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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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Win-Win Negotiations P Plans ® M WIN WIN R Maintenance Relationships A Agreements Ross Reck, PHD
MODULE ONE UNDERSTANDING THE NEGOTIATION PROCESS
BASIC PHILOSOPHIES OF NEGOTIATING • Win-Lose • Win-Win
TRADITIONAL NEGOTIATING METHODS • Positional Bargaining • Principled Negotiating
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
ASSUMPTIONS OF POSITIONAL BARGAINING • A fixed pie • Competition between the parties • An adversarial relationship • True Needs are concealed • Short-term time horizon
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
ACTIVITIES ASSOCIATED WITH POSITIONAL BARGAING • Declaring a position • Defending the position • Conceding from the position • Reaching a compromise
RESULTS ASSOCIATED WITH POSITIONAL BARGAINING • Poor agreements • Stress for participants • Lengthy discussions • Poor performance • “Get even” attitude
PRINCIPLED NEGOTIATING • Definition: A method of reaching a mutually satisfactory agreement by utilizing four basic principles
THE FOUR BASIC PRINCIPLES ARE: • Separate people from problems • Focus on interests, not positions • Invent options for mutual gain • Insist on objective criteria
ASSUMPTIONS OF PRINCIPLED NEGOTIATING • An expandable pie • Cooperation is possible
GOAL OF PRINCIPLED NEGOTIATING • To achieve a mutually satisfactory agreement • To get the best possible agreement for us
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
RESULTS ASSOCIATED WITH PRINCIPLED NEGOTIATING • A mutually beneficial agreement • Less stress • Quicker and more productive discussions • Better performance on the part of both parties
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
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
WIN-WIN NEGOTIATING • Definition: A method of conducting business where both parties accomplish their respective interests through the pursuit of common interests
ASSUMPTIONS OF WIN-WIN NEGOTIATING • An expandable pie • A high level of trust
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)
PRAM MODEL P Plans ® M WIN WIN R Maintenance Relationships A Agreements
MODULE TWO STEPS IN THE WIN-WIN NEGOTIATION PROCESS
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?”
STEP 2: DEVELOP WIN-WIN RELATIONSHIPS • Plan activities which allow relationships to develop • Cultivate your relationships • Don’t get down to business to quickly
HOW RELATIONSHIPS ARE CULTIVATED SOCIALIZING LIKING BONDING TRUSTING REFERENCES The relationship development process
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
STEP 4: PERFORM WIN-WIN MAINTENANCE • Maintain your agreements • Maintain your relationships • Maintain your plan
MODULE THREE • PUTTING THE WIN-WIN NEGOTIATION PROCESS TO WORK
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
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
PRAM MODEL P Plans ® M WIN WIN R Maintenance Relationships A Agreements
KEYS TO MAKING THE WIN-WIN NEGOTIATION PROCESS WORK • Balance • Integrity • Patience