INTRODUCTION

The word "negotiation" is from the Latin, "negotium".

It is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or to craft outcomes to satisfy various interests. Primary method of alternative dispute resolution. Occurs in business, non-profit organizations, government branches, legal proceedings, among nations and in personal situations such as marriage, parenting, and everyday life.

Negotiation: Process of bargaining with one more parties at arrive at solution acceptable to all Two types of negotiation:
Distributive when two parties with opposing goals compete over set value Integrative when two groups integrate interests, create value, invest in the agreement (win-win scenario)

Negotiating Styles

Steps of the Negotiation Process:

1.

2.
3. 4. 5.

Planning Interpersonal relationship building Exchange of task related information Persuasion Agreement

Negotiation Tactics

Location Time limits Buyer-seller relationship Bargaining behaviors

Use of extreme behaviors Promises, threats and other behaviors Nonverbal behaviors

How do many people view negotiations?

War, competition, battle, fight, contest Old Style Tactics: set aggressive targets, start high, concede very slowly if at all, and employ threats, bluffs and commitments to unrealistic targets --- without triggering an impasse or escalation!

Three Key Factors of Negotiating

Preparation

Negotiation Communication

What makes a great negotiator?

Whoever is the

best prepared wins

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Interests: general goals, objectives

Monetary Growth Status Principles

(value: $, Time, People)

???

NITB

The 6 mistakes of negotiation

1.
2. 3. 4. 5.

6.

Not doing your homework. Neglecting the other sides problem. Letting positions drive out interests. Letting the numbers bulldoze other interests. Neglecting BATNAs. Failing to correct for skewed vision.

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Outline of key information:

1.

Main Interests / Positions

2.
3.

Variables Optimum / Minimum

Arguments for / against each

4.
5.

Trade-offs / Concessions / BATNA

Reservation Price

* For both parties

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The right mind set

Be very well prepared

Be as flexible as possible
Clarify your terms Dont assume anything Be encouraging at all times Engage in brainstorming Show concern for your counterpart

13

Running the Negotiation

Open on the right foot Use a well thought out agenda Present the agenda as a benefit Discuss agenda items / allocate time Cover all agenda items Break to review agreement Leave on a positive note

Major barriers to a successful negotiation

NITB

Poor communications Hardball attitudes / inflexibility Unable to build a deal that has value for both parties Negotiating with the wrong people Unrealistic demands / expectations Lack of trust

NITB
You must Consistently Communicate that you are Competent and that you truly Care about your counterpart

C
o n c e r n

Affection

TRUST
Respect

Distrust

Competence

NITB

Six more ways to build trust

1.
2.

Know their language.

Manage your reputation.

3.
4. 5. 6.

Make dependence a factor.

Make unilateral concessions.

Label your concessions.

Explain your demands.

Emotion in Negotiation
Positive affect in negotiation: People in a positive mood have more confidence. Higher tendencies to plan to use a cooperative strategy. Use less aggressive tactics. Negative affect in negotiation : Anger is the primary emotion. Angry negotiators plan to use competitive strategies . Cooperate less. Anger disrupts the process by reducing the level of trust. Pay less attention to opponents interests . Achieve lower joint gains.

PRAGMATICS
CHARACTERISTICS:

Win - lose approach. Orientated towards time management and business. DECISIONS made QUICKLY, based on FACTS. Practical and take charge.

WHAT THEY WANT?

Wants to win, even if it means that someone has to lose. Dominates and threatens people.

COMMON EXPRESSIONS :

"This isn't a religion, it's a business." "The bottom line. "How will this effect our claim and the results?

WAYS OF DEALING :
Don't waste time with small talk. Don't overload with information. Be genuine and don't be overly enthusiastic. Use "Tit for Tat" approach. Be prepared for fast decisions based on the facts.

EXTROVERTS

CHARACTERISTICS : Want to influence. Are personable and enthusiastic in orientation. Like informality, warmth, friendless, openness. Short attention-span, not organized. DECISIONS made QUICKLY, based on EMOTIONS.

WHAT THEY WANT? Wants to get excited about the issues. Loses perspective, ignores others. Less sensitive to what is happening around them.

COMMON EXPRESIONS :

"This is great news." "Fantastic! "We can really do things with this.

WAYS OF DEALING :
Get them excited with an enthusiastic picture of the benefits to them. Talk about their hobbies and interests outside of the work environment. Tell stories. Personalize the process. Expect fast decisions based on emotions and level of excitement about the issue or project.

CHARACTERISTICS:

AMIABLES

Want to reach peace and agreement. Avoid conflict. Do not like change, pressure or feeling forced into decisions. Do not like to force opinions on others. Need time to think matters through, long attention span. DECISIONS made SLOWLY based on EMOTIONS.

WHAT THEY WANT ? Wants everyone to be happy. Develops relationships. Accepts losses and gives in too easily.

COMMON EXPRESSIONS :

"We have to think about the impact on the people." "I don't want to offend or upset people." "What about loyalty?

WAYS OF DEALING :

Go slowly, develop trust. Show that you really care about them and the "fairness" of the process. Be careful not to offend. Don't use high pressure tactics. Expect slow decisions based on working things through and comfort level with you.

ANALYTICS

CHARACTERISTICS : Executive approach, wants to bring about order. Orientated towards facts. Curious, soaks up information, fascinated by analysis, very precise. Loves gadgets. DECISIONS made SLOWLY based on FACTS. WHAT THEY WANT ? Wants all the facts to make a decision. Rigid organization and detached from other aspects of the process. Wants to win but based on principles and facts.

COMMON EXPRESSIONS :

"I need all the information you can get." "I need to think about this. "I don't want to jump into this, let's prepare an in-depth report.

WAYS OF DEALING :

Be accurate. Give information and go into as much detail as you can. Build rapport by talking about their interests. Expect slow decisions based on accumulating and analyzing of all data.

Conclusion

Every person usually has all types of personality style, but one style in dominance.

One tool is not enough to deal with all devices

Similarly, One personality is not enough to deal with all situation. So, in order to become jack of all trades

One should learn from a chameleon who changes its color according to the situation.

The Five Negotiating Styles

PAGE 16

Negotiation Styles

Compromising
Uses Cooperation Concedes minor objectives Divides needs to satisfy both parties Mutually exclusive objectives

Negotiation Styles

Accommodating
Relationship over objectives Sacrifice now / gain later Dont use on key issues Dont use if other party is lying

Negotiation Styles

Collaborative
Working together win/win Time-consuming
Problem solving / brainstorming

Dont use on minor points

Negotiation Styles

Competing
Aggressive style win/lose Intimidation / threats / hostility
Use if you need a quick decision

Mutually exclusive objectives

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High ball / Low ball

Tactics

Delay
Time pressure

Stonewalling
Bad temper Split the difference Good guy / Bad guy

PAGE 1

Challenging Conversations
How to handle difficult, emotional, stressful, angry and confrontational conversations

NITB

Important to set this up right

The Evil People What is your purpose? WS Is it important to you? You can only fix you This takes practice and work

NITB

The Keys to Speaking Accountably

Talk straightresponsibly Stay on purpose Collaborate - work at it Build ownership

Commit with integrity

Recover quickly

NITB

Your communications is accountable when

People can re-create your message People know what is important

People are emotionally and intellectually

engaged You have contributed to building a higher level of trust You get the results you were after

NITB Stimulus THINK What does this mean to me?

NO
Facts Truth Reality Logic

STORY

YES Fear Prejudice

Past Desire

EMOTION

SILENCE
Masking Avoiding Withdraw
Effective Communication

VIOLENCE
Threats Name Calling Globals

Big problems with the intentions assumptions

We really think we understand people
We assume intentions by impact

We assume the worst

Bad intentions = bad person

Bad assumptions lead to selective perception

Read: How not to fix the intentions assumptions page 6

Three Key Questions:

What

really happened? How did it really make me feel? What do I guess they intended?

Go from accusingto explaining

I - statements

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Five Levels of Confrontation

Understanding
Demand for Action

Reflection
Relationship is top priority Sincere effort to understand Active listening

I can see that you are upset and you feel like there is a lot of pressure on you. You mentioned that you are working on eight different projects, including the annual budget. That is very challenging. I can understand that you feel stressed.

I - statements
Relationship is important Build understanding by sharing Non-judgmental

I feel uncomfortable when you throw files down on my desk and raise your voice.

Diplomatic Disagreement
Reach understanding in a gentle way Mutual understanding Disagree agreeably Preserve relationship in conflict

I appreciate your position and realize you feel it will improve productivity. I believe we should wait until we get the new computers and make sure the software is compatible.

Gentle Confrontation
Build relationship / change behavior Validate / direct Non-threatening tentative Show concern and understanding

Combination of : - Reflection - Validation of worth / importance - I-statements - Indication of consequences

I know you think the Tampa project is a waste of time. I understand your feelings and appreciate that it may not seem like a top priority to you. Tom, you are one of the key people on our team, however, I feel frustrated when you agree to deadlines on that project and then turn work in days late. I am trying to manage all of our projects well, and this situation is causing me a lot of stress and extra work. If you continue to delay the project, it may mean that we dont meet our quarterly goals and we will all lose our chance for bonus.

Firm Confrontation
Focus on changing behavior Maintain / preserve relationship Desire a firm resolution Clear consequences for noncompliance

* Same as Gentle Confrontation plus:

This cannot continue. In the future, I would appreciate it if you would please honor the deadlines you commit to. It is very important to all of us.

PAGE 14

Your personal power comes from...

Stimulus
WORKSHOP page 14

GAP
Ideal You

Response

Not the person you are now, but the person you want to become!

Something to think about

Other people cannot:
Anger you you make yourself mad Depress you you make yourself sad Offend you you take offence Hurt your feelings your thoughts about

the situation create your own bad feelings

Summary of Key Points

Realize you are telling a story it is not the truth You create your own emotions you make yourself mad Identify and manage emotions express them rationally Use the Gap act like the Ideal You Use I statements assertive not aggressive Ask good questions listen and summarize What is your purpose?

What do I want? What do I not want? What do I want from the relationship? Am I acting in a way that will get me that?