Work Material - Negotiation Skills

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Negotiating Skills

To provide you with the skills


to plan & implement successful negotiation

At the end of the course you will appreciate how to:

• Establish objectives to be achieved by


negotiation.
• Identify a range of outcomes from the desired
ideal to the ultimate acceptable fall back
position.
• Use interpersonal skills to influence others in
both informal and formal situations to achieve
your objectives.
Negotiating Skills
• Act assertively to achieve objectives
• Reduce resistance & minimise conflict
• Know how & when to accept the opinions,
values & will of others
• Work to achieve a WIN-WIN situation
Negotiating Skills
Negotiation occurs when there is something
of value that you wish to attain
• Need is the negotiators starting point
• Need is also the weakness that can be exploited
• Negotiation is also a process that is of benefit to
all parties
Negotiating Skills
Ineffective Negotiation is about:
• Non mutual benefit
• Compromising for no return
• Playing games

Think of a time when a


negotiation has not been
successful.
When you have purchased
Can you identify what went
a house or a car –
wrong?
Did you negotiate terms?
Were you successful?
Negotiating Skills
Effective Negotiation
• Is an important
communication skill
• Reaches the agreement
that best meets both sides
requirements
• Should be conducted in a
professional manner
• Be a solid foundation on
which to build future
relationships
Negotiating Skills
Preparing yourself
Preparation enables you to :
• Identify your objectives
• Identify targets
• Know your resistance point
• Adopt the most suitable style
• Time the interaction correctly
• Achieve a deal
Negotiating Skills
Traditional Negotiation
Has two sides Is a form of warfare
Has opposing objectives Has a short sighted approach

Formal Negotiation Informal Negotiation


Favours the party with Emphasises the
the strongest power base relationship between
Limits the likelihood of the two parties
informal talks Encourages the spirit of
Emphasises the letter of any agreement reached
agreement
Negotiating Skills
Modern Negotiation
Enables strategic alliances to be built
Emphasises partnerships
Builds relationships
Is effective long term

Outcomes From Negotiation

Need to achieve the objective set


Be of benefit to all parties
Ensuring a WIN/WIN situation
Negotiating Skills
Identifying Possible Outcomes
Write down all your objectives
Put them in order of priority
Identify issues that are open to compromise
Identify those that are not

Classifying Priorities
Those that are desirable
Those that are acceptable
Those that are the minimum you/the organisation require
Negotiating Skills
What is influencing?

Achieving a result that meets the legitimate needs


of both sides
Achieving long lasting results
Improving the relationship of the people involved

Legitimate is the important word here.


Needs must be legitimate if influencing is to be
successful.
For influencing to be effective it has to be
sustainable.
Negotiating Skills
What is influencing?
When it fails
The MIGHT IS RIGHT style of influencing always fails.

People can appear to agree but over time they may show their
disagreement by leaving the workplace.

A boss who forces his influence onto his work-team may only see
short term gains.

The relationship of trust may be destroyed and will be hard to


rebuild.
Negotiating Skills
Why is influencing important?

Flatter organisation structures need it to be effective.


Lean is mean – more stress is prevalent in current
organisations.
The rise of the customer – the customer is not always
right, but it is our job to make them ‘feel’ right.
Working across organisations – it’s the only positive
way forward.
The demise of traditional authority – all employees have
a vested interest in the future success of any
company/organisation.
Negotiating Skills
Influencing is not about :
Forcing your point of view on others
Nagging until they agree
Giving in to someone
Bargaining
A debate

It is about
Dealing with others assertively
Speaking with knowledge and confidence
Listening to their point of view
Appreciating the differences
Showing respect
Negotiating Skills
The Levers Of Influence
Pull Skills
Creating rapport These Pull techniques also involve
Authentic listening the effective use of non-verbal
Skilful questioning communication.

Creating rapport :
Posture
Voice – Tone & Volume
Gesture
Eye Contact
Facial expressions
How we occupy our space
Consider carefully how you want to build the relationship
with someone who you will be negotiating with.
Negotiating Skills
Authentic Listening

The aim is empathy – a non-judgmental state


that aims to understand the other person.
Authentic Listening is :
Listen for content
Listening to the other messages
Summarising the content
Summarising the emotion
Testing your assumptions
Negotiating Skills
Barriers to Listening
Dialogue of the deal - Both sides within a discussion, intent on making
their own point, may fail to listen to each other.
Experience - The parties may have had bad experiences of negotiations in
the past.
Familiarity - Can be a crucial disabler when negotiating.
Skim Listening - Picking up on key words and missing vital parts of the
conversation.
Attention span – Are you focused or distracted?
Negotiating Skills
Pull Levers
Questioning :

Have a questioning strategy –


USE:
Hypothetical questions
Defining questions
Probing questions

The aim is to use effective questioning skills to


Help build rapport
Obtain accurate information
Obtain other people’s opinion
Negotiating Skills
Assertiveness is
Saying what you mean
Meaning what you say
Asking for what you want clearly
Listening to what the other person is saying
Being honest about what is relevant
Being prepared to look for a workable compromise

Being Assertive during a negotiation is the best way


to achieve a win/win outcome. Conduct your conversation
with clarity, confidence and an open mind.
Negotiating Skills
Recognising Assertiveness
Effective body language – how would you describe this?
Use assertive language – what is considered assertive
language?

Never become emotional


Angry
Resentful
Frustrated

Responding “Behaviour breeds behaviour”


Not Keep the temperature low
Reacting Stay detached
Show respect
Negotiating Skills
Power In Negotiation
Negotiation assumes a “certain equality” between parties

Negotiation refers to obtaining something of value


that someone else has. The focus is upon
mutual benefit.
Differing power bases can lead into fighting
behaviours.
Parties do test each others strengths and probe
into just how dependant they are on each other.
A balance of power is essential if negotiations are
to be successful.
Negotiating Skills
Influencing The balance Of Power
Facts Expertise Explore Strengthen Authority

Facts – The skilled negotiator has all the facts ,


background history and figures. Even a hardened MD
cannot fail to be impressed.
Expertise – Again gained by effective preparation.
Explore – Pose questions in a non threatening manner.
How do we find this solution together.
Strengthen – Develop acceptance and trust . Find &
implement outcomes that are of interest to both parties.
Authority – it is vital that both parties have the
authority to make the outcome happen.
Negotiating Skills
Negotiation Strategy
Opening Exploration Create movement
Create Closure Finish

The Process
Agree Deny Stress the
Boundaries Need Difference

Agree Boundaries – On which the negotiation will focus.


Deny the need – A deliberate strategy in which both parties play down
their need for a particular outcome.
From the outset skilled negotiators will play up the fact that they do not
believe the outcome will be successful.
Negotiating Skills
Opening Negotiation
• Set the offer at the most appropriate level
normally a long way removed from target.
• Respond in a way that is deemed most appropriate,
usually rejection.

There is no such thing as a first offer that


is too good to refuse. Openings within
negotiation are like a chess match both
parties will begin with an offer that is far
removed from target.
The opening offer is very rarely a serious
commitment.
Negotiating Skills
Exploration

Identify : Needs Wants Interests

Needs – Those things that you feel you cannot do without


Wants – Those things that people would prefer to have
Interests – The reasons that lie behind the WANTS & NEEDS

Exploration is important because:


It allows the parties to explore the situation.
Needs & Wants are talked about first.
A skilful negotiator can see where the other
party expect the final outcome to be.
Negotiating Skills
Create Movement During this phase it is vital
that if you agree to a
• Be prepared to compromise concession you get
• Explore possibilities something back in return .
• Ask ‘what if?’ questions Don’t give anything away too
easily – people do not value
• Be clear about the variables things that have been
• Exchange obtained with little effort.

Restate your case – Ensure that the


agreement is clear by going over again
what has been agreed.
Restate everything that you have Firming Up
agreed on. Minimise the perception
of what is left to agree.
Proposals
Write it down – It may prompt some
questions before the deal is closed.
Prevention is better then cure.
Negotiating Skills
Create Closure
• Keep moving
• Don’t get bogged down in detail
• Focus on issues
• Give recognition
• Give the other party a final
opportunity to clarify any issues
Negotiating Skills
Closing
• List of issues from both sides
• Prepare a draft framework
• Tackle outstanding details
• Record each point as it is agreed
• Agree a process to review
• Agree a procedure for complaints

The skilled negotiator will not be distracted from their task.


Always remember that the whole point of negotiation is
that two parties have something of value.

Know when to stop talking


Negotiating Skills
Failing Negotiation
Initial commitment may be based on incomplete information
Negotiation may be based on false assumption

People communicate using their mind & body through the use of emotion.
Misunderstandings can arise because of stereotyping.
Tension is caused by emotions which can then lead to stress & anxiety.
Listen actively with empathy to reduce the perceived threat and try to show
acceptance and understanding.
If everyone ignores the pinch then a crunch can be just around the corner.
The relationship may suffer as a consequence.
The secret of success is to look for the pinch before it becomes a crunch.
Negotiating Skills
Approaches to Resolve Conflict
Skilful listening to improve understanding

Assertion skills

Influence by using interpersonal skills

Emphasise issues, break up large issues

Make careful note of actions decided

Facilitation – Helping people communicate with one another.


Conciliation or mediation – Working towards resolving an issue whilst
remaining independent. Advocacy – negotiating on behalf of one party.
Negotiating Skills
Outcomes From Negotiation

In a win/lose situation one party may feel threatened by the other and react in
a defensive or aggressive way to ensure they don’t get beaten into
submission.
In a lose /lose situation, both parties have lost and no-one gets what they
really want.
In a win/win situation, this provides the basis for a long lasting partnership
that can be mutually rewarding.
Negotiating Skills
Stages to Successful Negotiation
• Exchange information
• Assess Wants, Needs, Information
• Find the middle ground which is fair & reasonable to
both
• Firm up a mutually agreeable solution

Recognise these stages, work towards them.


Use the notes in this course to help future
Negotiations. Create a learning log – a simple diary will do.
Assess every negotiation you are involved in.
What went well? What could be better?
What will you do differently next time?
Negotiating Skills
A successful Negotiator can

• Build Rapport
• Network effectively
• Work in a team
• Build consensus
• Be persuasive
• Deal with conflict

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