Deadlock Breaking Negotiations
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Transcript of Deadlock Breaking Negotiations
Deadlock Breaking NegotiationsDeadlock Breaking Negotiations
Four Techniques to move Negotiations beyond
Deadlock
By F. Michael Babineaux, CPSM, C.P.M.President/CEO
Babineaux Educational Services and Training, Inc.www.BESTraining.com
901.853.0539
for
Who Am I?
• F. Michael “Mike” Babineaux, CPSM, C.P.M.• Experience
– 40 years Supply Chain Management Experience
– 30 year FedEx Veteran
• SCM Educator and TrainerBabineaux Educational Services and Training, Inc.
www.BESTraining.com
901.853.0539
My Stories of No
• Breakfast with spouse and a new car– Don’t be ridiculous – can’t afford
• Carefully prepared proposal with the boss– Been there, done that, didn’t work – next item
• Returning toaster and store policy– No sales slip – no return
• Contract closing– 5% increase or no sale
Agenda & Direction• Foundation
– Four Facts of Negotiation– Definitions– Negotiation Flow– Negotiation Objectives
• Deadlock Causes
&
• Breakthrough Techniques
Four Facts of Negotiating Life
1. Most things you want are not in your immediate control
• A day off with pay would not normally be within your total control.
• For those things, you must negotiate
Four Facts of Negotiating Life
2. Everybody has different wants, needs and desires
• You may want information, your colleague may want recognition.
• Each for their own reasons, and different.
Four Facts of Negotiating Life
3. A particular approach may not work all the time
• Just like fishing, sometimes you can catch 'em on worms
• Other times, they just don’t bite
Four Facts of Negotiating Life
4. To be forewarned is to be forearmed
• It's a good strategy to plan, prepare and practice.
• You'll be much more effective, if you've thought about it.
Key PointKey Point
“You don’t get what you deserve, you get what you negotiate”
Chester Karrass
Agenda & Direction
• Foundation– Definitions
• Deadlock Causes
&
• Breakthrough Techniques
Defining the Subject
• Negotiating - Give as little as you can while getting as much as you can
Defining the Subject
• Bargaining - Give as little as you can while getting as much as you can– Bargaining has its place
Defining the Subject
A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or
objectives
Negotiation
Negotiation Strategy Matrix
Business Impact
Marketplace Complexity
Low
High
LowHigh
StrategicLeverage
Routine Bottleneck
Negotiation Strategy MatrixStrategic Quadrant Strategy
• Focus on Building Relationships
– Collaborative or interdependent relationships (e.g. Strategic Alliances)
Business Impact
Marketplace Complexity
Low
High
Low High
StrategicLeverage
Routine Bottleneck
Defining the Subject
A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or
objectives
Negotiation
Defining the Subject
A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or
objectives
Negotiation
Key Negotiation Goals and Results
• Goal – Have a collaborative relationship
• Results - For the future
Defining the Subject
A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or
objectives
Negotiation
Key Negotiation Goals and Results
• Goal - Mutually Satisfying Agreement
• Results - So that it happens
Key PointKey Point
Don’t confuse Bargaining
with Negotiations
Agenda & Direction
• Foundation– Negotiation flow
• Deadlock Causes
&
• Breakthrough Techniques
Negotiation Flow Sequence
Entry
Exploration
Give and Take
Closing
Negotiation Flow
Agenda & Direction
• Foundation– Negotiation Objectives
• Deadlock Causes
&
• Breakthrough Techniques
Negotiation Objectives
Negotiation Flow Negotiation Objective
Entry
Exploration
Create Favorable ClimateGetting to know them
Give and Take
Closing
Creating a Favorable Environment
Describe Positions
–The more discussion, the more understanding
Creating a Favorable Environment
Describe Positions
– The more discussion, the more understanding
– Ask questions, don’t make statements
– Look for the reason for their positions
– Look for common ground
“You can lead a horse to water but,
you can’t make it drink”
Unless you run it around the pond long enough to make it thirsty.
Creating a Favorable Environment
Key PointKey Point
Set the stage for a favorable outcome
Agenda & Direction
• Foundation
• Deadlock Causes
&
• Breakthrough Techniques
Deadlock Causes During Negotiation Flow
PersonalityDifferences
Negotiation Flow Deadlock CauseNegotiation Objective
Entry Create a Favorable Climate
Getting to know them
Defining the Subject
A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or
objectives.
Negotiation
Observable Behavior of Negotiators
Quick Decisions No Detail Gut Feelings
Relaxed Relationships Habits/Routines
Quick Decisions No Time Wasting Control
Slow Decisions Detailed Calm
Facts
Feelings
Ask Assertive Tell Assertive
Opposites DO NOT Attract
Personality Differences
Do you see
The Young Woman
or
The Old Woman
Perception vs RealityPerception vs RealityGetting To Yes by Fisher and Ury
“Understanding the other side’s thinking is not simply a useful activity that will help you solve your problem.”
“Their thinking is the problem.”
“As useful as looking for objective reality can be, it is the reality as each side sees it that constitutes the problem in a negotiation and opens the way to a solution.”
“Ultimately, however, conflict lies not in objective reality, but in people’s heads.”
Dealing With PerceptionIssues
• Before Negotiation– How to Prevent
Perception Challenges• During Negotiation
– How to Overcome Perception Challenges
• Before Negotiation– Look at it from their point of view
• How do they see the issue?
– Don’t Blame them for your problems
• That makes them defensive
– Don’t assume the worst• You’ll make it worst than it is
Dealing With PerceptionIssues
• During Negotiation– Get them involved
• Part of solution – not problem
– Help them save face• Need to reconcile position
with principal
– Act inconsistently with their perception
• Sending messages different than expected
Dealing With PerceptionIssues
Beware of Perceptions
People will Act on their Perceptions
Key PointKey Point
Negotiators are People FirstUnderstand their Personalities
Deadlock Causes and Breakers
PersonalityDifferences
Negotiation Flow Deadlock BreakerDeadlock Cause
EntryTake it to
Another Place
Take it To Another Place
How to...
– Pause and say nothing
– Take a Time out
While there...
– Examine how you feel
– Keep eye on Prize
Take it To Another Place
How to...
– Pause and say nothing
– Take a Time out
While there...
– Examine how you feel
– Keep eye on Prize
Take it To Another Place - Key Point
Don’t Let Them Get To You
Negotiation Objectives
Negotiation Flow Deadlock CauseNegotiation Objective
Entry
Uncovering Interest Asking QuestionsExploration
Create a Favorable ClimateGetting to know them
PersonalityDifferences
Positions Versus Interest
• Position = A stance that excludes the possibility of any other– What people say they want
• Interest = What people really want– Why they take a position
Positions Versus InterestPositions Versus Interest
The Orange ProblemThe basic problem in a negotiation lies not in conflicting positions, but in the conflict of interests.
Positions Versus InterestPositions Versus Interest
Why is it important to know the difference?
That’s where solutions are to be found.
Three Kinds of InterestsThree Kinds of Interests• I have a car to sell• You want to buy a car
I want $1000 for the car
You want to pay $900 for the car
• You’re looking for a red car
• I’ve got a green car
Key PointKey Point
Satisfying interests is Key to Solutions
Deadlock Causes During Negotiation Flow
Negotiation Flow Deadlock CauseNegotiation Objective
Entry
Uncovering Interest Asking QuestionsExploration
Create a Favorable Climate Getting to know them
You don’tunderstand
PersonalityDifferences
Deadlock Causes and Breakers
PersonalityDifferences
Negotiation Flow Deadlock BreakerDeadlock Cause
EntryTake it to
Another Place
ExplorationYou don’t
understandWalk in their
Shoes
Walk in Their Shoes - How to
Listen Actively
Paraphrase
Ask for Corrections
Walk in Their Shoes - How to
Acknowledge a point
Acknowledge their Feelings
Offer Apologies
Walk in Their Shoes - How to
Agree whenever you can
Accumulate Yeses
Tune in to their Wavelength
Walk in Their Shoes - How to
Acknowledge their person
Their Authority
Their Competence
Covey Quote
The Fifth Habit – Seek first to understand . . .
“The psychological equivalent of air is to feel understood.”
Stephen R. Covey
Walk in Their Shoes – Key Point
SeekFIRST
ToUnderstand
Negotiation Objectives
Negotiation Flow Deadlock CauseNegotiation Objective
Entry
Uncovering Interest Asking questions
Exploration
Create Favorable Climate Getting to know them
Give and Take Developing Alternatives
Stretch your thinking
You don’tunderstand
PersonalityDifferences
Common Negotiator MindsetCommon Negotiator Mindset
Assume only a fixed Pie
Develop Mutual Gain Develop Mutual Gain AlternativesAlternatives
• Tips for Successful Alternative Invention– Invent before judging
• Like Brainstorming
– Invent a wide range of options• Think out of the box
Stretching Your ThinkingStretching Your ThinkingThe Nine Dot Exercise
Connect all dots with only 4 straight lines and without lifting
your pen
Developing AlternativesDeveloping Alternatives10 Killer Phases10 Killer Phases
Killer Phrases– A good idea, but . . .– It’s against policy– Be practical!– That’s all right in theory,
but . . . – The boss won’t go for it
And these– Are you serious?!– Don’t be ridiculous– That’s dumb– We tried that before– That wasn’t what I
had in mind
Key PointKey PointDon’t assume
a fixed Pie
Deadlock Causes During Negotiation Flow
Negotiation Flow Deadlock CauseNegotiation Objective
Entry
Uncovering Interest Asking QuestionsExploration
Create a Favorable Climate Getting to know them
You don’tunderstand
PersonalityDifferences
Exploration Developing Alternatives
Stretch your thinkingResistance to
your ideas
Resistance? What causes it?
Not their idea - Not Invented Here
Interest unmet - Just overlooked
Fear losing face - Looking bad
Too much too fast - Easier to say no
Deadlock Causes and Breakers
PersonalityDifferences
Negotiation Flow Deadlock BreakerDeadlock Cause
Entry Take it toAnother Place
ExplorationYou don’t
understandWalk in their
Shoes
Give and TakeResistance to
your ideasBridge
the Gap
Bridge the Gap – What is it ?
A Way to Get to Yes
Not their idea - Not invented here
Interest unmet - Just overlooked
Fear losing face - Looking bad
Too much too fast - Easier to say no
Involve them
Look beyond position
Give them an out
A little at a time
Make it easy
for them to say
YES
Bridge the Gap – Key Point
Negotiation Objectives
Negotiation Flow Deadlock CauseNegotiation Objective
Entry
Uncovering Interest Asking questions
Exploration
Create Favorable ClimateGetting to know them
Give and Take Developing Alternatives
Stretch your thinking
You don’tunderstand
PersonalityDifferences
Closing Agreeing to best
Use Objective Criteria
Resistance toyour ideas
Using an Objective CriteriaUsing an Objective Criteria
• Examples– Market value– Tradition/Precedent– Fairness/Equal Treatment– Others Judgment
Using an Objective CriteriaUsing an Objective Criteria
• How to do it - – Be open to what criteria to use– Jointly agree– Ask questions
Using an Objective CriteriaUsing an Objective Criteria
• Sample questions to ask– What’s fair?– How do others do it?
Using an Objective CriteriaUsing an Objective Criteria
• Basic Points– Agree first on the principle – Various ways to launch an
independent criteria discussion• Bring up the general idea of an objective
criteria• Suggest one or more
Key PointKey Point
Defer to a measuring stick
- independent of your will
Deadlock Causes and Breakers
PersonalityDifferences
Negotiation Flow Deadlock BreakerDeadlock Cause
Entry Take it toAnother Place
ExplorationYou don’t
understandWalk in their
Shoes
Give and TakeResistance to
your ideasBridge the Gap
ClosingThey don’tunderstand
Guidelines for Making Offers• Presenting Offers
– Propose - Don’t Foreclose• What if we . . .
– Present as a Gain• With this you can . . .
– Be Specific• That’s 16 oz per . . .
Guidelines for Making Offers• First Offers
– When – Clear Specs– How – Don’t start with bottom line
Guidelines for Making Offers• Evaluating an Offer
– Does it Satisfy?– Are you Happy?
Guidelines for Making Offers• Making Counteroffers
– What’s Acceptable– Combined Interest
• Benefits should be talked about before actual price
How to Talk Price
• If offer good, say so
• If offer not great, say you are open to counter offer
How to Talk Price
• Would you accept the offer if someone made it to you
How to Talk Price
Deadlock Causes and Breakers
PersonalityDifferences
Negotiation Flow Deadlock BreakerDeadlock Cause
Entry Take it toAnother Place
ExplorationYou don’t
understandWalk in their
Shoes
Give and TakeResistance to
your ideasBridge the Gap
ClosingThey don’tunderstand
Use Powerto Convince
Use Power To Convince – What is it
• Types of Negotiating power– Things the Others Want
• Product endorsements• Tie in Services• Money
Use Power To Convince – What is it
• Types of Negotiating power– Things the Others Want
– Formal• Title• Status• Situational
Use Power To Convince – What is it
• Types of Negotiating power– Things the Others Want
– Formal
– Personal• Charisma• Conviction• Consistency
Use Power To Convince – How to do it
Ask reality-testing questions- Are you sure you want to end like this?
Use Power To Convince – How to do it
Warn, but don’t threaten- If we can’t come to agreement, I’ll . . .
Use Power To Convince – How to do it
Display BATNA - without using- We have other things we’re considering, so . . .
Display a BATNA
What is a B.A.T.N.A.?
Best
Alternative
To
Negotiated or
Agreement
No
Display a BATNA
What is a B.A.T.N.A.?
A Comparison
and
An Alternative
Develop a BATNA
1.Make a list of options
2.Improve on most promising
3.Select best
4.Consider their BATNA
Use Power to Convince - Key Point
Be sure they know the
Consequences
Agenda & Direction Review
• Foundation– Four Facts– Definitions– Negotiation Flow– Negotiation Objectives
• Deadlock Causes
&
• Deadlock Breakers
Four Facts of Negotiating Life
Key PointKey Point
“In Business as in Life - You don’t get what you Deserve,
You get what you Negotiate”
Chester L. Karrass
Definitions?
Key PointKey Point
Don’t confuse Bargaining with Negotiations
Negotiation Flow Sequence
Entry
Exploration
Give and Take
Closing
Negotiation Flow
Negotiation Objectives
Negotiation Flow Negotiation Objective
Entry
Uncovering Interest Asking questions
Exploration
Create Favorable ClimateGetting to know them
Give and Take Developing Alternatives
Stretch your thinking
Closing Agree to best option
Use Objective Criteria
Break?
Deadlock Causes and BreakersSummary
PersonalityDifferences
Negotiation Flow Deadlock BreakerDeadlock Cause
Entry Take it toAnother Place
ExplorationYou don’t
understandWalk in their
Shoes
Give and TakeResistance to
your ideasBridge
the Gap
ClosingThey don’tunderstand
Use Powerto Convince
Negotiation Objectives
CreatingClimate
UncoveringInterest
DevelopingAlternatives
Agreeing toBest
Deadlock Breaking NegotiationsDeadlock Breaking Negotiations
Four Techniques to move Negotiations beyond
Deadlock
By F. Michael Babineaux, CPSM, C.P.M.President/CEO
Babineaux Educational Services and Training, Inc.www.BESTraining.com
901.853.0539
for