Presentation on theme: "Negotiating Skills to Reach a Deal April / May 2012."— Presentation transcript:
Negotiating Skills to Reach a Deal April / May 2012
Introduction to Negotiation
How would you define negotiation? What other words do you associate with negotiation? Terminology used in negotiations
Individual Exercise What scenario do you want to focus on? Who is involved?
Individual Exercise Describe the current situation? What are you willing to give in order to get?
Individual Exercise IssuesOutcomes RealisticAcceptableWorst possible
Interpersonal skills require that we are aware of our behaviour and of our counterparts in the negotiations. The four basic styles of behaviour gives an indication of how people react and respond to situations
Interpersonal Skills No one style is superior to the other style, and no one person can be all four styles. To improve your negotiation, know who and how to deal with the various people, and who you are.
Interpersonal Skills Avoider: dislikes conflict Compromiser: fair-minded people interested in maintaining relationships Accommodator: resolve interpersonal conflicts by resolving the other person’s problem Competitor: winning is the main thing Problem-Solver: seeks to find the underlying problem, use brainstorming to solve
Interpersonal Skills You are one of ten people at a conference table, each person sitting across from one another Someone comes in the room and says “I will give R1,000 to the first person who can persuade the person sitting across from them to come and stand behind his/her chair.”
Interpersonal Skills Results Avoider: says I don’t want to play, look foolish Compromiser: both offering R500, starts running to other side Accommodator: runs to other side, negotiates later Competitor: sits tight, demands other person move Problem-Solver: “let’s both get behind each others chairs, we can each make R1,000.”
What Makes a Good Negotiator?
Group Activity You have 10 minutes within your small group of three to brainstorm a list of the 10 key skills that successful negotiators need. List your key skills and note the reason why each of your ten skills is crucial to you as a negotiator.
Group Activity Key SkillsReasons
Negotiator’s Ratings Planning skills Integrity Verbal clarity Thinking Under Stress General Practical Sense
Negotiator’s Ratings Ability to gain respect Team Leadersh ip skills Tact Ability to exploit power Open mind
Negotiator’s Ratings Professional standardsProduct KnowledgeSelf ConfidencePersistenceInsight
Individual Exercise List all your personal strengths as a negotiator? List your personal areas for development? How good a negotiator are you? (p21)
Results You are not a successful negotiator You have some ability in negotiation You are a good negotiator You are an excellent negotiator
Steps of Negotiation
Planning Negotiators with high aspirations consistently outperform those with low aspirations. By adopting a high aspiration base, negotiators create sufficient room to make and request the necessary concessions. High aspirations generate positive psychological energy and prevent a negotiator from being rigid and defensive.
Planning A high aspiration communicates confidence to the other party and generally prevents irrational negotiation behaviour. High aspirations require the other negotiating party to expend more energy in trying to lower these aspirations, thus not focusing on promoting its own aspiration.
Planning What is the reason? What are the topics to be discussed? What is my perception of the issues? That of the opposer? What resources can I draw on?
Planning What do I know about my opposer? What do I know about the person he represents? What are the negotiating style of the other party? What are my interests?
Planning What are the interests of the other side? What are our common interests? What are the opposing interests? What standards to use to resolve conflicting ideas ?
Planning Low vs High Why is the other side talking to me? Why do they need something from me? What prevents them from doing it another way?
Setting Goals and Objectives S Specific M Measurable A Achievable C Challenging C Compatible
Outline Your Opening Position Decide on High Ball Decide on Low Ball
Opening Position This Position is Realistic Perception of Power Confirm all Agreements
Opening Position - Agenda NumberIssueSequence Priority Negotiator Priority Opposer
Define your range Start Target Walkaway BATNA: your alternatives
Agreement and Close Put pen to paper and agree on the way forward
Questioning Techniques An OPEN question is one that encourages a full response A CLOSED question is one that can be answered with a short answer
Questioning Techniques Practical Session
Ethical Negotiation INDIVIDUAL EXERCISE - A question of ETHICS Decide whether or not the approach would be appropriate p42 - (the deal is important to you)