2. Course Overview
• Understand how often we all negotiate and the benefits of
good negotiation skills.
• Recognize the importance of preparing for the negotiation
process, regardless of the circumstances.
• Identify the various negotiation styles and their
advantages and disadvantages.
• Develop strategies for dealing with tough or unfair tactics.
• Gain skill in developing alternatives and recognizing
options.
• Have the opportunity to practice the “how to” of these
skills in a supportive environment.
• Understand basic negotiation principles, including
BATNA, WATNA, WAP, and the ZOPA.
3. • How would you define negotiation?
• What other words might we use instead of
“negotiate”?
Any method of negotiation may be fairly judged
by three criteria:
• It should produce a wise agreement if agreement
is possible.
• It should be efficient.
• It should improve or at least not damage the
relationship between the parties.
What is Negotiation?
5. Positional Bargaining
What is Negotiation?
Customer Shopkeeper
• How much do you want for this
brass dish?
• That is a beautiful antique, isn’t it?
I guess I could let it go for $75.
• Oh, come on, it’s dented. I’ll give
you $15.
• Really! I might consider a serious
offer, but $15 certainly isn’t
serious.
• Well, I could go to $20, but I
would never pay anything like
$75. Quote me a realistic price.
• You drive a hard bargain. $60
cash, right now.
• $25. • It cost me a great deal more than
that. Make me a serious offer.
• $37.50. That’s the highest I’ll go. • Have you noticed the engraving?
Next year, pieces like that will be
worth twice what you pay today.
6. • Arguing over positions produces unwise agreements
• Arguing over positions endangers ongoing relationships
• Being nice is no answer!
What is Negotiation?
7. What is Negotiation?
Soft Hard
• Participants are friends • Participants are adversaries
• The goal is agreement • The goal is victory
• Make concessions to cultivate
the relationship
• Demand concessions as a
condition of the relationship
• Be soft on the people and the
problem
• Be hard on the problem and the
people
• Trust others • Distrust others
• Change your position easily • Dig in to your position
• Make offers • Make threats
• Disclose your bottom line • Don’t disclose your bottom line
• Accept one-sided losses to
reach agreement
• Demand one-sided gains as the
price of agreement
• Search for the single answer:
the one they will accept
• Search for the single answer: the
one you will accept
• Insist on agreement • Insist on your position
• Try to avoid a contest of wills • Try to win a contest of wills
• Yield to pressure • Apply pressure
8. The answer to the question of whether to use soft
positional bargaining or hard is “neither.” This
method can be boiled down to 4 points.
•People: Separate the people from the problem.
•Interests: Focus on interests, not positions.
•Options: Generate a variety of possibilities before
deciding what to do.
•Criteria: Insist that the result be based on an objective
standard.
What is Negotiation?
9. • Soft negotiators want to avoid personal conflict and so
make concessions readily in order to reach agreement.
• Hard negotiators see any situation as a contest of wills
in which the side that takes the more extreme position
and holds out longer fares better.
• There is a third way to negotiate, a way neither hard nor
soft, but rather both hard and soft. This method
suggests that you look for mutual gains whenever
possible.
What is Negotiation?
10. Researchers have found there are three
basic negotiating styles.
•Co-operative Style
•Aggressive Style
•No Pattern
What is Negotiation?
12. What are the characteristics a successful
negotiator must have?
•They see possibilities rather than problems.
•They are excellent communicators.
•They keep an open mind.
•They have confidence in their own abilities (or act like
they do) and the negotiation process.
•They are willing to listen.
•They are optimistic.
The Successful Negotiator
13. • Their egos don’t get in the way of a win/win solution.
• They are creative and ready to consider ways of
doing things differently.
• They are flexible.
• They have excellent self-control.
• They are always well-prepared.
• They are life-long learners.
The Successful Negotiator
14. Topic List:
• Communication skills
• Understanding body language
• Problem solving
• Creative thinking
• Building enthusiasm and confidence
The Successful Negotiator
15. Only our minds can produce fear.
• Fear of humiliation
• Fear of failure
• Fear of rejection
• Fear of powerlessness
• What are some other fears you are familiar with?
Preparing for Negotiation
16. • Do you know things about you that are
true, but that you would prefer to avoid?
• When people make comments about (or when
situations expose) things that we are ashamed of
or that we try to deny, we say that they are
“pushing our buttons.”
• When you know what your own personal hot
buttons are, you can prepare for them and then
control your reactions.
• Take a few moments to write down some of your
hot buttons and ways to respond when those
buttons are pushed.
Preparing for Negotiation
17. Preparation Checklist
• Determine your main objective.
• Determine your supporting points.
• Determine a fallback position.
• Identify your Best Alternative To a Negotiated
Agreement (BATNA) and Worst Alternative To a
Negotiated Agreement (WATNA).
• Identify your WAP.
• What Zone Of Possible Agreement (ZOPA) might
exist?
Preparing for Negotiation
18. Case Study
You and your best friend recently decided to become
roommates and share a two-bedroom apartment.
You are a freelance artist and you work from home.
Because you spend more time at home, she feels
that you should do more of the housework and pay a
larger share of the power and water bills. This issue
is causing significant strain on your relationship, so
you decide to try to negotiate a solution.
Preparing for Negotiation
19. • What might be some of your hot buttons?
• Determine your main objective.
• Determine your supporting points.
• Determine a fallback position.
• Identify your Best Alternative To a Negotiated
Agreement (BATNA) and Worst Alternative
To a Negotiated Agreement (WATNA).
• Identify your WAP.
• What Zone Of Possible Agreement (ZOPA)
might exist?
Preparing for Negotiation
20. Some things you can explore about the negotiator:
•What is their business about?
•What are their competitors like?
•What is their stock like?
•What associations does the person belong to?
•What people do you both know?
•What hobbies does the person have?
Preparing for Negotiation
21. • Always prepare your research in a professional
format and bring it with you.
• Ensure you have separate folders for confidential
information and information you’re going to share.
• Keep both sets of information with you at all times
during the negotiation.
• You should have an information sheet outlining
your main objectives, supporting points, fallback
position, BATNA, WATNA, WAP, and ZOPA.
The Nuts and Bolts
22. • The best place to meet is somewhere that you feel
comfortable – your office, your company’s
boardroom, or even your favorite coffee shop.
• The worst place is somewhere your opponent feels
comfortable.
• Neutral ground would be a rented boardroom or a
restaurant neither of you have visited before.
• If you’re given the choice, choose a time of day
that works best for you.
The Nuts and Bolts
23. Case Study
You and your best friend recently decided to become
roommates and share a two-bedroom apartment.
You are a freelance artist and you work from home.
Because you spend more time at home, she feels
that you should do more of the housework and pay a
larger share of the power and water bills. This issue
is causing significant strain on your relationship, so
you decide to try to negotiate a solution.
The Nuts and Bolts
24. • What documentation might you want to bring?
• What would be your home turf?
• What would be neutral ground?
• What would be your roommate’s home turf?
The Nuts and Bolts
25. Here are some things to keep in mind to make a
positive impression:
•Confident posture
•Eye contact
•Minimal body movement
•Clothes are clean, unrumpled, stain-free
•Shoes are clean and polished
•Fingernails are clean
•Pleasant expression
Making the Right Impression
26. The Rule of Twelve suggests that we first
notice and remember three things about
people we meet.
•The first twelve inches (shoulders up).
•The first twelve steps a person takes.
•The first twelve words a person speaks.
Making the Right Impression
27. Research tells us people determine seven
things from your appearance.
•Income
•Education Level
•Social Position
•Sophistication
•Success
•Moral Character
•Trustworthiness
Making the Right Impression
28. The message you communicate with your
handshake is determined by five factors.
•Degree of firmness
•Dryness of hand
•Depth of grip
•Duration of grip
•Eye contact
Making the Right Impression
29. Tips to dress for success:
• Do your research
• What does your appearance say?
• Consider your work environment
Making the Right Impression
30. • Small talk has a bad reputation.
• However, without small talk, many of us will never
get to those “real” conversations.
• Small talk helps us put others at ease and make
them comfortable.
• Small talk breaks the ice and goes a long way
toward furthering a relationship.
• It is crucial to getting negotiation off to a good start.
Making the Right Impression
31. • When you are out with a gathering of friends, do you find
it easy to just chat away without thinking of what to say
next?
• How about when you get thrown in with a group of people
you don’t know?
• Where can you get some good conversational openers?
• What are some ways you have started conversations with
people you didn’t know?
• What doesn’t work?
Making the Right Impression
32. • Another good way to establish common
ground is to set out some ground rules for
the negotiation.
• This is also known as meta-negotiation, or
negotiating about how you will negotiate.
• What are some good ground rules?
Session Seven:
Getting off to a Good Start
33. • Once the warm and fuzzies are over, it’s time to
get into the meat of the negotiation.
• Start by outlining your position and having the
other party outline their position.
• If you’ve identified a zone of possible agreement
(ZOPA) that gives a solution that you’re happy
with, you will want to outline that as well.
Exchanging Information
34. What If…
• Your opponent appears to have made up their mind.
• Your opponent is in a bad mood.
• Your opponent keeps interrupting you.
• Your opponent becomes emotional.
• Your opponent keeps using words you don’t understand.
• Your opponent is using unfriendly words.
• Your opponent’s body language appears unfriendly.
Exchanging Information
35. Techniques for Success
• Equalization
• Building a Case
• It’s Too Bad…
• Wear Them Down
• Mix It Up
• Bridge the Gap
The Bargaining Stage
36. In most negotiations there are four major obstacles
that inhibit the inventing of an abundance of
options:
•Premature judgment
•Searching for the single answer
•The assumption of a fixed pie
•Thinking that “solving their problem is their problem.”
Inventing Options for Mutual Gain
37. There are some easy ways to overcome these
challenges and invent options towards mutual gain.
•Make their decision easy
•Whose shoes?
•What decision?
•Identify shared interests
Inventing Options for Mutual Gain
39. • Go to the balcony.
• Step to their side.
• Invite them to step to your side.
• Build a golden bridge.
• Make it difficult to say “no.”
• Use high-yield questions.
Getting Past No and Getting to Yes
40. On the road from No to Yes, you’re likely to reach
one (if not several) impasses, where one or both of
you are digging in your heels and you’re not making
progress. Break it by:
•Taking a break.
•Identify hidden interests.
•Deal with unrealistic expectations.
•Use brainstorming techniques.
Getting Past No and Getting to Yes
41. What should you do once you break the
impasse and get past “no”?
•Avoid positional bargaining.
•Separate the person from the problem.
•Focus on interests.
•Work towards a mutual gain solution.
•Insist on using objective criteria.
Getting Past No and Getting to Yes
42. • There are three natural and instinctive reactions to
negative responses: we want to strike back, give
in, or break off negotiations.
• No matter which response we choose, we don’t get
what we want from the process.
• How can we develop a mental attitude of
detachment?
Dealing with Negative Emotions
44. If you are alert to these possibilities, you have
the opportunity to respond by:
•Challenging them
•Asking them some questions that can clarify
or expose the deception
•Play dumb and see what happens
•Make a request
Remember, always know your personal hot
buttons.
Dealing with Negative Emotions
45. • It helps to use the other person’s name.
• Listen and allow the other person to vent and get
their feelings out.
• Don’t interrupt.
• Try not to use red flag words like “but,” “always,”
and, “never.”
• Give them a token or early concession of
something you consider less important, but may be
important to the other party.
• Apologize for the situation, not your action.
• Agree with the other party using a sentence like,
“From your perspective, you are absolutely right.”
Dealing with Negative Emotions
46. • Point out where you agree more than you point out
differences.
• Build their self-esteem. Give them sincere praise
on what they do well.
• Prepare three questions for which they will have to
say “yes.”
• Make sure your words and your body language are
consistent.
• Use more “I” than “you” statements.
• People don’t care what you know until they know
that you care.
Dealing with Negative Emotions
47. • Do you truly think your opponent will
say yes?
• If you’re not sure, keep bargaining.
• You may want to summarize your last
counter offer, or ask your opponent for
more details on their last offer.
• Body language can be your biggest
key.
Moving from Bargaining to
Closing
49. Things not to do:
• Beg, plead, or bully.
• Give your opponent time to think the deal
over.
• Raise additional questions or points during
your closing procedure.
Moving from Bargaining to
Closing
50. • For simple negotiations, a verbal agreement will
probably be sufficient.
• You will, however, want to date and sign any notes
that you took and any documentation you gathered
and file them away for reference.
• It’s also good to send a follow-up letter outlining
the terms of the negotiation and get a signed
receipt.
Moving from Bargaining to Closing
51. • For more complex negotiations, written documents
will likely be involved.
• We strongly recommend that you use a lawyer. It’s
worth the investment.
• If possible, have your lawyer prepare the document
to be signed. If you are taking this route, make
sure you have all the necessary paperwork with
you when you go to the negotiation.
• Read the document over thoroughly, clause by
clause. Ask about anything that is unclear to you.
• Ensure that you and your opponent have signed,
original copies of all documents. Keep your copies
in a safe place.
Moving from Bargaining to Closing
52. In general, there are three possible
outcomes to a negotiation.
•Lose-Lose
•Win-Lose
•Win-Win
The Closing Process
53. • What do we mean by a sustainable
agreement?
• What makes a sustainable agreement?
Three Steps:
1.Getting everyone’s perspective
2.Reviewing the information
3.Outlining the options
The Closing Process
54. Getting Consensus
• Please explain what we have agreed to.
• Do you agree with what we have agreed to?
• Are you committed to carry out the agreement?
• If not, what factors need to be clarified?
The Closing Process
