Negotiation skills

What is negotiation? Negotiation is a process of two or more parties working together to arrive at mutually acceptable resolution of one or more issues It deals with the conflicting situation of two or more conflicting parties to settle down the issue Negotiation refers to a process of seeking to influence others It is a ‘give-and-take’ bargaining process Negotiation occurs everyday.

Types of negotiation Broadly people use two approaches in negotiation; Confrontational: those using confrontational approach see the process as a zero-sum game in which a limited number of bargaining chips are to be won (they want to be the winners) Cooperative (interest-based negotiation): An approach to negotiation where the parties focus on their individual interests and the interests of the other parties to find a common ground for building a mutually acceptable agreement. 15/07/2019

What type of negotiator you are! Adopted form: Tracy Lee Parker 15/07/2019

Circle a number between 1-very poor descriptions of you to 5-very good description of you. 15/07/2019

I fight hard for what I want S.N. STATEMENTS 1 2 3 4 5 I fight hard for what I want   I like to find shared needs and make them focus of negotiations I like to avoid lengthy negotiations by splitting the difference I prefer a friendly encounter to an unpleasant conflict If I can stay out of a negotiation, I do 6 When I have the power, I use it to insure that my needs are met first 7 I like to turn a conflict into a cooperative effort of problem-solving 15/07/2019

S.N. STATEMENTS 1 2 3 4 5 8 I often propose a middle ground that is obviously fair to both sides   9 My priority is to maintain a good long-term relationship 10 I don't like to confront others with my complaints and concerns 11 I don't mind a good argument if it may get me what I want 12 I prefer to put my cards on the table to encourage the other party to share their information too 13 I am happy to go half way as long as the other party does too 14 I am strongly influenced by what the other party expects of me

S.N. STATEMENTS 1 2 3 4 5 15 I do not feel confident that I can get what I want by negotiating   16 I try not to let the other party know too much about my needs and position 17 I try to find new ways to see the problem in order to find better solutions 18 I do not like to waste time playing games that a simple compromise is possible 19 I may not stick up for myself as much as I should 20 When I think someone has an issue with me I try to stay out of their way

S.N. STATEMENTS 1 2 3 4 5 21 I find a good bluff or threat can work wonders in negotiations.   22 I expect honesty & trust from others in negotiation and they find me very trustworthy 23 The fairest thing in my view is to split the difference in a reasonable way 24 Some people might say I give easy 25 In many cases there is little to be gained by negotiating, so you might as well try to avoid it

Scoring Add each column and get a total score 1 _____ 2_____ 3_____ 4_____ 5_____ 6_____ 7_____ 8_____ 9_____ 10_____ 11____ 12____ 13_____ 14_____ 15_____ 16____ 17____ 18_____ 19_____ 20_____ 21____ 22____ 23_____ 24____ 25_____ ________ ________ ________ ______ ______TOTAL Compete Collaborate Compromise Accommodate Avoid or or Defeat or Cooperate Withdraw The column with the highest total represents your preferred negotiation style; the one with the smallest is your least preferred style. 15/07/2019

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Principles of negotiation Focus on interests not positions It may produce unwise agreements, it is inefficient, endangers ongoing relationship Two approaches (attitudes): I’m good, you’re good My way or the highway (not good) Create options for mutual gain Separate people from problem Be firm using objective criteria 15/07/2019

Good outcome in negotiation process depends on many variables and negotiation skills 15/07/2019

Framework negotiation skills Communication Relationship Interests Options Legitimacy Commitment Alternatives If “No” If “Yes” Enabling value Creating value Claiming value 15/07/2019

Cont… Communication and relationship Skills: Communication: Two main kinds of verbal communication.  Advocacy or making statements. When we advocate, we give information such as facts, our opinions, conclusions, etc. Inquiry or asking questions. When we inquire, we seek information for the purpose of learning. 15/07/2019

Cont… Relationship: The overall pattern of interaction among the other parties within and outside the negotiation. It is very important in negotiation and interactions should improve, not damage the our relationships Do not threaten relation at the cost of short term gain. It may yield poorer results over the long-term. Try to deal separately with the relationship between the parties and the substance issues Rather reacting to positions, probe for their underlying needs 15/07/2019

Circle of Value Interests: Interests are the problems hopes, fears, aspirations, concerns, goals, etc. of each party. Positional negotiations limit optimal solutions because parties rarely explore a broad range of potential solutions, or options. Options: The possible solutions which may satisfy the interests of both the parties are called options. Legitimacy: Using objective standards, evidence- based arguments, precedents, law, or principles is a means both to persuade the other side that an agreement is fair and to protect your side 15/07/2019

BATNA and Commitment BATNA refers to one's best alternative to a negotiated agreement. It is different from the options. It means that both the parties think what they can get if they do not come to agreement, commitment or negotiation to pursue their interests. Commitment refers to the agreement which both the parties agrees up on and respect it. Make it clear 15/07/2019

Case Study

Preparation Identifying parties Use of circle of value Legitimacy Identify interests (short-term, mid-term, long-term), key issues of ‘ours’ ‘theirs’ and ‘others’. Develop options (ours, theirs and others). Brainstorming Legitimacy

Be careful on… Emotions Getting people to the table Polarization Finding commonality and common values (win-win) Face saving Legitimacy and approval of negotiation Time and situation

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