Negotiation

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Negotiation

• LEED2110 Skill Build for Enterprise

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Workshop Aim

• To understand the social and financial benefits
  of developing strong soft skills such as
  negotiation
• How do you get others to buy-in? 
• How can you avoid creating long term problems
  when you negotiate? 
• How can you avoid being taken advantage of in
  negotiations without creating an impasse? 
• Learning Outcome
• To recognise transactions require an
  appreciation of mutual benefits.
• To understand a little more about personal
  strengths to negotiate effectively.

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What is your image of negotiation?
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Definitions of Negotiation

• Getting an acceptable agreement between two or
  more parties.
• or
• A process for resolving conflict between two or
  more parties whereby both or all modify their
  demands to achieve a mutually acceptable
  compromise.
• or
• Negotiation is a process of adjusting both
  parties views of their ideal outcome, to an
  attainable outcome

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Key words

• Assertion standing up for your rights without
  hurting anyone
• Aggression being prepared to walk over to
  get what you want
• Timidity not standing up for your rights, so
  others do what they want. - Passive behaviour
• People may get away with being aggressive but
  do they get the repeat business?
• Aim for win- win resolutions

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A curry with a difference
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Assertion Task How many apply to you? (Gibson
2007)

• I can never say no
• I hate confrontation
• I am too aggressive
• I want to be liked
• I hate rejection
• I dont like speaking up
• I will put up with a lot
• I put myself down
• I find it difficult to cope with others
  aggression
• I dont like to make a fuss

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It is helpful to be assertive at work when

• Reprimanding or criticising an employee (or )
• Delegating tasks, especially unpleasant ones
• Coping when you are asked to do more than is
  possible
• Needing a result from a meeting
• In personal performance appraisals
• There are conflicts between people that need
  arbitration
• When sales representatives from other firms want
  more than you want to give.

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Practice, and make notes about your successes and
how you feel

• No to street vendors
• Polite no to telephone sellers
• Have you a problem with a house mate?
  Something that irritates you? Can you negotiate a
  new routine?

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Example

• Imagine that in your part time job your boss has
  asked you to do something report, sales task, .
  by next week. But there will not be time for you
  to get it done.
• How will you approach this issue?

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Top Tips

• Think / research first. Immediate responses my
  not be the best. No I cant, thats
  unreasonable will not help your reputation
• Effective negotiators keep the big picture in
  mind.  Why is the report / .. needed so fast
• You have the task but do you have to do it?
  Research who can help.
• Book an appointment to discuss options for
  completing the task, the timetable, people
• Explain your position clearly and the steps you
  can envision to get the job done

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Top Tips

• Ask questions to make sure your boss understand
  the position. Keep focused. The details matter,
  but remember to check that you are heading the
  right way.
• Being relaxed will help keep ideas and focus in
  perspective
• Dont be woolly, or divert the conversation to
  other areas
• A good, experienced boss will appreciate that you
  are offering a way through a problem, - a
  solution, being as helpful as possible, and
  should be able to progress your plan and add in
  other solutions.

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Approach

• Set your own objectives for each transaction
• Understand the requirements / needs of the
  other party
• Give nothing for nothing
• Create win win
• Develop a negotiating strategy and practice!
• Be prepared to walk away

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Sell the benefits / outcomes

• Aim to solve customers problems (not to sell
  your product)
• Recognise the whole product offering not just the
  core benefits (packaging brand image colour
  distribution)
• Recognise importance of relationships and
  relating to people (one of your skills?)

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Keeping track developing relationships vital
for repeat business

• Use a database / IT to personalise communication
  with your customers
• Track usage, interest, and complaints
• Capture and build upon communications with
  prospective customers
• Tailor offerings to your customers needs

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Buying

• Dont accept the first offer
• Determine a package which really costs all
  aspects of the product (i.e. support services
  included)
• Know your requirements and what will solve your
  problem draw up a specification
• Use your knowledge of competitions offering to
  secure a lower price

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Closing

• Ensure agreement / next meeting is secured
• Secure in writing / shake hands if appropriate
• Build a relationship for future supply /
  purchase

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Task

• Sara has a new job with the Yorkshire
  Wildlife Trust. They have a vague idea that they
  want to develop a new wildlife sanctuary in
  Headingly. To get this done will need people,
  finance and public relations.
• What situations will arise that will need
  Saras negotiation skills.
• Please brainstorm a list 10 minutes

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• Terms of Saras contract fixed term or
  permanent
• Salary and benefits (car / travel allowance)
• Exact deliverable outcomes with dates
• Resources already available paid or volunteer
  staff
• Personal rewards if the project is delivered on
  time and target (incentives to really work hard)
• Making such rewards available to volunteers
  incentives to get involved
• Local company information to chase sponsorship
• What can she negotiate and what should she pass
  to the head of the organisation to negotiate
• Bidding for grants lottery, local authority
  etc.
• Family and friends so they can support Saras
  time at work

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• In business you don't get what you deserve....you
  get what you negotiate

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Summary

• Aim to negotiate to get the results you want in
  a constructive way
• Know what your motives are
• Know what is motivating the people you are
  negotiate with
• Never go to a meeting unprepared. - Do the
  research first
• Know what you can offer and when to put an offer
  on the table. 
• Work out how to handle difficult people and
  protect yourself from having someone take
  advantage of you.

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Why is negotiation important for enterprising
people?

• To get the best deal from a bank manager
• To get the best deal from suppliers
• To have happy customers who bring in repeat
  business
• Avoid unhelpful conflict with partners and
  employees
• To avoid paying more than you need to
• Have positive relationships with inland revenue,
  accountants, regulators,
• The Aim is to do the best for your business

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Reflection

• What are your strengths as a negotiator?
• In the next weeks I will practise . To improve
  my negotiation skills
• What would strengthen your assertiveness and
  negotiation expertise?
• My action plan is..