Negotiation skills principles and practice

NEGOTIATION SKILLS: FUNDAMENTAL PRINCIPLES AND

PRACTICE

SILVERSTAR CASINO CONFERENCE CENTRE

CHARLES COTTER

6 MARCH 2015

TRAINING PROGRAMME OVERVIEW

• Demonstrate an understanding of the theoretical aspectsregarding negotiation

• Identify the characteristics and key skills of effective negotiators

• Differentiate between the negotiation styles

• Differentiate between the types of negotiation

• Apply the P-A-C model to negotiation

• Identify and apply the core elements of the 4-phase negotiationprocess

FUNDAMENTALS OF NEGOTIATION

• Defining negotiation

• Characteristics of effective negotiators

• Key skills of negotiators

• Negotiation styles

DEFINING NEGOTIATION

• Negotiation is a process centered on a discussion that is intended toproduce an agreement.

• In its simplest form, it could be considered to be about power. More thanjust about money, it involves issues of ego, leveraging, saving face, andbeing right. It can appear that the negotiator or team with the most powerwill triumph over a weaker team or win something important.

• In current business practices, however, negotiation often leads tocompromises, where both sides make concessions to get as close as theycan to exactly what they want. Other times, no concessions are availableand a power struggle can go on for a long time.

• When negotiation is not effective, there are other options, such asbringing in a mediator, which can help both sides speak to one anotherand move towards a resolution instead of walking away and resolvingnothing.

THE VALUE OF CONSTRUCTIVE NEGOTIATION

NEGOTIATION SKILLS

BEING ASSERTIVE AS A NEGOTIATOR

PARENT-ADULT-CHILD (PAC) MODEL

KEY SKILLS FOR NEGOTIATION SUCCESS

• Allow for Creative Flexibility

• Prepare

• Know the Role of Value – Creating and Claiming Value

• Understand Negotiating Styles – Co-operative vs. Competitivenegotiators

• Manage the Process

• Handling Relationships

• Learning

• Word about Experience

NEGOTIATION STYLES

NEGOTIATION STRATEGIES

TYPES OF NEGOTIATION

• Integrative/Distributive

• Inductive/Deductive/Mixed

• Soft/Hard/Principled

• Alternative Dispute Resolution (ADR)

• Non-Negotiable Positions/Options

PHASES OF NEGOTIATION

PHASE 1: PREPARATION

• Preparatory points to consider

• Ground rules

• Identifying your Hot Buttons

• Doing Research

• Identifying Your Walk Away Position (WAP)

• Identifying Your Best Alternative to a Negotiated Agreement(BATNA)

• Working within the Zone of Possible Agreement (ZOPA)

WORKING WITHIN THE ZONE OF POSSIBLE AGREEMENT (ZOPA)

STEP 2: EXCHANGING INFORMATION

• What information is held in common to bothnegotiating parties?

• What information you will disclose?

• What information you would prefer the othernegotiating party to disclose?

STEP 3: BARGAINING

• Responding to Challenges

• Creating win-win solutions

RESPONDING TO CHALLENGES• Ways to Stay Calm

• Detach Yourself from the Outcome

• Include Pre-determined Break Times in Your Rules

• Depersonalize the Process

• Work with the Other Party, Not Against Them

• Unspoken Conversations

• Don’t Bring Your Baggage to the Table

• Avoid Power Struggles

• Stay Focused

• Focus on a Positive Process

CREATING WIN-WIN SOLUTIONS

• Keeping an Open Mind

• Long Term and Short Term Relationships

• Making the Most of Brainstorming

• Thinking outside the Box

• Use Your Resources (Experts, Mediators, Third Parties)

• Meta-Negotiation

• Identify Common Ground

STEP 4: COMMITMENT AND CLOSING

• Once the parties have completed bargaining, made all theadjustments, and agreed upon the least uncomfortable result, thenegotiation is ready for commitment and closure.

• Developing a Sustainable Agreement

What is a Sustainable Agreement?

Getting everyone’s Perspective

Reviewing the Information

Outlining the Options

Gaining Consensus

ROLE-PLAY: “THE UGLI ORANGE”

• Refer to Learning Activity 12

• The facilitator will provide you with detailedlearning instructions.

• Apply what you’ve learnt the past two daysabout conflict resolution and negotiation toreach a mutually beneficial (win-win)agreement.

CONCLUSION

• Key points

• Summary

• Questions

CONTACT DETAILS

• Charles Cotter

• (+27) 84 562 9446

• charlescot@polka.co.za

• LinkedIn

• Twitter: Charles_Cotter