Transcript Become an Effective Negotiator

Workforce
Development and
Critical Thinking
LEAD 1200
CRN 25174
Chapter 9
Become an Effective Negotiator
Professor Donald P. Linden
Copyright © 2008 Pearson Prentice Hall. All rights reserved.
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Let us never negotiate out of fear. But
let us never fear to negotiate.
John F. Kennedy
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Negotiating is a skill that can and
must be learned. Being a good
negotiator is not something that you
are, but is something that you
become.
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Negotiation Defined
The concept:
 Two partners working together to transact
business in ways that are mutually beneficial
and that leave the door open for future
business transactions between the partners.
 A good negotiation will result in a deal that is
fair and balanced so that both parties to the
deal benefit
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Characteristics of Good
Negotiators
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Good negotiators are typically patient, fair,
well informed, cooperative, innovative,
imaginative, and intuitive.
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Characteristics:
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Quickly see and get to the heart of the matter
Solve problems in real time
Think clearly under pressure
Depersonalize comments that are made and see through
emotionally charged language to the issues in question
Listen carefully and with patience
Approach the process with an open mind
Develop alternative options and solutions
Watch for verbal and non-verbal cues
Think critically
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Recognize assumptions, rationalizations, justifications, and
biased information that are presented as facts
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Characteristics: (Continued)
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Take the long-term/repeat business perspective.
Give themselves and their negotiating partner room to
maneuver
Maintain a sense of humor and a positive attitude
throughout the
Consider issues from the other side’s point of view as
well as your own
Understand that timing is important to success in
negotiating
Prepare, prepare, prepare
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Preparation is Key
When Negotiating
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Going into a negotiation unprepared will
almost guarantee a bad result.
Questions:
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What do we want? What does the other side
want?
What are we willing to give up in order to get what
we want? What is the other side willing to give
up?
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Questions: (Continued)
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What do we want? What does the other side
want?
What are we willing to give up in order to get what
we want? What is the other side willing to give
up?
What is at risk here for us and for them?
How much do we know about the other side and
their needs? How much do they know about us?
Is there anyone on their team who might be an
advocate for us? Is there anyone on our team who
might be an advocate for them?
Do we have any “hot button” issues? Do they?
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Questions: (Continued)
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What we don’t know about the other side and who
can help us learn what we don’t know?
Are there factors that might affect the outcome
that we or they have no control over? What are
the factors?
What is our bottom line – at what point do we just
walk away? What is their bottom line?
What are the easy issues we can use to generate
early agreement? What are there easy issues?
What are we willing to give up in order to get what
we want? What is the other side willing to give
up?
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Conducting
Negotiations
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Negotiate in Stages (3 stages):
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Building the Foundation – laying the groundwork
for the negotiating process; state your case; both
parties must see the need for negotiating before
proceeding; explain the need for negotiation in
terms of how the other party will benefit.
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Negotiate in Stages (3 stages): (Continued)
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Building the Structure – explain the mutual
benefits based on both you and your partners
expectations and the specifics concerning your
needs and your partner’s needs.
Completing the Bridge – bargain over price,
delivery dates, warranties, and other negotiable
factors.
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Select the Time and Place with Care
The best negotiations allow both sides
plenty of time to consider offers, options,
proposals, and counterproposals.
 The best location for a negotiation is a
neutral site
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Project an Advantageous Image
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The impression that you make on your
negotiating partner is critical. People are
typically more willing to deal with
someone they can relate to. Do the
research on your negotiating partner.
Know how to dress based on your
partner company’s culture.
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Create Favorable Momentum
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Momentum is the impetus or tendency of
something to go in a certain direction. If
you can get the negotiation going in the
right direction from the outset, it will tend
to keep going in the right direction the
rest of the way. You want momentum
working in your favor from the outset.
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Additional Strategies for Use
During the Negotiation
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Once the negotiation has commenced, you
want to keep it going in the right direction.
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Think critically
Listen to what is said and what is not said
Keep your partner’s needs and hopes in mind
Be patient
Ignore personal comments
Leave yourself room to maneuver
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After Making the Deal - Follow
Through
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As soon as you conclude one negotiation,
you should begin paving the way for a future
negotiation with the same party.
Negotiations have more than one purpose:
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First – make the deal in question at the moment
Second – generate additional future business with
your new partner
Follow through and perform effectively
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