successful negotiation thru relationship capital (rc)

Successful Negotiationthru Relationship Capital (RC)

By

Rob PetersStandard of Trust, llc

www.StandardofTrust.com

Agenda• Negotiation in the 21st Century• Definition of “Negotiation”• The Principled Negotiator• The Negotiation Matrix• Principled Negotiation is based on

TRUST• Relationship Capital (RC) Measures a

Negotiator’s Reputation

A Definition of Negotiation

• Parties who share the fact that they both have conflicting and common interests

• Willingness to come together and discuss• A set of positions and underlying needs• Trade of what they each can control• Attempt to find an agreement• A result which is beneficial and acceptable

to all.

The Principled Negotiator

• Strive for commitment to agreement• In business it is about the negotiation• Focus on the underlying

requirements• Look at all the options• Try to pin point the areas of

commonality• Listen

The Negotiation Matrix

I Win-You Lose Win-Win

I Lose-You WinLose-Lose

Principled Negotiation is based on Trust

• authority of your word and the credibility of your actions.

• Agreements are difficult in the absence of mutual respect and reliability.

• A.T Kearney' showed that trust in high-level business alliances is of particular significance.

• A direct correlation exists between trust and profit (Quality of Agreements).

Performance is Determined by Quality of Relationships

If Trust is Important to Negotiation, How do you Develop

it?• Questions to Ask about You and Your

Organization’s negotiating behavior?– Are You Honest?– Are You Accountable?– Are You Responsible?– Are You Respectful?– Are You Supportive?– Are You Trustworthy?

How do You Measure Relationships?

Trust = Relationship Capital (RC)

•Honesty•Accountability•Responsibility•Respect•Trustworthy•Supportive

Would it be reasonable to look at these things in accounting terms?

Asset Liability

Transaction 1: I commit to sharing my data report during negotiation of business alliance

Transaction 2: I deliver the data report to potential alliance partner negotiator

1

2

Respect

Accountability Honesty

Support

Reputation = Relationship Capital (RC)

• Today, a select group of Negotiators are earning relationship capital (RC) by learning & mastering industry standards and having their commitments and perceptions scored.

“This score is relationship capital (RC) that negotiator’s are using to enhance their reputation one interaction at a time.”

– Norm Myers, Founder – RNIA.org

Thank You

Rob PetersFounder

(M) 708-819-8360www.StandardofTrust.com