Transcript Negotiation
Cips Negotiation Challenge Round 1 ©PMMS Consulting Group 2011. All rights reserved. Negotiation – A definition A process through which parties move from their initially divergent positions to a point where agreement may be reached ©PMMS Consulting Group 2011. All rights reserved. HOUSE OF NEGOTIATION ©PMMS Consulting Group 2011. All rights reserved. The warm and tough approach Warm Warm and tough Assertion Value and respect Good communicator Easy Tough Cold ©PMMS Consulting Group 2011. All rights reserved. 17th birthday – persuasion practice session • Both groups have 10 minutes to prepare for the negotiation. • Each group list all the variables you may need in order to persuade the other party to your way of thinking. Remember you can’t make the other party agree but you can persuade them. ©PMMS Consulting Group 2011. All rights reserved. 17th birthday – persuasion practice session • • Team A = Parents Team B = Teenagers approaching 17th birthday • Parents - You are looking forward to your son/daughters 17th birthday. You have already told them that you have bought them a series of driving lessons. You feel this is an extravagant present as most teenagers have to work and pay for their own lessons. • Teenagers - You are grateful for receiving driving lessons and appreciate how hard your parents work. However, ALL your friends get driving lessons plus a car for their 17th. You express how you feel and work to persuade your parents you should have a car too. ©PMMS Consulting Group 2011. All rights reserved. Using Emotion • Be in control of your emotions – don’t let them control you! • Use from a sincerely held belief • Use early in the negotiation • Use to increase the “perceived value” of your bargaining • Use to counter logic ©PMMS Consulting Group 2011. All rights reserved. Using logic • • • • • • Don’t be too quick to ask “Why?” Get your own logic in first Keep to one powerful argument – don’t dilute Be credible If others can’t see it, change tack Counter logic with emotion ©PMMS Consulting Group 2011. All rights reserved. Using threat • • • • • • Be slow to threaten Threaten at the business, not the person Use a discreet or veiled threat Never make a threat you can’t ….. Be credible Add “if” to transfer threat to bargaining ©PMMS Consulting Group 2011. All rights reserved. Using bargaining • • • • • • Don’t expose your position early Don’t put a marker down Don’t seem too eager to move Move, in small steps, Get a return for any concession you make Thank and bank ©PMMS Consulting Group 2011. All rights reserved. Using compromise The behaviour of last resort • 50/50 is not the only compromise • Compromise favours the more extreme party • Let the other party suggest compromise… …..the one suggesting compromise probably accepts or moves towards the position of the other….. ©PMMS Consulting Group 2011. All rights reserved. The negotiation cycle Preparation & Planning Reviewing Opening Concluding Testing Moving ©PMMS Consulting Group 2011. All rights reserved. The negotiation cycle Flipchart interactive exercise ©PMMS Consulting Group 2011. All rights reserved. Preparation and planning The objective here is…. To place you in the best possible position before the negotiation commences Preparation ………researching the issues Planning ….strategy, tactics, logistics ©PMMS Consulting Group 2011. All rights reserved. Preparation and planning objective setting We need to set clear targets for each variable • IDEAL Our ideal settlement, we strive to achieve it – our AIM HIGH figure or STRETCH target! • REALISTIC Realistically we feel that this is where we might finish up! • FALLBACK The point beyond which it is not commercially viable to do business Plan to be flexible as objectives may need to be changed ©PMMS Consulting Group 2011. All rights reserved. Opening The Vital First Impression • Timekeeping • Politeness • Physical appearance and dress • Personal hygiene • • • • The hand shake Eye contact Smile The opening words ©PMMS Consulting Group 2011. All rights reserved. Testing • To test the validity of the assumptions we have made • To see where movement in the other party is likely to come from • To understand what is likely to be expected of us ©PMMS Consulting Group 2011. All rights reserved. Testing – questioning techniques Types of question • Open • Closed • Probing • Multiple • Leading • Reflective • Hypothetical ©PMMS Consulting Group 2011. All rights reserved. Moving To achieve the maximum movement from the other party and make minimum movement yourself, in relation to your targets ©PMMS Consulting Group 2011. All rights reserved. Encouraging movement • Progressive and enthusiastic summary “So we’re agreed on the menus and the opening hours we’re getting through it, let’s move on” • Thank and bank “Thank you. I appreciate it. Can we move on to…” “Thanks for that, I do appreciate the offer, it’s a good move, however could you look again at…” ©PMMS Consulting Group 2011. All rights reserved. Concluding • To reach a workable agreement • To record what has been agreed • To agree the next steps • To condition for next time ©PMMS Consulting Group 2011. All rights reserved. Review • • • • • • comparison with ‘SMART’ targets extent of plan achieved what went well / what didn’t what could I have done better hard and soft successes personal, team, organisation or industry patterns ©PMMS Consulting Group 2011. All rights reserved. Learning review • Share two key learning points ©PMMS Consulting Group 2011. All rights reserved.