Mastering Negotiation Skills

Prepared By :
Gihan Aboueleish
Presented By: TARINI- 41002 SACHIN- 41001
Contents
What is Negotiation? Features of Negotiation Why Negotiate ? Types of Negotiation Distributive Vs ntegrative Negotiation Negotiation !ro"ess #ATNA #argaining $one %o&el of Negotiation Negotiating #ehavior ssues in Negotiation Thir& party Negotiations 'o( to a"hieve an )ffe"tive Negotiation Negotiation Tips
Negotiation Skills - Gihan
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Negotiation Skills - Gihan Aboueleish
What Is Negotiation ?
The (or& /negotiation/ originate& fro0 the 1atin e2pression3 /negotiatus/3 (hi"h 0eans "to carry on business"4
5A give-an&-take &e"ision-0aking pro"ess involving inter&epen&ent parties (ith &ifferent preferen"es46
The pro"ess of "onferring to arrive at an agree0ent bet(een &ifferent parties3 ea"h (ith their o(n interests an& preferen"es4
Defined :
Negotiating is the pro"ess of "o00uni"ating ba"k an& forth3 for the purpose of rea"hing a 8oint agree0ent about &iffering nee&s or i&eas4 t is a "olle"tion of behaviours that involves communication, sales, marketing, psychology, sociology, assertiveness and conflict resolution4 A negotiator 0ay be a buyer or seller3 a "usto0er or supplier3 a boss or e0ployee3 a business partner3 a &iplo0at or a "ivil servant4 9n a 0ore personal level negotiation takes pla"e bet(een spouse-s frien&s3 parents or "hil&ren4
Features Of Negotiation
%ini0u0 t(o parties !re&eter0ine& goals )2pe"ting an out"o0e ;esolution an& <onsensus !arties (illing to 0o&ify their positions !arties shoul& un&erstan& the purpose of negotiation
Why Do We Negotiate ?
To reach an agreement To beat the opposition To compromise To settle an argument To make a point
Types Of Negotiation
Distributive Negotiation ntegrative Negotiation
Distributive Negotiation
!arties "o0pete over the &istribution of a fi2e& su0 of value4 The key @uestion in a &istribute& negotiation is3 5Who (ill "lai0 the 0ost value?6 A gain by one si&e is 0a&e at the e2panse of other4 The Seller-s goal is to negotiate as high a pri"e as possibleA the #uyer-s goal is to negotiate as lo( a pri"e as possible4 Thus3 the &eal is "onfine&B there are not 0u"h opportunities for "reativity or for enlarging the s"ope of the negotiation4
Integrative Negotiation
n ntegrative Negotiation3 parties "ooperate to a"hieve 0a2i0iDe benefits by integrating their interests into an agree0ent4 This is also kno(n as a (in-(in negotiation4
The key @uestions isB How can the resource best be utilized?
ntegrative negotiations ten& to o""ur in follo(ing situationsB Stru"turing of "o0ple2 long-ter0 Strategi" ;elationships or other "ollaborations4 When the &eal involves 0any finan"ial an& non-finan"ial ter0s4 n an integrative negotiation33 there are 0any ite0s an& issues to be negotiate&3 an& the goal of ea"h si&e is to 5"reate6 as 0u"h value as possible for itself an& the other si&e4
Distributive Versus Integrative Negotiations

<hara"teristi" 9ut"o0e %otivation nterests ;elationship ssues involve& Ability to 0ake tra&e-offs Solution Distributive Win-lose n&ivi&ual gain 9ppose& Short-ter0 Single Not Fle2ible Not "reative ntegrative Win-(in Eoint an& in&ivi&ual gain Different but not al(ays 9pposite 1onger or Short-ter0 %ultiple Fle2ible <reative
Negotiation rocess
PREPARATION INFORMATION SHARING
BARGAINING
FINALIZING THE DEAL
!"TN"
#ATNA is A
Best Alternative To Negotiated Agreement
Why BATNA !atter

#ATNAs tell you (hen to a""ept an& (hen to re8e"t an agree0ent
When a proposal is better than your #ATNAB ACCEPT IT When a proposal is worse than your #ATNAB REJECT IT
Negotiation: A "ounter#intuitive Pro$ess

Title "o0es fro0 re0arks 0a&e by parti"ipants at so0e of 0y negotiation (orkshops 5that-s the opposite of (hat &o6 5 kno( shoul& &o that3 but fin& 0yself &oing e2a"tly the opposite6 5 ts "ounter-intuitive6 What are people saying ? They re"ogniDe the pru&en"e of a parti"ular strategy #ut they fin& it &iffi"ult to i0ple0ent it Their natural in"lination is to &o the opposite of (hat they re"ognise is the pru&ent strategy
Intuitive # Counter$intuitive
What are so0e of the intuitive things (e &o in a negotiation the "ounter-intuitive thing (e 0ight "onsi&er as an alternative ?
Shift into manual Focus on interests De er the negotiation to a ti!e o our o"n choosing# gather in or!ation irst As* "h) our %ro%osa& (oesn+t "or*# an( gather in or!ation Instea( o re'ecting# as* "h) their %ro%osa& is i!%ortant# an( gather in or!ation
1=
Automatic gear
Focus on Positions Dive into the negotiation
$hen our %ro%osa&s are re'ecte(# 'usti ) an( (e en( the! $hen a %ro%osa& is !a(e to us that is unacce%ta,&e# re'ection
Basi$ Prin$iples "ommon To All %orms &f Negotiation

There are 0ini0u0 * parties involve& in the negotiation pro"ess4 There e2ists so0e "o00on interest3 either in the sub8e"t 0atter of the negotiation or in the negotiating "onte2t3 that puts or keeps the parties in "onta"t4 Though the parties have the sa0e &egree of interest3 they initially start (ith &ifferent opinions an& ob8e"tives (hi"h hin&ers the out"o0e in general4
)a"h party is un&er an i0pression that there is a possibility of persua&ing the other party to 0o&ify their original position3 as initially parties feel that they shall 0aintain their opening position an& persua&e the other to "hange4
n the beginning3 parties "onsi&er that negotiation is a better (ay of trying to solve their &ifferen"es4
)a"h party has so0e influen"e or po(er F real or assu0e& F over the other-s ability to a"t4 The pro"ess of negotiation is that of intera"tion bet(een people F usually this is &ire"t an& verbal inter"hange4
During the pro"ess3 the i&eal out"o0e proves unattainable but parties retain their hope of an a""eptable final agree0ent4
"hara$teristi$s &f An 'ffe$tive Negotiator

'e shoul& be a goo& learner an& observer4 Shoul& kno( the bo&y language of the people at the negotiation pro"ess4 Shoul& be open an& fle2ible an& yet fir04 )2er"ise great patien"e3 "oolness an& 0aturity4 Shoul& possess lea&ership @ualities4
Shoul& "ontrol e0otions an& not sho( his (eaknesses4 Shoul& bargain fro0 the position of strength4 Shoul& kno( an& anti"ipate the pros an& "ons of his ea"h 0ove an& its reper"ussions4 Shoul& kno( ho( to "reate the 0o0entu0 for the negotiations an& 0ust kno( (hen to e2it an& (here to e2it by "losing the talks su""essfully4
Shoul& buil& trust an& "onfi&en"e4 Shoul& be "onfi&ent an& opti0ist4 Shoul& have "lear "ut goals an& ob8e"tives4 f ne"essary3 he shoul& provi&e a fa"e saving for0ula for his "ounter party4 Shoul& be able to grasp the situation fro0 0any &i0ensions4 Shoul& kno( hu0an psy"hology an& fa"e rea&ing
Shoul& not be a &oubting Tho0as4 Shoul& plan an& prepare thoroughly (ith relevant &ata an& infor0ation to avoi& blank 0in& in the pro"ess4 Shoul& ra&iate energy an& enthusias0 an& 0ust be in a position to e0pathiDe (ith his opponents4 Shoul& be a patient listener4
(o) To Develop These *ills And +se Them 'ffe$tively ?

(hat negotiation 0eans an& the various for0s it "an take that negotiating3 in the fullest sense3 0eans forging long-ter0 relationships the role that the in&ivi&ual personalities play in negotiating that you 0ust take a variety of approa"hes to negotiation3 sin"e no single set of prin"iples (ill suffi"e in all "ir"u0stan"es
Negotiation *ills tyle Test
Types &f Negotiation In &rgani,ations
!anagerial Negotiations
Types
Day-to-day/ Managerial Negotiations
arties Involve%
1. Different levels of Manage ent !. "n #etween $olleagues %. &rade unions '. (egal advisers
&'amples
1. Negotiation for )ay, ter s and working $onditions. !. Des$ri)tion of the *o# and fi+ation of res)onsi#ility. %. "n$reasing )rodu$tivity.
Co
&y)es
er$ial Negotiations
,arties "nvolved -+a )les
Co er$ial Negotiations
1. !. %. '. 0. 1. 2.
Manage ent .u))liers /overn ent Custo ers &rade unions (egal advisors ,u#li$
1. .triking a $ontra$t with the $usto er. !. Negotiations for the )ri$e and 3uality of goods to #e )ur$hased. %. Negotiations with finan$ial institutions as regarding the availa#ility of $a)ital
(egal Negotiations
&y)es ,arties "nvolved -+a )les
(egal Negotiations
+),anagement -)Customers
()*overnment
() "%hering to the la.s of the local an% national government)
How To Plan our !e"otiation A"enda
Preparing %or A u$$essful Negotiation Depen&ing on a s"ale of &isagree0ent3 the level of preparation 0ight be appropriate for "on&u"ting the su""essful negotiation4 For a s0all &isagree0ents3 e2"essive preparation "oul& be "ounter-pro&u"tive be"ause it &o takes ti0e (hi"h is better fo"use& in rea"hing the tea0 goals4
f the 0a8or &isagree0ent nee&e& to be resolve&3 preparing thoroughly for that is re@uire&3 an& (orth(hile4 Think through follo(ing points before you "oul& start negotiating4 #oals$ What you (ant to get out fro0 the negotiation? What &o you e2pe"t fro0 the other person?
What &o you an& the other person have so that the other (ants it? What 0ight you both be prepare& to give a(ay?
What you an& the other person have (hi"h you "an tra&e?
Alternati%es$ f you &o not rea"h the agree0ent (ith hi0Gher3 (hat alternatives you have? Are these things goo& or ba& alternatives? 'o( 0u"h it 0atters if you &o not rea"h the agree0ent? Will the failure to rea"h the agree0ent "ut out future opportunities? What alternatives 0ay the other person have?
Negotiation Skills Gihan Aboueleish
The relationshi&$ What is a history of relationship? <an or shoul& this history i0pa"t negotiation? Will there be any of the hi&&en issues that 0ight influen"e negotiation? 'o( you (ill han&le these?
E'&ected outco(es$ What out"o0e (oul& people be e2pe"ting fro0 the negotiation? What (as the out"o0e in the past3 an& (hat pre"e&ents been set?
The Conse)uences$
What are the "onse@uen"es of (inning or losing this negotiation by you? What are the "onse@uen"es of (inning or loosing by the other person?
Power$
Who has the po(er in the relationship? Who &o "ontrols the resour"es? Who stan&s to lose 0ost if agree0ent is not been rea"he&? What po(er &oes other person have to &eliver (hi"h you &o hope for?
Possible *olutions$
#ase& on all "onsi&erations3 (hat possible "o0pro0ises 0ight be there?
Negotiating And .ong#term /elationships

Goo& negotiators are the people (ho un&erstan& ho( to buil& key relationships ho( to i&entify (hat people nee& ho( to give the0 (hat they nee& an& ho( to get (hat they (ant in return3 all in a (ay that see0s effortless4
Negotiating And Individual Personalities

Autocratic 0anagers typi"ally hol& the vie( that they are going to get (hat they (ant (hen they intera"t (ith subor&inates3 be"ause their inherent authority pre"lu&es the nee& to negotiate4 These 0anagers &o not realiDe that3 in the pro"ess of han&ing out or&ers3 they are engage& in a kin& of one-si&e& negotiation that "an antagoniDe others3 (ith the result that the tasks they (ish to see "o0plete& 0ay be "arrie& out i0properly or not at all4
n or&er to avoi& "onfli"t3 they &o not negotiate at all an& often en& up overri&ing their o(n interests4
The Accommodating 0anager is 0ore "on"erne& (ith (hat others (ant than (ith their o(n nee&s4
B0A0T0N0A
The Negotiation Pro$ess

+AT!A
&he Best Alternative To a Negotiated Agree ent4 the lowest a$$e)ta#le value 5out$o e6 to an individual for a negotiated agree ent.
n the si0plest ter0s3 if the propose& agree0ent is better than your 5#ATNA63 then you shoul& a""ept it4 f the agree0ent is not better than your 5#ATNA6 3 then you shoul& reopen negotiations4
,our 5#ATNA 5 is the only stan&ar& (hi"h "an prote"t you both fro0 a""epting ter0s that are too unfavourable an& fro0 re8e"ting ter0s it (oul& be in your interest to a""ept46
Where Do +se This *ill?

)verything is negotiate&4 Fa0ily an& personal 5 Where shoul& (e go for &inner?6 5 <an borro( the "ar?6 A"a&e0i" resear"h 5 Fun& 0y pro8e"t46 5 !ublish 0y paper46 #usiness ventures 5 (ant a raise46 5 nvest in 0y "o0pany46 5 !ay 0e a li"ense fee or -ll sue you46
Determining 1our BATNA

#ATNAs are not al(ays rea&ily apparent4 Fisher an& Hry outline a si0ple pro"ess for &eter0ining your #ATNAB &evelop a list of a"tions you 0ight "on"eivably take if no agree0ent is rea"he&A i0prove so0e of the 0ore pro0ising i&eas an& "onvert the0 into pra"ti"al optionsA an& sele"t3 tentatively3 the one option that see0s best4
A persons go for "ar pur"hase4

ITo negotiate (ith sho(roo0 sales 0an for lesser pri"eJ
N T BA
e The "ar o(ner is not l p m agreeing for the lesser a 2 ' pri"e4 A
Than "usto0er "an ask for ;a&ial tiresIbest alternativeJ (ith any in"rease in pri"e further4
C"/& /T0D1
"ase tudy 3 Appli$ation 45

'ighly #rill 1eisure <entre has hire& you to help the0 (ith their 0arketing &e"ision 0aking4 !erfor0 a SW9T analysis on 'ighly #rill 1eisure <entre3 base& upon the follo(ing issuesB
"A ' T+D1 3 Appli$ation 46

A "o00unity &is"overs that its (ater is being pollute& by the &is"harges of a nearby fa"tory4 <o00unity lea&ers first atte0pt to negotiate a "lean-up plan (ith the "o0pany3 but the business refuses to voluntarily agree on a plan of a"tion that the "o00unity is satisfie& (ith4
Issues In Negotiation
The ;ole of %oo& K !ersonality Traits in NegotiationA
!ositive 0oo&s positively affe"t negotiations Traits &o not appear to have a signifi"antly &ire"t effe"t on the out"o0es of either bargaining or negotiating pro"esses Le2"ept e2traversion3 (hi"h is ba& for negotiation effe"tivenessM
Gen&er Differen"es n NegotiationsA

Wo0en negotiate no &ifferently fro0 0en3 although 0en apparently negotiate slightly better out"o0es4 %en an& (o0en (ith si0ilar po(er bases use the sa0e negotiating styles4 Wo0en-s attitu&es to(ar& negotiation an& their su""ess as negotiators are less favorable than 0en-s4
The Importan$e of BATNAs

9n"e parties establish a #ATNA3 they 0ust then "o0pare the "osts an& benefits of the #ATNA to all of the settle0ent options on the table4 Ask3 /WhatNs it going to "ost you if you &onNt?/
Negotiation trategies
%ost of the negotiation literature fo"uses on t(o strategies3 although they "all the0 by &ifferent na0es4 9ne strategy is interest-base&Lor integrative3 or "ooperativeM bargaining3 (hile the other is positional Lor &istributive or "o0petitiveM bargaining4
Interest#based Bargaining 7Win#)in Bargaining

ntegrative bargaining in (hi"h parties "ollaborate to fin& a 5(in-(in/ solution to their &ispute4 This strategy fo"uses on &eveloping 0utually benefi"ial agree0ents base& on the interests of the &isputants4 nterests in"lu&e the nee&s3 &esires3 "on"erns3 an& fears i0portant to ea"h si&e4
Positional Bargaining !ositional bargaining is one that involves hol&ing on to a fi2e& i&ea3 or position3 of (hat you (ant an& arguing for it an& it alone3 regar&less of any un&erlying interests4
!e"otiation *,ills *tyle Test
E'ercise -.
;oles B ;ita3 a 17 year ol& girl4 The 9bserver be"o0es ;ita-s parent4 9thers are 9bservers to re"or& useGabuse of 5(inG(in6 te"hni@ues4 #a"kgroun&B ;ita is "alling ho0e fro0 a payphone on '(y .C1 to tell her parent she is hit"h-hiking to 'olly(oo& to be a 0ovie star4 She has no 0oney3 is a little afrai&3 an& se"retly (ants to go to &ra0a s"hool4 The parent is (orrie& about ;ita being out after "urfe(4 !arent pi"ks up the Ophone3 an& has + 0inutes to effe"t a 5(in-(in6 approa"h before the payphone ti0es out4
E'ercises -/
+ac,"roundB *uresh has a !rogra00er off si"k3 an& (ants to negotiate t(o (eeks of Punal-s ti0e to (ork on the <o0pany-s 0ost i0portant pro8e"t i00e&iately3 be"ause Punal is the best progra00er3 an& kno(s the tasks4 Delays 0ay affe"t everyone-s bonus4 Punal-s %anager is "on"erne& the loss of Punal (ill 0ean he (ill not be able to "o0plete tasks on another pro8e"t their &epart0ent is "o00itte& to &eliver Lre@uiring one (eek of (ork in the ne2t + (eeksM3 be"ause Suresh has a reputation of over-utiliDing resour"es Lan& pa&&ing their s"he&ule "ontingen"yM4 9ther "o00it0ents (ill also nee& 8uggling4
E'ercise -0
Ti(eB + 0inutes
+ac,"round$ ;ai0a is not using the "ar this (eeken&3 but is "on"erne& the goo& frien& is a fast &river4 The frien& is generous3 an& has &one ;ai0a several favors for ;ai0a3 in"lu&ing a re"ent birth&ay gift4
1se23Co(&etition
When @ui"k3 &e"isive a"tion is vital Lin e0ergen"iesMA on i0portant issues4 Where unpopular a"tions nee& i0ple0enting Lin "ost "utting3 enfor"ing unpopular rules3 &is"iplineM4 9n issues vital to the organiDation-s (elfare4 When you kno( you-re right4 Against people (ho take a&vantage of non"o0petitive behavior4
1se 233Collaboration
To fin& an integrative solution (hen both sets of "on"erns are too i0portant to be "o0pro0ise&4 When your ob8e"tive is to learn4 To 0erge insights fro0 people (ith &ifferent perspe"tives4 To gain "o00it0ent by in"orporating "on"erns into a "onsensus4 To (ork through feelings that have interfere& (ith a relationship4
1se23A%oidance
When an issue is trivial3 or 0ore i0portant issues are pressing4 When you per"eive no "han"e of satisfying your "on"erns4 When potential &isruption out(eighs the benefits of resolution4 To let people "ool &o(n an& regain perspe"tive4 When gathering infor0ation superse&es i00e&iate &e"ision4 When others "an resolve the "onfli"t effe"tively4 When issues see0 tangential or sy0pto0ati" of other issues4
1se23Acco((odation 4
When you fin& you-re (rong an& to allo( a better position to be hear&4 To learn3 an& to sho( your reasonableness4 When issues are 0ore i0portant to others than to yourself an& to satisfy others an& 0aintain "ooperation4 To buil& so"ial "re&its for later issues4 To 0ini0iDe loss (hen out0at"he& an& losing4 When har0ony an& stability are espe"ially i0portant4 To allo( e0ployees to &evelop by learning fro0 0istakes4
1se2co(&ro(ise4
When goals are i0portant but not (orth the effort of potential &isruption of 0ore assertive approa"hes4 When opponents (ith e@ual po(er are "o00itte& to 0utually e2"lusive goals4 To a"hieve te0porary settle0ents to "o0ple2 issues4 To arrive at e2pe&ient solutions un&er ti0e pressure4 As a ba"kup (hen "ollaboration or "o0petition is unsu""essful4
1nderstandin" our *tyle 56 !e"otiation
#ehaviour %otivationB Assertive-&ire"ting3 Altruisti"-nurturing3 Fle2ible-"ohering !ersonal strengths !ersonal (eaknesses
Techni)ues 6or +etter !e"otiation
.7 Pre&are8 &re&are8 &re&are /7 Pay attention to ti(in" 07 9ea%e behind your e"o3 :7 Ra(& u& your listenin" s,ills3 ;7 I6 you don<t as,8 you don<t "et
=3 Antici&ate co(&ro(ise >3 566er and e'&ect co((it(ent ?3 @on<t absorb their &roble(s A3 *tic, to your &rinci&les .B3 Close with con6ir(ation3
B.C Pre&are8 Pre&are8 Pre&are

!ay attention to ti0ing4 Ti0ing is i0portant in any negotiation4 Sure3 you 0ust kno( (hat to ask for4 #ut be sensitive to when you ask for it4 There are ti0es to press ahea&3 an& ti0es to (ait4 When you are looking your best is the ti0e to press for (hat you (ant4 #ut be(are of pushing too har& an& poisoning any long-ter0 relationship4
B/C Pay Attention To Ti(in"

!ay attention to ti0ing4 Ti0ing is i0portant in any negotiation4 Sure3 you 0ust kno( (hat to ask for4 #ut be sensitive to when you ask for it4 There are ti0es to press ahea&3 an& ti0es to (ait4 When you are looking your best is the ti0e to press for (hat you (ant4 #ut be(are of pushing too har& an& poisoning any long-ter0 relationship4
B0C 9ea%e +ehind our E"o3 1eave behin& your ego4 The best negotiators either &onNt "are or &onNt sho( they "are about (ho gets "re&it for a su""essful &eal4 Their talent is in 0aking the other si&e feel like the final agree0ent (as all their i&ea4
B: C Ra(& 1& our 9istenin" *,ills3

;a0p up your listening skills4 The best negotiators are often @uiet listeners (ho patiently let others have the floor (hile they 0ake their "ase4 They never interrupt4 )n"ourage the other si&e to talk first4 That helps set up one of negotiationNs ol&est 0a2i0sB Whoever 0entions nu0bers first3 loses4 While thatNs not al(ays true3 itNs generally better to sit tight an& let the other si&e go first4 )ven if they &onNt 0ention nu0bers3 it gives you a "han"e to ask (hat they are thinking4
C B;i6 ou @on<t As,8 ou @on<t #et

f you &onNt ask3 you &onNt get4 Another tenet of negotiating is /Go high3 or go ho0e4/ As part of your preparation3 &efine your highest justifiable pri"e4 As long as you "an argue "onvin"ingly3 &onNt be afrai& to ai0 high4 #ut no ulti0atu0s3 please4 Take-it-or-leave-it offers are usually out of pla"e4
B=C Antici&ate Co(&ro(ise3

Anti"ipate "o0pro0ise4 ,ou shoul& e2pe"t to 0ake "on"essions an& plan (hat they 0ight be4 9f "ourse3 the other si&e is thinking the sa0e3 so never take their first offer4 )ven if itNs better than youN& hope& for3 pra"ti"e your best look of &isappoint0ent an& politely &e"line4 ,ou never kno( (hat else you "an get4
B>C 566er And E'&ect Co((it(ent3
9ffer an& e2pe"t "o00it0ent4 The glue that keeps &eals fro0 unravelling is an unshakable "o00it0ent to &eliver4 ,ou shoul& offer this "o0fort level to others4 1ike(ise3 avoi& &eals (here the other si&e &oes not &e0onstrate "o00it0ent4
Don8t Absorb Their Problems0

DonNt absorb their proble0s4 n 0ost negotiations3 you (ill hear all of the other si&eNs proble0s an& reasons they "anNt give you (hat you (ant4 They (ant their proble0s to be"o0e yours3 but &onNt let the04 nstea&3 &eal (ith ea"h as they "o0e up an& try to solve the04 f their /bu&get/ is too lo(3 for e2a0ple3 0aybe there are other pla"es that 0oney "oul& "o0e fro04
*tic, To our Princi&les3

Sti"k to your prin"iples4 As an in&ivi&ual an& a business o(ner3 you likely have a set of gui&ing prin"iples Q values that you 8ust (onNt "o0pro0ise4 f you fin& negotiations "rossing those boun&aries3 it 0ight be a &eal you "an live (ithout4
Close with con6ir(ation3 <lose (ith "onfir0ation4 At the "lose of any 0eeting Q even if no final &eal is stru"k Q re"ap the points "overe& an& any areas of agree0ent4 %ake sure everyone "onfir0s4 Follo(-up (ith appropriate letters or e0ails4 Do not leave behin& loose en&s4
g n i l & n a ' s r o t ia t o g e N t l u " i f f i D
Speak 0ore @uietly than the04 'ave 0ore spa"e in bet(een your (or&s than the04 f they interrupt3 pause for a fe( se"on&s after they finish4 #e "riti"al of foul language4 Do not rise to a bait if they atta"k or bla0e you4 gnore all threats4
Handlin" E(otions
E(otional Challen"es
AngerGe2asperation nsulte& Guilt
Reco((ended Res&onse
Allo( venting4 !robe for (hy What (oul&n-t be insulting? Fo"us on issues ;e-fo"us
False flattery Ti&sB Don-t lose your "ool 4 Try to &efuse (ith a"kno(le&ge0ent3 e0pathy3 patien"e3 i0partiality4 <onsi&er &ealing (ith less e0otional issues first Pno( your o(n 5'ot #uttons6 !ra"ti"e
9no) 1our (ot Buttons

-+er$ise7 (ist the last % ti es you felt so eone )ressed your 8ot 9utton.
Su,'ect (iscusse(
$ho %ushe( $h) (i( )ou ee& Ne.t ti!e I )our ,uttons- !ani%u&ate("i&&/00
.o why negotiate: ;ea$h an agree ent

/et the #etter of the o))osition Co )ro ise .ettle a dis)ute Make a )oint
Negotiation tyles
1. competitive 2. collaborative 3. compromising 4. avoiding 5. accommodating
9ey steps
Co uni$ate $learly
"n writing .)eed -nfor$e
Confiden$e <le+i#le
Close deal Control
9uild e+)e$tations Who with Homework Objecti es ?1Bene!its to both
Strategy
Which style" #asy !irst $anage agenda Negotiation Skills - Gihan Aboueleish
Preparation
Negotiation trategy
'igh
NT THT 9N IAbility to 0o&ify othersJ
<9%!;9% S)
19G <A11,
1o( 1o(
NF1H)N< )
'igh
#A;GA N N G
)%9T 9N
+ar"ainin" Done Eodel 56 !e"otiation
,our initial point
,our target point
,our resistan"e point
Area of potential agree0ent 9pponent-s resistan"e point 9pponent-s target point
9pponent-s initial point
'2ample
!e"otiatin" +eha%iour
Gavin Penne&y &es"ribes + types of behaviour that (e "an &isplay an& en"ounter (hen in a negotiating situation4
RE@ +91E P1RP9E
;)D #ehaviour

Eani&ulation A""ressi%e Inti(idation E'&loitation Always see,in" the best 6or you !o concern 6or &erson you are ne"otiatin" with Ta,in"
+91E #ehaviour
Fin win a&&roach Coo&eration Trustin" Paci6yin" Relational #i%in"
!H;!1) #ehaviour
#i%e (e so(e o6 what I want Gred7 IHll "i%e you so(e o6 what you want Gblue7 @eal with &eo&le as they are not how you thin, they are #ood intentions Two way e'chan"e Pur&le beha%iour incites &ur&le beha%iour Tit 6or tat strate"ies 5&en Peo&le ,now where they stand @eter(ination to sol%e &roble(s by both sets o6 criteria o6 the (erits o6 the case andIor the ter(s o6 a ne"otiated e'chan"e
ThirdC&arty !e"otiations
14 nvestigation *4 %e&iation +4 <on"iliation .4 Arbitration 74 A&8u&i"ation
E66ecti%e !e"otiation
Su""essful relationships are built on "o00uni"ation an& trust4 1a"k of trust lea&s to 5(in-lose6 or 5lose-lose6 result4 Negotiation is one (ay of "reating trust F or &e"i&ing (hether trust is 8ustifie&4 )2a0pleB 5The Negotiator-s Dile00a6 a "lassi" risk strategy ga0e
The !e"otiatorHs @ile((a

# <ooperates A Coo&erates +oth coo&erates #oth have a goo& out"o0e # <o0petes A Coo&erates + Co(&etes A has terrible out"o0e3 # has great out"o0e +oth co(&etes #oth have 0e&io"re out"o0e
A Co(&etes
A Co(&etes + Coo&erates A has great out"o0e3 # has terrible out"o0e
!e"otiation Ti&s4
1M Do not un&eresti0ate your po(er4 *M Do not assu0e that other party kno(s your (eaknesses4 +M t is a 0istake to assu0e you kno( (hat the other party (ants4
.M Never a""ept the 1st offer4 7M Don-t fear to negotiate4
*ills %or 'ffe$tive Negotiation

Pre&aration and &lannin" s,ill Jnowled"e o6 the subKect Ability to thin, clearly and ra&idly under &ressure and uncertainty Ability to e'&ress thou"hts %erbally 9istenin" s,ill Patience #eneral &roble(Csol%in" and analytical s,ills
!reparation
14 *4 +4 .4 74 :4 =4 >4 ?4 Firstly un&erstan& (hat it is you (ant? What &o you think your opponent (ants? What (oul& happen if you &i&n-t &o a &eal? Do you kno( your stakehol&ers? Do you kno( (ho the &e"ision 0aker is? Are you negotiating (ith the0? f not (hat affe"t &oes that have? Are there "on"essions you "an buil& into the negotiation? Pno( your pro&u"t G servi"e insi&e out? What stan&ar&s are there in the 0arket pla"e? Pno( your pri"e points? What issues &o you think you-ll nee& to over"o0e?
1C4 !rioritiDeR 114 !ra"ti"eR
nfor0ation Sharing
14 *4 +4 .4 74 :4 =4 >4 <o0pany a"tivities an& 0arket position 9pinion on entry points What ele0ents are "learly off the table or not up for &is"ussion an& (hy 9pponents attitu&e an& "o00it0ent %otivational fa"tors L5 (ant this pri"e be"auseS6M Stakehol&ers an& i0portantly &e"ision 0akers !roble0s3 issues or risk An or&erGstru"ture for pro"ee&ings
#A;GA N NG
#argaining has t(o basi" parts
Debating
!roposing
D)#AT NG
To be su""essful in negotiation you 0ust buil& relationships an& trust ,ou nee& to avoi& the follo(ing Point scorin" F 5,our "o0pany is al(ays late (ith &eliveries so -0 not paying thatR6 Insults F 5 f you insist on that pri"e you 0ust be stupi&6 Pro%ocation F 5Peep talking like that an& see (here it gets youR6 Threats F 5,ou 8ust (ait until your other "usto0ers hear about this6
nstea& try +uildin" a relationshi& F t (ill 0ake your negotiation 0u"h easier *tic,in" to an a"reed a"enda F This (ill help avoi& &estru"tive &is"ussions4 *hare in6or(ation and as, )uestions F What &o you (ant F (hat &o they (ant Try and be &ositi%e and listen F What &o they (ant an& (hy F look for areas of (inG(in or easy "o0pro0ise4
!;9!9S NG
When proposing your offer "onsi&er
Consider both your entry and e'it F This "oul& in"lu&e all or so0e of your (ants3 an& your opponents entry an& e2it points Consider how you will &hrase your &ro&osal Consider what will (oti%ate your o&&onent into (a,in" the deal Consider the li,ely res&onse F Think about the 5if &o that then they (ill &o that6 Are there alternati%e &ro&osals? F 9n"e an initial response has been 0a&e are you happy or &o you nee& to offer up so0ething ne(4 Re(e(ber the ,ey thin" is to &ro&ose F &on-t argue an& try an& re0ain realisti"3 an& invite a response fro0 your opponent4
FinaliDing The Deal

So (hen "losing the &eal "onsi&er
Do you have (hat you (ant? Do they have (hat they (ant? <an you signify to your opponent that if "ertain ter0s (ere 0et the &eal "oul& be &one4 Do you both un&erstan& the potential non &eal by not "losing or rea"hing agree0ent? Do"u0ent the agree0ent @ui"kly an& share it (ith your opponent an& get agree0ent on the &etails of the &eal4 Do not offer further "on"essionsR Agree the 0easures that (ill be applie& to re"or& fulfil0ent of the &eal4
Cabot Circus $ 02
!e"otiation and Relationshi&s
/lo#al
arket)la$e
(ong-lasting #usiness relationshi)s
&rust and integrity

Confli$ts with short-ter Deals fro )osition of strength
needs
,re)aration
/ive and take
.hared values
.teady dialogue
Creative solutions
Tr%st and integrity
=our e+)erien$es: Develo)ers Contra$tors .u#-$ontra$tors Consultants .u))liers (o$al govern ent
Negotiating in Dubai
.u
ary
%ore Trust T %ore Wins Never "o0pro0ise on integrity Su""ess is 0easure over ti0eS
!ro0ises F keeping the0 is har& #uil&s reputation
!eople al(ays give the 0ost "onsi&eration3 the best &eals3 to those people they like an& T;HST
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Mastering Negotiation Skills

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Mastering Negotiation Skills

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Prepared By :

Presented By: TARINI- 41002 SACHIN- 41001

Negotiation Skills - Gihan

Negotiation Skills - Gihan Aboueleish

5A give-an&-take &e"ision-0aking pro"ess involving inter&epen&ent parties (ith &ifferent preferen"es46

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Distributive Versus Integrative Negotiations

Negotiation Skills - Gihan Aboueleish

FINALIZING THE DEAL

Negotiation Skills - Gihan Aboueleish

Best Alternative To Negotiated Agreement

Negotiation Skills - Gihan Aboueleish

Why BATNA !atter

Negotiation Skills - Gihan Aboueleish

Negotiation: A "ounter#intuitive Pro$ess

Negotiation Skills - Gihan Aboueleish

Focus on Positions Dive into the negotiation

Basi$ Prin$iples "ommon To All %orms &f Negotiation

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

"hara$teristi$s &f An 'ffe$tive Negotiator

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

(o) To Develop These *ills And +se Them 'ffe$tively ?

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation *ills tyle Test

Types &f Negotiation In &rgani,ations

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

() "%hering to the la.s of the local an% national government)

Negotiation Skills - Gihan Aboueleish

How To Plan our !e"otiation A"enda

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

#ase& on all "onsi&erations3 (hat possible "o0pro0ises 0ight be there?

Negotiating And .ong#term /elationships

Negotiation Skills - Gihan Aboueleish

Negotiating And Individual Personalities

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

The Negotiation Pro$ess

Negotiation Skills - Gihan Aboueleish

Negotiation Skills - Gihan Aboueleish

Where Do +se This *ill?

!e"otiation ,ills tyle Test