deadlock breaking negotiations

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Deadlock Breaking Deadlock Breaking Negotiations Negotiations Four Techniques to move Negotiations beyond Deadlock By F. Michael Babineaux, CPSM, C.P.M. President/CEO Babineaux Educational Services and Training, Inc. www.BESTraining.com 901.853.0539 for

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Page 1: Deadlock Breaking Negotiations

Deadlock Breaking NegotiationsDeadlock Breaking Negotiations

Four Techniques to move Negotiations beyond

Deadlock

By F. Michael Babineaux, CPSM, C.P.M.President/CEO

Babineaux Educational Services and Training, Inc.www.BESTraining.com

901.853.0539

for

Page 2: Deadlock Breaking Negotiations

Who Am I?

• F. Michael “Mike” Babineaux, CPSM, C.P.M.• Experience

– 40 years Supply Chain Management Experience

– 30 year FedEx Veteran

• SCM Educator and TrainerBabineaux Educational Services and Training, Inc.

www.BESTraining.com

901.853.0539

Page 3: Deadlock Breaking Negotiations

My Stories of No

• Breakfast with spouse and a new car– Don’t be ridiculous – can’t afford

• Carefully prepared proposal with the boss– Been there, done that, didn’t work – next item

• Returning toaster and store policy– No sales slip – no return

• Contract closing– 5% increase or no sale

Page 4: Deadlock Breaking Negotiations

Agenda & Direction• Foundation

– Four Facts of Negotiation– Definitions– Negotiation Flow– Negotiation Objectives

• Deadlock Causes

&

• Breakthrough Techniques

Page 5: Deadlock Breaking Negotiations

Four Facts of Negotiating Life

1. Most things you want are not in your immediate control

• A day off with pay would not normally be within your total control.

• For those things, you must negotiate

Page 6: Deadlock Breaking Negotiations

Four Facts of Negotiating Life

2. Everybody has different wants, needs and desires

• You may want information, your colleague may want recognition.

• Each for their own reasons, and different.

Page 7: Deadlock Breaking Negotiations

Four Facts of Negotiating Life

3. A particular approach may not work all the time

• Just like fishing, sometimes you can catch 'em on worms

• Other times, they just don’t bite

Page 8: Deadlock Breaking Negotiations

Four Facts of Negotiating Life

4. To be forewarned is to be forearmed

• It's a good strategy to plan, prepare and practice.

• You'll be much more effective, if you've thought about it.

Page 9: Deadlock Breaking Negotiations

Key PointKey Point

“You don’t get what you deserve, you get what you negotiate”

Chester Karrass

Page 10: Deadlock Breaking Negotiations

Agenda & Direction

• Foundation– Definitions

• Deadlock Causes

&

• Breakthrough Techniques

Page 11: Deadlock Breaking Negotiations

Defining the Subject

• Negotiating - Give as little as you can while getting as much as you can

Page 12: Deadlock Breaking Negotiations

Defining the Subject

• Bargaining - Give as little as you can while getting as much as you can– Bargaining has its place

Page 13: Deadlock Breaking Negotiations

Defining the Subject

A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or

objectives

Negotiation

Page 14: Deadlock Breaking Negotiations

Negotiation Strategy Matrix

Business Impact

Marketplace Complexity

Low

High

LowHigh

StrategicLeverage

Routine Bottleneck

Page 15: Deadlock Breaking Negotiations

Negotiation Strategy MatrixStrategic Quadrant Strategy

• Focus on Building Relationships

– Collaborative or interdependent relationships (e.g. Strategic Alliances)

Business Impact

Marketplace Complexity

Low

High

Low High

StrategicLeverage

Routine Bottleneck

Page 16: Deadlock Breaking Negotiations

Defining the Subject

A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or

objectives

Negotiation

Page 17: Deadlock Breaking Negotiations

Defining the Subject

A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or

objectives

Negotiation

Page 18: Deadlock Breaking Negotiations

Key Negotiation Goals and Results

• Goal – Have a collaborative relationship

• Results - For the future

Page 19: Deadlock Breaking Negotiations

Defining the Subject

A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or

objectives

Negotiation

Page 20: Deadlock Breaking Negotiations

Key Negotiation Goals and Results

• Goal - Mutually Satisfying Agreement

• Results - So that it happens

Page 21: Deadlock Breaking Negotiations

Key PointKey Point

Don’t confuse Bargaining

with Negotiations

Page 22: Deadlock Breaking Negotiations

Agenda & Direction

• Foundation– Negotiation flow

• Deadlock Causes

&

• Breakthrough Techniques

Page 23: Deadlock Breaking Negotiations

Negotiation Flow Sequence

Entry

Exploration

Give and Take

Closing

Negotiation Flow

Page 24: Deadlock Breaking Negotiations

Agenda & Direction

• Foundation– Negotiation Objectives

• Deadlock Causes

&

• Breakthrough Techniques

Page 25: Deadlock Breaking Negotiations

Negotiation Objectives

Negotiation Flow Negotiation Objective

Entry

Exploration

Create Favorable ClimateGetting to know them

Give and Take

Closing

Page 26: Deadlock Breaking Negotiations

Creating a Favorable Environment

Describe Positions

–The more discussion, the more understanding

Page 27: Deadlock Breaking Negotiations

Creating a Favorable Environment

Describe Positions

– The more discussion, the more understanding

– Ask questions, don’t make statements

– Look for the reason for their positions

– Look for common ground

Page 28: Deadlock Breaking Negotiations

“You can lead a horse to water but,

you can’t make it drink”

Unless you run it around the pond long enough to make it thirsty.

Creating a Favorable Environment

Page 29: Deadlock Breaking Negotiations

Key PointKey Point

Set the stage for a favorable outcome

Page 30: Deadlock Breaking Negotiations

Agenda & Direction

• Foundation

• Deadlock Causes

&

• Breakthrough Techniques

Page 31: Deadlock Breaking Negotiations

Deadlock Causes During Negotiation Flow

PersonalityDifferences

Negotiation Flow Deadlock CauseNegotiation Objective

Entry Create a Favorable Climate

Getting to know them

Page 32: Deadlock Breaking Negotiations

Defining the Subject

A collaboration between people in which they consider alternatives to arrive at mutually agreeable solutions and/or

objectives.

Negotiation

Page 33: Deadlock Breaking Negotiations

Observable Behavior of Negotiators

Quick Decisions No Detail Gut Feelings

Relaxed Relationships Habits/Routines

Quick Decisions No Time Wasting Control

Slow Decisions Detailed Calm

Facts

Feelings

Ask Assertive Tell Assertive

Opposites DO NOT Attract

Page 34: Deadlock Breaking Negotiations

Personality Differences

Do you see

The Young Woman

or

The Old Woman

Page 35: Deadlock Breaking Negotiations

Perception vs RealityPerception vs RealityGetting To Yes by Fisher and Ury

“Understanding the other side’s thinking is not simply a useful activity that will help you solve your problem.”

“Their thinking is the problem.”

“As useful as looking for objective reality can be, it is the reality as each side sees it that constitutes the problem in a negotiation and opens the way to a solution.”

“Ultimately, however, conflict lies not in objective reality, but in people’s heads.”

Page 36: Deadlock Breaking Negotiations

Dealing With PerceptionIssues

• Before Negotiation– How to Prevent

Perception Challenges• During Negotiation

– How to Overcome Perception Challenges

Page 37: Deadlock Breaking Negotiations

• Before Negotiation– Look at it from their point of view

• How do they see the issue?

– Don’t Blame them for your problems

• That makes them defensive

– Don’t assume the worst• You’ll make it worst than it is

Dealing With PerceptionIssues

Page 38: Deadlock Breaking Negotiations

• During Negotiation– Get them involved

• Part of solution – not problem

– Help them save face• Need to reconcile position

with principal

– Act inconsistently with their perception

• Sending messages different than expected

Dealing With PerceptionIssues

Page 39: Deadlock Breaking Negotiations

Beware of Perceptions

People will Act on their Perceptions

Key PointKey Point

Negotiators are People FirstUnderstand their Personalities

Page 40: Deadlock Breaking Negotiations

Deadlock Causes and Breakers

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

EntryTake it to

Another Place

Page 41: Deadlock Breaking Negotiations

Take it To Another Place

How to...

– Pause and say nothing

– Take a Time out

While there...

– Examine how you feel

– Keep eye on Prize

Page 42: Deadlock Breaking Negotiations

Take it To Another Place

How to...

– Pause and say nothing

– Take a Time out

While there...

– Examine how you feel

– Keep eye on Prize

Page 43: Deadlock Breaking Negotiations

Take it To Another Place - Key Point

Don’t Let Them Get To You

Page 44: Deadlock Breaking Negotiations

Negotiation Objectives

Negotiation Flow Deadlock CauseNegotiation Objective

Entry

Uncovering Interest Asking QuestionsExploration

Create a Favorable ClimateGetting to know them

PersonalityDifferences

Page 45: Deadlock Breaking Negotiations

Positions Versus Interest

• Position = A stance that excludes the possibility of any other– What people say they want

• Interest = What people really want– Why they take a position

Page 46: Deadlock Breaking Negotiations

Positions Versus InterestPositions Versus Interest

The Orange ProblemThe basic problem in a negotiation lies not in conflicting positions, but in the conflict of interests.

Page 47: Deadlock Breaking Negotiations

Positions Versus InterestPositions Versus Interest

Why is it important to know the difference?

That’s where solutions are to be found.

Page 48: Deadlock Breaking Negotiations

Three Kinds of InterestsThree Kinds of Interests• I have a car to sell• You want to buy a car

I want $1000 for the car

You want to pay $900 for the car

• You’re looking for a red car

• I’ve got a green car

Page 49: Deadlock Breaking Negotiations

Key PointKey Point

Satisfying interests is Key to Solutions

Page 50: Deadlock Breaking Negotiations

Deadlock Causes During Negotiation Flow

Negotiation Flow Deadlock CauseNegotiation Objective

Entry

Uncovering Interest Asking QuestionsExploration

Create a Favorable Climate Getting to know them

You don’tunderstand

PersonalityDifferences

Page 51: Deadlock Breaking Negotiations

Deadlock Causes and Breakers

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

EntryTake it to

Another Place

ExplorationYou don’t

understandWalk in their

Shoes

Page 52: Deadlock Breaking Negotiations

Walk in Their Shoes - How to

Listen Actively

Paraphrase

Ask for Corrections

Page 53: Deadlock Breaking Negotiations

Walk in Their Shoes - How to

Acknowledge a point

Acknowledge their Feelings

Offer Apologies

Page 54: Deadlock Breaking Negotiations

Walk in Their Shoes - How to

Agree whenever you can

Accumulate Yeses

Tune in to their Wavelength

Page 55: Deadlock Breaking Negotiations

Walk in Their Shoes - How to

Acknowledge their person

Their Authority

Their Competence

Page 56: Deadlock Breaking Negotiations

Covey Quote

The Fifth Habit – Seek first to understand . . .

“The psychological equivalent of air is to feel understood.”

Stephen R. Covey

Page 57: Deadlock Breaking Negotiations

Walk in Their Shoes – Key Point

SeekFIRST

ToUnderstand

Page 58: Deadlock Breaking Negotiations

Negotiation Objectives

Negotiation Flow Deadlock CauseNegotiation Objective

Entry

Uncovering Interest Asking questions

Exploration

Create Favorable Climate Getting to know them

Give and Take Developing Alternatives

Stretch your thinking

You don’tunderstand

PersonalityDifferences

Page 59: Deadlock Breaking Negotiations

Common Negotiator MindsetCommon Negotiator Mindset

Assume only a fixed Pie

Page 60: Deadlock Breaking Negotiations

Develop Mutual Gain Develop Mutual Gain AlternativesAlternatives

• Tips for Successful Alternative Invention– Invent before judging

• Like Brainstorming

– Invent a wide range of options• Think out of the box

Page 61: Deadlock Breaking Negotiations

Stretching Your ThinkingStretching Your ThinkingThe Nine Dot Exercise

Connect all dots with only 4 straight lines and without lifting

your pen

Page 62: Deadlock Breaking Negotiations

Developing AlternativesDeveloping Alternatives10 Killer Phases10 Killer Phases

Killer Phrases– A good idea, but . . .– It’s against policy– Be practical!– That’s all right in theory,

but . . . – The boss won’t go for it

And these– Are you serious?!– Don’t be ridiculous– That’s dumb– We tried that before– That wasn’t what I

had in mind

Page 63: Deadlock Breaking Negotiations

Key PointKey PointDon’t assume

a fixed Pie

Page 64: Deadlock Breaking Negotiations

Deadlock Causes During Negotiation Flow

Negotiation Flow Deadlock CauseNegotiation Objective

Entry

Uncovering Interest Asking QuestionsExploration

Create a Favorable Climate Getting to know them

You don’tunderstand

PersonalityDifferences

Exploration Developing Alternatives

Stretch your thinkingResistance to

your ideas

Page 65: Deadlock Breaking Negotiations

Resistance? What causes it?

Not their idea - Not Invented Here

Interest unmet - Just overlooked

Fear losing face - Looking bad

Too much too fast - Easier to say no

Page 66: Deadlock Breaking Negotiations

Deadlock Causes and Breakers

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

Entry Take it toAnother Place

ExplorationYou don’t

understandWalk in their

Shoes

Give and TakeResistance to

your ideasBridge

the Gap

Page 67: Deadlock Breaking Negotiations

Bridge the Gap – What is it ?

A Way to Get to Yes

Not their idea - Not invented here

Interest unmet - Just overlooked

Fear losing face - Looking bad

Too much too fast - Easier to say no

Involve them

Look beyond position

Give them an out

A little at a time

Page 68: Deadlock Breaking Negotiations

Make it easy

for them to say

YES

Bridge the Gap – Key Point

Page 69: Deadlock Breaking Negotiations

Negotiation Objectives

Negotiation Flow Deadlock CauseNegotiation Objective

Entry

Uncovering Interest Asking questions

Exploration

Create Favorable ClimateGetting to know them

Give and Take Developing Alternatives

Stretch your thinking

You don’tunderstand

PersonalityDifferences

Closing Agreeing to best

Use Objective Criteria

Resistance toyour ideas

Page 70: Deadlock Breaking Negotiations

Using an Objective CriteriaUsing an Objective Criteria

• Examples– Market value– Tradition/Precedent– Fairness/Equal Treatment– Others Judgment

Page 71: Deadlock Breaking Negotiations

Using an Objective CriteriaUsing an Objective Criteria

• How to do it - – Be open to what criteria to use– Jointly agree– Ask questions

Page 72: Deadlock Breaking Negotiations

Using an Objective CriteriaUsing an Objective Criteria

• Sample questions to ask– What’s fair?– How do others do it?

Page 73: Deadlock Breaking Negotiations

Using an Objective CriteriaUsing an Objective Criteria

• Basic Points– Agree first on the principle – Various ways to launch an

independent criteria discussion• Bring up the general idea of an objective

criteria• Suggest one or more

Page 74: Deadlock Breaking Negotiations

Key PointKey Point

Defer to a measuring stick

- independent of your will

Page 75: Deadlock Breaking Negotiations

Deadlock Causes and Breakers

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

Entry Take it toAnother Place

ExplorationYou don’t

understandWalk in their

Shoes

Give and TakeResistance to

your ideasBridge the Gap

ClosingThey don’tunderstand

Page 76: Deadlock Breaking Negotiations

Guidelines for Making Offers• Presenting Offers

– Propose - Don’t Foreclose• What if we . . .

– Present as a Gain• With this you can . . .

– Be Specific• That’s 16 oz per . . .

Page 77: Deadlock Breaking Negotiations

Guidelines for Making Offers• First Offers

– When – Clear Specs– How – Don’t start with bottom line

Page 78: Deadlock Breaking Negotiations

Guidelines for Making Offers• Evaluating an Offer

– Does it Satisfy?– Are you Happy?

Page 79: Deadlock Breaking Negotiations

Guidelines for Making Offers• Making Counteroffers

– What’s Acceptable– Combined Interest

Page 80: Deadlock Breaking Negotiations

• Benefits should be talked about before actual price

How to Talk Price

Page 81: Deadlock Breaking Negotiations

• If offer good, say so

• If offer not great, say you are open to counter offer

How to Talk Price

Page 82: Deadlock Breaking Negotiations

• Would you accept the offer if someone made it to you

How to Talk Price

Page 83: Deadlock Breaking Negotiations

Deadlock Causes and Breakers

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

Entry Take it toAnother Place

ExplorationYou don’t

understandWalk in their

Shoes

Give and TakeResistance to

your ideasBridge the Gap

ClosingThey don’tunderstand

Use Powerto Convince

Page 84: Deadlock Breaking Negotiations

Use Power To Convince – What is it

• Types of Negotiating power– Things the Others Want

• Product endorsements• Tie in Services• Money

Page 85: Deadlock Breaking Negotiations

Use Power To Convince – What is it

• Types of Negotiating power– Things the Others Want

– Formal• Title• Status• Situational

Page 86: Deadlock Breaking Negotiations

Use Power To Convince – What is it

• Types of Negotiating power– Things the Others Want

– Formal

– Personal• Charisma• Conviction• Consistency

Page 87: Deadlock Breaking Negotiations

Use Power To Convince – How to do it

Ask reality-testing questions- Are you sure you want to end like this?

Page 88: Deadlock Breaking Negotiations

Use Power To Convince – How to do it

Warn, but don’t threaten- If we can’t come to agreement, I’ll . . .

Page 89: Deadlock Breaking Negotiations

Use Power To Convince – How to do it

Display BATNA - without using- We have other things we’re considering, so . . .

Page 90: Deadlock Breaking Negotiations

Display a BATNA

What is a B.A.T.N.A.?

Best

Alternative

To

Negotiated or

Agreement

No

Page 91: Deadlock Breaking Negotiations

Display a BATNA

What is a B.A.T.N.A.?

A Comparison

and

An Alternative

Page 92: Deadlock Breaking Negotiations

Develop a BATNA

1.Make a list of options

2.Improve on most promising

3.Select best

4.Consider their BATNA

Page 93: Deadlock Breaking Negotiations

Use Power to Convince - Key Point

Be sure they know the

Consequences

Page 94: Deadlock Breaking Negotiations

Agenda & Direction Review

• Foundation– Four Facts– Definitions– Negotiation Flow– Negotiation Objectives

• Deadlock Causes

&

• Deadlock Breakers

Page 95: Deadlock Breaking Negotiations

Four Facts of Negotiating Life

Page 96: Deadlock Breaking Negotiations

Key PointKey Point

“In Business as in Life - You don’t get what you Deserve,

You get what you Negotiate”

Chester L. Karrass

Page 97: Deadlock Breaking Negotiations

Definitions?

Page 98: Deadlock Breaking Negotiations

Key PointKey Point

Don’t confuse Bargaining with Negotiations

Page 99: Deadlock Breaking Negotiations

Negotiation Flow Sequence

Entry

Exploration

Give and Take

Closing

Negotiation Flow

Page 100: Deadlock Breaking Negotiations

Negotiation Objectives

Negotiation Flow Negotiation Objective

Entry

Uncovering Interest Asking questions

Exploration

Create Favorable ClimateGetting to know them

Give and Take Developing Alternatives

Stretch your thinking

Closing Agree to best option

Use Objective Criteria

Break?

Page 101: Deadlock Breaking Negotiations

Deadlock Causes and BreakersSummary

PersonalityDifferences

Negotiation Flow Deadlock BreakerDeadlock Cause

Entry Take it toAnother Place

ExplorationYou don’t

understandWalk in their

Shoes

Give and TakeResistance to

your ideasBridge

the Gap

ClosingThey don’tunderstand

Use Powerto Convince

Negotiation Objectives

CreatingClimate

UncoveringInterest

DevelopingAlternatives

Agreeing toBest

Page 102: Deadlock Breaking Negotiations

Deadlock Breaking NegotiationsDeadlock Breaking Negotiations

Four Techniques to move Negotiations beyond

Deadlock

By F. Michael Babineaux, CPSM, C.P.M.President/CEO

Babineaux Educational Services and Training, Inc.www.BESTraining.com

901.853.0539

for