negotiations 101: basics and practical applications · negotiation and leadership: common...
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NEGOTIATIONS101:BASICSANDPRACTICALAPPLICATIONS
• MarickF.Masters• Director,Labor@Wayne
• ProfessorofBusinessAdministration• AdjunctProfessorofPoliticalScience
• WayneStateUniversity• 255ReutherLibrary• 313-577-5358
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LEARNINGOBJECTIVES
• Surveythefundamentalsofthenegotiatingprocess• Takeyournegotiatingprofile• Highlightcriticalskills• Buildawarenessofnegotiatingopportunitiesandchallenges• Demonstrateassertivenessandprofessionalism
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AGENDA
• Theubiquityofnegotiations/Aworkingdefinition• Knowthyself• Negotiationandleadership• Criticalskills• Thenegotiatingprocess• Howtoprepare• ROLEPLAY:NEGOTIATINGASALARYINCREASE• Alternativeapproachestonegotiating• Closing• Breakingdeadlocks
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14% 14% 14% 14% 14% 14% 14%
Youaresometimesintimatedbyanegotiatingcounterpartwithmoreauthorityandpower:A. StronglyAgreeB. AgreeC. SomewhatAgreeD. NeutralE. SomewhatDisagreeF. DisagreeG. StronglyDisagree
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14% 14% 14% 14% 14% 14% 14%
Youaresometimesintimidatedbyanaggressive/competitivenegotiatingcounterpart:A. StronglyAgreeB. AgreeC. SomewhatAgreeD. NeutralE. SomewhatDisagreeF. DisagreeG. StronglyDisagree
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14% 14% 14% 14% 14% 14% 14%
Yousometimesmakeconcessionstoappearniceandavoidanargument:A. StronglyAgreeB. AgreeC. SomewhatAgreeD. NeutralE. SomewhatDisagreeF. DisagreeG. StronglyDisagree
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14% 14% 14% 14% 14% 14% 14%
Youaresometimesreluctanttoaskforthingsforyourself(likemoremoney):A. StronglyAgreeB. AgreeC. SomewhatAgreeD. NeutralE. SomewhatDisagreeF. DisagreeG. StronglyDisagree
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THEUBIQUITYOFNEGOTIATIONS
• Thinkofthevarietyofdailysituationsinwhichyounegotiateorcouldnegotiateifattunedtotheopportunitiestonegotiate• WhatisNON-negotiable?• Negotiationssituationsvary:• Rangeofparties(friends/family;businesspartners;suppliers;customers)• Formality(conversational;transactional;summitry)• Salience(minimalstakes—highstakes)• Complexity(simple—intricate)
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AWORKINGDEFINITION
• Etymology:Notleisure• Salacuse:aprocessofcommunicationbywhichtwoormorepeopleseektoadvancetheirindividualinterestsbyagreeingonadesiredcourseofaction• Masters:adecision-makingprocessinwhichtwoormorepartiesseektoresolvedisagreements,makedeals,orchangebehaviors
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NEGOTIATINGCHALLENGES
• #1Createopportunitiestonegotiate• #2Itstartswith“No.”GetpastNo.• #3Don’ttakethefirstoffer;negotiateformore• #4Beassertivenotarrogant:whatisthedifference?• #5Beprofessional:appearance;attentiveness;language;sincerity;confidence
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KNOWTHYSELF
• Buildyourprofile• Knowhowyouareperceived• NegotiateinTHEIRworld• Thepyramidofaneffectivenegotiator
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THEPYRAMIDOFANEFFECTIVENEGOTIATOR
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BEHAVIORSSKILLS
COMPETENCIES
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NEGOTIATIONANDLEADERSHIP:COMMONDIMENSIONS
J.Salacuse.2017.RealLeadersNegotiate!
NEGOTIATION LEADERSHIP
Communications Communication
Interests Interests
Action Action
Process Process
Power Power
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CRITICALSKILLS
• Communications• Listening• Questioning
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COMMUNICATIONS
• Verbal:thewordsyouuse• Para-verbal:inflection,pace• Bodylanguage:facial,gestures,posture,dress,handshake,distance,eyecontact
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LISTENING
• Passive:hearwords• Active:hearwords,emotions,relationship;conveyunderstanding;observebodylanguageandpara-verbal;communicateinterest• Clearmindof“noise”• Focus• Followthe70/30rule:listen70%ofthetime
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QUESTIONING
• Askinterrogativequestions:how,what,why• Askandlisten• Recapandlisten• Use“I”not“You”word:I don’tunderstandratherthanyou don’tunderstand
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THENEGOTIATINGPROCESS
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PHASES DIMENSIONS ELEMENTS
Prospect Process Interests
Prepare Substance Options
Propose Context Alternatives
Bargain Timing Relationship
Close Commitment
Implement Communications
Re-negotiate Standards
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POWERINNEGOTIATIONS
• Widelymisperceived• Under- andover-estimated• Abilitytowalkaway• Availabilityofalternatives
• BESTALTERNATIVETOANEGOTITATEDAGREEMENT(BATNA)• Whatdoyoudoifthisnegotiationfails?• FailuretoagreeisNOTthesameafailuretonegotiate
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HOWTOPREPARE
• PlanningNOTplan• Prospect:buildalternatives• Determineinterestsandpositions• Setprices:asking,target,reservation(walkaway)• Knowtheotherside(TOS)• Prepareproposals• Thinkradially• Rehearseandreverse
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ROLEPLAY
NEGOTIATINGASALARYINCREASE
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PREPAREDNESS
• Intellectual:knowthesubjectmatter,TOS,context• Psychological:anticipatetheunexpected;focused• Emotional:balanced(ifyougetangry…youget….)• Physical:rested
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NEGOTIATINGSTYLES
• Dualconcernsmodel:outcomeandrelationshipbalance• Accommodating• Avoiding• Competing• Collaborating• Compromising
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TWOAPPROACHES:COLLABORATEv.COMPETE
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COLLABORATE COMPETE
Focus ininterests Focusonpositions
Seekmutualgains SeekadvantageatexpenseofTOS
Explore options Hardtactics
Opencommunications Playthings closetothevest
Reciprocate Dominate
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INTEREST-BASEDBARGAINING(IBB)
• FocusonproblemNOTpeople• FocusoninterestsNOTpositions• Exploreoptions• Applylegitimatestandardstoassessoptions• Developalternatives
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CLOSING
• Startwithacloseinmind• Paintapictureofwhatadealmightlooklike• Takeconfidencebuildingsteps• Buildmomentum• Recap• Leapaheadifthetimeisripe• Listen:give“considered”responses
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BREAKINGDEADLOCKS
• Takeabreak• Walkaway(temporarily)• Changevenues• Changepeople• Third-partyintervention
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APPLICATION:NEGOTIATINGA“JOB”
• Determinewhat’simportant• KnowTOS’slatitude• Beflexibleandreasonable• Askforwhatyoucanjustify• Justifythroughexternalstandards• InBusinessasInLife,YouDon’tGetWhatYouDeserve,YouGetWhatYouNegotiate• Negotiateintheirworld:whatcanYoudoforThem• “We”isapowerfulword
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TAKEAWAYS
• KnowThyself• Listen• BePrepared• PaintaPicture• ProspectAlternatives• AskConfidently• NegotiateinTheirWorld• BeProfessionalAtAllTimesandInAllVenues(DigitalandTelephonic)
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