Transcript Slide 1

Essential
Negotiating
Skills for Cost
Engineers
* And a little bit about AACE International
© 2011 AACE International Inc. “AACE” and the AACE logo are registered marks of AACE International (06-10)
Agenda
• Why Negotiating is an important
skill
• Types of Negotiations
• The 7 Steps
• Cultural Considerations
• Update on AACE International
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My Background
• Global association management professional for 15+ years
including tenure with ASME
• MBA, Certified Internal Auditor, Certified Government
Auditing Professional and Certified in Control SelfAssessment
• Recognized as a Distinguished Faculty member by the
Institute of Internal Auditors for conference presentations,
facilitations and seminar instruction
• Topics include: communication skills, hostile negotiations,
conflict resolution, audit skills, generational differences,
creative problem solving and risk management
• AACE International Executive Director for 109 days
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Meaning
• The word “negotiation” stems from the
Roman word negotiari meaning “to carry on
business” and is derived from the Latin root
word neg (not) and otium (ease or leisure).
That’s the central point: It’s not easy!
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Negotiating: A Critical Skill
• It is a part of everyday life
• It makes you valuable to your company,
supervisor and department
• It gives you confidence and builds your skill
set
• It makes the team stronger
• It can save your company time, money and
resources
• Bottom line it can earn you more money, a
promotion and more clout
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Types of Negotiations
• Informal – the kind you do every day
• Formal:
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Budget Issues
Trade offs between scope, time, costs, quality
Change management
Contract Overruns
Workspace and Equipment
Vendor Selection
Risk Management Strategies
Pay scales & Bonuses
The 7 Steps to Successful Negotiations
Why we
exist!
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The 7 Steps to Successful
Negotiations
Prepare
Set the Tone
Listen and get the issues on the table
Look for Common Ground
Shoot for Collaboration
Spell out Decisions
Close with a final Summary
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Preparation is Key
• Do a DUMP Sheet
• What Outcomes do you want out of the
meeting?
• What is your BATNA?
• What is your bottom line?
Set the Tone
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Clarify Purpose
Physical environment
Collaborative mindset
Ready and willing to listen
Keep a sense of humor
Actively Listen
• Focus on what is
being said; maintain
good eye contact,
lean in; head nodding
• Ask Questions
• Paraphrase
• Don’t tune out!
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Common Ground
• A summarizing tactic
• Transitioning tool
Areas of Agreement
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Areas of Concern
Agreements/Disagreements
Worksheet – Why it Works
• Listening in Stressful Situations
• Bearer of Bad News
• More Analytical/Objective Perspective
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“By fighting you never get enough, but by
yielding you get more than you expected” –
Dale Carnegie, How to Win Friends and
Influence People
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Strive for Collaboration
1. Willingness to listen with objectivity to all
sides of the story
2. Listening to peoples’ different perspectives
to the situation
3. Willingness to brainstorm solutions that will
be of mutual benefit
4. Stay focused on the problem and not the
people
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Spell Out Decisions
Closing
• Put detailed decisions on
paper
• Express expectations
• Close meeting with final
summary, expectations,
next actions to take, and
deadlines
• Always reconfirm
deadlines
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A Word on Salary Negotiation
– Research
– Strike first
– Make them
sweat
– The complete
package
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The Golden Rule of Resolving
Conflict
Myth Busting
• Most literature on negotiation and conflict
management espouse the collaborative WinWin approach as the only style to use.
• That is not exactly true
• Collaboration yields the best success. In truth
it depends on the person and the situation.
You must think strategically in terms of your
approach
Don’ts of Negotiation
• Don’t negotiate via email. It leads to the escalation
of issues. Pick up the phone or even better meet in
person. You can always get the documentation
later.
• Don’t Allow emotion to escalate
• Don’t negotiate with the unempowered
“Let us never negotiate out
of fear. But let us never fear
to negotiate” – John F. Kennedy
Inaugural address January 20, 1961
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Cultural Considerations
• Most people in most cultures hate conflict
• Common issues:
– Language barriers
– Reference issues
– All filter through their individual values, beliefs, cultural bias – this
leads us to interpret through our own lense
– People rely on stereotypes
• According to the Harvard Business School “Deal making
across cultures tends to lead to worse outcomes compared
to negotiations within the same culture”
• Take time to study the person on the other side of the
bargaining table, including the country in which he/she is
from, his/her company, etc.
Richard D. Lewis Model
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.
AACE
© 2011 AACE International Inc. “AACE” and the AACE logo are registered marks of AACE International (06-10)
AACE Membership Trends Since 2002
Net Certification Trends:
BadgeCert Program
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Noteworthy Information
• Section dues payments will occur at the
beginning of the FY based on the 12/31/14
membership
• S&K 6 is in edit and will be released in 2015
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Federal Agency Roundtable
• District Architecture Center (Washington Chapter AIA)
421 7th St. NW
Washington, DC - October 17, 2014
from 8:30 am to 12:30 pm
• The focus of the roundtable discussion, which will be facilitated
by officers of the Association, will be “The Benefit of
Professional Certifications within Government Contracting:”
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The Second ITCM Conference will be
held in Bangkok Thailand
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Questions?
Contact Information
Charity Golden, MBA, CIA,
CCSA, CGAP
[email protected]
© 2011 AACE International Inc. “AACE” and the AACE logo are registered marks of AACE International (06-10)