This document discusses the need for developing a new negotiation culture based on cooperation rather than competition. It argues that while competition and conflict are often seen as inherent to human nature based on notions of survival of the fittest, biology does not necessarily support this view. Studies show animals and primates regularly cooperate with each other, and that empathy, trust and conflict management are also part of human nature. The document advocates developing negotiation intelligence at both the individual and organizational levels to unlock the potential for joint value creation through cooperation and transformation of conflicts. Human resource managers are well-placed to foster such a new negotiation culture in organizations.
Although people often think of boardrooms, suits, and million dollar deals when they hear the word “negotiation,” the truth is that we negotiate all the time. For example: ask your boss for a raise or a training, make important business decisions with your team… These are all situations that involve negotiating! This workshop will give you an understanding of the phases of negotiation, tools to use during a negotiation, and ways to build win-win solutions for all those involved.
Although people often think of boardrooms, suits, and million dollar deals when they hear the word “negotiation,” the truth is that we negotiate all the time. For example: ask your boss for a raise or a training, make important business decisions with your team… These are all situations that involve negotiating! This workshop will give you an understanding of the phases of negotiation, tools to use during a negotiation, and ways to build win-win solutions for all those involved.
The Power Pyramid: Mastering Negotiating, Power, and Influence
The power pyramid may be the most important set of skills you have in your toolbox for success. Some people are excited when they hear the word power, while others cringe at the idea of it. Your feelings about this word are likely contributing to your professional confidence and your leadership effectiveness. Standing in a position of power alone is not enough; you need influence and negotiation skills to use your power effectively. There are several sources of power. Your task is to identify them, to be influential, understand the political angle, and negotiate your way to excellence. This workshop will help you learn to understand, rise above, and effectively use politics, influence, and negotiation skills to get things done.
Learning Outcomes: Increase capacity to negotiate, communicate, and develop associated core professional and leadership skills
At the end of this session, participants will be able to:
a) Use praise, support, and team building as a strategy to gain influence and power
b) Identify ways to use, understand, and survive organizational politics
c) Explore practical strategies for successful negotiation
d) Examine individual negotiating and influencing styles
While designed with procurement professionals in mind, these negotiating tactics can be used by any business professional in a variety of situations: salary negotiations, contract negotiations, etc.
Negotiation PowerPoint Slides include topics such as: basic components of negotiation, questions to ask, identifying the issues, assembling the facts, negotiation success strategies, techniques, and tactics, pros and cons of various negotiation approaches, 22 characteristics of effective negotiation, mediation, arbitration, maximizing your appearance and mannerisms, how to's and much more.
We are in a critical time of history. What worked yesterday does not necessarily work today. It’s been proven that
organizations fail when they over-invest in “what is” instead of “what could be.” But why? Truth is, every organization is
successful until it’s not – and there’s only one sure-fire way to protect yourself from it happening to you, re-inventing yourself
destructing. The time of just showing up and doing your job is over. As Gary Hamel states, “Average is officially over because
every employer today has the means much more quickly, cheaply, and easily available to take you out.” That said, a new
breed of worker and leader is now required in the world today. People who are creative, able to communicate and can adapt
on the fly are indispensable. Our ancestors proved that you can shift from one system (agricultural) to another (industrial) as
long as you’re willing to change. So ask yourself, can you adapt?
Change has changed.
We are in a critical time of history. The age of farms and factories and even information worked for a while, but everything has changed. What worked yesterday does not necessarily work today.
Organizations fail when they over-invest in “what is” at the expense of “what could be.” Executives often say, “This is how our industry work.” My stock reply: ‘Yeah, until it doesn’t.” Truth is, every organization is successful until it’s not. In a world of unprecedented change, there’s only one way to protect yourself from creative destruction—do the destructing yourself.”1
“Average is officially over because, you see, every employer today has in this hyper-connected world access to above-average computer software, robots, and not just cheap labor, but cheap genius, from so many different places. So Woody Allen’s observation that 90 percent of life is showing up is, as they say, N/A, no longer applicable. If you just show up to your job and do average, whether you are a lawyer, an accountant, or a butcher, a baker, a candlestick maker, there is a machine, a software, a robot, or a foreign worker now that is so much more quickly, cheaply, and easily available to take you out. So you had better be a creative creator or a creative server.”1
We have to say goodbye to the knowledge economy and say hello to the creative economy. A new breed of worker and leader are now required...people who are creative, good at connecting with others, and able to see solutions like no one else. Indispensable.2
We are at a “tipping point” in education. With competition from private schools, charters schools, home schools, and virtual schools; with education funding in a crisis of epic proportions; with new, yet inefficient, assessment systems; and with the shift toward globalization, it is time.
As our ancestors proved in shifting from the agricultural system to the industrial system, we can do it, but we must be willing to adapt. That’s why we need to change the way we change.
1 From What Matters Now: How to Win in a World of Relentless Change, Ferocious Competition, and Unstoppable Innovation by Gary Hamel (Hardcover - Feb 1, 2012)
2 From Linchpin: Are You Indispensable? by Seth Godin (Hardcover - Jan 26, 2010)
Feminomics provides a new perspective on leadership challenges and opportunities for both men and women. It looks at the unbalanced leadership behind the economic crisis and how we need to re-balance our leadership at every level for future prosperity and well-being.
The presentation forms a powerful centrepiece for leadership events, stimulating high levels of engagement and discussion.
How should supply chain adapt with changing times and the future - Piotr Pola...ELSCC
Markets are undergoing dramatic changes caused by technological revolution. Companies are able to deliver products at the same time better, cheaper and more attractive, comparing to other market players. As a result entire product lines and markets could emerge or disappear in one moment.
Risk Reimagined! Series- The Importance of People and Culture to Effective Ri...Resolver Inc.
Copyright notice: The following slides are intended for professional use within an organization for discussion purposes only. Any other uses or modifications are strictly prohibited.
Any organization is an assembly of people: people who take risk as they manage and direct the enterprise; people who decide how much risk is acceptable or even desirable; and provide oversight of the management of risk across the extended enterprise.
Organizational culture has been the topic of study for many years.
• “Culture is how organizations ‘do things’.” — Robbie Katanga
• “Organizational culture is the sum of values and rituals which serve as ‘glue’ to integrate the members of the organization.” — Richard Perrin
Richard Anderson and Norman Marks share their views on this complex subject. They cover:
• What is the difference between the “risk” culture and the “organizational” culture? How can it be analysed?
• Who takes risk, and who should be responsible for deciding how much risk to take?
• Is there such a thing as a single risk level?
• Why do so many of us take different views of exactly the same risks? How does an organization decide which view is “right”?
• Is one person’s risk another’s opportunity?
• What about when the actions of one impact the success of another?
the Agile Virtual Enterprise - empty concept or future necessity?Marc Buyens
In this presentation we explore the difficult relationship between traditional organsational structures and innovation. The starting point for this quest is the concept of an agile virtual enterprise (AVE).
We tend to see megatrends as moving exponentially in the future, forgetting that counter-movements can become quite predominant as well at some point. This presentation gives a preview into what would happen if either the trends or their 'antitrend' would prevail. Obviously, the real future will be somewhere inbetween, this is just a thought experiment... enjoy!
The Power Pyramid: Mastering Negotiating, Power, and Influence
The power pyramid may be the most important set of skills you have in your toolbox for success. Some people are excited when they hear the word power, while others cringe at the idea of it. Your feelings about this word are likely contributing to your professional confidence and your leadership effectiveness. Standing in a position of power alone is not enough; you need influence and negotiation skills to use your power effectively. There are several sources of power. Your task is to identify them, to be influential, understand the political angle, and negotiate your way to excellence. This workshop will help you learn to understand, rise above, and effectively use politics, influence, and negotiation skills to get things done.
Learning Outcomes: Increase capacity to negotiate, communicate, and develop associated core professional and leadership skills
At the end of this session, participants will be able to:
a) Use praise, support, and team building as a strategy to gain influence and power
b) Identify ways to use, understand, and survive organizational politics
c) Explore practical strategies for successful negotiation
d) Examine individual negotiating and influencing styles
While designed with procurement professionals in mind, these negotiating tactics can be used by any business professional in a variety of situations: salary negotiations, contract negotiations, etc.
Negotiation PowerPoint Slides include topics such as: basic components of negotiation, questions to ask, identifying the issues, assembling the facts, negotiation success strategies, techniques, and tactics, pros and cons of various negotiation approaches, 22 characteristics of effective negotiation, mediation, arbitration, maximizing your appearance and mannerisms, how to's and much more.
We are in a critical time of history. What worked yesterday does not necessarily work today. It’s been proven that
organizations fail when they over-invest in “what is” instead of “what could be.” But why? Truth is, every organization is
successful until it’s not – and there’s only one sure-fire way to protect yourself from it happening to you, re-inventing yourself
destructing. The time of just showing up and doing your job is over. As Gary Hamel states, “Average is officially over because
every employer today has the means much more quickly, cheaply, and easily available to take you out.” That said, a new
breed of worker and leader is now required in the world today. People who are creative, able to communicate and can adapt
on the fly are indispensable. Our ancestors proved that you can shift from one system (agricultural) to another (industrial) as
long as you’re willing to change. So ask yourself, can you adapt?
Change has changed.
We are in a critical time of history. The age of farms and factories and even information worked for a while, but everything has changed. What worked yesterday does not necessarily work today.
Organizations fail when they over-invest in “what is” at the expense of “what could be.” Executives often say, “This is how our industry work.” My stock reply: ‘Yeah, until it doesn’t.” Truth is, every organization is successful until it’s not. In a world of unprecedented change, there’s only one way to protect yourself from creative destruction—do the destructing yourself.”1
“Average is officially over because, you see, every employer today has in this hyper-connected world access to above-average computer software, robots, and not just cheap labor, but cheap genius, from so many different places. So Woody Allen’s observation that 90 percent of life is showing up is, as they say, N/A, no longer applicable. If you just show up to your job and do average, whether you are a lawyer, an accountant, or a butcher, a baker, a candlestick maker, there is a machine, a software, a robot, or a foreign worker now that is so much more quickly, cheaply, and easily available to take you out. So you had better be a creative creator or a creative server.”1
We have to say goodbye to the knowledge economy and say hello to the creative economy. A new breed of worker and leader are now required...people who are creative, good at connecting with others, and able to see solutions like no one else. Indispensable.2
We are at a “tipping point” in education. With competition from private schools, charters schools, home schools, and virtual schools; with education funding in a crisis of epic proportions; with new, yet inefficient, assessment systems; and with the shift toward globalization, it is time.
As our ancestors proved in shifting from the agricultural system to the industrial system, we can do it, but we must be willing to adapt. That’s why we need to change the way we change.
1 From What Matters Now: How to Win in a World of Relentless Change, Ferocious Competition, and Unstoppable Innovation by Gary Hamel (Hardcover - Feb 1, 2012)
2 From Linchpin: Are You Indispensable? by Seth Godin (Hardcover - Jan 26, 2010)
Feminomics provides a new perspective on leadership challenges and opportunities for both men and women. It looks at the unbalanced leadership behind the economic crisis and how we need to re-balance our leadership at every level for future prosperity and well-being.
The presentation forms a powerful centrepiece for leadership events, stimulating high levels of engagement and discussion.
How should supply chain adapt with changing times and the future - Piotr Pola...ELSCC
Markets are undergoing dramatic changes caused by technological revolution. Companies are able to deliver products at the same time better, cheaper and more attractive, comparing to other market players. As a result entire product lines and markets could emerge or disappear in one moment.
Risk Reimagined! Series- The Importance of People and Culture to Effective Ri...Resolver Inc.
Copyright notice: The following slides are intended for professional use within an organization for discussion purposes only. Any other uses or modifications are strictly prohibited.
Any organization is an assembly of people: people who take risk as they manage and direct the enterprise; people who decide how much risk is acceptable or even desirable; and provide oversight of the management of risk across the extended enterprise.
Organizational culture has been the topic of study for many years.
• “Culture is how organizations ‘do things’.” — Robbie Katanga
• “Organizational culture is the sum of values and rituals which serve as ‘glue’ to integrate the members of the organization.” — Richard Perrin
Richard Anderson and Norman Marks share their views on this complex subject. They cover:
• What is the difference between the “risk” culture and the “organizational” culture? How can it be analysed?
• Who takes risk, and who should be responsible for deciding how much risk to take?
• Is there such a thing as a single risk level?
• Why do so many of us take different views of exactly the same risks? How does an organization decide which view is “right”?
• Is one person’s risk another’s opportunity?
• What about when the actions of one impact the success of another?
the Agile Virtual Enterprise - empty concept or future necessity?Marc Buyens
In this presentation we explore the difficult relationship between traditional organsational structures and innovation. The starting point for this quest is the concept of an agile virtual enterprise (AVE).
We tend to see megatrends as moving exponentially in the future, forgetting that counter-movements can become quite predominant as well at some point. This presentation gives a preview into what would happen if either the trends or their 'antitrend' would prevail. Obviously, the real future will be somewhere inbetween, this is just a thought experiment... enjoy!
Keynote Address @ The Forrester Sourcing & Vendor Management Forum in Las Veg...OBr.global
Robert Janssen's Keynote address @ The Forrester Sourcing & Vendor Management Forum, in Las Vegas, May 25,2012, in behalf of Brasil IT +, in which he showcases the challenges that globalization imposes on innovation because of the key success factor of cross border communication and collaboration
Companies fiddle constantly with their incentive plans and sales executives are always looking for ingenious ways to motivate their teams. If sales targets are missed, they blame the sales compensation plan and start over. Meanwhile, The finance organization views the comp plan as an expense to manage. That’s not
surprising: Sales force compensation represents the single largest marketing
investment for most B2B companies. So naturally finance tries to ensure that comp
plans have cost-control measures designed into them. Additionally, many companies
respond to cost-cutting pressure from the finance department with incentives that
backfire. More often than not, controls encourage salespeople to spend time with
customers according to the company’s internal needs, rather than when the customer
is ready to buy.
This is the world of the sales machine, built to outsell less focused, less disciplined competitors through brute efficiency and world-class tools and training. Recently
sales has been caught off guard by dramatic changes in customers’ buying behavior and sales performance has grown increasingly erratic. The very approaches that made the sales machine so effective now make selling harder. The sales machine is stalling. Leaders must abandon their fixation on process compliance and embrace a flexible approach to selling driven by sales reps’ reliance on insight and judgment.
Companies have become savvy customers; they have often determined the solution and the supplier they need, and the price they are willing to pay, before the salesperson enters the scene. In this competitive environment, the premium on finding, training, motivating and retaining star performers has never been higher.
Because firms only measure past sales performance, they have limited insight into how a salesperson will do going forward and what types of training and incentives
will be most effective. Failing to forecast a salesperson’s future value can lead to costly misallocation of training and incentive dollars. Many firms overvalue their poor performers and undervalue their stars, which might lead to undervalued top salespeople to slip trough their fingers and into competitors’ arms. This article illustrates a novel method for measuring a salesperson’s future profitability to the firm. Future performance is linked to specific types of training and incentives and show how those investments can dramatically boost revenue.
Social networks are critical in sales. Companies and salespeople can improve
performance significantly by understanding the interplay among the different webs
of customers, leads and colleagues they develop.
The sales process can be represented as four distinct stages, which all require a
different set of abilities and network configuration. If salespeople and managers
understand how networks function, they can pinpoint the most effective network
configuration for each stage of a sale and take the actions necessary to create it and
outshine competitors. In each stage of the sales process, the salesperson’s efforts
come down to two essential and complementary types of network-management
actions: managing the information flow and coordinating the efforts of contacts. This
article offers a framework for systematically managing different social networks, by
matching the network to the task. The article also presents three levers managers
can use to encourage salespeople to integrate the network-based view and make the
best possible use of social networks.
This document summarizes three connected pieces of work by Steve W. Martin, that should resonate with salespeople and sales managers alike. A lot of research has been conducted concerning the right capabilities a salesperson should have to become a high-performing top salesperson. This project involved the interviewing of top salespeople and sales leaders to gather more information
about the attributes necessary to exceed your quota.
This interesting articles suggest that successful salespeople need not always
exhibit extrovert tendencies, nor will salespeople be at a complete disadvantage
if they introverts. The author works on a concept proposed by bestselling author
Daniel Pink and proposes the ambivert (referring to an individual who falls
between an extrovert and an introvert) as the ones who are more likely to be
successful in the long run. Basing himself on a sample of salespeople, Adam
Grant, proves his point and offers some pointers for sales managers.
In this article, the authors suggest that sales managers need to realize that not all sales visits to the customers will necessarily create value for the customer. Sales managers need to realize that different sales processes exist when dealing with customers and the key factor determining the sales process is got to be based on how much value a salesperson can bring to the customer. The
authors go on to identify three different types of sales processes and give reasons as to why value based segmentation is the best way to help your salespeople deliver value not just for their customers but also for themselves.
Based on extensive research, this study by the Corporate executive Board
(CEB) builds on their idea of the challenger sale by providing strategies by
which salespeople can better understand the diversity that exists in the decision
making unit of the customer and work on making sure that the diversity does
not drive apart the customers from a key decision. On the contrary successful
salespeople work on developing a consensus in the decision making unit of the
customer and using this to drive home the sale. The various strategies to help
consensus are then elaborated in the article.
4. Fighting
our roots?
If these are our biological roots, is true human nature
and cooperation a doomed story?
Are conflict and violance simply in our genes, rendering
negotiation and conflict management useless?
Is cooperation only sustained by a thin layer of culture?
5. “Survival of the fittest”
Social Darwinism: life is a struggle in which those who
make it should not let themselves be dragged down by
those who don’t
Herbert Spencer (19th century) tanslated what he saw
as the laws of nature into business language, coining
the phrase: “survival of the fittest”
The book sold hundreds of thousands of copies
6. “And while the law (of competition) may be
sometimes hard for the individual, it is best for
the race, because it ensures the survival of
the fittest in every department”
Andrew Carnegie
(Scottish born American Industrialist
and Philanthropist. 1835-1919)
7. “If evolution and the survival of the fittest be true
at all, the destruction of prey and of human rivals
must have been among the most important. . . . It
is just because human bloodthirstiness is such a
primitive part of us that it is so hard to eradicate,
especially when a fight or a hunt is promised as
part of the fun.”
William James
(American philosopher & Psychologist, leader of the philosophical movement of
pragmatism, 1842-1910)
8. Ruthless competition becomes
a law of nature
Competition became a law of nature - the evolutionary
spirit became the adagio of business
We ambraced competition and the resulting conflict as
our chief organising business principle
Biology is called upon to justify/explain a society based
on selfish principles
The “homo economicus” is born
9. We established a very unproductive
negotiation environment
Belgian political negotiations
Union - labour negotiations
• Nobody can be trusted
• Negotiations are suboptimal - compromise
• Conflict is all around - the evidence is
striking
10. 85% of employees exposed to
conflict
2008 Study among 5000 employees in 9 countries (EU/Americas)
15%
Have to deal 29% Have to deal
56%
with conflict with conflict
always / frequently occasionally
11. Costs of conflict 2008 in terms of
employee time in the US alone
359 000 000 000 USD
Conservative
estimate!
12. Legal costs
• Nearly 90 % of US
companies engaged in
litigation (27 to 147 average
number of law suits at any
given moment)
• More concern about high
costs of litigation than about
winning
• Costs are very hard to
assess, but run up to 5 % of
company’s overall gross
revenues
13. Workplace consequences of
conflict witnessed
0% 5% 10% 15% 20% 25% 30%
Personal insults & attacks
27%
Sickness & absence
25%
Cross-departmental conflict
18%
Bullying
18%
People left organisation
18%
People fired
16%
Employees moved to other departments
13%
Project failures
9%
14. 70% see managing conflict a critically important
leadership skill - how do managers do?
50%
40%
30%
20%
10%
0%
Managers Employees
Managers handle conflict well
Managers do not handle conflict as well as they should
15. Cost of conflict
Unresolved conflict and
ineffective cooperation represent
the largest reducible cost in many
businesses
16. Effects of unresolved conflict
• First order effects
• missed deadlines, termination costs,
recruitment expenses
• Second order effects
• missed opportunities, increased
supervision
17. Is it really
nature?
Biology is often a justification
Every debate abour society and governments makes huge
assumptions about human nature, which are presented as
if they came from biology. But they almost never do (Frans
De Waal)
Assumptions about biology
are always on the negative side
19. Our inner ape is not nearly a nasty as
advertised: the apes trust each other!
Biologists (the only ones with comparative material)
conclude that we are group animals: “highly
cooperative, sensitive to injustice, sometimes
warmongering, but mostly peace loving”
Empathy and cooperation come naturally to our species
- if you give food to a group of chimpanzees, within 20
min. everybody will have some food. Many animals
survive not by eliminating each other of keeping
everything for themselves, but by cooperating
Biologist plee to overhaul assumptions about human
nature that turns out to be a projection.
Competition is obviously part of the picture, but 95 % of
the time the creatures that represent our biological
roots are cooperating
Violence is in our genes, but so are reconcilliation and
conflict management
20. There is as much cooperation
and trust as competition in
nature
It is not nature holding us back
How do we nurture the
cooperation?
21. We need to develop our
NQ (Negotiation Intelligence)
As we evolve from
Shareholder to stakeholder capitalism
‣ Sustainable companies manage to reconcile these interests
Market to Society
‣ In the market, consumer organisations, NGOs, governements
etc. play a role
‣ Leadership will be conditional upon consensus building
capacity
‣ NQ becomes increasingly important
22. The logic of
NQ (Negotiation Intelligence)
• The logic of rational choice
• The logic of appropriateness
• The logic of transformation
• Cooperation is more then a selfish cost/benefit analysis based on a
set of fixed utility functions (preferences) or an adherence to
appropriatness (norms and emotions)
• Cooperation is increasingly about the co-creation of joint
opportunities, about turning confrontation into cooperation
• WE NEED A LOGIC OF TRANSFORMATION TO DEVELOP A NEW
NEGOTIATION CULTURE
23. The model of
NQ (Negotiation Intelligence)
Unlocking fixed potential Knowledge
Unlocking fixed value
Skills
Unlocking the safety kit
Attitude
Masterkey
24. From individual
to organisation
We also need Corporate Negotiation Intelligence (CCQ)
Given the bottom line impact of our negotiation behaviour, we
need to develop a systemic approach rather than a case by case ad
hoc approach - often leading to champagne at the signing of a
deal, but bitterness after
Recent studies show that, even during the economic crisis,
companies with a high negotiation majurity performed much beter
than the avarge (a decline with more than 30 % versus an increase
of 42,5 %)
26. We are currently designing a construction plan for
CNQ
Some building blocks include:
• Key negotiators trained and aware (no one-off event)
• Optimised negotiation processes
• Cross-stakeholder collaboration (including the implementers and the
overall strategy designers)
• Approval and escalation system (mandate)
• Measurement of negotiation success
• Common negotiation standards (corporate playbook)
• Knowledge sharing system
27. Towards a
new negotiation culture
If we want to move from improved negotiation
compententies to a new negotiation culture, we
need to work on:
• Individual NQ
• ONQ
28. Mission for HR managers?
• Only 20-30 % of HR managers reports that
they are strategically involved
• Yet, HR managers are strategically well
placed to foster a new negotiation culture
based on Negotiation Intelligence
29. Thank you
for your
attention!
Prof Dr Katia Tieleman,Vlerick