1. Slide 1 Glenn Faulkner Influence Negotiation Building Stronger Relationships & Trust Building Stronger Relationships & Trust sm 703 204 1669 gfaulkner@WatershedAssociates.com presented to NIRI Richmond Chapter

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6. Slide 6 Think big, ask for what you want Goal MDO B/L LAA BATNABATNA Defining Your Negotiating Opportunity MDO – Most Desired Outcome LAA – Least Acceptable Agreement B/L – Bottom Line BATNA - Best Alternative to a Negotiated Agreement

7. Slide 7 Are the goals aligned? Think big, ask for what you want MDO LAA Yours LAA MDO Theirs Mutual Motivation And Determine What They Need

8. Slide 8 Never say No…or Yes NO! NO! NO! The Negotiated Yes…"Yes, if"  Allows you to say yes  Validates your opening offer  More engaging  More likely to generate creativity YES!  Invalidates last offer  Violates trust  Cuts off creativity  Removes give-and-take NO!  Ends discussions  Is face losing

9. Slide 9  Give value, but don’t rush  Progressively smaller concessions  Allow counterpart a sense of satisfaction Make smaller concessions  And don’t forget to summarize early and often

10. Slide 10 A 300 B 300 C 300 D 300 E 300 PatternMDO 1 2 3 Goal LAA = 150 300 200 275250225 200 295285265 200 250220205 200 Make smaller concessions Concession Patterns

11. Slide 11 The Power (and risk) of time Always be patient  A quick solution may be a bad solution  Patience softens expectations and encourages flexibility  Patience allows them time to accept tough choices  Beware, their patience may compel you to make unnecessary concessions  Deadlines force concessions –Establish deadlines for them –Probe any deadline they set

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13. Slide 13 Don’t negotiate too early in the process MDO LAA Yours LAA MDO Theirs No perceived value in agreeing Always be patient

14. Slide 14 Always think creatively  A low cost to You but a high value to them  …or a low cost to them, high value to you  Interests and needs, not positions or demands  Put yourself in their shoes  Avoid zero-sum exchange vs. value creation  Will be different from situation to situation Creative concessions are “painless”

15. Slide 15 Always think creatively  Percentage of highly creative people at the age of 5  Percentage of highly creative people at the age of 10  Percentage of highly creative people at the age of 22, 32, and 42 When did we stop being creative? 90% 10% 2%

16. Slide 16  What does the counter party want?  Peer organizations  Past negotiations  Legitimacy-  Industry Standards  Third Party Measurements  Newspapers and magazines Sources of Information Prepare, prepare, prepare

17. Slide 17 The most powerful thing you can do is make offers and proposals.  You cannot negotiate an argument  You can negotiate proposals  Proposals keep the other side engaged  An offer or proposal compels a response:  Accept  Counteroffer  Probe

18. Slide 18 1. “If we can find a solution on this one item, can we get a final agreement today?” 2. “What if we…” (the hypothetical) 3. “In a perfect world, what would this look like to you?” 4. Maybe you need only to acknowledge the objection You find out by probing: When THEY say “No”: Handling Objections Never say No…or Yes

19. Slide 19 1. Need more information on the other side? 2. Need more information on Your solution, position, product, organization, market, etc.? 3. Need more information on stakeholders? 4. Are you talking to the right person/people? 5. Maybe this is not a good agreement? 6. Should you execute your BATNA? How well did you prepare? When THEY say “No”: Handling Objections Never say No…or Yes

20. Slide 20 So Remember Good Negotiating ! Glenn Faulkner  Think big and ask for what you want  Be patient do not fill the silence  Be creative, look for low cost high value  Preparation and legitimacy advance your position  Use linkage through the negotiators yes