Enhancing your Negotiation Powers
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Does our negotiation strategy really make a difference? Attend this webinar and you will find out the answer is YES and WHY. While every negotiator wants to win, having a thoughtful approach to reach a desired outcome is as important as the outcome. Understanding and honing the skills necessary to reach a beneficial decision is critical to success. During this webinar you will learn the definition of “negotiation” and the various styles of negotiation.
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Enhancing your Negotiation Powers
- 1. 1CONFIDENTIAL Enhancing your Negotiation Powers
- 2. 2CONFIDENTIAL Tayna Longino PRESIDENT AT HR PARTNERS
- 3. 3CONFIDENTIAL Negotiating Style Profile Sponsored by • A classroom training program that helps individuals develop their collaborative negotiating styles through thought, preparation, and skill practice. • Using a research-based self and feedback assessment, negotiators will identity with one of their negotiating skills. • Using group discussion, skill practice, and action planning activities, negotiators learn how to maximize not only their negotiation outcomes but their relationships. Stay tuned for a special offer on the Negotiating Style Profile after the conclusion of the webinar!!
- 4. 4CONFIDENTIAL 4 442 Course Objectives • Phases of Negotiations • Discover your negotiating style • Which negotiating style works best in different situations • How to collaborate and maintain a good relationship while negotiating
- 5. 5CONFIDENTIAL 5 552 State of Negotiating Source: Dilbert by Scott Adams
- 6. 6CONFIDENTIAL 6 662 State of Negotiating Source: Linkedin Online Professional Survey 40% US employees “not confident” in their negotiating skills. 37% male employees feel “self-assured” when negotiating 26% female employees feel “self-assured” when negotiating
- 7. 7CONFIDENTIAL 7 772 Negotiation Defined A negotiation is an interactive process through which two or more parties seek to come to mutual agreement.
- 8. 8CONFIDENTIAL 8 882 Negotiation Defined A negotiation is an interactive process through which two or more parties seek to come to mutual agreement.
- 9. 9CONFIDENTIAL 9 992 Negotiation Defined A negotiation is an interactive process through which two or more parties seek to come to mutual agreement.
- 11. 11CONFIDENTIAL 1111112 Polling Question • How frequently do you negotiate at work? oAll the time oFrequently oSometimes oRarely oNever
- 12. 12CONFIDENTIAL 1212122 What makes a negotiation challenging? ?
- 13. 13CONFIDENTIAL 1313132 What makes a negotiation challenging? Individuals are not ready to understand the second party at all. Lack of time. Going unprepared for a negotiation. Lack of patience. Criticism, sarcasm, derogatory remarks. Avoid last minute changes. I Being too rigid. Lack of confidence.
- 14. 14CONFIDENTIAL 1414142 What makes a negotiation challenging? Individuals are not ready to understand the second party at all. Lack of time. Going unprepared for a negotiation. Lack of patience. Criticism, sarcasm, derogatory remarks. Avoid last minute changes. I Being too rigid. Lack of confidence.
- 15. 15CONFIDENTIAL 1515152 The Importance of Negotiation in Business • Negotiate for Long-Term Career Success • Negotiate Your Role • Negotiate for Your Deal’s Success Source: The Importance of Negotiation in Business and Your Career, Harvard 2018
- 16. 16CONFIDENTIAL 1616162 Polling Question • How often do you negotiate at work? oAll the time oFrequently oSometimes oRarely oNever
- 17. 17CONFIDENTIAL 1717172 Course Objectives • Phases of Negotiations • Discover your negotiating style • Which negotiating style works best in different situations • How to collaborate and maintain a good relationship while negotiating
- 18. 18 4 Phases of Negotiations Source: Harvard Mentor
- 19. 19CONFIDENTIAL 1919192 Phase 1: Prepare to Negotiate • Identify the type and scope of the negotiation • Establish and improve your position • Assess the other party’s position • Identify the zone of possible agreement Source: Harvard Mentor
- 20. 20CONFIDENTIAL 2020202 Phase 1: Prepare to Negotiate Identify Type of Negotiation Characteristic Single-Issue Negotiation Multiple-Issue Negotiation Number of issues involved One Several Outcome Win-lose Win-win Interests Opposed Different value and priority placed on issues Duration Short term Short or long term Ability to make trade-offs Not flexible Flexible Solution Not creative Creative Single- versus multiple-issue negotiations Source: Harvard Mentor
- 21. 21CONFIDENTIAL 2121212 Phase 1: Prepare to Negotiate Identify Type of Negotiation – Multiple-Issues Negotiation Source: Harvard Mentor Single- versus multiple-issue negotiations
- 22. 22CONFIDENTIAL 2222222 Phase 1: Prepare to Negotiate Determine Scope Source: Harvard Mentor • Number of parties ▫ In negotiations that involve numerous parties, coalitions or alliances can form among various groups and influence the process and outcome • Number of phases ▫ Most negotiations are transactions implemented over time in different phases. After the parties complete a phase and uphold their agreements, they progress on to the next stage of negotiations. • Set goals ▫ Many people assume that the goal is to obtain the best price or most favorable terms. That may be true, but there are often higher objectives as well.
- 23. 23CONFIDENTIAL 2323232 Phase 1: Prepare to Negotiate Establish and Improve Position Concept Definition Best alternative to a negotiated agreement (BATNA) Your option if you fail to reach agreement during a negotiation Walk-away position The least favorable point at which you’ll accept a negotiated deal; otherwise, you walk away Zone of possible agreement (ZOPA) The range in which a potential deal can take place, defined by the overlap between your walk-away position and the other party’s walk-away position Value creation through trades The trading of goods or services that have only modest value to their holders, but exceptional value to the other party (this primarily applies to multiple-issue negotiations) Source: Harvard Mentor
- 24. 24CONFIDENTIAL 2424242 Phase 1: Prepare to Negotiate Assess Other Party’s Position Information about your counterparts Information about the organization • Who you’ll be negotiating with and their formal titles and areas of responsibility • Their personalities, styles, backgrounds, and interests • How long they have been with the organization and their relevant experience • How they are viewed within their organization • How they have performed in previous negotiations • How the organization is structured and decisions are made • Its culture, goals, and values • Its business circumstances, including the strength of its financial performance, its strategy, it's key corporate initiatives, and the competitive pressures it faces • The value the deal has to the other side and the objectives the other party is trying to meet by making this deal • How easy it would be for the other party to make an alternative deal with someone else • The terms that would satisfy the other side Ideally, you want to uncover: Source: Harvard Mentor
- 25. 25CONFIDENTIAL 2525252 Polling Question • How often do you take the time to understand the other side's interests? oAll the time oFrequently oSometimes oRarely oNever
- 26. 26CONFIDENTIAL 2626262 Phase 1: Prepare to Negotiate Identify the zone of possible agreement Zone of Possible Agreement (ZOPA) Source: Harvard Mentor
- 27. 27CONFIDENTIAL 2727272 Phase 2: Conduct the negotiation, including offers and counteroffers • Set the stage and tone • Use your strategies • Continually evaluate what’s happening Source: Harvard Mentor
- 28. 28CONFIDENTIAL 2828282 Phase 2: Conduct the negotiation Setting the Stage Source: Harvard Mentor • Agree on a time, place, and duration • Establish if you will meet once or engage in a series of meetings • Confirm who will participate from both organizations • Keep everyone informed about the meeting logistics • Determine who will prepare the meeting agenda, the topics that will be discussed, and the sequence in which you will discuss them
- 29. 29CONFIDENTIAL 2929292 Phase 2: Conduct the negotiation Get Off To Good Start Source: Harvard Mentor o Set a positive tone with your opening remarks. Express respect for the other side’s experience and expertise. Frame the negotiation as a joint endeavor. Emphasize your openness to your counterparts’ interests and concerns. o Discuss your expectations regarding process. People often have different assumptions about how the negotiation should work. Some expect proposals to be made at the outset, while others anticipate an open discussion of the issues first. Make sure that all parties have a shared understanding of the process. o Offer information. Voluntarily explain some of your interests and concerns first as a good-faith measure. If the other side does not reciprocate, be cautious about providing additional information.
- 30. 30CONFIDENTIAL 3030302 Phase 2: Conduct the negotiation Use Your Strategies Source: Harvard Mentor Conduct a single-issue negotiation - In most single-issue negotiations, a gain by one side represents a loss to the other. You can use several tactics to achieve gains and prevent losses:
- 31. 31CONFIDENTIAL 3131312 Polling Question • When negotiating, do you prefer to make the first offer? oYes oNo oIt Depends
- 32. 32CONFIDENTIAL 3232322 Phase 2: Conduct the negotiation Use Your Strategies Source: Harvard Mentor Conduct a multiple-issue negotiation - Multiple-issue negotiations rely on collaboration and information exchange to create and claim value. Use the following tactics to achieve success:
- 33. 33CONFIDENTIAL 3333332 Phase 2: Conduct the negotiation Continually Evaluate • Negotiation may seem to be a linear process of preparation, negotiation, and eventual agreement or failure. ▫ However, some complex negotiations require a cyclical approach. New information may appear at various points. Different parties may offer concessions or heighten their demands. • In these types of negotiations, you prepare and negotiate as usual. The negotiation then produces outcomes and information that you evaluate and use to prepare for a new round of negotiations. ▫ This process continues until you reach an agreement or walk away from the negotiation. Source: Harvard Mentor
- 34. 34CONFIDENTIAL 3434342 Phase 3: Finalize Agreement • Prevent errors and manage your emotions • Handle impasses • Close the deal • Evaluate the outcome Source: Harvard Mentor
- 35. 35CONFIDENTIAL 3535352 Phase 3: Finalize Agreement Source: Harvard Mentor Close the Deal - To finalize the negotiated agreement, follow these six tips:
- 36. 36CONFIDENTIAL 3636362 Phase 3: Finalize Agreements Handle impasses, stalemates, and deadlocks Type of Breakdown Definition Strategy Impasse You are in complete disagreement on one issue and it threatens the entire deal. Set aside the difficult issue and continuing discussing the other issues. Stalemate You are still talking to each other, but can’t make any progress. Change the dynamics of the negotiation by altering one of the elements. Deadlocks Lack of progress is frustrating enough that neither of you sees the point in pursuing negotiations. Bring in a neutral third party to mediate the deal. Source: Harvard Mentor
- 37. 37CONFIDENTIAL 3737372 Polling Question • Which do you find easier, opening a negotiation or closing the deal? oOpening the talk oClosing the deal oThey are equally easy
- 38. 38CONFIDENTIAL 3838382 Phase 4: Fulfill Agreement • Carry out the agreement • Meet your commitments • Capture and share what you learned Source: Harvard Mentor
- 39. 39CONFIDENTIAL 3939392 Course Objectives • Phases of Negotiations • Discover your negotiating style • Which negotiating style works best in different situations • How to collaborate and maintain a good relationship while negotiating Source: Negotiating Style Profile, HRDQ
- 40. 40CONFIDENTIAL 4040402 Negotiating Style Profile • The Negotiating Style Profile is designed to help you gain understanding of your negotiating style. • Understanding your negotiating style will help you maximize the 4 phases of negotiations. • Knowing your negotiating style can also help you adjust your style to increase your negotiating effectiveness. Source: Negotiating Style Profile, HRDQ
- 41. 41CONFIDENTIAL 4141412 Interacting Concerns • Negotiators have two primary concerns when they negotiate. ▫ Outcome of the agreement ▫ Relationship with the other party • Outcome means the objective of the negotiation; what are we negotiating for? • Relationship refers to the regard the parties have for each other; is the future important to us? • People have varying degrees of interest in these two concerns. Source: Negotiating Style Profile, HRDQ
- 42. 42CONFIDENTIAL 4242422 Interacting Concerns (continued) Build friendly relationships Creatively problem solve so both parties win Take whatever you can get Be a winner at any cost Split the difference Low Moderate High Low Moderate High CONCERNFORRELATIONSHIP CONCERN FOR OUTCOME Source: Negotiating Style Profile, HRDQ
- 43. 43CONFIDENTIAL 4343432 The Model of Negotiating Styles Accommodate Build friendly relationships Collaborate Creatively problem solve so both parties win Withdraw Take whatever you can get Defeat Be a winner at any cost Compromise Split the difference Low Moderate High Low Moderate High CONCERNFORRELATIONSHIP CONCERN FOR OUTCOME Source: Negotiating Style Profile, HRDQ
- 44. 44CONFIDENTIAL 4444442 Defeat • Drive a hard bargain • Total victory is the goal • There can be only one winner Source: Negotiating Style Profile, HRDQ
- 45. 45CONFIDENTIAL 4545452 Withdraw • Keep a low profile • Results are beyond my influence • Indifferent; resigned Source: Negotiating Style Profile, HRDQ
- 46. 46 Accommodate • Good relationships produce good deals • Maintain harmony • Make concessions for the sake of the relationship
- 47. 47CONFIDENTIAL 4747472 Compromise • Meet halfway • Split the difference • Look for trade-offs Source: Negotiating Style Profile, HRDQ
- 48. 48CONFIDENTIAL 4848482 Collaborate • Form a partnership • Push for mutual gain • Focus on problem solving Source: Negotiating Style Profile, HRDQ
- 49. 49CONFIDENTIAL 4949492 Polling Question • Which of the five negotiation styles are you closest to? oDefeat oWithdraw oAccommodate oCompromise oCollaborate
- 50. 50CONFIDENTIAL 5050502 Course Objectives • Phases of Negotiations • Discover your negotiating style • Which negotiating style works best in different situations • How to collaborate and maintain a good relationship while negotiating
- 51. 51CONFIDENTIAL 5151512 Which Style to Use? STYLE ADVANTAGE DISADVANTAGE Defeat Good short-term deals Destroy relationships Withdraw Expedient Unfair agreements Accommodate Easy agreement One-sided outcomes Compromise Adequate solutions Don’t reach optimal solutions Collaborate Creative, long-term solutions Takes time and effort Source: Negotiating Style Profile, HRDQ
- 52. 52CONFIDENTIAL 5252522 Course Objectives • Phases of Negotiations • Discover your negotiating style • Which negotiating style works best in different situations • How to collaborate and maintain a good relationship while negotiating
- 53. 53CONFIDENTIAL 5353532 Collaborative Negotiations – 6 Steps to Win-Win 1. Ensure fair-process 2. Establish transparency and trust 3. Have both parties share what their interests are 4. Both parties listen for understanding 5. Brainstorm to identify several possible solutions 6. Jointly select the best solution Win-win means all parties go away feeling as if they have done well, given the realities of the situation.
- 54. 54CONFIDENTIAL 5454542 Skills of successful negotiators • Align your negotiating goals with your organization’s goals. Any terms you agree on must support your organization’s strategic interests. • Prepare. Collect and analyze as much information as possible before any deliberations. Use each negotiation phase to prepare for the next. • Separate personal issues from negotiating issues. Remain objective so you can produce the best possible outcome. • Actively listen. Spend more time listening than talking. You’ll learn information that can help lead you to potential areas for compromise. • Develop a reputation for reliability and trustworthiness. Earn trust by practicing ethical behavior and following through on all promises. • Recognize the value of relationships. Work to retain long-term relationships with coworkers, key suppliers, and others. Communicate openly, admit to and address mistakes, and ask for feedback.
- 55. 55CONFIDENTIAL 5555552 Congratulations You can now … • Phases of Negotiations • Discover your negotiating style • Which negotiating style works best in different situations • How to collaborate and maintain a good relationship while negotiating
- 56. 56CONFIDENTIAL
- 57. 57CONFIDENTIAL Negotiating Style Profile Starter Kit Includes everything trainers need to deliver the Negotiating Style Profile, including a step- by-step workshop outline, the Model of Negotiating Styles, alternative training designs, optional activities, a Microsoft PowerPoint presentation, and sample participant materials for the facilitator. This Starter Kit includes 6 print self-assessments and 18 observer forms at a special price. SPECIAL ATTENDEE OFFER! COUPON CODE: nsp18 hrdqstore.com/nsp | Enter code at checkout | one time use only
Editor's Notes
- Thank you Sarah! Good Afternoon everyone and thank you for joining today’s webinar on Enhancing Your Negotiation Powers. For the time we have together we will cover the Phases of Negotians…..
- Let’s take a look at what Dilbert’s take on the State of negotiations is….based on this exchange…there was no real negotiation…and many often leave the table feeling like a real LOSER
- Let’s define NEGOTIATION…..
- Every negotiator has two kinds of interests: In the substance and in the relationship. Every negotiator wants to reach an agreement that satisfies his substantive interests. That is why one negotiates. Beyond that, a negotiator also has an interest in his relationship with the other side. At a minimum a negotiator wants to maintain a working relationship good enough to produce an acceptable agreement, if one is possible given each other’s interests. If negotiators are interested in developing a more collaborative win-win approach , they first need a clear picture of their present bahvior and its impact on the negotiation process. Increasing ones awareness for different negotiation preferences and styles can improve outcomes.
- The importance of negotiation in business cannot be overestimated. Keep your career moving forward by capitalizing on the advantages of negotiation in busiess.
- Let’s think about how often we negotiate at work. In the polling box answer the following question:
- Let’s spend a few moments on the Phases of Negotiations
- Today we will look at 4 phases of negotitations:
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- I
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- Let’s take another poll…..
- .
- .And finally we’re at the end of the negotiation….
- Our next course objective is Discovering your negotiation style..
- The purpose of understanding your Negotiating Style Profile is to help anyone who negotiates gain a better understanding of how his or her behavior is likely t a ffect his or her negotiating parnters and the negotiating results. Negotiating may be defined a specialized form of communication. Understanding and identifying the style that works best for you will help you maximize negotiating effectiveness
- There is a universal concern shared by all negotiators regardless of the object of their negotitation. Each concern interacts wit the other to produce a pattern or style for negotiating behaviors…
- This figure shows the behaviors identified based on the importance of relationship versus outcome…let’s look more closely at the beahviors
- When there is a high degree of concern for the outcome of the negotiation and a low degree of concern expressed for the relationship….a Defeat pattern of behavior is produced. The negotiator is determined to defeat the other party at all cost. The other party’s needs aren’t important. If I’m the negotiator…I don’t trust anyone. I have a “Business is Business” attitude. I can be billigerant. Intimidate, browbeat…Power and control over everything.
- When there is a low degree of concern for both the outcome of the negotiation and the relationship expressed, a Withdraw behavior pattern is produced. As the negotiator I have little interest in maintain and developing good business relationships. I feel powerless and have little concern for the ourtocome. I’m indifferent. I avoid confrontation situations, Realistically, I take whatever the other person is willig to give.
- When the focus is on building a compatible relationship in the hope that the negotiate will be successful, an Accommodate behavior pattern is developed. The negotiatior spends minimal effort working out the best deal. My focus is on the building a friendly relationship. My belief is that in the long run a friendly relationship will pay-off. My goal is to maintain harmony, I’m agreeable and willing to make concessions to further the relationship. I can tend to trust with out reservation and yeild
- When there’s a moderate degree of concern for both dimensions of negotiation behavior is expressed, a Compromise behavior is produced. The negotiator has a moderate degree of concern for both relationship and negotiation outcome. As the negotiatior I believe in meeting the other party half way. Finding a quick solution we can both agree on. Give something to get something is my philosophy. Each party walks away with someithing
- When there is a high degree of concern for both the outcome and the relationship, a collaborate behavior pattern is developed. As the negotiator I believe both sets of bahviors are important. The outcome of the deal and the relationship are critical. This pattern searches for common interests, problem solving, and recognizing that both parties must get their needs satisfied for the outcome to be entirely successful. I Yeild to principal not pressure. I’m trying to reach a results based on objective criteria. Instead of dividing apples, we shake the tree to get more apples for everyone.
- Which of the 5 styles do you seem to favor? Think about these questions: What insights do you have about your negotiating style? If you wanted to increase your Collaborative behaviors what actions might you take? How could you become more effective at negotiating collaboratively?