Negotiating Skills

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Negotiating Skills

• Presented by Felicity Mildon
• Wednesday 4th October 2006

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Negotiation is

• A process where two or more parties confer to
  reach agreement, each making and responding to
  offers, demands, or proposals from the other
  (Tillet, 1999)

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Session objectives

• Understand key techniques and approaches to
  effective negotiation outcomes
• Understand win/win negotiation
• Opportunity to practice skills

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Activity

• What types of negotiations are you involved in
  (both personally and professionally?)
• What makes a good negotiator?

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Two types of negotiation

• Competitive negotiation where the parties seek
  to maximise their gains, generally at the expense
  of the other party/parties.

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and

• Collaborative Negotiation which seeks to meet
  the needs of all parties, creating fair, balanced
  and realistic agreements.

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Two other important approaches

• Interest based bargaining seeks to meet the
  needs and interests of both parties
• Positional based bargaining each party takes a
  side, argues for it and makes concessions to
  reach a compromise

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Activity

• Think about a recent negotiation that did not
  turn out they way you wanted it to. What went
  wrong?

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Phases of Negotiation

• Preparation
• Mapping (of each parties needs)
• Research
• (facts, costs, precedents)
• styles of each party
• how to make it easier for the other party to
  agree
• Clarify outcomes
• BATNA (Best alternative to a negotiated outcome)
• WATNA (Worst alternative to a negotiated
  agreement)

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Phases of Negotation (contd)

• Prepare the environment
• Agenda
• Neutral setting (where possible?)

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Phases of Negotiation (contd)

• Interaction
• Opening
• Positive tone
• Benefits to both parties
• Pre-empting possible objections
• Interaction
• Building rapport
• Discussing needs/priorities
• Generating options
• Selecting options

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Phases of negotiation (Contd)

• Summarising agreement

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Unfair Negotiation Techniques

• Introducing misleading information
• Personal attacks
• Manipulative timing or agenda planning
• Good cop/bad cop
• Referring to a higher authority
• Emotional blackmail

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Responding to Unfair Tactics

• Respond, not react (manage our emotions)
• Refocus on the issue
• Identify unfair tactics
• Change the physical environment

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Other Negotiating Hints

• Be true to yourself
• Be knowledgeable
• Be optimistic
• Say no if necessary
• Be flexible
• Be calm and confident
• Listen
• Take the time required (do not rush)

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Role Play 1

• You are required to negotiate a new contract for
  the delivery of negotiation skills training for
  your organisation.
• Your are negotiating with a reputable training
  organisation but with whom you have had no
  prior dealings

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Role Play 2

• You are negotiating to buy a new car and have a
  set budget.

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Any questions?