INFLUENCE & NEGOTIATION STRATEGY PRESENTATION

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INFLUENCE & NEGOTIATION 2 Competencies to be successful…in “LIFE”

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This slide presentation was given by AH2 & Beyond Consulting and is for illustration purposes only to

show how AH2 & Beyond Consulting can help train your

sales organization the entire “Art Of Influence & Negotiation”

program curriculum

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Introduction

As a professional, your ability to influence and negotiate both corporately and externally is critical to your business success. This skill is natural to some and more difficult for others. But like many soft skills, influence and negotiation takes time to master and requires continuous learning, implementation, and refinement by anyone who has customers.

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The Roots Of Principled Negotiation

Principled Negotiation was developed by the Harvard Negotiation Project, a research project at Harvard University that works on negotiation problems and produces improved methods of negotiation and mediation. It is part of the Program on Negotiation at Harvard Law School, a consortium of scholars and projects from Harvard, MIT, Simons, and Tufts working to improve the theory and practice of conflict resolution. These practices have been used successfully at the highest levels of international diplomacy as well as in common business practice. Principled Negotiation was chosen for this training because it is particularly effective in business negotiations. The Principled Negotiation method is further explained in the book Getting to Yes, by Roger Fisher and William Ury,

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Presentation Objectives

• Distinguish Positional Bargaining from Principled Negotiation

• Apply Principled Negotiation techniques to ensure favorable negotiations

• Identify and overcome typical problem scenarios

• Create win/win outcomes and lasting relationships

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Influence & Negotiation Competencies Persuades others to pursue positive actions and structures win-win agreements to achieve mutually agreed upon goals, maximize business results, and maintain strong relationships

• Can utilize resources (internal and external) that result in gaining support and overcoming resistance in order to meet customer needs

• Maintains and enhances positive relationships throughout the course of negotiations

• Strives for balance between customers’ and personal goals • Maintains positive relationships at the conclusion of the

negotiations • Anticipates other’s needs and reactions and takes

appropriate steps to influence them • Demonstrates respect for all parties and negotiates

successfully, then follows through on all commitments • Leads the initiative to develop new resources that create

value in the negotiation process so that it’s a “win/win” outcome

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Positional Bargaining

The problem of reaching agreement is that many negotiations bargain over positions. Each side takes a position, argues for their position, and makes concessions to reach a compromise. This method is called positional bargaining, but does not tend to produce very good agreements. • Arguing about positions induces parties to lock themselves into positions that may

result into less than optimal agreements. • Arguing about positions can take longer than focusing on interests because both

parties may try to make several offers and counter-offers before they reach an agreement that satisfies their interests.

• Arguing about positions may hurt an ongoing relationship between parties. • Positional bargaining is even more difficult where there are more than two parties. Positional bargaining can be appropriate for short-term, one-time agreements. An example might be haggling over the price of a used table at a flea market. For longer-term relationships, positional bargaining can be destructive.

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Positional Bargaining: Types There are two types of positional bargaining: hard (“don’t give in”) and soft (“make concessions”).

Soft Approach Hard Approach • Participants are friends • Agreement is the goal • Easily makes concessions • Is soft of people and the problem • Easily trusts others • Changes positions easily • Makes offers • Discloses bottom line • Accepts one-sided loss • Searches for an acceptable answer • Insists on agreement • Avoids contests of will • Yields to pressure

• Participants are adversaries • Victory is the goal • Concessions are demanded as a condition of the

relationship • Negotiations are hard on the people and the problem • Creates distrust of others • Digs into your position • Makes threats • Demands one-sided gains as the price of agreement • Search for single answer: one you will accept • Insistent on your position • Becomes a contest of will • Pressure is applied

Outcome: You may make too many concessions

Outcome: You may damage the relationship

In long-term relationships, neither approach will allow you to reach an optimal agreement. Positional bargaining is short-sighted, inefficient, neglects parties’ interests, encourages stubbornness, and tends to harm the parties’ relationship.

Characteristics and Outcomes

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Principled Negotiation

Characteristics and Outcomes

Characteristics Outcomes • Participants are problem solvers • Goal is wise outcomes • Separates people from the problem • Is soft of people and hard on the problem • Proceeds independent of trust • Focuses on interests, not on positions • Explores interests • Invents options for mutual gain • Develops multiple options from which to choose and

decide on later • Emphasizes objective criteria over will • Yields to principle, not pressure

• Produces wise and efficient agreements • Satisfies the parties’ interests (win-win) • Are fair and lasting • Improves the parties’ relationship

In principled negotiation, participants negotiate on the merits of the problem. As you will see in the table below, principled negotiation places focus on the interests, needs and motivating factors of all parties to create a lasting win/win outcome. As such, it is a better approach than positional bargaining in most situations.

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4 Key Principles

1. Separate the people from the problem

2. Focus on interests, not positions

3. Invent options for mutual gain

4. Use objective criteria

Part of your challenge is to get your customer to move from positional bargaining to Principled Negotiation. You will be, in effect, “changing the game,” which requires specific understanding of four key principles of negotiation success.

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Separate The People From The Problem Separating the people from the problem means separating relationship issues (or “people problems”) from substantive issues, and dealing with them independently. People problems tend to involve three basic types of issues: Perception Perceptions are important because they define the problem and the solution. While there is an “objective reality,” that reality is often interpreted differently by different people in different situations. Emotion Strong emotions are both a cause of, and a result of, conflict. People in conflict may have a variety of strong and often negative emotions these emotions often mask the substantive issues in dispute. Communication Although people communicate all the time, many have difficulty communicating effectively during conflict. Negotiators may not be speaking to each other, but may simply be grandstanding for their respective constituencies. Parties may not be listening to each other, but may instead be planning their own responses. Even when both parties are speaking and listening to each other, misunderstandings may occur.

Generally, the best way to deal with people problems is to prevent them from arising. People problems are less likely to surface when the parties have a good relationship and think of each other as partners, rather than adversaries.

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7 Strategies For Treating Perception Problems

1. Try to see the situation from your customer's perspective. 2. Don't deduce your customer's intentions from your own fears. 3. Avoid blaming your customer for the problem. 4. Discuss each other's perceptions. 5. Seek opportunities to act inconsistently with your customer's

misperceptions. 6. Give your customer a stake in the outcome by making sure they

participate in the negotiation process. 7. Make your proposals consistent with the principles and self image of

your customer.

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6 Techniques For Managing Emotion

1. Recognize and understand your own emotions as well as your customer’s.

2. Determine the source of the feelings. 3. Talk about feelings--yours and your customer’s. 4. Acknowledge your customer’s feelings as legitimate. 5. Do not react emotionally to emotional outbursts. 6. Use symbolic gestures.

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4 Methods To Minimizing Communication Problems

1. Engage in active listening. The goal of active listening is to understand your customer as well as you understand yourself.

2. Speak directly to your customer.

This is not considered appropriate in some cultures, but when permitted, it helps to increase understanding.

3. Speak about yourself, not about your customer.

Describe your own feelings and perceptions, rather than focusing on your customer’s motives, misdeeds, or failing.

4. Speak for a purpose.

Too much communication can be counter-productive.

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Focus On Interests….NOT Positions

Negotiators often define what they want in all-or-nothing terms, take overly simple views of the problem, and seek solutions that meet their positions one hundred percent, without considering the views of the other side as important or legitimate. Arguing over positions can be very ineffective, and even destructive. Parties can get more and more entrenched in their positions, and positions will often move farther and farther apart, as disputants make ever-more extreme statements in an effort to counter their opponent’s position. Negotiating about interests means negotiating about things that people really want and need, not what they say that want or need. Often, these are not the same. If the parties work to clarify WHY they want or do not want something, however, it often turns out that the parties' interests are, at least in part, compatible. This makes negotiating a solution--or at least a partial solution--much easier. Your position is something you have decided upon.

Your interests are what caused you to decide.

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Teachable Moment…..

In U.S. conflict resolution training programs, a story is commonly told about two children fighting over an orange. Both children take the position that they need (and deserve) the whole orange. If the mother listens to the two children's positions, she will likely decide that one child deserves the orange more than the other--giving the whole orange to one--or she will cut the orange in half, giving each a part. But the story goes on to explain that one child actually wanted the orange to eat, while the other wanted the rind for a science project. Had the children explained their underlying reasons for wanting the orange--that is, had they explained their interests--a win-win solution could have been found that would have given both children everything they wanted.

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Invent Options For Mutual Gain

Inventing options for mutual gain means you should look for new solutions to the problem that will allow both sides to win, not just fight over the original positions which assume that for one side to win, the other side must lose. 4 Basic Steps for Inventing Options Step 1: State the problem Step 2: Analyze the problem Step 3: Consider general approaches Step 4: Consider specific actions Barriers • Parties may decide prematurely on an option and so fail to consider alternatives. • The parties may be intent on narrowing their options to find the single answer. • The parties may define the problem in win-lose terms, assuming that the only options are for one side

to win and the other to lose. • A party may decide that it is up to the other side to come up with a solution to the problem.

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Invent Options For Mutual Gain

Overcoming Barriers Separate the act of inventing options from the act of judging them. • Separate creative decision-making from the judgmental critical process of choosing the outcome. Broaden your options rather than look for a single answer. • Look for the strengths and weaknesses in particular strategies and examine problem from view of

different professionals and disciplines. Look for Mutual Gain • Try to find the shared interests and look for ways in which both parties can benefit.

Make Their Decision Easy • Try to make proposals that are appealing to your customer, and that the customer would find easy to agree

to. are easier to agree to when they seem legitimate, or when they are supported by precedent.

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Looking At “Objective Criteria”

Market value Professional standards

What a court would decide

Precedent Scientific judgment Moral standards

Efficiency Costs Equal treatment Tradition Reciprocity Etc.

Developing Objective Criteria: • Criteria need to be independent of the will of both parties. • Criteria need to be sensible and practical to the situation for which it is being applied. • You and your customer must feel that the criteria are treating them fairly and must agree on them. Using Objective Criteria: • Approach each issue as a shared search for objective criteria. Ask for the reasoning behind your

customer’s suggestions. Using your customer’s reasoning to support your own position can be a powerful way to negotiate.

• Keep an open mind. You and your customer must be reasonable and be willing to reconsider positions when there is reason to.

• Never give in to pressure. If your customer stubbornly refuses to be reasonable, shift the discussion from a search for substantive criteria to a search for procedural criteria.

When interests are directly opposed, use objective criteria to resolve differences. Decisions based on reasonable standards make it easier for the parties to agree and preserve their good

relationship.

Sample Criteria or “Fair Standards”

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What If They Are More Powerful?

Beware of the Bottom Line: Often negotiators establish a bottom line (or the worst acceptable outcome) in advance in an attempt to protect themselves or reject any proposal below that line. Because the bottom line is decided upon in advance, the figure may be arbitrary or unrealistic. Having already committed to a rigid bottom line also inhibits inventiveness in generating options. Know your “BATNA”: Instead of focusing on the bottom line, concentrate on knowing your Best Alternative to a Negotiated Agreement, or BATNA. In order to know whether or not to accept a proposed settlement obtained through negotiation, you must know whether or not you can get a better outcome in some other way. If the negotiated agreement is better than your "best alternative," you should take it. If it is not as good as your BATNA, you should either go back to the negotiating table to try again, or leave the table to pursue your other option(s).

Developing Your BATNA • Make a list of your options if you don’t reach an agreement. • Compare them realistically to the agreement you are negotiating. • Improve some of them and convert them into practical alternatives. • Tentatively select the one that seems the best. • Think about your customer’s BATNA.

The better your “BATNA”…the greater your power

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What If Your Customer Won’t Play?

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What If They Won’t Play?

Strategy 1: Continue to Use Principled Negotiation Try ignoring their position and concentrate on merits. This method can be contagious and they may let you change the game without realizing it. Strategy 2: Use “Negotiation Jujitsu” Turn their attacks against them to move them toward principled negotiation. Rather than responding to force, let it come to you and them work on the underlying interest that is creating the force. Attacks usually consist of three maneuvers: • Asserting their position forcefully • Attacking your ideas • Attacking you

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What If They Won’t Play?

Using “Negotiation Jujitsu” Asserting their position forcefully Don’t attack their position. Try to ask questions to better understand it. Their position must reflect a set of principles. If you probe to find out what their principles are, you can better understand how to reach agreement. Discuss what would happen if their ideas were adopted. Often people who want too much can appreciate the uncomfortable position their ideas will put everyone in. Attacking your ideas Don’t defend your ideas. Invite criticism and advice. Instead of asking people to accept or reject an idea, ask them what is wrong with it? Examine their negative judgments to understand their underlying interests. Ask them what they would do if they were in your position? Attacking you If personally attacked, resist the temptation to defend yourself or launch a counter-attack. Let them blow off steam, tell them you understand what they are saying, and then recast an attack on you as an attack on the problem. “We’re both here to resolve the issue, we both have the same concerns, what do you suggest we do?”

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What If They Won’t Play?

Using “Negotiation Jujitsu” • "Please correct me if I'm wrong”. • "We appreciate what you've done for us”. • "Our concern is fairness”. • "We'd like to settle this based on some objective standards - not on

who can do what to whom”. • "Trust is a separate issue" or "it's not a question of trust”. • "Could I ask a few questions to see if my facts are right”? • "What's the principle behind your action”? • "Let me see if I understand what you are saying”. • "Let me get back to you”. • "Let me show you where I'm having trouble following your reasoning”. • "One fair solution might be ..."

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What If They Use Dirty Tricks?

Sometimes parties will use unethical or unpleasant tricks in an attempt to gain an advantage in negotiations such as good guy/bad guy routines, uncomfortable seating, etc. The best way to respond to tricky tactics is to explicitly raise the issue in negotiations, and to engage in principled negotiation to establish procedural ground rules for the negotiation. Neutralizing Dirty Tricks • Recognize the tactic. • Raise the issue explicitly. • Question the tactic’s legitimacy and desirability. • Negotiate to change the procedure.

Negotiate the dirty tricks 1st!

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What If They Use Dirty Tricks?

Types of Dirty Tricks Deliberate Deception Parties may engage in deliberate deception about the facts, their authority, or their intentions. The best way to protect against being deceived is to seek verification of your customer’s claims. Psychological Warfare When the customer uses a stressful environment, you should identify the problematic element and suggest a more comfortable or fair change. Subtle personal attacks can be made less effective simply be recognizing them for what they are. Positional Pressure Positional pressure tactics attempt to structure negotiations so that only one side can make concessions. They may refuse to negotiate, hoping to use their entry into negotiations as a bargaining chip, or they may open with extreme demands. You should recognize this as a bargaining tactic, and look into their interests in refusing to negotiate.

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FREQUENTLY ASKED QUESTIONS 2 Competencies to be successful…in “LIFE”

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Does “Positional Bargaining” ever make sense? The short answer is yes, as long as one of several conditions applies: You don’t plan on having an ongoing relationship with the other side, you don’t want to spend the time arguing a point on its merits, and it can be a quick way to finalize a deal after you’ve used Principled Negotiation to identify each other’s interests, invented options for mutual gain and discussed relevant standards of fairness.

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What if the customer believes in a different standard of fairness?

Agreement on the “best” standard is not necessary. You and your customer may have two different standards in mind based on individual values, culture, experience, and perception. That’s why it is best to use a standard that comes outside of the negotiation. People can argue on why a car should cost more money or less money. They often use to a separate standard like Kelly’s Blue Book as a fair and impartial standard.

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Should I negotiate even with unscrupulous or unethical? When does it make sense not to

negotiate? However unsavory your customer, unless you have a better “BATNA”, the question you face is not whether to negotiate but how to negotiate. Negotiation does not mean giving in.

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How should I adjust my negotiating approach to account for differences of personality, gender

culture, and so on? Get in step with cultural differences, but avoid stereotyping. In developing a relationship, get to know the person. Things like pacing, level of formality, even physical proximity are concerns that you need to be aware of when negotiating.

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Concretely, how do I move from inventing options to making commitments?

Steps to moving toward concrete closure include: • Envision outcomes from the start. • Consider crafting a framework agreement. That way you can begin

committing what would look like an outline before narrowing down specifics.

• Move toward commitment gradually. • Be persistent in pursuing your interests, but not rigid in pursuing any

particular solution.

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Can the way I negotiate really make a difference if my customer is more powerful?

How do I enhance my negotiating power? How you prepare and how you negotiate can make an enormous difference whatever the situation. However, there are some things you can’t get. Even the most skilled negotiator can’t make a deal to buy the White House. You should not expect success in negotiation unless you are able to make your customer an offer that is more attractive than their “BATNA”. If you can’t, negotiation seems pointless. Concentrate instead on improving your “BATNA” and changing theirs.

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How do I try out these ideas without taking too much risk?

Perhaps you are worried that you will not be able to execute this approach well enough to make it work better than your current approach. The best advice is to start small. Practice with a simple negotiation where your “BATNA” is strong, where relevant favorable standards are available and where your customer is likely to be amenable. Prepare extensively and review your performance by keeping a diary so you can have a record of what you did well or what might need adjustment.

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Thank You!

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Checkout my presentation on “Global Sales & Marketing Excellence Plan-Example”! http://slidesha.re/1dBavAO You can also checkout my background/work by clicking on the following links: http://www.slideshare.net/aharrell2000 www.linkedin.com/pub/andre-d-harrell/5/13/382/ http://thesalesprofessionalnetwork.blogspot.com/ www.ah2andbeyond.com https://www.facebook.com/pages/Sales-Marketing-Management-Consulting/267898536570725

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Andre’ Harrell

AH2 & Beyond Consulting www.ah2andbeyond.com

267-221-8529