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©PMMS Consulting Group 2011. All rights reserved. Cips Negotiation Challenge Round 1
©PMMS Consulting Group 2011. All rights reserved. A process through which parties move from their initially divergent positions to a point where agreement may be reached Negotiation – A definition
©PMMS Consulting Group 2011. All rights reserved. HOUSE OF NEGOTIATION 3
©PMMS Consulting Group 2011. All rights reserved. The warm and tough approach Warm Cold Tough Easy Warm and tough Assertion Value and respect Good communicator 4
©PMMS Consulting Group 2011. All rights reserved. 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 cant make the other party agree but you can persuade them. 17 th birthday – persuasion practice session
©PMMS Consulting Group 2011. All rights reserved. Team A = Parents Team B = Teenagers approaching 17 th birthday Parents - You are looking forward to your son/daughters 17 th 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 17 th. You express how you feel and work to persuade your parents you should have a car too. 17 th birthday – persuasion practice session
©PMMS Consulting Group 2011. All rights reserved. Be in control of your emotions – dont 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 Using Emotion
©PMMS Consulting Group 2011. All rights reserved. Dont be too quick to ask Why? Get your own logic in first Keep to one powerful argument – dont dilute Be credible If others cant see it, change tack Counter logic with emotion Using logic
©PMMS Consulting Group 2011. All rights reserved. Be slow to threaten Threaten at the business, not the person Use a discreet or veiled threat Never make a threat you cant ….. Be credible Add if to transfer threat to bargaining Using threat
©PMMS Consulting Group 2011. All rights reserved. Dont expose your position early Dont put a marker down Dont seem too eager to move Move, in small steps, Get a return for any concession you make Thank and bank Using bargaining
©PMMS Consulting Group 2011. All rights reserved. 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….. Using compromise
©PMMS Consulting Group 2011. All rights reserved. Preparation & Planning OpeningTestingMovingConcludingReviewing The negotiation cycle
©PMMS Consulting Group 2011. All rights reserved. Flipchart interactive exercise The negotiation cycle
©PMMS Consulting Group 2011. All rights reserved. The objective here is…. To place you in the best possible position before the negotiation commences Preparation ………researching the issues Planning ….strategy, tactics, logistics Preparation and planning
©PMMS Consulting Group 2011. All rights reserved. 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 Preparation and planning objective setting
©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. 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 Testing
©PMMS Consulting Group 2011. All rights reserved. Types of question Open Closed Probing Multiple Leading Reflective Hypothetical Testing – questioning techniques
©PMMS Consulting Group 2011. All rights reserved. To achieve the maximum movement from the other party and make minimum movement yourself, in relation to your targets Moving
©PMMS Consulting Group 2011. All rights reserved. Progressive and enthusiastic summary So were agreed on the menus and the opening hours - were getting through it, lets move on Thank and bank Thank you. I appreciate it. Can we move on to… Thanks for that, I do appreciate the offer, its a good move, however could you look again at… Encouraging movement
©PMMS Consulting Group 2011. All rights reserved. To reach a workable agreement To record what has been agreed To agree the next steps To condition for next time Concluding
©PMMS Consulting Group 2011. All rights reserved. comparison with SMART targets extent of plan achieved what went well / what didnt what could I have done better hard and soft successes personal, team, organisation or industry patterns Review
©PMMS Consulting Group 2011. All rights reserved. Share two key learning points Learning review
Leading global excellence in procurement and supply ©PMMS Consulting Group All rights reserved. CIPS Negotiation Challenge Round 1.
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