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Presented By:
                         TARINI- 41002
                         SACHIN- 41001
Prepared By :   Gihan Aboueleish
Contents
  • What is Negotiation?
  • Features of Negotiation
  • Why Negotiate ?
  • Types of Negotiation




                                              Negotiation Skills - Gihan
  • Distributive Vs Integrative Negotiation
  • Negotiation Process
  • BATNA
  • Bargaining Zone Model of Negotiation
  • Negotiating Behavior
  • Issues in Negotiation
  • Third party Negotiations
  • How to achieve an Effective Negotiation
  • Negotiation Tips
“Change the way
you look at things,
and the things you




                      Negotiation Skills - Gihan
look at


change      ”
You can’t sail anywhere until you learn which way the wind wants to blow




                                                                           Negotiation Skills - Gihan
                                                                                        Aboueleish
What Is Negotiation ?
  • The word "negotiation" originated from the Latin expression,
    "negotiatus", which means "to carry on business".


  • The process of conferring to arrive at an agreement between




                                                                        Negotiation Skills - Gihan
    different parties, each with their own interests and preferences.




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  • “A give-and-take decision-making
    process involving interdependent parties
    with different preferences.”
Defined :
 Negotiating is the process of communicating back and
  forth, for the purpose of reaching a joint agreement
  about differing needs or ideas.

 It is a collection of behaviours that involves




                                                            Negotiation Skills - Gihan
                                                                         Aboueleish
  communication, sales, marketing, psychology, sociology,
  assertiveness and conflict resolution.

 A negotiator may be a buyer or seller, a customer or
  supplier, a boss or employee, a business partner, a
  diplomat or a civil servant. On a more personal level
  negotiation takes place between spouse’s friends,
  parents or children.
Features Of Negotiation

• Minimum two parties
• Predetermined goals




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• Expecting an outcome
• Resolution and Consensus
• Parties willing to modify their positions
• Parties should understand the purpose of
  negotiation
Why Do We Negotiate ?

  • To reach an agreement
  • To beat the opposition




                             Negotiation Skills - Gihan
  • To compromise




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  • To settle an argument
  • To make a point
Types Of Negotiation
 Distributive Negotiation
 Integrative Negotiation




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Distributive Negotiation
 Parties compete over the distribution of a fixed sum of
  value. The key question in a distributed negotiation is,
  “Who will claim the most value?” A gain by one side is
  made at the expanse of other.




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 The Seller’s goal is to negotiate as high a price as possible;
  the Buyer’s goal is to negotiate as low a price as possible.


 Thus, the deal is confined: there are not much opportunities
  for creativity or for enlarging the scope of the negotiation.
Integrative Negotiation
 In Integrative Negotiation, parties cooperate to achieve maximize benefits by integrating
  their interests into an agreement. This is also known as a win-win negotiation.


  •   The key questions is: “How can the resource best be utilized?”




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                                                                                                           Aboueleish
 Integrative negotiations tend to occur in following situations:
        • Structuring of complex long-term Strategic Relationships or other collaborations.
        • When the deal involves many financial and non-financial terms.
 In an integrative negotiation,, there are many items and issues to be negotiated, and the
  goal of each side is to “create” as much value as possible for itself and the other side.
Distributive Versus Integrative Negotiations

 Characteristic     Distributive         Integrative
   Outcome           Win-lose               Win-win
                                     Joint and individual




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  Motivation       Individual gain
                                             gain
                                       Different but not
   Interests          Opposed
                                       always Opposite
  Relationship       Short-term      Longer or Short-term
Issues involved        Single               Multiple
 Ability to make
                    Not Flexible           Flexible
   trade-offs
     Solution       Not creative          Creative
Negotiation Process
            PREPARATION




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                                            Aboueleish
        INFORMATION SHARING



            BARGAINING



         FINALIZING THE DEAL
BATNA
 BATNA is ;
 Best




               Negotiation Skills - Gihan
 Alternative




                            Aboueleish
 To

 Negotiated

 Agreement
Why BATNAS Matter

• BATNAs tell you when to accept and when to reject an
  agreement




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 • When a proposal is better than your BATNA:
   ACCEPT IT


 • When a proposal is worse than your BATNA:
   REJECT IT
Negotiation: A Counter-intuitive Process
  Title comes from remarks made by participants at some of
   my negotiation workshops
                               “that’s the opposite of what I do”
   “I know I should do that, but I find myself doing exactly the
                                                        opposite”
                                            “Its counter-intuitive”




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  What are people saying ?
   • They recognize the prudence of a particular strategy
   • But they find it difficult to implement it
   • Their natural inclination is to do the opposite of what
     they recognise is the prudent strategy
Intuitive – Counter-intuitive

 What are
    some of the intuitive things we do in a negotiation
    the counter-intuitive thing we might consider as an
      alternative ?
Automatic gear                     Shift into manual
Focus on Positions                 Focus on interests
Dive into the negotiation          Defer the negotiation to a time of our own
                                   choosing, gather information first

When our proposals are rejected,   Ask why our proposal doesn’t work, and
justify and defend them            gather information

When a proposal is made to us      Instead of rejecting, ask why their proposal
that is unacceptable, rejection    is important, and gather information
                                      17
Basic Principles Common To All Forms Of
Negotiation
 There are minimum 2 parties involved in the
  negotiation process. There exists some
  common interest, either in the subject




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  matter of the negotiation or in the
  negotiating context, that puts or keeps the
  parties in contact.

 Though the parties have the same degree
  of interest, they initially start with different
  opinions and objectives which hinders the
  outcome in general.
 In the beginning, parties consider that negotiation is a
  better way of trying to solve their differences.




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 Each party is under an impression that there is a
  possibility of persuading the other party to modify their
  original position, as initially parties feel that they shall
  maintain their opening position and persuade the other
  to change.
 During the process, the ideal outcome proves
  unattainable but parties retain their hope of an




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  acceptable final agreement.

 Each party has some influence or power – real or
  assumed – over the other’s ability to act.

 The process of negotiation is that of interaction
  between people – usually this is direct and verbal
  interchange.
Characteristics Of An Effective Negotiator


 He should be a good learner and observer.




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 Should know the body language of the
  people at the negotiation process.
 Should be open and flexible and yet firm.
 Exercise great patience, coolness and
  maturity.
 Should possess leadership qualities.
• Should control emotions and not
 show his weaknesses.
• Should bargain from the position of strength.
• Should know and anticipate the pros and cons of
  his each move and its repercussions.




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• Should know how to create the momentum for the
  negotiations and must know when to exit and where
  to exit by closing the talks successfully.
• Should build trust and confidence.
• Should be confident and optimist.
• Should have clear cut goals and objectives.
• If necessary, he should provide a face saving




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  formula for his counter party.
• Should be able to grasp the situation from many
  dimensions.
• Should know human psychology and face reading
• Should not be a doubting Thomas.
• Should plan and prepare thoroughly with
  relevant data and information to avoid
  blank mind in the process.




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• Should radiate energy and enthusiasm
  and must be in a position to empathize
  with his opponents.
• Should be a patient listener.
How To Develop These Skills And Use Them
Effectively ?
• what negotiation means and the various
  forms it can take that negotiating, in the
  fullest sense, means forging long-term




                                                 Negotiation Skills - Gihan
  relationships the role that the individual




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  personalities play in negotiating that you
  must take a variety of approaches to
  negotiation, since no single set of
  principles will suffice in all circumstances
Negotiation Skills Style Test




Negotiation Skills - Gihan
             Aboueleish
Negotiation Skills - Gihan
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Types Of Negotiation In Organizations
Managerial Negotiations

    Types      Parties Involved              Examples

               1. Different levels of   1. Negotiation for
Day-to-day/       Management               pay, terms and




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Managerial                                 working
Negotiations   2. In between
                  colleagues               conditions.

               3. Trade unions          2. Description of
                                           the job and
               4. Legal advisers           fixation of
                                           responsibility.
                                        3. Increasing
                                           productivity.
Commercial Negotiations
    Types      Parties Involved            Examples




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Commercial     1.   Management       1. Striking a contract with
Negotiations   2.   Suppliers           the customer.
               3.   Government       2. Negotiations for the
               4.   Customers           price and quality of
               5.   Trade unions        goods to be
               6.   Legal advisors      purchased.
               7.   Public           3. Negotiations with
                                        financial institutions as
                                        regarding the
                                        availability of capital
Legal Negotiations
     Types     Parties Involved       Examples

               1.Government       1. Adhering to




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Legal                                the laws of the
               2.Management
Negotiations                         local and
               3.Customers           national
                                     government.
How To Plan Your Negotiation Agenda




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             Aboueleish
Preparing For A Successful Negotiation…
  Depending on a scale of disagreement, the
   level of preparation might be appropriate for
   conducting the successful negotiation.




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  For a small disagreements, excessive
   preparation could be counter-productive
   because it do takes time which is better
   focused in reaching the team goals.
If the major disagreement needed to be resolved,
preparing thoroughly for that is required, and worthwhile.
Think through following points before you could start
negotiating.




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  • Goals:
      What you want to get out from the negotiation?
              What do you expect from the other person?
 What you and the other person have
  which you can trade?




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 • What do you and the other person
  have so that the other wants it?
 • What might you both be prepared to
  give away?
• Alternatives:
 • If you do not reach the agreement with
   him/her, what alternatives you have?

 • Are these things good or bad alternatives?




                                                      Gihan Aboueleish
                                                     Negotiation Skills -
 • How much it matters if you do not reach the
   agreement?

 • Will the failure to reach the agreement cut out
   future opportunities?

 • What alternatives may the other person have?
• The relationship:
 • What is a history of relationship?
 • Can or should this history impact
   negotiation?




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 • Will there be any of the hidden
   issues that might influence
   negotiation?
 • How you will handle these?
• Expected outcomes:
 • What outcome would people
         be expecting from the




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                 negotiation?

 • What was the outcome in the
   past, and what precedents
   been set?
• The Consequences:
 • What are the consequences of winning
   or losing this negotiation by you?
 • What are the consequences of winning




                                          Negotiation Skills - Gihan
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   or loosing by the other person?
• Power:

 • Who has the power in the relationship?
 • Who do controls the resources?
 • Who stands to lose most if agreement is




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   not been reached?
 • What power does other person have to
   deliver which you do hope for?
• Possible Solutions:
•
    Based on all considerations, what




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    possible compromises might be there?
Negotiating And Long-term Relationships

Good negotiators are the people who
understand




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                                                               Aboueleish
  • how to build key relationships
  • how to identify what people need
  • how to give them what they need and
  • how to get what they want in return, all
                in a way that seems effortless.
Negotiating And Individual Personalities

  Autocratic managers typically hold the view that
   they are going to get what they want when they
   interact with subordinates, because their inherent




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   authority precludes the need to negotiate.

  These managers do not realize that, in the process
   of handing out orders, they are engaged in a kind
   of one-sided negotiation that can antagonize
   others, with the result that the tasks they wish to
   see completed may be carried out improperly or not
   at all.
The Accommodating manager is more
concerned with what others want than with
their own needs.




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In order to avoid conflict, they do not negotiate
at all and often end up overriding their own
interests.
B.A.T.N.A




Negotiation Skills - Gihan
             Aboueleish
The Negotiation Process

BATNA
The Best Alternative To a




                                   Negotiation Skills - Gihan
                                                Aboueleish
Negotiated Agreement; the
lowest acceptable value
(outcome) to an individual for a
negotiated agreement.
Your “BATNA “ is the only standard which can
  protect you both from accepting terms that are
  too unfavourable and from rejecting terms it




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  would be in your interest to accept.”

In the simplest terms, if the proposed agreement
  is better than your “BATNA”, then you should
  accept it. If the agreement is not better than your
  “BATNA” , then you should reopen negotiations.
Where Do Use This Skill?
 • Everything is negotiated.
   • Family and personal
     • “ Where should we go for dinner?”
     • “ Can I borrow the car?”




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   • Academic research
     • “ Fund my project.”
     • “ Publish my paper.”
   • Business ventures
     • “ I want a raise.”
     • “ Invest in my company.”
     • “ Pay me a license fee or I’ll sue you.”
Determining Your BATNA
BATNAs are not always readily apparent. Fisher and
Ury outline a simple process for determining your
BATNA:




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  • develop a list of actions you might conceivably
    take if no agreement is reached;
  • improve some of the more promising ideas and
    convert them into practical options; and
  • select, tentatively, the one option that seems
    best.
   A persons go for car purchase.
                [To negotiate with showroom sales man
                                        for lesser price]




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                                                                         Aboueleish
         ple  The car owner is not
       am      agreeing for the lesser
   A
     Ex        price.
  TN         Than customer can
BA
              ask for Radial
              tires[best alternative]
              with any increase in
              price further.
CASE STUDY




Negotiation Skills - Gihan
             Aboueleish
Case Study – Application 01

• Highly Brill Leisure Centre has hired you to
  help them with their marketing decision
  making. Perform a SWOT analysis on Highly




                                                 Negotiation Skills - Gihan
                                                              Aboueleish
  Brill Leisure Centre, based upon the
  following issues:
CASE STUDY – Application 02

A community discovers that its water is being
polluted by the discharges of a nearby factory.




                                                  Negotiation Skills - Gihan
Community leaders first attempt to negotiate a




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clean-up plan with the company, but the
business refuses to voluntarily agree on a plan
of action that the community is satisfied with.
Issues In Negotiation
The Role of Mood & Personality Traits in Negotiation;


  • Positive moods positively affect negotiations
  • Traits do not appear to have a significantly direct




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    effect on the outcomes of either bargaining or
    negotiating processes (except extraversion,
    which is bad for negotiation effectiveness)
Gender Differences In Negotiations;

  • Women negotiate no differently from men,
    although men apparently negotiate slightly better
    outcomes.




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  • Men and women with similar power bases use
    the same negotiating styles.
  • Women’s attitudes toward negotiation and their
    success as negotiators are less favorable than
    men’s.
The Importance of BATNAs
Once parties establish a BATNA, they
must then compare the costs and
benefits of the BATNA to all of the




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settlement options on the table.


Ask, "What's it going to cost you if you
don't?"
Negotiation Strategies




Negotiation Skills - Gihan
             Aboueleish
• Most of the negotiation literature focuses on two
  strategies, although they call them by different
  names.




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                                                                   Aboueleish
• One strategy is interest-based(or integrative, or
  cooperative) bargaining, while the other is
  positional (or distributive or competitive)
  bargaining.
Interest-based Bargaining /Win-win Bargaining

• Integrative bargaining in which parties collaborate to
  find a “win-win" solution to their dispute.
• This strategy focuses on developing mutually beneficial




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  agreements based on the interests of the disputants.
• Interests include the needs, desires, concerns, and
  fears important to each side.
Positional Bargaining

Positional bargaining is one that involves
holding on to a fixed idea, or position, of




                                              Negotiation Skills - Gihan
                                                           Aboueleish
what you want and arguing for it and it
alone, regardless of any underlying
interests.
Negotiation Skills - Gihan
             Aboueleish
Negotiation Skills Style Test




Negotiation Skills -
 Gihan Aboueleish
Exercise #1
Roles : Rita, a 15 year old girl. The Observer
becomes Rita’s parent. Others are Observers to
record use/abuse of “win/win” techniques.




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Background: Rita is calling home from a payphone
on Hwy 401 to tell her parent she is hitch-hiking to
Hollywood to be a movie star. She has no money,
is a little afraid, and secretly wants to go to drama
school. The parent is worried about Rita being out
after curfew. Parent picks up the ‘phone, and has 3
minutes to effect a “win-win” approach before the
payphone times out.
Exercises #2
Background:
     Suresh has a Programmer off sick, and wants to
  negotiate two weeks of Kunal’s time to work on the
  Company’s most important project immediately, because
  Kunal is the best programmer, and knows the tasks.




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  Delays may affect everyone’s bonus.

      Kunal’s Manager is concerned the loss of Kunal will
  mean he will not be able to complete tasks on another
  project their department is committed to deliver (requiring
  one week of work in the next 3 weeks), because Suresh
  has a reputation of over-utilizing resources (and padding
  their schedule contingency). Other commitments will also
  need juggling.
Exercise #3

Background: Raima is not using the
car this weekend, but is concerned
the good friend is a fast driver. The




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friend is generous, and has done
Raima several favors for Raima,
including a recent birthday gift.
Time: 3 minutes
Use….Competition
 When quick, decisive action is vital (in
  emergencies); on important issues.
 Where unpopular actions need implementing (in




                                                           Gihan Aboueleish
                                                          Negotiation Skills -
  cost cutting, enforcing unpopular rules, discipline).
 On issues vital to the organization’s welfare.
 When you know you’re right.
 Against people who take advantage of
  noncompetitive behavior.
Use …..Collaboration
   To find an integrative solution when both sets of
    concerns are too important to be compromised.
   When your objective is to learn.
   To merge insights from people with different




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    perspectives.
   To gain commitment by incorporating concerns into
    a consensus.
   To work through feelings that have interfered with a
    relationship.
Use….Avoidance
 When an issue is trivial, or more important issues are pressing.
 When you perceive no chance of satisfying your concerns.
 When potential disruption outweighs the benefits of resolution.
 To let people cool down and regain perspective.
 When gathering information supersedes immediate decision.
 When others can resolve the conflict effectively.




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 When issues seem tangential or symptomatic of other issues.




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Use….Accommodation ;
   When you find you’re wrong and to allow a better position to be
    heard.
   To learn, and to show your reasonableness.
   When issues are more important to others than to yourself and to
    satisfy others and maintain cooperation.
   To build social credits for later issues.




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   To minimize loss when outmatched and losing.
   When harmony and stability are especially important.
   To allow employees to develop by learning from mistakes.
Use…compromise;
 When goals are important but not worth the effort of potential
  disruption of more assertive approaches.
 When opponents with equal power are committed to mutually
  exclusive goals.
 To achieve temporary settlements to complex issues.




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 To arrive at expedient solutions under time pressure.
 As a backup when collaboration or competition is
  unsuccessful.
Negotiation Skills - Gihan
                                           Aboueleish
Understanding Your Style Of
        Negotiation
• Behaviour
• Motivation:




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• Assertive-directing, Altruistic-nurturing,
 Flexible-cohering
• Personal strengths
• Personal weaknesses
Techniques for Better Negotiation




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             Aboueleish
1) Prepare, prepare, prepare
2) Pay attention to timing
3) Leave behind your ego.




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4) Ramp up your listening skills.
5) If you don't ask, you don't get
6. Anticipate compromise
7. Offer and expect commitment
8. Don't absorb their problems
9. Stick to your principles




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10. Close with confirmation.
01- Prepare, Prepare, Prepare

 Pay attention to timing. Timing is important in
  any negotiation. Sure, you must know what




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  to ask for. But be sensitive to when you ask
  for it. There are times to press ahead, and
  times to wait. When you are looking your
  best is the time to press for what you want.
  But beware of pushing too hard and
  poisoning any long-term relationship.
02- Pay Attention To Timing
 • Pay attention to timing. Timing is important in
   any negotiation. Sure, you must know what
   to ask for. But be sensitive to when you ask
   for it. There are times to press ahead, and




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   times to wait. When you are looking your
   best is the time to press for what you want.
   But beware of pushing too hard and
   poisoning any long-term relationship.
03- Leave Behind Your Ego.
 • Leave behind your ego. The best
   negotiators either don't care or don't
   show they care about who gets credit
   for a successful deal. Their talent is in




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   making the other side feel like the final
   agreement was all their idea.
04 - Ramp Up Your Listening Skills.
 Ramp up your listening skills. The best negotiators are
  often quiet listeners who patiently let others have the
  floor while they make their case. They never interrupt.
  Encourage the other side to talk first. That helps set up
  one of negotiation's oldest maxims: Whoever mentions




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  numbers first, loses. While that's not always true, it's
  generally better to sit tight and let the other side go
  first. Even if they don't mention numbers, it gives you a
  chance to ask what they are thinking.
- 05if You Don't Ask, You Don't Get
 • If you don't ask, you don't get. Another tenet of
   negotiating is "Go high, or go home." As part
   of your preparation, define your highest
   justifiable price. As long as you can argue




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   convincingly, don't be afraid to aim high. But
   no ultimatums, please. Take-it-or-leave-it
   offers are usually out of place.
06- Anticipate Compromise.

• Anticipate compromise. You should expect to
  make concessions and plan what they might
  be. Of course, the other side is thinking the




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  same, so never take their first offer. Even if
  it's better than you'd hoped for, practice your
  best look of disappointment and politely
  decline. You never know what else you can
  get.
07- Offer And Expect Commitment.

• Offer and expect commitment. The
  glue that keeps deals from




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  unravelling is an unshakable
  commitment to deliver. You should
  offer this comfort level to others.
  Likewise, avoid deals where the
  other side does not demonstrate
  commitment.
Don't Absorb Their Problems.
 • Don't absorb their problems. In most
   negotiations, you will hear all of the other side's
   problems and reasons they can't give you what




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   you want. They want their problems to become
   yours, but don't let them. Instead, deal with each
   as they come up and try to solve them. If their
   "budget" is too low, for example, maybe there
   are other places that money could come from.
Stick To Your Principles.

• Stick to your principles. As an
  individual and a business owner, you
  likely have a set of guiding principles




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  — values that you just won't
  compromise. If you find negotiations
  crossing those boundaries, it might be
  a deal you can live without.
Close with confirmation.

• Close with confirmation. At the close of
  any meeting — even if no final deal is
  struck — recap the points covered and




                                             Negotiation Skills - Gihan
                                                          Aboueleish
  any areas of agreement. Make sure
  everyone confirms. Follow-up with
  appropriate letters or emails. Do not
  leave behind loose ends.
Hand
             ling
                     Difficu
                            lt N
                                ego
                                   tia
                                      to
                                        rs




Negotiation Skills - Gihan
             Aboueleish
• Speak more quietly than them.
• Have more space in between your words than them.
• If they interrupt, pause for a few seconds after they finish.
• Be critical of foul language.




                                                                  Negotiation Skills - Gihan
                                                                               Aboueleish
• Do not rise to a bait if they attack or blame you.
• Ignore all threats.
Handling Emotions
  Emotional Challenges        Recommended Response
  Anger/exasperation          Allow venting. Probe for why

  Insulted                    What wouldn’t be insulting?
                              Focus on issues




                                                             Negotiation Skills - Gihan
                                                                          Aboueleish
  Guilt
                              Re-focus
   False flattery
Tips:
• Don’t lose your cool .
• Try to defuse with acknowledgement, empathy, patience,
  impartiality.
• Consider dealing with less emotional issues first
• Know your own “Hot Buttons”
• Practice
Know Your Hot Buttons
Exercise: List the last 3 times you felt someone pressed
your “Hot Button”.
Subject     Who pushed Why did you feel Next time I




                                                       Negotiation Skills - Gihan
discussed   your buttons? manipulated?  will…..
 Reachnegotiate?
So why an agreement
 Get the better of the opposition
 Compromise




                                     Negotiation Skills - Gihan
                                                  Aboueleish
 Settle a dispute
 Make a point
Negotiation Styles
 1. competitive

                     2. collaborative




                                        Negotiation Skills - Gihan
                                                     Aboueleish
3. compromising
                         4. avoiding

      5. accommodating
Key steps                                         • In writing
                                                       • Speed
                                                       • Enforce
   Communicate clearly
   Confidence
   Flexible                           Close deal
                                Control

• Build expectations
                          Strategy
 Who with                                                    Which style?
 Homework
                   Preparation                                Easy first
 Objectives                                                  Manage agenda
91Benefits to both       Negotiation Skills - Gihan
                          Aboueleish
Negotiation Strategy

                  High

                                     BARGAININ
                                                     EMOTION
                                        G
       [Ability to modify others]




                                                                        Gihan Aboueleish
                                                                       Negotiation Skills -
              INTITUTION




                                     COMPROMI
                                                    LOGICALLY
                                        SE


                    Low

                                    Low                         High
                                                 INFLUENC
                                                        E
Bargaining Zone Model Of Negotiation


 Your initial   Your target
                                   Your resistance
 point          point
                                   point




                                                              Gihan Aboueleish
                                                             Negotiation Skills -
          Area of
          potential
          agreement


                      Opponent’s   Opponent’s     Opponent’s
                      resistance   target point   initial point
                      point
Example




Negotiation Skills - Gihan
             Aboueleish
Negotiating Behaviour
    Gavin Kennedy describes 3 types of
  behaviour that we can display and encounter
  when in a negotiating situation.




                                                Negotiation Skills - Gihan
                                                             Aboueleish
           RED          BLUE        PURPLE
RED Behaviour
   Manipulation
   Aggressive




                                                     Negotiation Skills - Gihan
                                                                  Aboueleish
   Intimidation
   Exploitation
   Always seeking the best for you
   No concern for person you are negotiating with
   Taking
BLUE Behaviour
• Win win approach
• Cooperation
• Trusting




                     Negotiation Skills - Gihan
                                  Aboueleish
• Pacifying
• Relational
• Giving
PURPLE Behaviour
• Give me some of what I want (red)
• I’ll give you some of what you want (blue)
• Deal with people as they are not how you think they are
• Good intentions




                                                                              Negotiation Skills - Gihan
                                                                                           Aboueleish
• Two way exchange
• Purple behaviour incites purple behaviour
• Tit for tat strategies
• Open
• People know where they stand
• Determination to solve problems by both sets of criteria of the merits of
  the case and/or the terms of a negotiated exchange
Third-party Negotiations

1. Investigation
2. Mediation




                           Negotiation Skills - Gihan
                                        Aboueleish
3. Conciliation
4. Arbitration
5. Adjudication
Effective Negotiation
• Successful relationships are built on communication and
  trust.




                                                             Negotiation Skills - Gihan
• Lack of trust leads to “win-lose” or “lose-lose” result.




                                                                          Aboueleish
• Negotiation is one way of creating trust – or deciding
  whether trust is justified.
  • Example: “The Negotiator’s Dilemma” a classic risk
    strategy game
The Negotiator’s Dilemma
                   B Cooperates            B Competes


A Cooperates     Both cooperates          A Cooperates
                 Both have a good         B Competes
                     outcome




                                                              Negotiation Skills - Gihan
                                                                           Aboueleish
                                           A has terrible
                                             outcome,
                                        B has great outcome

A Competes        A Competes              Both competes
                  B Cooperates          Both have mediocre
                                              outcome
               A has great outcome,
               B has terrible outcome
Negotiation Tips;

1) Do not underestimate your power.
2) Do not assume that other party knows your
   weaknesses.




                                                  Gihan Aboueleish
                                                 Negotiation Skills -
3) It is a mistake to assume you know what the
   other party wants.
4) Never accept the 1st offer.
5) Don’t fear to negotiate.
Skills For Effective Negotiation
  • Preparation and planning skill
  • Knowledge of the subject
  • Ability to think clearly and rapidly under




                                                    Negotiation Skills - Gihan
                                                                 Aboueleish
    pressure and uncertainty
  • Ability to express thoughts verbally
  • Listening skill
  • Patience
  • General problem-solving and analytical skills
Preparation
1.   Firstly understand what it is you want?
2.   What do you think your opponent wants?
3.   What would happen if you didn’t do a deal?
4.   Do you know your stakeholders?




                                                                                Negotiation Skills - Gihan
                                                                                             Aboueleish
5.   Do you know who the decision maker is? Are you negotiating with them? If
     not what affect does that have?
6.   Are there concessions you can build into the negotiation?
7.   Know your product / service inside out? What standards are there in the
     market place?
8.   Know your price points?
9.   What issues do you think you’ll need to overcome?
10. Prioritize!
11. Practice!
Information Sharing
1.   Company activities and market position
2.   Opinion on entry points
3.   What elements are clearly off the table or not up for




                                                             Negotiation Skills - Gihan
                                                                          Aboueleish
     discussion and why
4.   Opponents attitude and commitment
5.   Motivational factors (“I want this price because…”)
6.   Stakeholders and importantly decision makers
7.   Problems, issues or risk
8.   An order/structure for proceedings
BARGAINING
Bargaining has two basic parts




                                 Negotiation Skills - Gihan
 Debating




                                              Aboueleish
 Proposing
DEBATING
• To be successful in negotiation you must build relationships and trust
• You need to avoid the following-
  • Point scoring – “Your company is always late with deliveries so I’m not paying that!”
  • Insults – “If you insist on that price you must be stupid”
  • Provocation – “Keep talking like that and see where it gets you!”




                                                                                             Gihan Aboueleish
                                                                                            Negotiation Skills -
  • Threats – “You just wait until your other customers hear about this”

• Instead try-
  • Building a relationship – It will make your negotiation much easier
  • Sticking to an agreed agenda – This will help avoid destructive discussions.
  • Share information and ask questions – What do you want – what do they want
  • Try and be positive and listen – What do they want and why – look for areas of
    win/win or easy compromise.
PROPOSING
• When proposing your offer consider
  • Consider both your entry and exit – This could include all or
    some of your wants, and your opponents entry and exit points




                                                                        Negotiation Skills - Gihan
                                                                                     Aboueleish
  • Consider how you will phrase your proposal
  • Consider what will motivate your opponent into making the
    deal
  • Consider the likely response – Think about the “if I do that then
    they will do that”
  • Are there alternative proposals? – Once an initial response has
    been made are you happy or do you need to offer up something
    new.
  • Remember the key thing is to propose – don’t argue and try
    and remain realistic, and invite a response from your opponent.
Finalizing The Deal
• So when closing the deal consider
  • Do you have what you want?
  • Do they have what they want?




                                                                          Negotiation Skills - Gihan
                                                                                       Aboueleish
  • Can you signify to your opponent that if certain terms were met
    the deal could be done.
  • Do you both understand the potential non deal by not closing or
    reaching agreement?
  • Document the agreement quickly and share it with your opponent
    and get agreement on the details of the deal.
  • Do not offer further concessions!
  • Agree the measures that will be applied to record fulfilment of the
    deal.
Cabot Circus - UK




Negotiation Skills - Gihan
             Aboueleish
Negotiation Skills - Gihan
             Aboueleish
Negotiation and Relationships



 Global marketplace




                                           Negotiation Skills - Gihan
                                                        Aboueleish
     Long-lasting business relationships
      Trust and integrity
        Conflicts with short-term needs

Deals from position of strength
Preparation




Give and take
                     Trust and
                     integrity




                                 Negotiation Skills - Gihan
                                              Aboueleish
Shared values



Steady dialogue



Creative solutions
Your experiences?   Negotiating in Dubai

Developers
Contractors




                                           Negotiation Skills - Gihan
                                                        Aboueleish
Sub-contractors
Consultants
Suppliers
Local government
Summary

 Promises – keeping them is hard
 Builds reputation




                                    Negotiation Skills - Gihan
                                                 Aboueleish
 More Trust = More Wins
 Never compromise on integrity
 Success is measure over time…
People always give the
most consideration, the
best deals, to those people




                              Negotiation Skills - Gihan
                                           Aboueleish
they like and TRUST
Thank you



Negotiation Skills - Gihan
             Aboueleish

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Mastering negotiation skills pdf

  • 1. Presented By: TARINI- 41002 SACHIN- 41001 Prepared By : Gihan Aboueleish
  • 2. Contents • What is Negotiation? • Features of Negotiation • Why Negotiate ? • Types of Negotiation Negotiation Skills - Gihan • Distributive Vs Integrative Negotiation • Negotiation Process • BATNA • Bargaining Zone Model of Negotiation • Negotiating Behavior • Issues in Negotiation • Third party Negotiations • How to achieve an Effective Negotiation • Negotiation Tips
  • 3. “Change the way you look at things, and the things you Negotiation Skills - Gihan look at change ”
  • 4. You can’t sail anywhere until you learn which way the wind wants to blow Negotiation Skills - Gihan Aboueleish
  • 5. What Is Negotiation ? • The word "negotiation" originated from the Latin expression, "negotiatus", which means "to carry on business". • The process of conferring to arrive at an agreement between Negotiation Skills - Gihan different parties, each with their own interests and preferences. Aboueleish • “A give-and-take decision-making process involving interdependent parties with different preferences.”
  • 6. Defined :  Negotiating is the process of communicating back and forth, for the purpose of reaching a joint agreement about differing needs or ideas.  It is a collection of behaviours that involves Negotiation Skills - Gihan Aboueleish communication, sales, marketing, psychology, sociology, assertiveness and conflict resolution.  A negotiator may be a buyer or seller, a customer or supplier, a boss or employee, a business partner, a diplomat or a civil servant. On a more personal level negotiation takes place between spouse’s friends, parents or children.
  • 7. Features Of Negotiation • Minimum two parties • Predetermined goals Negotiation Skills - Gihan Aboueleish • Expecting an outcome • Resolution and Consensus • Parties willing to modify their positions • Parties should understand the purpose of negotiation
  • 8. Why Do We Negotiate ? • To reach an agreement • To beat the opposition Negotiation Skills - Gihan • To compromise Aboueleish • To settle an argument • To make a point
  • 9. Types Of Negotiation  Distributive Negotiation  Integrative Negotiation Negotiation Skills - Gihan Aboueleish
  • 10. Distributive Negotiation  Parties compete over the distribution of a fixed sum of value. The key question in a distributed negotiation is, “Who will claim the most value?” A gain by one side is made at the expanse of other. Negotiation Skills - Gihan Aboueleish  The Seller’s goal is to negotiate as high a price as possible; the Buyer’s goal is to negotiate as low a price as possible.  Thus, the deal is confined: there are not much opportunities for creativity or for enlarging the scope of the negotiation.
  • 11. Integrative Negotiation  In Integrative Negotiation, parties cooperate to achieve maximize benefits by integrating their interests into an agreement. This is also known as a win-win negotiation. • The key questions is: “How can the resource best be utilized?” Negotiation Skills - Gihan Aboueleish  Integrative negotiations tend to occur in following situations: • Structuring of complex long-term Strategic Relationships or other collaborations. • When the deal involves many financial and non-financial terms.  In an integrative negotiation,, there are many items and issues to be negotiated, and the goal of each side is to “create” as much value as possible for itself and the other side.
  • 12. Distributive Versus Integrative Negotiations Characteristic Distributive Integrative Outcome Win-lose Win-win Joint and individual Negotiation Skills - Gihan Aboueleish Motivation Individual gain gain Different but not Interests Opposed always Opposite Relationship Short-term Longer or Short-term Issues involved Single Multiple Ability to make Not Flexible Flexible trade-offs Solution Not creative Creative
  • 13. Negotiation Process PREPARATION Negotiation Skills - Gihan Aboueleish INFORMATION SHARING BARGAINING FINALIZING THE DEAL
  • 14. BATNA BATNA is ; Best Negotiation Skills - Gihan Alternative Aboueleish To Negotiated Agreement
  • 15. Why BATNAS Matter • BATNAs tell you when to accept and when to reject an agreement Negotiation Skills - Gihan Aboueleish • When a proposal is better than your BATNA: ACCEPT IT • When a proposal is worse than your BATNA: REJECT IT
  • 16. Negotiation: A Counter-intuitive Process  Title comes from remarks made by participants at some of my negotiation workshops “that’s the opposite of what I do” “I know I should do that, but I find myself doing exactly the opposite” “Its counter-intuitive” Negotiation Skills - Gihan Aboueleish  What are people saying ? • They recognize the prudence of a particular strategy • But they find it difficult to implement it • Their natural inclination is to do the opposite of what they recognise is the prudent strategy
  • 17. Intuitive – Counter-intuitive What are  some of the intuitive things we do in a negotiation  the counter-intuitive thing we might consider as an alternative ? Automatic gear Shift into manual Focus on Positions Focus on interests Dive into the negotiation Defer the negotiation to a time of our own choosing, gather information first When our proposals are rejected, Ask why our proposal doesn’t work, and justify and defend them gather information When a proposal is made to us Instead of rejecting, ask why their proposal that is unacceptable, rejection is important, and gather information 17
  • 18. Basic Principles Common To All Forms Of Negotiation  There are minimum 2 parties involved in the negotiation process. There exists some common interest, either in the subject Negotiation Skills - Gihan Aboueleish matter of the negotiation or in the negotiating context, that puts or keeps the parties in contact.  Though the parties have the same degree of interest, they initially start with different opinions and objectives which hinders the outcome in general.
  • 19.  In the beginning, parties consider that negotiation is a better way of trying to solve their differences. Negotiation Skills - Gihan Aboueleish  Each party is under an impression that there is a possibility of persuading the other party to modify their original position, as initially parties feel that they shall maintain their opening position and persuade the other to change.
  • 20.  During the process, the ideal outcome proves unattainable but parties retain their hope of an Negotiation Skills - Gihan Aboueleish acceptable final agreement.  Each party has some influence or power – real or assumed – over the other’s ability to act.  The process of negotiation is that of interaction between people – usually this is direct and verbal interchange.
  • 21. Characteristics Of An Effective Negotiator  He should be a good learner and observer. Negotiation Skills - Gihan Aboueleish  Should know the body language of the people at the negotiation process.  Should be open and flexible and yet firm.  Exercise great patience, coolness and maturity.  Should possess leadership qualities.
  • 22. • Should control emotions and not show his weaknesses. • Should bargain from the position of strength. • Should know and anticipate the pros and cons of his each move and its repercussions. Negotiation Skills - Gihan Aboueleish • Should know how to create the momentum for the negotiations and must know when to exit and where to exit by closing the talks successfully.
  • 23. • Should build trust and confidence. • Should be confident and optimist. • Should have clear cut goals and objectives. • If necessary, he should provide a face saving Negotiation Skills - Gihan Aboueleish formula for his counter party. • Should be able to grasp the situation from many dimensions. • Should know human psychology and face reading
  • 24. • Should not be a doubting Thomas. • Should plan and prepare thoroughly with relevant data and information to avoid blank mind in the process. Negotiation Skills - Gihan Aboueleish • Should radiate energy and enthusiasm and must be in a position to empathize with his opponents. • Should be a patient listener.
  • 25. How To Develop These Skills And Use Them Effectively ? • what negotiation means and the various forms it can take that negotiating, in the fullest sense, means forging long-term Negotiation Skills - Gihan relationships the role that the individual Aboueleish personalities play in negotiating that you must take a variety of approaches to negotiation, since no single set of principles will suffice in all circumstances
  • 26. Negotiation Skills Style Test Negotiation Skills - Gihan Aboueleish
  • 27. Negotiation Skills - Gihan Aboueleish Types Of Negotiation In Organizations
  • 28. Managerial Negotiations Types Parties Involved Examples 1. Different levels of 1. Negotiation for Day-to-day/ Management pay, terms and Negotiation Skills - Gihan Aboueleish Managerial working Negotiations 2. In between colleagues conditions. 3. Trade unions 2. Description of the job and 4. Legal advisers fixation of responsibility. 3. Increasing productivity.
  • 29. Commercial Negotiations Types Parties Involved Examples Negotiation Skills - Gihan Aboueleish Commercial 1. Management 1. Striking a contract with Negotiations 2. Suppliers the customer. 3. Government 2. Negotiations for the 4. Customers price and quality of 5. Trade unions goods to be 6. Legal advisors purchased. 7. Public 3. Negotiations with financial institutions as regarding the availability of capital
  • 30. Legal Negotiations Types Parties Involved Examples 1.Government 1. Adhering to Negotiation Skills - Gihan Aboueleish Legal the laws of the 2.Management Negotiations local and 3.Customers national government.
  • 31. How To Plan Your Negotiation Agenda Negotiation Skills - Gihan Aboueleish
  • 32. Preparing For A Successful Negotiation…  Depending on a scale of disagreement, the level of preparation might be appropriate for conducting the successful negotiation. Negotiation Skills - Gihan Aboueleish  For a small disagreements, excessive preparation could be counter-productive because it do takes time which is better focused in reaching the team goals.
  • 33. If the major disagreement needed to be resolved, preparing thoroughly for that is required, and worthwhile. Think through following points before you could start negotiating. Negotiation Skills - Gihan Aboueleish • Goals: What you want to get out from the negotiation? What do you expect from the other person?
  • 34.  What you and the other person have which you can trade? Negotiation Skills - Gihan Aboueleish • What do you and the other person have so that the other wants it? • What might you both be prepared to give away?
  • 35. • Alternatives: • If you do not reach the agreement with him/her, what alternatives you have? • Are these things good or bad alternatives? Gihan Aboueleish Negotiation Skills - • How much it matters if you do not reach the agreement? • Will the failure to reach the agreement cut out future opportunities? • What alternatives may the other person have?
  • 36. • The relationship: • What is a history of relationship? • Can or should this history impact negotiation? Negotiation Skills - Gihan Aboueleish • Will there be any of the hidden issues that might influence negotiation? • How you will handle these?
  • 37. • Expected outcomes: • What outcome would people be expecting from the Negotiation Skills - Gihan Aboueleish negotiation? • What was the outcome in the past, and what precedents been set?
  • 38. • The Consequences: • What are the consequences of winning or losing this negotiation by you? • What are the consequences of winning Negotiation Skills - Gihan Aboueleish or loosing by the other person?
  • 39. • Power: • Who has the power in the relationship? • Who do controls the resources? • Who stands to lose most if agreement is Negotiation Skills - Gihan Aboueleish not been reached? • What power does other person have to deliver which you do hope for?
  • 40. • Possible Solutions: • Based on all considerations, what Negotiation Skills - Gihan Aboueleish possible compromises might be there?
  • 41. Negotiating And Long-term Relationships Good negotiators are the people who understand Negotiation Skills - Gihan Aboueleish • how to build key relationships • how to identify what people need • how to give them what they need and • how to get what they want in return, all in a way that seems effortless.
  • 42. Negotiating And Individual Personalities  Autocratic managers typically hold the view that they are going to get what they want when they interact with subordinates, because their inherent Negotiation Skills - Gihan Aboueleish authority precludes the need to negotiate.  These managers do not realize that, in the process of handing out orders, they are engaged in a kind of one-sided negotiation that can antagonize others, with the result that the tasks they wish to see completed may be carried out improperly or not at all.
  • 43. The Accommodating manager is more concerned with what others want than with their own needs. Negotiation Skills - Gihan Aboueleish In order to avoid conflict, they do not negotiate at all and often end up overriding their own interests.
  • 44. B.A.T.N.A Negotiation Skills - Gihan Aboueleish
  • 45. The Negotiation Process BATNA The Best Alternative To a Negotiation Skills - Gihan Aboueleish Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.
  • 46. Your “BATNA “ is the only standard which can protect you both from accepting terms that are too unfavourable and from rejecting terms it Negotiation Skills - Gihan Aboueleish would be in your interest to accept.” In the simplest terms, if the proposed agreement is better than your “BATNA”, then you should accept it. If the agreement is not better than your “BATNA” , then you should reopen negotiations.
  • 47. Where Do Use This Skill? • Everything is negotiated. • Family and personal • “ Where should we go for dinner?” • “ Can I borrow the car?” Negotiation Skills - Gihan Aboueleish • Academic research • “ Fund my project.” • “ Publish my paper.” • Business ventures • “ I want a raise.” • “ Invest in my company.” • “ Pay me a license fee or I’ll sue you.”
  • 48. Determining Your BATNA BATNAs are not always readily apparent. Fisher and Ury outline a simple process for determining your BATNA: Negotiation Skills - Gihan Aboueleish • develop a list of actions you might conceivably take if no agreement is reached; • improve some of the more promising ideas and convert them into practical options; and • select, tentatively, the one option that seems best.
  • 49. A persons go for car purchase. [To negotiate with showroom sales man for lesser price] Negotiation Skills - Gihan Aboueleish ple  The car owner is not am agreeing for the lesser A Ex price. TN  Than customer can BA ask for Radial tires[best alternative] with any increase in price further.
  • 50. CASE STUDY Negotiation Skills - Gihan Aboueleish
  • 51. Case Study – Application 01 • Highly Brill Leisure Centre has hired you to help them with their marketing decision making. Perform a SWOT analysis on Highly Negotiation Skills - Gihan Aboueleish Brill Leisure Centre, based upon the following issues:
  • 52. CASE STUDY – Application 02 A community discovers that its water is being polluted by the discharges of a nearby factory. Negotiation Skills - Gihan Community leaders first attempt to negotiate a Aboueleish clean-up plan with the company, but the business refuses to voluntarily agree on a plan of action that the community is satisfied with.
  • 53. Issues In Negotiation The Role of Mood & Personality Traits in Negotiation; • Positive moods positively affect negotiations • Traits do not appear to have a significantly direct Negotiation Skills - Gihan Aboueleish effect on the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiation effectiveness)
  • 54. Gender Differences In Negotiations; • Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. Negotiation Skills - Gihan Aboueleish • Men and women with similar power bases use the same negotiating styles. • Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s.
  • 55. The Importance of BATNAs Once parties establish a BATNA, they must then compare the costs and benefits of the BATNA to all of the Negotiation Skills - Gihan Aboueleish settlement options on the table. Ask, "What's it going to cost you if you don't?"
  • 57. • Most of the negotiation literature focuses on two strategies, although they call them by different names. Negotiation Skills - Gihan Aboueleish • One strategy is interest-based(or integrative, or cooperative) bargaining, while the other is positional (or distributive or competitive) bargaining.
  • 58. Interest-based Bargaining /Win-win Bargaining • Integrative bargaining in which parties collaborate to find a “win-win" solution to their dispute. • This strategy focuses on developing mutually beneficial Negotiation Skills - Gihan Aboueleish agreements based on the interests of the disputants. • Interests include the needs, desires, concerns, and fears important to each side.
  • 59. Positional Bargaining Positional bargaining is one that involves holding on to a fixed idea, or position, of Negotiation Skills - Gihan Aboueleish what you want and arguing for it and it alone, regardless of any underlying interests.
  • 60. Negotiation Skills - Gihan Aboueleish
  • 61. Negotiation Skills Style Test Negotiation Skills - Gihan Aboueleish
  • 62. Exercise #1 Roles : Rita, a 15 year old girl. The Observer becomes Rita’s parent. Others are Observers to record use/abuse of “win/win” techniques. Negotiation Skills - Gihan Aboueleish Background: Rita is calling home from a payphone on Hwy 401 to tell her parent she is hitch-hiking to Hollywood to be a movie star. She has no money, is a little afraid, and secretly wants to go to drama school. The parent is worried about Rita being out after curfew. Parent picks up the ‘phone, and has 3 minutes to effect a “win-win” approach before the payphone times out.
  • 63. Exercises #2 Background: Suresh has a Programmer off sick, and wants to negotiate two weeks of Kunal’s time to work on the Company’s most important project immediately, because Kunal is the best programmer, and knows the tasks. Negotiation Skills - Gihan Aboueleish Delays may affect everyone’s bonus. Kunal’s Manager is concerned the loss of Kunal will mean he will not be able to complete tasks on another project their department is committed to deliver (requiring one week of work in the next 3 weeks), because Suresh has a reputation of over-utilizing resources (and padding their schedule contingency). Other commitments will also need juggling.
  • 64. Exercise #3 Background: Raima is not using the car this weekend, but is concerned the good friend is a fast driver. The Negotiation Skills - Gihan Aboueleish friend is generous, and has done Raima several favors for Raima, including a recent birthday gift. Time: 3 minutes
  • 65. Use….Competition  When quick, decisive action is vital (in emergencies); on important issues.  Where unpopular actions need implementing (in Gihan Aboueleish Negotiation Skills - cost cutting, enforcing unpopular rules, discipline).  On issues vital to the organization’s welfare.  When you know you’re right.  Against people who take advantage of noncompetitive behavior.
  • 66. Use …..Collaboration  To find an integrative solution when both sets of concerns are too important to be compromised.  When your objective is to learn.  To merge insights from people with different Negotiation Skills - Gihan Aboueleish perspectives.  To gain commitment by incorporating concerns into a consensus.  To work through feelings that have interfered with a relationship.
  • 67. Use….Avoidance  When an issue is trivial, or more important issues are pressing.  When you perceive no chance of satisfying your concerns.  When potential disruption outweighs the benefits of resolution.  To let people cool down and regain perspective.  When gathering information supersedes immediate decision.  When others can resolve the conflict effectively. Negotiation Skills - Gihan  When issues seem tangential or symptomatic of other issues. Aboueleish
  • 68. Use….Accommodation ;  When you find you’re wrong and to allow a better position to be heard.  To learn, and to show your reasonableness.  When issues are more important to others than to yourself and to satisfy others and maintain cooperation.  To build social credits for later issues. Negotiation Skills - Gihan Aboueleish  To minimize loss when outmatched and losing.  When harmony and stability are especially important.  To allow employees to develop by learning from mistakes.
  • 69. Use…compromise;  When goals are important but not worth the effort of potential disruption of more assertive approaches.  When opponents with equal power are committed to mutually exclusive goals.  To achieve temporary settlements to complex issues. Negotiation Skills - Gihan Aboueleish  To arrive at expedient solutions under time pressure.  As a backup when collaboration or competition is unsuccessful.
  • 70. Negotiation Skills - Gihan Aboueleish Understanding Your Style Of Negotiation
  • 71. • Behaviour • Motivation: Negotiation Skills - Gihan Aboueleish • Assertive-directing, Altruistic-nurturing, Flexible-cohering • Personal strengths • Personal weaknesses
  • 72. Techniques for Better Negotiation Negotiation Skills - Gihan Aboueleish
  • 73. 1) Prepare, prepare, prepare 2) Pay attention to timing 3) Leave behind your ego. Negotiation Skills - Gihan Aboueleish 4) Ramp up your listening skills. 5) If you don't ask, you don't get
  • 74. 6. Anticipate compromise 7. Offer and expect commitment 8. Don't absorb their problems 9. Stick to your principles Negotiation Skills - Gihan Aboueleish 10. Close with confirmation.
  • 75. 01- Prepare, Prepare, Prepare  Pay attention to timing. Timing is important in any negotiation. Sure, you must know what Negotiation Skills - Gihan Aboueleish to ask for. But be sensitive to when you ask for it. There are times to press ahead, and times to wait. When you are looking your best is the time to press for what you want. But beware of pushing too hard and poisoning any long-term relationship.
  • 76. 02- Pay Attention To Timing • Pay attention to timing. Timing is important in any negotiation. Sure, you must know what to ask for. But be sensitive to when you ask for it. There are times to press ahead, and Negotiation Skills - Gihan Aboueleish times to wait. When you are looking your best is the time to press for what you want. But beware of pushing too hard and poisoning any long-term relationship.
  • 77. 03- Leave Behind Your Ego. • Leave behind your ego. The best negotiators either don't care or don't show they care about who gets credit for a successful deal. Their talent is in Negotiation Skills - Gihan Aboueleish making the other side feel like the final agreement was all their idea.
  • 78. 04 - Ramp Up Your Listening Skills.  Ramp up your listening skills. The best negotiators are often quiet listeners who patiently let others have the floor while they make their case. They never interrupt. Encourage the other side to talk first. That helps set up one of negotiation's oldest maxims: Whoever mentions Negotiation Skills - Gihan Aboueleish numbers first, loses. While that's not always true, it's generally better to sit tight and let the other side go first. Even if they don't mention numbers, it gives you a chance to ask what they are thinking.
  • 79. - 05if You Don't Ask, You Don't Get • If you don't ask, you don't get. Another tenet of negotiating is "Go high, or go home." As part of your preparation, define your highest justifiable price. As long as you can argue Negotiation Skills - Gihan Aboueleish convincingly, don't be afraid to aim high. But no ultimatums, please. Take-it-or-leave-it offers are usually out of place.
  • 80. 06- Anticipate Compromise. • Anticipate compromise. You should expect to make concessions and plan what they might be. Of course, the other side is thinking the Negotiation Skills - Gihan Aboueleish same, so never take their first offer. Even if it's better than you'd hoped for, practice your best look of disappointment and politely decline. You never know what else you can get.
  • 81. 07- Offer And Expect Commitment. • Offer and expect commitment. The glue that keeps deals from Negotiation Skills - Gihan Aboueleish unravelling is an unshakable commitment to deliver. You should offer this comfort level to others. Likewise, avoid deals where the other side does not demonstrate commitment.
  • 82. Don't Absorb Their Problems. • Don't absorb their problems. In most negotiations, you will hear all of the other side's problems and reasons they can't give you what Negotiation Skills - Gihan Aboueleish you want. They want their problems to become yours, but don't let them. Instead, deal with each as they come up and try to solve them. If their "budget" is too low, for example, maybe there are other places that money could come from.
  • 83. Stick To Your Principles. • Stick to your principles. As an individual and a business owner, you likely have a set of guiding principles Negotiation Skills - Gihan Aboueleish — values that you just won't compromise. If you find negotiations crossing those boundaries, it might be a deal you can live without.
  • 84. Close with confirmation. • Close with confirmation. At the close of any meeting — even if no final deal is struck — recap the points covered and Negotiation Skills - Gihan Aboueleish any areas of agreement. Make sure everyone confirms. Follow-up with appropriate letters or emails. Do not leave behind loose ends.
  • 85. Hand ling Difficu lt N ego tia to rs Negotiation Skills - Gihan Aboueleish
  • 86. • Speak more quietly than them. • Have more space in between your words than them. • If they interrupt, pause for a few seconds after they finish. • Be critical of foul language. Negotiation Skills - Gihan Aboueleish • Do not rise to a bait if they attack or blame you. • Ignore all threats.
  • 87. Handling Emotions Emotional Challenges Recommended Response Anger/exasperation Allow venting. Probe for why Insulted What wouldn’t be insulting? Focus on issues Negotiation Skills - Gihan Aboueleish Guilt Re-focus False flattery Tips: • Don’t lose your cool . • Try to defuse with acknowledgement, empathy, patience, impartiality. • Consider dealing with less emotional issues first • Know your own “Hot Buttons” • Practice
  • 88. Know Your Hot Buttons Exercise: List the last 3 times you felt someone pressed your “Hot Button”. Subject Who pushed Why did you feel Next time I Negotiation Skills - Gihan discussed your buttons? manipulated? will…..
  • 89.  Reachnegotiate? So why an agreement  Get the better of the opposition  Compromise Negotiation Skills - Gihan Aboueleish  Settle a dispute  Make a point
  • 90. Negotiation Styles 1. competitive 2. collaborative Negotiation Skills - Gihan Aboueleish 3. compromising 4. avoiding 5. accommodating
  • 91. Key steps • In writing • Speed • Enforce  Communicate clearly  Confidence  Flexible Close deal Control • Build expectations Strategy  Who with  Which style?  Homework Preparation  Easy first  Objectives  Manage agenda 91Benefits to both Negotiation Skills - Gihan Aboueleish
  • 92. Negotiation Strategy High BARGAININ EMOTION G [Ability to modify others] Gihan Aboueleish Negotiation Skills - INTITUTION COMPROMI LOGICALLY SE Low Low High INFLUENC E
  • 93. Bargaining Zone Model Of Negotiation Your initial Your target Your resistance point point point Gihan Aboueleish Negotiation Skills - Area of potential agreement Opponent’s Opponent’s Opponent’s resistance target point initial point point
  • 94. Example Negotiation Skills - Gihan Aboueleish
  • 95. Negotiating Behaviour Gavin Kennedy describes 3 types of behaviour that we can display and encounter when in a negotiating situation. Negotiation Skills - Gihan Aboueleish RED BLUE PURPLE
  • 96. RED Behaviour  Manipulation  Aggressive Negotiation Skills - Gihan Aboueleish  Intimidation  Exploitation  Always seeking the best for you  No concern for person you are negotiating with  Taking
  • 97. BLUE Behaviour • Win win approach • Cooperation • Trusting Negotiation Skills - Gihan Aboueleish • Pacifying • Relational • Giving
  • 98. PURPLE Behaviour • Give me some of what I want (red) • I’ll give you some of what you want (blue) • Deal with people as they are not how you think they are • Good intentions Negotiation Skills - Gihan Aboueleish • Two way exchange • Purple behaviour incites purple behaviour • Tit for tat strategies • Open • People know where they stand • Determination to solve problems by both sets of criteria of the merits of the case and/or the terms of a negotiated exchange
  • 99. Third-party Negotiations 1. Investigation 2. Mediation Negotiation Skills - Gihan Aboueleish 3. Conciliation 4. Arbitration 5. Adjudication
  • 100. Effective Negotiation • Successful relationships are built on communication and trust. Negotiation Skills - Gihan • Lack of trust leads to “win-lose” or “lose-lose” result. Aboueleish • Negotiation is one way of creating trust – or deciding whether trust is justified. • Example: “The Negotiator’s Dilemma” a classic risk strategy game
  • 101. The Negotiator’s Dilemma B Cooperates B Competes A Cooperates Both cooperates A Cooperates Both have a good B Competes outcome Negotiation Skills - Gihan Aboueleish A has terrible outcome, B has great outcome A Competes A Competes Both competes B Cooperates Both have mediocre outcome A has great outcome, B has terrible outcome
  • 102. Negotiation Tips; 1) Do not underestimate your power. 2) Do not assume that other party knows your weaknesses. Gihan Aboueleish Negotiation Skills - 3) It is a mistake to assume you know what the other party wants. 4) Never accept the 1st offer. 5) Don’t fear to negotiate.
  • 103. Skills For Effective Negotiation • Preparation and planning skill • Knowledge of the subject • Ability to think clearly and rapidly under Negotiation Skills - Gihan Aboueleish pressure and uncertainty • Ability to express thoughts verbally • Listening skill • Patience • General problem-solving and analytical skills
  • 104. Preparation 1. Firstly understand what it is you want? 2. What do you think your opponent wants? 3. What would happen if you didn’t do a deal? 4. Do you know your stakeholders? Negotiation Skills - Gihan Aboueleish 5. Do you know who the decision maker is? Are you negotiating with them? If not what affect does that have? 6. Are there concessions you can build into the negotiation? 7. Know your product / service inside out? What standards are there in the market place? 8. Know your price points? 9. What issues do you think you’ll need to overcome? 10. Prioritize! 11. Practice!
  • 105. Information Sharing 1. Company activities and market position 2. Opinion on entry points 3. What elements are clearly off the table or not up for Negotiation Skills - Gihan Aboueleish discussion and why 4. Opponents attitude and commitment 5. Motivational factors (“I want this price because…”) 6. Stakeholders and importantly decision makers 7. Problems, issues or risk 8. An order/structure for proceedings
  • 106. BARGAINING Bargaining has two basic parts Negotiation Skills - Gihan  Debating Aboueleish  Proposing
  • 107. DEBATING • To be successful in negotiation you must build relationships and trust • You need to avoid the following- • Point scoring – “Your company is always late with deliveries so I’m not paying that!” • Insults – “If you insist on that price you must be stupid” • Provocation – “Keep talking like that and see where it gets you!” Gihan Aboueleish Negotiation Skills - • Threats – “You just wait until your other customers hear about this” • Instead try- • Building a relationship – It will make your negotiation much easier • Sticking to an agreed agenda – This will help avoid destructive discussions. • Share information and ask questions – What do you want – what do they want • Try and be positive and listen – What do they want and why – look for areas of win/win or easy compromise.
  • 108. PROPOSING • When proposing your offer consider • Consider both your entry and exit – This could include all or some of your wants, and your opponents entry and exit points Negotiation Skills - Gihan Aboueleish • Consider how you will phrase your proposal • Consider what will motivate your opponent into making the deal • Consider the likely response – Think about the “if I do that then they will do that” • Are there alternative proposals? – Once an initial response has been made are you happy or do you need to offer up something new. • Remember the key thing is to propose – don’t argue and try and remain realistic, and invite a response from your opponent.
  • 109. Finalizing The Deal • So when closing the deal consider • Do you have what you want? • Do they have what they want? Negotiation Skills - Gihan Aboueleish • Can you signify to your opponent that if certain terms were met the deal could be done. • Do you both understand the potential non deal by not closing or reaching agreement? • Document the agreement quickly and share it with your opponent and get agreement on the details of the deal. • Do not offer further concessions! • Agree the measures that will be applied to record fulfilment of the deal.
  • 110. Cabot Circus - UK Negotiation Skills - Gihan Aboueleish
  • 111. Negotiation Skills - Gihan Aboueleish
  • 112. Negotiation and Relationships Global marketplace Negotiation Skills - Gihan Aboueleish Long-lasting business relationships Trust and integrity Conflicts with short-term needs Deals from position of strength
  • 113. Preparation Give and take Trust and integrity Negotiation Skills - Gihan Aboueleish Shared values Steady dialogue Creative solutions
  • 114. Your experiences? Negotiating in Dubai Developers Contractors Negotiation Skills - Gihan Aboueleish Sub-contractors Consultants Suppliers Local government
  • 115. Summary Promises – keeping them is hard Builds reputation Negotiation Skills - Gihan Aboueleish More Trust = More Wins Never compromise on integrity Success is measure over time…
  • 116. People always give the most consideration, the best deals, to those people Negotiation Skills - Gihan Aboueleish they like and TRUST
  • 117. Thank you Negotiation Skills - Gihan Aboueleish