1. How to Become a Master Negotiator Rich Russakoff Bottom Line Consultants

2. Ten Key Concepts of Negotiation  What is negotiation and why is it important to you?  What:  Why:  Other:

3. Ten Key Concepts of Negotiation  Barriers to successful negotiations  Are you a prisoner of your past successes?  Win-Win – What can I give them?  Win-Lose – Put something back on the table  The Salami – Ask for something in return  Examine your perceptions

4. Ten Key Concepts of Negotiation  Barriers to successful negotiations  The major reasons negotiations fail:  Poor listening  Too few questions asked  Not separating fact-finding from negotiating process  Premature judgment  Search for a single answer  Thinking their problem is not yours  Asking for a no

5. Ten Key Concepts of Negotiation  Barriers to successful negotiations  Defensive v. Supportive mindsets  No BATNA  Best Alternative to a Negotiated Agreement

6. Ten Key Concepts of Negotiation  Defeat the problem, not your opponent  The problem with positional negotiations  Hard versus soft bargaining or…  Why it’s right, why it’s wrong  How to deal with hardball players  Lawyers and husbands buying jewelry

7. Problem – Positional Bargaining: Which game should you play? Solution – Change the Game. Negotiate on the Merits SoftHardPrincipled Participants are friends Participants are Adversaries Participants are Problem-solvers The goal is agreementThe goal is victoryThe goal is a wise outcome reached efficiently and amicably Make concessions to cultivate the relationship Demand concessions as a condition of the relationship Separate the people from the problem Be soft on the people and the problem Be hard on the problem and the people Be soft on the people, hard on the problem

8. Problem – Positional Bargaining: Which game should you play? Solution – Change the Game. Negotiate on the Merits SoftHardPrincipled Trust OthersDistrust OthersProceed Independent of trust Change your position easily Dig into your positionFocus on Interests, not positions Make OffersMake ThreatsExplore Interests Disclose your bottom lineMislead as to your bottom line Avoid having a bottom line Accept one-sided losses to reach agreement Demand one-sided gains as the price of the agreement Invent options for mutual gain

9. Problem – Positional Bargaining: Which game should you play? Solution – Change the Game. Negotiate on the Merits SoftHardPrincipled Search for the single answer: the one they will accept Search for the single answer: the one you will accept Develop multiple options to choose from; decide later Insist on AgreementInsist on PositionInsist on using objective criteria Try to avoid contest of will Try to win a contest of will Try to reach a result based on standards independent of will Yield to PressureApply PressureReason and be open to reasons; yield to principle, not pressure Getting to Yes, Fisher and Urv

10. Negotiation Exercise # 1

11. Ten Key Concepts of Negotiation  Time and western culture  Rushing to an inferior agreement  Use time to your advantage  The virtue of patience  Timeliness wins the day

12. Ten Key Concepts of Negotiation  Power, it’s all based on perception  Negotiators are people first  Trump power versus the clerk  The Colombo Approach

13. Tenant’s PerceptionLandlady’s Perception The rent is already too highThe rent hasn’t been increased in a long time With other costs going up, I can’t afford to pay more for housing With other costs going up, I need more rental income The apartment needs paintingHe has given the apartment heavy wear/tear I know people who pay less for a comparable apartment I know people who pay a lot more for a comparable apartment Young people like me can’t afford to pay high rentsYoung people like him tend to make noise and be hard on an apartment The rent ought to be low because the neighborhood is run down We landlords should raise rents in order to improve the quality of the neighborhood I am a desirable tenant with no dogs or catsHis hi-fi drives me crazy I always pay the rent whenever she asks for itHe never pays the rent until I ask for it She is cold and distant; she never asks me how things are I am a considerate person who never intrudes on a tenant’s privacy Getting to Yes, Fisher and Urv

14. Ten Key Concepts of Negotiation  Knowledge is power - Dubai  Research or homework – role play; What does the other side really want?  The five P’s (Proper Preparation Prevents Poor Performance)  Create Value – 4hands – qc, designs, on time shipping, office in India, customer service, sales training

15. Ten Key Concepts of Negotiation  Must take it to a higher authority  If it’s in writing…so what?  Arrogance – (Take any lot – I’ve got 300)  Gandhi v. British Empire/Vietnam/South Africa  Just be fair to you…  I’m sorry, you’ll have to do better than that

16. Ten Key Concepts of Negotiation  Nurturing helpers:  I’m not sure I understand...  So what you’re really saying is...  Help me...  And because of that...  Do you mean...?

17. Ten Key Concepts of Negotiation  Nurturing helpers:  By that, you mean...?  And that would result in...?  It sounds like you want...  I’m lost.  I get the feeling that...

18. Ten Key Concepts of Negotiation  Nurturing helpers:  Good observation!  If I could do _______, what would you see yourself doing at that point?  After receiving information—″I appreciate your candor in sharing...″

19. Ten Key Concepts of Negotiation  Nurturing helpers:  Help me understand...  Tell me more  Sounds like we have a problem.  Good point  So, what you want from me is...  That’s important...

20. Ten Key Concepts of Negotiation  Questions make things happen  What questions do:  Get your opponent’s attention  Obtain information – who, what, why, where, when (inquire)  Give or imply information “I assume you know…” (statement)  Put thoughts in opponent’s mind  Ask for conclusion

21. Ten Key Concepts of Negotiation  Questions make things happen  Asking questions enables us to direct negotiations  You never lose control if you have another question  Use questions to gain time to think

22. Ten Key Concepts of Negotiation  How does listening gives you power?  Is it the core skill in negotiating?  What should we be listening for…and how  Listen for the purpose of evaluation  For patterns of reasoning and ideas  Listen for hot buttons  To build relationships  Gain knowledge and insights  Take notes, write down any key words  Use the body language of listening

23. Ten Key Concepts of Negotiation  How listening gives you power  Listening habits which cost us power  Premature dismissal of a subject as uninteresting  Faking that we are listening  Assuming we know what is being said  Listening for validation of our ideas  Listen only for facts  Letting emotion laden words arouse personal antagonism  Interrupting others when they are speaking

24. Negotiation Exercise # 2

25. Ten Key Concepts of Negotiation  Have a vested interest in a Win-Win outcome  Keep emotions in check  There are few one time negotiations  What’s wrong with a one-sided agreement?  Win-Win agreements stay together and build relationships

26. Creating the right climate Creates Defensive ClimatesCreates Supportive Climates EVALUATION  Appraising  Accusing  Judgmental  Indoctrinating  Correcting DESCRIPTION  Genuine requests for information CONTROL  To Change  To restrict  Persuade  Threaten PROBLEM ORIENTATION  Continuing redefinition  Mutual problem  Cooperative quest  Common Task  Plan with, not for

27. Creating the right climate Creates Defensive ClimatesCreates Supportive Climates STRATEGY  One-upmanship  Maneuvering  Gamesmanship SPONTANEITY  Uncomplicated motivations  Straightforward  Free interaction NEUTRALITY  Apathetic  Passive  Considered object, not person EMPATHY  Acceptance  Identify with problem  Share feelings  Opens his emotional reaction  Understanding  Confidence

28. Creating the right climate Creates Defensive ClimatesCreates Supportive Climates SUPERIORITY  Does not desire relationship  Does not desire feedback  Does not desire help  Make dependent EQUALITY  Mutual respect  Mutual trust  Permit growth and maturing  Mutuality CERTAINTY  Dogmatic  Teacher, not co-worker  Conformity PROVISIONALISM  Willing to experiment  Willing to investigate  Creative  Innovative  Accept feedback  Flexible

29. Ten Key Concepts of Negotiation  Tapping into your creativity and flexibility in making offers and finding solutions  Who should make the first offer  Don’t make an offer the other side can’t accept  The magic of what if…  Examples of creativity –Carytown Gallery  Put it in writing – The extended lease

30. Negotiation Exercise # 3

31. Ten Key Concepts of Negotiation  Summary  Preparation  Time  Emotion  Listen for opportunities/new directions  Questions control negotiations  Assumptions create barriers  Creativity

32. Ten Key Concepts of Negotiation  A lifetime code for negotiators  Negotiations are a continuous process, even after agreements are reached and papers are signed  I have an open mind  I am aware of my needs and equally aware of the needs of my opponent

33. Ten Key Concepts of Negotiation  A lifetime code for negotiators  I am flexible and able to quickly establish mutual goals and interests  I do not try to persuade opponents that their views are all wrong and should be changed  I present creative alternatives which meet my needs and the needs of my opponents

34. Ten Key Concepts of Negotiation  A lifetime code for negotiators  I am cooperative because cooperation creates mutuality of problem-solving which achieves harmony  I am competitive because competition can stimulate both sides in a negotiation to strive more efficiently for mutually desired benefits

35. Ten Key Concepts of Negotiation  A lifetime code for negotiators  I consider manipulation of people incompatible with the goal of harmony that can be reached through a blend of cooperation and competition.  I achieve my goals while making a meaningful contribution to the society in which I live.