Strategic Negotiation Nothing but Negotiation Strategic Negotiation Graham Botwright Roger Greenfield © 2007, The Gap Partnership, All Rights Reserved

Two parties resolve differences to reach agreement Negotiation is where... Two parties resolve differences to reach agreement © 2007, The Gap Partnership, All Rights Reserved © 2007, The Gap Partnership, All Rights Reserved

Commercial negotiation is where... The buyer wants to buy and the seller wants to sell and the basis of the business needs agreeing © 2007, The Gap Partnership, All Rights Reserved

Sell Negotiate Persuade Question Rationalise State Argument Listen Convince Justify Qualify Explain Enthuse Ask Negotiate Question State Listen Think Wait Control Position Consider & Weigh Tell © 2007, The Gap Partnership, All Rights Reserved

The behaviours of negotiators The values of society Caring Considerate Co operative Conforming Dependable Fair Generous Honest Open Rational Reliable Truthful Unselfish Willing Arrogant Closed Dishonest Emotional Inconsiderate Indifferent Irrational Mean Rejecting Selfish Unfair Unreasonable Unreliable Untruthful The behaviours of negotiators © 2007, The Gap Partnership, All Rights Reserved

‘Any man who tries to be good all the time is bound to come to ruin among the great number who are not good. Hence a prince who wants to keep his authority must learn how not to be good, and use that knowledge, or refrain from using it, as necessity requires.’ A simple process based approach which results in different actions depending the the chosen strategy. Niccolo Machiavelli. 1469-1527 © 2007, The Gap Partnership, All Rights Reserved

The balance of power The level of dependency - BATNAs The power of the brand History / precedents Market conditions & competitor activity The nature of the product or service Each party’s time pressures Each party’s circumstances Personal relationships © 2007, The Gap Partnership, All Rights Reserved

Negotiation Power Laws The Law of Reciprocity The Law of Scarcity The Law of Authority The Law of Legitimacy The Law of Relativity The Law of Difference © 2007, The Gap Partnership, All Rights Reserved

Questioning and Listening Information is power Questioning and Listening Talking and Arguing GAINS POWER LOSES POWER © 2007, The Gap Partnership, All Rights Reserved

Are you ‘in charge’? Do others view you as someone who turns up late? Do others view you as disorganised? Do others see your lack of planning? Do others see you as talkative? Do others view you as passive? Do others view you as aggressive? Do others view you as wanting to be liked? Do others see you missing deadlines? Do others see you as apologetic and excusing? Do others see you as emotional? 0: Strongly disagree 1: No strong view 2: Strongly agree © 2007, The Gap Partnership, All Rights Reserved

Negotiation context Price is the most important variable It can be tough and arrogant There is little dependency on each other There is no long term contract The deal is win/lose or competitive Price is still important Now there are other variables or ‘levers’ discussed in the deal Both parties need to share information Negotiations are about getting things in return for concessions Price is less important than finding creative solutions to add value There is a warm relationship Both parties are more dependent Trust is important Both parties benefit from the deal © 2007, The Gap Partnership, All Rights Reserved

Trust ‘The act of sharing information, demonstrating flexibility, using the law of reciprocity’ © 2007, The Gap Partnership, All Rights Reserved

Positive/affirmative Co-operative Positive/affirmative language Manage Information sharing Build on their ideas Park Issues rather than reject Provide options -How CLIMATE Reject issues Inflexible No , Can’t Won’t ! Gestures, Inappropriate NVC Secretive - no information sharing Competitive © 2007, The Gap Partnership, All Rights Reserved

In Return Cost + + In return Cost Cost In return US THEM © 2007, The Gap Partnership, All Rights Reserved

Power and Relationships   People rarely exploit their power fully Power is obtained from many sources Power can be exploited competitively, collaboratively or creatively A ‘relationship’ is not a ‘soft’ and ‘fair’ approach A relationship takes years to develop and seconds to shatter © 2007, The Gap Partnership, All Rights Reserved

8 Things to consider Negotiators do not sell or rely on logic Negotiators offer satisfaction to the other party Negotiators are not their feelings Negotiators assess and exercise power Negotiators are in charge Negotiators adapt behaviour to circumstances Negotiators are able to build trust Negotiators seek out low-cost / high-value trades © 2007, The Gap Partnership, All Rights Reserved

Nothing but Negotiation ‘You only have power over people so long as you don’t take everything away from them. When you’ve robbed a man of everything, he’s no longer in your power – he’s free again’ A. Solzhenitsyn © 2007, The Gap Partnership, All Rights Reserved