negotiation skills nico decourt. today when will you need to negotiate? what is negotiation? what is...
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NEGOTIATION SKILLS
Nico Decourt
Today
• When will you need to negotiate?• What is negotiation?• What is a good negotiation?• Hard, soft and principled methods• People, interests, options and criteria• Power and Dirty tricks
When & what will you negotiate?
• Investors and financiers• Customers• Competitors and Collaborators• Suppliers• Staff• Premises• Regulators & Government
What is Negotiation?
• Definition:-– To confer with another or others in order
tocome to terms or reach an agreement– Latin,from negotium to transact business• Most see themselves as having two ways
tonegotiate; HARD OR SOFT
Possible Outcomes
WIN- LOSE LOSE-LOSE WIN-WIN WIN-PERCEIVED WIN
Good Negotiation
• Should produce a wise agreement which– meets legitimate interests of both sides– resolves conflicting interests fairly– will last• Should be efficient• Should improve or at least not damage
therelationships between parties
HARD Negotiator
• Sees it as a contest of wills• Takes extreme positions• Holds out to the end• Wants to win ‘at all costs’BUTOften ends up producing an equally hard response and harms relationships
SOFT Negotiator
• Wants an amicable resolution• Wants to avoid personal conflict• Makes concessionsBUTOften ends up feeling exploited and bitter
Hard Method - Positional bargaining
• Each side– Takes a position– Argues for it– Makes compromises– (Hopefully) Reaches a compromise• This involves taking up and then giving
up a series of positions
A Wise Agreement?
• The more you defend a position– the more committed you become to it– The more you become interested in
“saving face”not agreement– The less concerned you are with underlyingconcerns of each party• The more you argue that it is impossible to
move, the more it becomes
Efficient?
• Time consuming• Tendency to start with extreme positions
and todefend them– The more extreme the position– The smaller the concessions– The longer the negotiation will take• Requires lots of decisions by each party
The Ongoing Relationship
• Becomes a contest of wills• It becomes a battle rather than a
devising of jointly acceptable solutions• Conflict words– ‘Can’t, won’t, not going to give in….’• Often leads to resentment & anger
Soft Method
• Many try to avoid the pitfalls of hard negotiation.
They:– Prefer to see the other side as ‘friends’– Focus on agreement not victory• Method emphasises relationships & is
often efficient• Wise Agreements? - beware the hard
negotiator
The Principled Negotiation
• Separate the people from the problem• Focus on interests not positions• Generate a variety of options before
deciding on what to do• Insist that the result be based on
objective criteria
Human interaction is essentially negotiation.Intimidating, chiseling, and tricking are NOT negotiation.
Defining Negotiation
Negotiation Is Personal
Emotions, temperament, and personality affect needs, interests, goals, and perspectives.
Ego, self-concept, and fears affect our needs.
Attitude affects our needs and our negotiation.
Knowledge of self is the starting point toward building effective negotiation skills.
Not Everything Is Negotiable Every person has limits to what he/she
will give and take. Not everything SHOULD be negotiated:
Potential for MUTUAL BENEFIT is a prerequisite to negotiation.
Components of Negotiation
Personality Approach Style Temperament Perception Interests Goals
Needs Values Power Type of Conflict Substantive
Issues Alternatives
How Do You Know What You Know?
What do you know? Beliefs may be confused with
Assumptions. Critical thinking includes asking: “Why?”
Fifteen-Step Plan
Practice critical thinking and empathy. Study psychology, sociology, communication, and conflict. Know yourself. Know negotiation styles and temperaments. Communicate effectively. Acknowledge cultural and contextual differences and
expectations. Understand the dynamics of power.
Fifteen-Step Plan
Identify interests and goals before you negotiate. Be assertive. Be persuasive. Be prepared and avoid common mistakes. Use tactics that work for you and understand other tactics. Know when to walk away. Know how to evaluate your performance and improve.
The Negotiation Process
• Analysis– Gathering info, organise it and think
about it– People, interests, options on the table,
criteria?• Planning– What to do on the four issues• Discussion– Focus on the four elements
People
• Negotiators are human - emotions andcommunication are central issues• Interested in substance and relationship• Often get intermeshed• Positional bargaining puts substance andrelationship in conflict• Try to separate relationship and
substance
People Problems
• Inaccurate Perceptions– Put yourself in their shoes– Don’t deduce their intentions from your
fears– Don’t blame them for your problem– Discuss each others perceptions– Make your proposals consistent with
their views
People Problems
• Emotions– Try to recognise and understand them– Make them explicit– Allow the other side to let off steam– Don’t react to outbursts
People Problems
• Communication– Listen actively, question & acknowledge– Speak about yourself not them– Know what you want to communicate
and whatpurpose the info will serve
Interests not Positions
• Interests define the problem• Opposed positions often disguise
compatibleinterests not just conflicting ones• Everyone has multiple interests• Human needs are the most powerful
interests
Interest Issues
• Ask why? and why not?• Make a list• Acknowledge the other sides interests as
part of the problem• Put the problem before your answer• Attack the problem not the people
Invent Options
• Avoid premature judgement - ‘just one solution’
• Avoid the either/or position• Don’t just focus on your own immediate
interests• Look through the eyes of different
experts
Objective Criteria
• Fair standards to both sides– market value– precedent– costs– Professional standards• Fair Procedures– ‘one cuts, the other chooses’, mediation
etc
Objective Criteria
• Ask ‘what is your theory?’• Reason and be open to reason• Don’t give in to pressure, shift from
position tocriteria
What if...
• They have a stronger bargaining position?
– Any negotiation has realities that are hard to
change• Your objectives– To protect yourself against making anagreement you should reject– make the most of your assets
Know Your BATNA
• Best Alternative to a Negotiated Agreement
– Your standard to measure against– Helps avoid over-optimism or summing
youralternatives• The better your BATNA the more powerful
your position• Disclosing your BATNA? What about theirs?
What if...
• They use dirty tricks,• Try to:– recognise the tactic– raise it explicitly, question its legitimacy– negotiate over it
Dirty Tricks
• Are their facts correct?• Ambiguous authority• Stressful environment• Personal attacks• ‘Take it or leave it’• Don’t be a victim!!
Conclusions
• Hard, soft or principled?• Wise, efficient and constructive?• Separate the people• Identify the interests• Determine the options• Use objective criteria• Practice the skills!
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