Win Win Negotiating For Executives 9 23 09 Final

Win-Win Negotiating for Executives

Presented by

Greg Porto - Michael Garcia

September 23, 2009

ExecNet-St. Louis: “Executives Helping Executives”

http://www.jwterrill.com/index.html



Table of Contents

Overview of the Presentation

Keys to a Successful Negotiation

Common Negotiation Mistakes

How to Negotiate a Successful Offer

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Greg PortoManaging Director – Ion Partners [email protected]

Michael GarciaHuman Resources [email protected]

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The type of negotiation we are discussing today is give and take communication where:

Both sides come to a consensus and commit to an agreement

The agreement helps to preserve, and build upon, the relationship - no permanent damage to the other side …




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Greg Porto will discuss best practices as well as pitfalls in general negotiating

Greg is a Managing Director with Ion Partners LLC, a NYC based investment bank. He assists clients with mergers and acquisitions and capital offerings.

Michael Garcia will discuss negotiating job offers

Michael is a former Chief Human Resource Officer for a publicly traded healthcare company and a private KKR funded Start-Up. He is in transition.




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Before you start formal negotiation….

1. Have a positive, can-do mindset:

- Be in a calm, focused place – mentally, emotionally, physically

- Have clarity

- to see the facts – from both your and the other side’s perspective

- to see the opportunities and challenges

- Fundamentally believe you’ll strike a good deal which benefits both parties

- Visualize success




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Before you start formal negotiation….

2. Answer these questions in writing:

- What specific outcomes do you hope to achieve and why?

- What outcomes would you like to achieve but can live without?

- Given your desired outcomes, what will your opening positions/requests be?

- What will you tell the other side you need, but can readily offer as a bargaining chip?

- What are your alternatives to an agreement?




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Before you start formal negotiation (cont’d)….

3. Put yourself in the other side’s shoes:

Based on preliminary discussions with, and your knowledge of, the other side write out:

- What are their desired outcomes and why?

- Given their desired outcomes, what will their opening positions be?

- What will they ask for that’s not critical?

- What are their alternatives to an agreement?

- Focus on underlying needs not positions

- Repeat this exercise as you get more information and throughout the negotiation




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Before you start formal negotiation (cont’d)….

4. Work through scenarios in writing

- Write out ‘What-if’ and ‘Win-Win’ scenarios

- How can you get what you want while satisfying their needs?

- Repeat this exercise as you get more information and throughout the negotiation




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Before you start formal negotiation (cont’d)…

5. Practice beforehand:

- In front of mirror (facial expression, body language, tone of voice, clothes); videotape yourself

- Role play with a colleague, friend or your spouse

- Recognize the power of presence

6. Define the negotiation framework with the other side before you begin:

- Identify the players - make sure parties have proper authority to negotiate

- Define primary and secondary issues to be negotiated

- Determine negotiation timing, venue(s)




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During the negotiation….

7. Ask outstanding questions / be clear in your communication

- Formulate your questions ahead of time

- In a negotiation, the side that frames the questions has an enormous advantage

- Ask straightforward questions and don’t make the other side feel inferior

- Listen carefully to what they say as well as what they do not say

- Clearly ask for what you want - if you don’t ask, you don’t get

8. Revisit the questions in #3 and #4 regarding the other side and what-if scenarios




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During the negotiation (cont’d)….

9. Rely on facts, not assumptions

- If facts warrant you to change your opinion, then change your opinion

- Never become emotionally wed to your opinion

10. Present a consistent communication style

- Fluctuating emotions/moods elicit mistrust or may make you appear tentative

- Your style should be complementary to the other side’s

- Know your interpersonal strengths and weaknesses




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1.Talking instead of listening

- Let the other side talk freely, confirm their priorities and the facts as they see them

- Listen for where there is agreement/disagreement

- Let the facts get out before you start drawing conclusions

2.Caring more about enlightening the other side than striking a deal

- Act like a ‘closer’ not a ‘teacher’

- There is no prize for being right and not reaching an agreement

3.Looking for answers before you have identified all the issues/questions

- Take the time to frame out the issues/questions

- Take care not to overlook or ignore key issues




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4. Assuming the other side communicates like you do

- Take into account style and cultural differences in communication

5. Not taking a ‘time out’ or walking away when you should

- Taking a time out, walking away and saying ‘no’ are not giving up, they are strategic negotiating tools. You can always re-engage.

- Sometimes agreement is not meant to be – in this case, moving on to find a solution by pursuing a different alternative is the most constructive course




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Finally……

Make Friends and Create Solutions!!

- Keep the Substance (facts) of the negotiation objective

- Keep the Form (communication style) of the negotiation personable

“ All things being equal, people want to do business with their friends.All things being not quite so equal, people STILL want to do business with their friends.”

- Jeffrey Gitomer




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Negotiating with a Prospective Company


Has the market changed the rules of negotiating?

• Mostly yes … even if it is only temporary.

• The availability of labor and talent has changed the market.

• The current market has depressed and compressed salaries.

• High degree of competition per position.

• Companies are now looking to upgrade and find the “perfect fit” candidate.

• Budgets are more tight and tenuous.


Negotiating starts with your first interaction.

• What you tell your perspective employer early on does matter.

• Determine your specific level and salary target (be realistic).

• Do not give mixed messages.

• My target salary depends on several factors and money is not on my top three:

1. Good organization and Culture2. A good team and boss3. An ability to make a positive difference and

contribute to Company success.


Good Ideas and Rules of thumb

• Your number one objective is to get and offer!• Show and tell your enthusiasm.• Being able to do the job is important… being liked and

creating good chemistry with your interviewers is more important.

• Do not talk to much• Be still / silent• Be consultative in your style—Identify their needs and figure

out how you can help them.• It is always better to have competing interested parties as a

way to increase offers.


A walk in their shoes helps us understand!

• Companies worry about internal equity and compression problems.

• You should target an offer between the 40th and 75th percentile.

• You do not want too low or too high of an offer.• Ask – “Where will I fit in percentile wise with others on my

team and others performing similar roles?”• Ask about their flexibility.• Ask – “So I better understand the offer – what variables are

impacting this offer?”• Ask – “Is this the best offer you are able to make?”• Ask about their flexibility.• Negotiations that are too tough may cause harm after your

start or cause a removal of an offer.


Please hire me! – Tactics

• Position all negotiations in a positive, I am very interested in the job; help me understand the offer angle.

• Present yourself in a prepared, organized, positive, very likable manner.

• State: “I am open on compensation but want to ensure I receive a competitive offer.”


Please Hire Me! – Tactics

Prepare and show them a “T – Chart” in order to show why it makes sense to hire you.

Key Job Requirements Experience Examples



• Start any negotiations by telling the Company your strong interest in the position.

• Follow-up by telling the Company you need help understanding the offer… specifically the compensation package.

• Speak in person or by phone when discussing salary negotiations. NEVER BY EMAIL!

• Allow them time to consider your concern – silence is wisdom.

• Always stay positive during negotiations.



• Understand the full scope of the total cash and non cash offer AND the opportunity.

• It is OK to be creative and discuss goal oriented cash awards – keep them simple.

• Target a salary range

• Know your market for your position.

• Always stay honest.

• If appropriate – explain why you might consider taking less and why you would stay. Would you be willing to make a long term commitment?


Navigating the tough questions

• What did you make at _______?

• What is the least you would take?

• Tell me about your salary history?

• You are too high level/salary for _________?


When to accept / not accept

• Target a salary between the 40th and 75th percentile of the prospective internal group.

• Consider opportunities for progression.

Does the offer meet your “important” criteria?

• Will you be able to drive company success?

• Will your boss and team be reasonably good people to work with?

• Avoid the trap of grabbing a job and creating a choppy resume.

• The current market creates a little air cover for weak moves.


Some factors to consider:

• Your financial situation

• Family support

• Industry

• Job vs. Career moves

• Who will you work for?

• Your true goals

• Do not go against your instincts!


Selling short

Role Play

Questions and Answers


Win Win Negotiating For Executives 9 23 09 Final

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