Contents for Discussion 2 Meaning, and Framework for Negotiation Elements Involved in Improving Negotiating Abilities Tips for Improving Negotiation Skill
Negotiation 3 “Give me some of what I want, and I will give you some of what you want.”
Negotiation 4 Negotiation is an interactive communication process that may take place whenever we want something from someone else or another person wants something from us. Negotiation occurs when conflict exists and both parties are prepared to seek a resolution through discussion and bargaining.
Framework for Negotiation 5 1. Communication 2. Relationship 3. Interests 4. Options 5. Legitimacy 6. Agreement 7. BATANA
1. Communication 6 1. Advocacy or making statements. When we advocate, we give information such as facts, our opinions, conclusions, etc. 2. Inquiry or asking questions. When we inquire, we seek information for the purpose of learning.
Exercise: A – B Sell. (Instructions to B) Count the Number of Statements and the Number of Questions that ‘A’ makes 7
Purpose of Advocacy and Inquiry 8 AdvocacyInquiry Convince Persuade Prove a point Argue Sell Win Learn Gain new information Confirm Understand or clarify
2. Relationship 9 Develop the overall pattern of interaction among other parties. Interaction should improve relationships that we need: hard on the problem and soft on the people. Be friendly on relationship Don’t try to threaten the relationship
Circle of Value 10 It is made up of three core elements: InterestsOptionsLegitimacy
3. Interests 11 Interests are the core needs, desires, hopes, fears, aspirations, concerns, goals, motives, etc. of each party that underlie and motivate our positions, demands and contentions. Identify and prioritise ours; estimate and test theirs and others; identify common, differing and conflicting interests. Consider asking: Why? What else? In what priority?
Strategic Inquiry Guidelines 12 Inquiry into INTERESTS What are you trying to accomplish in these negotiations? What are your key motivations in these negotiations? What are you concerned about? If we walked away from this deal, where would you/we go? Do you feel we "must" do a deal here? I would prefer to work something out jointly. Would you? What interests would you be better met if you don't agree?
4. Options 13 Something that one can choose to do in preference to one or more alternatives- choice, preference. Possible outcomes of the negotiation. All possibilities on which we might reach agreement; Identify and consider many possible options for each issue or interest (identify, build and invent many possible "joint gain" options that could satisfy each side's interests / needs. Look for high gain / low cow cost trades); search for joint gains and possible trades. Creative thinking expands the range of possible options and promotes better solutions. Inquiry and sharing of information are key tools.
Strategic Inquiry Guidelines 14 Inquiry into OPTIONS What would be wrong with….? What other ideas might we brainstorm on this problem? If we work together, how might we make this better for both of us? Do you have the authority to make a decision on this? Do others need to be here to get this done? What would be your reaction to a possible offer like…? If I were able to offer you "X", could you say "yes" today?
5. Legitimacy 15 Correctness according to the facts of a situation, the logic of an argument, or the opinions of most people. The fairness of an agreement as measured by criteria, benchmarks, principles, laws, regulations, standards, practices. Objective criteria, benchmarks, market data, principles, laws, regulations, standards, practices, traditions, researched evidence, etc. convey a sense of fairness. Each party can have separate sources of legitimacy.
Strategic Inquiry Guidelines 16 Inquiry into LEGITIMACY Why do you think we ought to do that? What benchmarks do you see in our field of work that make this appropriate? If you were I, how would you justify that to others?
6. Agreement 17 Agreement is what we and / or the other party will or will not do. Sound agreements are well planned and crafted to be practical, durable, easily understood and verifiable. If yes (Agreement), clarify Commitments: test who, what, when and how; sequence statements about what we will and won’t do.
7. BATANA: Best Alternative to a Negotiated Agreement 18 If No, Consider/Understand each party’s Walk-away Alternatives: Alternatives are unilateral actions or decisions that either party can take without agreement from the other party. Sometimes there are many alternatives, sometimes just a few. Consider walk-away available possibilities in case we don’t reach an agreement. Do not agree to a deal that is worse than its BATNA.
Elements Involved in Improving Negotiating Abilities Knowledge: of negotiating principles of the environment of the particular negotiation of the detailed subject matter involved
Elements Involved in Improving Negotiating Abilities (contd.) Skill: in analyzing the issues (analytical) in personal interactions (interactive) in communicating (communicative)
Elements Involved in Improving Negotiating Abilities (contd.) Attitude: towards the negotiating process towards the specifics of each negotiation towards one's own role
Tips to Improve Negotiating Skills 22 The negotiator must be in SHAPE Sincere / Sensitive Honest / Humorous Attentive / Articulate Proficient Enthusiastic / Emphatic
Tips to Improve Negotiating Skills Besides, Know thyself Get as much objective data as possible before you start (Do homework) Establish precise goals at the outset of the negotiation. Practice double and triple think 23
Conclusion 24 Negotiations are everyday phenomenon and common in life, be it organization or personal matters. In fact we live in an age of negotiation. We should be working for achieving ‘win – win’ outcome from the negotiation. We have to be sure that it is done in the best way possible to achieve maximum benefit.