Nothing but NegotiationNothing but Negotiation

Graham Botwright Roger Greenfield

Strategic Negotiation

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Negotiation is where...Negotiation is where...Negotiation is where...Negotiation is where...

Two parties resolve differences to reach agreement

© 2007, The Gap Partnership, All Rights Reserved© 2007, The Gap Partnership, All Rights Reserved

Commercial negotiation is where...

Commercial negotiation is where...

The buyer wants to buy

and the seller wants to sell

and the basis of the business

needs agreeing

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Sell

Persuade

Rationalise

Argument

Convince

Justify

Qualify

Explain

Enthuse

Ask

Negotiate

Question

State

Listen

Think

Wait

Control

Position

Consider & Weigh

Tell© 2007, The Gap Partnership, All Rights Reserved

The values of society

The values of society

The behaviours of negotiatorsThe behaviours of negotiators

CaringCaring

ConsiderateConsiderate

Co operativeCo operative

ConformingConforming

DependableDependable

FairFair

Generous Generous

Honest Honest

OpenOpen

RationalRational

ReliableReliable

TruthfulTruthful

UnselfishUnselfish

WillingWilling

ArrogantArrogant

ClosedClosed

DishonestDishonest

EmotionalEmotional

InconsiderateInconsiderate

IndifferentIndifferent

IrrationalIrrational

MeanMean

RejectingRejecting

SelfishSelfish

UnfairUnfair

UnreasonableUnreasonable

UnreliableUnreliable

UntruthfulUntruthful© 2007, The Gap Partnership, All Rights Reserved

‘Any man who tries to be good all the time is bound to come to ruin among the great

number who are not good. Hence a prince who wants to keep his authority must learn

how not to be good, and use that knowledge, or refrain from using it, as

necessity requires.’Niccolo Machiavelli. 1469-1527Niccolo Machiavelli. 1469-1527

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The balance of powerThe balance of power The level of dependency - BATNAs The power of the brand History / precedents Market conditions & competitor activity The nature of the product or service Each party’s time pressures Each party’s circumstances Personal relationships

© 2007, The Gap Partnership, All Rights Reserved

Negotiation Power LawsNegotiation Power Laws

• The Law of Reciprocity

• The Law of Scarcity

• The Law of Authority

• The Law of Legitimacy

• The Law of Relativity

• The Law of Difference

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Information is power

Questioning and Listening

GAINS POWER LOSES POWER

Talking and Arguing

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Are you ‘in charge’?Are you ‘in charge’?

1. Do others view you as someone who turns up late?2. Do others view you as disorganised?3. Do others see your lack of planning?4. Do others see you as talkative?5. Do others view you as passive?6. Do others view you as aggressive?7. Do others view you as wanting to be liked?8. Do others see you missing deadlines?9. Do others see you as apologetic and excusing?10. Do others see you as emotional?

0: Strongly disagree 0: Strongly disagree 1: No strong view 1: No strong view 2: Strongly agree 2: Strongly agree

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121

3

6

9

11

10

8

7 5

4

2

SupplierBartering

Haggling /Bidding

Hard Bargaining

DealingConcession Trading

Win Win

PartnershipJoint Problem Solving

RelationshipBuilding

Negotiation contextNegotiation context• Price is the most important variable

• It can be tough and arrogant

• There is little dependency on each other

• There is no long term contract

• The deal is win/lose or competitive

• Price is less important than finding creative solutions to add value

• There is a warm relationship

• Both parties are more dependent

• Trust is important

• Both parties benefit from the deal

• Price is still important

• Now there are other variables or ‘levers’ discussed in the deal

• Both parties need to share information

• Negotiations are about getting things in return for concessions

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TrustTrust

‘The act of sharing information,

demonstrating flexibility,

using the law of reciprocity’

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CLIMATE

Positive/affirmative language

Park Issuesrather than

reject

Provide options-How

ManageInformation

sharingBuild on their

ideas

Co-operative

Competitive

Secretive -no information

sharing

Reject issues

Gestures, Inappropriate

NVC

Inflexible

No , Can’tWon’t !

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Cost

Inreturn Cost

Inreturn

InReturn

+

Cost

+

USUSTHEMTHEM

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Power and Relationships • People rarely exploit their power fully

• Power is obtained from many sources

• Power can be exploited competitively, collaboratively or creatively

• A ‘relationship’ is not a ‘soft’ and ‘fair’ approach

• A relationship takes years to develop and seconds to shatter

© 2007, The Gap Partnership, All Rights Reserved

8 Things to consider8 Things to consider

• Negotiators do not sell or rely on logic• Negotiators offer satisfaction to the other party• Negotiators are not their feelings• Negotiators assess and exercise power • Negotiators are in charge• Negotiators adapt behaviour to circumstances• Negotiators are able to build trust• Negotiators seek out low-cost / high-value trades

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Nothing but NegotiationNothing but Negotiation

‘‘You only have power over people You only have power over people so long as you don’t take so long as you don’t take everything away from them. everything away from them. When you’ve robbed a man of When you’ve robbed a man of everything, he’s no longer in your everything, he’s no longer in your power – he’s free againpower – he’s free again’’

A. SolzhenitsynA. Solzhenitsyn

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