LIBA TRAINING PPT APPROVAL PAGE

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2. The Art of Negotiation Presented by LIBA Feb, 2017 V2.0

3. What is Negotiation?

4. Definition • Negotiation is a process of communication in which the parties aim to "send a message" to the other side and influence each other.

5. Negotiation • Something that we do all the time , not only for business purposes. • Usually considered as a compromise to settle an argument or issue to benefit ourselves as much as possible. • Not always between only two people: it can involve several members from two parties.

6. Two relatively distinct types of negotiation • Distributive negotiations • Integrative negotiations

7. Distributive Negotiations • Often referred to as 'The Fixed Pie' • Usually involves people who have never had a previous interactive relationship, nor are they likely to do so again in the near future. • Example: Purchasing products or services, like when we buy a car or a house. • Ours and their interests are usually self serving.

8. Integrative Negotiation • The process generally involves some form or combination of making value for value concessions, in conjunction with creative problem solving. • Form a long term relationship to create mutual gain. • Often described as the win-win scenario .

9. Therefore; • Agreements can be successfully implemented only if the relevant parties and interests have been represented in the negotiations. • So, all of the interested and affected parties must be represented. And, negotiators must truly represent and have the trust of those they are representing.

10. Is getting what YOU want from the other person……

11. It helps resolve conflicts…. with Maximum Profit* for both sides! * at proper conditions.

12. Poor negotiation skills LIMIT your ability to reach agreement

13. Importance of negotiations?

14. Negotiation consist of FOUR basic components

15. 1.Preparation

16. 2.Objectivity

17. 3.Strategy and Tactics

18. 4.Technique

19. Can you and your team name three things that make you a unique negotiate counterpart & business partner?

20. Information Needs Negotiators should know: Other parties’ needs & interests Available resources of the other party Reputation and styles of the other parties Ability and authority of other party to make agreements Strategies & tactics the other party might utilize

21. Negotiation Game Plan Important to be prepared for any situation – competitive or cooperative Steps to Prepare for Negotiation Organize Thoughts Identify Ideal Outcomes Develop Contingencies

22. Negotiation What is involved Know what your opposition wants What is valuable to you Approach - "People like to help nice people. Befriendly! They like to hurt jerks." So be nice! -Prepare, prepare, prepare! -Never let your ego negotiate. -Always let the other person save face. -Don't name a price first. -Never accept the first offer

23. Negotiating Establish direct contact Be fairly open with your intentions Have confidence and power Keep in control Aim high Remain flexible

24. Key Steps to an Ideal Negotiation Process

25. Key Steps to an Ideal Negotiation Process

26. Key Steps to an Ideal Negotiation Process Information using Assemble your case Bidding Each party states their “opening offer” Each party engages in “give and take” Closing the deal Build commitment Implementing the agreement

27. Getting Ready to Implement the Strategy: The Planning Process Define the protocol to be followed in the negotiation Where and when will the negotiation occur? Who will be there? What is the agenda? Define the issues Define your interests Why you want what you want

28. Getting Ready to Implement the Strategy: The Planning Process Analyze the other party: Why do they want what they want? How can I present my case clearly and refute the other party’s arguments? Know your limits and alternatives Set your objectives (targets) and opening bids (where to start)

29. Planning to negotiate Relationship Add Value Goods- service Dialogue Dialogue Negotiation Results Win-win

30. Forces of Negotiation Time – The person that has the most time wins. You are not pressured into making decisions. 'The bad news is time flies. The good news is you're the pilot.' (Yves Miserez) Information – The more knowledgeable your are, the better a deal you will get. Options - Always keep your options open. Have a fallback position. At the same time, don't give the other side too many options. It helps to negotiate one issue at a time.

31. Six Paradigms of Human Interaction used in Negotiations. I Win, You Lose. I Win, You Win. I Lose, You Lose. I Lose, You Win.

32. No Deal I Win

33. Obstacles to Negotiation • Sometimes people fail to negotiate because they do not recognize that they are in a bargaining position. • Or, they may recognize the need for bargaining but may bargain poorly because they do not fully understand the process and lack good negotiating skills.

34. Therefore; • Parties must be aware of their alternatives to a negotiated settlement :Weaker parties must feel assured that they will not be overpowered in a negotiation. :Parties must trust that their needs and interests will be fairly considered in the negotiation process.

35. Obstacles to Negotiation • Negotiation seems to bring conflicts . Any misunderstanding that arises between them will reinforce their prejudices and arouse their emotions.

36. Therefore; • To combat perceptual bias and hostility, negotiators should attempt to gain a better understanding of the other party's perspective and try to see the situation as the other side sees it.

37. Obstacles to Negotiation • if the "right" people are not involved in negotiations, the process is not likely to succeed.

38. Therefore; • Agreements can be successfully implemented only if the relevant parties and interests have been represented in the negotiations. • So, all of the interested and affected parties must be represented. And, negotiators must truly represent and have the trust of those they are representing.

39. Preparation To brush up your ‘win-win’ negotiation skills…

40. What is 'win-win' negotiation • For a negotiation to be win-win“, both parties should feel positive about the negotiation once it’s over.

41. GOALS… • What you want to get out of the negotiation? • What you think the other person wants?

42. TRADES… • What you and the other person have that can be traded for the purpose of negotiation. • What do you each have that the other wants? • What are you each comfortable giving away?

43. ALTERNATIVES… • If you don’t reach agreement with the other person, what alternatives do you have? • Are these good or bad? • How muchdoes it matter if you don’t reach agreement? • Does failure to reach agreement cut you out of future opportunities? • What alternatives the other person might have?

44. RELATIONSHIPS… • What is the history of the relationship? • Could or should this history impact the negotiation? • Will there be any hidden issues that mayinfluence the negotiation? • How will you handle these?

45. EXPECTED OUTCOMES… • What outcome will people be expecting from the negotiation? • What has the outcome been in the past, and what precedents have been set?

46. THE CONSEQUENCES… • What are the consequences for you of winning or losing this negotiation? • What are the consequences for the other person?

47. POWER… • Who has what power in the relationship? • Who controls resources? • Who stands to lose the most if agreement isn’t reached? • What power does the other person have to deliver what you hope for?

48. POSSIBLE SOLUTIONS… Based on all the consideration…. What possible compromises might there be?

49. Summary We use negotiation in everything we do Do it the best way to achieve maximum benefit Planning is important when negotiating. Be prepared. Only use knowledge and experience you have to achieve your objective. Have confidence Keep in control Aim high; but don’t underestimate the opposition. Concentrating on 10% positive issues will bring you much further then being busy worrying on 90% negative issues.

50. To be successful in negotiations you must: • Define your goals • Be focused on interests • Speak their language • Communicate • Be open-minded • Be flexible • Appearance • Don`t worry!