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Premium member Presentation Transcript Negotiation PreparationPrinciples for Success : Negotiation PreparationPrinciples for Success Session 4 (part A) Jock Burns Objectives : Objectives Describe 4 components of successful negotiation Develop a successful negotiating strategy: Define an appropriate starting point Use concession behavior effectively Explain approaches to negotiation hurdles by: Using the ‘Theory of Yes’ Recognize ploys and break deadlocks Describe “Principled Negotiation” Through a skills session, learn how to apply successful negotiating techniques Do you consider yourself a negotiator? : Do you consider yourself a negotiator? “Everything we want is under the control of someone else.” : “Everything we want is under the control of someone else.” Roger Dawson “The first offer is never the final offer.” : “The first offer is never the final offer.” Edward Levin Successful negotiation is a mutually acceptable resolution of a conflict. : Successful negotiation is a mutually acceptable resolution of a conflict. Negotiation is Distasteful : Negotiation is Distasteful To some because: The Tijuana Syndrome – Haggling that cheapens all involved. The International Treaty – An expertise unobtainable by a mere amateur. It involves a potential “NO!” Our children our among the best negotiators because they intuitively understand that: Negotiation is Knowing and Caring about what you want! : Our children our among the best negotiators because they intuitively understand that: Negotiation is Knowing and Caring about what you want! Components of Success : Components of Success Attitude Information Time Power and… Planning(Among Inexperienced) : Planning(Among Inexperienced) 90% of planning occurs just before the negotiation . . . 10% occurs afterwards! AttitudeWinning doesn’t necessarily require overcoming an opponent, so when trying to influence people, create trust : AttitudeWinning doesn’t necessarily require overcoming an opponent, so when trying to influence people, create trust Become an active listener Talk less then they do Hear their goals and aspirations Avoid emotional negotiations “We will bury you!” : “We will bury you!” Nikita Khrushchev Information – Aspiration“Facts are a stupid thing!” : Information – Aspiration“Facts are a stupid thing!” Ronald Reagan “I worked for a menial’s hire, only to learn dismayed, that any wage I’d asked of life,life would have paid.” : “I worked for a menial’s hire, only to learn dismayed, that any wage I’d asked of life,life would have paid.” Jessie B. Rittenhouse “People who expect more, earn more.” : “People who expect more, earn more.” Dean Fouraker Paradox of LOFTY Goals Win MoreSimultaneously Lose More : Paradox of LOFTY Goals Win MoreSimultaneously Lose More How do you respond to: : How do you respond to: NO!! “A Study of the Relationship of Negotiator Skill and Power as Determinants of Negotiation Outcome.” : “A Study of the Relationship of Negotiator Skill and Power as Determinants of Negotiation Outcome.” Chester Karass Chester Karass : Chester Karass Higher aspirations lead to higher awards Negotiators project their own aspirations Fair and reasonable to Me are Not necessarily fair and reasonable to You______________________________________________ “He is well paid, who is well satisfied.” : Fair and reasonable to Me are Not necessarily fair and reasonable to You______________________________________________ “He is well paid, who is well satisfied.” William Shakespeare Time / Deadline : Time / Deadline Greatest concessions occur at the last minute; and Easy settlements don’t achieve the greatest concessions. What happens if you go beyond the deadline? D E A D L I N E Determine: : D E A D L I N E Determine: Their deadline. Is yours real? Can it be extended? Power / Control : Power / Control Most people believe that the other side has more. (The grass is always greener on the other side) “The dumber one appears to be, the more relaxed and vulnerable the other side will be.” Roger Dawson : “The dumber one appears to be, the more relaxed and vulnerable the other side will be.” Roger Dawson COLUMBO Principle : COLUMBO Principle Weak = Strong Dumb = Smart The Power of: : The Power of: Competition Legitimacy Expertise Limited Authority CompetitionSolutions : CompetitionSolutions If you are one of several options, they compete for you. If you appear desperate, you compete for them. CompetitionSolutions : CompetitionSolutions Gain information Describe your uniqueness Develop your own options Power ofExpertise : Power ofExpertise Establish your background and credentials early, when they are most likely to be accepted as fact. ExpertiseSolutions : ExpertiseSolutions Healthy disrespect for expertise Use their expert to help you Establish your expertise early Limited AuthoritySolutions : Limited AuthoritySolutions Establish authority early Play on pride Gain commitment Invent your own authority Negotiations : Negotiations How Do You: Start Concede Overcome Obstacles Creating Vision (RS)If you want to move people along a continuum, you’ve got to show them what is beyond where you want them to go. : Creating Vision (RS)If you want to move people along a continuum, you’ve got to show them what is beyond where you want them to go. Karass on Concessions : Karass on Concessions Winners Small Concessions Last Concessions Decrease toward deadline Losers Large Concessions First Concessions Increase at deadline TheINCREMENTAL NATUREofCONCESSIONS : TheINCREMENTAL NATUREofCONCESSIONS Concede Slowlyand ask forSomething in Return : Concede Slowlyand ask forSomething in Return The “Too Easy” Win : The “Too Easy” Win I could have done better Is there something wrong I don’t trust them The Theory of Yes Just say “YES” : The Theory of Yes Just say “YES” Definitely Not Nancy Reagan Negotiating Ploys “The greatest cunning is to have none at all.” : Negotiating Ploys “The greatest cunning is to have none at all.” Carl Sandburg Negotiating Ploys : Negotiating Ploys Bait and Switch Good Guy / Bad Guy Higher Authority Funny Money False Reluctance End Run Puppy Dog Nibble Abuse Flinch Focus on issues,not positions Getting to Yes Fisher and Ury : Focus on issues,not positions Getting to Yes Fisher and Ury Satisfaction is not necessarily linked to Outcome. : Satisfaction is not necessarily linked to Outcome. “Michael, I am more proud of how you handle your success than I am of your success.” : “Michael, I am more proud of how you handle your success than I am of your success.” Kirk Douglas Topic 4 (part B) Communicating to Negotiate(Communication) : Topic 4 (part B) Communicating to Negotiate(Communication) We negotiate to … : We negotiate to … Get people to cooperate Work through personal interests and agendas Establish priorities between departments Find a win/win solution so everybody is happy Find common ground Overcome communication breakdowns between departments Deliver uncomfortable information Minimize conflict with other people Get meetings to run better & faster Persuade others Fundamental Framework : Fundamental Framework Positions Interests Variables Concessions BATNA We negotiate all the time… why? PAGE 1 How do many people view negotiations? : How do many people view negotiations? War, competition, battle, fight, contest… Old Style Tactics: set aggressive targets, start high, concede very slowly if at all, and employ threats, bluffs and commitments to unrealistic targets --- without triggering an impasse or escalation! Two Types of Negotiations… : Two Types of Negotiations… Zero-Sum Harness the power of anchoring Do not disclose key information Learn as much as you can Exploit Don’t overshoot 2 Slide 51: Two Types of Negotiations… Win-Win Tell the truth Provide key information Learn as much as you can Be flexible, creative and fair The Negotiator’s Dilemma Three Key Factors of Negotiating : Three Key Factors of Negotiating Preparation Negotiation Communication What makes a great negotiator? : What makes a great negotiator? Whoever is the best prepared wins : Interests: general goals, objectives Monetary (value: $, Time, People) Growth Status Principles ??? PAGE 4 Variables : Variables Optimum Alternative Minimum Supporting arguments / facts / proof What are you willing to give up? : What are you willing to give up? Trade-offs Concessions Limits BATNA The 6 mistakes of negotiation : The 6 mistakes of negotiation Not doing your homework. Neglecting the other side’s problem. Letting positions drive out interests. Letting the numbers bulldoze other interests. Neglecting BATNAs. Failing to correct for skewed vision. NITB Outline of key information: : Outline of key information: Main Interests / Positions Variables – Optimum / Minimum Arguments for / against each Trade-offs / Concessions / BATNA Reservation Price * For both parties PAGE 6 The right mind set… : The right mind set… Be very well prepared Be as flexible as possible Clarify your terms Don’t assume anything Be encouraging at all times Engage in brainstorming Show concern for your counterpart PAGE 12 Running the Negotiation : Running the Negotiation Open on the right foot Use a well thought out agenda Present the agenda as a benefit Discuss agenda items / allocate time Cover all agenda items Break to review agreement Leave on a positive note 13 Major barriers to a successful negotiation : Major barriers to a successful negotiation Poor communications Hardball attitudes / inflexibility Unable to build a deal that has value for both parties Negotiating with the wrong people Unrealistic demands / expectations Lack of trust… NITB Slide 62: C o n c e r n Competence Respect Affection TRUST You must Consistently Communicate that you are Competent and that you truly Care about your counterpart Distrust NITB Six more ways to build trust : Six more ways to build trust Know their language. Manage your reputation. Make dependence a factor. Make unilateral concessions. Label your concessions. Explain your demands. NITB Tactics : Tactics High ball / Low ball Delay Time pressure Stonewalling Bad temper Split the difference Good guy / Bad guy PAGE 17 Slide 65: Time to change gears… Challenging Conversations : Challenging Conversations How to handle difficult, emotional, stressful, angry and confrontational conversations PAGE 1 Important to set this up right… : Important to set this up right… The Evil People What is your purpose? Is it important to you? You can only fix you This takes practice and work NITB The Keys to Speaking Accountably : The Keys to Speaking Accountably Talk straight…responsibly Stay on purpose Collaborate - work at it Build ownership Commit with integrity Recover quickly NITB Your communications is accountable when… : Your communications is accountable when… People can re-create your message People know what is important People are emotionally and intellectually engaged You have contributed to building a higher level of trust You get the results you were after NITB Slide 70: Stimulus THINK What does this mean to me? STORY Facts Truth Reality Logic NO Fear Prejudice Past Desire YES EMOTION SILENCE VIOLENCE Effective Communication Masking Avoiding Withdraw Threats Name Calling Globals NITB Three Main Causes : Three Main Causes Arguing about the “facts” Truth / Intentions / Blame Ignoring emotions Concern about impact Personal / professional The Truth Assumptions : The Truth Assumptions I am right You are wrong I know the facts You are mistaken I understand You are confused 2 Slide 73: The Truth Assumptions They are the problem! Rude Arrogant Manipulative Controlling Naïve Irrational How do we fix the “truth” assumptions? : How do we fix the “truth” assumptions? Admit you are not always right Realize they are not always the problem Check your information Examine your world Explore their world PAGE 3 “I know why you did that” : “I know why you did that” I assume from your actions that I clearly understand your intentions Big problems with the “intentions” assumptions : Big problems with the “intentions” assumptions We really think we understand people We assume intentions by impact We assume the worst Bad intentions = bad person Bad assumptions lead to selective perception Three Key Questions: : Three Key Questions: What really happened? How did it really make me feel? What do I “guess” they intended? Go from accusing…to explaining “I” - statements Slide 78: “Scott, when you come in late to our team meetings, I feel frustrated because it has a serious impact on keeping the agenda on track. I feel like you don’t want to be in the meetings, and that confuses me because I know you are excited about the project. Could you help me understand what has been keeping you from making it on time?” Five Levels of Confrontation : Five Levels of Confrontation Understanding Demand for Action PAGE 8 Reflection : Reflection Relationship is top priority Sincere effort to understand Active listening “I can see that you are upset and you feel like there is a lot of pressure on you. You mentioned that you are working on eight different projects, including the annual budget. That is very challenging. I can understand that you feel stressed.” Slide 81: I - statements Relationship is important Build understanding by sharing Non-judgmental “I feel uncomfortable when you throw files down on my desk and raise your voice.” Slide 82: Diplomatic Disagreement Reach understanding in a gentle way Mutual understanding Disagree… agreeably Preserve relationship in conflict “I appreciate your position and realize you feel it will improve productivity. I believe we should wait until we get the new computers and make sure the software is compatible.” Slide 83: Gentle Confrontation Build relationship / change behavior Validate / direct Non-threatening… tentative Show concern and understanding Combination of : - Reflection - Validation of worth / importance - “I”-statements - Indication of consequences Slide 84: “I know you think the Tampa project is a waste of time. I understand your feelings and appreciate that it may not seem like a top priority to you. Tom, you are one of the key people on our team, however, I feel frustrated when you agree to deadlines on that project and then turn work in days late. I am trying to manage all of our projects well, and this situation is causing me a lot of stress and extra work. If you continue to delay the project, it may mean that we don’t meet our quarterly goals and we will all lose our chance for bonus.” Slide 85: Firm Confrontation Focus on changing behavior Maintain / preserve relationship Desire a firm resolution Clear consequences for noncompliance * Same as Gentle Confrontation… plus: “This cannot continue. In the future, I would appreciate it if you would please honor the deadlines you commit to. It is very important to all of us.” I don’t feel like talking about my feelings… : I don’t feel like talking about my feelings… Emotions ARE what make it challenging Can’t hide your emotions Emotional ear muffs Emotions can hurt you The gap Slide 87: Your personal power comes from... Stimulus Response GAP Ideal You Not the person you are now, but the person you want to become! PAGE 14 Something to think about… : Something to think about… Other people cannot: Anger you – you make yourself mad Depress you – you make yourself sad Offend you – you take offence Hurt your feelings – your thoughts about the situation create your own bad feelings The Four Questions: : The Four Questions: What do I want to have happen? What do I not want to have happen? What do I want for the relationship? Is what I am doing right now going to get me that outcome? NITB Summary of Key Points : Summary of Key Points Realize you are telling a story – it is not the truth You create your own emotions – you make yourself mad Identify and manage emotions – express them rationally Use the Gap – act like the “Ideal You” Use “I” statements – assertive not aggressive Ask good questions – listen and summarize What is your purpose? What do I want? What do I not want? What do I want from the relationship? Am I acting in a way that will get me that? Topic 4 (part C) Cross-Cultural Negotiation and Decision Making : © 2006 Prentice Hall 5- 91 Topic 4 (part C) Cross-Cultural Negotiation and Decision Making Negotiation : © 2006 Prentice Hall 5-92 Negotiation Management’s ability to negotiate productively effects their ability to implement strategies Negotiation is the process of discussion by which two or more parties aim to reach a mutually acceptable agreement Negotiating across borders is more complex because of the number of stakeholders involved The Salacuse Instrument : The Salacuse Instrument Complete the instrument individually (10 minutes) Scoring and discussion to follow © 2006 Prentice Hall 5-93 The Negotiation Process : © 2006 Prentice Hall 5-94 The Negotiation Process Stage One – Preparation : © 2006 Prentice Hall 5-95 Stage One – Preparation Negotiator must familiarize themselves with The entire context and background of their counterparts To the specific subjects to be negotiated Differences in culture, language, and environment Managers must have an understanding of their own negotiating style Stage One - Preparation : © 2006 Prentice Hall 5-96 Stage One - Preparation Managers should find out as much as possible about The kinds of demands that might be made The composition of the opposing team The relative authority that the members possess Develop a profile of their counterparts They consider different variables during this process as well The Negotiation Process : © 2006 Prentice Hall 5-97 The Negotiation Process Relationship building – taking time to build mutual trust before starting business discussions Exchanging task related information – during this stage each side makes a presentation and states its position, normally followed by a question-and-answer session The Negotiation Process : © 2006 Prentice Hall 5-98 The Negotiation Process Persuasion – during this stage both parties try to persuade the other to accept more of their position while giving up some of their own; there are recognizable tactics for this stage Concessions and Agreements – at this point each side will make various concessions so that an agreement can be reached and signed Understanding Negotiation Styles : © 2006 Prentice Hall 5-99 Understanding Negotiation Styles Understanding Negotiation Styles : © 2006 Prentice Hall 5-100 Understanding Negotiation Styles For North Americans, negotiations are businesslike; their factual appeals are based on what they believe is objective information, presented with the assumption that it is understood by the other side on a logical basis. Arabs use affective appeals based on emotions and subjective feelings. Russians employ axiomatic appeals – that is, their appeals are based on the ideals generally accepted in their society. Profile of an American Negotiator : © 2006 Prentice Hall 5-101 Profile of an American Negotiator Knows when to compromise Takes a firm stand at the beginning of the negotiation Refuses to make concessions beforehand Keeps his or her cards close to his or her chest Accepts compromises only when the negotiation is deadlocked Sets up the general principles and delegates the detail work to associates Keeps a maximum of options open before negotiation Operates in good faith Profile of an American Negotiator : © 2006 Prentice Hall 5-102 Profile of an American Negotiator Respects the “opponents” States his or her position as clearly as possible Knows when he or she wishes a negotiation to move on Is fully briefed about the negotiated issues Has a good sense of timing and is consistent Makes the other party reveal his or her position while keeping his or her own position hidden as long as possible Lets the other negotiator come forward first and looks for the best deal Profile of an Indian Negotiator : © 2006 Prentice Hall 5-103 Profile of an Indian Negotiator Looks for and says the truth Is not afraid of speaking up and has no fears Exercises self-control Seeks solutions that will please all the parties involved Respects the other party Neither uses violence nor insults Is ready to change his or her mind and differ with himself or herself at the risk of being seen as inconsistent and unpredictable Profile of an Indian Negotiator : © 2006 Prentice Hall 5-104 Profile of an Indian Negotiator Puts things into perspective and switches easily from the small picture to the big one Is humble and trusts the opponent Is able to withdraw, use silence, and learn from within Relies on himself or herself, his or her own resources and strengths Appeals to the other party’s spiritual identity Is tenacious, patient, and persistent Learns from the opponent and avoids the use of secrets Goes beyond logical reasoning and trusts his or her instinct as well as faith Profile of an Arab Negotiator : © 2006 Prentice Hall 5-105 Profile of an Arab Negotiator Protects all the parties’ honor, self-respect, and dignity Avoids direct confrontation between opponents Is respected and trusted by all Does not put the parties involved in a situation where they have to show weakness or admit defeat Has the necessary prestige to be listened to Is creative enough to come up with honorable solutions for all parties Is impartial and can understand the positions of the various parties without leaning toward one or the other Profile of an Arab Negotiator : © 2006 Prentice Hall 5-106 Profile of an Arab Negotiator Is able to resist any kind of pressure that the opponents could try to exercise on him Uses references to people who are highly respected by the opponents to persuade them to change their minds on some issues Can keep secrets and in so doing gains the confidence of the negotiating parties Controls his temper and emotions Can use conference as mediating devices Knows that the opponent will have problems in carrying out the decisions made during the negotiation Is able to cope with the Arab disregard for time Managing Negotiation : © 2006 Prentice Hall 5-107 Managing Negotiation Managing Negotiation : © 2006 Prentice Hall 5-108 Managing Negotiation Successful management of intercultural negotiations requires the manager To gain specific knowledge of the parties in the upcoming meeting To prepare accordingly to adjust to and control the situation To be innovative Comparative Management in Focus: Negotiating with the Chinese : © 2006 Prentice Hall 5-109 Comparative Management in Focus: Negotiating with the Chinese The Chinese think in terms of process that has no culmination. Americans think in terms of concrete solutions to specific problems. . . . The Chinese approach is impersonal, patient and aloof . . .To Americans, Chinese leaders seem polite but aloof and condescending. To the Chinese, Americans appear erratic and somewhat frivolous. —Henry Kissinger, Newsweek, May, 2001 Comparative Management in Focus: Negotiating with the Chinese : © 2006 Prentice Hall 5-110 Comparative Management in Focus: Negotiating with the Chinese Business people have two major areas of conflict when negotiating with the Chinese Amount of detail about product characteristics Apparent insincerity about reaching an agreement Chinese negotiation process is affected by three cultural norms Politeness and emotional restraint Emphasis on social obligations Belief in the interconnection of work, family, and friendship Comparative Management in Focus: Negotiating with the Chinese : © 2006 Prentice Hall 5-111 Comparative Management in Focus: Negotiating with the Chinese Tips to foreigners conducting business in China Practice patience Accept prolonged periods of stalemate Refrain from exaggerated expectations Discount Chinese rhetoric about future prospects Expect the Chinese to try to manipulate by shaming Resist the temptation to believe that difficulties are your fault Try to understand Chinese cultural traits Managing Conflict : © 2006 Prentice Hall 5-112 Managing Conflict Decision Making : © 2006 Prentice Hall 5-113 Decision Making Stages in the Rational Decision Making Model Defining the problem Gathering and analyzing relevant data Considering alternative solutions Deciding on the best solution Implementing the decision Twelve Variables in the Negotiation Process : © 2006 Prentice Hall 5-114 Twelve Variables in the Negotiation Process Persuasion Tactics : © 2006 Prentice Hall 5-115 Persuasion Tactics Return You do not have the permission to view this presentation. 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Topic_8_2507 shengvn Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 795 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: July 25, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Negotiation PreparationPrinciples for Success : Negotiation PreparationPrinciples for Success Session 4 (part A) Jock Burns Objectives : Objectives Describe 4 components of successful negotiation Develop a successful negotiating strategy: Define an appropriate starting point Use concession behavior effectively Explain approaches to negotiation hurdles by: Using the ‘Theory of Yes’ Recognize ploys and break deadlocks Describe “Principled Negotiation” Through a skills session, learn how to apply successful negotiating techniques Do you consider yourself a negotiator? : Do you consider yourself a negotiator? “Everything we want is under the control of someone else.” : “Everything we want is under the control of someone else.” Roger Dawson “The first offer is never the final offer.” : “The first offer is never the final offer.” Edward Levin Successful negotiation is a mutually acceptable resolution of a conflict. : Successful negotiation is a mutually acceptable resolution of a conflict. Negotiation is Distasteful : Negotiation is Distasteful To some because: The Tijuana Syndrome – Haggling that cheapens all involved. The International Treaty – An expertise unobtainable by a mere amateur. It involves a potential “NO!” Our children our among the best negotiators because they intuitively understand that: Negotiation is Knowing and Caring about what you want! : Our children our among the best negotiators because they intuitively understand that: Negotiation is Knowing and Caring about what you want! Components of Success : Components of Success Attitude Information Time Power and… Planning(Among Inexperienced) : Planning(Among Inexperienced) 90% of planning occurs just before the negotiation . . . 10% occurs afterwards! AttitudeWinning doesn’t necessarily require overcoming an opponent, so when trying to influence people, create trust : AttitudeWinning doesn’t necessarily require overcoming an opponent, so when trying to influence people, create trust Become an active listener Talk less then they do Hear their goals and aspirations Avoid emotional negotiations “We will bury you!” : “We will bury you!” Nikita Khrushchev Information – Aspiration“Facts are a stupid thing!” : Information – Aspiration“Facts are a stupid thing!” Ronald Reagan “I worked for a menial’s hire, only to learn dismayed, that any wage I’d asked of life,life would have paid.” : “I worked for a menial’s hire, only to learn dismayed, that any wage I’d asked of life,life would have paid.” Jessie B. Rittenhouse “People who expect more, earn more.” : “People who expect more, earn more.” Dean Fouraker Paradox of LOFTY Goals Win MoreSimultaneously Lose More : Paradox of LOFTY Goals Win MoreSimultaneously Lose More How do you respond to: : How do you respond to: NO!! “A Study of the Relationship of Negotiator Skill and Power as Determinants of Negotiation Outcome.” : “A Study of the Relationship of Negotiator Skill and Power as Determinants of Negotiation Outcome.” Chester Karass Chester Karass : Chester Karass Higher aspirations lead to higher awards Negotiators project their own aspirations Fair and reasonable to Me are Not necessarily fair and reasonable to You______________________________________________ “He is well paid, who is well satisfied.” : Fair and reasonable to Me are Not necessarily fair and reasonable to You______________________________________________ “He is well paid, who is well satisfied.” William Shakespeare Time / Deadline : Time / Deadline Greatest concessions occur at the last minute; and Easy settlements don’t achieve the greatest concessions. What happens if you go beyond the deadline? D E A D L I N E Determine: : D E A D L I N E Determine: Their deadline. Is yours real? Can it be extended? Power / Control : Power / Control Most people believe that the other side has more. (The grass is always greener on the other side) “The dumber one appears to be, the more relaxed and vulnerable the other side will be.” Roger Dawson : “The dumber one appears to be, the more relaxed and vulnerable the other side will be.” Roger Dawson COLUMBO Principle : COLUMBO Principle Weak = Strong Dumb = Smart The Power of: : The Power of: Competition Legitimacy Expertise Limited Authority CompetitionSolutions : CompetitionSolutions If you are one of several options, they compete for you. If you appear desperate, you compete for them. CompetitionSolutions : CompetitionSolutions Gain information Describe your uniqueness Develop your own options Power ofExpertise : Power ofExpertise Establish your background and credentials early, when they are most likely to be accepted as fact. ExpertiseSolutions : ExpertiseSolutions Healthy disrespect for expertise Use their expert to help you Establish your expertise early Limited AuthoritySolutions : Limited AuthoritySolutions Establish authority early Play on pride Gain commitment Invent your own authority Negotiations : Negotiations How Do You: Start Concede Overcome Obstacles Creating Vision (RS)If you want to move people along a continuum, you’ve got to show them what is beyond where you want them to go. : Creating Vision (RS)If you want to move people along a continuum, you’ve got to show them what is beyond where you want them to go. Karass on Concessions : Karass on Concessions Winners Small Concessions Last Concessions Decrease toward deadline Losers Large Concessions First Concessions Increase at deadline TheINCREMENTAL NATUREofCONCESSIONS : TheINCREMENTAL NATUREofCONCESSIONS Concede Slowlyand ask forSomething in Return : Concede Slowlyand ask forSomething in Return The “Too Easy” Win : The “Too Easy” Win I could have done better Is there something wrong I don’t trust them The Theory of Yes Just say “YES” : The Theory of Yes Just say “YES” Definitely Not Nancy Reagan Negotiating Ploys “The greatest cunning is to have none at all.” : Negotiating Ploys “The greatest cunning is to have none at all.” Carl Sandburg Negotiating Ploys : Negotiating Ploys Bait and Switch Good Guy / Bad Guy Higher Authority Funny Money False Reluctance End Run Puppy Dog Nibble Abuse Flinch Focus on issues,not positions Getting to Yes Fisher and Ury : Focus on issues,not positions Getting to Yes Fisher and Ury Satisfaction is not necessarily linked to Outcome. : Satisfaction is not necessarily linked to Outcome. “Michael, I am more proud of how you handle your success than I am of your success.” : “Michael, I am more proud of how you handle your success than I am of your success.” Kirk Douglas Topic 4 (part B) Communicating to Negotiate(Communication) : Topic 4 (part B) Communicating to Negotiate(Communication) We negotiate to … : We negotiate to … Get people to cooperate Work through personal interests and agendas Establish priorities between departments Find a win/win solution so everybody is happy Find common ground Overcome communication breakdowns between departments Deliver uncomfortable information Minimize conflict with other people Get meetings to run better & faster Persuade others Fundamental Framework : Fundamental Framework Positions Interests Variables Concessions BATNA We negotiate all the time… why? PAGE 1 How do many people view negotiations? : How do many people view negotiations? War, competition, battle, fight, contest… Old Style Tactics: set aggressive targets, start high, concede very slowly if at all, and employ threats, bluffs and commitments to unrealistic targets --- without triggering an impasse or escalation! Two Types of Negotiations… : Two Types of Negotiations… Zero-Sum Harness the power of anchoring Do not disclose key information Learn as much as you can Exploit Don’t overshoot 2 Slide 51: Two Types of Negotiations… Win-Win Tell the truth Provide key information Learn as much as you can Be flexible, creative and fair The Negotiator’s Dilemma Three Key Factors of Negotiating : Three Key Factors of Negotiating Preparation Negotiation Communication What makes a great negotiator? : What makes a great negotiator? Whoever is the best prepared wins : Interests: general goals, objectives Monetary (value: $, Time, People) Growth Status Principles ??? PAGE 4 Variables : Variables Optimum Alternative Minimum Supporting arguments / facts / proof What are you willing to give up? : What are you willing to give up? Trade-offs Concessions Limits BATNA The 6 mistakes of negotiation : The 6 mistakes of negotiation Not doing your homework. Neglecting the other side’s problem. Letting positions drive out interests. Letting the numbers bulldoze other interests. Neglecting BATNAs. Failing to correct for skewed vision. NITB Outline of key information: : Outline of key information: Main Interests / Positions Variables – Optimum / Minimum Arguments for / against each Trade-offs / Concessions / BATNA Reservation Price * For both parties PAGE 6 The right mind set… : The right mind set… Be very well prepared Be as flexible as possible Clarify your terms Don’t assume anything Be encouraging at all times Engage in brainstorming Show concern for your counterpart PAGE 12 Running the Negotiation : Running the Negotiation Open on the right foot Use a well thought out agenda Present the agenda as a benefit Discuss agenda items / allocate time Cover all agenda items Break to review agreement Leave on a positive note 13 Major barriers to a successful negotiation : Major barriers to a successful negotiation Poor communications Hardball attitudes / inflexibility Unable to build a deal that has value for both parties Negotiating with the wrong people Unrealistic demands / expectations Lack of trust… NITB Slide 62: C o n c e r n Competence Respect Affection TRUST You must Consistently Communicate that you are Competent and that you truly Care about your counterpart Distrust NITB Six more ways to build trust : Six more ways to build trust Know their language. Manage your reputation. Make dependence a factor. Make unilateral concessions. Label your concessions. Explain your demands. NITB Tactics : Tactics High ball / Low ball Delay Time pressure Stonewalling Bad temper Split the difference Good guy / Bad guy PAGE 17 Slide 65: Time to change gears… Challenging Conversations : Challenging Conversations How to handle difficult, emotional, stressful, angry and confrontational conversations PAGE 1 Important to set this up right… : Important to set this up right… The Evil People What is your purpose? Is it important to you? You can only fix you This takes practice and work NITB The Keys to Speaking Accountably : The Keys to Speaking Accountably Talk straight…responsibly Stay on purpose Collaborate - work at it Build ownership Commit with integrity Recover quickly NITB Your communications is accountable when… : Your communications is accountable when… People can re-create your message People know what is important People are emotionally and intellectually engaged You have contributed to building a higher level of trust You get the results you were after NITB Slide 70: Stimulus THINK What does this mean to me? STORY Facts Truth Reality Logic NO Fear Prejudice Past Desire YES EMOTION SILENCE VIOLENCE Effective Communication Masking Avoiding Withdraw Threats Name Calling Globals NITB Three Main Causes : Three Main Causes Arguing about the “facts” Truth / Intentions / Blame Ignoring emotions Concern about impact Personal / professional The Truth Assumptions : The Truth Assumptions I am right You are wrong I know the facts You are mistaken I understand You are confused 2 Slide 73: The Truth Assumptions They are the problem! Rude Arrogant Manipulative Controlling Naïve Irrational How do we fix the “truth” assumptions? : How do we fix the “truth” assumptions? Admit you are not always right Realize they are not always the problem Check your information Examine your world Explore their world PAGE 3 “I know why you did that” : “I know why you did that” I assume from your actions that I clearly understand your intentions Big problems with the “intentions” assumptions : Big problems with the “intentions” assumptions We really think we understand people We assume intentions by impact We assume the worst Bad intentions = bad person Bad assumptions lead to selective perception Three Key Questions: : Three Key Questions: What really happened? How did it really make me feel? What do I “guess” they intended? Go from accusing…to explaining “I” - statements Slide 78: “Scott, when you come in late to our team meetings, I feel frustrated because it has a serious impact on keeping the agenda on track. I feel like you don’t want to be in the meetings, and that confuses me because I know you are excited about the project. Could you help me understand what has been keeping you from making it on time?” Five Levels of Confrontation : Five Levels of Confrontation Understanding Demand for Action PAGE 8 Reflection : Reflection Relationship is top priority Sincere effort to understand Active listening “I can see that you are upset and you feel like there is a lot of pressure on you. You mentioned that you are working on eight different projects, including the annual budget. That is very challenging. I can understand that you feel stressed.” Slide 81: I - statements Relationship is important Build understanding by sharing Non-judgmental “I feel uncomfortable when you throw files down on my desk and raise your voice.” Slide 82: Diplomatic Disagreement Reach understanding in a gentle way Mutual understanding Disagree… agreeably Preserve relationship in conflict “I appreciate your position and realize you feel it will improve productivity. I believe we should wait until we get the new computers and make sure the software is compatible.” Slide 83: Gentle Confrontation Build relationship / change behavior Validate / direct Non-threatening… tentative Show concern and understanding Combination of : - Reflection - Validation of worth / importance - “I”-statements - Indication of consequences Slide 84: “I know you think the Tampa project is a waste of time. I understand your feelings and appreciate that it may not seem like a top priority to you. Tom, you are one of the key people on our team, however, I feel frustrated when you agree to deadlines on that project and then turn work in days late. I am trying to manage all of our projects well, and this situation is causing me a lot of stress and extra work. If you continue to delay the project, it may mean that we don’t meet our quarterly goals and we will all lose our chance for bonus.” Slide 85: Firm Confrontation Focus on changing behavior Maintain / preserve relationship Desire a firm resolution Clear consequences for noncompliance * Same as Gentle Confrontation… plus: “This cannot continue. In the future, I would appreciate it if you would please honor the deadlines you commit to. It is very important to all of us.” I don’t feel like talking about my feelings… : I don’t feel like talking about my feelings… Emotions ARE what make it challenging Can’t hide your emotions Emotional ear muffs Emotions can hurt you The gap Slide 87: Your personal power comes from... Stimulus Response GAP Ideal You Not the person you are now, but the person you want to become! PAGE 14 Something to think about… : Something to think about… Other people cannot: Anger you – you make yourself mad Depress you – you make yourself sad Offend you – you take offence Hurt your feelings – your thoughts about the situation create your own bad feelings The Four Questions: : The Four Questions: What do I want to have happen? What do I not want to have happen? What do I want for the relationship? Is what I am doing right now going to get me that outcome? NITB Summary of Key Points : Summary of Key Points Realize you are telling a story – it is not the truth You create your own emotions – you make yourself mad Identify and manage emotions – express them rationally Use the Gap – act like the “Ideal You” Use “I” statements – assertive not aggressive Ask good questions – listen and summarize What is your purpose? What do I want? What do I not want? What do I want from the relationship? Am I acting in a way that will get me that? Topic 4 (part C) Cross-Cultural Negotiation and Decision Making : © 2006 Prentice Hall 5- 91 Topic 4 (part C) Cross-Cultural Negotiation and Decision Making Negotiation : © 2006 Prentice Hall 5-92 Negotiation Management’s ability to negotiate productively effects their ability to implement strategies Negotiation is the process of discussion by which two or more parties aim to reach a mutually acceptable agreement Negotiating across borders is more complex because of the number of stakeholders involved The Salacuse Instrument : The Salacuse Instrument Complete the instrument individually (10 minutes) Scoring and discussion to follow © 2006 Prentice Hall 5-93 The Negotiation Process : © 2006 Prentice Hall 5-94 The Negotiation Process Stage One – Preparation : © 2006 Prentice Hall 5-95 Stage One – Preparation Negotiator must familiarize themselves with The entire context and background of their counterparts To the specific subjects to be negotiated Differences in culture, language, and environment Managers must have an understanding of their own negotiating style Stage One - Preparation : © 2006 Prentice Hall 5-96 Stage One - Preparation Managers should find out as much as possible about The kinds of demands that might be made The composition of the opposing team The relative authority that the members possess Develop a profile of their counterparts They consider different variables during this process as well The Negotiation Process : © 2006 Prentice Hall 5-97 The Negotiation Process Relationship building – taking time to build mutual trust before starting business discussions Exchanging task related information – during this stage each side makes a presentation and states its position, normally followed by a question-and-answer session The Negotiation Process : © 2006 Prentice Hall 5-98 The Negotiation Process Persuasion – during this stage both parties try to persuade the other to accept more of their position while giving up some of their own; there are recognizable tactics for this stage Concessions and Agreements – at this point each side will make various concessions so that an agreement can be reached and signed Understanding Negotiation Styles : © 2006 Prentice Hall 5-99 Understanding Negotiation Styles Understanding Negotiation Styles : © 2006 Prentice Hall 5-100 Understanding Negotiation Styles For North Americans, negotiations are businesslike; their factual appeals are based on what they believe is objective information, presented with the assumption that it is understood by the other side on a logical basis. Arabs use affective appeals based on emotions and subjective feelings. Russians employ axiomatic appeals – that is, their appeals are based on the ideals generally accepted in their society. Profile of an American Negotiator : © 2006 Prentice Hall 5-101 Profile of an American Negotiator Knows when to compromise Takes a firm stand at the beginning of the negotiation Refuses to make concessions beforehand Keeps his or her cards close to his or her chest Accepts compromises only when the negotiation is deadlocked Sets up the general principles and delegates the detail work to associates Keeps a maximum of options open before negotiation Operates in good faith Profile of an American Negotiator : © 2006 Prentice Hall 5-102 Profile of an American Negotiator Respects the “opponents” States his or her position as clearly as possible Knows when he or she wishes a negotiation to move on Is fully briefed about the negotiated issues Has a good sense of timing and is consistent Makes the other party reveal his or her position while keeping his or her own position hidden as long as possible Lets the other negotiator come forward first and looks for the best deal Profile of an Indian Negotiator : © 2006 Prentice Hall 5-103 Profile of an Indian Negotiator Looks for and says the truth Is not afraid of speaking up and has no fears Exercises self-control Seeks solutions that will please all the parties involved Respects the other party Neither uses violence nor insults Is ready to change his or her mind and differ with himself or herself at the risk of being seen as inconsistent and unpredictable Profile of an Indian Negotiator : © 2006 Prentice Hall 5-104 Profile of an Indian Negotiator Puts things into perspective and switches easily from the small picture to the big one Is humble and trusts the opponent Is able to withdraw, use silence, and learn from within Relies on himself or herself, his or her own resources and strengths Appeals to the other party’s spiritual identity Is tenacious, patient, and persistent Learns from the opponent and avoids the use of secrets Goes beyond logical reasoning and trusts his or her instinct as well as faith Profile of an Arab Negotiator : © 2006 Prentice Hall 5-105 Profile of an Arab Negotiator Protects all the parties’ honor, self-respect, and dignity Avoids direct confrontation between opponents Is respected and trusted by all Does not put the parties involved in a situation where they have to show weakness or admit defeat Has the necessary prestige to be listened to Is creative enough to come up with honorable solutions for all parties Is impartial and can understand the positions of the various parties without leaning toward one or the other Profile of an Arab Negotiator : © 2006 Prentice Hall 5-106 Profile of an Arab Negotiator Is able to resist any kind of pressure that the opponents could try to exercise on him Uses references to people who are highly respected by the opponents to persuade them to change their minds on some issues Can keep secrets and in so doing gains the confidence of the negotiating parties Controls his temper and emotions Can use conference as mediating devices Knows that the opponent will have problems in carrying out the decisions made during the negotiation Is able to cope with the Arab disregard for time Managing Negotiation : © 2006 Prentice Hall 5-107 Managing Negotiation Managing Negotiation : © 2006 Prentice Hall 5-108 Managing Negotiation Successful management of intercultural negotiations requires the manager To gain specific knowledge of the parties in the upcoming meeting To prepare accordingly to adjust to and control the situation To be innovative Comparative Management in Focus: Negotiating with the Chinese : © 2006 Prentice Hall 5-109 Comparative Management in Focus: Negotiating with the Chinese The Chinese think in terms of process that has no culmination. Americans think in terms of concrete solutions to specific problems. . . . The Chinese approach is impersonal, patient and aloof . . .To Americans, Chinese leaders seem polite but aloof and condescending. To the Chinese, Americans appear erratic and somewhat frivolous. —Henry Kissinger, Newsweek, May, 2001 Comparative Management in Focus: Negotiating with the Chinese : © 2006 Prentice Hall 5-110 Comparative Management in Focus: Negotiating with the Chinese Business people have two major areas of conflict when negotiating with the Chinese Amount of detail about product characteristics Apparent insincerity about reaching an agreement Chinese negotiation process is affected by three cultural norms Politeness and emotional restraint Emphasis on social obligations Belief in the interconnection of work, family, and friendship Comparative Management in Focus: Negotiating with the Chinese : © 2006 Prentice Hall 5-111 Comparative Management in Focus: Negotiating with the Chinese Tips to foreigners conducting business in China Practice patience Accept prolonged periods of stalemate Refrain from exaggerated expectations Discount Chinese rhetoric about future prospects Expect the Chinese to try to manipulate by shaming Resist the temptation to believe that difficulties are your fault Try to understand Chinese cultural traits Managing Conflict : © 2006 Prentice Hall 5-112 Managing Conflict Decision Making : © 2006 Prentice Hall 5-113 Decision Making Stages in the Rational Decision Making Model Defining the problem Gathering and analyzing relevant data Considering alternative solutions Deciding on the best solution Implementing the decision Twelve Variables in the Negotiation Process : © 2006 Prentice Hall 5-114 Twelve Variables in the Negotiation Process Persuasion Tactics : © 2006 Prentice Hall 5-115 Persuasion Tactics Return