Negotiating To Win Participant's Manual

Negotiating to Win (NTW)
Negotiating to Win
Understanding structured negotiation and ensuring certainty
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Participants Introduction
Participants kindly state the following: Name p y Area of responsibility Knowledge about Negotiating Expectations from the Training
House Rules
Be punctual Smoking is not allowed inside the Seminar Room As much as possible, avoid eating while session is going on. Participants are allowed to receive and make phone calls during breaks (except for emergency cases). Please turn-off mobile phones or put it to silent mode. Answer your calls outside the Seminar room In case of urgent matters requiring your presence, please do inform the facilitator / training staff before leaving
2010 by ECC International All rights reserved. No part of this material shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission from ECC International.

Learning Objectives
At the end of the training, participants are expected to:
Understand and appreciate the concepts of effective negotiation from communication styles to closing patterns Create and maximize value in all negotiations through proven yet innovative tactics Be in a position to better plan / prepare and manage different / difficult situations Watch your back yet build strong relationships by learning different negotiation styles Be in a position to apply some critical tools to strengthen negotiation positions Negotiate with confidence and ensure success by focusing and demonstrating commitment to WIN-WIN
DAY 1
Introduction and Overview Negotiation & Its Concepts Effective Communication in Negotiations The Major Types of Negotiation The 7 Critical Elements to Successful Negotiation The Structured Negotiation Process Preparation Proposal Bargaining Close Planning for the Action
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DAY 2
People and Negotiation Types of Negotiators Understanding and Assessing Personality Profiles Handling different profiles Team Negotiations Concepts and Best Practices Moving from Reactive to Proactive: Taking Control of Negotiation Power, Persuasion and Positional Bargaining Developing Relationships Ensuring Success through Creativity
What is NEGOTIATION?
What is NOT NEGOTIATION?
Why Negotiate?
If the reason for negotiation is seen as 'beating' the opposition, it is known as 'Distributive negotiation'. Negotiation, in a business context, can be used for
selling, purchasing, staff (e.g. contracts), borrowing (e.g. loans) transactions,
and with anything else that you feel are applicable for the business..
Relationship between 3 negotiation models

Dynamic multithreaded negotiations Synchronized multithreaded negotiations
Considering the outside options coming in the future Considering the impact of other concurrent negotiation threads
Single-threaded negotiations
Negotiation strategies without outside option

Single-threaded negotiations
The design of an effective negotiation strategy can be divided into two parts: First part is the design of a negotiation strategy given the reservation price and other inputs. This is single-threaded negotiations Second part is to calculate the reservation price based on the model of outside options.
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Synchronized multi-threaded negotiations

First level the buyer assumes there are no outside options coming in the future, and makes decisions based on the outside options that concurrently exist with the thread under consideration. This is synchronized multi-threaded negotiations. Second level the buyer also considers the outside options that may come dynamically in the future.
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Dynamic multi-threaded negotiations
When the buyer acts both reactively to the realized outside options, and proactively to the possible arrivals based on the prediction information, this is called dynamic multithreaded negotiations.
It builds on the synchronized multi-threaded model but introduces uncertainty to the threads.
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So what is really Negotiation?
Negotiation means.. To confer or concur with another or others in order to come to terms or reach an agreement or a end result / goal. To arrange or settle by discussing and making a mutual agreement to meet the end result or goal.
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When should you negotiate?

1. When you can enhance the deal and or create a better agreement/outcome Two heads are better than one Different perspectives Dont just go along with something to get it done Dont t take the easy way out Don 2. When an objective is to establish a longer term relationship Future benefits 3. Create an agreement that will last over time 4. A cultural way of doing things, a tradition in certain communities
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When not to Negotiate

1. If you are not prepared 2. When you cant enhance the deal 3. When the costs and risks outweigh the potential benefits It will take longer and cost more to negotiate than the value you receive in the end Significant risk that ground will be lost 4. When the details of the deal are not clear 5. When the break even between profit and loss is very minimal and the relationship is not evident 6. When its a new user, whose credibility is yet to be tested or seen 7. When the deal is regulated and statutory in nature i.e. Bangko Sentral guidelines or Stock Traders Trading Guidelines.
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Negotiation goals and outcomes
Substance goals
Outcomes that relate to content
issues. Relationship goals

Outcomes O that h relate l to h how well ll
people involved in the negotiations and any constituencies they represent are able to work with one another once the process is concluded.
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Characteristics of Negotiation
Interests of parties may conflict or disagree Usually a face to face and oral process No one person knows all the facts Parties expect to reach an agreement or a temporary resolution No hidden agenda Failure to reach agreement may be an acceptable solution
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Factors in Negotiation
Negotiation goals Attitude to negotiation Personal styles Styles of communication Time sensitivity Emotionalism Agreement form Agreement building press Negotiation team organization Risk taking
Contract or Relationship Win / Win or Win / Lose Formal or Informal Direct or Indirect High or Low High or Low Specific or General Bottom Up or Top down One Leader or Consensus High or Low
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Effective Communication in Negotiations
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What is Communication? Communication is the exchange of information between entities, which can be people, animals or even machines. Information is sent out that someone or something senses, processes and interprets. A response may be given, resulting in a back-andforth communication.
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Goals of Communication
The goal and mission of communication is to build on emotional connection and form a partnership with your client. Build rapport, as opposed to resistance Non-verbals are 80% of the perceived message Remember that actions speak louder than words Gather information and focus on facts Suspend judgment of the person Acknowledge their emotions Try to hear the unspoken meaning of what the person is saying. Cue yourself to listen if your mind starts to wander Ask questions if you do not understand
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Typical Habits of Trained and Untrained Listeners
Untrained Listeners Tune others out, prejudges. Quick to mentally criticize grammar/speaking style Try to talk when they should be listening Listen for facts and errors to prove others wrong Try to reply to everythingexaggerations and errors Fake attention
Trained Listeners Defer their judgment, listen for feelings and facts Pay attention to content Listen completely first, make people feel valued Listen for main idea, disregard minor points Avoid sidetracking and sarcastic remarks Give themselves internal cues to listen
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Typical Habits of Trained and Untrained Listeners
Untrained Listeners Try to do something else while listening Give up too soon Demonstrate by emotional words, lose their temper Give little verbal response Unaware of talking/listening speed limits mismatch Are impatient to get on with it
Trained Listeners Realize listening is a fulltime job keep eye contact Listen carefully, give feedback, ask confirmation Feel their anger, but control it Make affirmative statements Maintain patience while listening Listen for emotions.
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How can I make my point in a more effective manner?
Principles in communicating assertively: Demonstrate attentive listening behavior Demonstrate an assuring manner, communicating caring g and strength g Remain as relaxed as you can. State clearly what it is that you want State honestly how you feel about the topic
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Some Words to Use and Avoid
Remember to make your words and phrases sound positive.
Words to Avoid You have to I want you to Ill try, but Would you mind Why don dont t you you But Its not our policy. You cant. Its required.
Words to Use Will you Willing I am It works well when Ill I ll do it. it Can you tell me about the difficulty youre having What would you like us to do? What will work best? Let me take care of that for you.
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Some Words to Use and Avoid

Remember to make your words and phrases sound positive.
Words to Avoid Its necessary. Whats your problem? I cant. I cant help you. You should have All we can do is Its our policy to I dont know. Im new here. We have a problem.
Words to Use Give me a few minutes and Ill check up on this. I apologize for the misinformation. Our hands are tied by the law, but heres here s what I can do. do Lets take care of this right now. Let me find out for you. Although Im new, Ill get someone to help you. How may I help you? If I cant help you, I know who can.
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The Major j Types yp of Negotiation g
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Major types of Negotiation
Distributive A negotiation in which the parties compete over the distribution of a fixed sum of value. The key question in a distributed negotiation is Who will claim the most value? In distributive negotiations, a gain by one side is made at the expense of the other. Integrative A negotiation in which the parties cooperate to achieve maximum benefits by integrating their interest into an agreement. These deals are about creating value and claiming it.
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Major types of Negotiation

Multiple Phases The prospect of future dealing offer important advantages for parties who are trustworthy and who would like to foster cooperative behavior. Multiple p Parties Business and Professional negotiations commonly involve more than two parties, and certainly more than two people.
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Distributive Negotiation
Win-lose, zero sum, constant sum A peso more to one side is a peso less to the other Carpet sale where buyer and seller have no relationship Wage negotiations between business owners and union employees Cards are played close to your vest
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Distributive Negotiation Basics
Play your cards close to your chest The opposite is equally true The only thing you should ever tell Let them make the first offer Be realistic
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Integrative Negotiation Basics
Multiple Issues Sharing Problem Solving Bridge Building
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Gaining truly integrative agreements rests on:
Supportive attitudes Integrative agreements require that each party must:

Approach the negotiation with a willingness to trust the
other party.
Convey y a willingness g to share information with the other
party.
Show a willingness to ask concrete questions of the
other party.
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Constructive behaviors Reaching integrative agreements depends on the negotiators ability to:
Separate the people from the problem. Focus F on interests i t t rather th than th positions. iti Avoid making premature judgments. Keep alternative creation separate from evaluation. Judge possible agreements on an objective set of
criteria or standards.
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Good information
Each negotiation party must know what he/she will do if an
agreement cant be reached.

Each party must understand the relative importance of the
other partys interests.
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The 7 Critical Elements to Successful Negotiation
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7 Critical Elements to Successful Negotiation
1 2 3 4 5 6 7
ALTERNATIVES INTERESTS OPTIONS LEGITIMACY G C COMMITMENT COMMUNICATION RELATIONSHIP

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Critical elements to successful negotiation

1. ALTERNATIVES These are the walk-away alternatives which each party has if agreement is not reached. These are things that one party or another can do by self-help, without requiring the agreement of the other. In general, neither party should agree to something that is worse for that party than its "BATNA" -- its Best Alternative To a Negotiated Agreement.
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2. INTERESTS This is the word we use for what it is that somebody wants. Underlying the positions of the parties are their Needs, Concerns Desires Hopes Fears.
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Working Assumption: Focusing on interests rather than positions increases our chances of achieving a good outcome. a. We tend to focus on positions, not interests b. We assume that all of our interests are opposed c. Focusing on interests facilitates creative problem-solving d. Consider the following guidelines: When preparing, focus on interests Focus the negotiation discussion on interests, not positions Think of positions as clues Use leadership
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3. OPTIONS To identify the full range of possibilities on which the parties might conceivably reach agreement.
Working Assumption: It is in the interest of each party in a negotiation to try to invent options for mutual gain. a. b. c. d. The Problem "Either/or" thinking is seductive and destructive Inventing can seem dangerous Consider the following guidelines
Assume that the pie is expandable Use our understanding of the relevant interests to guide our inventing Separate the process of inventing from the process of deciding Use the Circle Chart
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4. LEGITIMACY Other things being equal, an agreement is better to the extent that each party considers it to be fair as measured by: external benchmark criterion or principle beyond the simple will of either party. Note that such external standards of fairness include international law, precedent, practice, or some principle such as reciprocity or most-favored-nation treatment.
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5. COMMITMENT Commitments are oral or written statements about what a party will or won't do. It may be made during the course of a negotiation or may be embodied in an agreement reached at the end of the negotiation.
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6. COMMUNICATION Efficient negotiation communication. requires effective two-way
Working Assumption: Each party to a negotiation gains by creating b ti and d maintaining i t i i clear l t two-way communication. i ti a. Problem: Negotiations are often plagued by misunderstanding b. Cause: When we communicate, we focus on telling them what we think c. Approach: Aim for two-way communication
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7. RELATIONSHIP Improved the ability to working together Note that the most important negotiations are with people l or i tit ti institutions with ith whom h we h have
negotiated before and will be negotiating again. Ability of dealing with differences
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The Structured Negotiation Process

Critical Steps
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The Principle of Exchange
1. Preparation
2. Proposal
3. Debate and Bargaining
4. Closing
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1. Preparation Stage
Clarify objectives and expectations Clarify priorities Have Ha e a strong opening position Assemble the data needed Assess the opposition
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Objectives and Expectations should be:
S M A R T
pecific and Stated Simply easurable and can be Monitored tainable and Achievable elevant and Realistic ime-phased and Time-bound
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Have a strong opening position

OPENING POSITION (STATEMENT)
NEGOTIATION FOLLOWS PLANNED ROUTE
NEGOTIATION FOLLOWS UNPLANNED ROUTE
TIME WASTER
ARGUMENT BUILDER
IDEAL OUTCOME IS ACHIEVED
COMPROMISE
BREAKDOWN
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A Professionals Opening Statement
The Objective
To create an immediate interest for further discussion engage the prospect.
The Method
Work through the following using pen to paper or fingers to keyboard What do I sell? (answer in the fewest words possible)
VISUALIZE! THEN VERBALIZE! DONT BE VICTIMIZED!
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The Opening Statement
Maximize every word, syllable and pause The opening statement is not meant to close a prospect Avoid vagueness Use:
Maximize, , increase, , grow g Minimize, reduce, decrease, eliminate Profit from Specific, specifically Save, conserve Accumulate, acquire Prevent Fully Immediate, now
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Phrases to avoid in your opening statement
These phrases may be used at other times during the negotiation process, but they have no place in the opening statement
How are you today? Id lik like t to l learn a littl little more about b t your b business i t to d determine t i Were the leading provider of We work with several of your competitors such as... Id like to see if there are some ways we might work together. Is now a good time to talk? Did I catch you at a bad time?
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Assessing the Opposition
MY View of the WORLD
Strengths-Threats
Opportunities-Weaknesses
What do I have that counters external difficulties?

What does my opponent have that increases external difficulties?
What is in the environment that lessens my weaknesses?

What is in the environment that my opponent can use to make me weaker?
OPPOSITIONS View of the WORLD
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The Fatal Pitfalls
Negotiators take their own perception of reality as the key to agreement. Negotiators assume their perceptions of reality are the same as those of the other party. Negotiators recognize that the other parties perceptions of reality are different from their own, but conclude that theyre wrong or irrelevant.
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2. The Proposal Stage
Making a proposal Responding to a proposal
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Making a Proposal Dos
Listen carefully to the other party Leave room for maneuvering Feel free to reject the first offer made Make conditional offers Probe the attitudes of the opposition
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Making a Proposal Don'ts
X X X X X
Make too many concessions at an early stage Make you opening offer so extreme that you lose face by climbing down Say never never Answer questions directly with a simple yes or no Make the opposition look foolish
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Responding to a Proposal Countering typical tactics

1. Making threats 2. Offering insults 3. Bluffing 4. Using intimidation 5. Dividing and ruling 6. Using leading questions 7. Making emotional appeals 8. Testing the boundaries
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Countering Typical Tactics
TACTICS
COUNTER-TACTICS
Making threats
Inform the other party that you cannot negotiate under pressure/ threat and concede only if they can validate the merits of the case. Relax, stay calm and do not retaliate back. Restate your position firmly and warn that negotiations will proceed only in a more constructive atmosphere. Call their bluff, wait for a reaction and ask for evidence to support their claims.
Offering insults
Bluffing
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TACTICS COUNTER-TACTICS
Using intimidation
Avoid being coerced as a result of lack of confidence. Drop your terms only if you gain concessions in return. Brief members in advance and agree g on an acceptable position. Call for an adjournment if differences in the group signal the loss of the position. Avoid responding if you do not know the agenda behind the question.
g and Dividing ruling
Using leading questions
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TACTICS
COUNTER-TACTICS
Making emotional appeals Testing the boundaries
Constantly affirm your commitment. Test the validity of manipulative questions to lead the opposition back to the issue at hand. Everyone should know exactly what you are agreeing on. Write the worded statement to bind the parties to the issues.
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3. The Debate and Bargaining Stage
Dealing with unhelpful behavior of the other party Knowing your roles Using conflict to your advantage
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The Debate and Bargaining Stage
Dealing with unhelpful behavior of the other party?
1. The Confused Negotiator g 2. The Indecisive Negotiator 3. The Aggressive Negotiator 4. The Emotional Negotiator
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The Faces of the Other Party

OPPOSITION TYPE STRATEGY
Confused Indecisive
Visual aid avalanche; Sentence clearing; Step-bystep approach. Reiteration avalanche; Review, adjourn and meet at another time; Present the same ideas in a fresh manner. Reiteration avalanche; Keep calm and avoid hurting words/ violent tone; Emphasize that aggression is not your style; Adjourn until temper cools. Do not overtly challenge the motives; Allow the person to finish until he/ she tires then use the oppositions last salvo to introduce your own.
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Aggressive
Emotional
The Debate and Bargaining Stage
Knowing your roles:
1. The Leader 2 The Good Guy 2. G 3. The Bad Guy 4. The Hard Liner 5. The Sweeper
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The Faces of your Team
ROLES Leader Good Guy Bad Guy
RESPONSIBILITIES Most senior/ with the most expertise. Leading the team and making most of the important decisions. The bait. Expresses sympathy for the agenda of the opposition to create a false sense of security. The dam. Stopping the negotiations when needed. Undermining the arguments of the opposition and intimidating the opponents. The short circuit. Delays progress through stalling tactics. Records progress and keeps the team on track. The gatekeeper. Brings the team out of a deadlock. Points out inconsistencies in the opponents arguments.
Hard Liner Sweeper
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Integrating Roles Conflict Management Styles

STYLES Avoider
Accommodator
INDICATORS RUN AWAY! You completely withdraw from conflict as if it does not exist. I GIVE UP, LETS DO IT YOUR WAY! You put aside your goals and basically give in, although inside you are frustrated and angry. MY WAY, OR THE HIGHWAY! You force your point until the other party eventually gives in. MEET YOU IN THE MIDDLE! You give up something and so does the other party, but neither one is satisfied. LETS DO IT TOGETHER! You and your investor work together to find a solution that satisfies both of you.
Forcer Compromiser Collaborator
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4. The Closing Stage

Offering concessions that are agreeable to all parties Splitting the difference between all parties Giving the other party a choice between two acceptable alternatives Introducing new incentives at a later stage Introducing new ideas/ facts at later stage Suggesting adjournment when a stalemate occurs
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ASK
Analyze your right to close Seize opportunities to close Know the techniques for closing
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Analyze Your Right To Close

Ask yourself if you have earned the right to close. Have you positioned yourself as a partner to your customer? Have you learned about your customer customers s needs and problems? Have you made a thorough presentation, and presented the appropriate benefits? Have you answered and handled objections?
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Seize opportunities to close

Watch for buying clues
Cost Financing Timing Payments References Demonstration Installation Trial Run Training Pilot Program Credit Logistics Terms Administration Tests Conversion Validation Servicing Specific measurements
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Know the techniques for closing
Ask the right closing question, the right way, at the right time. Practice the techniques, until they become second nature to you.
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The Judgment Areas
1. Expertise on the subject. 2. Personal commitment to the subject. 3. Personal commitment to the other party. 4. Honest/trustworthy character. 5. Dynamism and energy. 6. Institution/company represented.
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Planning for the Action: Effective Preparation

Planning a negotiation requires extensive preparation and, depending on the complexity of the situation, rehearsals. Areas that the negotiator (or negotiation team) needs to concentrate on are: Establishing a proactive negotiation strategy through thorough planning and preparation; win - win strategy Understanding what issues or concerns (all parties) need to be negotiated and their individual / collective importance Understanding human behavioral and communication styles How to establish bargaining tactics Resolving deadlocks and impasses How to gather information prior to and during the negotiation Individual and team negotiation strategies Negotiating during the project with both internal and external project members, including day-to-day working relationships
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Integrated Negotiation Process
This is a unique combination framework that puts together the best of many other approaches to negotiation. Prepare Open Argue Explore Signal Package Close Sustain Know what you want. Understand them Put your case. Hear theirs Support your case. Expose theirs Seek understanding and possibility Indicate your readiness to work together Assemble potential trades Reach final agreement Make sure what is agreed happens
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DAY 2
People and Negotiation Types of Negotiators Understanding and Assessing Personality Profiles Handling different profiles Team Negotiations Concepts and Best Practices Moving from Reactive to Proactive: Taking Control of Negotiation Power, Persuasion and Positional Bargaining Developing Relationships Ensuring Success through Creativity
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People and Negotiation
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3 Types of Negotiators
There are three different types of negotiators as compared to the three different kinds of businesspeople: Sharks Believe in scarcity. Carp Like sharks, carp believe in scarcity; but unlike sharks, carp believe that in a negotiation, they can never be the winners. Dolphins Have the ability to successfully adapt to any situation they encounter.
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The Sharks
Their perception is that in all negotiations, there must be winners and losers. To ensure that they wont be the losers, sharks move in for the kill, striving to get as much as they can in every case, regardless of the cost. When negotiating, negotiating the sharks sharks basic nature is to take over or trade off. It is difficult to negotiate with sharks because they lack the ability to use creative strategies. They are unable to try anything different or learn from their mistakes. Their attitude of scarcity dictates their actions and reactions.
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The Carp
Carp do not like any type of confrontation, so their normal response in negotiating is to give in or get out. People who always get out and avoid negotiations become beco e cut o off a and d isolated. so ated The give in strategy is even worse--people who constantly give in eventually have nothing left, and are eaten alive.
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The Dolphins
The dolphin illustrate the ideal negotiator because of the animals high intelligence and ability to learn from experience. When dolphins do not get what they want, they quickly and precisely alter their behaviors in sometimes ingenious ways in pursuit of what they are after. If one strategy is unsuccessful, dolphins respond with other possibilities. They learn from their mistakes and the mistakes of others. Dolphins believe abundance. in both potential scarcity and potential
Dolphins know that the win/win strategy is ideal in negotiation, there are times when they will deliberately use a win/lose strategy.
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The Dolphin Like Negotiator

In negotiation, dolphins have four key characteristics: 1.They play an infinite rather than a finite game. 2.They avoid unnecessary conflict by cooperating as long as the other party does likewise. 3.They respond promptly to a mean move by retaliating properly. 4.While quick to retaliate, dolphins are also quick to forgive.
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Team Negotiations Concepts and Best Practices
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Team Negotiations: Four Key Concepts
BATNA (Best Alternative To a Negotiation Agreement) Reservation Price ZOPA (Zone Of Possible Agreement) Value Creation through Trades
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Know your BATNA!
Best Alternative to a Negotiated Agreement (BATNA) Typical example: negotiate or go to court Improving your situation Improve your BATNA Identify the other sides BATNA Weaken the other partys BATNA
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Preparing for a Negotiation using BATNA

BATNA: yours and theirs, know them Identify value creation opportunities Determine negotiation authority level Understand the people and their culture Prepare for flexibility Show fairness in your position Alter the process in your favor
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Reservation Price
The least favorable point at which one will accept a deal The walk-away Example: you are looking for larger office space. You set your BATNA at $20/SF $ and your Reservation Price at $30/SF
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ZOPA Zone of Possible Agreement (ZOPA) The difference between the sellers reservation price and the buyers reservation price What happens if positions below are reversed? $250k ZOPA $275k
Sellers Reservation Price
Buyers Reservation Price

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Value Creation through Trades

Trade things you value less to the other party Examples: For a supplier the greater value may be not price but an extended delivery time For a customer, extended warranty versus price For an employee, working at home versus salary
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Power, Persuasion and Positional Bargaining

Understanding sources and effectively using power
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The use of power in Negotiation
Parity in Power Interpersonal Power Legitimate Power Reward Power Coercive Power Expert Power Referent Power
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Parity in Power
In negotiation, parity of power is the perception that the other side possesses the ability to counter any form of power. Parity in power refers d l deployment t. to balance in power
Parity in power is a key factor in the behaviour of a successful negotiator.
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Interpersonal Power
LEGITIMATE POWER Derived from the ability to influence because of position. Sometimes one party will use legitimate power as a tactic against another party by: bringing g g in someone who has the influence to make important decisions, and who has credibility with the other party or by assigning a lot of legitimate power to an individual/s within opposing parties so as to use the need for power and status that exists in all individuals to get major concessions from them.
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Interpersonal Power
REWARD POWER Reward power is used to back up legitimate power by the use of: Non-verbal rewards, e.g., Giving individuals in the other party more space at the table Nodding of the head to indicate approval and acceptance Eye contact to indicate attention Open and non-aggressive gestures to indicate acceptance and respect. Rewards could also take the form of verbal promises of financial benefits to be gained by establishing a relationship.
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Interpersonal Power
COERCIVE POWER Coercive power is the opposite of reward power. It is the ability of the power holder to take something away from the target person or to punish the target for non-compliance with a request.
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Interpersonal Power
EXPERT POWER A person who possesses expertise that is highly valued has expert power. An individual may possess expertise on technical, administrative, or personal matters. Are methods by which a negotiator can establish an expert in the eyes of the other party by: Citing facts and figures Name dropping' Citing examples of detailed experiences gained in wellknown institutions Being known through the press or through other people, or through writing articles in well-known journals (by being visible)
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Interpersonal Power
REFERENT POWER Based on the charisma of the person. Charisma is a term used to describe the magnetic personalities of some politicians, entertainers and sports figures. Referent (or personal) power is based on the target's attraction to the power holder - liking, perceived similarity, admiration, desire to be close to or friendly with the power holder.
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The Six Laws of Persuasion Overview

1. Law of Reciprocity 2. Law of Commitment and Consistency 3. Law of Liking 4. Law of Scarcity 5. Law of Authority 6. Law of Social Proof
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1. Law of Reciprocity
Human beings, in general, try to repay in kind what another person has provided to them. If someone gives you something you want, you will reciprocate because you now feel obligated. Using the Law of Persuasion Limited disclosure/confession of the real reason for a negotiation stance can provoke a concession from the other party. Concessions in general follow this tit-for-tat rule the lower the value of the concession on your part, of course, the better
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2. Law of Commitment and Consistency

Make a commitment to a cause or product, however small, it then becomes easier to be convinced to increase it. Using the Law of Persuasion g the other p person in saying y g yes, y yes immediately y y Getting occurs when one party asks the other side to make a number of small decisions that lead to only one obvious conclusion: to accept the general concession. You could employ this principle by asking a potential client if he/she values quality in your product or service.
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3. Law of Liking
Establish rapport by demonstrating how similar they are to their potential buyers. Using the Law of Persuasion This law is often seen in the strategy of good cop, bad cop. You need to identify with and trust the good team member, so you may find yourself agreeing to the other teams concessions and goals instead of your own.
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4. Law of Scarcity
If you are not sure you want to buy something, the minute it becomes the last one available you tend to have second thoughts. To you. This indicates that others are purchasing it, and you might not be able to get another one quickly, or at all, if you decide you want it later. Using the Law of Persuasion The more time you spend with a salesperson, the more commitment he or she has to make the deal. If you are under no time pressure and the other side is, you have the upper hand.
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5. Law of Authority
This is the law that uses celebrity endorsements or expert testimonials. Using the Law of Persuasion p say y our p product is the best. Experts But who are these experts? What are their qualifications to make these claims? Do they have a vested interest in selling the companys products or services? In addition, use this Law to establish your own credentials/ credibility early in the negotiation.
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6. Law of Social Proof

Part of the reason you laugh along anyway in spite of your annoyance lies in how you decide what is socially correct behavior. Using the Law of Persuasion This law works when you draw on testimonials from satisfied customers or clients (unscripted ones are best) to encourage new prospects to buy your services and products. The law also can be used to convince your supervisors or staff that their counterparts in other divisions or companies are following similar suggestions to yours.
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Positional Bargaining
1. Be clear, in your own mind, about exactly what you're after. 2. Do your homework, so that you are fully prepared to discuss every aspect and respond to every question and comment. 3. Be persistent. Don't expect to "win" the first time. Your first job is just to start the other p j person thinking. g 4. Make friends with the person with whom you are bargaining. Put your bargain in terms of his or her needs, advantages, and benefits. 5. Keep your sense of humor.
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Developing Relationships
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Negotiation Relationships
Businesses have evolved and changed in how they conduct business. Lower levels of management and employees are now given more responsibility and authority. There has been evolutionary change in interaction to achieve more cohesive and durable partnerships.
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There are 3 reasons for this change in behaviour
1. Taking future considerations into account 2. Give some - get some in return 3. Creating trust moves us further ahead
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Ensuring Success through Creativity
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The 7 Principles of Negotiation

1. Creating a Win-Win situation 2. Listening skills 3. Creativity 4 Patience 4. 5. Research 6. Confidence is the key to a successful negotiation 7. Knowing when to Walk Away
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1. Creating a Win-Win situation
When you approach a negotiation with the right attitude, it takes the pressure off of both parties. The right attitude is to create a win-win situation. R Remember b that, th t If one party t is i only l in i the th process for f themselves, a resolution will be difficult to come by.
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2.
Listening skills
Your ability to ask the right questions, and listen to the answers, is your #1 most important negotiating skill. A skilled negotiator enters a negotiation with a questioning mindset. Learn what your customer needs, wants, what makes them successful, and how you can sell to them.
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3. Creativity
This relates to creative problem solving. When you're approaching a negotiation as a win-win situation and you're listening to the needs of the other party, p y, creative p problem solving g can help p design g a solution that meets everyone's needs. Negotiation is about more than winning the highest contract.
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4. Patience
Many negotiations takes time. Creating a solution that works for both businesses can take several drafts, have to be approved by several parties, and quite honestly many businesses aren't accustomed to wing so they y may y take some time to adjust j to win negotiations the concept. Give them (customers) the time they need because when you show you're willing to be patient and that you're invested in their interests too, they'll be willing to work with you today and ten years from now.
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5. Research
Take the time to learn all you can about the business you're negotiating with and you'll be one step ahead to understanding Their needs Concerns, and How you can work together to come up with a mutually beneficial solution.
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6.
Confidence is the key to a successful negotiation
If you show fear, the person or company you're negotiating with can perceive that as power over you or a lack of confidence in your business product or service.
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7. Knowing when to Walk Away
All negotiations do not result in a win-win situation. Sometimes it's better to walk away but more importantly it is better to be prepared to walk away. When a negotiation is a MUST then it gives some of your power away. Go into a negotiation with a positive attitude and a desire to make it work; however keep the awareness that it may not in your back pocket.
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Negotiating To Win Participant's Manual

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Negotiating to Win (NTW)

Negotiating to Win (NTW)

Negotiating to Win (NTW)

What is NOT NEGOTIATION?

Relationship between 3 negotiation models

Negotiation strategies without outside option

Negotiating to Win (NTW)

Synchronized multi-threaded negotiations

Dynamic multi-threaded negotiations

Negotiating to Win (NTW)

When should you negotiate?

When not to Negotiate

Negotiating to Win (NTW)

issues. Relationship goals

Negotiating to Win (NTW)

Effective Communication in Negotiations

Negotiating to Win (NTW)

Typical Habits of Trained and Untrained Listeners

How can I make my point in a more effective manner?

Negotiating to Win (NTW)

Some Words to Use and Avoid

The Major j Types yp of Negotiation g

Negotiating to Win (NTW)

Major types of Negotiation

Negotiating to Win (NTW)

Integrative Negotiation Basics

Multiple Issues Sharing Problem Solving Bridge Building

Gaining truly integrative agreements rests on:

Supportive attitudes Integrative agreements require that each party must:

Negotiating to Win (NTW)

Gaining truly integrative agreements rests on:

agreement cant be reached.

other partys interests.

The 7 Critical Elements to Successful Negotiation

Negotiating to Win (NTW)

ALTERNATIVES INTERESTS OPTIONS LEGITIMACY G C COMMITMENT COMMUNICATION RELATIONSHIP

Critical elements to successful negotiation

Critical elements to successful negotiation

Negotiating to Win (NTW)

Critical elements to successful negotiation

Critical elements to successful negotiation

Negotiating to Win (NTW)

Critical elements to successful negotiation

Critical elements to successful negotiation

Negotiating to Win (NTW)

The Structured Negotiation Process

The Principle of Exchange

3. Debate and Bargaining

Negotiating to Win (NTW)

Have a strong opening position

NEGOTIATION FOLLOWS PLANNED ROUTE

NEGOTIATION FOLLOWS UNPLANNED ROUTE

IDEAL OUTCOME IS ACHIEVED

A Professionals Opening Statement

Negotiating to Win (NTW)

Phrases to avoid in your opening statement

Assessing the Opposition

MY View of the WORLD

What do I have that counters external difficulties?

What is in the environment that lessens my weaknesses?

OPPOSITIONS View of the WORLD

Negotiating to Win (NTW)

2. The Proposal Stage