Negotiating Skills

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Negotiating Skills
To provide you with the skills to plan
implement successful negotiation

• At the end of the course you will appreciate how
  to
• Establish objectives to be achieved by
  negotiation.
• Identify a range of outcomes from the desired
  ideal to the ultimate acceptable fall back
  position.
• Use interpersonal skills to influence others in
  both informal and formal situations to achieve
  your objectives.

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• Act assertively to achieve objectives
• Reduce resistance minimise conflict
• Know how when to accept the opinions, values
  will of others
• Work to achieve a WIN-WIN situation

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Negotiation occurs when there is something of
value that you wish to attain

• Need is the negotiators starting point
• Need is also the weakness that can be exploited
• Negotiation is also a process that is of benefit
  to all parties

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Ineffective Negotiation is about

• Non mutual benefit
• Compromising for no return
• Playing games

Think of a time when a negotiation has not been
successful. Can you identify what went wrong?
When you have purchased a house or a car Did
you negotiate terms? Were you successful?
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Effective Negotiation

• Is an important communication skill
• Reaches the agreement that best meets both sides
  requirements
• Should be conducted in a professional manner
• Be a solid foundation on which to build future
  relationships

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Preparing yourself
Preparation enables you to

• Identify your objectives
• Identify targets
• Know your resistance point
• Adopt the most suitable style
• Time the interaction correctly
• Achieve a deal

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Traditional Negotiation

• Has two sides Is a form
  of warfare
• Has opposing objectives Has a short
  sighted approach

Formal Negotiation
Informal Negotiation
Emphasises the relationship between the two
parties Encourages the spirit of any
agreement reached
Favours the party with the strongest power
base Limits the likelihood of informal talks
Emphasises the letter of agreement
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Modern Negotiation

• Enables strategic alliances to be built
• Emphasises partnerships
• Builds relationships
• Is effective long term

Outcomes From Negotiation
Need to achieve the objective set Be of benefit
to all parties Ensuring a WIN/WIN situation
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Identifying Possible Outcomes

• Write down all your objectives
• Put them in order of priority
• Identify issues that are open to compromise
• Identify those that are not

Classifying Priorities
Those that are desirable Those that are
acceptable Those that are the minimum you/the
organisation require

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What is influencing?

• Achieving a result that meets the legitimate
  needs
• of both sides
• Achieving long lasting results
• Improving the relationship of the people involved

Legitimate is the important word here. Needs
must be legitimate if influencing is to be
successful. For influencing to be effective it
has to be sustainable.
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What is influencing?
When it fails
The MIGHT IS RIGHT style of influencing always
fails. People can appear to agree but over time
they may show their disagreement by leaving the
workplace. A boss who forces his influence onto
his work-team may only see short term gains. The
relationship of trust may be destroyed and will
be hard to rebuild.
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Why is influencing important?

• Flatter organisation structures need it to be
  effective.
• Lean is mean more stress is prevalent in
  current organisations.
• The rise of the customer the customer is not
  always right, but it is our job to make them
  feel right.
• Working across organisations its the only
  positive way forward.
• The demise of traditional authority all
  employees have a vested interest in the future
  success of any company/organisation.

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Influencing is not about

• Forcing your point of view on others
• Nagging until they agree
• Giving in to someone
• Bargaining
• A debate

It is about
Dealing with others assertively Speaking with
knowledge and confidence Listening to their point
of view Appreciating the differences Showing
respect
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The Levers Of Influence

• Pull Skills
• Creating rapport
• Authentic listening
• Skilful questioning

These Pull techniques also involve the effective
use of non-verbal communication.
Creating rapport Posture Voice Tone
Volume Gesture Eye Contact Facial
expressions How we occupy our space
Consider carefully how you want to build the
relationship with someone who you will be
negotiating with.
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The aim is empathy a non-judgmental state that
aims to understand the other person.
Authentic Listening

• Authentic Listening is
• Listen for content
• Listening to the other messages
• Summarising the content
• Summarising the emotion
• Testing your assumptions

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Barriers to Listening

• Dialogue of the deal - Both sides within a
  discussion, intent on making their own point, may
  fail to listen to each other.
• Experience - The parties may have had bad
  experiences of negotiations in the past.
• Familiarity - Can be a crucial disabler when
  negotiating.
• Skim Listening - Picking up on key words and
  missing vital parts of the conversation.
• Attention span Are you focused or distracted?

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Pull Levers

• Questioning
• Have a questioning strategy
• USE
• Hypothetical questions
• Defining questions
• Probing questions

The aim is to use effective questioning skills to
Help build rapport Obtain accurate
information Obtain other peoples opinion
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Assertiveness is

• Saying what you mean
• Meaning what you say
• Asking for what you want clearly
• Listening to what the other person is saying
• Being honest about what is relevant
• Being prepared to look for a workable compromise

Being Assertive during a negotiation is the best
way to achieve a win/win outcome. Conduct your
conversation with clarity, confidence and an open
mind.
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Recognising Assertiveness
Effective body language how would you describe
this? Use assertive language what is considered
assertive language?

Never become emotional Angry Resentful Frustrated
Responding Not Reacting
Behaviour breeds behaviour Keep the temperature
low Stay detached Show respect
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Power In Negotiation

• Negotiation assumes a certain equality between
  parties

Negotiation refers to obtaining something of
value that someone else has. The focus is upon
mutual benefit. Differing power bases can lead
into fighting behaviours. Parties do test each
others strengths and probe into just how
dependant they are on each other. A balance of
power is essential if negotiations are to be
successful.
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Influencing The balance Of Power

• Facts Expertise Explore Strengthen
  Authority

Facts The skilled negotiator has all the facts
, background history and figures. Even a hardened
MD cannot fail to be impressed. Expertise Again
gained by effective preparation. Explore Pose
questions in a non threatening manner. How do we
find this solution together. Strengthen
Develop acceptance and trust . Find implement
outcomes that are of interest to both parties.
Authority it is vital that both parties have
the authority to make the outcome happen.
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Negotiation Strategy

• Opening Exploration
  Create movement
• Create Closure
  Finish

The Process
Stress the Difference
Agree Boundaries
Deny Need
Agree Boundaries On which the negotiation will
focus. Deny the need A deliberate strategy in
which both parties play down their need for a
particular outcome. From the outset skilled
negotiators will play up the fact that they do
not believe the outcome will be successful.
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Opening Negotiation

• Set the offer at the most appropriate level
• normally a long way removed from target.
• Respond in a way that is deemed most appropriate,
  usually rejection.

There is no such thing as a first offer that is
too good to refuse. Openings within negotiation
are like a chess match both parties will begin
with an offer that is far removed from
target. The opening offer is very rarely a
serious commitment.
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Exploration

• Identify Needs Wants
  Interests

Needs Those things that you feel you cannot do
without Wants Those things that people would
prefer to have Interests The reasons that lie
behind the WANTS NEEDS
Exploration is important because
It allows the parties to explore the
situation. Needs Wants are talked about
first. A skilful negotiator can see where the
other party expect the final outcome to be.
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Create Movement
During this phase it is vital that if you agree
to a concession you get something back in return
. Dont give anything away too easily people do
not value things that have been obtained with
little effort.

• Be prepared to compromise
• Explore possibilities
• Ask what if? questions
• Be clear about the variables
• Exchange

Restate your case Ensure that the agreement is
clear by going over again what has been agreed.
Restate everything that you have agreed on.
Minimise the perception of what is left to
agree. Write it down It may prompt some
questions before the deal is closed. Prevention
is better then cure.
Firming Up Proposals
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Create Closure

• Keep moving
• Dont get bogged down in detail
• Focus on issues
• Give recognition
• Give the other party a final
• opportunity to clarify any issues

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Closing

• List of issues from both sides
• Prepare a draft framework
• Tackle outstanding details
• Record each point as it is agreed
• Agree a process to review
• Agree a procedure for complaints

The skilled negotiator will not be distracted
from their task. Always remember that the whole
point of negotiation is that two parties have
something of value.
Know when to stop talking
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Failing Negotiation

• Initial commitment may be based on incomplete
  information
• Negotiation may be based on false assumption
• People communicate using their mind body
  through the use of emotion. Misunderstandings can
  arise because of stereotyping.
• Tension is caused by emotions which can then lead
  to stress anxiety.
• Listen actively with empathy to reduce the
  perceived threat and try to show acceptance and
  understanding.
• If everyone ignores the pinch then a crunch can
  be just around the corner.
• The relationship may suffer as a consequence.
• The secret of success is to look for the pinch
  before it becomes a crunch.

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Approaches to Resolve Conflict
Skilful listening to improve understanding
Assertion skills
Influence by using interpersonal skills
Emphasise issues, break up large issues
Make careful note of actions decided
Facilitation Helping people communicate
with one another. Conciliation or mediation
Working towards resolving an issue whilst
remaining independent. Advocacy negotiating on
behalf of one party.
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Outcomes From Negotiation
In a win/lose situation one party may feel
threatened by the other and react in a defensive
or aggressive way to ensure they dont get beaten
into submission. In a lose /lose situation, both
parties have lost and no-one gets what they
really want. In a win/win situation, this
provides the basis for a long lasting partnership
that can be mutually rewarding.
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Stages to Successful Negotiation

• Exchange information
• Assess Wants, Needs, Information
• Find the middle ground which is fair reasonable
  to both
• Firm up a mutually agreeable solution

Recognise these stages, work towards them. Use
the notes in this course to help
future Negotiations. Create a learning log a
simple diary will do. Assess every negotiation
you are involved in. What went well? What could
be better? What will you do differently next
time?
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A successful Negotiator can

• Build Rapport
• Network effectively
• Work in a team
• Build consensus
• Be persuasive
• Deal with conflict