BECOMING A DEAL BUILDER: Communication Success Through Added Value Negotiating BECOMING A DEAL BUILDER: Communication Success Through Added Value Negotiating Dr. Steve Albrecht, PHR, CPP, BCC (619)

THE WIN-LOSE METHOD 1. Make or receive one offer. 2. Make or receive a counteroffer. 3. Use or defend against tricks and tactics. 4. Haggle, reconcile, delay, make concessions. 5. “Split the difference.” (“position” oriented, few tradeoffs, confrontive vocabulary, and reductive)

THE ADDED VALUE NEGOTIATING METHOD 1. Clarify your interests first, then for T.O.S. 2. Identify your options, using value factors. 3. Create at least two deal “packages.” 4. Agree on one deal with T.O.S. 5. Perfect the deal. (“value” oriented, many tradeoffs, positive vocabulary, and additive)

THE POWER OF TRANSPARENCY u Practice “incremental disclosure.” u Stay within your comfort zone. u Think in terms of tradeoffs, not concessions. u Enhance your confidence by doing your homework. u Trust your instincts. u Model ethical and productive behavior.

12 POSSIBLE VALUE FACTORS u Price u Terms u Delivery u Quality u Service u Training u Resources © u Money u Property u Actions u Rights u Risks

STEP 1: CLARIFY YOUR INTERESTS FIRST, THEN FOR T.O.S. u Know what you want going in. u Weigh your short and long-term needs, goals, and relationships. u Put yourself in the T.O.S.’s position. u Calculate the real and hidden costs of any deal. u Don’t confuse interests with options.

STEP 2: IDENTIFY YOUR OPTIONS, USING VALUE FACTORS u Brainstorm the possible value factor combinations. u Create a list of acceptable options to meet your needs and those of T.O.S. u Factor in any new information. u Analyze the costs to you and T.O.S. in terms of tradeoffs. u Have someone else review your work.

STEP 3: CREATE AT LEAST TWO DEAL “PACKAGES” u Avoid single-issue and sequence negotiations. u Offer to create a set of deal packages for T.O.S. to consider. u Or, allow them to create some deals, or agree on a third party. u Include the many value factors so each deal is balanced in its own way. u Don’t allow “cherry-picking.”

STEP 4: AGREE ON ONE DEAL WITH T.O.S. If no deal package is acceptable: u Create more, take a break, do more homework, ask better questions, ask T.O.S. to create deals, stand firm. If at least one deal is acceptable: u Agree on any deadlines and the design of the final agreement, then move to Step 5.

STEP 5: PERFECT THE DEAL u Encourage the use of PEA’S and PEC’s. u Watch for the “afterbite” ploy. u Review the finished deal package carefully and have others help you. u If this is a long-term deal, model “shared fate” post-negotiation feelings. u Use rituals, rewards, and celebration.