Power Negotiation

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HOW TO USE LEVERAGE IN WINNING YOUR
OBJECTIVE

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Power Negotiation

  1. 1. POWER NEGOTIATION RIMMON A. PAREN Master in Business Administration Senior Student
  2. 2. POWER NEGOTIATING  Sharpen your beat-the system skills.  Tap the hidden powers within YOU!  Understand body language  Discover and develop your charisma  Manipulate a confrontation (Everything form the physical setting to the actual argument)  Use fear & anger effectively without losing your “cool”.
  3. 3. MOTIVATING OPPONENTS SO THAT YOUR OBJECTIVE BECOME THEIRS! “There are but two powers in the world, the sword and the mind, in the long run the sword is always beaten by the mind.” Napoleon
  4. 4. When to Use Power Negotiation  Purchasing or remodeling a home  Buying a Car or an appliance  Asking the boss for a raise, etc. To achieve your goals, you must have a working arsenal of power negotiating techniques. And more important is possessing a precise and accurate knowledge of the conception of power.
  5. 5. Glossary of Terms  Power = (lit.) the ability to accomplish objectives, i.e. Physical strength, force, high position  Art of persuasion = Motivation  Negotiator = asking or pushing favor/s  Opponent = recipient of negotiation techniques & strategies  Negotiator’s negotiating objective = goal  Leverage = Process of increasing power to attain the desired result
  6. 6. Chapter 1  POWER NEGOTIATING DEFINED Any systematic treatment of a subject should begin with a definition so that everyone may understand what is the object of the inquiry. Cicero Power – the ability to accomplish objectives, i.e. Physical strength, force, high position Negotiating – motivating, persuading
  7. 7. Power - the ability to accomplish objectives, i.e. Physical strength, force, high position  Goals:  Accomplish objectives  Motivate opponent
  8. 8. Power Negotiating  The ability of the negotiator to motivate an opponent in a manner that is favorable to the negotiator’s negotiating objectives.
  9. 9. The “Crooked Picture” Power negotiating technique  Usually used for opponents that has strong negotiating positions. Most especially for PERFECTIONIST, it makes them uneasy.
  10. 10. It is an act of breaking the opponents concentration  Example:  Picture frame hanged crooked.  Sloppily stacked papers, books  Overflowing ashtrays
  11. 11. Objective:  Impairment  Distraction  Unfunctional Result: Air of discontentment Impaired presentation Favorable condition to the negotiator Negotiator’s negotiating objectives are becoming favorable because of decrease of opponents effectiveness automatically means an increase in negotiator’s effectiveness.
  12. 12. Be careful!  Negotiation is a very delicate business, it is mind pitted against mind.
  13. 13. A simulation:  Confidence Level Negotiator Opponent
  14. 14. Be Careful!  Negotiation is a very delicate business, it is mind pitted against mind. ! Vs.
  15. 15. Chapter 2  An Essential Primary Steps in Using Negotiating Power  ….Our opponent is our helper. Edmund Burke
  16. 16. World War II Lesson  Gen. G.S. Patton vs. Field Marshall Erwin Rommel Gen. Patton read the books of FM E. Rommel about “OPN Desert Fox” thus defeating the latter.
  17. 17. Observe this things!  Opponents habit – we tell people all about ourselves by our habits. Physical Outlook: • Nicotine stained finger • Sloppily dressed • Coffee drinkers and etc.
  18. 18. Personal Contacts -time to be observant  From the first time the opponent sits down to negotiate, watch for the habits.  Leg Crossing  Leaning Body  Jerking Movement  Sudden raise of voice Weak manifestation of advocacy
  19. 19. Background Investigation - Former encounter with other negotiator  HAZARDS!  Inaccuracy of the information  Mistaken conception, biased, or prone to exaggerate  Anticipated info gathering may leak “false” information  Can be used by opponent for further encounters.
  20. 20. Scrutinize Opponent’s Written Works  Read published books, but better take an account on oral statement where he/she will not be unable to rehearse, edit or prune. Sample Case: Labor Union vs. Administrator
  21. 21. Anticipation  Negotiator may use tentative countering strategy and provide facts & arguments to increase the negotiators upper hand of the situation.
  22. 22. Out-of-date writings  Thinking shifts overtime – don’t rely on it too much.  Somehow, it might reflect still his personality or line of thinking by his or her previous writings.
  23. 23. The Necessity for Probing  Watch the opponents action and derive a conclusion by reasoning that those actions are his/her habit, and equally important is to listen to every word the opponent says.  OBSERVATIONS:  Financially Conservative – puffed the cigar up to the filter or virtually burn one’s finger.  Unnoticed the burning flesh made by cigar.
  24. 24. OBSERVE:  Observe a preoccupied opponent, he is vulnerable!  Applying to what you see and hear towards winning the negotiation.
  25. 25. Chapter 3  Use of Leverage to Increase Negotiating Power Give me a lever long enough and a prop strong enough, I can single handed move the world. Archimedes
  26. 26. ADVANTAGE  Advance Knowledge  Use of fear Sample Case: Parcel of Land for Sale
  27. 27. Benefits  As the lever grows longer, the effort is less in moving your objective toward the goal.  Increasing your negotiating leverage or power gives you a more advantageous position to move or persuade the opponent.
  28. 28. Chapter 4  Features:  Take time to think –it is a source of power Old Irish Prayer
  29. 29. Four Conception of Power  Two, pertains directly to you, perception of own negotiating power and your conception of the extent of your opponent’s negotiating power.  Two, pertains to the opponent, your opponent’s conception of the extent of your negotiating power and your opponent’s conception of the extent of his negotiating power.
  30. 30. Emotional Intelligence (E.Q.) EMOTIONAL UNEMOTIONAL Accuracy in Judgment
  31. 31. Chapter 5  Negotiator’s Conception of their Own Negotiating Power Should Be:  Evaluate the strength & weaknesses (YOU)  Gather all facts  Research on Laws – if a legal problem  Decision making on favorable and unfavorable conditions
  32. 32. Points to Ponder!  Avoid over estimating or under estimating your potential.  Towards opponent – Rule of Thumb  To over estimate the opponent’s negotiating power rather than under estimating it. -Avoid being caught off-guard.
  33. 33. Advantage  Why the certainty on conception of the opponent towards the negotiator’s power  Show the force (Intimidation)  Repetition – mother of all learning ex. Advertisements, flaunting
  34. 34. Disadvantage  Might be misconstrued as just a show of force and not a real threat by an experienced negotiator.
  35. 35. Benefits:  Understanding Potential Power Means:  Affects the final negotiation outcome Sample Case: Employee asking for a raise.

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