The Art of Negotiation Workshop

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• The Art of Negotiation Workshop

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By show of hands, who has completed the online
Art of Negotiation course?
Online Course
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Think back to what Wendy, Larry and Mr. Song went
through in their negotiations. Today its your
turn to practice your negotiating skills.
Online Course
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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

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Review of Online Course

• First lets review the negotiating stages and
  principles you learned in the online course.
• Break into groups of 3-4 and choose a group
  leader
• Heres a Negotiating Quick Reference Card for
  each of you
• In a moment Ill give you a handout with
  instructions for your group activity
• Youll have 5 minutes to read the instructions
  and prepare then 3 minutes to present
• Write your ideas on the flipchart paper on the
  wall

Continued on next slide
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Review of Online Course

• Im assigning each group 1-2 negotiating stages
  and principles from the list below
• Heres your handout with instructions take 5
  minutes to read it and work on your
  assignment

• 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
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Review of Online Course

• Lets start with the group that had the first
  stage in negotiating, Preparing.
• Group leaderYou were assigned 2 steps in
  Preparing. Tell us what youd do for each of
  those steps to prepare.

Move to next slide when group presents
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Review of Online Course

• 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

Group has 3 minutes to present
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Review of Online Course

• Lets go to the group that had the second stage,
  Opening.
• Group leaderYou were assigned 2 steps in
  Opening. Tell us what youd do in each step to
  open the discussion.

Move to next slide when group presents
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Review of Online Course

• Opening
• Establish rapport
• Share your agenda
• Create an emotional connection between the two
  parties

Group has 3 minutes to present
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Review of Online Course

• Lets go to the group that had the third stage,
  Negotiating.
• Group leaderYou were asked to create 3 probing
  questions for Negotiating. Tell us your
  questions.

Move to next slide when group presents
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Review of Online Course

• Negotiating
• Present your proposal
• Listen to understand
• Listen
• Reflect
• Probe
• Acknowledge and address objections

Group has 3 minutes to present
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Objection Handling Review

1. Listen
2. Restate as a question
3. Cushion, relate and empathize
4. Probe and isolate the objection
5. Present a solution
6. Close, ask for agreement

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Objection Resolving Exercise
I love the house but want to wait and see if the
price drops
I dont want to hold Open Houses
I am in insulted by that offer
Your fee is what?

• 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

What are some other common objections your are
challenged with in todays market?
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Review of Online Course

• 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
  persons feelings or thoughts
• Probe
• Asking questions to ensure there are no further
  underlying concerns or needs

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Review of Online Course

• 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 youre concerned about that
  Id feel the same way.
• Address
• Show objective data to address their objection

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Review of Online Course

• Lets go to the group that had the last stage,
  Closing.
• Group leaderYou were told that the negotiation
  was not successful and you couldnt come to
  agreement. How would you reinforce the value of
  the relationship with Mr. Jones and with Sam?

Move to next slide when group presents
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Review of Online Course

• Closing
• Structure the agreement
• Wrap up the discussion
• Reinforce the value of the relationship

Group has 3 minutes to present
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Review of Online Course

• Lets go to the group that had the first
  negotiating principle, focus on interests, not
  positions.
• Group leaderYou were told that Mr. Jones was
  extremely offended by the low offer. Tell us
  what you would do to apply this principle.

Move to next slide when group presents
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Review of Online Course

• 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

Group has 3 minutes to present
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Review of Online Course

• Lets go to the group that had the second
  negotiating principle, use objective criteria for
  establishing an agreement.
• Group leaderYou were told that Mr. Jones was
  extremely offended by the low offer. Tell us what
  you would do to apply this principle.

Move to next slide when group presents
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Review of Online Course

• Using objective criteria for establishing an
  agreement
• Use hard facts to create an agreement that
  appeals to the other partys interests
• Discuss objective standards for settling a
  problem rather than forcing each other to back
  down

Group has 3 minutes to present
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Review of Online Course

• Lets go to the group that had the last
  negotiating principle, be soft on the people and
  hard on the problem.
• Group leaderYou were told that Mr. Jones was
  extremely offended by the low offer. Tell us what
  you would do to apply this principle.

Move to next slide when group presents
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Review of Online Course

• Be soft on the people and hard on the problem
• Maintain, or even improve, relationships
• Focus on the issue, not on the emotion

Group has 3 minutes to present
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Its Time to Practice Round 1

• Now its time to try negotiating. Lets start
  with a non-real estate negotiation, called the
  Ugli Orange Role Play.
• For this practice, were 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

Continued on next slide
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Its Time to Practice Round 1

• Break into groups of 3
• Decide who will play each role Dr. Roland, Dr.
  Jones, and Observer

Continued on next slide
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Its Time to Practice Round 1

• 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 theyll answer to record how
  well the negotiators applied the three
  principles.

Continued on next slide
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Observers Role

• Read both roles carefully dont reveal what
  youve read
• Review the questions youll 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
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Its Time To Practice Round 1
Ill hand out your roles in a moment. Youll
have 10 minutes to read through your role and
prepare for the negotiation. When I call
time, youll have 10 minutes to negotiate.
Ill put the negotiating principles you should
follow on the screen. Ill let you know when 10
minutes are up.
Continued on next slide
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Its Time to Practice Round 1

• By show of hands, who will play Dr. Roland?
  Heres your packet - dont share it
• By show of hands, who will play Dr. Jones?
  Heres your packet - dont share it
• By show of hands, who will play the Observer?
  Heres your packet dont share it

Move to next slide after 10 minutes and tell
groups to start the negotiation
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Conducting The Negotiation

• 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

After 10 minutes stop the negotiation and move to
the next slide
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Large Group Review

• 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 others underlying
  need?
• Did the parties trust each other?
• Which principle was critical to the success of
  the negotiation?

Stop after 3 minutes
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Wrapping Up Round 1

• 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.

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Its Time to Practice Round 2

• Now its time to try a real estate negotiation.
• This time, were going focus on how well you can
  follow the Opening, Negotiating, Closing stages
  and apply the principles.

Continued on next slide
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Its Time to Practice Round 2

• 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

Continued on next slide
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Its Time to Practice Round 2

• 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 theyll 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.

Continued on next slide
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Observers Role

• Your role is to observe and listen as the
  Weichert Associate negotiates youre 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
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Its Time to Practice Round 2
Ill hand out your roles in a moment. Youll
have 10 minutes to read through your role and
prepare. When I call time, youll have 10
minutes to negotiate. Ill put the steps you
should follow on the screen. Ill let you know
when 10 minutes are up.
Continued on next slide
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Its Time to Practice Round 2

• By show of hands, who will play the Weichert
  Associate? Heres your packet dont share it
• By show of hands, who will play the Other Party?
  Heres your packet dont share it
• By show of hands, who will play the Observer?
  Heres your packet dont share it

Move to next slide after 10 minutes and tell
groups to start the negotiation
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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
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Small Group Feedback Discussion

• 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?

Stop after 3 minutes
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Large Group Review

• 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?

Stop after 3 minutes
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Lets Review

• 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 its important to know your own needs, its
  almost more important to the success of the
  negotiation to focus on the needs of the other
  party

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Want to hone your skills further?
To brush up on your skills, take the online Art
of Negotiation course again. Its even better
the second time around!
Want even more practice? Come to our next Art of
Negotiation Workshop.
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Thank you for your active participation
today. Rememberpractice makes perfect. Good
luck!