CLP Negotiation Skills Getting what you want without losing the relationship

Objectives Understand the key techniques for formulation of strong business relationships Prepare and plan negotiations in a structured and professional manner Understand how to structure a negotiation and maintain control of the phases and the agenda Have the confidence to obtain the best agreement for the business Use a range of tools for influence Professionally handle tough negotiation tactics which are used against us Deal with changing scenarios that require adept, sensitive and firm negotiation.

Topics Managing Relationships Initial Negotiations Negotiating When Change Occurs

Data Process Relationship Who are you? What are our objectives? What is important to them and us? What will success do for us? What is this negotiation about? What do we both have in common? What do we both want? Let’s do it! How can we work together on this? What would be the best way to resolve this?

How people make decisions logic emotion justify decide

Building a Relationship RELATIONSHIP means TRUST TRUST means INFORMATION TRUST = competence + like

Logic Extrovert Introvert Emotion 10 10 10 10 Analytical Driver Amiable Expressive 10 10 10 Emotion

characteristics Bold Clear Assertive Objective Affirmative Detached Determined Clear Objective Detached Showing no bias Cheerful Spirited Buoyant Uplifting Still Tranquil Calming Soothing

we can be seen as Aggressive Stuffy Controlling Indecisive Driving Overbearing Intolerant Stuffy Indecisive Suspicious Cold Reserved Excitable Frantic Indiscreet Hasty Flamboyant Docile Bland Plodding Reliant Stubborn

personality dress code Power dressing Suits Well pressed To impress Designer Conservative Dark suits 3 piece Traditional Relaxed Jumpers Tweed Casual Earth colours Statement Trendy Louder Brighter colours Different

the environment we create Look tidy Impressions Power desk Certificates Equipment Famous photos Very tidy Spreadsheets Gant Charts Technical photos No clutter Plants Sofas Charity info Coffee machine Organised chaos Disorganised Art Gizmos Friends / family Inspiring quotes

dealing with Blues-Analytical Be punctual Plenty of facts and figures Lots of data and research Product information Statistics Leave information with them Confirm bookings in writing Know your competition No social chit chat Good customer care Find out about their business No gimmicks

dealing with Reds-Driver Prepare well Direct questions Be punctual Plenty of product knowledge Examples Be professional No social chit chat Not too many facts and figures May it easy for them by offering service Give “whats in it for them”

dealing with Greens-Amiable No jargon No pressure, empathise Be on time No direct questions More casual approach Testimonials Not too much data Seek out opinions Be friendly and sincere Listen Give them time

dealing with Yellows-Expressive Enthusiasm Visuals Be creative Seek out their opinions Give them more than one option Friendly Plenty of social chit chat Let them talk Use humour Not too many facts and figures

Get them to talk “What is your view of the situation?” “What are the most important points for you?” “What is your ideal solution?” “Why is that important for you?” “How can I help in the short, medium and long terms?” “Can you prioritise?”

Managing First Impressions Initial thoughts 30 seconds? 2 Minutes? 20 Minutes? Timing – pausing / filling gaps / rhythm Avoid vacuity – go beyond small talk Get them to talk…they’ll like you more Tone / Visual / Words 59% 38% 7% KNEW SOMEONE WHO WAS A REAL BORE – ALWAYS NEGATIVE RESPONSES. YOU GRAVITATE AWAY FROM THEM. So what do you do then? Not much. Do you play golf? No, not really. What’s you’re favourite sport? I quite like all of them….COULD BE A GREAT AND INTERESTING PERSON, BUT NOT WORTH THE TIME TO FIND OUT What does 55 – 38 - 7 stand for? And what are the implications of this? SMILE A LOT IN THE FIRST 30 SECONDS AND ASK ONE OR TWO OPEN-ENDED QUESTIONS. AND BE ANIMATED!!! Think of people at parties you really like – often friendly and charming, but also they let you do a lot of the talking Don’t get nervous if you cannot get into conversation straight away – it’s catching and everyone can sense it. Just be cool, but concentrate on relaxed body language and active listening – it will help you get in anyway.

Preparing our approach

Prepare your case Facts & examples What are their main worries? Options Preventative actions to stop it going wrong Something for them

Negotiating

Preparation Objectives Context Power Arguments Method

Context Power Arguments What is the past? What is the future? Who are the key players? What else are they negotiating? What is my carrot? What is my stick? What is my banana? What are the main benefits I am offering? What are the unexpected extras I am offering? How am I reducing the risk to enable an easy decision?

Target the other side’s underlying interests Method Don’t jump in feet first Hold back from saying what you really want to say… your objective early on is to get permission to say what you really want emotion logic Target the other side’s underlying interests

Preparing for Negotiation DEFINE OUTCOME What will success do for us? 1. BACKGROUND History, personalities, relevant info. 2. SPECIFY OBJECTIVES Ideal, Realistic, Fallback BANANA 3. ASSESS THE POWER What is important to them? What is important to us? 4. DECIDE STRATEGY How to build relationship?  Tactics  Agenda 5. PLAN ARGUMENTS What are your strengths and weaknesses? 6.

IDEAL REALISTIC FALLBACK Planning ! = REMEMBER! Keep the gaps between your positions fairly equal. Be prepared to justify all three positions. Don’t be surprised at the gap between their opening position and yours.

ALWAYS KEEP A BANANA IN YOUR POCKET! When to Walk Away Typical BANANAS: Someone else you can do a deal with Option to do without the item being negotiated Ability to defer the deal to a later date Alternative solution The Best AlterNative to A Negotiated Agreement ALWAYS KEEP A BANANA IN YOUR POCKET!

Phases in Negotiations Opening Signals Package Bargain Agree

Creating Movement Signals Amended Proposals Packaging Bargaining Closing Contracting

Creating Movement Positions Needs Shared Needs The P-I-N Triangle Interests Shared Needs The P-I-N Triangle Positions Needs Take a Cisco difficult situation from them and examine it using this model. Exposing shared interests and needs will create space for movement on positions.

Working Towards Agreement Important to us Important to both of us Less important to us and them Important to them Start with the Lubricators Deal with the Difficult Issues Don’t sign off the Lubricators until you have dealt with the Difficult Issues THEIR LEVERS DIFFICULT ISSUES LUBRICATORS OUR LEVERS

Building Rapport You want this person on your side of the bridge. Do you: Throw a lasso over and pull them Call them over to your side Meet them halfway across OR WHAT? Draw yourself standing where you feel you should.

Rapport Breakers Talking more than listening Formal-speak Parental language Using “irritators” Doing their thinking for them Arguing Being dogmatic

The Hidden Language of Signals We would find it extremely difficult to meet that deadline. - Not impossible. I am not empowered to negotiate on that. See my boss. We never negotiate on price. We do negotiate what you get for the price. We do negotiate everything else. We’re not prepared to discuss that at this stage. We can discuss it tomorrow. I doubt I could get agreement on that. You need to help me to make a case for it.

Signals Listen out for underlying interests that you can use later as leverage Never accept a refusal or blockage, test it as a signal Listen for easy quick hit successes, longer haul topics and no-gos

Sample Signals “We never admit liability” “We could not produce that quantity in that time” “It is not our policy to discuss discounts, and even if we did they certainly would not be 10%” “Our price for that quantity is £x” We are not prepared to discuss that at this stage” “These are our standard terms and conditions” “We would find it extremely difficult to meet that deadline” “Our production line is not set up to meet with that requirement” “I am not empowered to negotiate this price”

Package link apparent concessions Underlying Interest Low Risk decisions

Bargain only Bargain near the end show a willingness to move “If ..”

Push or pull? KUNG FU JU JITSU You are wrong because … I disagree because … You need to re-think … You don’t understand the situation … No, that’s not right … You shouldn’t take that approach You haven’t considered … It won’t work because We are saying almost the same thing … You are right to point that out, which is why I … Is your approach achievable within the cost/time constraints? I think you are clarifying this for me. What if … I understand and you are right. But what else can we do? I like that. How about we incorporate that idea.

Awkward People If People You Then go quiet on you ask questions. if they refuse to answer, ask them WHEN and HOW an answer will be available make demands listen, slow down, state that you want to achieve their demands and that to do that you need to ask some questions first are over friendly and complimentary smile, be friendly, and return to the business agenda unpredictable, changing the subject or changing mood say you are unsure of how to proceed because you are getting different signals impatient and want a quick decision say you can give them a quick decision which will partly solve the problem but you’d rather give them a decision that will fully solve the problem

Tips for Breaking Deadlock don’t argue or defend probe on the underlying issues keep stating that you are willing to work out an agreement change location, people, subject try incentives know your walk away point and call the bluff backtrack and review push for what you can agree on

Handling Objections empathy (rephrase) decide when general now, detail later back to agenda specifically you seem worried about... if I.... could you.... ? underlying concern agree recommendation next steps generalised statement options recommendation next steps

How to say NO I understand (pause, not BUT) currently (state facts) therefore (difficult / impossible) I suggest (give 2/3 options) your choice?

Being Tough, Nicely “I understand In order to achieve that I need… How can you help?” “Currently the situation is … Therefore it is impossible for me to … What I can do is …” “What you are asking for requires a re-assessment of our whole position. To move forwards I suggest …” “I want to be direct and honest with you about what we can and cannot achieve. We cannot achieve X, we can however achieve Y” “I am prepared to negotiate further and move my position. However, I require movement from you in return.” “That’s as far as I am willing to go at the moment. I can get back to you with further ideas, or we can perhaps discuss another issue.” “I can certainly commit to these broad aims, with respect to detail we need to construct a timetable for discussion.” “I am prepared to consider your requests though I think achieving all of them will not be possible. Can you prioritise this list for me please?” “I believe we can reach an agreement but we will both have to accept that we have to move our position. To get an agreement I am prepared to move, how far are you prepared to move?”

Some golden rules Uncover real reasons underneath (why why) Ask for things you know they will refuse then ask for something you really want Smile even when you say no Get agreement in principle Listen for BASIS of argument and use it back Collect all requirements before arguing or replying Ask for something more than once Disclose more information to get the moral high ground Be happy with compromise, let them feel they have made you move Trade offs (if I ... will you ...)

Negotiating Bad News current situation downside remedy benefits facts, numbers downside impact on them remedy simple benefits to them next steps immediate

Handling Pressure stay with logic go back to agenda identify what can agree on suggest steps for resolving disagreements seek agreements in principle if attacked personally then address their criticism as another issue for discussion

Handling Pressure If They Then You Say don’t argue, ask a question !! criticise your suggestion what do you suggest? change the subject do you agree on the issue that needs solving? criticise you personally we can either solve this issue or discuss my performance, what do you want to discuss? say they are not convinced what do I need to do to convince you of my solution? say they need you to do xxx if I do xxx will you back my suggestions? don’t argue, ask a question !!

CLP Negotiation Skills Thank You