CMI Effective Negotiation in Business by Fredrik Sandvall
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Welcome to
Chartered Management Institute
© 2012 SBR Consulting. All rights reserved
June 21 2012 Presenter Fredrik Sandvall FCMI
© 2012 SBR Consulting. All rights reserved
Fredrik SandvallNegotiator?
1. I have an interest in others 2. I love win-win solutions!
© 2012 SBR Consulting. All rights reserved
Effective Negotiation in Business
1. Negotiation introduction 2. Prepare for negotiation3. Negotiation cycle
© 2012 SBR Consulting. All rights reserved
Effective Negotiation in BusinessIntroduction
Separate people from problem Position does not equal person Understand the other party’s interests What are their motivators and views
Preparation is key If you prepare you have more options
The association negotiation - conflict Chinese characters for Conflict
• Danger • Opportunity
© 2012 SBR Consulting. All rights reserved
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Elements of negotiation – Learn from the masters – Our children
§ They know you better than you know them!
§ They know you will always love them
§ They bid first and aim high
§ They understand the process and hierarchy of family decision making
§ They are not afraid of rejection
§ Uninterested in costs and practicalities
§ They actively and happily seek opportunities to negotiate
§ In short, the fully comprehend the concept of MAN
© 2012 SBR Consulting. All rights reserved
14
NegotiationQuestions to ask yourself to know the ‘real deal’
06/21/12
1. Do you have good communication with the right people? 2. Do you know their real motivators / dissatisfactions?
3. Have they agreed in principle to work with you?
4. Have you identified concerns / issues they have?
5. Do they agree with those concerns / issues?
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NegotiationInterest vs. position – Effective preparation
06/21/12
Before entering any negotiation, identify: • Know your goals • What your ideal outcome would be• What you can reasonably expect to achieve• Your lowest acceptable settlement (bottom line)
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NegotiationInterest vs. position – Effective preparation
06/21/12
Before entering any negotiation, identify: • What variables you can introduce to the negotiation • How important a continued cooperative relationship with this person is to you • What the other party’s ideal outcome might be• What they might be prepared to accept
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NegotiationInterest vs. position – Effective preparation
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Before entering any negotiation, identify:
Your options if you fail to achieve your bottom line:• Withdraw • Accept the situation without protest • Accept the situation with protest
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NegotiationOptions
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When negotiating, there are 3 options: •Variables •Constants •Coverts
Perspectives: the other parties and yours
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NegotiationWin-Win negotiation
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Objectives
Negotiable
Alternatives
Relationships
Expected Outcomes
Consequences
Power
Solutions
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NegotiationNegotiation cycle
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NegotiationNegotiation cycle
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1 Our belief and value
Key point•Helping buyers discover wants and needs - seeking win-win outcomes
Key Behaviours involved •Belief in value of the service •Identifying and fulfilling the customer needs
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NegotiationNegotiation cycle
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2 Establish rapport
Key point•Adapting to customer’s different styles •Developing empathy and trust •Establish common ground, sharing needs and interest
Key Behaviours involved •Creating the right climate before you start to negotiate •Think about the environment; where you hold the meeting, etc
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NegotiationNegotiation cycle
06/21/12
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3 Sort our issues
Key point•Identify, clarify and checking for understanding of all problems and concerns •Remember to ask “Expanding Questions” - “Really tell Me more” •Don’t interrupt
Key Behaviours involved •Welcoming and understanding objections •Establishing and confirming issues •Clarifying, checking for understanding and summarising •Prioritise issues
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NegotiationNegotiation cycle
06/21/12
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4 Choose solutions together Key point•Focusing on the problem, seeking and proposing solutions •Establishing possible negotiation variables •Acknowledging and listening •Looking at the Big Picture •Third Person Validation
Key Behaviours involved •Seeking and offering solutions which work out problems and concerns •Listen and take notes •Clarify areas where uncertainty •Summarise your understanding of their situation
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NegotiationNegotiation cycle
06/21/12
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5 Agreement
Key point•Summary of the mutually agreed solution •Positioning - only agree if works for you •Do not agree on position if the major issue has not been agreed
Key Behaviours involved •Repeating what is agreed •Ending positively
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NegotiationNegotiation cycle
06/21/12
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6 Follow up
Key point•Confirm clarity of agreement for those directly involved in discussions as well as those not •In business maybe a contracts
Key Behaviours involved •A sharing partnership •Accuracy •Discipline to do this quickly
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NegotiationNegotiation cycle
06/21/12
Photo: http://www.freedigitalphotos.net/
7 Review
Key point•What will I repeat or avoid next time
Key Behaviours involved •Reflecting what worked •Identifying any pattern you wish to repeat
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Negotiation
06/21/12
Photo: http://www.freedigitalphotos.net/
Questions
Further reading Future contact
© 2012 SBR Consulting. All rights reserved
Fredrik SandvallFredrik.sandvall@gmail.comfsandvall@sbrconsulting.comWWW.SBRCONSULTING.COMLinked In@FredrikinLondon
© 2012 SBR Consulting. All rights reserved
Effective Negotiation in Business
Chartered Management Institute June 21 2012
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