Best Negotiating Practices Workshop Illustrations...Universal Bargaining Skills ! Think big and ask...

Workshop Illustrations

Best Negotiating Practices®

Copyright © Watershed Associates, Inc. 1.202.244.9220

www.WatershedAssociates.com page 1

Slide 1 www.WatershedAssociates.com

by Marianne Eby, Esq.


7 Keys for Master Negotiators

1.202.244.9220 [email protected]

presented to

Slide 6

Successful Negotiators

Attitude

•  Believe in win-win •  Value dialogue •  Seek to understand •  Not quick to judge •  Give-take mentality •  Confident from

preparation •  Realistic

Behaviors

•  Flexible •  Creative •  Patient •  Ethical •  Less adversarial •  Active listener •  Emotionally mature •  Persuasive

Slide 12

Agenda

q  Foundation for Negotiations

q  Seven Keys to Successful Collaborative Negotiations

q  Wrap Up





Slide 14

Foundation for Negotiations

What you need to know before the 7 Keys

q  Primary Negotiation Strategies

q  Framework for Collaborative Negotiations

q  Introduction to Best Negotiating Practices

q  The Role of Persuasion and Argument

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What Negotiating Strategy to Use?

hi

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low

high low

Impo

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f rel

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p &

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Importance of outcome

Situation Awareness

Collaborator (win-win)

Avoider (lose/lose)

Competitor (win-lose)

Accommodator (lose/win)

1 4 & 5

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The Goal of collaborative negotiations is to ensure everyone gets a bigger piece of a bigger pie.

Expanding the Value Pie Through Collaboration





Slide 20

Foundation for Negotiations





q  The Role of Persuasion

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A Framework for Collaborative Negotiations

Explore value Getting ready

Discover value Identifying interests

Create & distribute value Manage concessions

Capture value Ensuring performance

Expand value Manage relationships

Bargain

Prepare

Exchange

Execute

Conclude

Supported by 22 Best Negotiating Practices® 1 6

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Foundation for Negotiation










Slide 26

Universal Bargaining Skills

q  Think big and ask for what you want. (12) q  Be ready to challenge first offers (13) q  Never say no…or yes (14) q  Make slower, smaller concessions (15) q  Explore options: The Negotiator’s Probe (16) q  Address their needs – creative concessions (17)

Bargain 12 to 17

1 7

Slide 27

Believe in win-win, mutual gain. Win-win is an attitude, not an outcome. 2

Slide 28

Foundation for Negotiation










Slide 29

How is persuasion different than negotiation?

1 10

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Influence Tools and Methods

Persuasion Negotiation Payment Power

Command

Coercion

Threat

Reward

Compensation

Material Incentives

Bribery

Joint Decision

Exchange

Bargaining

Give & take Selling

Lobbying

Argument Presentation

Force

Today’s Focus

Slide 34

Litigation v. Negotiation

Litigation Collaborative Negotiation

Public Private Discussions

Takes more time Takes less time

Relatively expensive Relatively inexpensive

Argue & Persuade for success Trade for success

Third party decision makers Parties as decision makers

Competitive: Win-Lose/Lose-Lose

Collaborative: Win-win

Alternative is settlement/ plea negotiations

Alternative is litigation or appeal





Slide 36

Agenda



q  Wrap Up

Slide 37

7 Keys to Successful Collaborative Negotiations

1.  Address interests 2.  Set parameters 3.  Challenge first offers 4.  Never say “No” 5.  Manage concessions 6.  Probe endlessly 7.  Think creatively

Slide 39

The goal of Collaborative Negotiations is to satisfy your and their Interests.

Positions Interests What people say they want

Why they want it -- motivators

What people say they will or will not do

Fears and aspirations

Demands

Concerns

Subjective wants

Objective needs





Slide 43

The goal of Collaborative Negotiations is to satisfy your and their Interests.

Position Interest Sr. Attorney

Sr. Attorney tells you to start the brief now, a month earlier than previously scheduled

Sr. Attorney wants to be assured that the brief will get done on time

Jr. Attorney

I can’t start until next month, as originally scheduled

I have too much on my plate this month at work and personally

How to address both parties’ interests?

Slide 50



Slide 51

Think big, ask for what you want

Goal

Least Acceptable Agreement

Best Alternative To a Negotiated Agreement

Defining Your Negotiating Opportunity

Most Desired Outcome

12

1 8 & 9





Slide 54

Think big, ask for what you want Bargain

Do we always ask for what we want?

12

Slide 63


1.  Address interests

2.  Set parameters 3.  Challenge first offers 4.  Never say “No” 5.  Manage concessions 6.  Probe endlessly 7.  Think creatively

Slide 64

Be ready to challenge first offers.

q  You both can always do better!

q  More creativity will flow.

q  Consider how they are going to feel.

13





Slide 69



Slide 73

Never say No…or Yes

The Negotiated Yes…"Yes, if" q Allows you to say yes q Validates your opening offer q More engaging q More likely to generate creativity

YES! q  Invalidates last offer q  Violates trust q  Cuts off creativity q  Removes give-and-take

NO! q  Ends discussions q  Is face losing q  Eliminates options

14

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q  Give value, but don’t rush

q  Link the concession to a trade of equal value

q  Make progressively smaller concessions

Use your concession pattern to communicate your message

15

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A 300 B 300 C 300 D 300 E 300

Pattern MDO 1 2 3 Goal

LAA = 150

300 300 300 200 275 250 225 200 295 285 265 200 200 200 200 200 250 220 205 200

Make smaller concessions

Concession Patterns

Bargain 15

Slide 78

q  Make concessions (good news) in installments, but deliver bad news all at once

q  Label your concessions: The reason you are making it

q  Avoid exactness

q  If trust levels are low or interests are not well known, Make Contingent Concessions

Making and Managing Concessions

Bargain





Slide 81



Slide 83

To engage in a sincere

discussion of the issues that

results in collaboration to reach

mutually beneficial outcomes.

Purpose of The Negotiator’s Probe

The Negotiator’s Probe 16

Slide 84

1.  Build rapport and test assumptions

2.  To get information

3.  Isolate real areas of interest and concern

4.  When the other party says no to your offer

5.  When you need to say no to them without saying no

Reasons to Probe






Slide 86

q  Open-ended questions should ask why… q  …why not, who, what, how, or when q  On-point, succinct, consultative questions q  Designed to get information q  Look for understanding interests q  Exploring for options q  Generating creative concessions


Slide 87






Reasons to Probe


Slide 88

An objection, honestly stated, is another way of inviting you to satisfy a concern or need that you did not address earlier in your presentation or proposal

When THEY say “No”: Handling Objections

No! No!





Slide 89

1.  Need more information on the other side? 2.  Need more information on Your solution, position,

evidence, organization, case law, market, etc..? 3.  Need more information on stakeholders? 4.  Are you talking to the right person/people? 5.  Maybe this is not a good agreement? 6.  Should you execute your BATNA?

How well did you prepare?


Slide 90

You want to find out:

1.  Is it really No?

2.  What if they don’t get an agreement? (What is

their BATNA?)

3.  Can you beat their BATNA?

4.  …or are they testing your resolve?


Slide 93






Reasons to Probe






Slide 94

The “Crunch”

q  The Tactical Probe and the most universal of probes q  A request for a free concession q  An objection to an offer (say no…without saying no) q  A maneuver to get the other side to reconsider q  A way to get information and generate options

The Tactical Probe

(When you need to say no to them without saying no)

1 33

Slide 95

Common “Crunches”

The Tactical Probe

q  Is there any flexibility on that? q  That’s not what we expected. q  I just can’t get there. q  There must be another way. q  Using silence for 5-7 seconds as a Crunch q  Feigning an emotional reaction – surprise, disgust, etc..

1 33

Slide 98

The Tactical Probe

q  Use crunches that fit your own personality q  Indicative of where you are relative to your goal q  Consistent with the situation and relationship q  Once you crunch, allow them to respond q  If it works, crunch again

What crunch should YOU use?

1 33





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Slide 116

Always think creatively

q  A low cost to You but a high value to them q  …or a low cost to them, high value to you q  Focus on Interests and needs, not positions or demands q  Put yourself in their shoes q  Avoid zero-sum exchange vs. value creation q  Will be different from situation to situation

Creative concessions are “painless”

17

Slide 119

Agenda



q  Wrap Up





Slide 124

Additional Resources

q  www.WatershedAssociates.com - Blog

q  Negotiating Tips: Follow Watershed on @NegotiatingTips

Slide 125

Paradigm Shifts With your negotiator’s hat on, shift from

q  Offer/Counter-Offer Exploring for value

q  Arguing/Advocating Negotiating/Trades

q  Inquisitorial tone Open ended questions

q  Positions Interests

q  Ultimatums Options

Slide 128 www.WatershedAssociates.com

by Marianne Eby


7 Keys for Master Negotiators

1.202.244.9220 [email protected]

presented to

Best Negotiating Practices Workshop Illustrations...Universal Bargaining Skills ! Think big and ask...

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Transcript of Best Negotiating Practices Workshop Illustrations...Universal Bargaining Skills ! Think big and ask...