Negotiation_Innovation_Dublin_2012

Where are these places in Dublin?

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Let me introduce myself

© Robert Farrell

ROBERT FARRELL

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Learning Outcomes

• Have a good grounding in negotiation.

• Be aware of the negotiation process.

• Be able to use basic frameworks for planning & evaluating deals.

• Be aware of tactics & defenses used.

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ContentsINTRODUCTION

STEPS

PREPARATION

BARGAINING

INTEGRATIVE NEGOTIATION

TACTICS & DEFENCES

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Negotiation

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Introduction“Negotiation is an interpersonal

decision-making process.”(Leigh Thompson, 2009)

“No problem is so intractable that it cannot be resolved through talk & negotiation rather than force & violence”

(Nelson Mandela)© Robert Farrell

“Negotiation is your key communication and influence tool, in and outside the company”(Leigh Thompson, 2009)

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Negotiation Steps

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1. Preparation

2. Negotiation Dance

3. Signal cooperation

9. Implement or Maintain

4. Propose Solutions

5. Package Deals

6. Bargain Items

7. Close

8. Agree

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Preparation

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Failing to plan is planning to fail

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“Trades would not take place unless it were advantageous to the parties concerned”

Benjamin Franklin

Sellers Reservation Point

Buyers Reservation Point

Sellers Target Price

Buyers Target

€230k €240k

Seller’s Bargaining range

Buyer’s Bargaining range

€225k €235k€220k€215k €245k

Bargaining Zone

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General Negotiation Tips

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Basic Bargaining

“Distributive Negotiation”

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Basic BargainingTips

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?What do you look

for when:

Buying a Car

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Buying a Car

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1 2 3 Decending 1, 2, 3

Description Worst Medium Best Priority Rank ScorePrice 20K 18K 15K 9 2 18Model 8Year 7Miles 6Defects 5Warranty 4Trade-In 3Owners 2Seller Type 1

Total

Grade each carYour requirements

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Integrative Negotiation (Win-Win):

Creating value:

“Expanding the pie”.

Claiming value:

“Slicing the pie”

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Integrative Negotiation Tips

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Relationship Building - Hidden Dangers

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Tip forSuppliers

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What do you look for when:

Meeting Suppliers

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?

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Meeting Suppliers

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1 2 3 Decending 1, 2, 3

Supplier Poor Average Great Priority Rank ScorePrice 2 9 2 18Range 3 8 3 24Strategic fit 1 7 1 7Service level 6Stability 5Admin support 4Problem occurance 3Market knowledge 2Merchandising 1

Total

Grade each suplierTheir Performance

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Tactics

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Tactics

Playing Hardball

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Tough guy approach

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Tactics Threats

Handle with care

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Tactics

Nibbling

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The Piranha Approach

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Tactics

Commoditisation

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Its all about price

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Tactics

The Glassroom

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Battle Royale

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Tactics

General Defences

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Key Messages

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Thank you for attending

www.TheSmallBusinessGuides.com/Negotiations.html

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Questions

• Should you reveal you reservation point.• Should an upcoming potential deal be my

BATNA.• Should I make the first offer.• Should I give concessions without taking

anything back.• How do you respond to unreasonable

demands.

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Terminology

Reservation Point

Must have

BATNA

Concession

Position

Bargaining Zone

PieNice to have

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