negotiation skills

NEGOTIATION ESSENTIALS
Life Skills for Business
BY: JESSICA NOTINI
Mediator, Facilitator, Trainer
1306 Summit Rd.
Lafayette, CA 94549
(925) 938 - 5011
notini@pacbell.net
notini(c)2008
1
Negotiation Defined
*
To confer or discuss with another with a view toward reaching
agreement where some interests may be shared and some may be
opposed
*
And interactive communication process that may be used whenever
one person wants something from another and seeks their
cooperation in obtaining it
*
A skill
*
Haggling or bargaining over limited resources
*
A useful way to resolve a problem or conflict
notini(c)2008
2

---

Critical Negotiation Theory
notini(c)2008
3
Collaborative vs. Adversarial
Negotiation
Collaborative/Interest-Based
Adversarial/Positional
*
Focus on mutual gain
*
Focus on maximizing own gain
*
Seek underlying needs
*
Stay at position level
*
Joint problem solvers
*
View other as "opponent"
*
Separate the people from "the
*
Attack people rather than "the
problem"
problem"
*
Share information
*
Guard/Withhold information
*
Build relationship
*
Discount relationship or willing
*
Invent multiple options
to sacrifice it in competition
*
Use objective criteria and
*
Drive for desired outcome
principled approach
*
More likely to use negative
leverage
notini(c)2008
4

---

Integrative vs. Distributive Bargaining
Creating and Claiming Value
Integrative Bargaining:
Distributive Bargaining:
* Seek Interests
* Establish Starting
* Create Value
Positions
* "Expand the Pie"
* Make Gradual
Concessions
* Look for joint gains
* "Cut the Pie"
notini(c)2008
5
POSITIONS & INTERESTS
* A Demand
* Lies Beneath the
Position
* A Strategy to Get
Needs Met
* The Human Need
* A "Want"
* The Driver or
Motivator
notini(c)2008
6

---

Categories of Interests/Needs
CONCRETE
PSYCHOLOGICAL
PROCEDURAL
SUBSTANTIVE
EMOTIONAL
Examples
Examples:
Examples:
*
Food
*
Respect
*
Participation
*
Shelter
*
Autonomy
*
Order
*
Enjoyment
*
Clothing
*
Love
*
Voice
*
Health
*
Understanding
*
Fairness/Equality
*
Growth/Challenge
notini(c)2008
7
Why seek the underlying interests?
*
Communication occurs at more meaningful, respectful and "human"
level
*
Promotes better understanding
*
Improves negotiation atmosphere. Tends to decrease hostility and
conflict
*
Often discover more possible solutions or more different strategies
to meet the underlying needs
*
Solutions are more likely to solve the "real" problem and be more
effective and durable
But NOTE: Revealing interests too quickly and without adequate trust
and reciprocity may be unwise as it can leave you vulnerable to
exploitation.
notini(c)2008
8

---

Leverage in Negotiation
* Positive ("the carrot"):
Something you can offer that they want. Better yet something they need.
Better yet, something they "must have."
* Negative ("the stick")
A course of action or consequence that will occur and/or which you can
cause to occur, in the absence of a negotiated agreement, that is
potentially detrimental to the other person
* Normative (standards, "objective" criteria)
Established guidelines that are relevant in the context (e.g. law, industry
norms, religious or family values, company policy)
Guidelines are more persuasive to the extent that they are broadly
accepted and viewed as relatively "objective."
Psychology: Human desire to appear consistent with norms
Note: Watch out for self-interested selection of "objective"
criteria
notini(c)2008
9
The Negotiation Process
notini(c)2008
10

---

Phases of a Negotiation
Preparation
Introductions & Entry: Setting the Stage
Information Gathering & Exploration
Option Generation of Possible Resolutions
Option Analysis and Bargaining
Agreement Finalization & Closure
notini(c)2008
11
The Setting
Preparation
Identify the Context
Ensure Appropriate:
Assess the nature &
importance of:
Time
Location
Relationships
Privacy/Publicity
Concrete Outcomes
Necessary People Included
Reputation
Necessary Information available
Hidden Decision-makers
Outside Influences
Know Yourself
Try to Understand Them
Identify your:
Identify or Imagine their:
Interests
Interests
High Expectations
High Expectations
Bottom Lines
Bottom Lines
Potential Strategies
Potential Strategies
Alternatives to Negotiation
Alternatives to Negotiation
Principled Criteria
Principled Criteria
Leverage
Leverage
Potential Solutions
Potential Solutions
notini(c)2008
12

---

Introductions & Entry
Set the Tone:
Agree on Process:
Rapport Building
Ground Rules
Positive start
Time available
Clear/Respectful Introductions
Format for discussions
"Housekeeping" (breaks etc.)
Set Forth Purpose(s) of Meeting/Negotiation:
Identify issues to discuss
Establish draft agenda (order for discussion)
notini(c)2008
13
Information Gathering & Exploration
(Understanding - Not Problem Solving)
General Goals:
Build rapport
Clarify interests
Develop and share data needed for problem-solving
Identify areas of agreement & disagreement
Keep negotiation on track, focused on issues
Set the stage for problem-solving
Seek to Understand Them:
Help Them to Understand You:
LISTEN!! (ACTIVELY)
Assert your interests respectfully
Show them you are listening
Explain your criteria & rationales
Probe for their interests
Share persuasive data
Ask interested/curious questions
Use leverage with care
Study their responses to initial ideas
notini(c)2008
14

---

Option Generation
The Spirit:
Creative
Brainstorming Method:
Free-flowing
Inclusive
Use board/flipchart
Team Attacking Problem
All ideas recorded
"Expand the Pie"
Ideas are not commitments
No criticism
No evaluation
Timing
After People Feel Heard/Understood
When Issues Clearly & Neutrally Defined
You Have Sufficient Information
notini(c)2008
15
Option Analysis
Generally Helpful Guidelines:
& Bargaining
Tackle one issue at a time
Stay task focused
Remember interests
Use objective criteria for evaluation
Maintain respectful environment
Patience, patience, patience
Creative Options
Distributive Bargaining:
Can be:
Give principled rationale for positions
Combined
Don't lose track of underlying interests
Modified
Leave room for concessions
Used in the alternative
Look for reciprocity
Tested
Compare proposals to your alternatives
Implemented in stages
Study ways to break impasse
notini(c)2008
16

---

Agreement Finalization and Closure
DON'T
Capture Agreements:
* Rush conclusion
* Often in writing
* Leave without
* With clarity, specificity and detail
clarifying agreements
(who, what, where, when, how)
* Apply heavy pressure
* Clear responsibilities
* Potential incentives for compliance
* Anticipate potential contingencies setbacks
* Identify procedure for settling disputes
Closure
* Provide for monitoring
* End on affirmative note
* Possible confidentiality or publicity
* Be gracious
* Commend participation
* Use ceremony & publicity
as appropriate
notini(c)2008
17
Essential Negotiation
& Influencing Skills
notini(c)2008
18

---

Communication & Influencing Skills
* Empathy/ Active
Listening
* Curious/Interested
Questions
* Effective Assertion
* Reframing
notini(c)2008
19
Empathy / Active Listening
Demonstrating Understanding
FIRST
CONTINUE
Listen using:
Until you believe Speaker
*
Eyes,
has been adequately and
*
Ears
accurately heard
INIVITE or WAIT
*
Attention (mental
FOR
and physical)
SECOND
*
Heart
Speaker response
Offer Your Understanding
to your paraphrase
to the Speaker in your own
* validation
words including:
* clarification
* Factual Content
* expansion
* Feelings Perceived
* correction
NOTE: Frequency, length and
focus (factual & emotional) of
notini(c)2008
20
paraphrasing vary according to the
perceived needs of the Speaker.

---