PRACTICAL NEGOTIATION SKILLS by Jubeir Shamte Head of Commercial Management – Projects Wasl Asset Management Group 30th January 2012

What is negotiation? Negotiation is a process of communication between two or more parties trying to reach an agreement.

Objective of the negotiation The objective of the negotiation is to inspire another person to do something he or she may not want to do. Some of the tactics of negotiation includes: Persuasion Respect Fear

Balance of Power

Types of negotiation Distributive Integrative

Irrational tendencies in negotiation Unrealistic Expectations Under-confident Overconfident Escalation of Commitments Anchors Frames

Fighting irrationality Best Alternative To a Negotiated Agreement [BATNA] Reservation Price Target The importance of information Interests vs Position Fairness Trust

Substance of price negotiation STRATEGIES AND TACTICS FOR EFFECTIVE NEGOTIATIONS Substance of price negotiation Price Terms Timeframes Warranties Remedies

Negotiating Claims Decide strategy Get to know the opposition Gottas Wannas Get to know the opposition Build relationship Check contractual and legal entitlements of the claims Indentify correspondences and records relating to the claim matter Exchange information Check facts referred to in the claim Prepare detailed response to the claim

Contd... Fix agenda and time scale Negotiation almost impossible except to face to face meetings. Meetings usually are without prejudice Choose negotiating team with care Limit number of attending negotiation meetings Be very familiar with the facts relating to the dispute Attack weak points in the claim Do not appear to be too inflexible or too rigid Score points early Be prepared to make concessions in response to the other party making concessions Reach agreement on individual items but subject to overall agreement

Contd... Do not be personally abusive to the opposition Do not be too proud to admit when you are wrong Do not allow meetings to go on too long Always commit to writing agreement reached at the meeting Do not get hanged up on single negotiated item Defuse threats, ultimatums, lies and other hard balls tactics Discover the truth even when other side want to conceal it Negotiate successfully from a position of weakness Recognize when the best move is to walk away Be patient: Negotiation is full of Ups and Downs

Questions & Answer

Thank you