Transcript
Eight Steps of Negotiations
Prepare Argue Signal Propose Package Bargain Close Agree
PREPARE
Prepare carefully well in advance
Prepare for negotiations and not defending
Be ready for opportunities
Reconsider your preparation items
Five key areas of preparation
Objectives Information Concessions Strategy/Style Tasks
Preparation- objectives
Define what outcome you want to achieve from the negotiation- ISSUES
The realistic expectation against each issues- INTEND
Minimum acceptable position on intends- MUST ACHIEVE or AVOID
What is the ideal outcome you want – WISH LIST
Step 1-Preparation- Objectives
Do the same for your opponent – ISSUES, INTEND, MUST ACHIEVE & WISH LIST
As negotiations progress keep your objectives under constant review: are they still realistic? Should your INTEND be boosted by a few WISH LIST items? Should you move on an INTEND to protect a MUST?
Elements of Negotiations
VALUES POSTION NEEDS NEEDS SATISFIERS NEEDS BLOCKERS
VALUES
Deeply held preferences that shape our goals and means to fulfill them. Transmitted through socialization and enduring. Values are shared and often culture specific . Values create needs that we want to fulfill.
POSITIONS
An opening demand that the negotiator believes will satisfy need.
Positions can be changed in skillful negotiations
NEEDS
Needs are specific in a negotiation , but are derived from the values we hold. They have to be dug out by skillful questioning and then a suitable need satisfiers can be used to move the negotiation forward .
If we are not clear about our needs we may bargain away some thing we value
NEED SATISFIERS
These bring focus to the negotiation and create a positive environment , which can then be used to change positions
NEED BLOCKERS
They are threatening and do not lead to collaborative negotiations
Tactics of Negotiation
ATTACK- creates negative energy EVADE- can be used meaningfully INFORM- clears the environment OPEN- helps in understanding needs UNITE- build rapport – Emphasize common
ground- reframe – propose solutions
PREPARATION- Information
Research both parties Analyze the basis of power for both Do SWOT for both Prepare questions in advance What is the BATNA of the opponent What is their awareness in regard to your
issues and needs Brutally admit to assumptions and biases
BATNA- Best Alternatives in a Negotiation Agreement
Ideal----------------------------------A
Intend---------------------------------B
Must avoid--------------------------- C
Negotiations Zone
PREPARATION- Concessions
Where can we be flexible? What concessions can we make? What can we give in order to what we want –
TRADE What value the concessions have to the other
party? What will you ask in return?
PREPARATION-Strategy
Keep it SIMPLE and FLEXIBLE Avoid confusing strategy ( means) with
objectives ( objectives) E.g. Take the train ( strategy ) to London
(objectives ). If you meet a “ gate “ adjourn or reconsider .
Understand the preferred styles of each other
DEFERENTIAL- Respect and Hierarchy
SUBSTANTIVE- Material issues
RELATIONAL- Trust and good faith
PROCEDURAL- Agenda and rules
Understand your personal style
IMAGINATIVE- creative , intuitive, integrative and inspiring
FACTUAL- clear, focused, informed , verify RELATIONAL- solve conflict,listen,
encourage, listen and maintain relations , constructive
ANALYTICAL- logical and process oriented EVALUATIVE- weigh , measure and moniter
PREPARATION- Tasks Leader- conducts the negotiation, gives information, expresses
opinions, makes proposals, trades concessions.
Summarizer- asks questions to test understanding, draws attention to , clarifies , summarizes to buy thinking time, confirms areas of disagreement and agreement . Does NOT give personal opinions, information's, and concessions,
Observer- watches, listens, records and tries to understand the motivation , concerns, priorities, & inhibitions,
STEP 2- ARGUE
It is an opportunity to – Exchange information Review issues Structure expectations Test assumptions Probe motives Explore opportunities Identify inhibitions, & chinks Influence, persuade & inform Review sanctions & concessions
STEP 4- Signal
Signals indicate change in stance They are verbal or non verbal When opponent moves from absolute to
qualified statements it is a signal Listen , reward, expand and confirm signal Signals indicate when to make a proposal
What are qualified statements
Can you explain the reasons? Suppose I agree to that what can you offer? Which aspects are you unhappy with? Why is it important?
STEP 5- PROPOSE- ENTRY OFFER
Open realistically- entry offer A realistic proposal is based on facts that
support the proposal Address the key issues & your intend list Matches the other parties BATNA
Making proposals
Propose – Explain – Summarize Invite response If you have to modify the proposal the
secondary proposal is tentative If there is a grievance suggest a solution
RECIEVING PROPOPSALS
Never interrupt Question – clarify – summarize Response could be No- this gives the other party the
initiative. If Yes- Are you missing an opportunity to add some
thing from your wish list? Instant counter proposal- leads to haggling and
arguments Adjourn- gives time to consult and think Detailed response – encourages repackaging, to
make the proposal more acceptable Considered counter proposal- best response TRY TO GIVE THEM WHAT THEY WANT ON YOUR
TERMS
More about proposals
If you are asked to concede something from your intend list then add something from your wish list
Remember the strengths of your proposal Proposal set the agenda A proposal beats arguments
STEP 6 - Package Packaging adjust the variable without increasing the offer in
order to make the proposal more acceptable If you have opened realistically then you may reach a deal
without making any adjustment or concessions. In order to do get more out of the other identify inhibitions and
interests and address the package to them. If you use a competitive stance likelihood of identifying needs
about inhibitions are low , so use a cooperative stance Proposals are solutions to needs Think creatively about all the variables or services while
packaging
Styles of Negotiations
Co operative Long term relationship Voluntary relationship Trust Private and informal Tolerance of others views Emotional detachment Skilled negotiations Win - win
Competitive on recurring transactions Mandatory relations hip Suspicion Public and formal Intolerance of others Emotional involvement Poor negotiators Win lose
Step 7- Bargain Bargain is any trading activity , You can bargain at any
stage of the negotiation:For informationFor concessionsFor signalsFor time’ for the deal
The fundamental rule in bargain is TRADE. You should always have an answer to the question “ What did you get in return?
Be prepared to concede in areas of lesser importance to gain in areas of greater importance
Put an unreasonable price to an unreasonable demand
Step 8- CLOSE Trial closure is useful device for drawing out issues.
Ask “ Are you saying if I agree to both of those items you will be satisfied?” - this insures if there are hidden issues they will emerge
What is the most important closing opportunity – a minor question that the other party asks about your proposal e.g. – “does that include delivery ?” or “ Would that be back dated?”
If both parties are happy
Closing concessions should be :Conditional ( on the deal)SpecificSmall
Don’t get greedy
Agree
Agree to what is agreed- any ambiguity gets cleared up easily
When to go for adjournment
When you feel you need to reconsider your objectives
New critical information emerges Your strategy is over taken Stuck in circular argument When you need time to repackage
How to make adjournments
Summarize the position the negotiation has reached
Withdraw to a private place and discuss with your team before breaking away
Agree on a new meeting date Give home work to the other party
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