Negotiation Strategies and Tactics

6.7_2

Evolution of Negotiation “A Plan for Success”

Give and Take Dr. Chester Karrass

Getting to Yes Fisher and Ury

Difficult Conversations Stone, Patton and Heen

6.7_3

Give and Take“Power Tactics”

Guidelines

Original Negotiation Encyclopedia

Power Assessment Negotiation Traits Planning Negotiation Modes Buyer/Seller Satisfaction Tactics and Countermeasures Aspiration Level Concessions

Messages

Understand Your Sources of Power

Planning Pays Off Profit is a Gain in Satisfaction Aim Higher - You Come Out

Better Always Make Assumptions,

but . . . Change the Time and Shape

of the Money

6.7_4

Getting to Yes“Joint Problem Solving”

Guidelines

Focus on Common Interests, not Differing Positions

Invent Options for Mutual Gain

Use Power of Independent Standards

Always Develop your BATNA Separate the People from the

Problems

Messages

Negotiation is Like Playing Frisbee

Convert Age of Me to Era of We Key is Mutually Acceptable

Conflict Resolution Try Side-by-Side Problem

Solving There is Always a Better Deal for

Both Parties Learn How to be a Fly on the

Wall

6.7_5

Getting to Yes“Change the Game”

Soft Hard PrinciplesParticipants are friends Participants are adversaries Participants are problem-solvers

The goal is agreement The goal is victory The goal is a wise outcome reached efficientlyand amicably

Make concessions to cultivate Demand concessions as a condition ofthe relationship

SEPARATE THE PEOPLE FROM THE PROBLEM

Be soft on the people and the problem Be hard on the problem and the people Be soft on the people, hard on the problemTrust others Distrust others Proceed independent of trust

Change position easily Dig into your position FOCUS ON INTERESTS, NOT PROBLEMS

Make offers Make threats Explore interest

Disclose your bottom line Mislead as to your bottom line Avoid having a bottom line

Accept one-sided losses to reachagreements

Demand one-sided gains as the price ofagreement

INVENT OPTIONS FOR MUTUAL GAIN

Search for the single answer: the oneTHEY will accept

Search for the single answer: the oneYOU will accept

Develop multiple options to choose from;decide later

Insist on agreement Insist on your position INSIST ON USING OBJECTIVE CRITERIA

Try to avoid a contest of will Try to win a contest of will Try to reach a result based on standardsindependent of will.

Yield to pressure Apply pressure Reason and be open to reason; yield toprinciple, not pressure

Problem SolutionPositional Bargaining: Which Game Should You Play? Change the Game-Negotiate on the Merits

6.7_6

Difficult Conversations“Create a Learning Conversation”

Guidelines

Sort Out Three ConversationsThe “What Happened” ConversationThe “Feelings” ConversationThe “Identity” Conversation

Shift to a Learning Stance, a Learning Conversation

Sincere Listening Works (Help Me Understand) Open with Self Confident

Expression Begin with the Third Story

(Your Story, Other Person’s Story, and the Invisible Third Story)

Messages

Explore Each Other’s Stories Learn to be Curious Abandon Blame Map the Contribution System Feelings Matter Acknowledge Feelings Ground Your Identity . . .

Ask Yourself What’s at Stake Manage Your Internal Voice Join Together as partners, Sort

Out the Situation Together

6.7_7

Difficult Conversations“How to Discuss What Matters Most”

A Battle of Messages

Assumption: I know all I need to know to understand what happened

Goal: Persuade them I’m right.

Assumption: I know what they intended.

Goal: Let them know what they did was wrong.

Assumption: It’s all their fault. (Or it’s all my fault.)

Goal: Get them to admit blame and take responsibility for making amends.

A Learning Conversation

Assumption: Each of us is bringing different information and perceptions to the table. There are likely to be important things that each of us doesn’t know.

Goal: Explore each other’s stories: how we understand the situation and why.

Assumption: I know what I intended, and the impact their actions had on me. I don’t and can’t know what’s in their head.

Goal: Share the impact on me, and find out what they were thinking. Also find out what impact I’m having on them.

Assumption: We have probably both contributed to this mess.

Goal: Understand the contribution system: how our actions interact to produce this result.

The “What Happened?” ConversationChallenge: The Situation is more complex than either person can see.

6.7_8

Difficult Conversations“How to Discuss What Matters Most”

A Battle of Messages

Assumption: Feelings are irrelevant and wouldn’t be helpful to share. (Or, my feelings are their fault and they need to hear about them.)

Goal: Avoid talking about feelings.

(Or, let’em have it!)

A Learning Conversation

Assumption: Feelings are at the heart of the situation. Feelings are usually complex. I may have to dig a bit to understand my feelings.

Goal: Address feelings (mine and their) without judgements or attributions. Acknowledge feelings before problem-solving.

The “Feelings” ConversationChallenge: The Situation is emotionally charged

6.7_9

Difficult Conversations“How to Discuss What Matters Most”

A Battle of Messages

Assumption: I’m competent or incompetent, good or bad, lovable or unlovable. There is no in-between.

Goal: Protect my all-or-nothing self-image

A Learning Conversation

Assumption: There may be a lot at stake psychologically for both of us. Each of us is complex, neither of us is perfect.

Goal: Understand the identity issues on the line for each of us. Build a more complex self-image to maintain my balance better.

The “Identity” ConversationChallenge: The Situation threatens our identity

6.7_10

Negotiation Lessons Learned

View negotiation as a long process Map objectives, strategies and tactics Create time to plan and prepare Select appropriate model and style Spend time in the details Learn to be self-confident Adopt challenges and expectations Listen and Learn Represent all interested parties at table Acquire a negotiation toolbox

(Tactics, Caucus, Relationships, etc.)

6.7_11

Evolution of Negotiation and Conflict Resolution

1970 to 1985

1985 to 2000

2000 to _____

What Tools do you What Tools do you Carry in Your Carry in Your Negotiation Toolbox?Negotiation Toolbox?

Power

Side by SideProblem Solving

A LearningConversation

6.7_12

What Tools Do You Carry in Your Negotiation Toolbox?

Fill Your Toolbox Be Tough, But Be Fair Karrass

Win/Lose Take It or Leave

It Self-Confidence Power Preparation Invent Options Strategy Common

Interests Fly on the Wall

Aim Higher - You Come Out Better

Body Language Planning Traits Listen Bogey P.O. # Options Find the Better

Deal Nibble

Make Love Research Brainstorming Ethics Satisfaction Strategic

Partners Caucus BATNA? Tactics Electronic

Commerce

Long-Term Agreements

Cost Drivers GTY Sharing Standards Make War Relationships Continuous

Improvement Separate

People/Issues

6.7_13

Key Negotiation Activities

Prepare yourself and your team

Know the other party Know the big picture Identify objectives Prioritize objection Create options Select fair standards Examine alternatives Select your strategy,

tactics and counter tactics

Develop a solid and approved team negotiation plan

Prepare the negotiation memorandum

Send the memorandum to the other party

Offer to write the contract Prepare the contract Prepare negotiation results

summary Obtain required reviews

and approvals Send the contract tot he

other party for signature Provide copies of the

contract to affected organizations

Document lessons learned Prepare for

implementation

Planning the Negotiation

Determine who has authority

Prepare the facility Use an agenda Introduce the team Set the right tone Exchange information Focus on objectives Use strategy, tactics and

counter tactics Make counter offers Document the

agreement or know when to walk away

Conducting the Negotiation

Documenting the Negotiation and Forming the Contract

6.7_14

Negotiation Best Practices

Understand that contract negotiation is a process, usually involving a team effort

Select and train highly skilled negotiators to lead the contract negotiation process

Know market and industry practices Prepare yourself and your team Know the other party Know the big picture Identify and prioritize objectives Create options --be flexible in your planning Examine alternatives Select your negotiation strategy, tactics and counter tactics Develop a solid and approved team negotiation plan Determine who has the authority to negotiate Prepare the negotiation facility at your location or at a neutral site Use an agenda during contract negotiation

BestPractices

6.7_15

Negotiation Best Practices

Set the right tone at the start of the negotiation Maintain your focus on your objectives Use interim summaries to keep on track Do not be too predictable in your tactics Document your agreement throughout the process Know when to walk away Offer to write the contract Prepare a negotiation results summary Obtain required reviews and approvals Provide copies of the contract to all affected parties Document negotiation lessons learned and best practices Prepare a transition plan for contract administration Understand that everything affects price Understand that Ts and Cs have cost, risk and value Tailor Ts and Cs to the deal, but understand the financial effects on price and

profitability Know what is negotiable and what is not

BestPractices