Art of Negotiation

1. Art of Negotiation So you want to be a good negotiator?

2. Negotiation - Definition • a discussion intended to produce an agreement • process to reach or achieve an agreement • coming to or agreeing terms • transaction of business aimed at reaching a meeting of minds among the parties • bargaining

3. What is Negotiation? • Negotiation is about both sides reaching a good outcome • Win-win situation • Negotiation isn’t just about getting your own way or giving in • that is what happens when people fail to negotiate • Negotiation isn’t persuading other people to accept your point of view

4. Medium for Negotiation • Face-to-Face meetings foster rapport & offer fewer openings for misunderstanding & deceit • Phone if tensions are already high to reduce the possibility of pressure tactics • E-mail allows you to be less inhibited in a negotiation

5. Rules of Negotiation • Find out what the needs of the other person are • Try to meet them without losing sight of your own goals • Don’t assume that any other intelligent person must think the same way • Don’t have such a high regard for your own opinions & motives

6. Cross-cultural Negotiation • Western cultures - United States, United Kingdom & Europe • seem more concerned with maintaining individual rights • more likely to resort to competition & problem solving • Developing nations - Colombia, Pakistan, Taiwan • focus more on preserving relationships • prefers more indirect means of arriving at a solution

7. Qualities of Negotiation • Know what you want • Be shrewd - look for a win-win situation • Be a good listener - open to what the other side is looking for & try to accommodate that • Identify key issues quickly • Be creative, patient & seek common ground - have an empathy for people

8. Forces of Negotiation • Time • The person who has the most time wins • 80% of concessions are made in the last 20% of the time • Information • The more knowledgeable you are, the better a deal you will get • Options • Always keep your options open. Have a fall-back position • Approach • Keep focused on your goals & priorities • Have high expectations & you will achieve high outcomes

9. Negotiation Plan • Set out to reach a win-win situation. • Both sides should leave the negotiation feeling they’ve come away with something and that they’re satisfied. • Say something positive & appreciative • It will increase the goodwill on both sides • Keep smiling & being pleasant • sooner or later you’ll get your point across • Be clear about your bottom line • Decide, in advance, what really matters & what doesn’t • where you’ll compromise & where you won’t • Then stick to it

10. Negotiation Plancont • Give yourself room to manoeuvre • Make sure you have something to offer the other person, as well as something you want • Listen & keep listening • understand what the other person’s point of view • shows respect and good intentions, and • will make the other person feel valued • Keep options open • End the negotiation politely, and with a smile

11. Tactics • 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 • Know when to fold

12. Tacticscont • Know your bottom line • be prepared to stick to it • Never have "Take it or leave it" ultimatum • Always leave door open • Walk away with "Looks like we can't agree today” • “Let's sleep on it and talk again later."

13. Discussion points • What type of information do you need to have before you go into a negotiation? • What does win-win really mean? • What should you listen for in a discussion? • If time is not on your side, what do you do? • What the ways in which you are different from the person you are negotiating with? • Who is your role model?