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Negotiation skills
Anuj Dawra
Sales Executive
BIKANER(RAJASTHAN)
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Definition
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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What is negotiation?
• Definition: Negotiation is a
process of communication in which
the parties aim to send a message
to the other side and influence each
other.
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Cont....
• something that we do all the time, not only
for business purposes.
• usually considered as a compromise to
settle an argument or issue to benefit
ourselves as much as possible.
• not always between only two people: it can
involve several members from two parties.
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Negotiating is about WHY, not WHAT
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• 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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Types of Negotiation
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1.Distributive negotiations
2.Integrative negotiations
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Distributive negotiations
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• Often referred to as 'The Fixed Pie’
• usually involves people who have never had a previous
interactive relationship, nor are they likely to do so again in
the near future.
• Example: Purchasing products or services, like when we buy a
car or a house
• Ours and their interests are usually self serving
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Integrative negotiations
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• The process generally involves some form
or combination of making value for value
concessions, in conjunction with creative
problem solving.
• Form a long term relationship to create
mutual gain.
• often described as the win-win scenario
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The Four Phases of Negotiation
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1.PLAN
2.DEBATE
3.PROPOSE
4.BARGAIN
Step One Prepare –
• Research
• LIST your objectives and their objectives
• Those you INTEND to get
• Those you MUST get
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Step Two - Debate
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• Listen carefully
• Ask questions
• Clarify
• Summaries
• Don't argue, interrupt or assume•
• ...BUT
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Step Three - Propose
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• Make proposals
• State conditions
• Express concerns
• Search for common interests
• Use positive body language
• AND
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Step Four - Bargain
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• Key words are IF and THEN
• Start making concession
• Every concession should have a condition (IF you ... THEN I will ...)
• Conserve your concessions - don't give everything away too soon
• You don't have to share every piece of information with the opposing side!
•Don't be afraid to say no
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Three stages of negotiation
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• Initial Stages
• Middle Stages
• Ending Stages
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Initial stage
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• Plan thoroughly
• Organize the issues
• Focus on mutual principles and concerns
• Be aware that the first offer is often above expectations
• Focus on long-term goals and consequences
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Middle stage
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• Revise strategies.
• Consider other options.
• Increase power by getting the other side to commit first.
• Add credibility by getting agreements in writing.
• To get through with dead ends, just set it aside momentarily.
• When asked for a concession, ask for a tradeoff.
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Ending stage
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• Counter a persistent negotiator by withdrawing an offer.
• Do not expect in verbal promises.
• Congratulate the other side.
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Barriers to Negotiation
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• Sometimes people fail to negotiate because they do not recognize that they are in a bargaining
position.
• Or, they may recognize the need for bargaining but may bargain poorly because they do not fully
understand the process and lack good negotiating skills.
• Negotiation seems to bring conflicts. Any misunderstanding that arises between them will reinforce
their prejudices and arouse their emotions
• if the right people are not involved in negotiations, the process is not likely to succeed.
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Overcome barriers:
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• Parties must be aware of their alternatives to a negotiated settlement
• Weaker parties must feel assured that they will not be overpowered in a negotiation
• Parties must trust that their needs and interests will be fairly considered in the negotiation process.
• To combat perceptual bias and hostility, negotiators should attempt to gain a better understanding of
the other party's perspective and try to see the situation as the other side sees it.
• Agreements can be successfully implemented only if the relevant parties and interests have been
represented in the negotiations.
• So, all of the interested and affected parties must be represented. And, negotiators must truly
represent and have the trust of those they are representing.
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To brush up your 'win-win' negotiation skills
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Preparation is needed
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What is win-win negotiation?
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• For a negotiation to be win-win", both parties should feel positive
about the negotiation once it's over.
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Goals.....
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• What you want to get out of the negotiation
• What you think the other person wants
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Alternatives
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• If you don't reach agreement with the other person, what alternatives do you have?
• Are these good or bad?
• How much does it matter if you don't reach agreement?
• Does failure to reach agreement cut you out of future opportunities?
• What alternatives the other person might have?
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Relationship:
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• What is the history of the relationship?
• Could or should this history impact the negotiation?
• Will there be any hidden issues that may influence the negotiation?
• How will you handle these?
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Expected outcome:
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• What outcome will people be expecting from the negotiation?
• What has the outcome been in the past, and what precedents have been set?
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The consequences:
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• What are the consequences for you of winning or losing this negotiation?
• What are the consequences for the other person?
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Powers:
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• Who has what power in the relationship?
• Who controls resources?
• Who stands to lose the most if agreement isn't reached?
• What power does the other person have to deliver what you hope for?
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Possible solution:
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• Based on all the consideration....
• What possible solutions might there be?
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Improving negotiation skills:
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• Negotiating is not Compromising
• It is joint problem solving and to conclude on a positive note. What is your "preferred style" of
communicating?
• What is the "style" of the other person with whom you will be negotiating? People Skills Make the Difference
• Listening is the most powerful negotiating skill
• It begins with effective communication...understanding your preferred method and learning the method of
the other party.
• Communicate with them in a way that will be most effective with their style
• This helps to eliminate the possibility of misunderstanding, as we communicate in many ways
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• But before you can listen, you have to be skilled at asking questions:
• Three critical questioning skills:
• Know where your questions are going
• Ask for permission to ask questions
• State why you want to ask questions
• 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.
