Transcript Negotiating “Negotiating is the art of reaching an agreement by resolving differences

Negotiating
“Negotiating is the art of
reaching an agreement by
resolving differences
through creativity”
References
Creative Negotiating, Stephen Kozicki,
Adams Press, 1998
Business Negotiating Basics, Peter
Economy, Briefcase Books, 1994
“Diagnosing and Overcoming Barriers to
Agreement”, Michael Watkins, HBS, 2000
“Negotiation Analysis”, Michael Wheeler,
HBS, 2001
Negotiating Decisions
Style
Outcome
Principles
Style
Style is a
continuum
between two
styles:
Quick
Deliberate
Middle is
compromise
Quick Style
Negotiate in a hurry
Use when you won’t negotiate with
these people again
Get the best deal without regard to
the other side’s “win”
 Price main
consideration
Deliberate Style
Use when long term
relationship likely
Involves
cooperation and
relationship
building to reach
agreement
Needs much prep,
hard work
May move in fits
and starts
Outcomes
Realistic
Both sides satisfied, win/win situation
Usually results from deliberate style
Acceptable
Likely to result from quick style
Something is better than nothing
Always ask for a better deal
Worst
When you’re too stubborn to be flexible
Usually from quick style
Outcomes
Predetermine the outcomes before
you start negotiations, you have a
better chance of getting a better
result
“Think carefully, think creatively,
and think ahead”
Principles
There are no rules
Establish an
agenda
Everything is
negotiable
Ask for a better
deal
Be creative
Learn to say “NO”
yourself
Are you a Motivated Negotiator?
Enthusiasm
Confidence
Engaged
Recognition
Accomplishment
Pat on the back
Integrity
No trickery
Trustworthiness
Social Skills
Enjoy people
Interest in others
Teamwork
Better as a team
Self-control
Creativity
Always looking for
ways to complete
the deal
Negotiation Steps
Investigate
Presentation
Bargaining
Agreement
Step 1: Investigate
What do you want?
 Who are the real
parties involved.
What does the other
side need?
 Value to be created
and who gets it?
Decide on style
What are the
consequences of each
choice.
Consequences of Not
being Prepared
Can’t defend your position
 Trouble evaluating the issues
 Succumbing to pressure to end
negotiation
 Giving up too much too soon
 Forgetting key details
 Losing control of the process
Step 2: Presentation
Prepare other
side’s case
Present the
reasons for your
side better
Planning sheet
Issues involved
Realistic, possible,
worst
“The” Presentation
Creative title
Reduce to “must
know” items
Keywords
Mini-speeches
around keywords
Visuals
Don’t give
concessions just
to keep things
going
Make note of
concerns and
keep going
Step 3: Bargaining
When in doubt,
ask questions!
Open questions
Reflective
questions
Tactics
 Ethics
Barriers to Agreement





Structural
Strategic
Psychological
Institutional
Cultural
Tactics
Use
Walk out
 Substitution
Don’t use
Emotional outburst
Argue special case
Pretend ignorance
Play for time
Nibble and retreat
“You go first”
 Bad environment
Defer to higher
authority
Not willing to make
any changes
 Silence
Good cop/bad cop
Do’s and Don’ts
Do’s
Keep your word
Listen carefully
Leave room for
maneuvering
 Feel free to
reject
Conditional
offers
Probe attitudes
Don’ts
Make early
concession s
Extreme
opening offer
Use “never”
Make other side
appear foolish
Use “yes” or “no
answers
Step 4: Agreement
Arrangements should be neutral
and comfortable
Pay attention to what others say
Screen out all visual distractions
Ask open ended questions
Listen to responses
Proactive vs. reactive behavior
If Disagreement Persists
Recognize and list areas of
disagreement
 Rank the issues
 Assess the value to each party
 Compromise
 Brainstorm solutions
A Good Negotiator Is..
Creative
Versatile
Motivated
Has the ability
to walk away
Strive for….
Goal(1) + Limits (1)  Goal (2) + Limits (2)