Negotiation Skills

Negotiation SkillsNegotiation SkillsByBy

Prahalad KarnamPrahalad Karnam

AgendaAgenda Defining NegotiationDefining Negotiation Substance vs RelationshipSubstance vs Relationship Case Study – Mind ReaderCase Study – Mind Reader Harvard Negotiation ModelHarvard Negotiation Model Case Study – Ed ExperiencedCase Study – Ed Experienced Closing NoteClosing Note

DefinitionDefinition In order to Negotiate effectively one must In order to Negotiate effectively one must

first be aware that they are negotiating.first be aware that they are negotiating. Negotiation is any circumstance in Negotiation is any circumstance in

which one party is trying to influence which one party is trying to influence another.another.

Persuade and InfluencePersuade and Influence Negotiations are based on – Who you are, Negotiations are based on – Who you are,

What you are, Where you come from, What you are, Where you come from, When you want it and How you want it?When you want it and How you want it?

Substance vs. RelationshipSubstance vs. RelationshipSubstance

Relationship{Feel and Desire to work with each

other}

{Price, Quantity, Date}

Case Study - Mind ReaderCase Study - Mind Reader Two teams - Thought click and Hands Two teams - Thought click and Hands

FreeFree Note down the GoalsNote down the Goals Note down the StrategiesNote down the Strategies

Now go make the most profits….Now go make the most profits….

Mind Reader – De-briefingMind Reader – De-briefing Double Loop Double Loop

LeaningLeaning Equity SeekingEquity Seeking – –

Both should have Both should have equal gains and equal gains and then collaborate.then collaborate.

Messenger ProblemMessenger Problem ––Messenger does Messenger does not have influence not have influence on the decision, on the decision, can be over ruled.can be over ruled.

Results

Action

Assumptions

Mind Reader – De-briefingMind Reader – De-briefing First stages of relationship have significant First stages of relationship have significant

lasting impressions…may take long time.lasting impressions…may take long time. Goal & Strategy & Actions should be Goal & Strategy & Actions should be

congruent.congruent. Assumptions drive behavior and Assumptions drive behavior and

Interpretation of resultsInterpretation of results Trust is a foundational element to propagate Trust is a foundational element to propagate

creativity and progress. (creativity and progress. (If trust is missing, If trust is missing, then what actions are taken to correct it?)then what actions are taken to correct it?)

How does it affect sending a 10/20/30 signal How does it affect sending a 10/20/30 signal in your line of work?in your line of work?

The Harvard Negotiation ModelThe Harvard Negotiation ModelCommunication

Relationship

Interests

Options

Standards

Alternatives Commitment

Enabling Elements

Circle of Value

Choice Points

The 7 Element Framework - The 7 Element Framework - CommunicationCommunication

The PROCESS we use to negotiate – The PROCESS we use to negotiate – Communication, Decision Makers, Time Communication, Decision Makers, Time period period

The HOW element – Mail, Phone, Face-to The HOW element – Mail, Phone, Face-to Face. Face.

Separate PROCESS from SUBSTANCESeparate PROCESS from SUBSTANCE Negotiate the PROCESS first and be Mindful Negotiate the PROCESS first and be Mindful

throughout the negotiations.throughout the negotiations. Test by ASKING QUESTIONSTest by ASKING QUESTIONS Balance TALKING and LISTENINGBalance TALKING and LISTENING

The 7 Element Framework - The 7 Element Framework - RelationshipRelationship

The parties ability to work together The parties ability to work together despite their DIFFERENCES.despite their DIFFERENCES.

Trust, Openness, Respect, FairnessTrust, Openness, Respect, Fairness Relationships are impacted by Relationships are impacted by

everything we do. – Behaviors exhibited, everything we do. – Behaviors exhibited, Messages sent…Messages sent…

Separate the PEOPLE from the PROBLEMSeparate the PEOPLE from the PROBLEM Negotiate Personal Issues.Negotiate Personal Issues.

The 7 Element Framework - The 7 Element Framework - InterestsInterests

The Factors that MOTIVATE us to ask for The Factors that MOTIVATE us to ask for particular things in a negotiation.particular things in a negotiation.

A POSITION is a demand that one makes, A POSITION is a demand that one makes, while the underlying motive is the while the underlying motive is the INTEREST E.g. Kids fighting over a fruit.INTEREST E.g. Kids fighting over a fruit.

Interests – Shared, Differing, OpposingInterests – Shared, Differing, Opposing Ask questions to discover other’s InterestsAsk questions to discover other’s Interests Share some interests and wait for the Share some interests and wait for the

other to reciprocate. Don’t divulge all!other to reciprocate. Don’t divulge all!

The 7 Element Framework - The 7 Element Framework - OptionsOptions

All of the possible terms or aspects of a All of the possible terms or aspects of a potential deal with the counterpart in potential deal with the counterpart in question – Grow the pie, Don’t Split it!question – Grow the pie, Don’t Split it!

Generate creative options based on Generate creative options based on interestsinterests

Solicit criticism of options to clarify Solicit criticism of options to clarify interests – It might divulge other interests – It might divulge other parties interest.parties interest.

The 7 Element Framework – The 7 Element Framework – Standards of LegitimacyStandards of Legitimacy

External Criteria against which we measure the External Criteria against which we measure the fairness of options. E.g. Blue Book – Carsfairness of options. E.g. Blue Book – Cars

Explicitly Share Standards Explicitly Share Standards Reciprocity as a test of fairness.Reciprocity as a test of fairness.

All too often we measure our success in a All too often we measure our success in a negotiation by how much we have made negotiation by how much we have made the other side move from their opening the other side move from their opening position.position.

The 7 Element Framework –The 7 Element Framework –Alternatives (BATNA)Alternatives (BATNA)

Things we can do without the other side.Things we can do without the other side. The WALK – AWAY Plans.The WALK – AWAY Plans. Best Alternative to Negotiated Best Alternative to Negotiated

Agreement (BATNA)Agreement (BATNA) Avoid BATNA BashingAvoid BATNA Bashing Acknowledge that they have a BATNA…Acknowledge that they have a BATNA…

but reality test it.but reality test it. Don’t be afraid of your BATNA – Explore Don’t be afraid of your BATNA – Explore

it and Improve it.it and Improve it.

When to POP the BATNA?When to POP the BATNA? In a smooth discussion, never pop the In a smooth discussion, never pop the

BATNA.BATNA. Pop it only when the BATNA is real and Pop it only when the BATNA is real and

the other party knows it.the other party knows it. It helps when Supply >> DemandIt helps when Supply >> Demand Positively – It’s the last nail in the coffinPositively – It’s the last nail in the coffin Negatively – Subtly mention it. Negatively – Subtly mention it.

Mentioning it at the end does not help.Mentioning it at the end does not help.

The 7 Element Framework –The 7 Element Framework –CommitmentCommitment

What the parties promise to do (or not to What the parties promise to do (or not to do) as a result of the negotiation.do) as a result of the negotiation.

The “Best” option selected by the partiesThe “Best” option selected by the parties The thing chosen instead of one’s BATNAThe thing chosen instead of one’s BATNA Don’t commit prematurelyDon’t commit prematurely Ensure that all parties have a shared Ensure that all parties have a shared

understanding that is REALISTIC.understanding that is REALISTIC.

Case Study – Ed ExperiencedCase Study – Ed Experienced Two Individuals – One Ed’s Placement Two Individuals – One Ed’s Placement

Officer and the other HR Director.Officer and the other HR Director. Understand the Case Study and Understand the Case Study and

evaluate it from the 7 point framework evaluate it from the 7 point framework using the template provided.using the template provided.

Now go NEGOTIATE….Now go NEGOTIATE….

Negotiation Learning CycleNegotiation Learning Cycle Negotiation is different from Argument. Negotiation is different from Argument.

The former has a goal of Win/Win.The former has a goal of Win/Win. Positions in a negotiation have a hint of Positions in a negotiation have a hint of

emotions like fear or greed etc.emotions like fear or greed etc. Vital question is “Transparency” between Vital question is “Transparency” between

the two parties.the two parties. There is no Alternative to “Preparation”There is no Alternative to “Preparation” Negotiation starts from oneself firstNegotiation starts from oneself first Every Interest has a price so decipher Every Interest has a price so decipher

the price to know the interest.the price to know the interest.

Dealing with Difficult NegotiationsDealing with Difficult Negotiations

Don’t REACT – Do RESPONDDon’t REACT – Do RESPOND DIAGNOZE for Negotiation ElementsDIAGNOZE for Negotiation Elements Summarize and AcknowledgeSummarize and Acknowledge REFRAME – Interests, Options, StandardsREFRAME – Interests, Options, Standards Name the Game – DISCUSS IT.Name the Game – DISCUSS IT. Change the PLAYERSChange the PLAYERS Leave the game – PROTECT your Leave the game – PROTECT your

interests and invest in future interests and invest in future negotiations.negotiations.

Crisis NegotiationCrisis Negotiation First do RISK ANALYSISFirst do RISK ANALYSIS Estimate the TIME TAKEN for negotiationsEstimate the TIME TAKEN for negotiations Communicate thru accepted mediumsCommunicate thru accepted mediums Leverage the situation – Get known or Leverage the situation – Get known or

influential peopleinfluential people Effective Cost and Control – Getting the Effective Cost and Control – Getting the

Middleman in?Middleman in? Price vs. Demand.Price vs. Demand. Always think of the “Always think of the “DAY AFTERDAY AFTER”.”.

Negotiations across culturesNegotiations across cultures Get info from in-country colleaguesGet info from in-country colleagues Could Hire interpretersCould Hire interpreters InternetInternet Empathizing and Showing AwarenessEmpathizing and Showing Awareness Pre-Informal-Meetings.Pre-Informal-Meetings. AKA – Awareness, Knowledge and Ability AKA – Awareness, Knowledge and Ability

(Get the right person to conduct)(Get the right person to conduct) Culture is that of a person, society, Culture is that of a person, society,

organization, region and country. organization, region and country. Always keep their and your VALUE in Always keep their and your VALUE in

MIND. NEVER COMPROMISE on VALUE.MIND. NEVER COMPROMISE on VALUE.