Download - Develop Your Influencing and Negotiation Skills · Develop Your Influencing and Negotiation Skills Annette Bak, Joy Fuerst, John Naber, and Nathalie Toussaint ... Negotiation itself

Develop Your Influencing and Negotiation SkillsDevelop Your Influencing and Negotiation Skills

Annette Bak, Joy Fuerst, John Naber, and Nathalie ToussaintMerck & Co., Inc., Whitehouse Station, NJ, USA

AAPS Professional Development San Diego, November 4th, 2014

Training Outline Definitions:

− What is a negotiation? What is influencing? National culture and negotiations MBTI and negotiations 4 key steps in a negotiation Essentials for negotiations Situations where a “no” may be appropriate;

negotiating a “no” Breakout exercise

What Is Influencing?

Influence is the ability to persuade someone to think or act in the way you want. This ability is an essential part of leadership It is a skill that is normally used in enticing

an individual toward a specific course of action that they may not be inclined to follow

Why Do “I” Need Training on Influencing People?

Influence is an essential part of leadership; but it is also valuable in everyday life Many of us work in a matrix environment

with multiple bosses or cross departmental boundaries; this requires that we influence others who may not share the same goal or agree

What Is Negotiation? Negotiation itself is a careful exploration of your position and

the other person's position, with the goal of finding a mutually acceptable compromise that gives you both as much of what you want as possible

Resolve situations where what you have conflicts with someone else’s interests− With a aggressive approach, you could seek to overpower

the other person to get what you want − With a passive approach, you could simply give in to the

other person’s wishes

There are different styles of negotiation, depending on circumstances

Situational Challenge 1: Negotiation & Influencing

You are working on a department initiative, with a team made up of 5 people at 2 different sites. Your team has made outstanding progress and has

been asked to present the results of the past year’s efforts at a face-to-face meeting with senior leadership

Due to logistical and financial issues, only 3 people will be able to attend the meeting

How does the team decide whowill attend the meeting?

Situational Challenge 2: Negotiation & Influencing

You are the rep on program XYZ for Phase II clinical trial Your team is working to define timelines for clinical

strategy and start dates for future studies The team’s strategy is to lock in the commercial

formulation composition in the next round of studies, but the team would like to expedite the studies faster than standard timelines would permit

Is this a reasonable expectation? How do you align the team on what is

best for program goals?

National Culture & Negotiations Case Study: A job application at an undisclosed American engineering

company operating in the Netherlands− A Dutch engineer applies for a junior management position

The Dutch engineer‘s background− Degree from a good university, good grades, short tenure at Dutch

engineering company− Had written a short letter indicating interest and salient personal data

The Dutch engineer was invited for an interview− The Dutch engineer behaved politely and modestly, as an applicant

should (in the Netherlands)− The American plant manager interviewed on unexpected details of

technical experience and tool design; discussed nothing of what the Dutch engineer expected

Plant manager: “Sorry – we need a first-class man” – Why?

Case study and cultural dimensions adapted from: http://geert-hofstede.com/national-culture.htmland Cultures and Organizations: Software of the Mind, Third Edition.

National Culture & Negotiations

Why did the Dutch engineer not get the position?

Different expectations− USA: Written and verbal communication assertive and achievement

oriented (overselling)− The Netherlands: Written and verbal communication modest and

consensus driven (underselling)

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USA High Mas Index (USA): Represents a preference in society for achievement, heroism, assertiveness, and material rewards for success. Society at large is more competitive. Low Mas Index (The Netherlands): Represents a preference for cooperation, modesty, caring for the weak, and quality of life. Society at large is more consensus-oriented.

Case study and cultural dimensions adapted from: http://geert-hofstede.com/national-culture.htmland Cultures and Organizations: Software of the Mind, Third Edition.

Cultural dimensions are interrelated

Example: Determining scientific strategy for a project− Danish manager with US team− Danish manager with Chinese

team

National Culture & Negotiations

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Power Distance Index (PDI): The degree to which the less powerful members of a society accept (High PDI) or does not accept (Low PDI) and expect that power is distributed unequally

Individualism Index (IDV): The degree to which the society is oriented toward selves/immediate families (High IDV) or loyalty toward larger groups (Low IDV)

Uncertainty Avoidance Index (UAI): The degree to which the members of a society feel uncomfortable (High UAI) or comfortable (Low UAI) with uncertainty and ambiguity

Cultural dimensions adapted from: http://geert-hofstede.com/national-culture.htmlLink to: More intercultural negotiations resources

This brief introduction covers a small subset of the cultural differences that may be encountered in a negotiationTake home message: Consider/research intercultural differences amongst parties in a negotiation

MBTI & Negotiations Why may MBTI and negotiations be related?

− Negotiation strategies require behaviors that many people may be adept with, but they may also require behaviors that many are not drawn to naturally

− In analyzing your own negotiating skill in the context of MBTI what specific behaviors do you use, or fail to use?

Abbreviated MBTI, test was distributed− Not a substitute for a full test with a certified instructor− The full test can be purchased at several places online

The “Myers-Briggs Type” Test− 16 Personality Types− Population Distribution

Source: Peters, Don, Forever Jung” Psychological Type Theory, The Myers-Briggs Type Indicator and Learning Negotiation, 42 Drake Law Review 1 (1993)

MBTI & Negotiations:Two Negotiation Tactics Adversarial: Gain maximizing

− Proceed in a linear fashion Negotiators attempt to induce, persuade, or deceive others into

deviating from their positions Threats and attacks are used Inquiries regarding facts and issues are evaded or shared

reluctantly Problem solving: Fair deal-making

− Involves a cognitive commitment to searching for fair solutions Flexible Non-linear First identifies underlying needs Looks for solutions that maximize potential for all parties Information is used to generate understanding about each other’s

interestsSource: Peters, Don, Forever Jung” Psychological Type Theory, The Myers-Briggs Type Indicator and Learning Negotiation, 42 Drake Law Review 1 (1993)

MBTI & Negotiations: Sensing/Intuitive The sensing/intuitive preference exerts the most influence on

negotiations 80% of the general population are sensing; 20% intuitive

Sensing tactics: adversarial Intuitive tactics: problem-solving

Linear, structured, focusing on concrete, detailed, factual information

Less structured multidimensional strategy

Limited resources, single bargaining dimensions

Identifying needs, interests, and solutions

Well prepared; ask questions togather facts

Abstract brain-storming for solutions

Focus on settlement zones between articulated positions

May not pay sufficient attention to details

Deadlock can result if compromisecannot be reached

Source: Peters D., Forever Jung Psychological Type Theory, The Myers-Briggs Type Indicator and Learning Negotiation, 42 Drake Law Review 1 (1993)

MBTI & Negotiations: Thinking/Feeling Thinkers/Feelers are split 50:50 in the general population

Thinking tactics: adversarial Feeling tactics: problem-solving

Emphasize logical and impersonal aspects of negotiation

Prefer harmony, agreement, and against Win-Lose agreements

Impersonal assertiveness Concerned about the relationship to negotiators

Competition to maximum gain Good listeners – can facilitate cooperation

Difficult to incorporate legitimate interest of others

Can be less effective against an adversarial opponent

Can be prone to attacking May make undue concessions to avoid conflict and give in too easily


MBTI & Negotiations: Judging/Perceiving Judging/Perceiving split is 50:50 in the general population

Judging tactics: adversarial Perceiving tactics: problem-solving

Wants to make decisions and get things done

Avoids commitment while advancing proposals and solutions

Extensively prepares, plans, and schedules the negotiations

Acts spontaneously - lack of planning

Sticks to rightness of view in spite of empirical evidence

Adept at generating alternative ways of settling issues

Can become frustrated with lack of progress (may lead to threats)

Difficulty bringing to conclusion; responds to questions with questionsShares information freely but can reveal too much


MBTI & Negotiations: Extroversion/Introversion Extroversion (53%) is slightly more common than introversion (47%)

in the general population

Extrovert tactics: adversarial & problem solving

Introvert tactics: adversarial

Enjoy verbal interaction and working with people in a negotiation

Not good at thinking on their feet

Speak before thinking or listening Good listeners

May leak information or rush to an offer Good at recognizing blocking and deriving blocking strategies

Great at on-the-spot brainstorming for generating alternate solutions

Can lack in team-playing

Seek feedback


Lessons A simple cognitive understanding doesn’t mean that

those behaviors can be produced− Practice − Identifying and studying negotiation skills in

colleagues

Negotiation insights− Intuition− Feeling− Judging− Extroversion− Introversion

4 Key Steps in a Negotiation Prior to the negotiation

1. Preparation, understanding the issue, setting the agenda

During the negotiation2. Agreeing on the objective/principles3. Getting to the desired outcome4. Concluding the negotiation

1. Preparation, Understanding the Issue, and Setting Agenda

Preparation is key to successful negotiations− Determine your most desired outcome, goals, bottom line,

and best alternative to a negotiated agreement Defining the problem(s) – Three key aspects to be addressed

− Understand both sides’ perceptions: Most conflicts are based in differing interpretations of the facts

− Deal with emotions: People often react with fear or anger when they feel that their interests are threatened

− Effective communication: Negotiators may simply be grandstanding their view, planning their own responses,or misunderstanding each other

Setting the agenda incorporating all views – Build trust and relationships

Source: Fisher R, Ury W., Getting to Yes: Negotiating Agreement Without Giving In. Covey SR., The 7 Habits of Highly Effective People. Watershed Associates, Best Negotiating Practices, www.watershedassociates.com

2. Agreeing on the Objective/Principles

Win-Win as an objective/principle: We both get to eat the pie, and it tastes better than either of us could have predicted!− Win-Win sees life as a cooperative arena, not a

competitive one− Win-Win is a frame of mind and heart that constantly

seeks mutual benefit in all human interactions− Win-Win means agreements or solutions are mutually

beneficial and satisfying Other less desirable outcomes than Win-Win:

− No deal− Compromise/“splitting the difference”


2. Agreeing on the Objective/Principles

Focus on interests and desirable outcomes− Good agreements focus on the parties' interests, rather

than their positions Positions are decided upon - Interests are what caused

the positions To get beyond positions: Ask why certain positions are

held and not others − Discuss interests at the negotiation Each party should explain their interests clearly Each party should listen attentively to each other's

interests


3. Getting to the Desired Outcome Brainstorm to generate options:

− Separate the invention process from the evaluation stage− Focus on shared interests - Avoid win-lose mentality − Reconcile interests by “looking for items that are of low

cost to you and high benefit to them, and vice versa” Never take their first offer Discuss/negotiate line items; wait to settle the agreement until

the total deal is apparent


4. Concluding the Negotiation Decisions based on standards make it easier to reach an

agreement and preserve relationships− Scientific findings, professional standards, or legal

precedent are possible sources of objective criteria− A shared search for an objective criterion should be

conducted for each item being negotiated− Prerequisite: Keep an open mind and be willing to

reconsider positions− Deadlock: Shift the discussion from objective criteria to

procedural criteria (revisit principles) Summarize and agree on the final deal


Essentials for Influencing and Negotiations

Influencing

Negotiation−Preparation−Attitude−Listening

Influencing Tips There is significant overlap in the skillsets for

negotiation and influencing

A key for influencing, particularly when you have no authority:− Pay attention to colleagues; identify

stakeholders− Build trust and good relationships in advance

Negotiation Tips: Preparation Undertaking preparation before initiating negotiations will help

to minimize conflict and minimize wasting of time during the meeting

Do your homework - Ensure all the relevant facts are known in order to clarify your own position− Try to understand the key facts from the other point of view− This stage can highlight any important information that

may have been missed earlier− A good rule of thumb is to spend at least as much time

preparing as you expect to spend during actual negotiations

− The preparation stage may be different for each personality type

Source: http://www.skillsyouneed.com/ips/negotiation.html

Negotiation Tips: Preparation Logistics – when, who, where

− Setting a limited timescale can be helpful− Keep attendance limited to avoid putting others in defense

mode− Try to identify a neutral location

Set the agenda – in advance – to incorporate all views− Introductions/purpose of the meeting− Clarification of the problem statement from each side− Clarification of goals from each side− Negotiation toward a WIN-WIN situation− Implementation of a course of action


Negotiation Tips: Attitude Negotiations are influenced by underlying attitudes

− The attitude of mind is the key to success or failure in negotiation

Eliminate self-limiting expectations− Don’t plan for failure before starting the

negotiation Establish a common ground

− Be sure to discuss points that you do agree on! Be careful not to dominate the conversation or

allow others to dominate


Negotiation Tips: Attitude Focus on interests, not positions

− Consider underlying interests of the other party

Use supportive language− “You’ve expressed your points clearly; I now understand

your position. I feel that...”− Avoid “but,” “however,” “you”- statements, etc., and try to

incorporate “and,” “I”- statements

Focus on maintaining the relationship− Don’t blame − Confront the issues, not the people


Negotiation Tips: Listening Listening is key to effective communication

− Verbal messages can be misunderstood

Listening is not the same as hearing− Pay attention to what is being said; how it is being

said; the choice of words, tone, and posture− Be aware of both verbal and non-verbal messages


Tips for Online Negotiating In email or over the phone, you can’t look the other person

in the eye to determine their emotional reactions to what you are saying

If you’re negotiating via email or IM, try to move the conversation to the phone− Tone of voice will communicate emotion better than

just words Prepare for your online negotiation the same as you would

in person− Set up a time to discuss and find a quiet location without

distractions− Limit conference calls to just a few people − Have an agenda

Tips for Negotiations Over the Phone Be careful of your words, and use supportive language

whenever possible Smile – it will be conveyed in your tone of voice Ask the speaker if they’re finished prior to speaking –

pauses don’t mean they’re finished Ask for clarification of the other party's proposals

rather than saying what is wrong with them Don’t start a phone negotiation when you know you

won’t have time or you are in the middle of other things− Avoid multi-tasking and remain fully engaged in

what is being discussed during the call

When to Say “No” It may be necessary to respond with “no,” instead of entering a

negotiation

Key questions to ask before agreeing to a task:− Do I have the time? − Who is the best person for the task? − Is this task consistent with my objectives?

The answers to the above should inform on whether “no” is an appropriate response

Beware of defaulting to “no” for reasons that are unprofessional:− You don't want to be involved with the task− The task is involved and/or complicated

Source: MindTools, Communication Skills http://www.mindtools.com/pages/article/newCS_92.htm

Saying “Yes” to the Person, But “No” to the Task Although your answer to a request may be "no," it may be

possible to say "yes" to the person at the same time− Explain why: let the person know you are saying "no" to this

particular task− You are more likely to maintain the relationship, and the ability

to influence, if the other party understands why the response was "no"

Saying "yes to the person and no to the task" may result in finding a new solution to address the request

To say "yes" to the person, find out:− What is actually needed?− Is there an alternate way to solve the issue?− Can I help this person find a solution?

Source: MindTools, Communication Skills http://www.mindtools.com/pages/article/newCS_92.htm

Example: Saying “Yes” to the Person, “No” to the Task

A colleague in a different department is interested in using a sample prep procedure that is routinely used within your team. The colleague asks you to prepare a large series of samples to help round out a data set that is being built to support his/her department’s initiative.

Saying Yes to the person, No to the task:− “I understand that building the data set is important

for your department. Since this prep procedure is run routinely by multiple members of my department, I can help find a time that a member from your team can observe and learn the sample prep procedure. This will allow for your team to assemble the data set in time for your department’s initiative rollout.”

Key Take-Home Messages Preparation if at all possible!

Consider:−Cultural backgrounds of negotiators−Personality types versus topic−Tactics: Adversarial versus Win-Win−Your attitude/approach−Physical conditions (face-to-face versus

phone or online)− Is a “No” appropriate?

Acknowledgement

This presentation would not have been possible without the contributions of the following colleagues:−Angela Glass−Yaling Yang

Any Questions?

Breakout (40 min)

Role-play scenario (groups of 3 or 4)−25 minutes 10 for background, 15 for negotiation

Negotiation scenario discussion−15 minutes

Small-Group Negotiations(25 min)

Backup Slides

Session DescriptionIn today’s matrixed environment, professionals throughout the pharmaceutical industry, academia, and government agencies have an increased need to effectively influence and negotiate; for example, across functions within an organization; across organizational borders; in other professional scenarios such as career development or interviewing; and in personal situations such as with family members or financially related. Individuals on interfaces find themselves needing to influence, especially in situations where the individual has no designated authority. The skills required to effectively influence are also critical to negotiations. This session will explore perspectives on influencing and negotiating that are natural to various personality types, while also describing behaviors that are beneficial to develop. The session will focus on negotiation preparation, attitudes, and listening skills, along with tips for negotiations that occur virtually (by phone, online, etc.). In the context of the team environment, the process for fair deal-making (win-win) negotiations will be emphasized. Adversarial negotiations will also be described, since individuals may find themselves faced with a gain-maximizing situation. Participants in the session will also be presented with tools to identify when saying “no” is the best negotiation outcome. Brief case studies will be used to encourage participation and application of the influencing and negotiation tools throughout the session. The session will be followed by a negotiation exercise, where participants will negotiate a relevant case.

Negotiation and Influencing Resources:Books Harvard Business School Press. (2005). The Essentials of Negotiation.

[Google Books] Available from http://books.google.com/books?id=OSPzgi8mRy8C&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false.

Harvard Business School Publishing. (2003). Harvard Business Essentials: Negotiation. [Books24x7] http://common.books24x7.com/toc.aspx?bookid=13654.

Lewicki RJ, Hiam A. (2007). Mastering Business Negotiation: A Working Guide to Making Deals and Resolving Conflict. [Books24x7] http://common.books24x7.com/toc.aspx?bookid=18589.

Long SD. (2010). Communication, Relationships and Practices in Virtual Work. [Books24x7] http://common.books24x7.com/toc.aspx?bookid=35785.

Luecke R. (2010). Best Practice Workplace Negotiations. [Books24x7] http://common.books24x7.com/toc.aspx?bookid=42079.

Negotiation and Influencing Resources:Links to MindTools

Win-Win Negotiation: Finding a Fair Compromise "Yes" to the Person, "No" to the Task The Persuasion Tools Model The Influence Model Convincing Others to Say "Yes"

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Cross-Cultural Negotiation References

Available via Books 24/7 Moran RT, Harris PR, Moran SV. Managing Cultural Differences: Global Leadership Strategies for Cross-Cultural Business Success, Eighth Edition

Gelfand MJ, Brett JM (eds.). The Handbook of Negotiation and Culture

Kremenyuk VA (ed.). International Negotiation: Analysis, Approaches, Issues, Second EditionBrett JM. Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and Make Decisions Across Cultural Boundaries, Second Edition

Download - Develop Your Influencing and Negotiation Skills · Develop Your Influencing and Negotiation Skills Annette Bak, Joy Fuerst, John Naber, and Nathalie Toussaint ... Negotiation itself

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