THE ART OF NEGOTIATION GARY TUCKER | AUGUST 2016

A LITTLE BIT ABOUT ME

TODAY’S PRESENTATION

4

What we will cover:

Basics of win-win negotiation and types negotiations we’re likely to encounter or want to encounter

Tips and techniques for better negotiation results

How to manage relationships after the negotiation is complete

5

How we’ll cover it

The Basics – Definitions – Terminology – Other fun things

Before a Negotiation – Setting the Stage for Success

During a Negotiation – The Performance

After a Negotiation – Managing the Future

BASICS FOR BEGINNERS

7

What negotiation is…and isn’t?Interactions that deal with money – This is too narrow a view and

not always an accurate reflection of the true points of negotiation

Interactions between people, companies or otherwise outlining the nature of the relationship

Can include pricing, profit-sharing, partnerships, plans for communication, emergency or crisis planning

8

What makes a negotiation successful?

Success in a negotiation isbest defined as: – Achieving greater than

expected outcomes based upon leverage

9

Terms to know

Leverage ⎼ Real vs. perceived

Valuation

Incentive Management ⎼ The single most important thing

to having a happy life

BEFORE A NEGOTIATION: SETTING THE STAGE FOR SUCCESS

11

First things first. Know yourself.

Leverage? Valuation?

What are the spending thresholds? What can charge and still allow for profitability?

12

First things first. Know yourself

How important is this partnership? What is the current situation? What market conditions surround this negotiation? And finally….

Do I need a lawyer, accountantor other expert to help me first?

13

Know the other partyCollect everything available about the organization and individual you will be negotiating with

Great places to look for this information: – Google, websites, social media esp. Facebook – Tax records – Other clients and partnering organizations – Vendini sales records

14

I know myself. I know the other party. What now? Develop a BATNA.

Best

Alternative

To

Negotiated

Agreement

15

BATNA is done. When do we negotiate?

The location can completely change the outcome: – Try to meet at a neutral site

• This helps prevent subliminal reminders of other costs or responsibilities

– Think about seating arrangement – If a negotiation will be contentious or you

cannot control your own facial expressions or body language try to sit side by side

16

Who should be at the table?

In general, it is best to have as few people as possible in a negotiation. – A Lead Negotiator

• This person is the only on who should speakunless called upon by the lead

– Decision Markers • Don’t show up without a person who can

give the final yes or no

– Secondary Parties • Only If they bring a skill you don’t have

17

Who should NEVER be at the table?

Nervous talkers

Those without the ability to focus for 2+ hours

Those who cannot control their emotions

Overly “perky” people

Those who do not listen when told not to talk

Outside organizations or media

18

You just described my boss…Managing upward – Get permission to be the decision

maker – Ask you boss not to talk unless you

ask him/her to

Be honest about the issues that concern you

Work around their liabilities – Game out scenarios that

could come up

19

Pro Tip: Squares SheetSpace for notes that will help you organize your thoughts and approach

Each square is a facet to be negotiated

Always have a minimum of 4 squares – 12 to 16 is best

DURING THE NEGOTIATION

21

Pro Tip: Strategic Thinking vs. Strategic Planning

Strategic planning is important but it is more important to use “strategic thinking.” – In other words, applying this same type of logic to daily processes.

Examples: – Reframing a problem – Future earning versus immediate gains – Reaching long term goals – Awareness of the external environment.

22

The Ultimate Goal: Determine their BATNA

Determine the other party’s bottom line

First 20 minutes is the best time to fill in what you don’t know

Ask don’t tell. Keep them talking about themselves and their company.

23

Opening negotiations… start with an easy square

Start with an easy square, where you are most flexible, say length of term

If possible, make a concession to their needs and you can use it to get them to bend in the future.

Easy agreement in the beginning will lead to easier win-win agreements later

NEVER START WITH PRICE!!!!

24

Work your way through the squares

Once you feel as though you are working well together, bring up price, or the most challenging part of the negotiation

Make sure you have at least two more squares when you do this. – If you find yourself at an impasse, move to another square and come

back to this

25

I'm all out of squares and we are stuck

Getting a Negotiation moving again: – Offer a creative alternative – Ask more questions. Try to find a place

where you might be able to meet – Change the scope of the offer, what

other squares can be tweaked? – Let the room breathe – Avoid Heading Down the “Rabbit Hole”

26

One that stretches on for much longer period than anticipated or desired goalis to negotiate at a minute level – Eliminate emotion from the meeting – Each concession obtained will take a great deal

of convincing in hopes the other party will feel so committed to coming to an agreement that they go beyond their BATNA

– Should only happen when both parties are truly out of options. If this is not true, walk away Rabbit Hole

Negotiations

27

Pro Tip: How tocomport yourself

Always be professional, courteous, kind, and empathetic

Most of all be yourself and be a good listener

Practice makes perfect

28

Pro Tip: Feeling a Room The best negotiators getto a point where they can simultaneously: – Be a part of the conversation – Be an observer of the

conversation, the room and surroundings

This comes with LOTS of practice

29

Pro Tip: Practice these things

Video or audio record your negotiations and then go back and do “tape study”

Observe other people negotiating

Remember small things around you

30

Negotiation is going well… Pump the brakes

Be careful. There comes a point where you need to pump the brakes. – Make sure they make a fair profit

or they are in position to grow with you.

– Think long term. Don’t get them fired for making a terrible deal.

31

When to walk away from a negotiation

There are some circumstances where it is best to walk away from a deal, even if it is within your BATNA. – Uncomfortable with person or company – trust your gut – Being disrespected or belittled – Other party makes remark insulting other clients – Interruption or lack of attentions – Agreed Impasse or need of more information – Being taken “ Down the Rabbit Hole”

32

Debunking "Wives Tales"

Matching or Mirroring

“ The first one to talk loses”

Poker faces

Born Negotiators

You must tell lies

There is always a winner

AFTER THE NEGOTIATION

34

Immediate aftermath

Put it in writing

Follow up with everything you promised

Send a Thank You notes

35

Managing Partnerships

A Customer Service frame of mind

Keep in touch

Keep everyone happy – This includes yourself

36

Learning from each negotiation

Failure mode efficiency analysis

37

Questions?

38

Resources

“Competing for the Future” by Gary Hamel & CK Prahalad

“Bargaining for Advantage” by G. Richard Shell

THANKS!GARY TUCKER

THE ART OF NEGOTIATION