Negotiation Skills Binod Kumar Bista Shilu Pradhan

With whom do you negotiate in your daily life?

Children Wife/husband Parents Siblings Supervisor Subordinates Colleagues Customer

A Story of 17 Camels & 3 Sons

Story of 17 camels & 3 sons Once there was a man who owned seventeen camels. One day, he called his three sons and said, “I am too old to look after my camels. So I shall divide my seventeen camels amongst the three of you. My eldest son will get half the camels, my second son will get 1/3rd of 17 camels & my youngest son will get 1/9th of 17 camels.

Story of 17 camels & 3 sons As it is not possible to divide 17 into half, or 17 by 3 or 17 by 9, the sons started to fight with each other. How will the sons divide the camels?

MORAL of the Story MORAL: The attitude of negotiation is to find the 18th camel i.e. the common ground. In order to reach a solution, the first step is to believe that there is a solution.

Definition of Negotiation “It is the process of combining conflicting positions into a common position, under the decision rule of unanimity” Henry Kissinger

Negotiation: Characteristics Leave little to chance: The more prepared you are to negotiate, the easier it is to improvise; Show empathy: It boils down to how well you can see the world the way they’re seeing it; Be sensitive to nonverbal cues: When the eyes say one thing, and the tongue another, a practiced man relies on the language of the first;

Negotiation: Characteristics Don’t take things personally: Half our mistakes in life arise from feeling when we ought to think and thinking when we ought to feel; Be an innovative and creative problem-solver: Find a way to expand the pie, so that there’s more for everyone; Stay flexible: It’s the key to compromise, which in turn is key in reaching concessions and conclusions.

Win Win Negotiation

Negotiation: Elements Communication Relationship Interest Options Legitimacy Commitment BATNA

Using the Elements Communication Relationship Interests Options Legitimacy If “Yes” If “No” Alternatives Commitment Copyright © 2008 CMPartners. All rights re

Negotiation: Elements Interest: A negotiator’s fears, concerns, unmet needs & things one cares about and wants; Options: The full spectrum of possible agreements; Legitimacy: Include things like legal requirements, relevant precedents, customs, market prices or wages, professional standards and policies;

Negotiation: Elements Communication: Listen actively and acknowledge what is being said; Relationship: Separate the people from the problem; Commitment: It is making sure the agreement reached is realistic and that both sides can keep their end;  BATNA: It is the standard against which any proposed agreement should be measured

WHEN WE ARE IN THE CIRCLE OF VALUE, OUR INQUIRY SKILLS BECOME VERY IMPORTANT THEN THAT OF OUR ADVOCACY.

Position Versus Interests

Position Versus Interest

BATNA BATNA-Best Alternative to a Negotiated Agreement “It is the standard against which any proposed agreement should be measured.” -- Roger Fisher and William Ury It is a walk away alternative Successful negotiation is satisfying your interest better than you could by exercising your BATNA

BATNA It tells you when to accept and when to reject the agreement - When a proposal is better than your BATNA, accept it - When a proposal is worse than your BATNA, reject it

Fisher and Ury outline a simple process for determining your BATNA: BATNAs are not always readily apparent. Fisher and Ury outline a simple process for determining your BATNA: i. develop a list of actions you might conceivably take if no agreement is reached; ii. improve some of the more promising ideas and convert them into practical options; and iii. select, tentatively, the one option that seems best

Strategic Inquiry Guidelines 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? Do you feel we “must” do a deal here? Would you prefer to work something out jointly ?

Strategic Inquiry Guidelines 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?

Strategic Inquiry Guidelines 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?

Role Play Scenario Imagine that you and your family have moved to a new town. You’re living in a month-to-month rental and have finally found the perfect house to buy. Unfortunately, the seller is being unreasonable. The house is on the market for Rs. 5,00,00,000, but your research, backed up by your broker’s opinion, tells you it’s overpriced. By your estimate, a fair price would be Rs. 4,00,00,000, but when you offer that amount, the seller tells you that you are “not even close” and doesn’t counter.

Negotiation: Tools Going into the balcony:- It is the place of self control, place of calm, & place of perspective Listening & Respect :- The cheapest concession that one can make in a negotiation is give someone basic respect Power of reframing:- It is about moving from positions to interest. Power of bridging :- It is about making the other side easier to make the decisions in our favor

Getting to YES Separate the people from the problem Focus on interest not on position Invent options together for mutual gains Figure out the objective criteria Know your BATNA