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Unit Outline Mutually Beneficial Negotiating People and Negotiating 1. Why should I focus on people when negotiating? 2. How can I separate the people from the problem? 3. What if the people are the problem? 4. How can I reach understanding? 5. How can empathy make me a better negotiator? 6. How do I counteract strong emotions? 7. How do I identify needs? 8. How do I talk about needs? Communication and Negotiation 1. How can I communicate clearly to the other party? 2. How can listening help me become a better negotiator? 3. Can body language tell me about the other party's attitude? Finding Mutual Benefit 1. What is mutual benefit? 2. How do I explore different options for mutually beneficial solutions? 3. How do I find common interests? 4. How can I use differing interests? 5. Why do I need to value the solution? 6. How can I get the other party to agree to my valuation methods? Working the Negotiation 1. How can I make concessions successfully? 2. What should I do if I begin losing concessions?

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3. How can I protect myself against a more powerful negotiator? 4. Should I use a bottom line strategy? 5. How can I level the playing field? Closing the Deal 1. How do I get the other party to accept my solution? 2. When should I close the deal? 3. How do I close successfully? Unit Content Mutually Beneficial Negotiating People and Negotiating Why should I focus on people when negotiating? Individuals have personalities, experiences, and attitudes that shape how they behave in a negotiation. Assess the personalities and viewpoints of the other party. Adjust your negotiating style to establish a non-confrontational atmosphere for negotiating. How can I separate the people from the problem? Agreement is impossible if you mix personal feelings and attitudes with business. Do not take it personally and become frustrated, offended, or upset if you have to make a concession. This reaction focuses your attention on your anger rather than the issue at hand. What if the people are the problem? Sometimes the other party continually makes the negotiation a personal matter rather than a business endeavor. You can deal with this situation in two ways: 1. Analyze the other party's behavior and discuss the possibility that they are not viewing the situation as you do. 2. Discuss how the other party's behavior differs from yours. Let them know you are aware of some personality issues that are disrupting the negotiation process. Ask the other party directly if they can extend the same respect you have shown them. How can I reach understanding? Understanding why the other party feels a certain way is more important than knowing the facts involved. There are two ways to reach understanding while negotiating:

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Consider the other party's point of view. Seeing the negotiation as the other party does can be enlightening and will help you appreciate their needs. Do not place blame on the other party even if it is justified. The other party is likely to react defensively. Talk about the issues, not the persons, causing the dilemma so the other party will be more willing to discuss the problem. How can empathy make me a better negotiator? Emotions play a significant role in negotiation. Empathy enables you to appreciate the other party's feelings and helps you determine how to approach the negotiation in the most effective manner. How do I counteract strong emotions? There are several ways you can address a party who is bringing strong emotions into a negotiation:
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Examine your own emotions and ask yourself why you and the other party are feeling a certain way. Simply taking note of the emotions both parties are experiencing can provide a great deal of insight. Openly acknowledge the emotions felt by both you and the other party. Acknowledgement can help put everyone at ease. Let the other party vent their frustrations and express their complaints. Do not interrupt a party who is letting off steam since it will only further upset them. Maintain self-control and remain calm when faced with intense emotions. Do not become caught up in the emotions of the moment and react inappropriately since this could lead to failed negotiations.

How do I identify needs? There are four effective ways to recognize the needs of the other party: 1. Put yourself in the other party's shoes in order to recognize their concerns more clearly. 2. Consider what requests you have made and examine why the other party has not been able to comply with those requests. 3. Recognize that varieties of sources create needs and the other party may have to juggle several interests during the negotiation. 4. Understand basic human needs, as it is likely that the true source is a basic human need such as the need for security. How do I talk about needs? There are four ways to approach talking about needs with the other party: 1. Offer rationale for your needs before stating a proposal to meet those interests. Simply stating what solutions will serve your needs is not enough. 2. Do not dwell on the past, but focus on the future to determine how to meet the needs of both parties.

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3. Be firm in your needs, but flexible in reaching solutions. Do not enter a negotiation with only one option in mind to serve your interests. Think of a variety of ways that your needs can be met. 4. Strongly support your needs, but treat others kindly. Use an assertive approach to serve your interests while maintaining a congenial style of interaction with the other party. Communication and Negotiation How can I communicate clearly to the other party? Think of how you want the other party to understand the information. Win-win negotiating is only possible if the other party understands your position. You will not insult them by trying to be ''too clear.'' Use statements such as ''I'm concerned about the problem we're facing,'' or ''I'm upset about the recent development,'' as opposed to ''I'm upset you were not able to meet the deadline.'' How can listening help me become a better negotiator? To be an effective listener, you need to take an active role in the process. Three guidelines that will help you become a more active listener are:
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Make eye contact with the other party and show interest in what they are saying. When they see they have your full attention, they will be more willing to express their true feelings and share information. Wait before responding to let what the other party has said sink in. This action gives you time to contemplate what they are trying to communicate, and demonstrates that you are giving the other party's concerns your full consideration. Repeat what the other party has said to make certain that you fully understand what they are saying to eliminate communication breakdowns.

Can body language tell me about the other party's attitude? Yes. Body language can provide insights into emotions and attitudes. Some clues to look for include:
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Posture, such as leaning toward you while seated, indicates the other party is receptive, but leaning back conveys the message that they are less open. Limb positions, such as folded arms and crossed legs, indicate disagreement. Clenched or fidgety hands indicate tenseness and non-receptiveness. Facial expressions, such as strong eye contact, indicate an open attitude and minimal eye contact indicates an unreceptive attitude. High levels of animation usually closely match thoughts and feelings. Tone and inflection can be helpful in reading an attitude, but use this along with other signals. Tone of voice is easy to manipulate so you cannot rely on it alone to gauge the other party's thoughts.

Finding Mutual Benefit What is mutual benefit? Mutual benefit makes sure that both parties walk away from a negotiation satisfied with the outcome.

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Focusing only on your needs will promote an antagonistic atmosphere where one party's needs are met at the other's expense. How do I explore different options for mutually beneficial solutions? An effective technique for viewing the situation both generally and specifically involves breaking the issue into smaller components. The combined effect of finding solutions for each component may lead to the solution of the larger problem. This process can be summarized in the following five steps: 1. Identify the problem generally to determine the major points of difference. 2. Identify the details specifically so you can address individual parts of the issue. 3. Suggest specific actions to address the details individually. 4. Suggest options to expand the results of the detailed actions to the general problem. 5. Create secondary options in case the first options do not work. How do I find common interests? Common interests facilitate the process of finding solutions by establishing common ground for both parties. There are three items to keep in mind when looking for common interests: 1. Common interests require some searching out. Initially it may be difficult to recognize any shared interests between you and the other party. 2. Common interests are only as useful as you make them. Unless you emphasize common interests and develop ways to build agreements with these interests as the foundation, they will serve no purpose. 3. Common interests provide positive negotiation atmospheres. Parties feel more comfortable working with one another when they realize they have shared interests. How can I use differing interests? Differing interests can also be helpful in reaching mutually beneficial agreements. They can provide situations in which one party values something which the other party sees as having little value. Try to determine if there is something you or the other party could gain without causing a great deal of loss to the other side. These differences in interests provide for amicable exchanges of concessions. Why do I need to value the solution? Measuring the value of a solution enables you to identify if one party is benefiting at the expense of the other. It also helps make sure that both parties have their needs satisfied. How can I get the other party to agree to my valuation methods? You must be able to persuade the other party that using objective criteria is beneficial to both of you.

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There are three areas you will need to discuss with the other party to convince them of this procedure: 1. Approach each issue as an opportunity to establish criteria for reaching a fair solution. Establish that both you and the other party have a common interest and want to reach a fair agreement. 2. Consider criteria that the other party supports and determine if you can support them. If not, you and the other party may need to ask that a third party enter the negotiation as an arbitrator. 3. Do not be pressured into using unsound methods. Unless the other party can offer a fair method of valuation, hold onto the criteria you support. Working the Negotiation How can I make concessions successfully? Negotiating is giving and taking concessions, using techniques like these:
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Make a concession before the other party can ask for one to avoid having them select one that may be important to you. The first offer is usually an attempt to start the negotiation. Make the least important concessions first and save the valuable ones until the end of the negotiation. Show considerable reluctance with every concession. If the other party thinks your concessions have no value to you, they will take more concessions to equal what they have made to you. Ask for a concession each time that you make one by saying things like, ''Since you want X, why don't you give me Y for it.'' Another tactic is saying, ''If you agree to Y, then I'm willing to let you have Z.''

What should I do if I begin losing concessions? In any negotiation, there is a possibility that you will lose concessions. There are three options you can use to address this situation: 1. Request a break or recess to review the progress you have made and plan what to do next. 2. Take the rest of the day to regroup. Stepping away from the opposition for a little while will give you the energy to come back stronger. 3. Shift the conversation to a stronger topic when the other party is dwelling on one of your weaker issues. Pick your strongest, most confident areas and explore those. How can I protect myself against a more powerful negotiator? It is crucial that you not feel pressured into accepting an agreement that is not beneficial to you or your company. There are two methods for protecting yourself: 1. Set your goals and limits before entering the negotiation so that you know whether an agreement is acceptable. Well-defined goals and limits will help you realize when to reject an agreement. 2. Determine your alternatives. If the other party offers an agreement that is not as beneficial as your alternatives, you can exit the negotiation. This action acknowledges that you will not make an

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unsatisfactory decision under pressure. Should I use a bottom line strategy? A bottom line is the least attractive offer that a party will accept. Setting a bottom line can help you resist the pressure to accept an unsatisfactory agreement, but it restricts your creativity in reaching a solution. Having alternatives available is a more effective strategy for protecting yourself from negotiators that are more powerful. How can I level the playing field? Alternatives play a key role in leveling the playing field between you and a powerful negotiator. Keep these three issues in mind when facing a more powerful negotiator: 1. Power depends on your alternatives. You have the ability to walk away from the negotiation with confidence if the terms are unsatisfactory. 2. Take the time to develop your alternatives. The more details you know about them, the greater your confidence will be in handling the negotiation. 3. Consider the other party's alternatives if you both have solid choices. It may be wise to agree that the best decision for both of you is not to negotiate, but to pursue these other options instead. Closing the Deal How do I get the other party to accept my solution? You should have little difficulty in convincing the other party to accept a solution if you have developed an agreement that is beneficial to both parties. When should I close the deal? Treat the closure as a separate step in the negotiation process and continually look for opportunities to close. Once you have achieved an acceptable agreement, try to close the deal. If the other party is not satisfied with the final agreement you will need to step back from the current agreement and discover how to meet their needs. How do I close successfully? When you are certain that the agreement you reached satisfies both parties, take a break to review the agreement before considering it officially closed. Keep in mind that you do not want to rush the closing process, especially if a party is not completely satisfied with the terms of the agreement.

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