SISEKELO SUSTAINABILITY INSTITUTE

Learner Guide

Module:
Negotiation Skills
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SAQA ID 13948: Negotiate an agreement or deal in an authentic work situation ; NQF Level 4, 5 Credits
Table of Contents

Table of Contents
Programme Overview
4.1. Negotiation Styles
4.1.1. Belief-based Styles
4.1.2. The spectrum of Negotiation Styles:
4.1.3. Collaborative Negotiation
4.1.4. Professional styles
4.2. Kinds of decisions and strategies
4.2.1. Mediation and Arbitration
4.2.2. Competitive Negotiation
4.2.2. Balanced negotiation
4.3. The Three-stage Negotiation Process
4.4. The Negotiation Process
4.4.1. Know what you want
4.4.2. Know how you'll get there
4.4.3. Guess the same for them
4.4.4. Set up the meeting
4.4.5. Open
4.4.6. State your case
4.4.7. Listen to their case
4.4.8. Argue
4.4.9. Strengthen your argument
4.4.10. Explore
4.4.11. Discover areas of agreement and difference
4.4.12. Explore ways to reach agreement
4.4.13. Feel your way forward
4.4.14. Signal
4.4.15. Wait for their signal
4.4.16. Move towards concession
4.4.17. Identify agreeable trades
4.4.18. Make conditional proposals
4.4.18. Build complete packages
4.4.19. Close
4.4.20 Agree the details
4.4.21 Confirm the agreement
 4.4.22. Sustain
4.4.23. Keep your promises
4.4.24. Renegotiate as necessary
4.4.25 Specific things to do during negotiation.
4.5. Summary of Steps
4.6. Apply negotiation process
4.7. Skills of Negotiator
4.8. Negotiation Tactics
4.9. Negotiation Mistakes
These activities confirm the learners understanding of the content provided in the
learner guide. Learners can add to the information however the evidence required
relates to the information in Learner Guide unless otherwise stipulated. Learners should
not copy the content but rather summarise the information in their own words.
The emphasis is on understanding.
Programme Overview

Negotiation Skills
Unit Standard Alignment

This section is aligned to the following exit level outcomes, unit standard/s and specific
outcomes and critical cross field outcomes

Type USID Unit Standard Title NQF Credi

Level ts

Negotiate an agreement or deal in an authentic work

Core 13948 4 5
situation

Unit Standard and Specific Outcomes

Specific Outcome Assessment Criteria

1 Explain the need for negotiation
skills in business.
2 Explain the steps in the
negotiation process.
3 Apply the steps in the negotiation
process to an authentic work
situation.
1.1 Reasons why managers need negotiation skills
are indicated with reference to the changing
nature of the workplace and democratisation.
1.2 The kind of decisions that lower level
managers are required to negotiate is identified
with reference to the management structure of
organisation and labour legislation
2.1 The steps used in negotiation are named and
explained in terms of what is entailed at each
step
2.2 Reasons why negotiations fail are listed and an
indication is given of what negotiators can do
to facilitate a mutually satisfactory solution.
2.3 The abilities needed by skilled negotiators are
identified and an indication is given of how
each ability can contribute to the success or
failure of a negotiation and at what stage of the
negotiation each skill may be required.
3.1 The concepts of "favoured outcome',
"settlement point" and "point beyond which

4 Explain strategies that could be
used in negotiation
you cannot g" are explained for a selected
scenario
3.2 The disadvantages to each party for each
position are considered prior to meeting
3.3 Possible points that the other party might raise
are anticipated and a possible response to each
identified point is considered for the selected
scenario
3.4 A proposal is presented and a clear indication
is given of what is and what is not on the table
for a selected scenario
3.5 A point-by-point summary of the proposal is
compiled to ensure that both parties have a
common understanding of the nature and
extent of the proposal
3.6 Questions are asked to build common ground
and establish the existence of any hidden
agendas
3.7 Shared interests, opportunities for cooperation
and common principles are identified in order
to facilitate negotiation
3.8 A position is amended without sacrificing
fundamental interests for a selected scenario
3.9 Questions are asked for clarification and
explanation
3.10 Questions are asked to test understanding and
to summarise understanding of a position
3.11 Demands of the other party are analysed and a
concession is proposed for a selected scenario
3.12 The negotiation is closed for a selected
scenario.
4.1 Tactics that can be used to delay a negotiation
are described with examples.
4.2 Methods that can be used to break a deadlock
are explained with examples.
4.3 Different types of closure are identified and an
indication is given of when each is suitable

Learning Outcomes covered in this Section:

Learning Outcomes
● Explain the need for negotiation skills in business
● Identify the kinds of decisions lower level managers are required to make
● Describe the steps used in negotiation
● Discuss reasons why negotiations fail.
● Identify the skills required by a successful negotiator
● Apply the steps in the negotiation process to an authentic work situation.
 ● Analyse the advantages and disadvantages of both parties prior to negotiation
process
● Anticipate the possible points that the other party might raise
● Present a proposal and a clear indication is given of what is and what is not on the
table for a selected scenario
● Compile a point-by-point summary of the proposal to ensure that both parties have
a common understanding of the nature and extent of the proposal
● Ask questions to build common ground and establish the existence of any hidden
agendas
● Identify shared interests, opportunities for cooperation and common principles are
identified in order to facilitate negotiation
● Amend a position without sacrificing fundamental interests for a selected scenario
● Ask questions for clarification and explanation
● Ask questions to test understanding and to summarise understanding of a position
● Analyse demands of the other party and a concession is proposed for a selected
scenario
● Close the negotiation is closed for a selected scenario.
● Describe tactics that can be used to delay a negotiation, give examples.
● Explain methods that can be used to break a deadlock, demonstrate with examples.
● Identify different types of closure and an indication is given of when each is
suitable
This Section covers the following Critical Cross Field Outcomes (CCFO)

4.1. Negotiation Styles

Why Are Good Negotiation Skills Important?

Negotiation is something everybody is familiar with. It’s something you use all the time in your work as well
as in your personal life. Do your supervisors understand the importance of being a skilled negotiator and
how it will affect their success? Here are some examples to give your supervisors of when they will be
negotiating and why these skills are important for them.

Negotiation happens every day. For example, you negotiate with your boss so that you can hire an additional
employee. You negotiate with other supervisors to coordinate the operation of your departments and work
groups. You negotiate many issues with your employees from performance goals to vacation schedules. You
negotiate salaries with job candidates. And after work, you go home and negotiate with your spouse over
this and that and with your kids over chores and probably just about everything else.

The fact is that whether you’re aware of it or not, you spend a significant part of your day negotiating. That’s
why good negotiation skills are so important. Studies show that having good negotiation skills plays an
important role in your success as a supervisor and your potential for advancement.
Why? Being a good negotiator allows you to build, maintain, and improve important workplace relationships,
which is a very important part of being a successful supervisor. Additionally, being a good negotiator also
makes you more efficient. Instead of spending hours arguing with people and trying to force them to do
what you want, you can reach agreements, find solutions to tough problems, and keep work moving ahead
more easily and with less effort if you negotiate effectively. Finally, being a good negotiator helps you achieve
important goals and get what you need and want for yourself, your department, and the organization.
http://hr.blr.com/HR-news/HR-Administration/Communication/Why-Are-Good-Negotiation-Skills-Important/
#
Negotiation styles vary with the person, their beliefs and skills, as well as the general context in which they
occur.

Here are a number of different styles considered from different viewpoints.

4.1.1. Belief-based Styles

There is a common spectrum of negotiation that ranges from 1collaborative to competitive styles is
illustrated in the diagram below:

1
Reference : http://changingminds.org/disciplines/negotiation/styles/spectrum_negotiation.htm
4.1.2. The spectrum of Negotiation Styles:
● From concession to competition.
● Collaborative negotiation: Negotiating for win-win.
● Competitive negotiation: Negotiating for win-lose.
● Balanced negotiation: Walking between collaborative and competitive negotiation

Although negotiation styles can be classified as competitive or collaborative, in practice there are a range of
styles, based on the degree to which a person thinks about themselves or thinks about the other person.

Consideration for self

Considering yourself in negotiation is natural and reasonable, if you care little about the other person or the
relationship, then you will prioritize your needs actions above those of others.

Excessive consideration for self leads to aggression, intimidation and deception. Sometimes these are
considered normal and necessary and destroying the other person in some way may be a symbol of your
victory over them.

Consideration for others

Consideration for others will depend on your values, which are often based on your beliefs about people. In
particular, if you put yourself down (for example if you have low self-esteem) or you escalate the importance
of others too highly, then you will think considerably more about the other person and prioritize their needs
well above your own.

Excessive consideration for others leads to relentless concession, where you create a lose-win situation with
you as the loser. You may even lose elements of the relationship as giving away too much can just end up in
you losing respect. Some people like being the victim, but it is no way to conduct a negotiation.

A middle way

Between concession and competition lies balance, although in practice this may be more dynamic and
variable than may be expected. Thus, what should be a highly collaborative negotiation may become a
balanced negotiation, even with competitive elements. Shared values are commonly used, however, to
protect the relationship and ensure fair play. At worst, some third person is called in to ensure a reasonable
balance.

4.1.3. Collaborative Negotiation

Win-win

The competitive approach to negotiation assumes a fixed pie, zero-sum, win-lose situation. In collaborative
negotiation, it is assumed that the pie can be enlarged by finding things of value to both parties, thus
creating a win-win situation where both parties can leave the table feeling that they have gained something
of value.
Fair process

As humans we have a deep need for fairness, and when this does not happen, even if we emerge as winners
from a competitive negotiation, the result is not truly satisfying. The most comfortable result from a
negotiation happens when our needs are met, including the need for fairness.

Joint problem-solving

The collaborative approach to negotiation seeks to convert individual wants into a single problem and to
bring both parties together to work on solving this problem.

By converting individual positions and wants into separated problems, the people can be freed up from
jealous and personal attachment to their requirements so they can then take a more objective and equitable
position from which they can act in a more collaborative way.

Collaborative strategy

Being collaborative does not mean being weak and giving in. On the contrary, a collaborative approach seeks
to gain the best possible solution.

Transparency and trust

Whilst you may not give away all of your information, deceptive practices need to be curtailed if trust is to be
gained. A simple way of eliminating suspicion is to be open and transparent, giving information before it is
requested.

When the other person is competitive

The biggest dilemma occurs when the other person is acting competitively, and will try to take advantage of
your collaborative approach (possibly seeing it as a weakness).

The approach with aggressive others is to be assertive and adult rather than fall into the fight-or-flight
reaction, for example naming attempts at deception and showing your strength whilst offering an olive
branch.

A critical preparation for this is to have your fall-back alternative to a negotiated agreement ready, and to
show that you are prepared to use it.

Physical changes in fight and flight response

Fight or flight effects include:

● Our senses sharpening. Pupils dilate (open out) so we can see more clearly, even in
darkness. Our hairs stand on end, making us more sensitive to our environment (and
also making us appear larger, hopefully intimidating our opponent).
 ● The cardio-vascular system leaping into action, with the heart pump rate going from
one up to five gallons per minutes and our arteries constricting to maximize pressure
around the system whilst the veins open out to ease return of blood to the heart.
● The respiratory system joining in as the lungs, throat and nostrils open up and breathing
speeding up to get more air in the system so the increased blood flow can be
re-oxygenated. The blood carries oxygen to the muscles, allowing them to work harder.
Deeper breathing also helps us to scream more loudly!
● Fat from fatty cells and glucose from the liver being metabolized to create instant
energy.
● Blood vessels to the kidney and digestive system being constricted, effectively shutting
down systems that are not essential. A part of this effect is reduction of saliva in the
mouth. The bowels and bladder may also open out to reduce the need for other internal
actions (this might also dissuade our attackers!).
● Blood vessels to the skin being constricted reducing any potential blood loss. Sweat
glands also open, providing an external cooling liquid to our over-worked system. (This
makes the skin look pale and clammy).
● Endorphins, which are the body's natural pain killers, are released (when you are
fighting, you do not want be bothered with pain–-that can be put off until later.)

The natural judgment system is also turned down and more primitive responses take over–this is a time for
action rather than deep thought.

4.1.4. Professional styles

Professional styles are those uses by people who have a significant element of negotiation in their roles.
Here is a selection of different contexts in which such negotiation takes place.

● Industrial relations: Confrontational bargaining.

● Managing board: Together and competing.
● International: Diplomatic dancing.
● Political: Scheming horse-trading.
● Selling and buying: Professional sellers and buyers.
● Hostage: Emotional big-stakes exchanges.

Formative Assessment
Activity Type of WHAT TO DO
Number Activity
SP5/FA18 Explain the need for negotiation skills in business
☺ Identify the kinds of decisions lower level managers are
required to make
 Recall
Information

4.2. Kinds of decisions and strategies

Negotiation in industrial situations are typified by trade union negotiations where a team from the trade
union seeks to gain better pay and working conditions from a reluctant management.
Although many companies are more enlightened about such negotiations these days, the 'traditional'
confrontational methods are illustrative of a particular style and still may be found in many other
organizations.

Confrontation and competition

The typical industrial negotiation between trade unions and managers can be very confrontational and
competitive style.

Team negotiation

Both sides of the negotiation usually have multiple members on the team. The team is typically led by a lead
negotiator and supported by experts and people whose main job is to observe the other side and watch for
body language and other subtle signals.

The presence of other people can also create a sense of intimidation. This is exacerbated if they are
physically large, look scary and use aggressive body language.

Robust style

The standard opener is with the trade union making demands that have been determined through many
meetings and deliberations. They are usually very well prepared and have a clear concession strategy and
walk-away alternative (that typically involves strike action or other punishment).

Managers also may respond in kind, flatly refusing any possibility of pay rises or reducing hours or maybe
even requiring cuts in staff, pay or conditions to cope with downturns in business.

Powerful brinksmanship

The industrial negotiations are also characterized by overt use of power, threats and taking things to the
edge (and over).

The power of the membership

The basic weapon of employees is withdrawal of labor. Although the company could punish one person or
allow them to resign. However, the fact that trade union are representing a large number of people gives
them power, both in the mandate that they bring and in the potential consequences of failure to agree, for
example in taking strike action or 'working to rule'.

Managers also have a strong mandate in that their position: their more senior managers will have given
them a clear directive about what they can and cannot offer. Their basic weapon is continued employment as
provision of amenities and requirement that employees do specified work.

Argument and breakdown

Rather than gentle bargaining, the approach is often to play the game right up to the wire, squeezing the
maximum concessions out of the other side without a great deal of consideration for the relationship.
This typically includes abrasive argument and strong use of negative negotiation tactics. Negotiators may
dramatically walk out of the room and play a waiting or posturing game. In larger organizations particularly,
the press may be deliberately drawn into the game with each side pleading its case to the public at large
whilst journalists seek interesting angles for their stories.

4.2.1. Mediation and Arbitration

When relationships break down and trust has completely evaporated such that either or both sides refuse to
negotiate further, the only chance of resolution comes from the use of third parties.

There is a dilemma in using third parties as, for such arrangements to work, both sides of the negotiation
need to agree on who they will both trust. Independent organizations exist to carry out such services and
these may need to be interviewed by either side before they are hired.

Mediation

Mediators shuttle up and down between the two sides, impartially carrying messages and encouraging the
warring parties to find some place of agreement. The mediator may also coach the negotiators, showing how
their current position is unlikely to result in a desired resolution and that some movement is necessary.

Arbitration

If mediation does not work, then arbitrators may be engaged. This person listens to both sides and then tells
them what the solution will be. In order for this to work, both sides must first agree to be bound by whatever
the arbitrator decides. Generally, the arbitrator will look at similar cases in other circumstances as well as the
demands and constraints of both sides before making their final judgment.

4.2.2. Competitive Negotiation

In competitive negotiation, the approach is to treat the process as a competition that is to be won or lost.

Zero sums

The basic assumption of competitive negotiation is that it is a 'zero sum game'. That is, the people involved
believe that there is a fixed amount to be gained which both people desire, and if one person gains then the
other person loses. It is like arguing over a pie: if one person gets a piece of the pie then the other person
does not.

Win-lose

The outcome of zero-sum negotiation is defined in terms of winners and losers. One person gets what they
want and feels smug (or maybe a bit guilty) whilst the other person gets loses out and feels cheated or a
failure.

Substance only
In competitive negotiation, the substance of what is being traded is the only real concern, and dealings are
done in a hard and 'what I can get' way.

A way of thinking zero-sum is to translate everything into financial terms. Thus, for example, if you are
buying or selling a car, you think first in terms of its resale value. Thus the only real negotiable for many
competitive negotiators is price.

Unimportant relationship

In competitive negotiation, the relationship between the people is unimportant. They do not care about one
another or what the other thinks about them. For example, this may occur in one-off sales where 'caveat
emptor' is a key rule.

To show concern for the other is to show weakness that may be taken advantage of. This can lead to trickery
where false concern is shown, and reactions where any show of concern is perceived as likely trickery (and
can lead to attempts of two-faced double-dealing).

Competitive strategy

Competitive strategies that seek substantial gains focus either on hard exchange or

Hard exchange

In a hard exchange, what is being exchanged is clear and above-board and both sides agree to the deal.
There is no trickery or pressure and the players agree to the exchange, albeit with one person potentially
more satisfied than the other.

The hard exchange is like a fair fight. Both players accept the rules and play cleanly (although more for a
respect of the rules than a respect of the other person). This may be encouraged by potential punishment for
double dealing, such as the legislation that sellers may face.

Double dealing

The alternative method of competitive negotiation is to throw the rulebook out of the window and resort to
approaches such as aggression and deception. Either party may tell lies and use verbal or even physical
persuasive methods. We are all bound by internal values and the level of trickery or physicality used will vary
along a spectrum. Although we may find this distasteful, we all know that it happens and many of us have
been less than truthful in our negotiations.

4.2.2. Balanced negotiation

Summary of differences
There are a number of differences between Competitive and Collaborative negotiation, which are
summarized in the following table:
Characteristic Competitive approach Collaborative approach
Relationship Temporary Long-term
 Consideration Self Both parties
Atmosphere Distrust Trust
Focus Positions Interest
Aim to gain Advantage, concession Fair agreement
Information Concealed, power Shared, open
Strategy End justifies means Objective and fair rules
Tactics Coercion, tricks Stick to principles
Outcome Win-lose Win-win

The way between

Between competitive and collaborative negotiation is a narrow path where competitive elements highlight
win-lose elements and where collaborative concerns temper any Machiavellian tendencies.
It is in this grey zone between black and white where many real-life negotiations tread, as the participants
struggle between the need to achieve their more immediate substantive goals whilst also keeping within
social norms and personal values.
It is within this middle way that social norms can vary greatly. In some global cultures, it is acceptable, or
even expected, that negotiations are full of rude personal insults and outrageous lies, yet in other cultures,
even a hint of rudeness would cause the negotiation to be immediately called off. In fact, the insulting and
apparently highly competitive approach often works within strict social rules and, when the negotiation
concludes, the parties can act as friendly acquaintances again.
When either side of the negotiation table comes from a different negotiation culture, then the results can be
quite interesting. It can be entertaining, for example, to watch a polite (in their terms) Western person trying
to barter in an Eastern market. Even within national cultures, different social positions can lead to very
different styles.
The trick, then, is to first understand the other person's natural negotiating style and the degree of
movement into grey areas that they will expect or accept. When you have identified the style boundaries in
which they negotiate, then you can adapt your style to find an optimally effective solution.

2
4.3. The Three-stage Negotiation Process
The Three-stage negotiation process is a quick and easy method of reaching agreement in the many different
short situations you may find yourself in where the eight-stage negotiation process is too complex a process
for you.
A typical situation where a short negotiation is used includes domestic’s requests and retail purchases.
The three stages are simply:
● Open: Say what you want
● Bargain: Hammer out the deal
● Close: Agree and exchange

Open

Request
Say what you want from the other person. Keep your description clear and unambiguous. Make it clear
whether you want them to do something, allow you to do something, agree with something, just listen to
you, tell you something, and so on.
Explain

2
Reference:www.changingminds.org
It is often useful to explain why you want what you asked. This both helps the other person decide exactly
what to give you and also can act to persuade them.
When the request is difficult to make, it can be preferable to justify the request beforehand, showing that
you have a legitimate need. Early explanation of the problem you are trying to solve is also useful if you are
not very clear yourself exactly what is needed.
Offer
Tell them what you will do in exchange for them fulfilling your request. If they are doing you a favour, you can
still say how grateful you will be.
Sometimes the offer is to not do something -- for example when you make a threat to do something if they
do not comply with your request.
Example
Request: Can you please go to bed now, with no complaints.
Explain: You've got school in the morning, and you need your rest.
Offer: I don't want to get cross again.

Bargain

Probe
Listen to their response to your request, including any counter-requests that they make. Hear any resistance
that they offer (this can tell you a great deal about them).
Probe for details of what they want, why they want it, and why they may not want to comply with your
request.
If they initiated the negotiation, then you might arrive at the negotiation at this point. You should still listen
and probe as necessary. Do not move on to trading until you

Signal
Show that you are ready to negotiation by sending signals that you might change your request or agree to
some alternative arrangement. You can then wait for a signal back for them or, if it seems appropriate, go
straight to a trade.

Trade
Put together things that you want with things that they want and offer them as a possible package for the
other person to agree. If it looks like you're close to agreement, then move to closure.
Use trades to handle objections. Offer something in exchange for them withdrawing their reasons for not
agreeing with you.
Example
Probe: Why do you need to stay up? How long do you want to stay up?
Signal: Your bedtime should be ten o'clock, you know.
Trade: You can stay up another 30 minutes, but I want you up and out of bed by seven o'clock in the morning!
OK?

Close
Reference: http://changingminds.org/disciplines/negotiation/three-stage/close.htm

Propose
Make a proposal for the exchange, summarizing what you expect from the other and what you will give them
in return (if anything). Include everything that you believe is necessary and sufficient to achieve an
agreement.
Use closing techniques and other negotiation tactics as appropriate. Watch out for what the other person is
doing in this area and resist any tricks or handle opposition as needed.

Agree
Check to make sure the other person understands the deal and is ready to make the exchange. Summarize
the agreement as necessary. Be clear about whether the deal is reversible (for example in a shop, can you
take the goods back?
Handle opposition as needed, including appropriate use of objection-handling techniques.
Write down what has been agreed as necessary, for example in an email. Get what written confirmation you
need and delay the exchange if you need to check the details with somebody else.

Exchange
Complete the deal by making any exchanges as agreed. If the other side has said that they will do something
then they should do it.
Ensure you get receipts and other proof of exchange as necessary, particularly if these are needed to reverse
the agreement or claim later benefits, such as warranty returns.
As necessary, you can follow up later to ensure that they have completed all the things that they said that
they would do.
It's often a nice thing to do offer a little extra reward, such as thanks or praise for completing their
commitment.

Example
Propose: If I bring you a cup of lemon tea, will you go to bed now?
Agree: Right. You'll be in bed in ten minutes, when I'll bring the tea. OK?
Exchange: Here's the tea. Good to see you're tucked up well.

4.4. The Negotiation Process

This is a unique combination framework that puts together the best of many other approaches to
negotiation. It is particularly suited to more complex, higher-value and slower negotiations.
The diagram below provides you with a process.
This process is intended to help you negotiate, but do not use it blindly. It is not magic and is not a substitute
for thinking. If something does not seem to be working, try to figure out why and either fix the problem or
try something else.
Although there are commonalities across negotiations, each one is different and the greatest skill is to be
able to read the situation in the moment and adapt as appropriate.

The overall action in preparation is to be ready for every stage of the actual negotiation. In preparation, you
may walk through many scenarios and prepare for many eventualities.
How much time should you spend in preparation?

4.4.1. Know what you want

Understand needs
The first step in preparation is to know what you really want. This may seem obvious, but many negotiators
do not understand their deeper needs, let alone their goals for this negotiation.
It is often very helpful to differentiate between positions and interests, as this can give you significantly more
flexibility.
Know your priorities
Distinguish between your needs, wants and likes. Know what you really need and know what you are ready
to give away. Know what is more important and what is less important. Know what something is worth
generally and also worth to you.
● Two common areas of importance are time and money.
● How important are these to you?
● Are you desperate to conclude the negotiation today or could you let negotiations drag on
for a while.
● Is money a critical factor, or could you flex on this to find a good deal?
Generally speaking, the more flexibility you have, the greater the chance you have of reaching a satisfying
conclusion.
Identify your boundaries
What will be your opening offer? If it is too high, you might insult the other person or frighten then off. If it is
too low, you may lose out. To do this, you may need to consider the agreement zones that might occur.
Your opening offer will be based on a combination of the range of 'reasonable value' of the things that you
want, the situation of the other person and the dynamics that you want to cause within the negotiation
itself.
In practice, if the other person makes an opening offer first, which can be a useful action, you may revise
your opening offer. Nevertheless, it is still worth deciding where you will start.

4.4.2. Know how you'll get there

When you know what you want from the negotiation, the next step is to plan for how the negotiation might
operate in practice. Of course you cannot predict exactly how things will go, but this preparation will
significantly increase your chance of succeeding.
Count your resources
Look at everything you have at your disposal that you can bring to bear on this negotiation.
● What do you have that the other person might value?
● When buying something, what extra money could you bring to the table?
● Do you have people you can call on for support?
● Can you use time in any way?
Finding variables is a key activity that can significantly increase your options. Look to the variables in the
resources that you have.
● What could you increase or decrease?
● What could be expanded?
● What could be exchanged?
Develop your concession strategy
When you know where to start, you can now develop the concession strategy, whereby you will make
exchanges in order to gain final agreement. This will include the use of variables where you can made trades
in many different areas.
Develop your walk-away position
Having a walk-away alternative can be surprisingly useful and you should spend a proportionate amount of
time in developing your walk-away. Thus, if you are buying a house, you should spend a lot of time and
effort, whilst if you are persuading your son to go to bed, then a few moments thought can be a wise
investment.

4.4.3. Guess the same for them

After you have a good idea about your needs and priorities, repeat the exercise with regard to the other
person. If you can even half-guess what they want and what they are prepared to give away, then you is well
on the way to a successful negotiation.
Understand the person
Start by taking time to understand the person with whom you will be negotiating. What are their beliefs and
values? What is their personality and preferences? What are their goals, both overall and in the negotiation?
Assess their likely approach
Having understood your own approach, you should also consider how the other person will approach the
negotiation. This may be done after you have built your own strategy, although it can be useful to do this in
parallel. Thus, understand your needs and then consider their needs, and so on.
At the very least, do a final review of both your and their likely strategies. A good way of doing this is to write
them down on paper and place them side-by-side.

4.4.4. Set up the meeting

Finally, set up the negotiation meeting itself, if this is appropriate. If you can choose the time and the place,
you can add further control over the tone of the meeting.
Select the time and place
Choose a right time for the negotiation can be very useful. You may not want to negotiate when people are
not ready to give you the attention you need (although when they are distracted by other things can
sometimes be useful for getting compliance to a 'small' request).
Setting up location in which to negotiate, considering everything from geography to seating is also an
important activity. Our environment shapes how we feel and hence how we think.
Invite the other person
Finally, invite the other person to join you. In a surprise negotiation, you might invite them to a 'meeting' in
which you spring the negotiation on them, hoping to gain advantage from their confusion.
In many situations, however, and particularly where the relationship is important, then you may prefer to let
them know that this meeting is intended to reach an equitable agreement.
When the other person is hard to get time with, then you may need to book their time well ahead, which
itself can be something of a difficult negotiation.
Prepare yourself
Being personally prepared includes knowledge of the situation and others as described above. It also
includes mental and emotional preparation. If it is a big negotiation, then you may want to catch up on any
lost sleep or maybe take a day or two to wind down.
Preparation also includes your appearance. As necessary get your hair styled, buy new clothes and ensure
you are clean and well-groomed on the day. A smart appearance signals a smart mind, which can make all
the difference.

4.4.5. Open
The purpose of the opening stage of negotiation is to position yourself and your needs, letting the other
person know what you want, both as an outcome and in the process of negotiation.
The importance of opening
The first few seconds
The beginning of any relationship is critically important as each person sizes up the other, categorizing them
against stereotypes and other internal models. The negotiation thus effectively starts well before the talking
starts in earnest.
When meeting the other person, you should thus seek to create the desired impression right from the start.
If you want to negotiate collaboratively, then you might start with an agreeable and friendly greeting, whilst
for a competitive approach, you may take a strongly assertive or even aggressive position in order to
intimidate and dominate the other person.
Be confident
Whatever style you use, it is important to be confident and show that you know what you are doing and
where you are going. If you seek to be collaborative, then this encourages the other person to trust you. If
you intend to be competitive, it positions you as capable of doing whatever it takes.
A part of confidence does not need to feel apologetic about what you want. It can be useful to demonstrate
the need, but you should not use floppy language.
Who goes first?
A good question in all stages of the negotiation is 'who goes first?'
If you open first, then you are showing a lead and forcing the other person to follow. If you put a good case,
then you may upset the applecart for them, forcing them to try and counter your early initiative. Especially if
you have a good idea of the position they are going to take, you can support or disrupt it as you choose.
If you open second, then you have the opportunity to respond to whatever the other person says. If you are
smarter, you may upstage them. If you are competitive, you can nullify their position by the position that you
take.
Controlling the process includes making sure that you or the other person goes first as will suit you best. This
requires proactive and often subtle management of the situation.

4.4.6. State your case

Paint the context
The context around a negotiation provides information that justifies and explains the need. Thus, for
example, when selling your car, you might start by explaining how your wife is pregnant and will be giving up
work soon, thus setting the context for your explaining later how you cannot accept a low price (whilst also
justifying your need to sell the car and suggesting that it is not because it has any inherent problem).
Telling stories here can a useful way to help the other person understand and sympathize with your situation.
Be careful with this to legitimize your later arguments whilst not showing that you are in a weak negotiating
positions, for example that you are desperate to sell the car.
Also match the length of the story to the negotiation -- if it is a quick exchange, and then keep it to a few
words. If you are expecting to negotiate all day, then a somewhat longer explanatory preamble may well be
appropriate.
State the need
Explain what you need as a result of the contextual situation. Show that your need is real and legitimate.
Make it clear what you want from the other person.
In some situations this is clear and simple, whilst in others you may have multiple needs, for example if you
are negotiating an employment contract then there may be many terms and conditions to consider.
Positioning
In stating your case, you can take a position which you will later defend. This may be an initial position from
which you are prepared to move, although you may well state it as being a necessity (you can signal that you
will move from this position and bargain later).

4.4.7. Listen to their case

When it is your turn to listen, do so actively. Listening is not just being polite -- there are many reasons why
you should listen, especially in a negotiation. Showing respect and interest will get them to give you more
information, and in negotiation information really is power.
First, just shut up and listen
The first stage of listening is, basically, to listen without interruption. The only interaction you have with
them is active listening methods that encourage them to talk. You can pause them to paraphrase back what
you have heard and you can ask them for clarification, but keep such interruptions to a minimum.
This can be a difficult period, especially when you are longing to respond to some of the things they are
saying. But hold your horses -- if you dive off into a debate, you will miss what may well be very useful
information.
Then probe for understanding
When they have made their case, you can then ask deeper questions to probe for further information. If they
have left out areas that you might have expected them to cover, it may be because they are not comfortable
talking about this.
Sustain a gentle approach of interest, curiosity and general inquiry. If you make it sound like an audit or
inquisition, then they may well stop talking. Your goal is to make it easy for them to tell you more about their
situation.
Understand the person
Think about the person with whom you are negotiating. Listen to the inner person, discovering their beliefs,
values, preferences and schemas. Find out what power they have and how they might use it.
I can see that you do not take risks lightly...
Find what they really want
Understand how they prefer to satisfy their needs. Identify their interests and goals that underlie the
positions they are taking. When you know what is driving them, you will have many alternative routes to
satisfying them.
It looks like it's really important for you that you move before the new school term.

4.4.8. Argue
In the argument stage, the serious exchange of views begins. This can be uncomfortable as the goal is to
strengthen your own position whilst weakening the other person's position.
Erode their position
Respond to the positions and claims of their opening statements and subsequent arguments, pointing out
the limitations, falsehoods and irrelevancies. Depending on your approach, your attack on their position may
be aggressive, rational, empathetic or apologetic. Overall, you are seeking to refute their argument, and the
way you do this will set the tone for the rest of the negotiation.
Note that erosion of their position is effective only when they feel less certain or that they have less to
bargain with. Simply asserting that they are wrong may only serve to annoy them and make them more
determined.
Minimize benefits to you
If they are claiming that something they have is of value to you, you can show how what is on offer is not
that important. This is relatively easy to do as only you determine value of what you might get.
Sorry, sir. There is little call for these at the moment.
I don't really care about how it looks. I just want something to transport the family.
Weaken their truth
When they make assertions, question them more closely. Change probabilities. Show how things asserted as
always true are only sometimes true. Probe for the evidence behind asserted truths. Test the reasoning they
are using. Then use what you discover to undermine what they are proposing as unquestionable truth.
How do you know that? Have you attended every meeting this year?
The train may be more reliable than it was, but it is still late sometimes.
Manage their needs
When they tell of the things that they want from the negotiation and you would find it difficult to give them
this, then show how they cannot possibly get these or otherwise reduce what they will ask for. Show how
requirements are not legitimate. Indicate how they can get what they want elsewhere. Hint that what they
want is not yours to give.
I know you're seeking a bargain, but I am not allowed to discount the price.
There's no way you're going to get delivery today.
Remember also that their needs are what drive them, and if you believe that you can satisfy those needs
with reasonable economy, and then you may escalate these needs, telling them how important they are,
increasing their desperation to satisfy them. You can exchange satisfaction of their needs for satisfaction of
yours.
You're absolutely right. It is very important for you to reduce your hours.
Of course you want a decent car, sir. How could you hold your head up otherwise?

4.4.9. Strengthen your argument

As a counterpoint to reducing their power, you should be increasing the legitimacy and force of your own
argument, showing how it is right and proper that you get what you require.
Maximize the benefits for them
Hint at what they are going to get out of the deal. Get them thinking positively about your ideas. Push their
thinking out beyond having done the deal so they see how good it will be after agreement is reached.
If you get rid of this today you'll have much better space here.
Going to bed now will make you feel much better in the morning.
Strengthen your truth
Where you have stated something as true in your opening argument, add rationality and cause. Use clear
forms of reasoning that show how you are speaking the whole truth, and that anything else is falsehood.
Demonstrate objective evidence that proves your case. Show your impartiality by considering the
(weakened) arguments against your case.
I need the extra resource to complete the project on time, as this plan shows.
I asked finance to check the numbers and they do add up right.
Legitimize your needs
Show how your needs are allowed both in the formal legitimate sense (as appropriate) and also conform to
social rules. Demonstrate due diligence in the research you have done.
I have spoken with Bill and Ted and they both said this was the right thing to do.
I have checked with several sites on the internet to ensure a fair price.
Repel their attacks
When they try to erode your position with various tactics, respond firmly to these attempts. Show how you
know what they are doing. Turn the tactics around so they repel themselves. Turn attacks into compliments.
You're right, it seems useless. But when you look at it from the customer's viewpoint...
What is ridiculous is the price I'll accept. But only for today

4.4.10. Explore
So far, no agreements have been made, and early positioning may have made the way forward difficult to
see. Having established what you each want, however, you can now move towards one another, seeking a
way forward.
It is generally a mistake to go fast during a negotiation and taking time to explore can pay back significantly
later. Exploration not only gains you more information about the other person and their needs, it also builds
the relationship between you, making it easy to reach agreement.
Note that in a collaborative negotiation there may be limited arguing and significant exploring. Exploration
both requires and builds a degree of trust which, in a competitive context, may be borne more of the respect
gained by showing one's teeth in earlier stages.
 4.4.11. Discover areas of agreement and difference
In many negotiations it can be surprising how much both parties may agree. It is easy for areas of difference
to overshadow that the people involved are not that different after all.
Find areas of similarity
Particularly when you are far apart, a good first step in getting together is to find those things where you
agree with the other person. Finding agreement with the other person demonstrates similarity and hence
creates bonding with them. This may also be done during earlier stages.
Similarities need not be just around the negotiation. If you both have families, like the same kind of music or
have been to the same place on holiday, then you can use such similarities as a bridge across which you can
connect with the other person.
Do you have children? ... Yes, mine are teenagers, too. Tough, isn't it!
Find areas of agreement
When you are negotiating, the focus on what you want as opposed to what they want can make it seem like
you are miles apart, when in fact you may be quite near to an equitable solution.
Finding areas of agreement helps to shrink the areas where you have to negotiate. By saying 'we agree on
this and that', you can find the specific areas where negotiation is needed.
Well, at least we both want the children to do well at school -- the question seems to be more about what we
should do about it.
A good place to find agreement is in higher goals and social values. Few people will frame themselves as
'bad'. You may also find areas where neither of you are interested. In effect, these are also agreements -- at
least that they are not disagreements.
Let's look at the big picture: we both want the company to succeed, don't we?
Find areas of difference
When you know where you agree, then finding where you really disagree is easier. The fact that you agree
makes it easier to work together and accept areas of difference.
An effective way to enable others to accept differences is to accept the person, even though you do not
agree with what they want. At the very least, you can accept that they have the right to have different views
and wants to you.
A common source of difference is that is not always clear is that people are driven by fundamentally different
goals.
It looks like you want to reduce costs, whilst I need to ensure high quality.

4.4.12. Explore ways to reach agreement

Before you start bargaining it may well be helpful to explore with the other person the process by which you
may reach agreement.
Fair process
Although this is overkill in some situations, in others it is crucial to establish fair process before you start
hammering out the details. If the other person feels that you are being fair, then they are more likely to
agree with your suggestions as to how to proceed.
Fair criteria
In order to reach fair decisions, it is usually a good approach to find fair criteria by which equitable decisions
can be made.
Look to outcomes
It can be useful to start at the end, by discussing what a complete negotiation might be like. This may include
discussions of progress and emotions. If the relationship is important, it can be useful to explicitly exclude it
from the negotiation.
I want to ensure that if we agree, then we both feel good about the outcome.
If we reach agreement today, we will not have a complete contract, but we will be ready to hammer out the
final details next time.

4.4.13. Feel your way forward

When you start the more substantive parts of the negotiation, a continued sensitivity to the other person
and how close they are to making decisions is a very useful skill. Moving forward is often like a soft martial
art: you sense where the other person is and flow with and around them.
Seek their variables
Find the variables that they may trade with you and match them to your own variables. If you can help them
see the many options open to them, then you can help them meet many of their needs whilst encouraging
them to trade with you.
Would you be open to other modes of travel?
So, it's not the amount, but how fast you can get it that is a problem.
Manage your information
Rather than telling them everything at once, deal in information as well as substance. Release information in
order to receive information from them. Be aware of how they may use what you tell them to their
advantage.
Sorry, I can't tell you all of my plans right now but I can give you a high-level overview.
Information can be used to persuade as well just as inform. You can use social norms, for example, to nudge
them in the right direction.
I need the holiday as it is my wife's birthday and I want to take her out.
Keep the goal clear, but the route flexible
When you come up against resistance, it may be possible to find a way forward that is less costly to you.
Always know where you want to go, but be ready to find alternatives ways to get there. Not fighting is also
conceding and you may be able to use this as a trade.
I know that you don't like flying so if I book the train will you start a day earlier?

4.4.14. Signal
Signalling is a relatively short phase of activity in which (usually) both parties prepare to move from their
initial position. After early positions and explorations, signalling is a conciliatory move that indicates a
willingness to negotiate.
Show readiness to move
A signal is a subtle indicator to the other person that you may be willing to negotiate. This is seldom done
openly as this would contradict the opening and argument. Signalling is not making a verbal statement and
effectively saves face, providing an excuse to subsequently move from your original position (or to backtrack
if the other person is not ready to collaborate).

Qualify statements
Add qualifiers that indicate how you might just be persuaded to do something that you would not normally
do or that you may agree to something other than what you originally wanted.
I might be persuaded, but I'd have to think first.
I don't normally buy things on the same day.

Indicate possibility
Use words that indicate possibility, opening out the potential for a different future that you may have
painted in your opening statement.
I wonder if there is a way we can agree this?
There may be a way I could stay longer tomorrow.

Use open body language

Open body language sends even more subtle signals of readiness, with indications of welcome (such as open
arms) and relaxed, smiling face.
Body signalling can be enhanced by starting with closed body language and then moving to an open position
at the same time that you use verbal signalling. Use gestures that move in time with your signals. Match the
other person's movements to show empathy.

4.4.15. Wait for their signal

When you have signalled to the other person, the next step is to wait for them to signal in return.

Watch their non-verbal response to your signal

Watch their face when you signal. Are there signs of hope appearing? Do they seem to have recognized that
you have gone from arguing your case towards moving towards them?
Also watch their body language. When you signal, does their stance change? When you move from matching
their body language to a more open position, do they follow you?

Hear the signals

Listen for their verbal signals. Hear the tone of voice that they use. Is it more relaxed? Are they using
qualifiers and indicating possibility?

Do not concede

If they do not signal, it can be tempting to try something more overt, such as conceding on something. It can
seem that they are blind to signals and if you move to concession, then they will get this signal and concede
in return. But what you have actually done by this is to show that if you make a move and they do not
reciprocate, then you will give something more. This is simply encouragement for them to wait for more
concessions.
Perhaps I could reduce the price a bit.
...
Well, ok then, how about if I knocked 10% off?
...
20%?
Do not reward intransigence with concession. If they do not signal (and maybe they do lack the subtlety to
recognize signals), then first try signalling again. If this does not succeed, be more explicit: ask whether they
are ready to make some trades. If they say no, then you can probe for reasons why. If they refuse, then you
may start to deploy your walk-away.

4.4.16. Move towards concession

When you have got a signal that they might also be prepared to negotiate, then there may be a steady or
even more rapid movement towards offering concessions or
Respond to their signals

When they signal in return (or maybe they signalled first), respond by opening your body language further
and responding with a further encouraging signal. Show that you approve of their movement by rewarding
them with more attention and acceptance.
Frame togetherness
Start to frame the negotiation as a joint problem-solving situation, positioning the subsequent activity as
working together to find an equitable solution.
I think we're beginning to see eye-to-eye. All we need to do now is find some way of bridging

Package
In this stage, the goal is to build potential solutions. The final agreement is not yet being hammered out and
you are still dealing in possibilities. By sustaining an atmosphere of openness, you make it possible for both
you and them to consider alternatives exchanges without feeling obliged to complete the exchange.

4.4.17. Identify agreeable trades

In putting together potential agreements, start by looking for things that you can exchange and where they
might concede to you.

Trade in variables
When looking for things to exchange, find the variables of the things in which you are dealing. If you are
talking about action, consider when and where it will occur. If you are talking about money, consider who
pays what to whom when and how often. If you are dealing in physical items, consider size, quantity, weight
and other attributes.
Use other Kipling questions to find more variables. When the negotiation gets stuck, ask questions to
discover variables, which are almost invariably there. Variables can also include additional features and
items, such as the optional extras that a car salesperson might add to the package.

Use elegant negotiables

Your elegant negotiables are those things that you have that you do not value very highly, but the other
person finds particularly attractive. They are thus easy for you to give away but are valued by the other
person.
The danger with elegant negotiables is that you give them away without realizing that you can use them to
get something valuable in exchange. This is one reason why you should do lots of listening before diving into
making trades.
They, too have things that they will give away easily but which you value. Do not assume that just because
you want something that they will not give it away without demanding something significant in return.

Help them think

Use the Columbo technique and Socratic questioning to draw them out. Help them understand variables and
elegant negotiables.
Support them in problem-solving, clarifying the problem on which you are working together, identifying
causes and why things have happened, finding focus for resolution and creatively identifying possible
solutions.

4.4.18. Make conditional proposals

When discussing alternatives and offering concessions, always link what you are offering to something that
you want. You are thus dealing not in concessions but in exchanges.

If you...then I...

Note the difference in effect between asking 'If I...will you..?' and saying 'If you...then I...’
When you say 'If I...', you put the thought of you giving something into the other person's head, on which
they may gain some form of closure and expectation even before you reach the 'will you'. Saying 'will you'
also invites a negative response.
If I give you more money, will you work harder?
Saying 'If you...' puts the thought of the action into the person's head. The 'If' moderates this with a promise
of something in return. The whole sentence is a statement, rather than a question, which does not offer the
chance of refusal. Overall, it is much stronger.
If you work harder then I will give you more money.

Keep things open

You are not yet at the point of final agreement, so remember that nothing is certain until the ink is dry.
Beware of the personal-closure trap, whereby your assumption that an agreement has been made can lead
you into later problems.
Know what you really want, keeping your eye on your interests. Be consistently firm about these, whilst
being open to alternative ways of achieving them.
Keep the trading open, which may include discussing multiple contradictory exchanges as options that may
be taken up. If you have many such options, then you will be able to build more interlinked exchange
packages.
If the other side suggests something, do not reject it out of hand. Discuss it and point out shortcomings.
Then find ways, if you can, of using this idea in an actual trade. Generally seek to avoid outright refusals,
keeping things open and loose until you start to converge on specific packages.

4.4.18. Build complete packages

Packages are complete sets of trades, put together into coherent packages that may be agreed as a whole.

Build more complex trades

After you have identified several smaller trades, you can start building up towards more complex exchanges.
These may include addition of further depth to the existing trade or may add additional elements.
In an industrial relations negotiation, the basic trade of increase in working hours in exchange for higher pay
is augmented with detail of what work will be done and rest periods to be included.
In a domestic situation, the basic agreement of paying a child for doing housework is elaborated with specific
amounts being paid for specific jobs.

Assemble trades into packages

Trades can be subsequently built into larger packages that satisfy the interests of both sides in as equitable a
way as possible. This can be done incrementally, by adding smaller trades into an increasingly large package.
It can also be done as a jigsaw, assembling already-complex trades that are quite substantial in their own
right.
In the industrial relations negotiation, different agreements are made for people in different jobs and then
assembled into a larger package.
In the domestic situation, the parent asks for additional jobs to be done, linking them to other rewards such
as staying up late.
In building packages, see these from their viewpoint as well as yours. See how it forms a complete solution
to their situation, addressing their interests and appearing as a fair exchange.
Move steadily towards closure, tweaking what appears to be the final package with a few last exchanges and
sweeteners as appropriate.
The difference. I'm sure we can reach a good conclusion today.

4.4.19. Close
Move to closure

As your packaging reaches a complete solution, you can move towards the idea of closing on a final deal.

Signal readiness to close

Show your own readiness by using signals to indicate that you want to reach agreement. Use words like
'right' and 'ok'. Use ready body language that aligns with your words. Watch their response, and if they signal
in return, move further towards closure.
Ok then, it looks like we've a pretty good exchange here.
This is good. I think I can go with this.

Attempt closure

When things seem ready, you can use a trial close to nudge the other person closer to agreement.
Right, then, are we agreed?
Shall we sign, now?
If they do not seem ready, probe for reasons and return to packaging or handle objections as appropriate.

Move steadily and surely to close

Do not try to rush the close. It can be tempting when closure seems so near to jump to the end. Whilst
hurrying is a known method, it can also lead to the other person backing away.
4.4.20Agree the details
When they are ready to complete the deal, make sure that the door, once closed, is unlikely to be re-opened.

Summarize the exchange

A good thing to do at closure is to summarize what you believe has actually been agreed. This assures that
the other person also agrees and that there is a common understanding of who will do or give what.
So I will keep Mike off your back whilst you complete the design, but we'll need to ensure Cynthia has final
say, although I'll make sure she's in a good mood first.

Handle final objections and doubts

The realization of impending closure can cause people to panic in case they have forgotten something. This
may occur as sudden appearance of objections and other reasons why they might not want to complete the
deal. You can use objection-handling techniques to manage such situations.
If you want to be certain of their full agreement, watch their body language here. Any doubts will show in
how they move and particularly their tone of voice. If you suspect doubt, tell them what you see and ask if
they have any remaining concerns. Use of this is highly variable as, depending on the negotiation, uncovering
doubts may be very important or something to be avoided.
You look doubtful. Are you sure you want to do this now?

Handle last-minute tricks

Tricky tactics such as the quivering quill may be used just before the close as the other person attempts to
squeeze a few more drops of blood out of you. Handle opposition such as this with professional aplomb,
showing that you are immune to deception or coercion.

4.4.21Confirm the agreement

The final step of closure is to confirm the agreement and sign on the dotted line. 'It's not over until the fat
lady sings' is a common saying. In negotiation, it is not over until the ink is dry and the exchange has
irrevocably been made.

Shake hands

Although you may not literally shake hands, it can be a very effective thing to do at the point of agreement. It
symbolizes the closure and is such a powerful social symbol in many different cultures that the other side will
think twice about backing out.
Just offering your hand can be such a strong trigger that the other person will automatically shake your hand
without thinking. This can act as a forced close, but beware of later ramifications if they feel coerced.

Agree what you have agreed

Even when you have summarized what you have agreed and shaken hands, it is surprising what the other
person may think what they have offered or what they will get. A confirmation step that is often helpful is to
put into writing what you have agreed. This may be an email, a letter or a formal contract, depending on the
situation and the value of what is being exchanged. Even when negotiating with your children, writing down
the commitment and pinning on the wall can be surprisingly effective.

Sign the contract

The final stage in many negotiations is taking the irreversible step of legal commitment where you sign the
contract or hand over the money. You must be absolutely sure when you take this binding step, as must the
other person. If it is a big deal, then you may want your lawyer or buyer to go through the fine detail before
signing.
If you have hurried the previous stages, the other person may still back out at this step, but if you have
closed solidly and professionally, they will have no reason in their mind not to sign

4.4.22. Sustain
When the deal is closed and seems to be complete, the end may not yet be in sight. Many negotiations have
a future element, where the main agreement is for future action. 'There's many a slip twixt cup and lip', as
they say, and an earlier commitment might not be delivered as promised.
Sustaining commitment is thus about making sure that people stay closed and that what was agreed in the
Close stage stays agreed and gets delivered as promised.

Sustain their commitment

When commitments were made in the excitement and pressure of the negotiation, they may look a little less
attractive in the cold light of day. Particularly if there is a longer delay until the promises are completed, the
situation may change and the negotiated agreement may move from being rather attractive to being rather
unattractive. And sometimes commitment just wanes, all by itself. Understanding strong and weak
commitment is thus important.
There are many techniques for sustaining commitment, such as:
● Burning bridges: Ensure there is no way back.
● Evidence stream: Show them time and again that the change is happening.
● Golden handcuffs: Keep key people with delayed rewards.
● Involvement: Give them an important role.
● Reward alignment: Align rewards with desired behaviours.
● Rites of passage: Use formal rituals to confirm change.

4.4.23. Keep your promises

You too have made promises in the negotiation, which you must scrupulously keep. If you break promises,
you will likely cause betrayal effects and lose any commitment.
Remember Kano's needs: deliver basic needs solidly, performance needs carefully, and then add icing to the
cake with some excitement needs. These need not (and should not) be over the top. The formula is 'delight =
expectation + 1'. If you deliver just a little more than is expected, you can create a very happy and loyal
customer. 'Under-promise and over-deliver' is an effective motto.

4.4.24. Renegotiate as necessary

If the situation changes and the agreement is really not worth keeping in its current form, then rather than
pull out without saying anything, it is better to go and talk to the other party.
Where possible and appropriate, re-negotiation the deal, sealing commitment in a newer, more appropriate
agreement. If the other person also benefits from this, they will be doubly committed to the new
arrangements.

Formative Assessment

Activity Type of WHAT TO DO

Number Activity
SP5/FA19 ☺ Discuss reasons why negotiations fail.

Debate
4.4.25 Specific things to do during negotiation.

There are a number of specific activities that you may be doing before and during a negotiation. These are
given below:
● Location management: Many ways of getting the best place to negotiate.
● Researching the other side: Finding out who they are and how they will react.
● Finding variables: Seeking the many things that you can exchange.
● Finding fair criteria: Agreeing on how to agree.
● Guiding decisions: Helping them decide what you want.
● Handling opposition: When the other side gets negative.
● Isolating the issues: Finding the real problem.
● Prioritizing: Deciding what is more (and less) important.
● Developing your walk-away: Be ready to walk away with nothing.
● Deploying your walk-away: Steadily walking towards the door.

4.5. Summary of Steps

Phase I: Pre-bargaining Phase

1. Information: Learn as much as you can about the problem. What information do you need from
the other side?

2. Leverage Evaluation: Evaluate your leverage and the other party's leverage at the outset. This is important
because there may be a number of things you can do to improve your leverage or diminish the leverage of
the other side. What will you do to enhance your leverage?

3. Analysis: What are the issues?

4. Rapport: Establish rapport with your opponent(s). You need to determine early on if your opponents
are going to be cooperative; if not, consider employing a mediator as soon as practical.

5. Goals and expectations: Goals are one thing; expectations are something else.

6. Type of negotiation: What type of negotiation do you expect? Will this be highly competitive,
cooperative, or something unusual? Will you be negotiating face to face, by fax, through a mediator, or in
some other manner?

7. Budget: Every negotiation has its costs. Lawyers will avoid conflicts with their clients by discussing
budgets sooner rather than later. Many times there are a number of choices for enhancing leverage. For
example, you may enhance your leverage by taking several depositions, by adding parties to a law suit, by
serving subpoenas on witnesses, or by hiring experts. Unless your client has unlimited resources, you will
have to make some hard choices, which should be designed to give you the "most bang for your buck".

8. Plan: What's your negotiation plan?

Phase II: Bargaining Phase

1. Logistics: When, where, and how will you negotiate? This can be especially important in multi-party
cases.

2. Opening offers: What is the best offer you can justify? Should you make it, or wait to let another
party go first?

3. Subsequent offers: How should you adjust your negotiating plan when responding to unanticipated
moves by your opponent?

4. Tactics: What sort of tactics will you employ? What sort of tactics is your opponent using on you?

5. Concessions: What concessions will you make? How will you make them?

6. Resolution: What is the best way to resolve the problem? Is there an elegant solution? Be on constant
lookout for compromise and creative solutions.

Phase III: Closure Phase

1. Logistics: How and when will you close? At mediation or later on. Who will prepare the final
agreement?

2. Documentation: Prepare a closing checklist.

3. Emotional closure: It's one thing to end a legal dispute; it's another to address the underlying interests
and needs of the parties. If you neglect the latter, the agreement will probably not sustain.

4. Implementation: It's not over until it is over.

4.6. Apply negotiation process

Formative Assessment
Activity Type of WHAT TO DO
Number Activity
SP5/FA20 In groups of two practices preparing for negotiation and
practice negotiating

☺ Ask your fellow student to use the checklist criteria below

to give you feedback
Role-play

Basic Elements: Checklist

Yes No Comment
Phase I: Pre-bargaining Phase
● Information
● Leverage
● Issues
● Rapport
● Goals and expectations
● Type of negotiation
● Budget
● Plan
Phase II: Bargaining Phase
● Logistics
● Opening offer
● Subsequent offers
● Tactics
● Concessions
● Resolution
Phase III: Closure Phase
● Logistics
● Closing checklist
● Emotional closure
● Implementation
Use the following checklist to prepare yourself and to evaluate your skills

Basic Elements: Checklist

Phase I: Pre-bargaining Phase

● Information
● Leverage
● Issues
● Rapport
● Goals and expectations
● Type of negotiation
● Budget
● Plan
Phase II: Bargaining Phase
● Logistics
● Opening offer
● Subsequent offers
● Tactics
● Concessions
● Resolution
Phase III: Closure Phase
● Logistics
● Closing checklist
● Emotional closure
● Implementation

Negotiation Checklist

● Confirm with other parties (and mediator)

● Confirm logistics with client
Pack:
● Files: pleadings, evidence, current matters
● Books
● Checklists
● Laptop/printer/paper/ink cartridge
● Calculator
 ● Check for mediator?
● Trial notebook
● Calendar
● Notepad/pen/highlighter/post-it notes/file folders/misc.
Analysis:
● Review Chronology
● Review prior settlement proposals
● List Issues
● Strengths and weaknesses
● Review and organize docs
● Review discovery responses (incl. depos)
● Marshall Evidence re each issue
● Review legal research
● Negotiating Strategy
● Opening offer
● Concessions
● Closing strategy
Document preparation:
● Letter to mediator
● Update Inventory?
● Proposed Mediation Agreement/Decree
● Spreadsheets
● Disk (issues/spreadsheets/agreement)
● Questions
● Waiver of Discovery

4.7. Skills of Negotiator

"A negotiation is an interactive communication process that may take place whenever we want something
from someone else or another person wants something from us."
"Many attributes go into making a skillful negotiator, including such things as having a good memory, being
'quick verbally', and handling stress well. But effectiveness is as much a matter of attitude as it is of ability.

The best negotiators exhibit four key habits of thought that everyone, regardless of their style or IQ, can
adopt to improve their negotiation results...

● A willingness to prepare
● High expectations
● The patience to listen
● A commitment to personal integrity"
● Preparation
● Collecting and analyzing. information,
● Understanding your opponent,
● Exploring and developing other options,
● Good timing, and
● Patience.

4.8. Negotiation Tactics

In negotiation, there are many tactics that you may meet or use. They can be fair, foul or something in
between, depending on the competitive or collaborative style of the people involved and the seriousness of
the outcomes.

Auction: Set sellers or buyers against one another.

Bad publicity: Indicate bad publicity of not agreeing.
Better offer: indicate a better offer from the competition.
Better than that: Just say 'you’ll have to do better than that...'
Biased choice: Offering choices that already include your biases.
Big fish: Show you're the big fish and they could get eaten.
Bluff: Assert things that are not true.
Breaking it off: Walking away from the negotiation.
Brooklyn optician: price or negotiate each item.
Call girl: Ask to be paid up front.
Cards on the table: State your case, clearly and completely.
Change the negotiator: New person can reset the rules.
Changing standards: Change the benchmarks of good and bad.
Check the facts: Bring up new information you have found.
Control the agenda: And hence what is discussed.
Credentials: Show how clever you are.
Deadlines: Push them up against the wall of time.
Delays: Buying time and building tension.
Divide and conquer: Get them arguing with one another.
Doomsday: paint an overly black picture.
Double agent: Get one of their people on your side.
Dry well: Show you've nothing left to exchange.
Empty pockets: say you can't afford it, don't have it, etc.
Empty promises: Make promises that you know you will not keep.
Escalating demand: the more you get the more you require.
Expanding the Pie: Ensuring there's more for everyone.
Fair criteria: Set decisions criteria such that are perceived as fair.
False deadline: Time limitation on their action.
Faking: Letting them believe something about you that is not true.
Fame: Appeal to their need for esteem from others.
Flattery: Make them look good and then ask for concession.
Forced choice: Subtly nudging them toward your choice.
Funny money: Financial games, percentages, increments, etc.
Fragmentation: Breaking big things into lots of little things.
Good guy/bad guy: Hurt and rescue by people.
Highball: Sellers--start high and you can always go down.
Hire an expert: Get an expert negotiator or subject expert on your team.
Incremental conversion: Persuade one person at a time. Then use them as allies.
Interim trade: Make an exchange during negotiation that will not get into the final contract.
Lawyer: use survey results, facts, logic, and leading question.
Leaking: Let them find out 'secret' information.
Linking: Connect benefit and cost, strong and weak.
Log-rolling: Concede on low-priority items.
Lowball: Buyers--start low and you can always go up.
New issue: Introduce a new key issue during the negotiation.
New player: Another person who wants what you have appears on the scene.
Nibbling: constant adding of small requirements.
No authority: refuse to agree because you are not allowed to.
Non-negotiable: Things that cannot be negotiated.
Overwhelm: Cover them in requests or information.
Padding: Make unimportant things 'essential' then concede them.
Phasing: Offer to phase in/out the unpleasant bits.
Plant: A 'neutral' person who is really working for you.
Quivering quill: ask for concession just before signing.
Red herring: leave a false trail.
Russian Front: Two alternatives, one intimidating.
Reducing choice: Offering a limited set of options.
See you in court: Threatening to go to a higher or public forum.
Shotgun: Refusal to continue until a concession is gained.
Side Payments: Add a cash balance.
Slicing: Break one deal down into multiple smaller deals.
Split the difference: Offer to agree on a half-way position.
Take it or leave it: give only one option.
Trial balloon: Suggest a final solution and see if they bite.
Undiscussable: Things that cannot even be discussed.
War: Threaten extreme action.
Widows and orphans: show the effect on the weak and innocent.
Wince: repeat price loudly, then silence.

Aggressive body language

A significant cluster of body movements is used to signal aggression.

This is actually quite useful as it is seldom a good idea to get into a fight, even for powerful people. Fighting
can hurt you, even though you are pretty certain you will win. In addition, with adults, fighting is often
socially unacceptable and aggression through words and body language is all that may ever happen.

Threaten Facial signals

Much aggression can be shown in the face, from disapproving frowns and pursed lips to sneers and full
snarls. The eyes can be used to stare and hold the gaze for long period. They may also squint, preventing the
other person seeing where you are looking.

Attack signals
When somebody is about to attack, they give visual signal such as clenching of fists ready to strike and
lowering and spreading of the body for stability. They are also likely to give anger signs such as redness of the
face.

Exposing oneself
Exposing oneself to attack is also a form of aggression. It is saying 'Go on - I dare you. I will still win.' It can
include not looking at the other person, crotch displays, relaxing the body, turning away and so on.

Invasion
Invading the space of the other person in some way is an act of aggression that is equivalent to one country
invading another.

False friendship
Invasion is often done under the cloak of familiarity, where you act as if you are being friendly and move into
a space reserved for friends, but without being invited. This gives the other person a dilemma of whether to
repel a 'friendly' advance or to accept dominance of the other.

Approach
When you go inside the comfort zone of others without permission, you are effectively invading their
territory. The close you get, the greater your ability to have 'first strike', from which an opponent may not
recover.

Touching
Touching the person is another form of invasion. Even touching social touch zones such as arm and back can
be aggressive.

Gestures
Insulting gestures
There are many, many gestures that have the primary intent of insulting the other person and hence inciting
them to anger and a perhaps unwise battle. Single and double fingers pointed up, arm thrusts; chin tilts and
so on are used, although many of these do vary across cultures (which can make for hazardous accidental
movements when you are overseas).

Many gestures are sexual in nature, indicating that the other person should go away and fornicate, that you
(or someone else) are having sex with their partner, and so on.

Mock attacks

Gestures may include symbolic action that mimics actual attacks, including waving fingers (the beating
baton), shaking fists, and head-butts, leg-swinging and so on. This is saying 'Here is what I will do to you!'

Physical items may be used as substitutes, for example banging of tables and doors or throwing. Again, this is
saying 'This could be you!'

Sudden movements

All of these gestures may be done suddenly, signaling your level of aggression and testing the other person's
reactions.

Large gestures
The size of gestures may also be used to signal levels of aggression, from simple finger movements to whole
arm sweeps, sometimes even with exaggerated movements of the entire body.

4.9. Negotiation Mistakes

Negotiation is a difficult art as it requires managing, in real-time, both the other person's mind and your
own.

Here are a number of mistakes that negotiators can make (and what you can do about them).

Accepting positions:
Accepting statements:
Cornering them:
Hurrying:
Hurting the relationship:
Issue fixation:
Missing strengths:
Misunderstanding authority:
Misunderstanding power:
One solution:
Over-wanting:
Squeezing too much:
Talking too much:
Thinking in absolutes:
Win-lose:
Assuming the other person won't change their position.
Assuming what the other person says is wholly true.
Giving them no alternative but to fight.
Negotiating in haste (and repenting at leisure).
Getting what you want but making an enemy.
Getting stuck on one issue and missing greater possibilities.
Not realizing the strengths that you actually have.
Assuming that authority and power are synonymous.
Thinking one person has all the power.
Thinking there is only one possible solution.
Wanting something too much.
Trying to gain every last advantage.
Not gaining the power of information from others.
Assuming that there are only a few possibilities.
Assuming a fixed-pie, win-lose scenario.
 Formative Assessment
Activity Type of WHAT TO DO
Number Activity
SP5/FA21 ☺ Review this section of the learner guide. Summarise all the
key points.

Summarise
Key points
 Please complete the following Summative Assessment, remember these activities act as evidence towards your final
assessment to achieve competence against listed unit standards.

SP5/SA1 Summative Assessment

These activities confirm the learners understanding of the content provided in the learner guide. Learners can add to the
information however the evidence required relates to the information in Learner Guide unless otherwise stipulated. Learners
should not copy the content but rather summarise the information in their own words.

The emphasis is on understanding.

USID SO/AC Activity Type of What to do Reference to Evidence Requirements
No Activity ( Model Answers)
263434 3.2 1 Define supervision practices and explain Learners need to record the key points
how to use it in a new venture. relevant to question. Reference to Section
Explain the function of reporting lines. 3.7.1

Review
Information
263434 4.2 2 Describe what you need to consider when Learners are required to describe a process
4.3 designing measurement tools in order to and list what needs to be considered, how
measure the quality of the they will measure performance.
product/service in accordance with the
set standards.
Reference: Section 2.5 and 2.6.
Review
Information
120389 1.1 3 Define the term motivation. List and give Learner need to review the information in
examples of different types of motives, the learner guide section 3.1.
give examples of 3 categories of
motivation
120389 1.1 4 Analyse yourself list at least 5 different Learner can list any 5 motivational triggers.
personal motivational triggers Refer to section 3.2

Review
Information

120389 1.6 5 List 7 strategies that you can use in Reference section 3.12
4.4 business to motivate your employees
4.5
4.6

Review
Information
120389 2.1 6 Analyse the different motivational Reference section 3.5
theories, select two theories that you think
will be successful in a new business, and
explain why?

Review
Information
120389 2.2 7 Apply self-motivation skills to yourself. Reference section 3.7.1 and Section 3.7
4.6 Follow the steps required. Record your
goals, describe how you intent to achieve
it. Explain why you are committing to
these goals. Develop an action plan to take
Review action
Information
120389 2.3 8 Describe 10 different ways to motivate a Reference Section 3.5.1
4.1 team
4.5

Review
Information
120389 3.1 9 List typical problems related to motivating Section 3.7. Learners could also add some
in the workplace Describe how from their own experience
motivational problems can be solved

Review
Information
120389 3.3 10 Describe different leadership principles Section 3.7
and skills applied to motivating teams

Review
Information
120389 4.5 11 Describe how you will give employees Section 3.12
feedback on their performance.

Review
Information
120389 3.1 12 Describe how motivational problems can Learners can refer to section 3.7 however
be solved they can add from their own experience

Review
Information
13948 2.1 13 Describe the steps used in negotiation Learners can describe any one of the
3.1 processes in section 4.5.

Review
Information
13948 2.3 14 Identify the skills required by a successful Learners can describe any in section 4.7. The
negotiator learner must at least mention 5

Review
Information
13948 4.1 15 Describe tactics that can be used to delay a Learner need to list and describe at least 5
negotiation, give examples different tactics from Section 4.8.

Review
Information
13948 4.2 16 Explain methods that can be used to break Learners must describe at least 2 different
a deadlock, demonstrate with examples methods and give examples to illustrate the
methods

Review
Information
13948 2.2 17 Discuss the reasons why negotiations fail Learners should be able to give at least 5
reasons related to the process not
implemented Reference Section 3.4/3.5

Review
Information