Negotiation Strategies and Tactics. Evolution of Negotiation “A Plan for Success”. Give and Take Dr. Chester Karrass Getting to Yes Fisher and Ury Difficult Conversations Stone, Patton and Heen. Guidelines Original Negotiation Encyclopedia Power Assessment Negotiation Traits Planning
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Evolution of Negotiation “A Plan for Success” • Give and Take Dr. Chester Karrass • Getting to Yes Fisher and Ury • Difficult Conversations Stone, Patton and Heen
Guidelines Original Negotiation Encyclopedia Power Assessment Negotiation Traits Planning Negotiation Modes Buyer/Seller Satisfaction Tactics and Countermeasures Aspiration Level Concessions Messages Understand Your Sources of Power Planning Pays Off Profit is a Gain in Satisfaction Aim Higher - You Come Out Better Always Make Assumptions, but . . . Change the Time and Shape of the Money Give and Take“Power Tactics”
Guidelines Focus on Common Interests, not Differing Positions Invent Options for Mutual Gain Use Power of Independent Standards Always Develop your BATNA Separate the People from the Problems Messages Negotiation is Like Playing Frisbee Convert Age of Me to Era of We Key is Mutually Acceptable Conflict Resolution Try Side-by-Side Problem Solving There is Always a Better Deal for Both Parties Learn How to be a Fly on the Wall Getting to Yes“Joint Problem Solving”
Getting to Yes“Change the Game” Problem Solution Positional Bargaining: Which Game Should You Play? Change the Game-Negotiate on the Merits
Guidelines Sort Out Three ConversationsThe “What Happened” ConversationThe “Feelings” ConversationThe “Identity” Conversation Shift to a Learning Stance, a Learning Conversation Sincere Listening Works (Help Me Understand) Open with Self Confident Expression Begin with the Third Story(Your Story, Other Person’s Story, and the Invisible Third Story) Messages Explore Each Other’s Stories Learn to be Curious Abandon Blame Map the Contribution System Feelings Matter Acknowledge Feelings Ground Your Identity . . .Ask Yourself What’s at Stake Manage Your Internal Voice Join Together as partners, Sort Out the Situation Together Difficult Conversations“Create a Learning Conversation”
A Battle of Messages Assumption: I know all I need to know to understand what happened Goal: Persuade them I’m right. Assumption: I know what they intended. Goal: Let them know what they did was wrong. Assumption: It’s all their fault. (Or it’s all my fault.) Goal: Get them to admit blame and take responsibility for making amends. A Learning Conversation Assumption: Each of us is bringing different information and perceptions to the table. There are likely to be important things that each of us doesn’t know. Goal: Explore each other’s stories: how we understand the situation and why. Assumption: I know what I intended, and the impact their actions had on me. I don’t and can’t know what’s in their head. Goal: Share the impact on me, and find out what they were thinking. Also find out what impact I’m having on them. Assumption: We have probably both contributed to this mess. Goal: Understand the contribution system: how our actions interact to produce this result. Difficult Conversations“How to Discuss What Matters Most” The “What Happened?” ConversationChallenge: The Situation is more complex than either person can see.
A Battle of Messages Assumption: Feelings are irrelevant and wouldn’t be helpful to share. (Or, my feelings are their fault and they need to hear about them.) Goal: Avoid talking about feelings. (Or, let’em have it!) A Learning Conversation Assumption: Feelings are at the heart of the situation. Feelings are usually complex. I may have to dig a bit to understand my feelings. Goal: Address feelings (mine and their) without judgements or attributions. Acknowledge feelings before problem-solving. Difficult Conversations“How to Discuss What Matters Most” The “Feelings” ConversationChallenge: The Situation is emotionally charged
A Battle of Messages Assumption: I’m competent or incompetent, good or bad, lovable or unlovable. There is no in-between. Goal: Protect my all-or-nothing self-image A Learning Conversation Assumption: There may be a lot at stake psychologically for both of us. Each of us is complex, neither of us is perfect. Goal: Understand the identity issues on the line for each of us. Build a more complex self-image to maintain my balance better. Difficult Conversations“How to Discuss What Matters Most” The “Identity” ConversationChallenge: The Situation threatens our identity
Negotiation Lessons Learned • View negotiation as a long process • Map objectives, strategies and tactics • Create time to plan and prepare • Select appropriate model and style • Spend time in the details • Learn to be self-confident • Adopt challenges and expectations • Listen and Learn • Represent all interested parties at table • Acquire a negotiation toolbox (Tactics, Caucus, Relationships, etc.)
Evolution of Negotiation and Conflict Resolution 1970 to 1985 Power Side by SideProblem Solving 1985 to 2000 A LearningConversation 2000 to _____ What Tools do you Carry in Your Negotiation Toolbox?
Karrass Win/Lose Take It or Leave It Self-Confidence Power Preparation Invent Options Strategy Common Interests Fly on the Wall Aim Higher - You Come Out Better Body Language Planning Traits Listen Bogey P.O. # Options Find the Better Deal Nibble What Tools Do You Carry in Your Negotiation Toolbox? Fill Your Toolbox Be Tough, But Be Fair • Make Love • Research • Brainstorming • Ethics • Satisfaction • Strategic Partners • Caucus • BATNA? • Tactics • Electronic Commerce • Long-Term Agreements • Cost Drivers • GTY Sharing • Standards • Make War • Relationships • Continuous Improvement • Separate People/Issues
Prepare yourself and your team Know the other party Know the big picture Identify objectives Prioritize objection Create options Select fair standards Examine alternatives Select your strategy, tactics and counter tactics Develop a solid and approved team negotiation plan Prepare the negotiation memorandum Send the memorandum to the other party Offer to write the contract Prepare the contract Prepare negotiation results summary Obtain required reviews and approvals Send the contract tot he other party for signature Provide copies of the contract to affected organizations Document lessons learned Prepare for implementation Key Negotiation Activities Documenting the Negotiation and Forming the Contract Planning the Negotiation Conducting the Negotiation • Determine who has authority • Prepare the facility • Use an agenda • Introduce the team • Set the right tone • Exchange information • Focus on objectives • Use strategy, tactics and counter tactics • Make counter offers • Document the agreement or know when to walk away
Negotiation Best Practices Best Practices • Understand that contract negotiation is a process, usually involving a team effort • Select and train highly skilled negotiators to lead the contract negotiation process • Know market and industry practices • Prepare yourself and your team • Know the other party • Know the big picture • Identify and prioritize objectives • Create options --be flexible in your planning • Examine alternatives • Select your negotiation strategy, tactics and counter tactics • Develop a solid and approved team negotiation plan • Determine who has the authority to negotiate • Prepare the negotiation facility at your location or at a neutral site • Use an agenda during contract negotiation
Negotiation Best Practices Best Practices • Set the right tone at the start of the negotiation • Maintain your focus on your objectives • Use interim summaries to keep on track • Do not be too predictable in your tactics • Document your agreement throughout the process • Know when to walk away • Offer to write the contract • Prepare a negotiation results summary • Obtain required reviews and approvals • Provide copies of the contract to all affected parties • Document negotiation lessons learned and best practices • Prepare a transition plan for contract administration • Understand that everything affects price • Understand that Ts and Cs have cost, risk and value • Tailor Ts and Cs to the deal, but understand the financial effects on price and profitability • Know what is negotiable and what is not