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Cips Negotiation Challenge

Cips Negotiation Challenge. Round 1. Negotiation – A definition. A process through which parties move from their initially divergent positions to a point where agreement may be reached. HOUSE OF NEGOTIATION. P E R S U A S I O n. P R O C E S S. P E O P L E. P L O Y S.

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Cips Negotiation Challenge

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  1. Cips Negotiation Challenge Round 1

  2. Negotiation – A definition A process through which parties move from their initially divergent positions to a point where agreement may be reached

  3. HOUSE OF NEGOTIATION P E R S U A S I O n P R O C E S S P E O P L E P L O Y S

  4. The warm and tough approach Warm Warm and tough Assertion Value and respect Good communicator Easy Tough Cold

  5. 17th birthday – persuasion practice session • Both groups have 10 minutes to prepare for the negotiation. • Each group list all the variables you may need in order to persuade the other party to your way of thinking. Remember you can’t make the other party agree but you can persuade them.

  6. 17thbirthday – persuasion practice session • Team A = Parents • Team B = Teenagers approaching 17th birthday • Parents - You are looking forward to your son/daughters 17th birthday. You have already told them that you have bought them a series of driving lessons. You feel this is an extravagant present as most teenagers have to work and pay for their own lessons. • Teenagers - You are grateful for receiving driving lessons and appreciate how hard your parents work. However, ALL your friends get driving lessons plus a car for their 17th. You express how you feel and work to persuade your parents you should have a car too.

  7. Using Emotion • Be in control of your emotions – don’t let them control you! • Use from a sincerely held belief • Use early in the negotiation • Use to increase the “perceived value” of your bargaining • Use to counter logic

  8. Using logic • Don’t be too quick to ask “Why?” • Get your own logic in first • Keep to one powerful argument – don’t dilute • Be credible • If others can’t see it, change tack • Counter logic with emotion

  9. Using threat • Be slow to threaten • Threaten at the business, not the person • Use a discreet or veiled threat • Never make a threat you can’t ….. • Be credible • Add “if” to transfer threat to bargaining

  10. Using bargaining • Don’t expose your position early • Don’t put a marker down • Don’t seem too eager to move • Move, in small steps, • Get a return for any concession you make • Thank and bank

  11. Using compromise The behaviour of last resort • 50/50 is not the only compromise • Compromise favours the more extreme party • Let the other party suggest compromise… …..the one suggesting compromise probably accepts or moves towards the position of the other…..

  12. The negotiation cycle

  13. The negotiation cycle Flipchart interactive exercise

  14. Preparation and planning The objective here is…. To place you in the best possible position before the negotiation commences Preparation ………researching the issues Planning ….strategy, tactics, logistics

  15. Preparation and planningobjective setting We need to set clear targets for each variable • IDEALOur ideal settlement, we strive to achieve it – our AIM HIGH figure or STRETCH target! • REALISTICRealistically we feel that this is where we might finish up! • FALLBACKThe point beyond which it is not commercially viable to do business Plan to be flexible as objectives may need to be changed

  16. OpeningThe Vital First Impression • Timekeeping • Politeness • Physical appearance and dress • Personal hygiene • The hand shake • Eye contact • Smile • The opening words

  17. Testing • To test the validity of the assumptions we have made • To see where movement in the other party is likely to come from • To understand what is likely to be expected of us

  18. Testing – questioning techniques Types of question • Open • Closed • Probing • Multiple • Leading • Reflective • Hypothetical

  19. Moving To achieve the maximum movement from the other party and make minimum movement yourself, in relation to your targets

  20. Encouraging movement • Progressive and enthusiastic summary “So we’re agreed on the menus and the opening hours - we’re getting through it, let’s move on” • Thank and bank “Thank you. I appreciate it. Can we move on to…” “Thanks for that, I do appreciate the offer, it’s a good move, however could you look again at…”

  21. Concluding • To reach a workable agreement • To record what has been agreed • To agree the next steps • To condition for next time

  22. Review • comparison with ‘SMART’ targets • extent of plan achieved • what went well / what didn’t • what could I have done better • hard and soft successes • personal, team, organisation or industry patterns

  23. Learning review • Share two key learning points

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