1. PRACTICAL NEGOTIATION SKILLSby
Jubeir Shamte
Head of Commercial Management – Projects
Wasl Asset Management Group
30th January 2012

2. What is negotiation?
Negotiation is a process of communication between two or more parties trying to reach an agreement.

3. Objective of the negotiation
The objective of the negotiation is to inspire another person to do something he or she may not want to do.
Some of the tactics of negotiation includes:
Persuasion
Respect
Fear

4. Balance of Power

5. Types of negotiation
Distributive
Integrative

6. Irrational tendencies in negotiation
Unrealistic Expectations
Under-confident
Overconfident
Escalation of Commitments
Anchors
Frames

7. Fighting irrationality
Best Alternative To a Negotiated Agreement [BATNA]
Reservation Price
Target
The importance of information
Interests vs Position
Fairness
Trust

8. Substance of price negotiation
STRATEGIES AND TACTICS FOR EFFECTIVE NEGOTIATIONS
Substance of price negotiation
Price
Terms
Timeframes
Warranties
Remedies

9. Negotiating Claims Decide strategy Get to know the opposition
Gottas
Wannas
Get to know the opposition
Build relationship
Check contractual and legal entitlements of the claims
Indentify correspondences and records relating to the claim matter
Exchange information
Check facts referred to in the claim
Prepare detailed response to the claim

10. Contd...
Fix agenda and time scale
Negotiation almost impossible except to face to face meetings. Meetings usually are without prejudice
Choose negotiating team with care
Limit number of attending negotiation meetings
Be very familiar with the facts relating to the dispute
Attack weak points in the claim
Do not appear to be too inflexible or too rigid
Score points early
Be prepared to make concessions in response to the other party making concessions
Reach agreement on individual items but subject to overall agreement

11. Contd...
Do not be personally abusive to the opposition
Do not be too proud to admit when you are wrong
Do not allow meetings to go on too long
Always commit to writing agreement reached at the meeting
Do not get hanged up on single negotiated item
Defuse threats, ultimatums, lies and other hard balls tactics
Discover the truth even when other side want to conceal it
Negotiate successfully from a position of weakness
Recognize when the best move is to walk away
Be patient: Negotiation is full of Ups and Downs

13. Questions & Answer

14. Thank you