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PwC Lecture: ‘Introduction to Negotiation Skills’
The document outlines essential negotiation skills, emphasizing the importance of preparation, probing, and proposing to achieve effective outcomes. It addresses common misconceptions about negotiations being contests and stresses the need for a positive attitude and good faith among parties. Additionally, various tactics and principles for conducting successful negotiations and closing deals are shared.
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PwC Lecture: ‘Introduction to Negotiation Skills’
- 1. Introduction to negotiation skills 10March 2021 Marilena Shakalli Maroudia Senior Manager & Tutor PwC’s Academy
- 2. PwC Agenda Let’s get toknow each other! 3Ps of negotiations: Prepare, Probe, Propose The negotiation process Your attitude to negotiation 1 2 3 4 PwC Negotiation tactics 5
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- 4. PwC PwC Negotiation is not acontest!
- 5. PwC PwC There are manymisconceptions around negotiations: • It’s all about getting your own way • It’s all about obtaining the cheapest deal • It’s all about beating the other side Many people see negotiations as a contest where there are winners and losers. This can be counter-productive as it prevents everyone from achieving the best possible deal because they end up opposed to each other.
- 6. PwC Let us nevernegotiate out of fear. But let us never fear to negotiate – John F. Kennedy
- 7. You don’t ask, youdon’t get
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- 9. PwC PwC The negotiating process Probing Discussing BargainingProposing Agreement Preparing
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- 11. PwC PwC Failing to prepare ispreparing to fail!
- 12. PwC PwC Preliminary Clarify your objectives Commonground Assessing the opposition Information needed Consequences of non agreement Conducting negotiations
- 13. PwC PwC Ideal, realistic andfall back positions Best alternative to a negotiated agreement (BATNA) Information to obtain (got, need, nice) Concessions – cost to us; value to them Climate (place, time) Conducting negotiations Our Position
- 14. PwC PwC Opening statement Responses tolikely questions List assumptions – how to test them Behavioural style Conducting negotiations Rehearsal
- 15. PwC PwC Even time isnegotiable Build 2-way empathy Tomorrow is another day Conducting negotiations Emergency Plan
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- 17. PwC PwC Probing consists of2 elements: • Asking questions to understand at a deeper level • Active listening Conducting negotiations
- 18. Types of questions TypeUsed when … Examples Open questions /statements you want to open up a conversation Tell me more about …. What happened next? How did you respond? Probing questions you want to find our more What were you thinking when ….? Why do you think the other party made this offer? Closed questions you want to clarify something Did you agree? Did you change the way you behaved? Conducting negotiations
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- 20. •We open withour entry point. Where we are prepared to move to is our exit point. •The distance between them is our negotiable range. • The distance between our entry point and the other party’s is the bargaining continuum. • If our exit points overlap, we could settle anywhere in the overlap. This is the settlement area, also known as the Zone of Possible Agreement (ZOPA). • If our exit points do not meet or overlap, we are unlikely to settle. Bargaining continuum
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- 22. Never give concessions - alwaystrade in Deadlines are always negotiable Stress the advantages of your offer Don’t push too hard Make use of silence If you are selling, start high then trade down, if you are buying start low then trade up Be realistic in your expectations When you’ve got an agreement leave – do not give time for second thoughts! Negotiation tactics
- 23. Don’t accept a firstoffer Leave the other side feeling they’ve got as good a deal as you Proposals are always conditional Don’t change the price, change the package Agreement is always reached through trading Focus on the facts, not personalities There must be a right of veto for true negotiating. You can always walk away and come back to it Do not exaggerate Negotiation tactics
- 24. Fragmenting Break theproblems that prevent agreement into smaller, more manageable issues What if…? Try to suggest alternative options / solutions By passing Temporarily put aside an apparently intractable issue – return to it when it seem more manageable Concession and trade Never concede something without getting something in return Tactics to move things forward
- 25. To close effectivelya negotiation you need to: • Be open to closure from the very beginning of your negotiation • Make it clear this is your final offer • Present your offer in an upbeat confident manner • Leave the other side some space to review your final offer Principles of closing a negotiation
- 26. If they say‘NO’ or haggle – move out If they say ‘YES’ – put it in a written form which is: • Brief • Factual • Concise • Accurate Principles of closing a negotiation
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- 28. Effective negotiation is 10%technique and 90% attitude!
- 29. • Make sureyour attitude is positive and your purpose is clear • Believe that others have entered the negotiating process in good faith and by behaving with integrity you set the standards for the negotiation that you wish to maintain • In order to achieve your aims you need to keep in mind what you want. Specifically, during a negotiation you should be: – Convinced of your own case: this gives you confidence in your dealings – Clear about your goal – Able to ‘walk away’ Your attitude to negotiation
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