P

Plans

M
Maintenance

WIN WIN

R
Relationships

A
Agreements

Ross Reck, PHD

MODULE ONE
UNDERSTANDING THE NEGOTIATION PROCESS

BASIC PHILOSOPHIES OF NEGOTIATING

Win-Lose Win-Win

TRADITIONAL NEGOTIATING METHODS

Positional Bargaining Principled Negotiating

POSITIONAL BARGAINING
Definition: A method of reaching an agreement each party declares a position, argues on its behalf, and then makes a series of concessions to eventually reach a compromise

ASSUMPTIONS OF POSITIONAL BARGAINING

A fixed pie Competition between the parties An adversarial relationship True Needs are concealed Short-term time horizon

GOALS OF POSITIONAL BARGAINING

To win To maximize the margin of victory To get the biggest of the pie To get the best possible agreement for me

ACTIVITIES ASSOCIATED WITH POSITIONAL BARGAING

Declaring a position Defending the position Conceding from the position Reaching a compromise

RESULTS ASSOCIATED WITH POSITIONAL BARGAINING

Poor agreements Stress for participants Lengthy discussions Poor performance Get even attitude

WHY IS POSITIONAL BARGAINING USED?

PRINCIPLED NEGOTIATING
Definition: A method of reaching a mutually satisfactory agreement by utilizing four basic principles

THE FOUR BASIC PRINCIPLES ARE:

Separate people from problems Focus on interests, not positions Invent options for mutual gain Insist on objective criteria

ASSUMPTIONS OF PRINCIPLED NEGOTIATING

An expandable pie Cooperation is possible

GOAL OF PRINCIPLED NEGOTIATING

To achieve a mutually satisfactory agreement To get the best possible agreement for us

ACTIVITIES ASSOCIATED WITH PRINCIPLED NEGOTIATING

Participants assume the role of problem solvers Participants attempt a consensus by: Exploring mutual interests Developing multiple options Being tough on the problem, but easy on the people

RESULTS ASSOCIATED WITH PRINCIPLED NEGOTIATING

A mutually beneficial agreement Less stress Quicker and more productive discussions Better performance on the part of both parties

PROBLEMS WITH BOTH TRADITIONAL METHODS OF NEGOTIATING

They both assume the end result of a negotiation is an agreement On-going relationships are not intentionally developed or managed Follow-through is not managed Neither method is based on an operational model that truly depicts the overall negotiation process

DEVELOPING A BETTER AND MORE COMPLETE METHOD OF NEGOTIATING

Back to square onethe roots of negotiation
The Latin root word for negotiation is OTIO The Latin word meaning the opposite of otio is: ___________

Conclusion: Negotiation is first and foremost a ______ process

WIN-WIN NEGOTIATING
Definition: A method of conducting business where both parties accomplish their respective interests through the pursuit of common interests

ASSUMPTIONS OF WINWIN NEGOTIATING

An expandable pie A high level of trust

HOW WIN-WIN WORKS

Trust occurs Information gets shared The pie expands(on its own) Win-Win happens(its a result of the trust being in place)

P
Plans

M
Maintenance

WIN WIN

R
Relationships

A
Agreements

MODULE TWO
STEPS IN THE WIN-WIN NEGOTIATION PROCESS

STEP 1: ESTABLISH A WINWIN PLAN

Identify those people who stand between you and success or failure Determine what you want from them Determine what they want from you
Wants Needs

Within this context ask yourself, what can I do for these other people that will motivate them to do what I want done in return?

STEP 2: DEVELOP WINWIN RELATIONSHIPS

Plan activities which allow relationships to develop Cultivate your relationships Dont get down to business to quickly

SOCIALIZING

LIKING

BONDING

TRUSTING

REFERENCES

The relationship development process

FORM WIN-WIN AGREEMENTS

Verify the other partys wants and needs Implement your Win-Win plan KEY: Talk to them about what they want and show them how to get it Engage in mutual problem solving Finalize the agreement

STEP 4: PERFORM WINWIN MAINTENANCE

Maintain your agreements Maintain your relationships

Maintain your plan

MODULE THREE
PUTTING THE WIN-WIN NEGOTIATION PROCESS TO WORK

WHY IS IT SO IMPORTANT FOR PEOPLE TO FEEL LIKE WINNERS?

Its a fundamental aspect of human behavior People have an insatiable need to enhance their self-image People are very willing to go the extra mile if they see it as enhancing their self-image High performance results when you allow people to feel like winners in exchange for their going the extra for you

USING THE PRAM MODEL AS A DIAGNOSTIC TOOL

Identify the true cause of the problem Plan what needs to be done to solve the problem Put your plan into action Common negotiation problem situations:
Cold calls Objections Dissatisfied or irate customers or employees

P
Plans

M
Maintenance

WIN WIN

R
Relationships

A
Agreements

KEYS TO MAKING THE WIN-WIN NEGOTIATION PROCESS WORK

Balance Integrity Patience