The MTL Professional Development Programme is a collection of 202 PowerPoint presentations that will provide you with step-by-step summaries of a key management or personal development skill. This presentation is on "Preparing for Negotiations" and will show you how to start a negotiation in a strong position by preparing well.
Marel Q1 2024 Investor Presentation from May 8, 2024
Preparing for Negotiations
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MTL: The Professional Development Programme
Preparing for Negotiations
MTL: The Professional Development Programme
PREPARING FOR
NEGOTIATIONS
Moveintopoleposition
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MTL: The Professional Development Programme
Preparing for Negotiations
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Learn.
Preparing for
Negotiations
Introduction: Work done in preparing for negotiations is never done in vain. You need
time before you meet to think about your own position, your needs and wants; time to
talk to your own constituents; time to gather information about the other side; time to
plan the practicalities of the negotiations. Although good preparation can never
guarantee success in the unpredictable process of negotiations, it can certainly increase
your chances. In this topic, we’ll look at 7 key features of preparing for negotiations.
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Preparing for Negotiations
1. AN
ADVANTAGE
TO YOU
A negotiating situation exists when you are in
any communication or problem-solving situation
with others that can work out to your advantage.
If there is no advantage to you, then don’t
negotiate; there is no point. One way you can
decide if there is an advantage to you is to work
out if you are in a reactive or proactive
negotiating situation. A reactive situation is one
where you have something someone else wants
and is prepared to negotiate for. A proactive
situation is one where you want something from
someone else and are prepared to negotiate for.
Decide where your best interests lie.
Don’t start any negotiation unless you can win something
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Preparing for Negotiations
2. CLARIFY
YOUR AIMS
Once you decide to enter into an important
negotiation, such as a business one, you need to
clarify your aims. Your overriding aim must be to
achieve the objectives you and your constituents
set. This should be linked to a wider business
strategy that you have set for yourself. If at any
time during the negotiations it becomes clear
that you are not going to meet your aims, then
you should immediately stop the negotiations
and withdraw.
What do you want?
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Preparing for Negotiations
3. GATHER
INFORMATION
The background research you need to carry out
in preparation for negotiations can include a
preliminary get-together to clarify initial claims,
offers and positions; desk research to check out
their arguments; and investigation of alternative
courses including getting a BATNA (the Best
Alternative To a Negotiated Agreement). Once
you have information about the other side's
position it can be compared to your own using
different models, such as a PIN Triangle, a
Butterfly Diagram, a Have-Want grid, a Variables
See-Saw, and a Double SWOT.
Get facts and figures but not too many
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Preparing for Negotiations
Preparation Model 1:APIN Triangle
P for Positions
Positions are the public stance negotiators take.They are
likely where you are for most of the negotiations.
I for Interests
Interests are the things that
matter to you, the principles
about which you're not
prepared to budge.
N for Needs
Needs are the underlying
reason you're in
negotiations: the things
you really want.
A PIN triangle is a useful way to
distinguish between positions (P),
interests (I), and needs (N). Most people
take up the position they think will help
them achieve their needs. These are often
far more extreme than is necessary but
are taken because people think it will help
their case. Only after negotiations have
moved out of positional confrontation do
people see other ways to meet their
needs. This is what makes win-win
negotiations always possible.
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Preparing for Negotiations
Preparation Model 2:AButterfly Diagram
“A reasonable
settlement
would be
2.5%”
“Our dream
settlement
would be 1%”
“Our this-far-and-no-
further point would
be 5%”
“Our dream
settlement
would be 9%”
“A reasonable
settlement would
be 7.5%”
“Our this-far-and-no-
further point would
be 6%”
1% 2% 3% 5% 5% 6% 7.5% 9%
A Butterfly Diagram draws the different
positions each side in negotiations is
willing to take, based on their ideal
position, their acceptable position and
their final position. The diagram should
be continually evolving and changing as
you learn more about each others' needs.
It indicates whether you are heading for
breakdown or not.
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Preparing for Negotiations
A “Have-Want" Grid enables you to clarify the
following information:
what you have that the other side needs
what you want from them
what the other side have that you need
what they want from you.
For example,
we, the union, want a pay increase at least the
same as inflation plus a new deal on company
travel expenses. They, the company, have a
reduced budget on pay deals and a set of spare
company vehicles.
they, the company, want a quick settlement
that doesn't get in the way of the upcoming
merger. We , the union, have the power to
dispose of the deal before the due date.
Detailing the haves and wants of both sides
indicates where interests overlap and thus
possibilities for settling. Here is an example…
Preparation Model 3:AHave-Want Grid
What we, the
company, have
that they, the
union, want
A pay settlement that
looks good
A set of spare company
vehicles
Guarantees about job
security after the merger
The ability to invite the
union to take part in the
merger talks
What we, the
union have that
they, the company,
want
Agreement on a long-term
pay deal
A new deal on company
travel expenses
Changes in job
descriptions before the
merger
Ability to speed up a deal
before the merger
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Preparing for Negotiations
Preparation Model 4:AVariables See-Saw
Putting different values on different issues in a negotiation is the reason that both sides can reach win-win settlements. A
Variables See-Saw compares the respective worth of different elements on the table: for you, cashless pay may be really
important and you rate it 5 out of 10; for them, it's only a 3 out of 10. For them, a quick settlement is worth 7 out of 10,
for you just 1 out of 10. The Variables See-Saw is a reminder that there is no absolute worth to anything. It all depends on
your needs. For one person a training course in negotiations may be good value at £100 a day. For someone else, who is
about to embark on high-powered negotiations, and wants to hone their skills, it might be good value at £1000 a day.
Their rating of what the
offers are worth:
Cashless
pay = 20%
Security
guarantee =
60%
A quick
settlement
= 10%
Our rating of what the
offers are worth:
Cashless pay =
50%
A quick
settlement = 20%
Security
guarantee
= 30%
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Preparing for Negotiations
A SWOT analysis is an estimate of the strengths, weaknesses, opportunities and threats of both negotiating sides.
Preparation Model 5: Double SWOT
Theirs
Ours
The strengths of each
side are the power each
side has over the other.
Astute negotiators are
aware of the other side's
power but are not
overawed by it.
Weaknesses are the areas
you can exploit in the
other side to improve your
bargaining position. All
negotiators have
weaknesses in that they
have a need to reach
agreement with the other
side and therefore a
dependence on them to
settle.
The threats are the things
we might lose or miss out
on or suffer if we fail to
get what we want.
Opportunities are the
benefits that can come
our way from a
negotiated settlement.
The greater these are,
the more we will want
to make a deal.
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Preparing for Negotiations
4. DON’T GO IT
ALONE
When you represent others in negotiations,
there are three possible sources of conflict. First,
there is the public conflict between yourself and
the other side. Second, there is the semi-public
conflict between yourself and your own side who
may want you to be tougher or softer. Third,
there is the private conflict you may have with
your own team in how to conduct the
negotiations. This is why the most successful
negotiators are invariably the strongest team
who are prepared to support one another
despite what others may do to break them up.
Build alliances
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Preparing for Negotiations
Why You Need to Negotiate withYour Constituents
It is rare to go into a negotiation only representing yourself. Usually you negotiate as a representative of others,
your constituents. Part of your preparation for negotiations should be spent getting the best mandate from your
constituents. Part of the agreement with your constituents is how, where and under what circumstances you
have to go back to them with proposals. It is worth educating your constituents not to be over-optimistic in what
you can expect. Just because you believe you have a good case doesn't mean the other side does.
5. Aim to get the
support you need
from your
constituents
1. Aim to get the
trust you need from
your constituents
4. Aim to get the
freedom you need
from your
constituents
3. Aim to get the
understanding you
need from your
constituents
2. Aim to get the resources you
need from your constituents
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Preparing for Negotiations
5. GET A
BATNA
In negotiations, the abbreviation, BATNA, stands
for the "Best Alternative to a Negotiated
Agreement". This is a phrase devised by
researchers Roger Fisher and William Ury of the
Harvard Program on Negotiation and is often
regarded as one of the best preparations for
successful negotiation. It means having
somewhere else to go if your current negotiation
doesn't succeed, in short a suitable back-up plan.
Having a BATNA doesn't just mean you have a
plan, it also makes you more confident and
relaxed when entering negotiations.
Have a second-best deal waiting in the wings
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Preparing for Negotiations
A BATNA is your Best Alternative To a Negotiated Agreement
and is often regarded as the only certain way to be successful
in negotiations.
When you prepare for negotiations with one party by sounding
out an alternative deal with another party, you get walkaway
power. It means that, even if the alternative isn't quite what
you want, you are still prepared to go there, if need be.
One of the best examples of a BATNA took place during
negotiations between the Malta government and the British
over the use of Maltese harbours for British naval ships. During
the negotiations, the Malta government courted the Soviet
Union who were more than interested in a deal. This
alternative gave Malta both leverage and walkaway power.
Why You Need a BATNA
Getting a good BATNA is the equivalent of the
old saying, “Don’t put all your eggs in one
basket”.
Walkaway power is only
possible when you have a
credible, well-thought-
out BATNA
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Preparing for Negotiations
6. PREPARE
THE SETTING
There are 5 questions to ask yourself when
preparing the setting for a negotiation. They are:
Who? (ie who is to take part and do what?);
Where? (ie our place or theirs?); When? (ie what
is the time scale?); Why? (ie what are we
negotiating about?); and How? (ie how are we to
present our case?).
Get home advantage if you can
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Preparing for Negotiations
7. PREPARE
YOURSELF
MENTALLY
One way to prepare for the endurance test of
high-level negotiations is the Iroquois Method.
This method relates to how the Iroquois Red
Indians prepared themselves before going into
battle. They ate and drank abstemiously; they
ran, wrestled and hunted for many hours each
day; they spent hours practising using their
weapons; they moved to another part of the
village and kept away from their womenfolk .
They trained like hungry prize-fighters before a
fight. While your preparations for negotiations
may not go to such lengths, the Iroquois Method
illustrates the need to focus so that you are
physically, mentally and psychologically ready.
Increase your power by being ready
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Preparing for Negotiations
This has been a Slide Topic from Manage Train Learn
AFinal
Word
There is no guarantee that good preparation will lead to success in negotiations. But the chances
are that poor preparation will lead to failure. Don’t take that risk. Pull out all the stops to get a
head start and you'll be in the best position to succeed.