Art of Negotiation So you want to be a good negotiator?

Negotiation - Definition a discussion intended to produce an agreement a discussion intended to produce an agreement process to reach or achieve an agreement process to reach or achieve an agreement  coming to or agreeing terms transaction of business aimed at reaching a meeting of minds among the parties transaction of business aimed at reaching a meeting of minds among the parties  bargaining

What is Negotiation? Negotiation is about both sides reaching a good outcome Negotiation is about both sides reaching a good outcome  Win-win situation Negotiation isn’t just about getting your own way or giving in Negotiation isn’t just about getting your own way or giving in  that is what happens when people fail to negotiate Negotiation isn’t persuading other people to accept your point of view Negotiation isn’t persuading other people to accept your point of view

Medium for Negotiation Face-to-Face meetings foster rapport & offer fewer openings for misunderstanding & deceit Face-to-Face meetings foster rapport & offer fewer openings for misunderstanding & deceit Phone if tensions are already high to reduce the possibility of pressure tactics Phone if tensions are already high to reduce the possibility of pressure tactics allows you to be less inhibited in a negotiation allows you to be less inhibited in a negotiation

Rules of Negotiation Find out what the needs of the other person are Find out what the needs of the other person are Try to meet them without losing sight of your own goals Try to meet them without losing sight of your own goals  Don’t assume that any other intelligent person must think the same way  Don’t have such a high regard for your own opinions & motives

Cross-cultural Negotiation Western cultures - United States, United Kingdom & Europe Western cultures - United States, United Kingdom & Europe  seem more concerned with maintaining individual rights  more likely to resort to competition & problem solving Developing nations - Colombia, Pakistan, Taiwan Developing nations - Colombia, Pakistan, Taiwan  focus more on preserving relationships  prefers more indirect means of arriving at a solution

Qualities of Negotiation Know what you want Know what you want Be shrewd - look for a win-win situation Be shrewd - look for a win-win situation Be a good listener - open to what the other side is looking for & try to accommodate that Be a good listener - open to what the other side is looking for & try to accommodate that Identify key issues quickly Identify key issues quickly Be creative, patient & seek common ground - have an empathy for people Be creative, patient & seek common ground - have an empathy for people

Forces of Negotiation Time Time  The person who has the most time wins  80% of concessions are made in the last 20% of the time Information Information  The more knowledgeable you are, the better a deal you will get Options Options  Always keep your options open. Have a fall-back position Approach Approach  Keep focused on your goals & priorities  Have high expectations & you will achieve high outcomes

Negotiation Plan Set out to reach a win-win situation. Set out to reach a win-win situation.  Both sides should leave the negotiation feeling they’ve come away with something and that they’re satisfied. Say something positive & appreciative Say something positive & appreciative  It will increase the goodwill on both sides Keep smiling & being pleasant Keep smiling & being pleasant  sooner or later you’ll get your point across Be clear about your bottom line Be clear about your bottom line  Decide, in advance, what really matters & what doesn’t  where you’ll compromise & where you won’t  Then stick to it

Negotiation Plan cont Give yourself room to manoeuvre Give yourself room to manoeuvre  Make sure you have something to offer the other person, as well as something you want Listen & keep listening Listen & keep listening  understand what the other person’s point of view  shows respect and good intentions, and  will make the other person feel valued Keep options open Keep options open  End the negotiation politely, and with a smile

Tactics Prepare, prepare, prepare! Prepare, prepare, prepare! Never let your ego negotiate Never let your ego negotiate Always let the other person save face Always let the other person save face Don't name a price first Don't name a price first Never accept the first offer Never accept the first offer Know when to fold Know when to fold

Tactics cont Know your bottom line Know your bottom line  be prepared to stick to it Never have "Take it or leave it" ultimatum Never have "Take it or leave it" ultimatum Always leave door open Always leave door open  Walk away with "Looks like we can't agree today”  “Let's sleep on it and talk again later."

Discussion points What type of information do you need to have before you go into a negotiation? What type of information do you need to have before you go into a negotiation? What does win-win really mean? What does win-win really mean? What should you listen for in a discussion? What should you listen for in a discussion? If time is not on your side, what do you do? If time is not on your side, what do you do? What the ways in which you are different from the person you are negotiating with? What the ways in which you are different from the person you are negotiating with? Who is your role model? Who is your role model?