monaghan negotiation & persuasion 2016 mc · monaghan negotiation & persuasion 2016 mc...
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Master Class
Negotiation & Persuasion in Action
Margaret ConsidineCEO EQuita Consulting Limited MA[Conflict & Mediation], MSc [Mgmt.OB], H.Dip, BA[Mgmt], MMII , CEDR
KNOW… DO… BE – The artistry of Professional PracticeInfluence Negotiation and Persuasion Trilogy
Overview of Influence Persuasion and Negotiation
Negotiation Skills as Core Commercial Competency
q Negotiation is a Key communication & influence tool for interdependent relationships and traversing the line of difference between two conflicted parties
q YET -‐ Most people not very good at negotiation (e.g., over 80% of corporate executives and CEOs leave money on the table)
q 70% of Execs had no formal negotiation expertise
q Our challenge is to dramatically improve ability to:q Create valueq Claim valueq Build trust & relationships
q Research basis in economics and psychology
Negotiation: Trading Skill Set
Effective Relationships are ‘A’ key to a successful working
Environment
DO YOU BELIEVE THIS?
Negotiation: Trading Skill Set
Negotiations 101All Negotiations Involve
1. Price / Value 2. Movement / Trading 3. Relationships/ People
2 Types of NegotiationWhere two parties have a joint difficulty and where they intend to agree
• There are two types:
q Distributive – Splitting a fixed pie – Claiming VALUE
q Integrative – Enlarge the pie – Creating VALUEswelling the size of the pie by adding more variables to negotiate on and then getting as much of that pie as you can for yourself while leaving enough on the table for the other side.
• Four Phases of Strategic Negotiation:1. Preparation2. Opening & Proposing3. Bargaining4. Closing
What we both wantSomewhat
Unimportant to either of us
What we both want most
Usually Price We end up having to split it
100 %THEM
00
100 %Me
DISTRIBUTIVE NEGOTIATION:
I win
You loose
You Win
I loose
qIntegrative – Enlarge the pie – Creating VALUE
swelling the size of the pie by adding more variables to negotiate on and then
getting as much of that pie as you can for yourself while leaving enough on the
table for the other side.
Sample checklist of Variables
• The more Variables the better [but the more work]
• Basic quality of product or service• Ease of implementation• Interest Rate• Covenants• Flexible repayments• Speed of raising loans• Price• Payment terms• Currency• Caveats• Delivery time • Key account Support• Break Clauses
• Guarantees• Steady relationships• Options on future business• Help with promotion/advertising• Speed of settlement• Transfer of technology• Staff training• Volume discount• Publicity• Personal status• Fun• EFT payments• Dedicated contact person
Tactic: More variables = More tradability
What we both wantSomewhat
What They Want
What I Want
Unimportant to either of us
Important to me What we both want
What we both want most
Very Important to them
Very Important to me
100 %THEM
00
100 %Me
INTEGRATIVE NEGOTIATIONS
E
H
LM
C
FJ
O
K
X
P A
I
B
D
N
G
1.Line of Negotiation – identify as early as possible2.Positions v’s Interests -‐ Power of Anchors
3.Reference Points & Variables4.Perception and Needs
5.BATNA6.WATNA
7.ZOPA8.Re-‐anchoring
9.Insult offers 10.Clear the table
Ten Basics of Negotiation
• Unrealistic Expectations1• Irrational Escalation of Commitment 2
• Over competitiveness Myth of Fixed Pie 3
4
5 Incorrectly Framing a situation
Selecting inappropriate Anchors
5 Common Mistakes in Strategic Negotiations
The Seven Skills of More Effective Negotiators
1. Thorough preparation – including knowing when and how to close
2. The ability to set limits and goals
3. Keeping your emotional distance
4. Good listening skills
5. Clarity of communication
6. Building rapport
7. Negotiating with different personality types
Prepare
Open
Bargain
Close
Stages of Negotiation
Quick Guide to PreparationHow to prepare
1. Set goals 2. Have as many variables as possible3. Do ‘Think in Ink’.4. Have a BATNA /know WATNA5. Price Your stock6. Do the 5 D Test to ensure that what you aimed for you have
achieved.Preparation is everything…… or nearly in negotiations.
Opening
• Sends Signals• Continuously
• Tools• Important ???
Physical Settings Rapport
AnchorsGather Data
Finding Areas of Agreement
Your goals Your counterpart’s goals
Your counterpart’s area of deferred gratification
Your counterpart’s push zone
Your area of deferred gratification
Your push zone
Area of easy potential agreement
qContinuously Gather DataqKeep an open mindqAsk enquiring questionsqLink answers to objectivesqFind Healthy Mutuality of methods & Demonstrate CollaborationqBuild for early Success
Strategies
CLOSING – what to remember
1• Clear the table
2• Write up the agreement • Allow for Contingent Contracts• Watch out for Nibbles
3• Attend to the relationship
Persuasion
4 Keys to Persuasion
•Get the basics right
•Develop a Tool Box
•Maximise the 12 words of extraordinary persuasion in the English language
•Leverage the 9 Connectors
Get the basics Right
1. Demonstrate Confidence2. Be Optimistic 3. Be Authentic 4. Be prepared5. Use Good Attending Skills 6. Tailor your message to your audience7. Build a persuasive case8. Find Alignment9. Demonstrate adaptability10. Attend to the relationship
Develop a Tool Box
1. Persuasive Reasoning2. Charismatic Persuasion3. Use the six Universal principles of Persuasion to maximise your efforts
i. Reciprocity:ii. Liking:iii. Social Proofiv. Consistencyv. Authorityvi. Scarcity
12 Words of Extraordinary Persuasion
You Free Save Guarantee
Easy New Help Discovery
Results Money Love Proven
Nine Things both sides Wants
1. To feel good about themselves
2.Not to feel bullied
3. To be listened to
4. To know and understand more
5. To finish the negotiation without too much heartache
6. To be treated respectfully & To be liked
7.Clear communication
8. To be trusted
9. To be treated fairly
Nine Things both sides Wants
TEN T O P T I P S :
1. Spend time planning your negotiation (your side and theirs) 2. Have a hierarchy & range of objectives3. Aim High: Ask for ‘the most’ – people who ask for most get most as
long as its within the bounds of reasonableness4. Have a BATNA /know WATNA -‐ Explore interest rather than taking set
positions5. Price Your stock -‐will help you know what to trade & when6. Form Coalitions7. Talk less and listen more.8. Don’t make the first concession – if you do get something back in
exchange of higher value 9. Maintain pressure, avoid provocation, resolve the negative
consequences for the other side 10. Review afterwards and manage the aftermath
Thank you for your attention & valuable contribution. I look forward to meeting you all across the negotiation table soon.
RegardsMargaret
Don’t be a stranger!
Tel: +35312934741 ... [m] +353878251567