Negotiating SkillsTo 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.

• 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 Think of a time when a negotiation has not been negotiation has not been

successful.successful.Can you identify what went Can you identify what went

wrong?wrong?

When you have purchased a house or a car –

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 : 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 NegotiationFavours the party with the strongest power baseLimits the likelihood of informal talks Emphasises the letter of agreement

Informal Negotiation Emphasises the

relationship between the two parties

Encourages the spirit of any agreement reached

Negotiating Skills

Modern Negotiation - BenefitsEnables strategic alliances to be builtEmphasises partnershipsBuilds relationshipsIs effective long term

Outcomes From Negotiation

Need to achieve the objective setBe 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 compromiseIdentify those that are not

Classifying PrioritiesThose 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 resultsImproving 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

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.

What is influencing?

When it fails

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 othersNagging until they agreeGiving in to someoneBargainingA debate

Dealing with others assertivelySpeaking with knowledge and confidenceListening to their point of viewAppreciating the differencesShowing respect

It is about

Negotiating Skills

The Levers Of Influence Pull Skills Creating rapportAuthentic listeningSkilful questioning

These Pull techniques also involve the effective use of non-verbal

communication.

Creating rapportCreating rapport : : Posture Posture Voice – Tone & VolumeVoice – Tone & VolumeGesture Gesture Eye Contact Eye Contact Facial expressionsFacial expressionsHow we occupy our spaceHow we occupy our space

Consider carefully how you want to build the relationshipwith someone who you will be negotiating with.

Negotiating Skills

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 contentSummarising the emotionTesting your assumptions

Authentic Listening

Negotiating Skills

Barriers to ListeningDialogue 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 questionsDefining questions Probing questions

The aim is to use effective questioning skills to Help build rapport

Obtain accurate informationObtain other people’s opinion

Negotiating Skills

Assertiveness is Saying what you mean Meaning what you sayAsking for what you want clearlyListening to what the other person is sayingBeing honest about what is relevantBeing prepared to look for a workable compromise

Being Assertive during a negotiation is the best wayto 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?Effective body language – how would you describe this?Use assertive language – what is considered assertive Use assertive language – what is considered assertive language?language?

Never become emotionalAngry

Resentful Frustrated

“Behaviour breeds behaviour”Keep the temperature low

Stay detached Show respect

RespondingRespondingNotNot

ReactingReacting

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 PowerFacts 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 StrategyOpening Exploration Create movement Create Closure Finish

The Process

Agree Agree BoundariesBoundaries

Deny Deny NeedNeed

Stress theStress theDifferenceDifference

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 withoutWants – Those things that people would prefer to have

Interests – The reasons that lie behind the WANTS & NEEDS

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.

Exploration is important because:

Negotiating Skills

Create Movement• Be prepared to compromise• Explore possibilities• Ask ‘what if?’ questions• Be clear about the variables • Exchange

During this phase it is vital that if you agree to a concession you get

something back in return .Don’t give anything away too easily – people do not value

things that have been 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

agreed on. Minimise the perception of what is left to agree.

Write it down – It may prompt some questions before the deal is closed.

Prevention is better then cure.

Firming Up Proposals

Negotiating Skills

• 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

Create ClosureNegotiating 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

Know when to stop talking

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.

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 Skilful listening to improve understanding

Assertion skillsAssertion skills

Influence by using interpersonal skillsInfluence by using interpersonal skills

Emphasise issues, break up large issuesEmphasise issues, break up large issues

Make careful note of actions decidedMake 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

Negotiating Skills