutions URL
  • 26.
    Preparation • Identify yourBargaining Mix • Document the range of Issues at Stake • Ensure that all Issues are Discussed and Documented • Construct a ‘Shopping-List’ that can be traded during the course of the negotiation AADYA L&D Solutions URL
  • 27.
    Preparation • Prioritize andWeight the Issues for Both Sides • Must Have ---- -- 1 • Would Like to Have ------ 2 • Be Nice to Have ------ 3 • Rank ---- -- 4 AADYA L&D Solutions URL
  • 28.
  • 29.
    Opening Position Outline Your OpeningPosition Outline Decide whether this will be High Ball or Low Ball •Low Ball --- •High Ball --- Decide Ensure that this position is realistic in light of the facts available to both sides Ensure Allow for movement within whatever opening position you adopt Allow AADYA L&D Solutions URL
  • 30.
    Opening Position Confirm all agreements reachedand positions offered Questioning For Information For Clarification For Commitment AADYA L&D Solutions URL
  • 31.
  • 32.
    Bargaining QUESTION FOR INFORMATION CHALLENGE OTHERSIDE FOR JUSTIFICATIONS OF THEIR POSITION EXAMINE AND TEST THEIR COMMITMENT PRESENT YOUR KEY COMMITMENTS AADYA L&D Solutions URL
  • 33.
    Bargaining EXPLORE KEY COMMITMENTS SUMMARIZE ARGUMENTS AND SEEKACCEPTANCE LOOK FOR SIGNALS OF POSSIBLE MOVEMENT IDENTIFY AND HIGHLIGHT COMMON GROUND AADYA L&D Solutions URL
  • 34.
    Bargaining • Identify ActualCommon Ground • Identify Potential Common Ground Common Ground • Extends Common Ground • Trade low priority items for high priority items Log-Rolling AADYA L&D Solutions URL
  • 35.
    Bargaining Use Questioning Throughout Use Signals withoutExcessive Concessions AADYA L&D Solutions URL
  • 36.
  • 37.
    Movement Be Prepared toConcede Be Begin with those of Low Priority and seek High Priority Items Begin Never Concede on More than possible by your Brief Concede on AADYA L&D Solutions URL
  • 38.
    Movement USE YOUR CONCESSIONS WISELY DON’TJUST GIVE THESE AWAY EXPECT AND RECEIVE SOMETHING IN RETURN AADYA L&D Solutions URL
  • 39.
    Movement • Use ConditionalArgument • If you would move on Y then we would be prepared to move on X • In return for Y we could move on X • Movement on Y would allow us to move on X • Practice Makes Perfect! AADYA L&D Solutions URL
  • 40.
    Movement • All MovementShould be realistic and contained within your brief • It Should be always towards the other sides position and not away from it • Be prepared for larger movements at first as it can build trust within the negotiation • Continue with smaller movements AADYA L&D Solutions URL
  • 41.
  • 42.
    Getting Agreement Emphasize thebenefits to both parties Carefully introduce the consequences of not reaching agreement to both parties and losing what has been agreed so far AADYA L&D Solutions URL
  • 43.
    Concluding the Negotiations Timing isEssential •Be sure that it is consistent with your brief Take Care when making a Final Offer •A small move by them in return for a extra movement by you A Small Traded Offer is often better AADYA L&D Solutions URL
  • 44.
    Concluding the Negotiations Ensure thatall agreements are understood and accepted before finalization Ensure that all agreements are understood and accepted before finalization This should be well documented and signed at the close of the negotiations This should be well documented and signed at the close of the negotiations These should be then forwarded to both parties post negotiations These should be then forwarded to both parties post negotiations AADYA L&D Solutions URL
  • 45.
    Summary A Negotiation Teamshould comprise of Lead Negotiator Recorder Analyst Negotiation occurs when conflict exists between groups and both parties are prepared to seek a resolution through bargaining AADYA L&D Solutions URL
  • 46.
    Summary • The mainstages in an effective negotiation process are • Preparation • Opening Position • Bargaining • Movement • Closing AADYA L&D Solutions URL
  • 47.
    Thank You AADYA L&DSolutions URL