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NEGOTIATION TECHNIQUES

NEGOTIATION TECHNIQUES. THE ART TO MAKE PEOPLE GIVE YOU WHAT YOU WANT. NEGOTIATION DEFINED.

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NEGOTIATION TECHNIQUES

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  1. NEGOTIATION TECHNIQUES THE ART TO MAKE PEOPLE GIVE YOU WHAT YOU WANT

  2. NEGOTIATION DEFINED • NEGOTIATION IS THE PROCESS WHEREBY INTERESTED PARTIES RESOLVE DISPUTES, AGREE UPON COURSES OF ACTION, BARGAIN FOR INDIVIDUAL OR COLLECTIVE ADVANTAGE, AND/OR ATTEMPT TO CRAFT OUTCOMES WHICH SERVE THEIR MUTUAL INTERESTS.

  3. ESSENTIAL ELEMENTS OF NEGOTIATION • THE EXISTENCE OF TWO OR MORE PARTIES • THEY SHARE AN IMPORTANT OBJECTIVE BUT HAVE SOME SIGNIFICANT DIFFERENCE(S). • THE PURPOSE OF THE NEGOTIATING MEETING IS TO SEEK TO COMPROMISE THE DIFFERENCE(S).

  4. CHARACTERS OF NEGOTIATION • A SPECIFIC KIND OF COMMUNICATION • AN INTERPERSONAL SKILL • PARTIES HAVE SHARED & OPPOSED INTERESTS • RESULT IN WIN-WIN AGREEMENT THAT IS IN THE BEST INTEREST OF BOTH PARTIES

  5. CHARACTERS OF NEGOTIATORS • CREATIVE • EMPATHIC • BUILDERS OF RELATIONSHIP • EFFECTIVE NEGOTIATORS ARE USUALLY MADE NOT BORN

  6. KEY POINTS TO REMEMBER BEFORE NEGOTIATION • 1.THERE ARE NO RULES. • 2. EVERYTHING IS NEGOTIABLE. • 3. ASK FOR A BETTER DEAL. • 4. LEARN TO SAY “NO”.

  7. PRINCIPLED NEGOTIATION(Interest-based approach to negotiation) • THIS APPROACH ADVOCATES FOUR FUNDAMENTAL PRINCIPLES OF NEGOTIATION: • SEPARATE THE PEOPLE FROM THE PROBLEM; • FOCUS ON INTERESTS, NOT POSITIONS; • INVENT OPTIONS FOR MUTUAL GAIN; AND • INSIST ON OBJECTIVE CRITERIA.

  8. EXAMPLE OF PRINCIPLED NEGOTIATIONTHE 1978 CAMP DAVID NEGOTIATIONS • ISRAEL’S INTEREST LAY IN SECURITY; THEY DID NOT WANT EGYPTIAN TANKS POISED ON THEIR BORDER; • EGYPT’S INTEREST LAY IN SOVEREIGNTY; • SOLUTION: • EGYPT GIVEN FULL SOVEREIGNTY OVER THE SINAI, BUT • LARGE PORTIONS OF THE AREA DEMILITARIZED, ASSURING ISRAEL’S SECURITY.

  9. BILATERAL AND MULTILATERAL DIPLOMACY/ NEGOTIATION • Participant • Bilateral: two. • Multilateral: More than two. • Form. • Bilateral: may be relatively informal. • Multilateral: is always conducted in the form of international conferences.

  10. BILATERAL AND MULTILATERAL DIPLOMACY/ NEGOTIATION (CONT.) • DURATION. • BILATERAL: RELATIVELY SHORTER. • MULTILATERAL: LONGER • RESULT. • BILATERAL: RELATIVELY MORE IMMEDIATE AND MORE CONCRETE. • MULTILATERAL: AGREEMENTS ON GENERAL PRINCIPLES.

  11. EMOTIONS IN NEGOTIATION DISENTANGLE AND DEFUSE EMOTIONAL PROBLEMS: • POSITIVE EMOTIONS INCREASE LIKELIHOOD FOR PARTIES TO REACH INSTRUMENTAL GOALS. • FEELINGS OF EMPATHY IMPROVE UNDERSTANDING, FACILITATE COMMUNICATION. • NEGATIVE FEELINGS IMPACT DETRIMENTALLY ON NEGOTIATION PROCESSES

  12. DIFFICULT FEELINGS/EMOTIONS • DISTRUST • ANGER • FEAR • CONTEMPT • EMBARRASSMENT • SHAME • PRIDE • DISAPPOINTMENT

  13. NEGOTIATION WITH YOURSELF. • WE NEGOTIATE WITH OURSELVES ALL THE TIME; BETWEEN OUR CONSCIOUS (RATIONAL) AND OUR SUBCONSCIOUS (INTUITIVE) SELVES. • LISTENING TO OUR INNER VOICE MAY BE THE BEST THING WE CAN DO TO AVOID A NEGOTIATION DISASTER.

  14. NEGOTIATING THROUGH AGENTS. AGENTS/REPRESENTATIVES ARE USED IN CERTAIN NEGOTIATIONS. IF YOU REALLY NEED TO NEGOTIATE THROUGH AN AGENT: • MAKE SURE THE AGENT KNOWS YOUR OBJECTIVES AND INTERESTS. • DISCUSS WHETHER YOU WISH TO BE PRESENT FOR SOME OR ALL OF NEGOTIATIONS.

  15. BE VERY CLEAR ABOUT HOW MUCH AUTHORITY THE AGENT HAS TO MAKE A DEAL ON YOUR BEHALF. • DISCUSS A SCHEDULE FOR RECEIVING PROGRESS REPORTS. • BE CLEAR ABOUT THE TERMS OF THE AGENT’S COMPENSATION FOR TIME AND SERVICES.

  16. MACRO-LEVEL STRUCTURAL ANALYSIS(ORGANIZING QUESTIONS BEFORE A NEGOTIATION) • ARE THE PARTIES MONOLITHIC? • IS THE GAME REPETITIVE? • ARE THE NEGOTIATIONS PRIVATE OR PUBLIC? • IS THERE MORE THAN ONE ISSUE? • IS THIS NEGOTIATION LINKED TO ANOTHER ONE?

  17. MACRO-LEVEL STRUCTURAL ANALYSIS(ORGANIZING QUESTIONS BEFORE A NEGOTIATION)-CONT. • CAN WE EXPECT THEM TO USE THREATS IN THE NEGOTIATION? • IS AN AGREEMENT REQUIRED? • IS RATIFICATION REQUIRED? • ARE THERE TIME CONSTRAINTS? • IS THIRD PARTY INTERVENTION POSSIBLE?

  18. NEGOTIATION AS A PROCESS • NEGOTIATION PROCESS NORMALLY CONSISTS OF 3 PHASES: • PHASE 1: BEFORE THE NEGOTIATION (PREPARATION OR INVESTIGATIVE PHASE) • PHASE 2: DURING THE NEGOTIATION (OPENING, PRESENTATION, BARGAINING, CLOSING/AGREEMENT) • PHASE 3: AFTER THE NEGOTIATION (REVIEWING THE NEGOTIATION)

  19. PHASE 1:BEFORE THE NEGOTIATION • PLANNING • INFORMATION-GATHERING (FACT FINDING). • INFORMATION THAT WILL HELP YOU DEFINE YOUR OWN OBJECTIVES, AND ARGUE FOR WHAT YOU WANT TO ACHIEVE IN THE NEGOTIATION. • INFORMATION ABOUT THE OTHER SIDE, THEIR GOALS AND OBJECTIVES ETC

  20. GOAL SETTING • DEFINING WHAT YOU WANT TO ACHIEVE • DEFINING YOUR LIMITS, OR HOW FAR YOU WILL GO • DECIDING ON YOUR OPENING BID • PREPARE ALTERNATIVE PROPOSALS AND ESTABLISH BATNA (BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT)

  21. HAVE CONSULTION ON THE AGENDA AND THE PROGRAMME • FORMULATE A STRATEGY

  22. BATNA(the Best Alternative To a Negotiated Agreement). • Best alternative that is available to you without entering a negotiation. • BATNA tells you whether you should accept the offer, deal, or proposal in front of you or you should walk away.

  23. AGENDA & PROGRAMME • THEY ARE NECESSARY IN ORDER TO HAVE A CONTROLLED AND ORDERLY DISCUSSION. • IT IS IMPERATIVE THAT THEY BE AGREED BY THE PARTIES CONCERNED.

  24. AGENDA MAY INCLUDE: • A LIST OF ISSUES UNDER NEGOTIATION. • A DEFINITION WHAT EACH ISSUE MEANS (ANNOTATED AGENDA). • THE ORDER OF THE DISCUSSION OF ISSUES • THE AMOUNT OF TIME THAT WILL BE ALLOCATED TO THE DISCUSSION AND RESOLUTION OF EACH ISSUE.

  25. FORMULATE A STRATEGY • A STRATEGY IS A GENERAL PLAN OR A SET OF PLANS TO ACHIEVE THE NEGOTIATION GOALS. IT IS THE ART OF PLANNING THE BEST WAY TO GAIN AN ADVANTAGE OR ACHIEVE SUCCESS. • STRATEGIES INCLUDE A VARIETY OF PLANS AND PREMEDITATED TECHNIQUES. • STRATEGY REQUIRES SKILLS TO ADAPT RULES, PROCEDURES AND TECHNIQUES TO NEGOTIATION APPLICATIONS.

  26. EXAMPLES OF NEGOTIATION STRATEGIES • QUICK AND DELIBERATE STYLES TO START NEGOTIATIONS • INTRODUCING COMBINATIONS • USING BROAD COVERAGE • MOVING ONE STEP AT A TIME • USING STATISTICS

  27. TACTICS • Tactics are methods used to gain an end in a particular situation. In our case, it is to reach an agreement in making a deal. • Like strategy, tactics also require skills to adapt rules, procedures and techniques to negotiation applications.

  28. EXAMPLES OF NEGOTIATION TACTICS • Showing patience • Using surprise • Employing diversion • Manipulating participation • Blaming a third party

  29. Applying pressure tactics • Setting pre-conditions before the meeting • Volunteering to keep the minutes of the meeting • Presenting demands • Declining to speak first

  30. EFFECTIVE QUESTIONING • Planning which questions to ask during negotiations is part of preparing for negotiation • Effective questioning does not follow scientific rules but is more of an art

  31. Should be approached in a manner that does not cause embarrassment • Avoid asking questions that are either controversial or ambiguous

  32. TYPES OF QUESTIONS (EXAMPLES) • Direct: A direct question is very specific. You may ask your opponent to provide a rationale for a specific item under review. • Factual: a factual question asks for information about actual data.

  33. Leading: a leading question attempts to get affirmative answers. • Delegated: a delegated question addresses questions to someone else on your opponent's negotiating team

  34. UNETHICAL TACTICS Negotiators should not use unethical tactics, because: • They may be dealing with the other party again in the future, and need to have a positive, long-term relationship. • The other party will possibly discover that the tactics are being used.

  35. The other party may have enough power to get revenge or punish the perpetrators of unfair tactics. • They may not be effective in using them, or their conscience will bother them or give them away.

  36. EXAMPLE OF UNETHICAL TACTICS • EXAGGERATING OR DISGUISING FACTS. • MANIPULATING POWER. TROUBLESOME TACTICS: • OUTRIGHT LYING • GIVING GIFTS OR BRIBES. • MANIPULATING THE OTHER PARTY’S CONSTITUENCY. • MAKING FALSE THREATS OR PROMISES. • DEMEANING THE OTHER PARTY. • SPYING • STEALING

  37. PHASE 2: DURING THE NEGOTIATION (AT THE BARGAINING TABLE) • OPENING OR PRESENTATION: LAY OUT ARGUMENTS, LISTEN CAREFULLY, TAKE NOTES, ASK QUESTIONS, OBSERVE BODY LANGUAGE. • SETTING THE TONE • EXPLORING UNDERLYING NEEDS OF THE OTHER PARTY • USE OF PARTICULAR STRATEGY AND TACTICS SKILFULLY

  38. STEPS USUALLY TAKE PLACE IN THIS STAGE: • OPENING (INTRODUCTION), • PRESENTATION (QUESTIONS AND INFORMATION), • BARGAINING (ISSUES REDUCTION), AND • CLOSING/AGREEMENT.(END-PLAY)

  39. PRESENTATION (QUESTIONS AND INFORMATION) • REQUESTS FOR INFORMATION, QUESTIONS AND ANSWERS, • ESTABLISHMENT OF WORKING GROUPS OR SUB-COMMITTEES (IF NECESSARY) • PRESENTING ADDITIONAL ARGUMENTS AND COUNTERARGUMENTS.

  40. BARGAINING (ISSUES REDUCTION) • You play the classic negotiation game of give and take. • Parties will have to make concessions to reach some agreement. • Make your watchwords discipline and control.

  41. ( 2 ) • Leave your egos at home and concentrate on the most creative way to seek agreements • Usually the other side is reluctant to lose what they have gained, so they will agree to small concessions to save negotiating again.

  42. CLOSING/AGREEMENT(END-PLAY) • Parties wrap up the final agreement and formalize it in a writing. • Clarify anything ambiguous or incomplete. • Closing rituals are important. • Decision needs to be made on the place of the final agreement.

  43. PHASE 3: AFTER THE NEGOTIATION • REVIEWING THE NEGOTIATION (WHAT WENT WRONG?. WHAT CAN BE IMPROVED NEXT TIME?) • CRIETERIA FOR MEASURING THE OUTCOME OF NEGOTIATION: FAIRNESS, EFFICIENCY, WISDOM, STABILIITY.

  44. REVIEWING THE NEGOTIATION • Parties often discover that the agreement was incomplete or flawed. • If the other party wants to raise a new issue that they “forgot” , you have the right to reopen the entire negotiation package and discuss other issues as well.

  45. ( 2 ) • Every good agreement should create the opportunity for the parties to reopen discussions if there are problems in implementation.

  46. CRITERIA FOR MEASURING THE OUTCOME OF A NEGOTIATION • Fair: Although fairness is very subjective, but we can compare our deal with other similar ones that we know about. Also consider special circumstances. • Efficient: All deals have not been rammed through too fast.

  47. ( 2 ) • Wise: Implications of the agreement for other negotiations have taken into account. Also the implications of this agreement for other people. • Stable: It means the commitment should ensure stability. It will be honoured and it will hold up over time.

  48. GOOD AND BAD HABITS IN NEGOTIATING • GOOD NEGOTIATING HABITS WILL PUT YOU IN A BETTER POSITION TO DEAL WITH THE UNEXPECTED, BECAUSE YOU WILL BE ABLE TO FOCUS ON THE CHANGING SITUATION WITHOUT ANY DISTRACTIONS • BAD NEGOTIATING HABITS WILL HURT YOUR BARGAINING POSITION BECAUSE THEY WILL HINDER YOUR PERFORMANCE

  49. GOOD HABITS for NEGOTIATORS • Make good eye contact with everyone you meet. Looking away from people suggests that you lack confidence. • Dress neatly and professionally (conservatively or status oriented). • Speak clearly. • Eliminate "fillers" ("you know" and "uuummm").

  50. Listen carefully and ask pertinent questions. • Sit with good posture. • Stand and walk with your head up, shoulders back, and body straight. • Develop a standard method of preparation for every negotiation. • Arrive early at all of your appointments.

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