2. Negotiating “Negotiating is the art of reaching an agreement by resolving differences through creativity”

3. References Creative Negotiating, Stephen Kozicki, Adams Press, 1998 Business Negotiating Basics, Peter Economy, Briefcase Books, 1994 “Diagnosing and Overcoming Barriers to Agreement”, Michael Watkins, HBS, 2000 “Negotiation Analysis”, Michael Wheeler, HBS, 2001

4. Negotiating Decisions Style Outcome Principles

5. Style zStyle is a continuum between two styles: yQuick yDeliberate yMiddle is compromise

6. Quick Style zNegotiate in a hurry zUse when you won’t negotiate with these people again zGet the best deal without regard to the other side’s “win” z Price main consideration

7. Deliberate Style z Use when long term relationship likely z Involves cooperation and relationship building to reach agreement z Needs much prep, hard work z May move in fits and starts

8. Outcomes zRealistic yBoth sides satisfied, win/win situation yUsually results from deliberate style zAcceptable yLikely to result from quick style ySomething is better than nothing yAlways ask for a better deal zWorst yWhen you’re too stubborn to be flexible yUsually from quick style

9. Outcomes zPredetermine the outcomes before you start negotiations, you have a better chance of getting a better result z“Think carefully, think creatively, and think ahead”

10. Principles z There are no rules yEstablish an agenda z Everything is negotiable z Ask for a better deal z Be creative z Learn to say “NO” yourself

11. Are you a Motivated Negotiator? zEnthusiasm yConfidence yEngaged zRecognition yAccomplishment yPat on the back zIntegrity yNo trickery yTrustworthiness z Social Skills yEnjoy people yInterest in others z Teamwork yBetter as a team ySelf-control z Creativity yAlways looking for ways to complete the deal

12. Negotiation Steps zInvestigate zPresentation zBargaining zAgreement

13. Step 1: Investigate z What do you want? z Who are the real parties involved. z What does the other side need? z Value to be created and who gets it? z Decide on style z What are the consequences of each choice.

14. Consequences of Not being Prepared zCan’t defend your position z Trouble evaluating the issues z Succumbing to pressure to end negotiation z Giving up too much too soon z Forgetting key details z Losing control of the process

15. Step 2: Presentation zPrepare other side’s case zPresent the reasons for your side better zPlanning sheet yIssues involved yRealistic, possible, worst

16. “The” Presentation zCreative title zReduce to “must know” items zKeywords zMini-speeches around keywords zVisuals z Don’t give concessions just to keep things going z Make note of concerns and keep going

17. Step 3: Bargaining zWhen in doubt, ask questions! zOpen questions zReflective questions zTactics z Ethics

18. Barriers to Agreement z Structural z Strategic z Psychological z Institutional z Cultural

19. Tactics zUse yWalk out y Substitution zDon’t use yEmotional outburst yArgue special case yPretend ignorance yPlay for time yNibble and retreat y“You go first” y Bad environment yDefer to higher authority yNot willing to make any changes y Silence yGood cop/bad cop

20. Do’s and Don’ts zDo’s yKeep your word yListen carefully yLeave room for maneuvering y Feel free to reject yConditional offers yProbe attitudes z Don’ts yMake early concession s yExtreme opening offer yUse “never” yMake other side appear foolish yUse “yes” or “no answers

21. Step 4: Agreement zArrangements should be neutral and comfortable zPay attention to what others say zScreen out all visual distractions zAsk open ended questions zListen to responses zProactive vs. reactive behavior

22. If Disagreement Persists zRecognize and list areas of disagreement z Rank the issues z Assess the value to each party z Compromise z Brainstorm solutions

23. A Good Negotiator Is.. zCreative zVersatile zMotivated zHas the ability to walk away Strive for…. Goal(1) + Limits (1)  Goal (2) + Limits (2)