Overview of the workout TimeContentMethod / Person 10 minutesWelcome & objectives Trainer led 15 minutes Warm Up - negotiation activity Group activity 15 minutesWhat is negotiation Trainer led 20 minutesPreparing to negotiate Trainer led Group activity 15 minutesOpening the negotiation Trainer led Group activity 30 minutesNegotiating the deal Trainer led 10 minutesBreak 5 minutesFinalising the deal Trainer led 60 minutesRole Plays Group activity 10 minutesCool Down Period Trainer led

We negotiate every day. How good are you at it?

So what is negotiation? Positive and Productive Conflict Resolution

Some negotiation wisdom Sun Tzu Ghandi ‘An eye for an eye and we all go blind’ ‘The best general is the one who never fights’

The negotiating table

The negotiation table - ideal parameters Your Ideal (what you want) Their Ideal (what they want )

The negotiation table – worst case parameters Your Ideal (what you want) Your limit

The negotiation table – worst case parameters (2) Your Ideal (what you want) Your limit Their Ideal (what they want ) Their limit Scope for Bargaining

When Not to Negotiate ‘BATNA’ “If you can do better through negotiating, negotiate. If you can’t, don’t’.” Steven P. Cohen Your Ideal (what you want) Your limit Their Ideal (what they want ) Their limit Best Alternative To a Negotiated Agreement

Consider when you’ll walk away Identify your BATNA Research your client’s BATNA Do signal to the client that you have valuable alternative options Look to improve your BATNA constantly Don’t reveal your BATNA Engage in bidding wars Don’t lie about your BATNA What to doWhat not to do Your BATNA tells you when to walk; not when to sign

A model for negotiation Prepare Research The People Objectives & Game Plan Anticipate Objections Open Build Rapport & Trust Open the Negotiation Negotiate QuestionProposeBargain Manage Objections Finalise Close the Deal Build the Relationship

“In preparing for a battle I have always found that plans are useless but planning is indispensable.” Preparation is key to most things Dwight D. Eisenhower Prepare Research The People Objectives & Game Plan Anticipate Objections

Give adequate time to prepare Negotiation 10% Preparation 90%

Preparation is the most important element Prepare Research People Objectives & Game Plan Anticipate Objections Information – facts and figures History / Track Record The market / competitors

Preparation – the people Who is involved: other party?  Level of authority - the same?  Who else is involved?  Do we know any ‘insiders’ Who is involved: your team  Who do you need to involve?  Sufficient level of authority? What are their drivers?  Business drivers  Emotional / political drivers Prepare Research People Objectives & Game Plan Anticipate Objections

Setting objectives before every negotiation is critical BATNA What you must achieve TARGET What we think we’ll achieve STRETCH What we’d love to achieve Prepare Research People Objectives & Game Plan Anticipate Objections

Objectives - write them down to be clear VARIABLEBATNATARGETSTRETCH PriceAsking price5% off10% off Extras (carry case) Included included SoftwareSelf install Pre installed Activity Think of a negotiation you are currently involved with. List all the variables, then write down your BATNA, target and stretch goals You have 5 minutes – be prepared to share with the group

Game Plan - who has the power? Where is the balance of power? How much do they need us? How much do we need them? What is the least I think they’ll accept / pay? What are their objectives and how are they rewarded? What is their best alternative? What is our best alternative? Who has the greater urgency / time pressure? Advantage You Advantage Them Co-operate Prepare Research People Objectives & Game Plan Anticipate Objections

Game Plan – planning the perfect negotiation How should we open the negotiation? What questions do we need to ask? What information is missing? Prepare Research People Objectives & Game Plan Anticipate Objections

Be clear on your game plan...and stick to it

Anticipate objections Prepare Research People Objectives & Game Plan Anticipate Objections Put yourself in their shoes: What would you be objecting to?

Plan a live negotiation 1.Think of a deal you are negotiating / will be negotiating 2.Go through the 4 step process for effective preparation - research; people; game plan & objectives; anticipate objections 3.Make notes 4.You have 10 minutes 5.Everyone will present their preparation to the group 6.Feedback and discussion will follow

Opening the negotiation Prepare Research The People Objectives & Game Plan Anticipate Objections Open Build Rapport & Trust Open the Negotiation Negotiate QuestionProposeBargain Manage Objections Finalise Close the Deal Build the Relationship

Focus on building rapport Open Build Rapport & Trust Open the Negotiation Small talk is actually Big talk Use your voice volume, tone, speed Control your body language Keep eye contactSmile!!

Body language – how to read it Body LanguageWhat They /You Could Mean The surprised gape‘You must be kidding’ Preparations to leave (closing notebook, reaching for bag/briefcase, putting on jacket) ‘I’m going to walk away if you don’t give me a concession’ Inclining body away Downplaying your importance/trying to annoy you Folding arms Closing down (or ‘I’m just comfortable this way’) Looking down or awayWas that a lie? Looking at each other You’ve hit an important area Looking for the leader to make a move/concession Turned up corner of mouth/avoiding eye contact/deep breath/shrug of shoulders ‘You are pushing me too far’

Body Language No-No’s The finger jab - aggressive Folding arms – lack of interest Slouching - unresponsive Flitting eyes - nervousness Fidgety hands - nervousness Weak or dry voice - nervousness

Open Build Rapport & Trust Open the Negotiation Open the negotiation with a Shared/Guiding Vision Sets the tone for the negotiation Diffuses tension Disarms aggressors Gives you a ‘haven’ to return to when things get tough Keeps difficult people in check Helps close the deal

Take control and open the negotiation Often, opening the negotiation can get you a better outcome It is good to be honest and lay your cards on the table The 1st offer is the end outcome over 85% of the time! Write down your opening offer You can refer back to it You can use it as your ‘anchor’ in the negotiation process Might show how flexible you’ve been Can help you win more important battles Open Build Rapport & Trust Open the Negotiation

Negotiating the deal Prepare Research The People Objectives & Game Plan Anticipate Objections Open Build Rapport & Trust Open the Negotiation Negotiate QuestionProposeBargain Manage Objections Finalise Close the Deal Build the Relationship

Effective negotiators question and listen more Negotiating BehaviourSkilled Negotiators Average Negotiators Effective Questions: Questions as % of all negotiating behaviour 21.3%9.6% Effective Listening: Testing for understanding 9.7%4.1% Summarising:7.5%4.2% Negotiate QuestionProposeBargain Manage Objections

Effective questions help ‘unpack their suitcase’ =

Questioning techniques Plan your questions in advance In the Game Plan It keeps the questions sequential and related Keep it conversational (avoid inquisition) Ask with a purpose – you only have so many questions Use their frame of reference – keep it relevant to them Keep them jargon free Ask general questions, then specific questions on a topic Relate to any cultural differences

When proposing... Propose your offer Explain why it is a good offer Summarise Invite a response Negotiate QuestionProposeBargain Manage Objections

When receiving a proposal, never interrupt Question the offer Clarify the points Summarise where you stand Negotiate QuestionProposeBargain Manage Objections

In case you have to bargain, be prepared What concessions might you have to make to get what you want? Give in areas that are high value to them and low value to you Don’t concede if you think it will be hard to sell internally / to your boss Negotiate QuestionProposeBargain Manage Objections

Don’t bargain unless you need to Only bargain if your proposal is not accepted The fundamental rule is to trade  If you give something; get something in return.... “if we...then you”  You should always have an answer to the question - What did you get in return? Negotiate QuestionProposeBargain Manage Objections

Dealing with hard bargainers Ask questions Articulate their perceptions & interests – find joint ones Suggest joint problems exist Be reasonable but firm Point out bad behaviour Develop alternatives – find new options Give in Get emotional Let your ego get in the way What To Do What Not To Do Negotiate QuestionProposeBargain Manage Objections

Close the deal Send a courtesy within 24 hours Work with internal teams to finalise the contract and circulate to the parties involved Take ownership of the contract / document - whoever controls the document often controls the discussion Do not let the other party write the contract or issue notes from the meeting (particularly on crucial points) Finalise Close the Deal Build Relationship

Look to build the relationship Finalise Close the Deal Build Relationship Track & measure the success of the deal Celebrate successes along the way Look for new opportunities together

Time to practice – role plays

Any questions?