Negotiation.

What is negotiation…?
Negotiation is a dialogue between two or more
people or parties,
intended to-
To reach an understanding.
produce an agreement upon courses of action.
To gain advantage in outcome of dialogue.
To resolve point of difference.
To bargain for individual or collective
advantage.
To craft outcomes to satisfy various interests of
two person/ parties involved in negotiation
process.
 In short negotiation is a process where
each party involved in negotiating try
gaining advantage for themselves at the
end of the process.

 Negotiation is intended to aim

at compromise.
 When do we
Negotiate?
When we need someone’s consent

When the time and effort of

negotiating are justified

When the outcome is uncertain

Source: The Negotiate Trainers Manual 1996 p6.
 Some decision making
tools for negotiation:
Persuasion : Usually the first method we choose when we want
something. Useful when interests or opinions are
the same.
Giving in: This is not the easy way out, and sometimes it’s just
not worth continuing if the cost (in any terms) is too
high.
Threats : This could simply be stating your options, ‘I could
take my business elsewhere’. It could also be gentle
reminders or unspecified consequences right up to
threats. Threats are not useful in a negotiation
situation as they erupt in full blown battles.
Problem Solving: Works well when both parties have a strong
relationship, where you trust each other, and share
the problem.
 He should be a good learner and
observer.
 Should know the body language of the

people at the negotiation process.

 Should be open and flexible and yet firm.

 Exercise great patience, coolness and

maturity.
 Should possess leadership qualities.
 Should control emotions and not
show his weaknesses.
 Should bargain from the position of strength.
 Should know and anticipate the pros and cons
of his each move and its repercussions.
 Should know how to create the momentum for
the negotiations and must know when to exit
and where to exit by closing the talks
successfully.
 Should build trust and confidence.
 Should be confident and optimist.
 Should have clear cut goals and objectives.
 If necessary, he should provide a face saving
formula for his counter party.
 Should be able to grasp the situation from
many dimensions.
 Should know human psychology and face
reading
 Should not be a doubting Thomas.
 Should plan and prepare thoroughly with

relevant data and information to avoid

blank mind in the process.
 Should radiate energy and enthusiasm

and must be in a position to empathize

with his opponents.
 Should be a patient listener.
 Objectives
 What exactly do I wish to achieve?
 Which of my objectives:
 must I achieve?
 do I intend to achieve?
 would I like to achieve?
 What other options are acceptable to me?
 Two types of negotiation
 Co-operative = win/win
 empathetic
 partnership agreements

 Adversarial = win/lose
 maximise own gain and other’s loss
 unstable agreements
 Phases of negotiation
 Preparation
 Opening
 Compromising
 Closing
Characteristics of a negotiation
 A preference to search for a solution
rather than have a fight
 Depends on:
 Personalities of the people involved
 History that exists between them
 The persuasive ability of each
 PLAN
 What do I want?

 What do they want? Try to judge the objective they will want, what
arguments are they going to use to support their objective and how will
you counter them?

 What will/can I trade?

 Explore all the available options of the trade

 Explore long and short term implications of each option for all parties
involved

 Set objectives in terms of acceptable limits and that you have a realistic
chance of achieving.

 Visualise possible gains, not losses.

 Be aware that the opposition might have a hidden agenda

 PLAN
 Identify your supporting arguments that justify your objectives and
the arguments that the other party may use against them. How
will you counter their arguments?

 What strengths and weaknesses do you take to the negotiating

table? How can you maximise your strengths and minimise your
weaknesses?

 What are the strengths and weaknesses of the other party?

 What will be your opening argument and how will you present it?

 Timescale – how much time is there to negotiate how imperative

are deadlines?

 What will be your opening position, your fall back position and your
final fall back position beyond which you will refuse to do business.
 DEBATE
• Positive Powerful opening – confident body language, tone and words

• Break the ice and discuss neutral topics and build rapport

• Cover: Why we are here, what we are going to do, how long it will take

• Emphasise the need for agreement at the outset

• Listen to what the other party say and how they say it

• Observe non-verbal signals

• Sit where you can see everyone

• If you are with one other person sit apart – so you are 2 voices.
 DEBATE
 Give your general views on the broad field to be covered.

 Look together at the possibilities for joint advantage – emphasise

areas of agreement

 Never pass over something you don’t completely understand.

 Don’t feel intimidated – both sides are under pressure. The person
under the greatest time pressure loses – so don’t reveal your
deadlines.

 Always maintain walk away power

 Exchange information through statements. Explain and explore the

differences that prompt the search for a negotiated solution.
 Behavioural
essentials.
 Deliver the statements in a neutral tone. Deliver it in a hostile
tone and you can predict the effect and response.

 Give assurance, i.e. you are in the ‘solution business’, and any
current difficulties are problems to be jointly overcome.

 Disclaim any intention of acting negatively towards the other

party.

 Use questions to elicit information not to fuel argument.

Questioning is an important negotiating skill, and demonstrates
your willingness to understand the other negotiators interests

 Actively listen, don’t pretend to listen and don’t wait to speak –

give the speaker your full attention.
 Responses to a Proposal

 If you don’t agree, avoid ‘amateur dramatics’, slamming the table, storming
out etc.

 A good response means responding positively. Welcome the fact a proposal

has been made, you don’t have to agree with the content – this is what you
are around the negotiating table for, to improve on the initial proposal to
achieve a mutually acceptable solution.

 If agreement is hard to find keep looking for a solution until one is found
or, it is clear that one doesn’t exist.

 You then have to either agree to disagree and call a halt to negotiations or,
if the consequences or alternatives are not acceptable then negotiation has
to continue.
 Reaching an outcome-
 Be prepared to make concessions, offer the smallest
concessions first – you may not need to go any further.

 Compromise without losing face. If you have had to

backtrack on a point you had as your final position you
could say ‘Since you have changed your position on… I may
be able to change mine on…’

 Make eye contact to emphasise that each concession.

 Do not ignore issues in order to speed up negotiations.

 Record fully all agreements finalised at the negotiations

close.
 Know Your BATNA
 Best
Alternative To a
Negotiated Agreement to
produce something better
 Thebetter your BATNA the
greater your power.
This is proposed by a few..
 Dealing with Difficult
Negotiators.
 Intimidation
 Domineering
 Bullying
 Threats
 Focusing on their own interests and not yours

Be careful to distinguish those who always behave in

this manner to those who are just having a bad day.
 Dealing with Difficult
Negotiators.
So what can you do about it?

 Do not let their behaviour affect the outcome – that is what

they want. They know if they behave in this way they will
get what they want because the other party will back down.

 Do not react to their behaviour- that is what they want.

 You need to ignore their behaviour, this is what they choose

– not you. Be focused on the outcome and do not let their
behaviour influence you away from this.
 Emotional
Challenges
Anger/exasperation
Insulted
Guilt
False flattery
Tips:
•Don’t lose your cool .
•Try to defuse with acknowledgement, empathy, patience,
impartiality.
•Consider dealing with less emotional issues first
•Know your own “Hot Buttons”
•Practice
 Negotiation Check List
Good Practice Avoid

 Actively listen ×Interrupting

 Question for clarification ×Attacking

 Summarising ×Blaming

 Test commitment ×Talking too much

 Seeking & giving information ×Sarcasm

 Encourage two way conversation ×Threats

 State and plan your proposal – ×Taking it personally

then summarise ×Closed body language

 Use the ‘if you ….then we’ll’

principle
 Closing
 Review position to date and agree it.
 Record the details.
 Define and timetable outstanding issues.
 Agree with the consultant that you both
have the same interpretation.
 Give the other party the opportunity to
clarify any issues.