Negotiating for Results

Al Waleed Al Shamy
Day 3
 Learning
Goals
By the end of this session, you will:

1. Obtain better outcomes from negotiations.

2. Learn to use 16 basic strategies to make a
bottom-line difference in negotiating.
3. Be able to reach agreement in more
negotiations.
 Negotiating To Win
featuring Dr. Jim Hennig

“You will never make

more money than when
you are negotiating.”

– Roger Dawson, Business Author

 Why This Subject

Is Important
“Negotiation can positively affect everything
from shared housework to the cost of a car
(women pay up to $1,353 extra when they
don’t negotiate). Professionally, a woman can
lose more than $500,000 by age 60 if she
doesn’t negotiate her first salary – and most
women don’t.”
- Linda Babcock, Author & Carnegie Mellon
University Business Professor
 Agenda: Day One
Session One: Introduction & Course Overview
Icebreaker: Mixing up the Modifiers
Session Two: What is Negotiation?
Break
Session Three: The Successful Negotiator
Morning Wrap-Up
Lunch
Session Four: Preparing for Negotiation
Session Five: The Nuts and Bolts
Day One Wrap-Up
 Session One: Course Overview
• Understand how often we all negotiate and the benefits
of good negotiation skills.
• Recognize the importance of preparing for the
negotiation process, regardless of the circumstances.
• Identify the various negotiation styles and their
advantages and disadvantages.
• Develop strategies for dealing with tough or unfair
tactics.
• Gain skill in developing alternatives and recognizing
options.
• Have the opportunity to practice the “how to” of these
skills in a supportive environment.
• Understand basic negotiation principles, including
BATNA, WATNA, WAP, and the ZOPA.
 Session Two:
What is Negotiation?
• How would you define negotiation?
• What other words might we use instead of
“negotiate”?

Any method of negotiation may be fairly judged

by three criteria:
• It should produce a wise agreement if
agreement is possible.
• It should be efficient.
• It should improve or at least not damage the
relationship between the parties.
 Session Two:
What is Negotiation?
Types of Negotiation
• Integrative/Distributive
• Inductive/Deductive/Mixed
• Soft/Hard/Principled
• Alternative Dispute Resolution
• Non-Negotiable Positions vs. Options
 Session Two:
What is Negotiation?
Positional Bargaining
Customer
• How much do you want for this
brass dish?
• Oh, come on, it’s dented. I’ll give
you $15.
• Well, I could go to $20, but I
would never pay anything like
$75. Quote me a realistic price.
• $25.
• $37.50. That’s the highest I’ll go.
Shopkeeper
• That is a beautiful antique, isn’t it?
I guess I could let it go for $75.
• Really! I might consider a serious
offer, but $15 certainly isn’t
serious.
• You drive a hard bargain. $60
cash, right now.
• It cost me a great deal more than
that. Make me a serious offer.
• Have you noticed the engraving?
Next year, pieces like that will be
worth twice what you pay today.
 Negotiations Triangle

Credibility

Need
Relationship
 Session Two:
What is Negotiation?
• Arguing over positions produces unwise
agreements
• Arguing over positions endangers ongoing
relationships
• Being nice is no answer!
 Session Two:
What is Negotiation?
Soft
• Participants are friends
• The goal is agreement
• Make concessions to cultivate
the relationship
• Be soft on the people and the
problem
• Trust others
• Change your position easily
• Make offers
• Disclose your bottom line
• Accept one-sided losses to
reach agreement
• Search for the single answer:
the one they will accept
• Insist on agreement
• Try to avoid a contest of wills
• Yield to pressure
Hard
• Participants are adversaries
• The goal is victory
• Demand concessions as a
condition of the relationship
• Be hard on the problem and the
people
• Distrust others
• Dig in to your position
• Make threats
• Don’t disclose your bottom line
• Demand one-sided gains as the
price of agreement
• Search for the single answer: the
one you will accept
• Insist on your position
• Try to win a contest of wills
• Apply pressure
 Session Two:
What is Negotiation?
The answer to the question of whether to use
soft positional bargaining or hard is “neither.”
This method can be boiled down to 4 points.
•People: Separate the people from the
problem.
•Interests: Focus on interests, not positions.
•Options: Generate a variety of possibilities
before deciding what to do.
•Criteria: Insist that the result be based on an
objective standard.
 Session Two:
What is Negotiation?
• Soft negotiators want to avoid personal
conflict and so make concessions readily in
order to reach agreement.
• Hard negotiators see any situation as a
contest of wills in which the side that takes
the more extreme position and holds out
longer fares better.
• There is a third way to negotiate, a way
neither hard nor soft, but rather both hard
and soft. This method suggests that you
look for mutual gains whenever possible.
 Session Two:
What is Negotiation?
Researchers have found there are three
basic negotiating styles.
•Co-operative Style
•Aggressive Style
•No Pattern
 Session Two:
What is Negotiation?
 Session Three:
The Successful Negotiator
What are the characteristics a successful
negotiator must have?
•They see possibilities rather than problems.
•They are excellent communicators.
•They keep an open mind.
•They have confidence in their own abilities
(or act like they do) and the negotiation
process.
•They are willing to listen.
•They are optimistic.
 Session Three:
The Successful Negotiator
• Their egos don’t get in the way of a win/win
solution.
• They are creative and ready to consider
ways of doing things differently.
• They are flexible.
• They have excellent self-control.
• They are always well-prepared.
• They are life-long learners.
 Session Three:
The Successful Negotiator
Topic List:
• Communication skills
• Understanding body language
• Problem solving
• Creative thinking
• Building enthusiasm and confidence
 Communication Barriers

Age Agendas

Culture Experiences

Education
Perceptions
 Selective Listening

Talk Line
Listening Line
.
 Selective Listening

What was said

What was heard

 Session Four:
Preparing for Negotiation
Only our minds can produce fear.
• Fear of humiliation
• Fear of failure
• Fear of rejection
• Fear of powerlessness
• What are some other fears you are familiar
with?
 Session Four:
Preparing for Negotiation
• Do you know things about you that are true, but
that you would prefer to avoid?
• When people make comments about (or when
situations expose) things that we are ashamed of
or that we try to deny, we say that they are
“pushing our buttons.”
• When you know what your own personal hot
buttons are, you can prepare for them and then
control your reactions.
• Take a few moments to write down some of your
hot buttons and ways to respond when those
buttons are pushed.
 Session Four:
Preparing for Negotiation
Preparation Checklist
• Determine your main objective.
• Determine your supporting points.
• Determine a fallback position.
• Identify your Best Alternative To a Negotiated
Agreement (BATNA) and Worst Alternative To
a Negotiated Agreement (WATNA).
• Identify your WAP, Walk away position.
• What Zone Of Possible Agreement (ZOPA)
might exist?
 Session Four:
Preparing for Negotiation
Case Study
You and your best friend recently decided to
become roommates and share a two-
bedroom apartment. You are a freelance
artist and you work from home. Because you
spend more time at home, he feels that you
should do more of the housework and pay a
larger share of the power and water bills. This
issue is causing significant strain on your
relationship, so you decide to try to negotiate
a solution.
 Session Four:
Preparing for Negotiation
• What might be some of your hot buttons?
• Determine your main objective.
• Determine your supporting points.
• Determine a fallback position.
• Identify your Best Alternative To a Negotiated
Agreement (BATNA) and Worst Alternative To
a Negotiated Agreement (WATNA).
• Identify your WAP.
• What Zone Of Possible Agreement (ZOPA)
might exist?
 Session Four:
Preparing for Negotiation
Some things you can explore about the
negotiator:
•What is their business about?
•What are their competitors like?
•What is their stock like?
•What associations does the person belong
to?
•What people do you both know?
•What hobbies does the person have?
 Session Five:
The Nuts and Bolts
• Always prepare your research in a
professional format and bring it with you.
• Ensure you have separate folders for
confidential information and information
you’re going to share.
• Keep both sets of information with you at all
times during the negotiation.
• You should have an information sheet
outlining your main objectives, supporting
points, fallback position, BATNA, WATNA,
WAP, and ZOPA.
 Session Five:
The Nuts and Bolts
• The best place to meet is somewhere that
you feel comfortable – your office, your
company’s boardroom, or even your favorite
coffee shop.
• The worst place is somewhere your
opponent feels comfortable.
• Neutral ground would be a rented
boardroom or a restaurant neither of you
have visited before.
• If you’re given the choice, choose a time of
day that works best for you.
 Session Five:
The Nuts and Bolts
Case Study
You and your best friend recently decided to
become roommates and share a two-
bedroom apartment. You are a freelance
artist and you work from home. Because you
spend more time at home, she feels that you
should do more of the housework and pay a
larger share of the power and water bills. This
issue is causing significant strain on your
relationship, so you decide to try to negotiate
a solution.
 Session Five:
The Nuts and Bolts
• What documentation might you want
to bring?
• What would be your home turf?
• What would be neutral ground?
• What would be your roommate’s
home turf?
 Agenda: Day Two
8:30-8:45 Re-Connect: Flying Around the Room
8:45-9:30 Session Six: Making the Right Impression
9:30-10:00 Session Seven: Getting off to a Good Start
10:00-10:30 Session Eight: Exchanging Information
10:30-10:45 Break
10:45-11:15 Session Nine: The Bargaining Stage
11:15-11:45 Session Ten: Inventing Options for Mutual Gain
11:45-12:00 Morning Wrap-Up
12:00-1:00 Lunch
1:00-1:15 Energizer: Freeze Frame
1:15-2:00 Session Eleven: Getting Past No and Getting to Yes
2:00-3:00 Session Twelve: Dealing with Negative Emotions
3:00-3:30 Session Thirteen: Moving from Bargaining to Closing
3:30-4:15 Session Fourteen: The Closing Stage
4:15-4:30 Workshop Wrap-Up
 Session Six:
Making the Right Impression
Here are some things to keep in mind to
make a positive impression:
•Confident posture
•Eye contact
•Minimal body movement
•Clothes are clean, unrumpled, stain-free
•Shoes are clean and polished
•Fingernails are clean
•Pleasant expression
 Session Six:
Making the Right Impression
The Rule of Twelve suggests that we first
notice and remember three things about
people we meet.
•The first twelve inches (shoulders up).
•The first twelve steps a person takes.
•The first twelve words a person speaks.
 Session Six:
Making the Right Impression
Research tells us people determine seven
things from your appearance.
•Income
•Education Level
•Social Position
•Sophistication
•Success
 Session Six:
Making the Right Impression
The message you communicate with
your handshake is determined by five
factors.
•Degree of firmness
•Dryness of hand
•Depth of grip
•Duration of grip
•Eye contact
 Session Six:
Making the Right Impression
Tips to dress for success:
• Do your research
• What does your appearance say?
• Consider your work environment
 Session Eight:
Exchanging Information
• Once the warm and fuzzies are over, it’s
time to get into the meat of the negotiation.
• Start by outlining your position and having
the other party outline their position.
• If you’ve identified a zone of possible
agreement (ZOPA) that gives a solution
that you’re happy with, you will want to
outline that as well.
 Session Nine:
The Bargaining Stage
Techniques for Success
• Equalization
• Building a Case
• It’s Too Bad…
• Wear Them Down
• Mix It Up
• Bridge the Gap
Session Eleven: Getting Past No
and Getting to Yes
Session Eleven: Getting Past No
and Getting to Yes
• Go to the balcony.
• Step to their side.
• Invite them to step to your side.
• Build a golden bridge.
• Make it difficult to say “no.”
• Use high-yield questions.
Session Eleven: Getting Past No
and Getting to Yes
On the road from No to Yes, you’re likely to
reach one (if not several) impasses, where
one or both of you are digging in your heels
and you’re not making progress. Break it by:
•Taking a break.
•Identify hidden interests.
•Deal with unrealistic expectations.
•Use brainstorming techniques.
Session Eleven: Getting Past No
and Getting to Yes
What should you do once you break
the impasse and get past “no”?
•Avoid positional bargaining.
•Separate the person from the problem.
•Focus on interests.
•Work towards a mutual gain solution.
•Insist on using objective criteria.
 Session Twelve: Dealing with
Negative Emotions
Three tactics:
• Stonewalling
• Attacking
• Dishonesty
Session Thirteen: Moving from
Bargaining to Closing
 Session Thirteen: Moving from
Bargaining to Closing
Things not to do:
• Beg, plead, or bully.
• Give your opponent time to think the deal
over. 
• Raise additional questions or points during
your closing procedure.
 Session Thirteen: Moving from
Bargaining to Closing
• For simple negotiations, a verbal
agreement will probably be sufficient.
• You will, however, want to date and sign
any notes that you took and any
documentation you gathered and file them
away for reference.
• It’s also good to send a follow-up letter
outlining the terms of the negotiation and
get a signed receipt.
 Session Thirteen: Moving from
Bargaining to Closing
• For more complex negotiations, written documents
will likely be involved.
• We strongly recommend that you use a lawyer. It’s
worth the investment.
• If possible, have your lawyer prepare the document
to be signed. If you are taking this route, make
sure you have all the necessary paperwork with
you when you go to the negotiation.
• Read the document over thoroughly, clause by
clause. Ask about anything that is unclear to you.
• Ensure that you and your opponent have signed,
original copies of all documents. Keep your copies
in a safe place.
 Session Fourteen:
The Closing Process
In general, there are three possible
outcomes to a negotiation.
•Lose-Lose
•Win-Lose
•Win-Win
 Session Fourteen:
The Closing Process
• What do we mean by a sustainable
agreement?
• What makes a sustainable agreement?

Three Steps:
1.Getting everyone’s perspective
2.Reviewing the information
3.Outlining the options
 Session Fourteen:
The Closing Process
Getting Consensus
• Please explain what we have agreed to.
• Do you agree with what we have agreed
to?
• Are you committed to carry out the
agreement?
• If not, what factors need to be clarified?