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Transcript of Negotiation Strategies and Tactics. 6.7_2 Evolution of Negotiation “A Plan for Success” n Give...
6.7_2
Evolution of Negotiation “A Plan for Success”
Give and Take Dr. Chester Karrass
Getting to Yes Fisher and Ury
Difficult Conversations Stone, Patton and Heen
6.7_3
Give and Take“Power Tactics”
Guidelines
Original Negotiation Encyclopedia
Power Assessment Negotiation Traits Planning Negotiation Modes Buyer/Seller Satisfaction Tactics and Countermeasures Aspiration Level Concessions
Messages
Understand Your Sources of Power
Planning Pays Off Profit is a Gain in Satisfaction Aim Higher - You Come Out
Better Always Make Assumptions,
but . . . Change the Time and Shape
of the Money
6.7_4
Getting to Yes“Joint Problem Solving”
Guidelines
Focus on Common Interests, not Differing Positions
Invent Options for Mutual Gain
Use Power of Independent Standards
Always Develop your BATNA Separate the People from the
Problems
Messages
Negotiation is Like Playing Frisbee
Convert Age of Me to Era of We Key is Mutually Acceptable
Conflict Resolution Try Side-by-Side Problem
Solving There is Always a Better Deal for
Both Parties Learn How to be a Fly on the
Wall
6.7_5
Getting to Yes“Change the Game”
Soft Hard PrinciplesParticipants are friends Participants are adversaries Participants are problem-solvers
The goal is agreement The goal is victory The goal is a wise outcome reached efficientlyand amicably
Make concessions to cultivate Demand concessions as a condition ofthe relationship
SEPARATE THE PEOPLE FROM THE PROBLEM
Be soft on the people and the problem Be hard on the problem and the people Be soft on the people, hard on the problemTrust others Distrust others Proceed independent of trust
Change position easily Dig into your position FOCUS ON INTERESTS, NOT PROBLEMS
Make offers Make threats Explore interest
Disclose your bottom line Mislead as to your bottom line Avoid having a bottom line
Accept one-sided losses to reachagreements
Demand one-sided gains as the price ofagreement
INVENT OPTIONS FOR MUTUAL GAIN
Search for the single answer: the oneTHEY will accept
Search for the single answer: the oneYOU will accept
Develop multiple options to choose from;decide later
Insist on agreement Insist on your position INSIST ON USING OBJECTIVE CRITERIA
Try to avoid a contest of will Try to win a contest of will Try to reach a result based on standardsindependent of will.
Yield to pressure Apply pressure Reason and be open to reason; yield toprinciple, not pressure
Problem SolutionPositional Bargaining: Which Game Should You Play? Change the Game-Negotiate on the Merits
6.7_6
Difficult Conversations“Create a Learning Conversation”
Guidelines
Sort Out Three ConversationsThe “What Happened” ConversationThe “Feelings” ConversationThe “Identity” Conversation
Shift to a Learning Stance, a Learning Conversation
Sincere Listening Works (Help Me Understand) Open with Self Confident
Expression Begin with the Third Story
(Your Story, Other Person’s Story, and the Invisible Third Story)
Messages
Explore Each Other’s Stories Learn to be Curious Abandon Blame Map the Contribution System Feelings Matter Acknowledge Feelings Ground Your Identity . . .
Ask Yourself What’s at Stake Manage Your Internal Voice Join Together as partners, Sort
Out the Situation Together
6.7_7
Difficult Conversations“How to Discuss What Matters Most”
A Battle of Messages
Assumption: I know all I need to know to understand what happened
Goal: Persuade them I’m right.
Assumption: I know what they intended.
Goal: Let them know what they did was wrong.
Assumption: It’s all their fault. (Or it’s all my fault.)
Goal: Get them to admit blame and take responsibility for making amends.
A Learning Conversation
Assumption: Each of us is bringing different information and perceptions to the table. There are likely to be important things that each of us doesn’t know.
Goal: Explore each other’s stories: how we understand the situation and why.
Assumption: I know what I intended, and the impact their actions had on me. I don’t and can’t know what’s in their head.
Goal: Share the impact on me, and find out what they were thinking. Also find out what impact I’m having on them.
Assumption: We have probably both contributed to this mess.
Goal: Understand the contribution system: how our actions interact to produce this result.
The “What Happened?” ConversationChallenge: The Situation is more complex than either person can see.
6.7_8
Difficult Conversations“How to Discuss What Matters Most”
A Battle of Messages
Assumption: Feelings are irrelevant and wouldn’t be helpful to share. (Or, my feelings are their fault and they need to hear about them.)
Goal: Avoid talking about feelings.
(Or, let’em have it!)
A Learning Conversation
Assumption: Feelings are at the heart of the situation. Feelings are usually complex. I may have to dig a bit to understand my feelings.
Goal: Address feelings (mine and their) without judgements or attributions. Acknowledge feelings before problem-solving.
The “Feelings” ConversationChallenge: The Situation is emotionally charged
6.7_9
Difficult Conversations“How to Discuss What Matters Most”
A Battle of Messages
Assumption: I’m competent or incompetent, good or bad, lovable or unlovable. There is no in-between.
Goal: Protect my all-or-nothing self-image
A Learning Conversation
Assumption: There may be a lot at stake psychologically for both of us. Each of us is complex, neither of us is perfect.
Goal: Understand the identity issues on the line for each of us. Build a more complex self-image to maintain my balance better.
The “Identity” ConversationChallenge: The Situation threatens our identity
6.7_10
Negotiation Lessons Learned
View negotiation as a long process Map objectives, strategies and tactics Create time to plan and prepare Select appropriate model and style Spend time in the details Learn to be self-confident Adopt challenges and expectations Listen and Learn Represent all interested parties at table Acquire a negotiation toolbox
(Tactics, Caucus, Relationships, etc.)
6.7_11
Evolution of Negotiation and Conflict Resolution
1970 to 1985
1985 to 2000
2000 to _____
What Tools do you What Tools do you Carry in Your Carry in Your Negotiation Toolbox?Negotiation Toolbox?
Power
Side by SideProblem Solving
A LearningConversation
6.7_12
What Tools Do You Carry in Your Negotiation Toolbox?
Fill Your Toolbox Be Tough, But Be Fair Karrass
Win/Lose Take It or Leave
It Self-Confidence Power Preparation Invent Options Strategy Common
Interests Fly on the Wall
Aim Higher - You Come Out Better
Body Language Planning Traits Listen Bogey P.O. # Options Find the Better
Deal Nibble
Make Love Research Brainstorming Ethics Satisfaction Strategic
Partners Caucus BATNA? Tactics Electronic
Commerce
Long-Term Agreements
Cost Drivers GTY Sharing Standards Make War Relationships Continuous
Improvement Separate
People/Issues
6.7_13
Key Negotiation Activities
Prepare yourself and your team
Know the other party Know the big picture Identify objectives Prioritize objection Create options Select fair standards Examine alternatives Select your strategy,
tactics and counter tactics
Develop a solid and approved team negotiation plan
Prepare the negotiation memorandum
Send the memorandum to the other party
Offer to write the contract Prepare the contract Prepare negotiation results
summary Obtain required reviews
and approvals Send the contract tot he
other party for signature Provide copies of the
contract to affected organizations
Document lessons learned Prepare for
implementation
Planning the Negotiation
Determine who has authority
Prepare the facility Use an agenda Introduce the team Set the right tone Exchange information Focus on objectives Use strategy, tactics and
counter tactics Make counter offers Document the
agreement or know when to walk away
Conducting the Negotiation
Documenting the Negotiation and Forming the Contract
6.7_14
Negotiation Best Practices
Understand that contract negotiation is a process, usually involving a team effort
Select and train highly skilled negotiators to lead the contract negotiation process
Know market and industry practices Prepare yourself and your team Know the other party Know the big picture Identify and prioritize objectives Create options --be flexible in your planning Examine alternatives Select your negotiation strategy, tactics and counter tactics Develop a solid and approved team negotiation plan Determine who has the authority to negotiate Prepare the negotiation facility at your location or at a neutral site Use an agenda during contract negotiation
BestPractices
6.7_15
Negotiation Best Practices
Set the right tone at the start of the negotiation Maintain your focus on your objectives Use interim summaries to keep on track Do not be too predictable in your tactics Document your agreement throughout the process Know when to walk away Offer to write the contract Prepare a negotiation results summary Obtain required reviews and approvals Provide copies of the contract to all affected parties Document negotiation lessons learned and best practices Prepare a transition plan for contract administration Understand that everything affects price Understand that Ts and Cs have cost, risk and value Tailor Ts and Cs to the deal, but understand the financial effects on price and
profitability Know what is negotiable and what is not
BestPractices