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Objectives
To present a process for To present a process for preparing a negotiationpreparing a negotiation
To delineate the impact of To delineate the impact of behavior on outcome and behavior on outcome and how to manage your behavior how to manage your behavior to influence across cultures.to influence across cultures.
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Harvard Business Review
““If you donIf you don’’t negotiate for t negotiate for your salary, they walk away your salary, they walk away happy that they paid you happy that they paid you less, but wonder why less, but wonder why they hired you.they hired you.””
— — Hannah Riley Bowles Hannah Riley Bowles and Kathleen McGinnand Kathleen McGinn
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Power
““All power is based on All power is based on perception. If you think youperception. If you think you’’ve ve got it, then yougot it, then you’’ve got it. ve got it.
If you think you donIf you think you don’’t have it, t have it, even if you have it, then you even if you have it, then you dondon’’t have it.t have it.””
— — You Can Negotiate Anything, You Can Negotiate Anything, Herb CohenHerb Cohen
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Trust
TRUST = CONFIDENT TRUST = CONFIDENT EXPECTATIONSEXPECTATIONS
What builds Trust?What builds Trust?
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Trust
Two Essential Ingredients for Two Essential Ingredients for Initiating TRUSTInitiating TRUST
VULNERABILITYVULNERABILITY CONSISTENCYCONSISTENCY
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Influence
How can you move someone in How can you move someone in your direction?your direction?
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Perspective Taking—Whose Point of View
MotivationsMotivations Questioning:Questioning:
What, How, What, How, and Why?and Why?
NeedsNeeds OptionsOptions
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Getting the Mandate:The Negotiation ProcessExternal Negotiation
ImplementationNeed
Internal Negotiation
CollectData
CollectData
Sell Agreementto
Mandate Team
Sell Agreementto
Mandate Team
Plan/Strategize
Plan/Strategize
GetMandate
GetMandate
ValidateNeeds and
Wants
ValidateNeeds and
WantsManage
Behaviors
ManageBehaviors
MaintainCollaborative
Climate
MaintainCollaborative
ClimateSecure
Agreement
SecureAgreement
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Process for Preparationof a Negotiation
Five Steps in the Preparation ProcessFive Steps in the Preparation Process
1.1. Determine the objectiveDetermine the objective
2.2. Identify and rank the issues –Identify and rank the issues –yours and theirs yours and theirs
3.3. Set the parametersSet the parameters
4.4. Develop your strengthsDevelop your strengths
5.5. Brainstorm alternativesBrainstorm alternatives
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1. Determine the Objective
Expectations of outcome —Expectations of outcome —
What will you walk away with?What will you walk away with?
Specific results neededSpecific results needed
Short term results placed in Short term results placed in
long term planlong term plan
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2. Identify and Rank Issues
List all issues List all issues
Assign priorities to issues Assign priorities to issues
Determine which are negotiable and Determine which are negotiable and
which are non-negotiablewhich are non-negotiable
Decide which are Decide which are ““mustsmusts”” vs. vs. ““wantswants””
Identify other partyIdentify other party’’s issues and s issues and
prioritiespriorities
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Determine range vs. fixed targetDetermine range vs. fixed target
Where to startWhere to start
When to walk or closeWhen to walk or close
3. Set Parameters
Fixed TargetBest WorstTarget
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Aspiration Levels
Is there a relationship between Is there a relationship between aspiration levels and success?aspiration levels and success?
1.1. Finding:Finding: Persons with higher Persons with higher aspiration levels won awards. aspiration levels won awards.
2.2. Finding:Finding: Skilled negotiators Skilled negotiators with high aspiration levels were with high aspiration levels were big winners regardless of whether big winners regardless of whether they had power.they had power.
Is there a relationship between Is there a relationship between aspiration levels and success?aspiration levels and success?
1.1. Finding:Finding: Persons with higher Persons with higher aspiration levels won awards. aspiration levels won awards.
2.2. Finding:Finding: Skilled negotiators Skilled negotiators with high aspiration levels were with high aspiration levels were big winners regardless of whether big winners regardless of whether they had power.they had power.
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Aspiration Levels (Cont’d)
3.3. FindingFinding:: Persons with high Persons with high aspirations were winners in aspirations were winners in every case where they opposed every case where they opposed low aspirants. It did not matter low aspirants. It did not matter if they were unskilled or had if they were unskilled or had less power.less power.
— — The Negotiating Game,The Negotiating Game,Dr. Chester L. KarassDr. Chester L. Karass
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Russian Proverb
““There are two fools in every There are two fools in every market: One asks too little, market: One asks too little, one asks too much.one asks too much.””
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You benefit from knowing your own You benefit from knowing your own
strengths by being able to:strengths by being able to:
Offer viable options.Offer viable options.
Know what concessions can be made.Know what concessions can be made.
Leverage better for what you need.Leverage better for what you need.
Strategically plan timing, order of Strategically plan timing, order of
priority, and concessions.priority, and concessions.
4. Develop Your Strengths
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5. Brainstorm Alternatives
As many alternatives as possibleAs many alternatives as possible
Brainstorm options for each issueBrainstorm options for each issue
Valuable to other sideValuable to other side
Power in number of alternativesPower in number of alternatives
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“The Art of War” by Sun Tzu
First RuleFirst RuleAvoid WarAvoid War
Second RuleSecond RuleOffer OptionsOffer Options
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LogicLogic
Is NotIs Not
PersuasivePersuasive
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Behaviors in Negotiating
BehaviorsBehaviorsMotives Intentions Beliefs Perceptions Attitudes Personality
Feelings
Observable behaviors— what a person says and does— reveal only 10% of who that person is.
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Negotiating Behaviors: Creative Problem Solving
Negotiating BehaviorsNegotiating Behaviors Business Impact
Interpersonal Impact
Open & Honest
Increases Clarity
Irritates
Antagonizes
Increases Risk
Seen as Unwilling
Builds TrustCreates Open
Climate
Stalls Negotiation
Reduces Trust
Less Chance to Agree
Complicates
Express Feelings
Behavior Alert
Indicate Disagreement
Rankle
Attack
Reason Overload
Counter
Express Feelings
Behavior Alert
Indicate Disagreement
Rankle
Attack
Reason Overload
Counter
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Influencing Behaviors: Valuing Differences
Interpersonal Impact
Influencing BehaviorsInfluencing Behaviors Business Impact
Perceived Interest in Others
Listening
Reinforcement
Builds a Foundation
for Trust
More HarmonyBetter Solutions
Reduces Error
Improves Quality
Maintains Relationships
Ask
Probe
Acknowledge
Clarify
Summarize
Build
BehaviorAlert
Ask
Probe
Acknowledge
Clarify
Summarize
Build
BehaviorAlert
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Behaviors to Use and Avoid
UseUse Clarifying Clarifying
and Summarizingand Summarizing
Requesting InformationRequesting Information
Expressing FeelingsExpressing Feelings
Behavior AlertBehavior Alert
(Except Disagreeing)(Except Disagreeing)
AvoidAvoid RanklersRanklers
CountersCounters
AttackingAttacking
ReasonReason
OverloadOverload
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Building ModelOptions for handling ideas:Options for handling ideas:
Suggestion
Yes No
Support Disagree
AgreeAgree??
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Building ModelOptions for handling ideas:Options for handling ideas:
Suggestion
Yes No
Support Disagree
AgreeAgree??
Build Counter
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Building ModelOptions for handling ideas:Options for handling ideas:
Suggestion
Yes No
Support Disagree
Find Flaw
Patch Flaw
AgreeAgree??
Build Counter
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John Wayne is Dead
Most Difficult NegotiatorsMost Difficult Negotiators Our Side and their sideOur Side and their side Straightforward vs. Silent TypesStraightforward vs. Silent Types Empathy with questions.Empathy with questions. Value the differenceValue the difference
Recommended Reading
The New Rules Of The New Rules Of International Negotiation: International Negotiation: Building Relationships, Earning Building Relationships, Earning Trust, And Creating Influence Trust, And Creating Influence Around The WorldAround The World
Catherine M. Lee Catherine M. Lee
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