overview of the workout timecontentmethod / person 10 minuteswelcome & objectives trainer led 15...
TRANSCRIPT
Overview of the workout
Time Content Method / Person
10 minutes Welcome & objectives Trainer led
15 minutesWarm Up - negotiation activity
Group activity
15 minutes What is negotiation Trainer led
20 minutes Preparing to negotiate Trainer led Group activity
15 minutes Opening the negotiation Trainer led Group activity
30 minutes Negotiating the deal Trainer led
10 minutes Break
5 minutes Finalising the deal Trainer led
60 minutes Role Plays Group activity
10 minutes Cool Down Period Trainer led
We negotiate every day. How good are you at it?
So what is negotiation?
Positive and Productive Conflict Resolution
Some negotiation wisdom
Sun TzuGhandi‘An eye for an eye and we all go blind’
‘The best general is the one who never
fights’
The negotiating table
The negotiation table - ideal parameters
Your Ideal
(what you want)Their Ideal
(what they want)
The negotiation table – worst case parameters
Your Ideal
(what you want)Your limit
The negotiation table – worst case parameters (2)
Your Ideal
(what you want)Your limit Their Ideal
(what they want)
Their limit
Scope for Bargaining
When Not to Negotiate
‘BATNA’
“If you can do better through negotiating, negotiate. If you can’t, don’t’.” Steven P. Cohen
Your Ideal
(what you want)Your limit Their Ideal
(what they want)
Their limit
Best Alternative To a Negotiated Agreement
Consider when you’ll walk away
• Identify your BATNA
• Research your client’s BATNA
• Do signal to the client that you have valuable alternative options
• Look to improve your BATNA constantly
• Don’t reveal your BATNA
• Engage in bidding wars
• Don’t lie about your BATNA
What to do What not to do
Your BATNA tells you when to walk; not when to sign
A model for negotiation
“In preparing for a battle I have always found that plans are useless but planning is indispensable.”
Preparation is key to most things
Dwight D. Eisenhower 1890-1969
Prepare Research The People
Objectives & Game
Plan
Anticipate Objections
Give adequate time to prepare
Negotiation10%
Preparation90%
Preparation is the most important element
Prepare Research People
Objectives & Game
Plan
Anticipate Objections
Information – facts and figures
History / Track Record
The market / competitors
Preparation – the people
• Who is involved: other party? Level of authority - the same?
Who else is involved?
Do we know any ‘insiders’
• Who is involved: your team Who do you need to involve?
Sufficient level of authority?
• What are their drivers? Business drivers
Emotional / political drivers
Prepare Research People
Objectives & Game
Plan
Anticipate Objections
Setting objectives before every negotiation is critical
Prepare Research People
Objectives & Game
Plan
Anticipate Objections
Objectives - write them down to be clear
VARIABLE BATNA TARGET STRETCH
Price Asking price 5% off 10% off
Extras(carry case)
Included Included included
Software Self install Self install Pre installed
Activity• Think of a negotiation you are currently involved with. List all the
variables, then write down your BATNA, target and stretch goals
• You have 5 minutes – be prepared to share with the group
Game Plan - who has the power?
• Where is the balance of power?
• How much do they need us?
• How much do we need them?
• What is the least I think they’ll accept / pay?
• What are their objectives and how are they rewarded?
• What is their best alternative? What is our best alternative?
• Who has the greater urgency / time pressure?
AdvantageYou
AdvantageThemCo-operate
Prepare Research People
Objectives & Game
Plan
Anticipate Objections
Game Plan – planning the perfect negotiation
How should we open the negotiation?
What questions do we need to ask?
What information is missing?
Prepare Research People
Objectives & Game
Plan
Anticipate Objections
Be clear on your game plan...and stick to it
Anticipate objections
Prepare Research People
Objectives & Game
Plan
Anticipate Objections
Put yourself in their shoes: What would you be objecting to?
Plan a live negotiation
1. Think of a deal you are negotiating / will be
negotiating
2. Go through the 4 step process for effective
preparation - research; people; game plan &
objectives; anticipate objections
3. Make notes
4. You have 10 minutes
5. Everyone will present their preparation to the
group
6. Feedback and discussion will follow
Opening the negotiation
Focus on building rapport
OpenBuild
Rapport & Trust
Open the Negotiation
Small talk is actually Big talk
Use your voice volume, tone, speed
Control your body language
Keep eye contact Smile!!
Body language – how to read it
Body Language What They /You Could Mean
The surprised gape ‘You must be kidding’
Preparations to leave (closing notebook, reaching for bag/briefcase, putting on jacket)
‘I’m going to walk away if you don’t give me a concession’
Inclining body awayDownplaying your importance/trying to annoy you
Folding armsClosing down (or ‘I’m just comfortable this way’)
Looking down or away Was that a lie?
Looking at each otherYou’ve hit an important areaLooking for the leader to make a move/concession
Turned up corner of mouth/avoiding eye contact/deep breath/shrug of shoulders
‘You are pushing me too far’
Body Language No-No’s
The finger jab - aggressive
Folding arms – lack of interest
Slouching - unresponsive
Flitting eyes - nervousness
Fidgety hands - nervousness
Weak or dry voice - nervousness
OpenBuild
Rapport & Trust
Open the Negotiation
Open the negotiation with a Shared/Guiding Vision
• Sets the tone for the negotiation
• Diffuses tension
• Disarms aggressors
• Gives you a ‘haven’ to return to when things get tough
• Keeps difficult people in check
• Helps close the deal
Take control and open the negotiation
• Often, opening the negotiation can get you a better outcome
• It is good to be honest and lay your cards on the table
• The 1st offer is the end outcome over 85% of the time!
• Write down your opening offer
• You can refer back to it
• You can use it as your ‘anchor’ in the negotiation process• Might show how flexible you’ve been • Can help you win more important battles
OpenBuild
Rapport & Trust
Open the Negotiation
Negotiating the deal
Effective negotiators question and listen more
Negotiating Behaviour Skilled NegotiatorsAverage
Negotiators
Effective Questions:Questions as % of all negotiating behaviour
21.3% 9.6%
Effective Listening:Testing for understanding
9.7% 4.1%
Summarising: 7.5% 4.2%
Negotiate Question Propose Bargain Manage Objections
Effective questions help ‘unpack their suitcase’
=
Questioning techniques
• Plan your questions in advance• In the Game Plan
• It keeps the questions sequential and related
• Keep it conversational (avoid inquisition)
• Ask with a purpose – you only have so many questions
• Use their frame of reference – keep it relevant to them
• Keep them jargon free
• Ask general questions, then specific questions on a topic
• Relate to any cultural differences
When proposing...
• Propose your offer
• Explain why it is a good offer
• Summarise
• Invite a response
Negotiate Question Propose Bargain Manage Objections
When receiving a proposal, never interrupt
• Question the offer
• Clarify the points
• Summarise where you stand
Negotiate Question Propose Bargain Manage Objections
In case you have to bargain, be prepared
• What concessions might you have to make to get what you want?
• Give in areas that are high value to them and low value to you
• Don’t concede if you think it will be hard to sell internally / to your boss
Negotiate Question Propose Bargain Manage Objections
Don’t bargain unless you need to
• Only bargain if your proposal is not accepted
• The fundamental rule is to trade If you give something; get
something in return.... “if we...then you”
You should always have an answer to the question - What did you get in return?
Negotiate Question Propose Bargain Manage Objections
Dealing with hard bargainers
• Ask questions
• Articulate their perceptions & interests – find joint ones
• Suggest joint problems exist
• Be reasonable but firm
• Point out bad behaviour
• Develop alternatives – find new options
• Give in
• Get emotional
• Let your ego get in the way
What To Do What Not To Do
Negotiate Question Propose Bargain Manage Objections
Close the deal
• Send a courtesy email within 24 hours
• Work with internal teams to finalise the contract and circulate to the parties involved
• Take ownership of the contract / document - whoever controls the document often controls the discussion
• Do not let the other party write the contract or issue notes from the meeting (particularly on crucial points)
Finalise Close the Deal
Build Relationship
Look to build the relationship
Finalise Close the Deal
Build Relationship
Track & measure the success of the deal
Celebrate successes along the way
Look for new opportunities together
Time to practice – role plays
Any questions?