Negotiation Skills - Scottish Enterprise · Negotiation Skills If you give me one of ... Commit to...

Negotiation Skills

Scottish Investment Bank

Negotiation SkillsIf you give me one of your doggy treats, I’ll give you two ham bones.

Ok Bernie. I’m happy if you’re happy.

Adam SmithEconomist (1776)

Nobody ever saw a dog make a fair and deliberate exchange of one bone for another with another dog.

Welcome

Outcome Throughyour actions

Improve your confidence to negotiate effectively

Our objectivesAt the end of the session you will be able to:1. State the four ingredients of Ury and Fisher’s

principled negotiation2. Commit to one important action for each

ingredient3. Describe BATNA (Best Alternative to a Negotiated

Agreement) and its link to success4. Recognise four tips to supercharge your

confidence

Agenda

1. Principled negotiation

2. The negotiation

– Preparation

– Conversion – the dance

– Afterward

3. Supercharging our confidence

4. Summary

Sun Tzu

“The best general never has to fight.”

Copyright © 2014 Robertson Training Ltd

Principled negotiation1

Principled negotiation1. People: Separate the people from

the problem

2. Interests: Focus on interests, not positions

3. Options: Generate a variety of possibilities before deciding

4. Criteria: Use objective standard

People from problem

• It’s tough . . . but

– Negotiators are people first

– Discuss perceptions

– Face saving and ego

– Speak about yourself not about them

Interests not positions

Options: 14 April 1912

Options: 14 April 1912

Time Log

23:40 Lookouts telephone the bridge about seeing iceberg

23:41 Titanic hits the iceberg despite reversing and turning

23:47 Titanic officially stops

00:05 Captain Smith orders lifeboats uncovered

00:10 Wireless distress signals begin

00:45 First lifeboat launched

02:05 Last lifeboat lowered

02:18 Titanic snaps

02:20 Titanic fully sunk

03:30 Rescue ship Carpathian seen by survivors

04:10 First survivor picked up

Criteria1. You want a pay rise2. You want to sell your house3. You want a full time (37.5 hr a week) colleague on

a project4. You’d like a rent holiday of three months on your

new office5. You’d like £300 off the quoted price of the three

piece suite in the shop6. You would like a £1000 a day consultancy fee7. You would like to achieve £12 500 as a settlement

for your car, written off in a recent accident

Principled negotiation1. People: Separate the people from

the problem

2. Interests: Focus on interests, not positions

3. Options: Generate a variety of possibilities before deciding

4. Criteria: Use objective standard

“There is no such thing as good tactics for a poor strategy.”


Bill Ury

The negotiation2

The negotiation

1. Preparations

2. The conversation

3. Afterward

Preparations

Planning• Aim and objectives

– Substantive

– Relationship

• Strategy– Questions

– Concessions

• Each element– Ideal

– Good

– Live with (resistance)

• The people– Preferences

– History

• My case– Helps and hurts

• Me/My team– Mentally/Physically

– Strengths/Red Rags

– Roles

In teams

The leaderThe sweeperThe recorder

TeamsLeader

Makes the demands Talks the most

Chairs adjournments Gives concessions

Breaks off negotiations Asks the questions

Makes the offers Presents the decisions

Sweeper

Looks for concessions Looks for weaknesses

Protects the leader Focuses the negotiation

Looks for verbal and non verbal signals

Recorder

Takes notes

Summarises

Clarifies understanding

Keeps team informed on bargaining range

Feedbacks exact words where disagreement occurs

BATNA

Best

Alternative

To a

Negotiated

Agreement

Well defined. Time spent increases with the significance of the negotiation.

Uneven game?

• Tourists/James Bond

– Formal education

– Better dressed

– Cash rich

• Urchin

– Cost price

– Tourists buying signals

– Average sale price

– How long to get a sale

The conversation

Prepare

Explore Response

Conclude

Package

No

No

No

SignalExchange

Yes

Q & A

Statements generate resistance: questions generate answers.

Bill Ury

First seek to understand then to be understood.

Stephen Covey

Behaviour Comments Measured Difference

Average Skilled

IrritatorsComplimentary statements that favour one’s own position or offer, such as, “This is an excellent deal.”

Use per hour10.8 2.3

Counter proposalsImmediately countering with one’s own proposal, which the other party interprets as a blocking tactic and as being unreceptive to their suggestions, offers, propositions etc.

Frequency per hour3.1 1.7

Defend/Attack spiralsTaking an adversarial position and defending your actions by attacking the other party i.e. ‘You can’t blame us’. ‘It’s not our fault’; ‘You should have planned for this’.

Percentage of comments

6.3 1.9

Excessive use of arguments

Using too many arguments or giving too many reasons when trying to support a weak case.

Average number of reasons given to support their case

3.0 1.8

Emotional controlUsing emotionally charged statements rather than employing an element of formality. For example, rather than saying ‘I’m telling you’ we might say ‘Can I make a suggestion’.

Percentage of all behaviour preceded by an emotional

statement1.2 6.4

Testing for understanding

Checking if the recipient has understood the previous statement.Test Understanding

4.1 9.7

Summarising Summarising the main course covered so farSummarising4.2 7.5

Seeking information The unskilled negotiator asks significantly fewer questions than the skilled negotiator

Seeking information as a percentage of all behaviour

9.6 21.3

Stating feelingsRather than simply state their opinion ‘It will not work’ the skillednegotiator will say how they feel ‘I am worried’.

Giving internal information as a percentage of all behaviour

7.8 12.1

Tune in to

VHF

Talk the same language

VHF in action

What might a

Say?

In actionI see now

That looks right to me

I get the picture

I need to get it in perspective

I’m in the dark about this

That doesn’t ring any bells with me

Suddenly it clicked

Just listen to me

I hear what you say

Something tells me that’s the answer

That’s music to my ears

That feels right

I have a firm grip on the subject

It’s an intense problem

I need a concrete example

I find it difficult to handle

Signalling

• Gestures

• Statements

• Questions

Signalling

• Gestures

• Statements

• Questions

We have

never had

a ten year

pay back

Signalling

• Gestures

• Statements

• Questions

Why should

we accept

your

valuation?

Signalling

• As you keep them engaged– Body movements

– Voice tone

– Words and phrases• Suppose

• Perhaps

• Willing to consider

• If

• Maybe

Activity

The signalling game

What is the response or meaning?

Signal Response/meaning

"We don't normally

give a discount."

"When might you

give one?"

"We never give a

discount as big as

15%."

"Could you give us

a discount of

14.999999%?"


"I am not looking

for a figure below

£100,000."

This is the opening

position (a dance

move) — “What

might you be

looking for?”


"These are our

standard terms."

This implies there are

other terms. Find out

the non-standard terms.

“What circumstances

would allow you to offer

special ones?”


"At this stage

we are not

prepared to

sell that item."

Find out when and under

what circumstances they

would sell.

“What would you and I

need to do together so

that you would sell that

item?”


"We would find it

difficult to buy at

that price."

There isn't a "No" here. It

suggests you are close to

their figure — "At what

price would you be

prepared to buy?”

“What would make it

easier for you?”


"No. We couldn't

produce that amount

in such a short time."

"When could you do

it for then?"


Signals and proposals

• Become master of:

– If . . . then . . .

• Even trial proposals

– If perhaps . . . then we might

Exchange

• I will give you X if you give me Y

• Always conditional on a final agreement.

Afterward

AfterwardNegotiate

Review

Conclude for next

time

Take action

“Don’t deduce their intentionsfrom your fears.”


Bill Ury

Supercharge your

confidence3

Confidence1. Forensic planning2. Agreement on scope to act3. Effective BATNA4. Everyone knows their role5. Great questioning and responding6. Active listening7. Presence to take a break8. “Politeness Personified”9. Follow PIOC

Bill Ury

“Good negotiators listen far more than they talk.”


Summary4

Summary• Forensic preparation

– Strong BATNA

– Team plan

• The dance

– Stay resourceful

– Take your time

– Questions

– Use summaries and breaks (adjournments)

Negotiate

Review

Conclude for next

time

Take action

Our objectivesAt the end of the session you will be able to:1. State the four ingredients of Ury and Fisher’s

principled negotiation2. Commit to one important action for each

ingredient3. Describe BATNA (Best Alternative to a Negotiated

Agreement) and its link to success4. Recognise four tips to supercharge your

confidence

60

“People said I was lucky. It’s funny, cos the more I practised the luckier I got.”

Gary Player

Champion Golfer

Thank you

01786 447 [email protected]

Negotiation Skills - Scottish Enterprise · Negotiation Skills If you give me one of ... Commit to...

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