Negotiation Strategies and Tactics

6.7_2 Evolution of Negotiation “A Plan for Success” n Give and TakeDr. Chester Karrass n Getting to YesFisher and Ury n Difficult ConversationsStone, Patton and Heen

6.7_3 Give and Take “Power Tactics” Guidelines n Original Negotiation Encyclopedia n Power Assessment n Negotiation Traits n Planning n Negotiation Modes n Buyer/Seller Satisfaction n Tactics and Countermeasures n Aspiration Level n Concessions Messages n Understand Your Sources of Power n Planning Pays Off n Profit is a Gain in Satisfaction n Aim Higher - You Come Out Better n Always Make Assumptions, but... n Change the Time and Shape of the Money

6.7_4 Getting to Yes “Joint Problem Solving” Guidelines n Focus on Common Interests, not Differing Positions n Invent Options for Mutual Gain n Use Power of Independent Standards n Always Develop your BATNA n Separate the People from the Problems Messages n Negotiation is Like Playing Frisbee n Convert Age of Me to Era of We n Key is Mutually Acceptable Conflict Resolution n Try Side-by-Side Problem Solving n There is Always a Better Deal for Both Parties n Learn How to be a Fly on the Wall

6.7_5 Getting to Yes “Change the Game” ProblemSolution Positional Bargaining: Which Game Should You Play?Change the Game-Negotiate on the Merits

6.7_6 Difficult Conversations “Create a Learning Conversation” Guidelines n Sort Out Three Conversations The “What Happened” Conversation The “Feelings” Conversation The “Identity” Conversation n Shift to a Learning Stance, a Learning Conversation n Sincere Listening Works n (Help Me Understand) n Open with Self Confident Expression n Begin with the Third Story (Your Story, Other Person’s Story, and the Invisible Third Story) Messages n Explore Each Other’s Stories n Learn to be Curious n Abandon Blame n Map the Contribution System n Feelings Matter n Acknowledge Feelings n Ground Your Identity... Ask Yourself What’s at Stake n Manage Your Internal Voice n Join Together as partners, Sort Out the Situation Together

6.7_7 Difficult Conversations “How to Discuss What Matters Most” A Battle of Messages Assumption: I know all I need to know to understand what happened Goal: Persuade them I’m right. Assumption: I know what they intended. Goal: Let them know what they did was wrong. Assumption: It’s all their fault. (Or it’s all my fault.) Goal: Get them to admit blame and take responsibility for making amends. A Learning Conversation Assumption: Each of us is bringing different information and perceptions to the table. There are likely to be important things that each of us doesn’t know. Goal: Explore each other’s stories: how we understand the situation and why. Assumption: I know what I intended, and the impact their actions had on me. I don’t and can’t know what’s in their head. Goal: Share the impact on me, and find out what they were thinking. Also find out what impact I’m having on them. Assumption: We have probably both contributed to this mess. Goal: Understand the contribution system: how our actions interact to produce this result. The “What Happened?” Conversation Challenge: The Situation is more complex than either person can see.

6.7_8 Difficult Conversations “How to Discuss What Matters Most” A Battle of Messages Assumption: Feelings are irrelevant and wouldn’t be helpful to share. (Or, my feelings are their fault and they need to hear about them.) Goal: Avoid talking about feelings. (Or, let’em have it!) A Learning Conversation Assumption: Feelings are at the heart of the situation. Feelings are usually complex. I may have to dig a bit to understand my feelings. Goal: Address feelings (mine and their) without judgements or attributions. Acknowledge feelings before problem- solving. The “Feelings” Conversation Challenge: The Situation is emotionally charged

6.7_9 Difficult Conversations “How to Discuss What Matters Most” A Battle of Messages Assumption: I’m competent or incompetent, good or bad, lovable or unlovable. There is no in- between. Goal: Protect my all-or-nothing self-image A Learning Conversation Assumption: There may be a lot at stake psychologically for both of us. Each of us is complex, neither of us is perfect. Goal: Understand the identity issues on the line for each of us. Build a more complex self-image to maintain my balance better. The “Identity” Conversation Challenge: The Situation threatens our identity

6.7_10 Negotiation Lessons Learned n View negotiation as a long process n Map objectives, strategies and tactics n Create time to plan and prepare n Select appropriate model and style n Spend time in the details n Learn to be self-confident n Adopt challenges and expectations n Listen and Learn n Represent all interested parties at table n Acquire a negotiation toolbox (Tactics, Caucus, Relationships, etc.)

6.7_11 Evolution of Negotiation and Conflict Resolution 1970 to to to _____ What Tools do you Carry in Your Negotiation Toolbox? Power Side by Side Problem Solving A Learning Conversation

6.7_12 What Tools Do You Carry in Your Negotiation Toolbox? Fill Your ToolboxBe Tough, But Be Fair n Karrass n Win/Lose n Take It or Leave It n Self-Confidence n Power n Preparation n Invent Options n Strategy n Common Interests n Fly on the Wall n Aim Higher - You Come Out Better n Body Language n Planning n Traits n Listen n Bogey n P.O. # n Options n Find the Better Deal n Nibble n Make Love n Research n Brainstorming n Ethics n Satisfaction n Strategic Partners n Caucus n BATNA? n Tactics n Electronic Commerce n Long-Term Agreements n Cost Drivers n GTY Sharing n Standards n Make War n Relationships n Continuous Improvement n Separate People/Issues

6.7_13 Key Negotiation Activities n Prepare yourself and your team n Know the other party n Know the big picture n Identify objectives n Prioritize objection n Create options n Select fair standards n Examine alternatives n Select your strategy, tactics and counter tactics n Develop a solid and approved team negotiation plan n Prepare the negotiation memorandum n Send the memorandum to the other party n Offer to write the contract n Prepare the contract n Prepare negotiation results summary n Obtain required reviews and approvals n Send the contract tot he other party for signature n Provide copies of the contract to affected organizations n Document lessons learned n Prepare for implementation Planning the Negotiation n Determine who has authority n Prepare the facility n Use an agenda n Introduce the team n Set the right tone n Exchange information n Focus on objectives n Use strategy, tactics and counter tactics n Make counter offers n Document the agreement or know when to walk away Conducting the Negotiation Documenting the Negotiation and Forming the Contract

6.7_14 Negotiation Best Practices n Understand that contract negotiation is a process, usually involving a team effort n Select and train highly skilled negotiators to lead the contract negotiation process n Know market and industry practices n Prepare yourself and your team n Know the other party n Know the big picture n Identify and prioritize objectives n Create options --be flexible in your planning n Examine alternatives n Select your negotiation strategy, tactics and counter tactics n Develop a solid and approved team negotiation plan n Determine who has the authority to negotiate n Prepare the negotiation facility at your location or at a neutral site n Use an agenda during contract negotiation Best Practices

6.7_15 Negotiation Best Practices n Set the right tone at the start of the negotiation n Maintain your focus on your objectives n Use interim summaries to keep on track n Do not be too predictable in your tactics n Document your agreement throughout the process n Know when to walk away n Offer to write the contract n Prepare a negotiation results summary n Obtain required reviews and approvals n Provide copies of the contract to all affected parties n Document negotiation lessons learned and best practices n Prepare a transition plan for contract administration n Understand that everything affects price n Understand that Ts and Cs have cost, risk and value n Tailor Ts and Cs to the deal, but understand the financial effects on price and profitability n Know what is negotiable and what is not Best Practices