Master  Class  

Negotiation  &    Persuasion  in  Action  

Margaret  ConsidineCEO  EQuita  Consulting  Limited  MA[Conflict  &  Mediation],  MSc  [Mgmt.OB],  H.Dip,  BA[Mgmt],  MMII  ,  CEDR

KNOW…  DO…  BE  – The  artistry  of  Professional  PracticeInfluence  Negotiation  and  Persuasion  Trilogy

Overview  of  Influence  Persuasion  and  Negotiation  

Negotiation  Skills  as  Core  Commercial  Competency

q Negotiation  is  a  Key  communication  &  influence  tool  for  interdependent  relationships  and  traversing  the  line  of  difference  between  two  conflicted  parties

q YET  -­‐ Most  people  not  very  good  at  negotiation  (e.g.,  over  80%  of  corporate  executives  and  CEOs  leave  money  on  the  table)

q 70%  of  Execs  had  no  formal  negotiation  expertise

q Our  challenge  is  to  dramatically  improve  ability  to:q Create  valueq Claim  valueq Build  trust  &  relationships

q Research  basis  in  economics  and  psychology

Negotiation:  Trading  Skill  Set  

Effective Relationships are ‘A’ key to a successful working

Environment

DO  YOU  BELIEVE  THIS?

Negotiation:  Trading  Skill  Set  

Negotiations  101All  Negotiations  Involve  

1. Price  /  Value  2. Movement   /  Trading  3. Relationships/   People  

2  Types  of    NegotiationWhere  two  parties  have  a  joint  difficulty  and  where  they  intend  to  agree

• There  are  two  types:

q Distributive – Splitting  a  fixed  pie  – Claiming  VALUE

q Integrative – Enlarge  the  pie  – Creating  VALUEswelling  the  size  of  the  pie  by  adding  more  variables  to  negotiate  on  and  then  getting  as  much  of  that  pie  as  you   can  for  yourself  while  leaving  enough  on  the  table  for  the  other  side.  

• Four  Phases  of  Strategic  Negotiation:1. Preparation2. Opening  &    Proposing3. Bargaining4. Closing  

What  we  both  wantSomewhat

Unimportant  to  either  of  us

What  we  both  want  most

Usually  Price  We  end  up  having  to  split  it  

100  %THEM

00

100  %Me

DISTRIBUTIVE  NEGOTIATION:  

I  win  

You  loose

You  Win

I  loose  

qIntegrative – Enlarge  the  pie  – Creating  VALUE

swelling  the  size  of  the  pie  by  adding  more  variables  to  negotiate  on  and  then  

getting  as  much  of  that  pie  as  you    can  for  yourself  while  leaving  enough  on  the  

table  for  the  other  side.  

Sample  checklist  of  Variables  

• The  more  Variables  the  better  [but  the  more  work]    

• Basic  quality  of  product  or  service• Ease  of  implementation• Interest  Rate• Covenants• Flexible  repayments• Speed  of  raising  loans• Price• Payment  terms• Currency• Caveats• Delivery  time  • Key  account    Support• Break  Clauses

• Guarantees• Steady  relationships• Options  on  future  business• Help  with  promotion/advertising• Speed  of  settlement• Transfer  of  technology• Staff  training• Volume  discount• Publicity• Personal  status• Fun• EFT  payments• Dedicated  contact  person  

Tactic:   More  variables  =  More  tradability  

What  we  both  wantSomewhat

What  They  Want

What  I  Want

Unimportant  to  either  of  us

Important  to  me What  we  both  want

What  we  both  want  most  

Very  Important  to  them

Very  Important  to  me

100  %THEM

00

100  %Me

INTEGRATIVE  NEGOTIATIONS

E

H

LM

C

FJ

O

K

X

P A

I

B

D

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1.Line  of  Negotiation  – identify  as  early  as  possible2.Positions  v’s Interests  -­‐ Power  of  Anchors

3.Reference  Points  &  Variables4.Perception  and  Needs

5.BATNA6.WATNA

7.ZOPA8.Re-­‐anchoring  

9.Insult  offers  10.Clear  the  table

Ten  Basics  of  Negotiation

• Unrealistic  Expectations1• Irrational  Escalation  of  Commitment  2

• Over  competitiveness  Myth  of  Fixed  Pie  3

4

5 Incorrectly  Framing  a  situation

Selecting  inappropriate  Anchors

5  Common  Mistakes   in  Strategic  Negotiations  

The  Seven  Skills  of  More  Effective  Negotiators

1. Thorough   preparation  – including  knowing  when  and  how  to  close

2. The  ability  to  set  limits  and  goals

3. Keeping  your  emotional  distance

4. Good   listening  skills

5. Clarity  of  communication

6. Building   rapport

7. Negotiating  with  different  personality   types

Prepare

Open

Bargain

Close  

Stages  of  Negotiation  

Quick Guide to PreparationHow to prepare

1. Set goals 2. Have as many variables as possible3. Do ‘Think in Ink’.4. Have a BATNA /know WATNA5. Price Your stock6. Do the 5 D Test to ensure that what you aimed for you have

achieved.Preparation is everything…… or nearly in negotiations.

Opening

• Sends  Signals• Continuously  

• Tools• Important  ???

Physical  Settings   Rapport  

AnchorsGather  Data

Finding  Areas  of  Agreement

Your  goals Your  counterpart’s  goals

Your counterpart’s area  of  deferred gratification

Your counterpart’s  push  zone

Your  area  of  deferred  gratification

Your  push  zone

Area  of  easy  potential  agreement

qContinuously  Gather  DataqKeep  an  open  mindqAsk  enquiring  questionsqLink  answers  to  objectivesqFind  Healthy  Mutuality    of  methods  &  Demonstrate  CollaborationqBuild  for  early  Success  

Strategies

CLOSING  – what  to  remember

1• Clear  the  table

2• Write  up  the  agreement  • Allow  for  Contingent  Contracts• Watch  out  for  Nibbles  

3• Attend  to  the  relationship

Persuasion

4  Keys  to  Persuasion

•Get  the  basics  right

•Develop  a  Tool  Box

•Maximise  the  12  words  of  extraordinary  persuasion  in  the  English  language

•Leverage  the  9  Connectors

Get  the  basics  Right

1. Demonstrate  Confidence2. Be  Optimistic  3. Be  Authentic  4. Be  prepared5. Use  Good  Attending  Skills  6. Tailor  your  message  to  your  audience7. Build  a  persuasive  case8. Find  Alignment9. Demonstrate  adaptability10. Attend  to  the  relationship

Develop  a  Tool  Box

1. Persuasive  Reasoning2. Charismatic  Persuasion3. Use  the  six  Universal  principles  of  Persuasion  to  maximise  your  efforts

i. Reciprocity:ii. Liking:iii. Social  Proofiv. Consistencyv. Authorityvi. Scarcity

12  Words  of  Extraordinary  Persuasion

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Nine  Things  both  sides  Wants

1. To  feel  good  about  themselves

2.Not  to  feel  bullied

3. To  be  listened  to

4. To  know  and  understand  more

5. To  finish  the  negotiation  without  too  much  heartache

6. To  be  treated  respectfully  &  To  be  liked

7.Clear  communication

8. To  be  trusted

9. To  be  treated  fairly

Nine  Things  both  sides  Wants

TEN  T  O  P    T  I  P  S  :

1. Spend  time  planning  your  negotiation  (your  side  and  theirs)  2. Have  a  hierarchy    &  range  of  objectives3. Aim  High:  Ask  for  ‘the  most’  – people  who  ask  for  most  get  most  as  

long  as  its  within  the  bounds  of  reasonableness4. Have  a  BATNA  /know  WATNA  -­‐ Explore  interest  rather  than  taking  set  

positions5. Price  Your  stock    -­‐will  help  you  know  what  to  trade  &  when6. Form  Coalitions7. Talk  less  and  listen  more.8. Don’t  make  the  first  concession  – if  you  do  get  something  back  in  

exchange  of  higher  value  9. Maintain  pressure,  avoid  provocation,  resolve  the  negative  

consequences  for  the  other  side  10. Review  afterwards  and  manage  the  aftermath

Thank  you  for  your  attention  &  valuable  contribution.   I  look  forward  to  meeting  you  all  across  the  negotiation  table  soon.

RegardsMargaret  

Don’t  be  a  stranger!  

margaret@equita.ie

Tel:     +35312934741   ...  [m]  +353878251567