7028-AS2-ONE
Sa1_Jyyy
Topic4.1Negotiations.pptx
Breakthrough Leadership Skills MN7028
Session 10: Negotiation: Priorities, Processes, Strategies
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Learning Outcomes
Define Negotiation
Characteristics of successful negotiation
The importance of questioning, probing and listening
Needs, wants and influencing
The importance of a continued listening actively
Getting to Yes / BATNA
Explore related processes
Exercise on Interim Recruitment Negotiations
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Definitions of negotiation
‘An extended communication created in dialogue by two sides’ (Mead 2005)
‘A process of discussion between 2 or more parties with the aim of achieving a satisfactory agreement’ (Tayeb 2003)
‘Requires parties with opposing interests to get together to make a decision’ (Elahee and Brooks 2004)
frances tomlinson
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Negotiator skills
Research and Planning skills
Ability to think clearly under stress
Practical intelligence
Verbal ability
Product knowledge
Personal integrity
Ability to perceive and exploit power
Understand the issue
Negotiator skills
Is prepared
Recognises key issues quickly
Seeks the win-win
Has stamina
Knows when (if) to compromise
Tolerates conflict and stress
Listens well
Has sensitivity to other‘s needs
Shows patience
In the room
Confident (tone, handshake, eye contact)
First impressions count (appearance)
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The £150 Game
“I will give a prize of £150 to each of the first two people who can persuade another MBA student to get up, run around Holloway campus, return to the class and stand behind his or her chair.”
What would you do?
You have to move quickly
What is your instinct?
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The £150 Game
Option 1: don’t play
This is the approach of the Avoider
• Prefers not to get involved at all
• Dislike stress
• Avoids situations with “winners” and “losers”
• Can be (surprisingly) very difficult to negotiate against
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The £150 Game
Option 2: Run and stand behind the chair of the person opposite you, trusting that she will give you a fair share of the cash
This is the approach of the Accommodator
Resolves conflict by solving the other party’s problem
If the counterpart is similar, he shares the wealth
But if the counterpart has another approach, the Accommodator may end up with nothing
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The £150 Game
Option 3: Shout to the person sitting across from you that he should run over and get behind your chair and that you’ll share the money with him if he does
This is the approach of the Competitor
• First instinct is to see “zero sum” allocations
• Likes to “win”
• May even lie if he’s asked to get up and move, claiming he has a sprained ankle
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The £150 Game
Option 4: If the person across from you is offering you £75 to stand behind her chair, take the deal (even if you made the same offer to her)
This is the approach of the Compromiser
• Favours deals that give something to each party
• Interested in maintaining relationships
• Tends to “split the difference”
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The £150 Game
Option 5: Suggest to the person opposite you that you BOTH get up and stand behind each other’s chair, so you BOTH get £150
This is the approach of the Collaborator
• Tries to find a way for both parties to get the best outcome
• Willing to be creative and brainstorm
• May not be successful against a strong competitor
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The £150 Game: Conclusions?
• There is no one “right” way to negotiate
•We must learn to be conscious of our own style
• Five basic types of negotiators
• Competing
• Accommodating
• Avoiding
• Collaborating
• Compromising
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Negotiation styles
•Most people use a combination of these styles
•Be aware of your “default” style
• Recognising it will allow you to move away from knee-jerk responses
•Be aware of your counterpart’s style
•Be tactical about altering style as appropriate
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Communication styles
How We Communicate Could Determine How Persuasive We Are
• Verbal (the words)
• Vocal (the tone)
• Silence
• Facial (the expressions)
• Non-verbal ( the body movements)
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Cultural Patterns/styles
How We Perceive the word “negotiation” could dictate your approach
Japan, China: negotiations are part of relationship building process (there is no getting to yes in the room)
Spain: it’s the deal that matters
Germany: formal
Mexico/USA: informal
Netherlands/Israel: direct
May show video on cross cultural negotiation
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BATNA
“Best Alternative To a Negotiated Agreement.”
It is defined as the most advantageous alternative that a negotiating party can take if negotiations fail and they do not secure the desired agreement
The BATNA is a party’s best alternative is if negotiations are unsuccessful.
It helps clarify alternative agreements proposed by the other party that you should reject.
It underpins the art of letting them have your way.
May show video on cross cultural negotiation
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BATNA
So, generate possible BATNAs:
• Invent a list of actions you might take if no agreement is reached
• Improve some of the better ideas and convert them into options
• Select your Best Alternative To a Negotiated Agreement
• Then, consider what the other side’s BATNA might be…
May show video on cross cultural negotiation
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Key Negotiation Strategies
Time issues and Deadline strategies
• Conceal your real deadline
• Declare an earlier deadline
• Find the other side’s deadline
Information
• Considered the heart of negotiations - shapes strategy, reality • Preparation is key - side with more info. has edge
• BATNA
Power
• Is it about power, ego, leverage • Balance between parties is a key factor
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Key Negotiation Strategies
Getting to Yes, key elements:
Focus on interests, not positions:
• Interests = needs, desires, concerns, fears that lead to “why”
• Positions = specific demand
Separate people from positions
• People negotiate – are affected by egos, feelings, anger
• “Step into their shoes” to discover their reasoning
Focus on objective criteria
• Facts, principles, standards can be used to frame an offer Develop mutual-gains options
A settlement must be better than no agreement for both parties
• Propose options with gains for both parties
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Interests, not positions
The basic problem in a negotiation lies not in conflicting positions, but in the conflict between each side’s needs, desires, concerns and fears. So, identify the Interests of the other side:
Ask why they take a particular position [to understand]
Isolate the other side’s choices [how do you want to affect them?]
Analyse the consequences of accepting or rejecting your request
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Options for mutual gain
Is this distributive (win lose/zero sum) or integrative(win win) negotiation? How can you expand the pie? How can you have your cake and eat it? Invent solutions which are advantageous to both sides.
But beware of :
• Premature judgment
• Searching for a single answer
• The assumption of a fixed pie
• Believing that ‘solving their problem is their problem’
Story about cooks arguing over the orange. Do we chop it in half or does one of use want the peel.
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Objective criteria
Frame each issue as a search for objective criteria
What objective standard might be relevant?
Be open to reasoned persuasion on their merits
Never yield to pressure, only to principle
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True or false?
“In Business As in Life, You Don't Get What You Deserve, You Get What You Negotiate” (Chester Karrass, 1996)
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