Presentation on theme: "2 Breakout Session #104 Tom Reid Chief Problem Solver Certified Contracting Solutions, LLC Louisville, CO www.certifiedKsolutions.com April 15, 2008 10:45."— Presentation transcript:
2 Breakout Session #104 Tom Reid Chief Problem Solver Certified Contracting Solutions, LLC Louisville, CO www.certifiedKsolutions.com April 15, 2008 10:45 to 11:45 AM Advanced Negotiation Techniques Dealing with Negotiation Fears
5 Fear of Negotiating Key skill for contract managers One of the major impediments to effective negotiation is fear
6 Primary Fears in Business Fear of looking foolish Fear of the unknown Fear from past bad experience
7 Fear of Looking Foolish We all want to be a “good person” –Leaders –Parents –Competent business people
8 What is the “Perfect Deal”? Depends on the circumstance Depends on your perspective Depends on your goals Can a good deal go bad?
9 Reject my Deal – Reject Me We personalize our effort You are “tainted” by bad results –Even if you did not cause them –Even if you could not have avoided them –You feel you can’t save face –Your reputation as a negotiator is bad
12 What is Success? We all want to bat 1.000 In business, often anything over 50% is pretty good Success is amorphous You can’t know what “might have been” Position yourself to: –Capitalize on positive risk –Minimize negative risk
13 Mistakes Part of being human If not making any – probably not doing anything Accept your mistakes; you can’t change history Learn from them You don’t fail until you stop trying
14 Fear of the Unknown You can’t know everything There is more you don’t know than you do know Seek training in negotiation skills Have substantive knowledge of the situation
15 Understand the Process Does the first person who speaks always lose? Is good cop/bad cop a legitimate technique? When is it appropriate to slam your fist on the desk and walk out?
16 Understand the Subject Matter Do you know what you are buying? Have you gone out and “kicked the tires”? Do you know your company’s strategic plan? Do you know whether cost, schedule, or technical excellence is the key driver for your company?
17 Understand the Relationship What do you know about the other party? Would you want to have a beer with them? What motivates them? Why are they doing business with you?
18 Fear of Change One of the greatest learned fears Every day is a new adventure The only constant in life is change Deal with it!
19 What Did You Know And When Did You Know It? Known knowns Known unknowns Unknown unknowns
20 Fear from Experience Experience is an excellent teacher “Tried it once and failed, so I’ll never do THAT again!” Experience allows us to rationalize Can you explain WHY it was a bad experience and learn from it?
21 So – What to do? Prepare Study and practice Understand power Understand fear
22 Prepare Understand the subject matter Know your company’s objectives Prepare your BATNA, then improve it Be rested and nourished Have a negotiation plan/agenda THINK!!
23 Study and Practice Ever fly with a pilot who had NOT been through the simulator? All skill development takes study and practice What was the last book on negotiation that you read? Do you do mock negotiations, murder boards, or lessons learned for your negotiations?
24 Understand Power Power is like money – neither good or bad Power exists whether you recognize it or use it Often it is more perception than reality Preparation exhibits power
25 Understand Fear Negotiations are not usually fight or flight situations Most fear is self generated –Called WORRY –Treat fear signals as opportunities for positive change Developing relationships reduces fear
26 What Does Zig Say? F.E.A.R = False Evidence Appearing Real Fear motivates Harmful fears versus helpful fears – know the difference Fear can be your friend
27 Conclusion Success requires responsibility Don’t fear negotiations –Prepare –Understand –Study –Build relationships Position yourself to pass it on
28 “The first responsibility of a leader is to define reality. The last is to say thank you.” Max De Pree Author & Business Executive