Negotiating with

Influence and
Persuasion towards
a Win-Win Situation

Training| VigneswaranMBEM| Date 9 – 10 October 2023

Section One: Getting Started

Assumptions:
Government or Business
discussion

Goal: _____________ In Reality: Discussion

____________________ over food, salary,
____________________ household chores

Workshop:
___________________
___________________
Workshop Objectives
By the end of this workshop, participants will be able to:
▪ Understand the basic types of negotiations and the phases
required for success.
▪ Understand the concepts: WATNA, BATNA, WAP, and
ZOPA
▪ Complete the groundwork for negotiation
▪ Identify what information to share and what to keep to
yourself
▪ Basic bargaining techniques
▪ Identifying mutual gain strategies
▪ Reach consensus and set the terms of agreement
▪ Deal with personal attacks and other difficult issues
▪ How to use negotiating processes in our everyday life
▪ How to negotiate on behalf of someone else
 Distributive or Integrative Negotiations
• Less interested in forming a
Integrative
Distributive relationship
• ________________________
________________________
• Trying to extract information
• ________________________
________________________
• Negotiations are much more
cooperative
• Problem solving w/out giving
up something important
• ________________________
________________________
• ________________________
________________________
• ________________________
________________________
The Boeing-Airbus Dispute
This case study is based on the long-running trade dispute between the world’s two
largest aircraft manufacturers, Boeing (U.S.) and Airbus (EU). The dispute began in
2004, when the U.S. filed a complaint with the World Trade Organization (WTO)
accusing the EU of providing illegal subsidies to Airbus. The EU responded by filing a
counter-complaint against the U.S. for subsidizing Boeing. Both sides claimed that the
other’s subsidies distorted the market and harmed their interests.

The WTO ruled that both parties had violated trade rules and ordered them to end their
subsidies. However, neither side complied fully with the rulings and continued to
challenge each other’s actions. The dispute escalated over the years, involving multiple
rounds of litigation, arbitration, and retaliation.

The Boeing-Airbus dispute is an example of a distributive negotiation, where the parties

are competing over a fixed pie of resources and benefits. Both sides have strong
incentives to protect their domestic industries and national interests and are reluctant to
make concessions or cooperate with each other. According to some estimates, the
dispute has cost both sides more than $100 billion in lost sales and market
opportunities.
 Phases of Negotiation
▪ Exchanging Information
▪ Bargaining
▪ Closing

Defining their
__________ __________, __________ Work to
for the __________, to be __________
negotiation and addressed __________
_________
Section Three: It’s all in the Preparation
Before you begin:
▪ What it is you want to __________
▪ What you __________
▪ What you will __________
▪ What you consider _______________
▪ Key: _______________ and a _______________
Understanding Your WATNA and BATNA
• Before you enter into negotiation, you need to consider
what would happen if the negotiation did not take place?
• WATNA: Worst Alternative To a Negotiated Agreement.
• BATNA: Best Alternative To a Negotiated Agreement.

Worst Outcome

• You will be willing to • You will NOT be

________________________ ________________________
________________________ ________________________

Best Outcome

• You will NOT be willing to • You will be willing to

________________________ ________________________
________________________ ________________________
Importance of BATNA

_____________ if
negotiations Negotiating
_____ _______
__________

Determines the
_________ price
you are ________
to ________
Illustration of BATNA
Colin needs a car and is negotiating with Tom to purchase his car. Tom
offers to sell his car to Colin for RM10,000. Colin scours through
Mudah.my and finds a similar car to which he assigns a dollar value of
RM7,500. Colin’s BATNA is RM7,500 – if Tom does not offer a price
lower than RM7,500+RM500, Colin will consider his best alternative to a
negotiated agreement. Colin is willing to pay up to $8,000 for the car but
would ideally want to pay lesser than $7,500 only.
_____ = RM6,800 = ___ _____ = RM10,000

Seller’s Settlement Range

_____
Buyer’s Settlement Range

_____ = RM7,500 ___ = RM8,000 _____ = RM10,000

Identifying Your ZOPA
 Identifying Your WAP & ZOPA

• WAP: _______________________
• ZOPA: _______________________, “the range in which a deal that
satisfies both parties can take place” (Getting to Yes)
The Boeing-Airbus Dispute (Answer)
Option Advantages Disadvantages Costs Benefits

Reaching an
agreement

Going to court
The Boeing-Airbus Dispute (Answer)
Party BATNA WATNA WAP ZOPA

Boeing
Section Four: Creating a Communicative
Atmosphere

Setting the time and place, establishing common ground, and

creating a negotiating framework
 Choosing the Time and Place

• Bodily _________ • A _______ setting

No
Consideration
levels • Frequent
• Feelings of ________________
__________ • ____________
• Arrangements that conditions
convey • Lack of
__________ __________
Identify
Common
Ground

______________________
sets a positive tone

Progress towards
______________________

Start by discussing
______________________

From an ____________
______________________
 Identify Common Ground (Exercise)
Scenario 1: You are a consultant and you are negotiating with a client over the scope and the budget of a project.
Why it can be a good idea to begin a negotiation by establishing common ground?

What shared interests might the two parties have?

How can their shared interests guide the negotiation?

Scenario 2: You are a salesperson and you are negotiating with a distributor over the distribution of your products or services.
Why it can be a good idea to begin a negotiation by establishing common ground?

What shared interests might the two parties have?

How can their shared interests guide the negotiation?

 Identify Common Ground (Exercise)
Scenario 3: You are an investor and you are negotiating with an entrepreneur over the funding of their business idea or venture.
Why it can be a good idea to begin a negotiation by establishing common ground?

What shared interests might the two parties have?

You How can their shared interests guide the negotiation?

Section Five: Phase One — Exchanging
Information

Both parties should

state their positions

_____________
________________

Prepared
______________ to
discuss
Setting the Right Tone

Keep ____
and
Avoid __________
________ at all times
Start with a straight into
little ______ the
_______ negotiation
Appropriate to _____ A __________
_____ ______ on what the __________about your
issues are position on the issues
What to Share

______ of
negotiation

________ the ______ give

________ prior to __________
rushing straight __________ about
into the deal your position on
specific issues

“That’s an important
question. Before we
get to that, let’s make
sure we ______ on
some of the ______
________.”
Practice Your Poker Face

Don’t give _______ of Don’t give details of

your bargaining your _____ _____ _______
_________ (_____)
Practice Your Poker Face

“Never give anything away __________ getting

something in return. If you do you are _____ negotiating
you are simply __________.”

Is a ______
and
Enables you __________
to ______ tactic
Let the _____ ____
______
person
______
______
Section Six: Phase Two — Bargaining

“This section explains what

to expect when you ______
to _______ and what to do
if you run into a
__________.”
 What to Expect

• Do they typically start out with an

In addition
____________ ______?
• Do they try to _____ the negotiation?
• Do they try to frame the issues to
their ______ __________?
Tactics for Negotiation

Pay attention to
__________.

Leave behind your Ramp up your

______. __________ skills.

If you _____ _____, Anticipate

you _____ ____. ________________.

Offer and expect Don’t ________

__________. their problems

Stick to your Close with

__________ _______________.
How to Break Through a Roadblock

Share the admirable

Ask the parties to
__________ or
________ _______.
__________.

Develop __________ Set up __________ for

and __________. openness.

Permit a __________ What do you really

or __________. __________?

What are the

Where are you
underlying __________
relatively __________?
that motivate you?
Section Seven: Mutual Understanding

Story of two
brothers wanting
to use a family car

“The model of _______________ and _______________

is our preferred outcome for any negotiation.”
Three Ways to See Your Options
Positional Bargaining: Soft
Participants want to be
________________________
The goal is
________________________
Participants
________________ each other
Participants are ________ on
the people and the problem
Participants __________
positions readily
Participants _________ their
bottom line
Participants ___________
__________________________
Participants _______ for one
solution
Positional Bargaining: Hard
Participants are
________________________
The goal is
________________________
Participants
________________ each other
Participants are ________ on
the people and the problem
Participants __________ to a
position
Participants __________ their
bottom line
Participants ___________
__________________________
Participants _________ one
solution
Interest Bargaining
Participants are
________________________
The goal is an outcome that
will satisfy the
________________________ of
the participants
Participants treat trust and
distrust as ______________
Participants are soft on the
________, hard on the
____________
Participants
_________________
_______________, not
positions
Participants _______________
a bottom line
Participants
_________________ for mutual
gain
Participants develop
__________ options
What Do I Want?
“The possession of the car wasn’t the root of the
problem, arriving at the desired destination was.”

I want a _______________ I want a _______________

_________________________. _________________________.

I want _______________
_________________________.

“State as ___________ and as ____________

as possible.”
What Do They Want?
“Explore all the angles to maximise your possibilities for
mutual gain.”

What does _______________ What does _______________

_________________________? _________________________?

What is _______________ What is _______________

_________________________? _________________________?

“State as ___________ and as ____________

as possible.”
What Do We Want?
SAM
WANTS • To have at least two line
manager shifts per week, as
the extra money is useful.
NEEDS • To leave by 5 p.m. on
Mondays and Wednesdays to
pick up his children.
• To ensure that the line
manager position is covered
by someone from Monday to
Friday, 8:30 a.m. to 5:30 p.m.
JANE
• To have at least two line
manager shifts per week.
• To leave by 5 p.m. on Fridays.
• Not to have more than three
line manager shifts per week
as it will require to pay extra
taxes.
• To ensure that the line
manager position is covered
by someone from Monday to
Friday, 8:30 a.m. to 5:30 p.m.
Section Eight: Phase Three — Closing

_____________
Negotiation
__

Issue: Mutually
______
Parties can _____________
_____ ______, has been clearly
make a public outlined &
_____ reached
________of a ___________,
negotiation is or ______ a
closing document
Reaching Consensus
• Reaching Consensus: Substantive _______________ on key issues
Building the Agreement

_____________
Negotiation
____

_____________
Bargaining
____

_____________
General
____

• Agreement: Create a _________________

and _________________ interpretation
• Careful not to inadvertently _____
something _______
Section Nine: Dirty Tricks
There's an old expression: "If you cheat me
once, shame on you. If you cheat me twice,
shame on me."
Personal Attacks

Personal Attacks

STEP 1 STEP 2

Help the person

____________ the _________ a
Situation ______ of
________
De-escalate the Situation

• Really attempting to _____, _______________ and

_______________ what a person is saying
• Attempt to _________________ in the
Active __________ ___________________________
• Wanting to ___________________________ is a natural
response
• Instinctively solve their own problems

Increase personal • Create a Distance:

_____________________________________________
__________
_________________ • Attempt & Comment to __________ the emotion
• No tones of ___________, ___________, ___________,
__ ___________ or ___________

• Important to find that ___________ and ___________ with it

• Attempts to
__________ ___________________________________________________
_

Inviting __________ • Let them ___________ until their anger is spent

Help the person recover a sense of control

Giving them • “_______________________ to move to a

________ different area and talk?”

Seeking their
• “___________________________ what I think
___________ to about what just happened?”
________

___________ on
• “__________________________________
immediate we can do today to help solve this issue?”
_____________

Reiterate your • “Okay. I don’t know how this thing could have
happened, but ______________________
__________ that I’ll stay with you until we figure it out.”
Dealing with an Insulting Client
You are a sales manager for a software company and you are negotiating a
contract with a potential client. The client is very demanding and wants a lower
price, more features, and faster delivery. You have tried to explain the value of
your product and the limitations of your resources, but the client is not satisfied.

He starts to insult you and your company, saying that you are incompetent,
dishonest, and overpriced. He accuses you of trying to rip him off and threatens
to sue you if you don’t agree to his terms.

• Write down what you would say or do to de-escalate the situation and
help the client recover self control. Use the techniques of active
listening, increasing personal space, acknowledgement, agreeing,
and inviting criticism.

• Then, write down how you would give the client choices, seek his
permission to speak, focus on immediate solutions, and reiterate your
support.
Dealing with an Insulting Client (Answer)

Active Listening

Increased Personal
Space

Acknowledgement

Agreeing

Inviting Criticism
Dealing with an Insulting Client (Answer)
Giving them
choices

Seeking their
permission to
speak
Focusing on
immediate
solutions

Reiterate your
support
Resolving Issues with a Blaming Supplier
You are a project manager for a construction company and you are negotiating
a subcontract with a supplier. The supplier is very unreliable and has failed to
deliver the materials on time and in good quality. You have tried to
communicate with the supplier and resolve the issues, but the supplier is not
cooperative.

He starts to blame you and your company for the problems, saying that you are
unreasonable, unprofessional, and unrealistic. He accuses you of being unfair
and disrespectful and threatens to terminate the contract if you don’t apologize
and compensate him.

• Write down what you would say or do to de-escalate the situation and
help the client recover self control. Use the techniques of active
listening, increasing personal space, acknowledgement, agreeing,
and inviting criticism.

• Then, write down how you would give the client choices, seek his
permission to speak, focus on immediate solutions, and reiterate your
support.
Resolving Issues with a Blaming Supplier (Answer)

Active Listening

Increased Personal
Space

Acknowledgement

Agreeing

Inviting Criticism
Resolving Issues with a Blaming Supplier (Answer)

Giving them
choices

Seeking their
permission to
speak
Focusing on
immediate
solutions

Reiterate your
support
Section Ten: Everyday Negotiation

“We negotiate everyday with co-workers, sales people

and even family members”.
 How to Deal with Smaller Negotiations

Separate the ______ Focus on

Expand the range of
from the __________, not
__________.
problem__________. __________.

Don’t make Don’t let __________

State the __________
______________ that __________ or
of an agreement in
raise their actions derail
specific, clear terms.
defensiveness. progress.

Focusing on your
Try to make sure you
interests and
are on the
__________ can help
__________
level a negotiation’s
__________.
uneven playing field.
 Negotiating via Telephone
“Telephone for negotiation:
• ______ ____________ than face to face interaction
• Unable to ____________ the expressions and body
language”.
Pay
__________
to particular
points
Process to
Negotiate
Active
Effectively __________
via
Telephone
Don’t _______
you into fast,
unwise
decisions
Section Eleven: Negotiating on Behalf of a Third Party

“During this sort of negotiation, you need to have a clear

idea of your ____________________ and the concessions
you have permission to make.”
Team Information

Ensure that
Remind everyone everyone Create a “______
of the team’s _______________ ________” for the
_________ his or her _______ negotiation
in the negotiation
Covering All the Bases

Understand the
__________

Assemble a team of ___________

_______________ permitted

__________
involved in the
negotiation
Tough Questions

The way
__________
you __________
a question
_________ enough with
will sore the
sets the your topic
negotiation
tone

• “I’m not sure how that _________ _____ in here.”

• “I’ll _________the ______ and get ____ to you within ______.”