5. Understanding Negotiation
• Distributive Negotiation:
• A dollar you win, is a dollar I lose
• Fixed pie (sum of money) to be divided up
• Often one time transaction, relationship not important
• Integrative Negotiation:
• Win-win
• Expand the pie before we divide it up
• Your negotiations involve relationship and reputation
6. Interests vs Positions
• Positions:
• The WHAT, WHAT you want, what others want
• Interests:
• The WHY, WHY this is important to you/others
Focus on Interests NOT Position
Exercise
7. To Listen
• Make an effort to hear
• Pay attention
• Take notice, be persuaded by…
~ Oxford Dictionary
Listen for Needs, Values and Underlying Concerns
to enable mutual understanding
8. Empathy
Empathy is the ability to identify and understand another’s situation,
feelings and motives. It is our capacity to recognize the concerns
other people have
“Putting yourself in the other person’s shoes”
“Seeing things through someone else’s eyes”
9. Empathy
• Identify – Listen, Listen, Listen & Listen
• Acknowledge
• Play Back – Facts & Feelings
Exercise
10. The Art of Using Questions
“The Power to question is the basis of
all human progress”
~ Indira Gandhi
12. Probing Skills
PROBE
Why?
To what extent?
To what degree?
LIMITED CHOICE
Which do you
prefer, A or B?
LINK
Bearing in mind what
you said earlier…
LEADINGYou do agree
don't you... ?
13. Negotiation Pathway
1. Set & Align expectation 2. Focus on the other party
3. Integrative negotiation 4. Interests vs Positions
5. Listening 6. Empathy
7. Ask powerful questions
14. • Thinking it is the end of the world if you don’t reach your outcome
• Wanting something too much
• Approaching negotiations with win-lose mentality
• Failing to see more than one option
• Short-term thinking that ruins long-term relationships
• Accepting opinions, statements, and feelings as facts
• Accepting positions as final
• Thinking the other side has all the power
• Believing that having more authority gives you more power
• Talking too much - listening too little
Common Negotiation Mistakes
15. Negotiation checklist
• Preparation
– Mindset:
• More about them and their interests
• Less about you and your positions/agenda
• Be curious, active listening and probe to find out about them
– Interests vs Positions:
• What is your interest?
• What are the other party’s interests?
• What are important to them?
– Integrative negotiation:
• Be creative: look for win win outcomes
• What can you do to foster long term relationship & reputation
– Contents:
• What are the key issues?
• What obstacles may arise?
• What is your bottom line?
• What are the facts? What can you offer from your side?
• What are you requesting?
16. Negotiation checklist
• In negotiation – Hard on issues, soft on relationship
– Active listening and Empathy:
• Stop talking, be interested
• Ask clarifying and probing questions
• Listen and acknowledge
• Play back facts and feeling
– Using questions:
• Clarify and confirm understanding
• Build rapport
• Uncover individual and common interests
– Explore alternatives:
• Use questions, listening and win win mindset to explore
17. Negotiation checklist
• closing
– Summarize:
• Confirm agreement on all terms. Don’t ASSUME!
– Next steps:
• Agree to timing and specific actions of next steps: who, what and by when?
• Document and distribute immediately to ensure agreement exists and clarity
18. Role Plays: Case Studies
Case 1: To negotiate for a new sales contract with a Private Medical Centre (PMC)
=> PMC wants you to drop price by 10%
Case 2: To get Principal to agree to additional service fee for online listing
=> Principal not keen to pay additional margin as they think the additional
sales from online listing should have already given us the additional
income
Case 3: To get product listed in Guardian
=> Guardian not keen, citing lack of space and low market demand
Case 4: To negotiate contract renewal
=> Want to reduce margin