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CLP Negotiation Skills

CLP Negotiation Skills. Getting what you want without losing the relationship. Objectives. Understand the key techniques for formulation of strong business relationships Prepare and plan negotiations in a structured and professional manner

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CLP Negotiation Skills

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  1. CLP Negotiation Skills Getting what you want without losing the relationship

  2. Objectives • Understand the key techniques for formulation of strong business relationships • Prepare and plan negotiations in a structured and professional manner • Understand how to structure a negotiation and maintain control of the phases and the agenda • Have the confidence to obtain the best agreement for the business • Use a range of tools for influence • Professionally handle tough negotiation tactics which are used against us • Deal with changing scenarios that require adept, sensitive and firm negotiation.

  3. Topics • Managing Relationships • Initial Negotiations • Negotiating When Change Occurs

  4. Who are you? What are our objectives? What is important to them and us? What will success do for us? What is this negotiation about? What do we both have in common? What do we both want? Let’s do it! How can we work together on this? What would be the best way to resolve this? Data Process Relationship

  5. How people make decisions logic emotion justify decide

  6. Building a Relationship • RELATIONSHIP means TRUST • TRUST means INFORMATION TRUST = competence + like

  7. Logic 10 Driver Analytical Extrovert Introvert Amiable Expressive 0 10 10 10 Emotion

  8. characteristics • Bold • Assertive • Affirmative • Determined • Clear • Objective • Detached • Showing no bias • Cheerful • Spirited • Buoyant • Uplifting • Still • Tranquil • Calming • Soothing

  9. we can be seen as • Aggressive • Controlling • Driving • Overbearing • Intolerant • Stuffy • Indecisive • Suspicious • Cold • Reserved • Excitable • Frantic • Indiscreet • Hasty • Flamboyant • Docile • Bland • Plodding • Reliant • Stubborn

  10. personality dress code • Power dressing • Suits • Well pressed • To impress • Designer • Conservative • Dark suits • 3 piece • Traditional • Relaxed • Jumpers • Tweed • Casual • Earth colours • Statement • Trendy • Louder • Brighter colours • Different

  11. the environment we create • Look tidy • Impressions • Power desk • Certificates • Equipment • Famous photos • Very tidy • Spreadsheets • Gant Charts • Technical photos • No clutter • Disorganised • Art • Gizmos • Friends / family • Inspiring quotes • Plants • Sofas • Charity info • Coffee machine • Organised chaos

  12. dealing with Blues-Analytical • Be punctual • Plenty of facts and figures • Lots of data and research • Product information • Statistics • Leave information with them • Confirm bookings in writing • Know your competition • No social chit chat • Good customer care • Find out about their business • No gimmicks

  13. dealing with Reds-Driver • Prepare well • Direct questions • Be punctual • Plenty of product knowledge • Examples • Be professional • No social chit chat • Not too many facts and figures • May it easy for them by offering service • Give “whats in it for them”

  14. dealing with Greens-Amiable • No jargon • No pressure, empathise • Be on time • No direct questions • More casual approach • Testimonials • Not too much data • Seek out opinions • Be friendly and sincere • Listen • Give them time

  15. dealing with Yellows-Expressive • Enthusiasm • Visuals • Be creative • Seek out their opinions • Give them more than one option • Friendly • Plenty of social chit chat • Let them talk • Use humour • Not too many facts and figures

  16. Get them to talk • “What is your view of the situation?” • “What are the most important points for you?” • “What is your ideal solution?” • “Why is that important for you?” • “How can I help in the short, medium and long terms?” • “Can you prioritise?”

  17. Managing First Impressions • Initial thoughts • 30 seconds? • 2 Minutes? • 20 Minutes? • Timing – pausing / filling gaps / rhythm • Avoid vacuity – go beyond small talk • Get them to talk…they’ll like you more Tone / Visual / Words 59% 38% 7%

  18. Preparing our approach

  19. Prepare your case • Facts & examples • What are their main worries? • Options • Preventative actions to stop it going wrong • Something for them

  20. Negotiating

  21. Preparation Objectives Context Power Arguments Method

  22. What is the past? What is the future? Who are the key players? What else are they negotiating? What is my carrot? What is my stick? What is my banana? Context Power Arguments • What are the main benefits I am offering? • What are the unexpected extras I am offering? • How am I reducing the risk to enable an easy decision?

  23. Method Don’t jump in feet first Hold back from saying what you really want to say… your objective early on is to get permission to say what you really want emotion logic Target the other side’s underlying interests

  24. Preparing for Negotiation DEFINE OUTCOME What will success do for us? 1. BACKGROUND History, personalities, relevant info. 2. SPECIFY OBJECTIVES Ideal, Realistic, Fallback BANANA 3. ASSESS THE POWER What is important to them? What is important to us? 4. DECIDE STRATEGY How to build relationship?  Tactics  Agenda 5. PLAN ARGUMENTS What are your strengths and weaknesses? 6.

  25. IDEAL IDEAL REALISTIC REALISTIC FALLBACK FALLBACK ! = = Planning • REMEMBER! • Keep the gaps between your positions fairly equal. • Be prepared to justify all three positions. • Don’t be surprised at the gap between their opening position and yours.

  26. When to Walk Away • Typical BANANAS: • Someone else you can do a deal with • Option to do without the item being negotiated • Ability to defer the deal to a later date • Alternative solution The Best AlterNative to ANegotiated Agreement ALWAYS KEEP A BANANA IN YOUR POCKET!

  27. Phases in Negotiations Opening Signals Package Bargain Agree

  28. Creating Movement Signals Amended Proposals Packaging Bargaining Closing Contracting

  29. Positions Interests Shared Interests Needs Shared Needs The P-I-N Triangle Creating Movement

  30. Working Towards Agreement • Start with the Lubricators • Deal with the Difficult Issues • Don’t sign off the Lubricators until you have dealt with the Difficult Issues THEIR LEVERS DIFFICULT ISSUES LUBRICATORS OUR LEVERS

  31. Building Rapport • You want this person on your side of the bridge. • Do you: • Throw a lasso over and pull them • Call them over to your side • Meet them halfway across • OR WHAT? • Draw yourself standing where you feel you should.

  32. Rapport Breakers • Talking more than listening • Formal-speak • Parental language • Using “irritators” • Doing their thinking for them • Arguing • Being dogmatic

  33. The Hidden Language of Signals

  34. Signals • Listen out for underlying interests that you can use later as leverage • Never accept a refusal or blockage, test it as a signal • Listen for easy quick hit successes, longer haul topics and no-gos

  35. Sample Signals • “We never admit liability” • “We could not produce that quantity in that time” • “It is not our policy to discuss discounts, and even if we did they certainly would not be 10%” • “Our price for that quantity is £x” • We are not prepared to discuss that at this stage” • “These are our standard terms and conditions” • “We would find it extremely difficult to meet that deadline” • “Our production line is not set up to meet with that requirement” • “I am not empowered to negotiate this price”

  36. Package • link • apparent concessions • Underlying Interest • Low Risk decisions

  37. Bargain • only Bargain near the end • show a willingness to move • “If ..”

  38. Push or pull?

  39. Awkward People

  40. Tips for Breaking Deadlock • don’t argue or defend • probe on the underlying issues • keep stating that you are willing to work out an agreement • change location, people, subject • try incentives • know your walk away point and call the bluff • backtrack and review • push for what you can agree on

  41. Handling Objections • empathy • (rephrase) • decide when • general now, detail later • back to agenda • specifically you seem • worried about... • if I.... could you.... ? • underlying concern • agree • recommendation • next steps • generalised statement • options • recommendation • next steps

  42. How to say NO • I understand (pause, not BUT) • currently (state facts) • therefore (difficult / impossible) • I suggest (give 2/3 options) • your choice?

  43. Being Tough, Nicely

  44. Some golden rules • Uncover real reasons underneath (why why) • Ask for things you know they will refuse then ask for something you really want • Smile even when you say no • Get agreement in principle • Listen for BASIS of argument and use it back Collect all requirements before arguing or replying Ask for something more than once Disclose more information to get the moral high ground Be happy with compromise, let them feel they have made you move Trade offs (if I ... will you ...)

  45. Negotiating Bad News current situation facts, numbers downside impact on them remedy simple benefits to them next steps immediate

  46. Handling Pressure • stay with logic • go back to agenda • identify what can agree on • suggest steps for resolving disagreements • seek agreements in principle • if attacked personally then address their criticism as another issue for discussion

  47. Handling Pressure don’t argue, ask a question !!

  48. CLP Negotiation Skills Thank You

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