The Art of Negotiation Workshop

1. The Art of Negotiation Workshop

2. Online Course By show of hands, who has completed the online Art of Negotiation course?

3. Online Course Think back to what Wendy, Larry and Mr. Song went through in their negotiations. Today it’s your turn to practice your negotiating skills.

4. The Art of Negotiation Course and Workshop • The content for the Art of Negotiation came from: • Strong negotiators in our company including RVPs, Managers and Sales Associates • The book, “Getting to Yes: Negotiating Agreement Without Giving In” by Roger Fisher and William Ury

5. First let’s review the negotiating stages and principles you learned in the online course. Break into groups of 3-4 and choose a group leader Here’s a Negotiating Quick Reference Card for each of you In a moment I’ll give you a handout with instructions for your group activity You’ll have 5 minutes to read the instructions and prepare then 3 minutes to present Write your ideas on the flipchart paper on the wall Review of Online Course Continued on next slide

6. I’m assigning each group 1-2 negotiating stages and principles from the list below Here’s your handout with instructions; take 5 minutes to read it and work on your assignment Review of Online Course • Stages: • Prepare • Open • Negotiate • Close • Principles: • Focus on interests, not positions • Use objective criteria for establishing an agreement • Be soft on the people, hard on the problem Assign all stages and principles; move to next slide after 5 minutes

7. Let’s start with the group that had the first stage in negotiating, Preparing. Group leader…You were assigned 2 steps in Preparing. Tell us what you’d do for each of those steps to prepare. Review of Online Course Move to next slide when group presents

8. Tell us what you would do for these 2 steps: Gather information about: external factors party you represent other party Determine the outcomes you want to achieve Determine a walk-away alternative Consider the interests and needs of the other party Look for ways to improve your leverage Plan your approach Review of Online Course Group has 3 minutes to present

9. Let’s go to the group that had the second stage, Opening. Group leader…You were assigned 2 steps in Opening. Tell us what you’d do in each step to open the discussion. Review of Online Course Move to next slide when group presents

10. Opening: Establish rapport Share your agenda Create an emotional connection between the two parties Review of Online Course Group has 3 minutes to present

11. Let’s go to the group that had the third stage, Negotiating. Group leader…You were asked to create 3 probing questions for Negotiating. Tell us your questions. Review of Online Course Move to next slide when group presents

12. Negotiating: Present your proposal Listen to understand Listen Reflect Probe Acknowledge and address objections Review of Online Course Group has 3 minutes to present

13. Listen Restate as a question Cushion, relate and empathize Probe and isolate the objection Present a solution Close, ask for agreement Objection Handling Review

14. MODEL AND FOLLOW THE STEPS Listen Restate as a question Cushion, relate and empathize Probe and isolate the objection Present a solution Close, ask for agreement Objection Resolving Exercise I love the house but want to wait and see if the price drops I don’t want to hold Open Houses I am in insulted by that offer Your fee is what? What are some other common objections your are challenged with in today’s market?

15. Without looking at the Quick Reference Cards, who can explain what each of the following terms mean? Reflect Stating your brief understanding of the other person’s feelings or thoughts Probe Asking questions to ensure there are no further underlying concerns or needs Review of Online Course

16. Who can explain what each of the following terms mean? Acknowledge Let the other party know you understand their concern by acknowledging it. Use phrases like, “I understand that you’re concerned about that – I’d feel the same way.” Address Show objective data to address their objection Review of Online Course

17. Let’s go to the group that had the last stage, Closing. Group leader…You were told that the negotiation was not successful and you couldn’t come to agreement. How would you reinforce the value of the relationship with Mr. Jones and with Sam? Review of Online Course Move to next slide when group presents

18. Closing: Structure the agreement Wrap up the discussion Reinforce the value of the relationship Review of Online Course Group has 3 minutes to present

19. Let’s go to the group that had the first negotiating principle, focus on interests, not positions. Group leader…You were told that Mr. Jones was extremely offended by the low offer. Tell us what you would do to apply this principle. Review of Online Course Move to next slide when group presents

20. Focus in interests, not positions: Focus on why someone wants something, not what they want Appeal to their underlying needs and desires, not to a position that may not have justification Review of Online Course Group has 3 minutes to present

21. Let’s go to the group that had the second negotiating principle, use objective criteria for establishing an agreement. Group leader…You were told that Mr. Jones was extremely offended by the low offer. Tell us what you would do to apply this principle. Review of Online Course Move to next slide when group presents

22. Using objective criteria for establishing an agreement: Use hard facts to create an agreement that appeals to the other party’s interests Discuss objective standards for settling a problem rather than forcing each other to back down Review of Online Course Group has 3 minutes to present

23. Let’s go to the group that had the last negotiating principle, be soft on the people and hard on the problem. Group leader…You were told that Mr. Jones was extremely offended by the low offer. Tell us what you would do to apply this principle. Review of Online Course Move to next slide when group presents

24. Be soft on the people and hard on the problem: Maintain, or even improve, relationships Focus on the issue, not on the emotion Review of Online Course Group has 3 minutes to present

25. Now it’s time to try negotiating. Let’s start with a non-real estate negotiation, called the Ugli Orange Role Play. For this practice, we’re only going to focus on how well you can apply the three principles: Focus on interests (why), not positions (what) Use objective criteria for establishing an agreement Be soft on the people and hard on the problem It’s Time to Practice: Round 1 Continued on next slide

26. Break into groups of 3 Decide who will play each role: Dr. Roland, Dr. Jones, and Observer It’s Time to Practice: Round 1 Continued on next slide

27. In groups of three, Dr. Roland and Dr. Jones will be negotiating while the Observer listens in. Each negotiator will read their role and use the Strategy Planner to plan for the negotiation. The Observer will read both negotiators’ roles and review questions they’ll answer to record how well the negotiators applied the three principles. It’s Time to Practice: Round 1 Continued on next slide

28. Observer’s Role • Read both roles carefully – don’t reveal what you’ve read • Review the questions you’ll be answering • Observe Dr. Roland and Dr. Jones as they negotiate • Listen to how well they apply the negotiating principles • Take thoughtful notes as you answer each question Move to the next slide

29. It’s Time To Practice: Round 1 I’ll hand out your roles in a moment. You’ll have 10 minutes to read through your role and prepare for the negotiation. When I call “time,” you’ll have 10 minutes to negotiate. I’ll put the negotiating principles you should follow on the screen. I’ll let you know when 10 minutes are up. Continued on next slide

30. By show of hands, who will play Dr. Roland? Here’s your packet - don’t share it By show of hands, who will play Dr. Jones? Here’s your packet - don’t share it By show of hands, who will play the Observer? Here’s your packet – don’t share it It’s Time to Practice: Round 1 Move to next slide after 10 minutes and tell groups to start the negotiation

31. Guiding Principles: Focus on interests (why), not positions (what) Use objective criteria for establishing an agreement Be soft on the people and hard on the problem Conducting The Negotiation After 10 minutes stop the negotiation and move to the next slide

32. As a large group: Who had a successful negotiation? Remember, a successful negotiation is one where there is a mutually satisfactory solution, where both parties are happy. Did each party uncover the other’s underlying need? Did the parties trust each other? Which principle was critical to the success of the negotiation? Large Group Review Stop after 3 minutes

33. Dr. Roland and Dr. Jones did have the ability to reach a mutually satisfactory solution - each needed different parts of the oranges (rind vs. juice) to be able to have their needs met. Had they focused on each others’ needs rather than on each others’ positions, both could have gotten everything they needed. Those negotiators who did not reveal their needs probably did not find the optimal solution. Wrapping Up Round #1

34. Now it’s time to try a real estate negotiation. This time, we’re going focus on how well you can follow the Opening, Negotiating, Closing stages and apply the principles. It’s Time to Practice: Round 2 Continued on next slide

35. Break into the same groups of 3 Decide who will play each role: Weichert Associate, Other Party and Observer Observer from last round should be Weichert Associate or Other Party this time It’s Time to Practice: Round 2 Continued on next slide

36. The Weichert Associate will read his/her role and use the Strategy Planner to plan for the negotiation. Note your goal and the tip at the bottom of the page. The Other Party will read his/her role and prepare to give the Weichert Associate a realistic negotiation practice. The Observer will read both negotiators’ roles and review a checklist they’ll use to record how well the Weichert Associate did. Once the negotiation is over, Observers will give the Weichert Associates feedback on how they did. It’s Time to Practice: Round 2 Continued on next slide

37. Observer’s Role • Your role is to observe and listen as the Weichert Associate negotiates – you’re the coach • Use the checklist • Take thoughtful notes • Give the Weichert Associate their completed checklist after you conduct the feedback session Move to the next slide

38. It’s Time to Practice: Round 2 I’ll hand out your roles in a moment. You’ll have 10 minutes to read through your role and prepare. When I call “time,” you’ll have 10 minutes to negotiate. I’ll put the steps you should follow on the screen. I’ll let you know when 10 minutes are up. Continued on next slide

39. By show of hands, who will play the Weichert Associate? Here’s your packet – don’t share it By show of hands, who will play the Other Party? Here’s your packet – don’t share it By show of hands, who will play the Observer? Here’s your packet – don’t share it It’s Time to Practice: Round 2 Move to next slide after 10 minutes and tell groups to start the negotiation

40. Conducting the Negotiation • Opening • Establish rapport • Share your agenda • Create emotional connection between the two parties • Negotiating • Present your proposal • Listen to understand – listen, reflect and probe • Acknowledge and address concerns • Closing • Structure an agreement • Wrap up the discussion • Reinforce the value of the relationship After 10 minutes stop the negotiation and move to the next slide

41. Start with the Weichert Associate: What do you think you did well? What would you consider for next time? Then ask the Other Party: What worked well for you? What would you suggest for next time? Observer: Review the checklist with the Weichert Associate. What did the s/he do well? What should s/he consider for next time? How well did s/he follow the Open/Negotiate/Close flow and apply the principles? Small Group Feedback Discussion Stop after 3 minutes

42. As a large group: Which principle was critical to the success of the negotiation? What did the Weichert Associates do to apply that principle? Was the Weichert Associate successful? Remember, success is achieving a mutually satisfactory solution. Weichert Associates: What was challenging? Large Group Review Stop after 3 minutes

43. What does this exercise teach us about effective negotiations? You need to collaborate You need to ask questions and listen to find areas of mutual interest While it’s important to know your own needs, it’s almost more important to the success of the negotiation to focus on the needs of the other party Let’s Review

44. Want to hone your skills further? To brush up on your skills, take the online Art of Negotiation course again. It’s even better the second time around! Want even more practice? Come to our next Art of Negotiation Workshop.

45. Thank you for your active participation today. Remember…practice makes perfect. Good luck!