Negotiation Skills

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Negotiation Skills
Kalada Apiafi, ITF 099 (NIGERIA)
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OBJECTIVES

• To
• Demonstrate The Concept Of Negotiation
• Identify The Role And Importance Of Power, Time,
  Information, Communication Skills And Personality
  In A Successful Negotiation
• State The Principles And Techniques Of Successful
  Negotiation
• Enable You Negotiate With Confidence

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OUTLINE

• Module 1 Introduction
• Module 2 Principles
• Module 3 The Stages Of Negotiation
• Module 4 Power
• Module 5 Information
• Module 6 Time
• Module 7 Gambits
• Module 8 Communication
• Module 9 Negotiation Styles
• Module 10 How Both Sides Can Win

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1. INTRODUCTION

• You Negotiate Everyday Anytime You Want
  Something From Someone And Anytime Someone Wants
  Something From You, You Are Negotiating.
• Negotiation Is Not An Event But A Process
  Advance Planning Is Therefore A Must
• In A Successful Negotiation, Everyone Wins
• Negotiation Is The Process Of Using Power And
  Information To Affect Behaviour Within A Web Of
  Tension

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2. PRINCIPLES

• Personalized Transactions Have A Greater Chance
  To Succeed
• It Helps To Develop A Good Relationship With The
  Other Party Before You Negotiate
• Do Not Assume. Make The Other Party Talk About
  Itself, Its Underlying Feelings, Its Organisation

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• Give Information Slowly And Cautiously. The Worst
  Mistake You Can Make Is To Reveal Your Real Price
  Limit, Your Deadline Or The Full Seriousness Of
  Your Situation
• If You Concede Something Be Sure You Get
  Something In Return. Concessions Come In
  Different Forms And Sizes

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• If The Other Party Has Done Its Share Of Making
  Concessions, Give It Some, So It Can Save Face
• Move Towards Your Objective(s) Slowly, Making
  Concessions One At A Time
• If You Need To Consult On Concessions, Please Do
  So

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• Team Members Gain New Importance In The Case Of A
  Deadlock When It May Be Necessary To Substitute
  Negotiators
• You Are At An Advantage If You Take Notes During
  The Negotiation And Write Up The Agreement
• The Document Should Be Written As If It May
  Ultimately Be Read In Court

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3. THE FOUR STAGES

• Clarify The Other Partys Objectives
• Information Gathering
• Action Plan
• The Actual Negotiation

INFORMATION GATHERING
INFORMATION GATHERING
INFORMATION GATHERING
INFORMATION GATHERING
ACTION PLAN
ACTION PLAN PLAN
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Other Partys Objectives

• What Do They Want?
• What Do They Have To Offer?
• How Important Is The Subject Of Negotiation?
• What Are Their Options?
• The List Is Practically Endless

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Information Gathering

• Draw On All Information Sources
• Know The Subject
• Know The Other Party Personality (Ies),
  Reputation
• Motives
• Professional Opinions
• Knowledge Is Power

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Action Plan

• Objectives
• Work With Your Team And Organisation
• Write Them Down In Order Of Priority
• This Enables You Gain Commitment Of
• Your Organisation As Well As Gain
• Greater Control Over The
• Negotiation Because You Are Better
• Prepared

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• Develop A Strategy
• Be Prepared To Make Concessions, Bearing In Mind
  Cost And Benefit Of Each
• Determine Tactics
• Specific Manouevres To Be Used At Negotiation
  Table
• Determine The Time Frame

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• THE ACTUAL NEGOTIATION

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• ADVANCE PLANNING IS A MUST

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4. POWER

• A Subjective Mental Force (Perception) If You
  Believe You Have It, You Have It, If You Believe
  You Dont (Even If You Do), You Dont Have It.

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What Influences People

• Title Power
• Reward Power
• Coercion Power
• Referent Power
• Charisma Power
• Expertise Power
• Situation Power
• Information Power
• Surroundings Power

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• Confusion Power
• Competition Power
• Risk Sharing Power
• Identification Power
• Legitimacy Power
• Commitment Power
• Persistence Power
• Precedent Power
• Attitude Power

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• THE POWER IS WITHIN YOU ALL YOU HAVE TO DO IS
  FIND IT

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5. INFORMATION

• The More Knowledge One Side Is Able To Get About
  The Other, The Better Chance There Is For Victory
• Ask Questions Directly From The Person(s), From
  Others, From Professionals
• Choose A Neutral Place For Preliminary
  Information
• Look Out For Verbal And Non Verbal Cues
• Test The Validity Of Information

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6. TIME

• Eighty Percent Of Concessions Will Be Made In The
  The Last Twenty Percent Of The Time Available
  (80/20 Rule)
• The Value Of Services Tend To Diminish Rapidly
  After The Services Have Been Rendered
• Time Pressure Is One Of The Strongest Forces In
  Getting Concessions In Negotiation
• In Negotiation Time Is Money

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7. GAMBITS
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Opening

• Reluctance
• Planning
• The Flinch
• Feel/felt/found
• Want It All
• First Offers
• Agreeable Means Able To Agree
• Vise

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Middle

• Higher Authority
• Splitting The Difference
• Get Smart.Play Dumb
• The Trade Off
• Impasse VS Deadlock
• The Hot Potato

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Ending

• Walk Away Will Power
• Good Guy/bad Guy
• The Withdrawn Offer
• The Decoy And Red Herring
• The Nibble

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8. COMMUNICATION

• LISTENING THE KEY

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Body Language

• Avoid Negotiating Over The Phone
• Be Careful With Anything Other Than A Straight
  Handshake
• If You Are Negotiating With Two Other People Make
  An Effort Not To Be Seated Between Them
• It Is Better To Disperse The Negotiation If You
  Are Outnumbered

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• Men Will Normally Keep Their Jackets Buttoned
  Until They Feel Comfortable In Their Surroundings
• Study Blinking Rates The Eyes Have It
• It Is When There Is A Change In Behaviour
• That The Good Reader Of Body Language
• Should Pick Up His Ears And Be Careful

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Hidden Meanings

• ALWAYS LOOK OUT FOR THINGS THAT ARE BROUGHT UP
  WHEN THE TIME IS RIGHT AND /OR AT THE POINT OF
  LEAST RESISTANCE

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I

• THROWAWAYS as you are aware incidentally
  before I forget by the way
• LEGITIMISERSfrankly honestly to tell you the
  truth
• JUSTIFIERS I will try my best Ill see what I
  can do
• ERASERS but however
• DECEPTIONS I know its none of my business
• PREPARERS I dont mean to be personal I need a
  big favour I dont want to intrude
• TRIAL BALLOONS Supposing

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9. NEGOTIATING STYLES

• Pragmatic (Street Fighter)
• Bottom Line
• Straight To The Facts
• Time Conscious
• Active
• Likes To Be In Charge

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• Extrovert (Den Mother)
• Emotional
• Easily Motivated
• Friendly
• Excitable

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• Amiable (Pacifier)
• Loves People
• No Sense Of Time
• Analytical (Executive)
• Thorough
• Analyzes
• Seeks Root Causes

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HOW BOTH SIDES CAN WIN

• BOTH PARTIES SHOULD ACCOMPLISH SOMETHING
  IMPORTANT
• BOTH SIDES HAVE CARED ABOUT EACH OTHERS
  OBJECTIVES
• BOTH SIDES FEEL NEGOTIATIONS WERE CONDUCTED
  FAIRLY
• BOTH SIDES FEEL THEY WOULD LIKE TO DO BUSINESS
  TOGETHER AGAIN
• EACH PARTY FEELS THE OTHER IS DETERMINED TO KEEP
  TO THE CONTRACT

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LOSING NEGOTIATORS

• NARROW THINGS TO ONE ISSUE
• FEEL WEAK
• JUMP TO CONCLUSIONS
• DONT GET SUFFICIENT INFORMATION
• ARE UNWILLING TO APPRECIATE THE POSITION OF THEIR
  OPPONENT

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CONCLUSION

• EVERYTHING YOU WANT IS WITH SOMEONE ELSE BUT YOU
  HAVE TO DO MORE THAN ASK YOU HAVE TO NEGOTIATE