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Glenn Faulkner

Influence NegotiationBuilding Stronger Relationships & TrustBuilding Stronger Relationships & Trustsm

703 204 1669gfaulkner@WatershedAssociates.com

presented to

NIRI Richmond Chapter

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YellowGreenBlueRed

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YellowGreenBlueRed

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Think big, ask for what you want

GoalMDO B/LLAA

BATNA

Defining Your Negotiating Opportunity

MDO – Most Desired OutcomeLAA – Least Acceptable AgreementB/L – Bottom LineBATNA - Best Alternative to a Negotiated Agreement

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Are the goals aligned?

Think big, ask for what you want

MDO LAAYours

LAA MDOTheirs

Mutual Motivation

And Determine What They Need

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Never say No…or Yes

NO!

NO!

NO!

The Negotiated Yes…"Yes, if" Allows you to say yes Validates your opening offer More engaging More likely to generate creativity

YES! Invalidates last offer Violates trust Cuts off creativity Removes give-and-take

NO! Ends discussions Is face losing

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Give value, but don’t rush

Progressively smaller concessions Allow counterpart a sense of satisfaction

Make smaller concessions

And don’t forget to summarize early and often

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A 300

B 300

C 300

D 300

E 300

Pattern MDO 1 2 3 Goal

LAA = 150

300 300 300 200

275 250 225 200

295 285 265 200

200 200 200 200

250 220 205 200

Make smaller concessions

Concession Patterns

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The Power (and risk) of time

Always be patient

A quick solution may be a bad solution Patience softens expectations and encourages flexibility Patience allows them time to accept tough choices Beware, their patience may compel you to make unnecessary

concessions Deadlines force concessions

– Establish deadlines for them– Probe any deadline they set

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Don’t negotiate too early in the process

MDO LAA

Yours

LAA MDOTheirs

No perceived value in agreeing

Always be patient

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Always think creatively

A low cost to You but a high value to them …or a low cost to them, high value to you Interests and needs, not positions or demands Put yourself in their shoes Avoid zero-sum exchange vs. value creation Will be different from situation to situation

Creative concessions are “painless”

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Always think creatively

Percentage of highly creative people at the age of 5

Percentage of highly creative people at the age of 10

Percentage of highly creative people at the age of 22, 32, and 42

When did we stop being creative?

90%

10%

2%

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What does the counter party want? Peer organizations Past negotiations Legitimacy-

Industry StandardsThird Party MeasurementsNewspapers and magazines

Sources of Information

Prepare, prepare, prepare

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The most powerful thing you can do is make offers and proposals.

You cannot negotiate an argument You can negotiate proposals Proposals keep the other side engaged An offer or proposal compels a response:

Accept Counteroffer Probe

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1. “If we can find a solution on this one item, can we get a final agreement today?”

2. “What if we…” (the hypothetical)

3. “In a perfect world, what would this look like to you?”

4. Maybe you need only to acknowledge the objection

You find out by probing:

When THEY say “No”: Handling Objections

Never say No…or Yes

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1. Need more information on the other side?

2. Need more information on Your solution, position, product, organization, market, etc.?

3. Need more information on stakeholders?

4. Are you talking to the right person/people?

5. Maybe this is not a good agreement?

6. Should you execute your BATNA?

How well did you prepare?

When THEY say “No”: Handling Objections

Never say No…or Yes

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So Remember

Good Negotiating !Glenn Faulkner

Think big and ask for what you want Be patient do not fill the silence Be creative, look for low cost high value Preparation and legitimacy advance your position Use linkage through the negotiators yes