seal the deal by negotiating a win offer and respond with confidence. heighten the speed and skill...

Seal the Deal by Negotiating a Win

Seal the Deal by Negotiating a Win

Offer and respond with confidence. Heighten the speed and skill with which

you build win-win agreements.

Seal the Deal by Negotiating a Win

Win-Win Negotiations

Main Ideas• Power Negotiations• Critical Elements of Negotiating• Negotiating and Personality Type Styles• Tactics and Counter tactics of Negotiating

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

• Underlying Facts About Negotiating– You are negotiating all of the time

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

• Underlying Facts About Negotiating– Anything you want is owned or controlled by someone

else

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

• Underlying Facts About Negotiating– Predictable responses to strategic maneuvers and

gambits

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

• Underlying Facts About Negotiating– Three critical factors to every negotiation

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

• Underlying Facts About Negotiating– Different personality styles must be accounted for in

negotiating

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

• Simple Rules of Win-Win Negotiating– Include all of the issues

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

• Simple Rules of Win-Win Negotiating– Get to know the other person

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

• Simple Rules of Win-Win Negotiating– Never assume that money is the bottom line

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

Three Stages of Every Negotiation:• Establish negotiation criteria

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

Three Stages of Every Negotiation:2.Gather information about the other side

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

Three Stages of Every Negotiation:3.Reach for the compromise and find the win-win

situation

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

Requirements of a good negotiator:• Know that negotiation requires interaction

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

Requirements of a good negotiator:• Desire to acquire negotiating skills

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

Requirements of a good negotiator:• Understand principles and gambits

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

Requirements of a good negotiator:• Practice

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Seal the Deal by Negotiating a Win

Power Negotiations – An Art Form

Requirements of a good negotiator:• Desire to create win-win outcomes

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Seal the Deal by Negotiating a Win

Critical Elements of Negotiating

• Power

• Information

• Time

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Seal the Deal by Negotiating a Win

Power: Understanding It and Gaining It

1st critical element = Power• Possibly the most important element• In any negotiation:

– One is controlling (has power)– One is being controlled (no power)

• Eight types of power

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Seal the Deal by Negotiating a Win

Power: Understanding It and Gaining It

Eight Types of Power• Legitimate Power• Reward Power• Punishment Power• Reverent Power

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• Charismatic Power• Expertise Power• Situation Power• Information Power

Seal the Deal by Negotiating a Win

Power: Understanding It and Gaining It

Eight Types of Power• Legitimate Power

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Seal the Deal by Negotiating a Win

Power: Understanding It and Gaining It

Eight Types of Power2.Reward Power

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Seal the Deal by Negotiating a Win

Power: Understanding It and Gaining It

Eight Types of Power3.Punishment Power

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Seal the Deal by Negotiating a Win

Power: Understanding It and Gaining It

Eight Types of Power4.Reverent Power

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Seal the Deal by Negotiating a Win

Power: Understanding It and Gaining It

Eight Types of Power5.Charismatic Power

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Seal the Deal by Negotiating a Win

Power: Understanding It and Gaining It

Eight Types of Power6.Expertise Power

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Seal the Deal by Negotiating a Win

Power: Understanding It and Gaining It

Eight Types of Power7.Situation Power

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Seal the Deal by Negotiating a Win

Power: Understanding It and Gaining It

Eight Types of Power8.Information Power

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Seal the Deal by Negotiating a Win

Managing Information

2nd critical element = Information• More information = more power• Gathering information:

– Ask open-ended questions– Keep repeating a question– Question other people– Bring in an expert– Carefully select the negotiation location– Shop around

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Seal the Deal by Negotiating a Win

Managing Time

3rd critical element = Time• Flexibility and concessions come with pressure and

time– Higher pressure = worse outcome in negotiations– 80 percent of concessions occur in the last 20 percent

of negotiation time

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Seal the Deal by Negotiating a Win

Negotiating and Personality Types/Styles

To be a successful negotiator:• Understand personality types/styles • Adapt negotiation tactics to personality

types/styles

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Seal the Deal by Negotiating a Win

Negotiating and Personality – D I S C

• Negotiating types / styles based on personality:• “D” – Pragmatic• “I” – Extrovert• “S” – Amiable• “C” – Analytical

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Seal the Deal by Negotiating a Win

Pragmatic – “D”

• Street fighters• Go for what they want• Certain that there are “winners”

and “losers”• Want to be “winners”• Fight hard and see little need for concessions• Negotiation challenge:

Hold a fixed position34

Seal the Deal by Negotiating a Win

Extrovert – “I”

• Enthusiastic, often overly so • Lose sight that others are not

as enthusiastic• Negotiation challenge:

– Often ignore feelings of othersin a negotiation

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Seal the Deal by Negotiating a Win

Amiable – “S”

• Pacifiers• Goal: make everyone happy, not

necessarily win the negotiation• Dread high pressure encounters• Long for a solution, even if it doesn’t meet their

requirements• Negotiation challenge: easily swayed

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Seal the Deal by Negotiating a Win

Analytical – “C”

• An executive by nature• Rigid in negotiation• Reluctant to be flexible• Precise on the details• Concerned with underlying principle of any issue• Negotiation challenge: Inflexibility

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Seal the Deal by Negotiating a Win

Tactics and Counter Tactics

• What are the tactics and counter tactics of negotiating?– There are many, we will review the tactics and how to

counter them next.

• Why are they important for me to understand?– Know when to use them and how to respond when they

are being used on you.

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Seal the Deal by Negotiating a Win

Tactics and Counter Tactics

Will I use all of these?• Probably not. Use what is appropriate based on the

situation and the personality type of the other players.

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Seal the Deal by Negotiating a Win

Tactics and Counter Tactics

• Nibbling• Hot Potato• Higher Authority• Set-aside Gambit• Mediator• Never Take the First Offer

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Seal the Deal by Negotiating a Win

Tactics and Counter Tactics

• Good Guy / Bad Guy• Feel, Felt, Found• Smart / Dumb• Service Value• Walk Away• Flinching

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Seal the Deal by Negotiating a Win

Tactics and Counter Tactics

• Trade-off Principle• Vise Technique• Power of the Printed Word• Withdraw Offer Principle• Easy Acceptance• Funny Money

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Seal the Deal by Negotiating a Win

Tactics and Counter Tactics

• Decoy Technique• Red Herring• Puppy Dog Close• Reluctant Buyer• Want-It-All Philosophy• Splitting the Difference

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Seal the Deal by Negotiating a Win

Tactics – Nibbling

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Seal the Deal by Negotiating a Win

Tactics – Hot Potato

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Seal the Deal by Negotiating a Win

Tactics – Higher Authority

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Seal the Deal by Negotiating a Win

Tactics – Set Aside Gambit

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Seal the Deal by Negotiating a Win

Tactics – Mediator

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Seal the Deal by Negotiating a Win

Tactics – Never Take The First Offer

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Seal the Deal by Negotiating a Win

Tactics – Good Guy / Bad Guy

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Seal the Deal by Negotiating a Win

Tactics – Feel, Felt, Found

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Seal the Deal by Negotiating a Win

Tactics – Smart / Dumb

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Seal the Deal by Negotiating a Win

Tactics – Service Value

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Seal the Deal by Negotiating a Win

Tactics – Walk Away

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Seal the Deal by Negotiating a Win

Tactics – Flinching

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Seal the Deal by Negotiating a Win

Tactics – Trade off Principle

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Seal the Deal by Negotiating a Win

Tactics – Vise Technique

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Seal the Deal by Negotiating a Win

Tactics – Power of the Printed Word

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Seal the Deal by Negotiating a Win

Tactics – Withdraw Offer Principle

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Seal the Deal by Negotiating a Win

Tactics – Easy Acceptance

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Seal the Deal by Negotiating a Win

Tactics – Funny Money

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Seal the Deal by Negotiating a Win

Tactics – Decoy Technique

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Seal the Deal by Negotiating a Win

Tactics – Red Herring

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Seal the Deal by Negotiating a Win

Tactics – Puppy Dog Close

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Seal the Deal by Negotiating a Win

Tactics – Reluctant Buyer

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Seal the Deal by Negotiating a Win

Tactics – Want It All Philosophy

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Seal the Deal by Negotiating a Win

Tactics – Splitting the Difference

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Seal the Deal by Negotiating a Win

Remember

• Always maintain perspective when negotiating• Don’t lose sight of key issues

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Seal the Deal by Negotiating a Win

Ideas into Action

• Study the personality styles / types• During your next negotiation, track the tactics and

counter tactics used• Practice negotiating with a partner to learn what

works best for you

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Seal the Deal by Negotiating a Win

Action Plan

List at least ONE action you will take as a result of what you’ve learned.

1. _________________________________________

2. _________________________________________

3. ___________________________________________________________

Seal the Deal by Negotiating a Win

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