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2. The Art of Negotiation
Presented by LIBA
Feb, 2017
V2.0

3. What is Negotiation?

4. Negotiation is a process of communication in which the parties aim to "send a message" to the other side and influence each other.
Definition

5. Negotiation
Something that we do all the time , not only for business purposes.
Usually considered as a compromise to settle an argument or issue to benefit ourselves as much as possible.
Not always between only two people: it can involve several members from two parties.

6. Two relatively distinct types of negotiation
Distributive negotiations
Integrative negotiations
Two relatively distinct types of negotiation

7. Distributive Negotiations
Often referred to as 'The Fixed Pie'
Usually involves people who have never had a previous interactive relationship, nor are they likely to do so again in the near future.
Example: Purchasing products or services, like when we buy a car or a house.
Ours and their interests are usually self serving.

8. Integrative Negotiation
The process generally involves some form or combination of making value for value concessions,
in conjunction with creative problem solving.
Form a long term relationship to create mutual gain.
Often described as the win-win scenario .

9. Therefore;
Agreements can be successfully implemented only if the relevant parties and interests have been represented in the negotiations.
So, all of the interested and affected parties must be represented. And, negotiators must truly represent and have the trust of those they are representing.

10. Is getting what YOU want from the other person……

11. It helps resolve conflicts…. with Maximum Profit* for both sides!
* at proper conditions.

12. Poor negotiation
skills LIMIT your
ability to reach
agreement

13. Importance of negotiations?

14. Negotiation
consist of
FOUR basic
components

15. 1.Preparation

16. 2.Objectivity

17. 3.Strategy
and Tactics

18. 4.Technique

19. Can you and your team name three things that make you a unique negotiate counterpart & business partner?

20. Information Needs Negotiators should know:
Other parties’ needs & interests
Available resources of the other party
Reputation and styles of the other parties
Ability and authority of other party to make agreements
Strategies & tactics the other party might utilize

21. Negotiation Game Plan
Important to be prepared for any situation – competitive or cooperative
Steps to Prepare for Negotiation
Organize
Thoughts
Identify Ideal
Outcomes
Develop Contingencies

22. Negotiation -Prepare, prepare, prepare! -Never let your ego negotiate.
What is involved
Know what your opposition wants
What is valuable to you
Approach - "People like to help nice people.
They like to hurt jerks." So be nice!
Be friendly!
-Prepare, prepare, prepare!
-Never let your ego negotiate.
-Always let the other person save face.
-Don't name a price first.
-Never accept the first offer

23. Negotiating Establish direct contact
Be fairly open with your intentions
Have confidence and power
Keep in control
Aim high
Remain flexible

24. Key Steps to an Ideal Negotiation Process

25. Key Steps to an Ideal Negotiation Process

26. Key Steps to an Ideal Negotiation Process
Information using
Assemble your case
Bidding
Each party states their “opening offer”
Each party engages in “give and take”
Closing the deal
Build commitment
Implementing the agreement

27. Getting Ready to Implement the Strategy: The Planning Process
Define the protocol to be followed in the negotiation
Where and when will the negotiation occur?
Who will be there?
What is the agenda?
Define the issues
Define your interests
Why you want what you want

28. Getting Ready to Implement the Strategy: The Planning Process
Analyze the other party:
Why do they want what they want?
How can I present my case clearly and refute the other
party’s arguments?
Know your limits and alternatives
Set your objectives (targets) and opening bids (where to start)

29. Planning to negotiate Relationship Add Value Goods- service Dialogue
Negotiation
Results
Win-win

30. Forces of Negotiation
Time – The person that has the most time wins. You are not
pressured into making decisions.
'The bad news is time flies. The good news is you're the pilot.'
(Yves Miserez)
Information – The more knowledgeable your are, the better a
deal you will get.
Options - Always keep your options open. Have a fallback
position. At the same time, don't give the other side too many
options. It helps to negotiate one issue at a time.

31. Six Paradigms of Human Interaction used in Negotiations.
I Win,
You Lose.
I Win,
You Win.
I Lose,
You Lose.
I Lose,
You Win.

32. No Deal
I Win

33. Obstacles to Negotiation
Sometimes people fail to negotiate because they do not recognize that they are in a bargaining position.
Or, they may recognize the need for bargaining but may bargain poorly because they do not fully understand the process and lack good negotiating skills.

34. Therefore;
Parties must be aware of their alternatives to a negotiated settlement
:Weaker parties must feel assured that they will not be overpowered in a negotiation.
:Parties must trust that their needs and interests will be fairly considered in the negotiation process.

35. Obstacles to Negotiation
Negotiation seems to bring conflicts .
Any misunderstanding that arises between them will reinforce their prejudices and arouse their emotions.

36. Therefore;
To combat perceptual bias and hostility, negotiators should attempt to gain a better understanding of the other party's perspective and try to see the situation as the other side sees it.

37. Obstacles to Negotiation
if the "right" people are not involved in
negotiations, the process is not likely to succeed.

38. Therefore;
Agreements can be successfully implemented only if the relevant parties and interests have been represented in the negotiations.
So, all of the interested and affected parties must be represented. And, negotiators must truly represent and have the trust of those they are representing.

39. To brush up your ‘win-win’ negotiation skills…
Preparation
Now, to brush up your ‘win-win’ negotiation skills, I would like to tell you how to prepare for negotiation. Preparation before negotiation is very important. Especially, when the negotiation was a very important one. There are basically 8 points you need to think through before the negotiation. 39

40. What is 'win-win' negotiation
For a negotiation to be win-win“,
both parties should feel positive about
the negotiation once it’s over.
What is 'win-win' negotiation

41. GOALS… What you want to get out of the negotiation?
What you think the other person wants?
In order to accomplish this ideal negotiation, first of all, you need think about the Goals of the negotiation. What do you want to get out of the negotiation? What do you think the other person wants?

42. TRADES…
What you and the other person have that can be traded for the purpose of negotiation.
What do you each have that the other wants?
What are you each comfortable giving away?
Once you know the goals you want from it, then you need to thing about Trades. What do you and the other person have that you can trade? What do you each have that the other wants? What are you each comfortable giving away? So both of you can be happy by giving and taking what each of you want.

43. ALTERNATIVES… If you don’t reach agreement with the other person,
what alternatives do you have?
Are these good or bad?
How much does it matter if you don’t reach agreement?
Does failure to reach agreement cut you out of future opportunities?
What alternatives the other person might have?
But this doesn’t always work so easily. So you need to think of Alternatives. If you don’t reach agreement with the other person, what alternatives do you have? Are these good or bad? How much does it matter if you do not reach agreement? Does failure to reach an agreement cut you out of future opportunities? And what alternatives might the other person have?

44. RELATIONSHIPS… What is the history of the relationship?
Could or should this history impact the negotiation?
Will there be any hidden issues that may influence the negotiation?
How will you handle these?
Relationships between the two parties are quite important too. You should search what kind of history of the relationship they have, could or should this history impact the negotiation? Will there be any hidden issues that may influence the negotiation? How will you handle these?

45. EXPECTED OUTCOMES…
What outcome will people be expecting from the negotiation?
What has the outcome been in the past, and what precedents have been set?
And then, you should think about Expected outcomes you would get out of this negotiation. What outcome will people be expecting from this negotiation? What has the outcome been in the past, and what precedents have been set?

46. THE CONSEQUENCES… What are the consequences for you of winning
or losing this negotiation?
What are the consequences for the other person?
The consequences: what are the consequences for you of winning or losing this negotiation? What are the consequences for the other person?

47. POWER… Who has what power in the relationship? Who controls resources?
Who stands to lose the most if agreement isn’t reached?
What power does the other person have to deliver what you hope for?
Power: who has what power in the relationship? Who controls resources? Who stands to lose the most if agreement isn’t reached? What power does the other person have to deliver what you hope for?

48. POSSIBLE SOLUTIONS… Based on all the consideration….
What possible compromises might there be?
And the last but not least, Possible solutions: based on all of the considerations, what possible compromises might there be?
Thinking through all these points to prepare thoroughly. It can lead you to the successful negotiaoin.

49. Summary We use negotiation in everything we do
Do it the best way to achieve maximum benefit
Planning is important when negotiating. Be prepared.
Only use knowledge and experience you have to achieve
your objective.
Have confidence Keep in control
Aim high; but don’t underestimate the opposition.
Concentrating on 10% positive issues will bring you much
further then being busy worrying on 90% negative issues.

50. To be successful in negotiations you must:
• Define your goals
• Be focused on interests
• Speak their language
• Communicate
• Be open-minded
• Be flexible
• Appearance
• Don`t worry!

51. Utilize Mind Maps
Brainstorm possible outcomes – areas of disagreement.
Think beyond simplistic outcomes.
Visualize and rehearse the many possible outcomes at various
negotiation choice points.
'Most people think of success in terms of getting.
Success, however, begins in terms of giving.' (Henry Ford)

52. How we throw overboard negative
language
DON’T SAY
SAY
Buy.
Commission.
Jargon.
Deal.
Problem.
Cheaper.
Expensive.
Sign.
Own.
Fees for service.
Clear words.
Opportunity.
Challenge.
More economical.
Investment.
Approve.

53. Summary on the Planning Process
'6 P Principle: Proper Planning and
Preparation Prevent a Poor
Performance.' (Bob Jacobson)