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The Skill and Art of Negotiation Strategies For Negotiation Success
The Skill and Art of Negotiation Strategies For Negotiation Success
Mark J. Heley
Heley, Duncan & Melander, PLLP
May 3, 2019
You Negotiate all the Time
• Daily Lives
• Getting your kids organized in the morning
• Agreeing on weekend activities
• Making consumer purchases
• Business
• Entering into business contracts
• Construction Administration
• Changes
• Dispute resolution
• Claims and Lawsuits
Initial Points
• Plenty of Articles and Research, including studies and empirical
Data
• Design and Construction World is Small
• Your Negotiation Style will impact your business
• Your Negotiation Style will Impact your Client’s business
• Goals of Negotiation
• Agreement
• Successful Implementation of Agreement
What is “Negotiation”?
• Things to Avoid
Avoid crossing arms tightly
Avoid putting hands on face
Avoid fidgeting and messing with your clothes
Try not to talk too fast or increase your pitch if you get nervous
Don’t get defensive or aggressive
• Read your partner’s body language
TEN NEGOTIATION TIPS
• INITIATE PROPOSALS – ASK FOR WHAT YOU WANT
• Plan your first request/proposal carefully
• Consider value/risks of extreme numbers
• Concept of Anchoring
• Set the Atmosphere of the Negotiations.
• Define Rules of Engagement
TEN NEGOTIATION TIPS
• CONSIDER ONLY REASONABLE COMPROMISE
• Develop Strategy for Compromise
• Develop hierarchy of compromise
• Do not Compromise Unless you Receive Something in Return (or
Expect to Receive Something in Return)
• Look for Smart Tradeoffs – Consider Interests versus Positions
• Be Prepared to Walk Away and Know When to Walk Away
TEN NEGOTIATION TIPS
• BE PATIENT AND PERSISTENT
• Don’t take Negotiations Personally
• Understand every position is negotiable.
• Understand you may have to ask more than One Time for Certain
Items or Concessions.
TEN NEGOTIATION TIPS
• OPTIONS WHEN NEGOTIATIONS APPEAR TO BE AT AN IMPASSE
–BREAKING IMPASSE
• Don’t Leave without a Plan for Advancement
• If Impasse is imminent, Stop before Impasse
• Impasse is Fleeting – No means no “at this time” and “under
these circumstances”
• Ask for Options
• Restructure Offer
• Consider alternative offers
• Explore BATNA and WATNA from each Perspective
TEN NEGOTIATION TIPS
• PLAN FOR IMPLEMENTATION
• Know Next Steps if Agreement is Reached.
• Facilitate Implementation
• Send over contract form;
• Deliver Product;
• Set Meeting
• Document/Confirm Agreements in Writing
TEN NEGOTIATION TIPS
• PRACTICE NEGOTIATIONS – ROLE PLAY
PUSHERS AND PULLERS
• PUSHERS • PULLERS
• STRONG ARGUMENTS • GOOD QUESTIONS
• WELL PRESENTED • SKILLFULLY ASKED
• ENERGY COMES FROM THE • ENERGY COMES FROM
PERSUADER INDIVIDUAL TO BE
PERSUADED
WHEN PUSH AND PULL STYLES WORK
BEST
• PUSHERS • PULLERS
• STRONG ARGUMENTS • GOOD QUESTIONS
• WELL PRESENTED • SKILLFULLY ASKED
• ENERGY COMES FROM THE • ENERGY COMES FROM
PERSUADER INDIVIDUAL TO BE
• WORKS BEST IN TIGHT PERSUADED
TIME CONSTRAINTS – ONE • WORKS BEST WHEN
OFF NEGOTIATIONS ADEQUATE TIME FOR
NEGOTIATION – LONG
TERM RELATIONSHIP IS
PART OF THE GOAL
CONCLUSION