CONDUCTING A NEGOTIATIONCONDUCTING A NEGOTIATION Introduce people, small talkIntroduce people, small talk Shift to business - agenda and procedureShift to business - agenda and procedure

What is the purpose of the negotiation ?What is the purpose of the negotiation ?

What issues will be discussed ?What issues will be discussed ?Who will chair the meeting , how long will it last ?Who will chair the meeting , how long will it last ?

Exchange Opening Statements + clarifying questionsExchange Opening Statements + clarifying questions Summarize - agree on issues to be negotiatedSummarize - agree on issues to be negotiated Exchange Opening Positions + clarifying questionsExchange Opening Positions + clarifying questions Identify overlaps and gapsIdentify overlaps and gaps Begin bargainingBegin bargaining

Look for creative solutions to narrow the gapLook for creative solutions to narrow the gap

Ask for explanations and ideasAsk for explanations and ideas

Trade concessionsTrade concessions

Reshape the packageReshape the package

Keep it moving - use summariesKeep it moving - use summaries

Adjourn if necessaryAdjourn if necessary

Decide when and how to closeDecide when and how to close

4 STEP METHOD 4 STEP METHOD ©©

PREPARING

□ Objectives

□ Information

□ Concessions

□ Variables

□ Strategy

□ Teamwork

ARGUING □ Be firm & brief □ Exchange □ Listen □ Question □ Summarize □ Challenge □ Look for clues □ Build on their ideas

□ Talk too much □ Interrupt □ Score points □ Attack □ Blame □ Debate □ Defend □ Threaten □ Talk floppy

SIGNALLING□ Signs of movement□ Qualified statements□ Responding

PROPOSING□ Opening concessions

□ Opening conditions

□ Linking

□ Firm on generalities

□ Flexible on specifics

PACKAGING□ Who

□ What

□ How much

□ When

□ Concessions work for objectives

□ New variables

BARGAINING

□ Trading

□ Lead w/ conditions

□ Unsettled items

□ Nothing for nothing

CLOSING

□ Summary

□ Concession

□ Condition

□ What was agreed ?

TEAMWORK TEAMWORK

Team LeaderTeam Leader

Main SpeakerMain Speaker

Support SpeakerSupport Speaker

QuestionerQuestioner

SummarizerSummarizer

ObserverObserver

NEGOTIATION STRATEGIESNEGOTIATION STRATEGIES

No strategyNo strategy

RationalRational

EthicalEthical

EmotionalEmotional

InsightInsight

Disturb Disturb homeostasishomeostasis

Conceal objectivesConceal objectives

High PressureHigh Pressure

Low pressureLow pressure

Avoid concessionsAvoid concessions

Use his argumentsUse his arguments

Are you sure ?1. Use logic & reason to get him to accept your proposal.2. Convince him of your integrity. Show he can trust you.3. Appeal to the emotions is a powerful way to persuade !4. Provide scattered information rather than systematic

arguments. Allow him to see the relationships himself.5. Use statements to lead him to question the soundness of

his present situation.6. Use indirect & projective questions to orient him to

identify his needs, then show you can meet them.7. Make clear & positive statements. Repeat them.8. Use questions to lead him to a course of action so he

feels he has made the decision to accept your proposal.9. Head off requests for concessions before they’re

verbalized.10. Acknowledge limitations, faults & problems before he

does.

NEGOTIATION DEADLOCKNEGOTIATION DEADLOCK… how to break it… how to break it

Park it, deal with it laterPark it, deal with it later « We both stand to lose if we don’t make a deal »« We both stand to lose if we don’t make a deal » Reformulate the packageReformulate the package Watch for signalsWatch for signals Send signalsSend signals Adjourn the meeting, review the situationAdjourn the meeting, review the situation Make some more (conditional) concessionsMake some more (conditional) concessions Introduce a new variable or optionIntroduce a new variable or option Suggest bringing in a mediatorSuggest bringing in a mediator Restate the issue, watch for reactionsRestate the issue, watch for reactions Summarize, focus on common groundSummarize, focus on common ground Meet outside, off the recordMeet outside, off the record Try walking out !Try walking out !

NEGOTIATION GAMBITSNEGOTIATION GAMBITS… how to deal with them… how to deal with them

Beauty ContestBeauty Contest They’re good but we’re better…They’re good but we’re better… The BudgetThe Budget Who wrote it? Which budget?Who wrote it? Which budget? ShotgunShotgun Let’s talk about that as part of the deal.Let’s talk about that as part of the deal. Fait AccompliFait Accompli You’ll be hearing from our lawyer.You’ll be hearing from our lawyer. DeadlineDeadline Can’t it be extended? Ignore it.Can’t it be extended? Ignore it. ThreatsThreats Never retaliate. Never retaliate. Personal CriticismPersonal Criticism Never retaliate.Never retaliate. Pulling StatusPulling Status Ignore it.Ignore it. Sausage SlicingSausage Slicing It’s a package.It’s a package. The Numbers GameThe Numbers Game Can you confirm that in writing?Can you confirm that in writing? Bad Guy - Nice GuyBad Guy - Nice Guy Talk to nice guy, look at bad guy.Talk to nice guy, look at bad guy. Change of NegotiatorChange of Negotiator Summarize, withdraw concessions.Summarize, withdraw concessions. Limited EmpowermentLimited Empowerment Get more authority.Get more authority. Going Over Your HeadGoing Over Your Head I speak for my boss too.I speak for my boss too. SilenceSilence Summarize, silence.Summarize, silence. Last Minute DemandsLast Minute Demands Withdraw concessions.Withdraw concessions. Final Offer RejectedFinal Offer Rejected Modify offer, invent new options.Modify offer, invent new options.

PERSONAL ACTION PLANPERSONAL ACTION PLAN

Current skillsCurrent skills

Skills to work onSkills to work on

My goalsMy goals

My resourcesMy resources

Action planAction plan

NEGOTIATION SKILLSNEGOTIATION SKILLS PREPARINGPREPARING CONSIDERING OPPOSITION’S OBJECTIVESCONSIDERING OPPOSITION’S OBJECTIVES EXCHANGING INFORMATIONEXCHANGING INFORMATION LISTENING MORE and TALKING LESSLISTENING MORE and TALKING LESS OBSERVINGOBSERVING SUMMARIZINGSUMMARIZING QUESTIONINGQUESTIONING SIGNALLINGSIGNALLING RESPONDINGRESPONDING TESTING COMMITMENTTESTING COMMITMENT MAKING CONCESSIONSMAKING CONCESSIONS IMPOSING CONDITIONSIMPOSING CONDITIONS PROPOSINGPROPOSING PACKAGINGPACKAGING LINKINGLINKING BARGAININGBARGAINING CREATING NEW VARIABLESCREATING NEW VARIABLES USING ROLESUSING ROLES TEAMWORKTEAMWORK

SKILLED NEGOTIATORS SKILLED NEGOTIATORS

Explore Explore optionsoptions : up to 5 per issue : up to 5 per issue

Focus on Focus on common groundcommon ground : 38% of comments : 38% of comments

Consider the Consider the long termlong term : twice the comments : twice the comments

Set Set highhigh and and low low limits limits

Use Use issue planningissue planning rather than issue sequence rather than issue sequence