The Art of Principled Negotiation

Hello

Samuel Tait

Managing Partner, I/O (Innovation Consulting)

/in/samueltait

@samuel_tait

welcometo.io

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driving growth / through innovationwhere human-centred design meets strategy consulting

The Art of Principled Negotiation

Xi THINK Tuesday 23rd February, 2016

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The Negotiator

Tonight’s talk is on “The Negotiator” a film from 1998.

“In a desperate attempt to prove his innocence, a skilled police negotiator

accused of corruption and murder takes hostages in a government office to gain

the time he needs to find the truth.”

Starring: • Samuel L Jackson • Kevin Spacey

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We negotiate every day

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THE SMALL

THE BIGYour salary

Buying a house Prenup Projects at work

Who pays for dinner

The Art of Principled Negotiation

6 books to give away

You must return a completed statement of

agreement form to go into the draw

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Game #1 - Used Car

The scenario for this role-play involves a single issue: the price of a used car that’s for sale.

#1 = Buyer

#2 = Seller

Preparation = 3min

Negotiate = 7min

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What is

Negotiation?

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What I learnt at Wharton Business School

Wharton - Negotiations Course

The science and art of creating agreements

between two or more parties.

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What I learnt at Wharton Business SchoolWharton - Negotiations Course

The course has two purposes.

First, develop theories to guide negotiations. (That’s the science.)

Second, develop & sharpen negotiating skills. (That’s the art.)

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Negotiation

The process whereby two or more parties decide what to give and take in their relationship,

and through a process of mutual influence,

come to an agreed course of action.

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Principled Negotiation

Focuses on WIN-WIN OUTCOMES.

With any negotiation being judged by the following criteria

1. It should be a WISE AGREEMENT

2. It should be EFFICIENT

3. It should IMPROVE THE RELATIONSHIP

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#1 - Preparation is key

• Prepare rigorously

• Negotiating starts at home

• Research the situation

• Plan potential scenarios

• Role play scenarios

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#2 - Trust and rapport

•Build trust & rapport

•Your influence increases if people like you

•Quick wins upfront can earn trust

•Frame: In it together to solve the problem

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#3 - Listen and share

•Listen to what is being said

•Find out what it is they want

•Ask open ended questions

•Share what it is you want in exchange

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#4 - Value and trade

•Find out what you value differently

•Trade them

•eg how risky you think something is versus the other party

•The value / price YOU place on something is different to the other party

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#5 - Grow the pie

•If you can work together to grow the the pie (benefits), you’ll both go home with larger slices

•Trade things of unequal value

•Trust can create an environment for creative solutions

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#6 - Claim it

•Don’t hesitate to go after what you want

•If you don’t ask..you don’t get

•Aim for the high side of reasonable

•Know you deserve it

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#7 - Know thyself…

•temet nosce…and to thine own self be true

•Know your individual & personality strengths

•Know your weaknesses

•Forearmed is forewarned

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#8 - Understand power

•Power is how much value you bring to the table relative to how much value they bring to you

•Understand power and your position

•Are you in a more powerful or less powerful position?

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#9 - Find the ZOPA

•ZOPA = Zone Of Possible Agreement

•e.g. when a buyer’s maximum price is higher than the seller’s minimum price

•Asking questions can help you find out if there is a ZOPA

•No ZOPA / No DEAL36

#10 - Know your BATNA

•BATNA = Best Alternative To a Negotiated Agreement

•Always know your BATNA

•It will become your best friend

•The happier you are with the BATNA as an outcome the more power you have in the negotiation

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Game #2 - House Sale

The scenario for this role-play involves a single issue: the price of a house that’s for sale.

#1 = Seller

#2 = Buyer

Prep = 7min

Negotiate = 15min

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And that’s why it’s called

“Getting to Yes”

Over to you

Questions?

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cheers.44

Thank you!

welcometo.io Suite 807, 46 Kippax St Surry Hills, NSW, 2010

Call us. Phone: +61 (0)473 197 713 samuel.tait@welcometo.io