2. Negotiation My father said: "You must never try to make all the money that's in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won't have many deals.” J. Paul Getty
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4. Negotiation – What is it? ‘ The process by which we search for the terms to obtain what we want from somebody who wants something from us’ Gavin Kennedy Confer with others to reach a compromise or agreement. Concise Oxford Dictionary To negotiate is to trade something we have for something we want. Anon ‘ Negotiation is an explicit voluntary traded exchange between people who want something from each other’ Gavin Kennedy
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6. Human Needs Manfred A. Max-Neef 1991. Human scale development: conception, application and further reflections. New York: Apex.
29. The Zone of Agreement Seller’s surplus Buyer’s surplus Zone of agreement s x b Seller’s reservation price (seller wants s or more) Seller wants to move x to the right Final Contract Buyer’s reservation price (buyer wants b or less) buyer wants to move x to the left Money ($)
30. Negotiating is about WHY , not WHAT The purpose of negotiating is seeing if you can get your interests met through and agreement, versus an alternative. Positions are WHAT we want Interests are WHY we want something Negotiate the WHY ….not the WHAT
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43. Negotiation Styles Source: Rollin & Christine Glaser ACCOMODATE Build friendly relationship Characteristics: Promote harmony Avoid substantive differences Give into pressure to save relationship Place relationship above fairness of the outcomes CONCERN FOR RELATIONSHIP CONCERN FOR SUBSTANCE LOW HIGH COLLABORATE Problem solved creatively, aiming for win-win Characteristics: Search for common interests Problem-solving behaviours Recognising both parties’ needs Synergistic solutions Win-win becomes the main purpose of the negotiator HIGH AVOID Take whatever you can get/Inaction Characteristics: Feeling of powerlessness Indifference to the result Resignation, surrender Take what the other party is willing to concede Withdraw & remove = behaviour of negotiator DEFEAT Be a winner at any cost/Competitive Characteristics: Win-Lose competition Pressure/Intimidation Adversarial relationships Defeating the other becomes a goal for the negotiator COMPROMISE Split the difference Characteristics: Meeting half way Look for trade offs Accept half-way measures Aims to reduce conflict rather than problem solve synergistically
44. The Four Phases of Negotiation PLAN DEBATE PROPOSE BARGAIN 11
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55. Think about your influencing style Inspirational Logical Personal Forceful
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58. Three Approaches To Resolving Disputes MOVING FROM A DISTRESSED TO AN EFFECTIVE RESOLUTION SYSTEM Distressed System "Dispute Resolution" Goldberg Green Sander Power Rights Interests
59. Three Approaches To Resolving Disputes Effective System Goldberg MOVING FROM A DISTRESSED TO AN EFFECTIVE RESOLUTION SYSTEM Power Rights Interests
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63. Tip #1 Negotiating is not Compromising It is joint problem solving Our goal is to efficiently reach a satisfying agreement for both parties, and to conclude on a positive note. Fisher and Ury define negotiations as “Back and forth communication to reach agreement where some interests are shared and some interests are opposed. “ Getting to Yes”
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67. Listening is your most powerful negotiating tool If that is the case, why are we such bad listeners? We listen to reply, argue, rebut, make our point, or win. We do not typically listen to understand. As Covey said, “Seek first to understand, then be understood
68. Tip #3: Have a game plan before beginning to negotiate Few people plan before beginning to negotiate If you cannot walk away from the negotiation at any time, you will lose. Knowing your options outside of the negotiation is a direct function of preparation. Without a plan you risk agreeing to something worse than what you may have done on your own.