CIPS Negotiation Challenge Round 1 Prior to showing slide 2 ask students – What key words would describe Negotiation? Capture outputs on whiteboard or flipchart

Negotiation – A definition A process through which parties move from their initially divergent positions to a point where agreement may be reached Show slide and link back to students descriptive words. Highlight the most important word in the definition ‘MOVE’. If there is no movement towards each party’s objectives you will find yourself either accepting or arguing and not negotiating.

HOUSE OF NEGOTIATION P P R E O P O C L E O L S Y S P E R S U A I O n The House of Negotiation Introduction of the 4 pillars in order: PEOPLE – Interpersonal skills are fundamentally important in negotiations and the 4 elements of focus are WARM with the people TOUGH on the issues whilst showing VALUE and RESPECT for the other party. PERSUASION – You can’t make someone move towards you in a negotiation. WE need to persuade them. There are 5 Persuasion methods for success. EMOTION, LOGIC, THREAT, BARGAIN and COMPROMISE. PROCESS – It is imperative that we have a successful strategy when negotiating. There are 6 Phases. PLANNING AND PREPARATION, OPEN, TEST, MOVE, CONCLUDE, REVIEW. PLOYS – Tactics or tricks used in a negotiation to either manage the negotiation, control the negotiation or gain movement from the other party.

The warm and tough approach Assertion Value and respect Good communicator Easy Tough Skilled negotiators focus on 2 main areas in terms of approaching the other party. They are warm with the people and balance that approach out with being tough on the issue/business. Warm and Tough is the best negotiating behaviour. Warm ensures you are approachable, interested, responsive and attentive to the other party and Tough ensures you are focused, persistent and assertive and therefore drive towards a good deal. Cold

17th birthday – persuasion practice session Both groups have 10 minutes to prepare for the negotiation. Each group list all the variables you may need in order to persuade the other party to your way of thinking. Remember you can’t make the other party agree but you can persuade them. Tutor to divide group into 2 teams of 6, other students to observe

17th birthday – persuasion practice session Team A = Parents Team B = Teenagers approaching 17th birthday Parents - You are looking forward to your son/daughters 17th birthday. You have already told them that you have bought them a series of driving lessons. You feel this is an extravagant present as most teenagers have to work and pay for their own lessons. Teenagers - You are grateful for receiving driving lessons and appreciate how hard your parents work. However, ALL your friends get driving lessons plus a car for their 17th. You express how you feel and work to persuade your parents you should have a car too. Tutor to divide group into 2 teams: Team A = Parents Team B = Teenagers approaching 17th birthday Tutor Brief in plenary: Parents-You are looking forward to your son/daughters 17th birthday. You have already told them that you have bought them a series of driving lessons for their birthday. You feel this is an extravagant present as most teenagers have to work and pay for their own lessons. Teenagers – You are grateful for receiving driving lessons and appreciate how hard your parents work. However, ALL your friends get driving lessons and a car for their 17th. You express how you feel and work to persuade your parents you should have a car too. Instructions as per slide – Both groups have 10 minutes to prepare for the negotiation. List all the variables you may need in order to persuade the other party to your way of thinking. Remember you can’t make anyone move but you can persuade them. After preparation and planning teams have 15 minutes to get to a deal. Encourage students to have fun and react as they would in the real world.

Using Emotion Be in control of your emotions – don’t let them control you! Use from a sincerely held belief Use early in the negotiation Use to increase the “perceived value” of your bargaining Use to counter logic EMOTION – Tutor reads the slide and asks students for examples of when they used Emotion in the exercise and discuss. Highlight that emotion is the most powerful of the persuasion methods because it is based on the way people FEEL, and nobody can argue the way you FEEL about anything, they are your feelings and you own your FEELINGS. E.g. I feel really isolated and left out when ALL my friends have cars and I am the only one that hasn’t. Imagine how that makes me feel……it’s awful!

Using logic Don’t be too quick to ask “Why?” Get your own logic in first Keep to one powerful argument – don’t dilute Be credible If others can’t see it, change tack Counter logic with emotion LOGIC – Tutor reads the slide and asks students for examples of when they used logic in the exercise and discuss. Highlight that logic is powerful providing you get your facts and compelling argument in first. If you allow the other party to get their facts in first by asking WHY? They can back you into a corner….especially if their argument is strong, compelling and makes perfect sense. E.g. It has been proven that teenagers that have practiced in their own car regularly pass their driving test earlier.

Using threat Be slow to threaten Threaten at the business, not the person Use a discreet or veiled threat Never make a threat you can’t ….. Be credible Add “if” to transfer threat to bargaining THREAT - Tutor reads the slide and asks students for examples of when they used threat in the exercise and discuss. Highlight that you need to be slow to threaten especially when relationships are at stake. Always threaten the issue in a discreet way and NEVER the person. E.g. If I don’t have a car to practice in it will take longer for me to pass my test and therefore more costly for you.

Using bargaining Don’t expose your position early Don’t put a marker down Don’t seem too eager to move Move, in small steps, Get a return for any concession you make Thank and bank BARGAIN - Tutor reads the slide and asks students for examples of when they used bargaining in the exercise and discuss. Highlight that this is the stage where movement happens; you start to give and take, moving slowly towards your goal. E.g. If you buy the car now I will mow the lawn every weekend, get a job and pay a percentage towards the cost during the next year. Always state your conditions before you make the offer – take first then give.

Using compromise The behaviour of last resort 50/50 is not the only compromise Compromise favours the more extreme party Let the other party suggest compromise… …..the one suggesting compromise probably accepts or moves towards the position of the other….. COMPROMISE – Tutor reads the slide and asks student for examples of when they used Compromise in the exercise and discuss. Highlight that Compromise is the behaviour of last resort in a Negotiation. Compromise will cost you the most and is often known as meeting the other party half way. E.g. If you buy the car I will pay half. Highlight that there is a difference between Emotion, Logic and Threat and Bargain/ Compromise. Emotion, Logic and Threat are FREE they cost you nothing. However Bargain and Compromise COST, this is where you start giving things away in order to get movement from the other party.

Preparation & Planning The negotiation cycle Preparation & Planning Opening Testing Moving Concluding Reviewing NEGOTIATION PHASES/STRUCTURE Highlight the fact that it is fundamentally important to have a structure to any negotiation. Specific phases look to achieve specific key objectives. Introduce the 6 Phases slide asking students what they think the key objective of each phase is: Key objective - ANSWERS: P&P - To set clear objectives along a range. E.g. Ideal – Parent to buy car outright, Realistic – Parents to pay now and I pay back later, Walk Away – I have to save up 50% of the cost before getting the car OPENING – Manage expectations. “Mum/Dad I have a great idea on how you buying me a car can save you money on fewer lessons”. TESTING – Gather information. Ask open questions and watch/listen for signals of movement. E.g. “We couldn’t buy you a car for your birthday”. The signal being they could buy a car another time???? Worth exploring with further questions. MOVING – Move slowly and in small steps. Always state your conditions before you make the offer. E.g. If you but the car now then I promise to clean my room, take my little brother out every Saturday and complete ALL coursework projects.

Flipchart interactive exercise The negotiation cycle Flipchart interactive exercise Place 6 flipcharts around the room prior to the session. Each flipchart to be labelled with 1 of the six phases. 6 groups. Students have 3 minutes at each flipchart to list all activities required at each phase. Each group presents back. Exercise is time sensitive and should be used as an energiser. Continue through self explanatory slides 14-22.

Preparation and planning The objective here is…. To place you in the best possible position before the negotiation commences Preparation ………researching the issues Planning ….strategy, tactics, logistics

Preparation and planning objective setting We need to set clear targets for each variable IDEAL Our ideal settlement, we strive to achieve it – our AIM HIGH figure or STRETCH target! REALISTIC Realistically we feel that this is where we might finish up! FALLBACK The point beyond which it is not commercially viable to do business Plan to be flexible as objectives may need to be changed

Opening The Vital First Impression Timekeeping Politeness Physical appearance and dress Personal hygiene The hand shake Eye contact Smile The opening words

Testing To test the validity of the assumptions we have made To see where movement in the other party is likely to come from To understand what is likely to be expected of us

Testing – questioning techniques Types of question Open Closed Probing Multiple Leading Reflective Hypothetical

Moving To achieve the maximum movement from the other party and make minimum movement yourself, in relation to your targets

Encouraging movement Progressive and enthusiastic summary “So we’re agreed on the menus and the opening hours - we’re getting through it, let’s move on” Thank and bank “Thank you. I appreciate it. Can we move on to…” “Thanks for that, I do appreciate the offer, it’s a good move, however could you look again at…”

Concluding To reach a workable agreement To record what has been agreed To agree the next steps To condition for next time

Review comparison with ‘SMART’ targets extent of plan achieved what went well / what didn’t what could I have done better hard and soft successes personal, team, organisation or industry patterns

Learning review Share two key learning points