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Plans

Win-Win. Negotiations. P. Plans. ®. M. WIN WIN. R. Maintenance. Relationships. A. Agreements. Ross Reck, P H D. MODULE ONE. UNDERSTANDING THE NEGOTIATION PROCESS. BASIC PHILOSOPHIES OF NEGOTIATING. Win-Lose Win-Win. TRADITIONAL NEGOTIATING METHODS. Positional Bargaining

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Plans

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  1. Win-Win Negotiations P Plans ® M WIN WIN R Maintenance Relationships A Agreements Ross Reck, PHD

  2. MODULE ONE UNDERSTANDING THE NEGOTIATION PROCESS

  3. BASIC PHILOSOPHIES OF NEGOTIATING • Win-Lose • Win-Win

  4. TRADITIONAL NEGOTIATING METHODS • Positional Bargaining • Principled Negotiating

  5. POSITIONAL BARGAINING Definition: A method of reaching an agreementeach party declares a position, argues on its behalf, and then makes a series of concessions to eventually reach a compromise

  6. ASSUMPTIONS OF POSITIONAL BARGAINING • A fixed pie • Competition between the parties • An adversarial relationship • True Needs are concealed • Short-term time horizon

  7. GOALS OF POSITIONAL BARGAINING • To win • To maximize the margin of victory • To get the biggest of the pie • To get the best possible agreement for me

  8. ACTIVITIES ASSOCIATED WITH POSITIONAL BARGAING • Declaring a position • Defending the position • Conceding from the position • Reaching a compromise

  9. RESULTS ASSOCIATED WITH POSITIONAL BARGAINING • Poor agreements • Stress for participants • Lengthy discussions • Poor performance • “Get even” attitude

  10. WHY IS POSITIONAL BARGAINING USED?

  11. PRINCIPLED NEGOTIATING • Definition: A method of reaching a mutually satisfactory agreement by utilizing four basic principles

  12. THE FOUR BASIC PRINCIPLES ARE: • Separate people from problems • Focus on interests, not positions • Invent options for mutual gain • Insist on objective criteria

  13. ASSUMPTIONS OF PRINCIPLED NEGOTIATING • An expandable pie • Cooperation is possible

  14. GOAL OF PRINCIPLED NEGOTIATING • To achieve a mutually satisfactory agreement • To get the best possible agreement for us

  15. ACTIVITIES ASSOCIATED WITH PRINCIPLED NEGOTIATING • Participants assume the role of problem solvers • Participants attempt a consensus by: • Exploring mutual interests • Developing multiple options • Being tough on the problem, but easy on the people

  16. RESULTS ASSOCIATED WITH PRINCIPLED NEGOTIATING • A mutually beneficial agreement • Less stress • Quicker and more productive discussions • Better performance on the part of both parties

  17. PROBLEMS WITH BOTH TRADITIONAL METHODS OF NEGOTIATING • They both assume the end result of a negotiation is an agreement • On-going relationships are not intentionally developed or managed • Follow-through is not managed • Neither method is based on an operational model that truly depicts the overall negotiation process

  18. DEVELOPING A BETTER AND MORE COMPLETE METHOD OF NEGOTIATING • Back to square one—the roots of negotiation • The Latin root word for negotiation is OTIO • The Latin word meaning the opposite of otio is: ___________ • Conclusion: Negotiation is first and foremost a ______ process

  19. WIN-WIN NEGOTIATING • Definition: A method of conducting business where both parties accomplish their respective interests through the pursuit of common interests

  20. ASSUMPTIONS OF WIN-WIN NEGOTIATING • An expandable pie • A high level of trust

  21. HOW WIN-WIN WORKS • Trust occurs • Information gets shared • The pie expands(on its own) • Win-Win happens(it’s a result of the trust being in place)

  22. PRAM MODEL P Plans ® M WIN WIN R Maintenance Relationships A Agreements

  23. MODULE TWO STEPS IN THE WIN-WIN NEGOTIATION PROCESS

  24. STEP 1: ESTABLISH A WIN-WIN PLAN • Identify those people who stand between you and success or failure • Determine what you want from them • Determine what they want from you • Wants • Needs • Within this context ask yourself, “what can I do for these other people that will motivate them to do what I want done in return?”

  25. STEP 2: DEVELOP WIN-WIN RELATIONSHIPS • Plan activities which allow relationships to develop • Cultivate your relationships • Don’t get down to business to quickly

  26. HOW RELATIONSHIPS ARE CULTIVATED SOCIALIZING LIKING BONDING TRUSTING REFERENCES The relationship development process

  27. FORM WIN-WIN AGREEMENTS • Verify the other party’s wants and needs • Implement your Win-Win plan • KEY: Talk to them about what they want and show them how to get it • Engage in mutual problem solving • Finalize the agreement

  28. STEP 4: PERFORM WIN-WIN MAINTENANCE • Maintain your agreements • Maintain your relationships • Maintain your plan

  29. MODULE THREE • PUTTING THE WIN-WIN NEGOTIATION PROCESS TO WORK

  30. WHY IS IT SO IMPORTANT FOR PEOPLE TO FEEL LIKE WINNERS? • It’s a fundamental aspect of human behavior • People have an insatiable need to enhance their self-image • People are very willing to go the extra mile if they see it as enhancing their self-image • High performance results when you allow people to feel like winners in exchange for their going the extra for you

  31. USING THE PRAM MODEL AS A DIAGNOSTIC TOOL • Identify the true cause of the problem • Plan what needs to be done to solve the problem • Put your plan into action • Common negotiation problem situations: • Cold calls • Objections • Dissatisfied or irate customers or employees

  32. PRAM MODEL P Plans ® M WIN WIN R Maintenance Relationships A Agreements

  33. KEYS TO MAKING THE WIN-WIN NEGOTIATION PROCESS WORK • Balance • Integrity • Patience

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