Overview of the workout

Time Content Method / Person

10 minutes Welcome & objectives Trainer led

15 minutesWarm Up - negotiation activity

Group activity

15 minutes What is negotiation Trainer led

20 minutes Preparing to negotiate Trainer led Group activity

15 minutes Opening the negotiation Trainer led Group activity

30 minutes Negotiating the deal Trainer led

10 minutes Break

5 minutes Finalising the deal Trainer led

60 minutes Role Plays Group activity

10 minutes Cool Down Period Trainer led

We negotiate every day. How good are you at it?

So what is negotiation?

Positive and Productive Conflict Resolution

Some negotiation wisdom

Sun TzuGhandi‘An eye for an eye and we all go blind’

‘The best general is the one who never

fights’

The negotiating table

The negotiation table - ideal parameters

Your Ideal

(what you want)Their Ideal

(what they want)

The negotiation table – worst case parameters

Your Ideal

(what you want)Your limit

The negotiation table – worst case parameters (2)

Your Ideal

(what you want)Your limit Their Ideal

(what they want)

Their limit

Scope for Bargaining

When Not to Negotiate

‘BATNA’

“If you can do better through negotiating, negotiate. If you can’t, don’t’.” Steven P. Cohen

Your Ideal

(what you want)Your limit Their Ideal

(what they want)

Their limit

Best Alternative To a Negotiated Agreement

Consider when you’ll walk away

• Identify your BATNA

• Research your client’s BATNA

• Do signal to the client that you have valuable alternative options

• Look to improve your BATNA constantly

• Don’t reveal your BATNA

• Engage in bidding wars

• Don’t lie about your BATNA

What to do What not to do

Your BATNA tells you when to walk; not when to sign

A model for negotiation

“In preparing for a battle I have always found that plans are useless but planning is indispensable.”

Preparation is key to most things

Dwight D. Eisenhower 1890-1969

Prepare Research The People

Objectives & Game

Plan

Anticipate Objections

Give adequate time to prepare

Negotiation10%

Preparation90%

Preparation is the most important element

Prepare Research People

Objectives & Game

Plan

Anticipate Objections

Information – facts and figures

History / Track Record

The market / competitors

Preparation – the people

• Who is involved: other party? Level of authority - the same?

Who else is involved?

Do we know any ‘insiders’

• Who is involved: your team Who do you need to involve?

Sufficient level of authority?

• What are their drivers? Business drivers

Emotional / political drivers

Prepare Research People

Objectives & Game

Plan

Anticipate Objections

Setting objectives before every negotiation is critical

Prepare Research People

Objectives & Game

Plan

Anticipate Objections

Objectives - write them down to be clear

VARIABLE BATNA TARGET STRETCH

Price Asking price 5% off 10% off

Extras(carry case)

Included Included included

Software Self install Self install Pre installed

Activity• Think of a negotiation you are currently involved with. List all the

variables, then write down your BATNA, target and stretch goals

• You have 5 minutes – be prepared to share with the group

Game Plan - who has the power?

• Where is the balance of power?

• How much do they need us?

• How much do we need them?

• What is the least I think they’ll accept / pay?

• What are their objectives and how are they rewarded?

• What is their best alternative? What is our best alternative?

• Who has the greater urgency / time pressure?

AdvantageYou

AdvantageThemCo-operate

Prepare Research People

Objectives & Game

Plan

Anticipate Objections

Game Plan – planning the perfect negotiation

How should we open the negotiation?

What questions do we need to ask?

What information is missing?

Prepare Research People

Objectives & Game

Plan

Anticipate Objections

Be clear on your game plan...and stick to it

Anticipate objections

Prepare Research People

Objectives & Game

Plan

Anticipate Objections

Put yourself in their shoes: What would you be objecting to?

Plan a live negotiation

1. Think of a deal you are negotiating / will be

negotiating

2. Go through the 4 step process for effective

preparation - research; people; game plan &

objectives; anticipate objections

3. Make notes

4. You have 10 minutes

5. Everyone will present their preparation to the

group

6. Feedback and discussion will follow

Opening the negotiation

Focus on building rapport

OpenBuild

Rapport & Trust

Open the Negotiation

Small talk is actually Big talk

Use your voice volume, tone, speed

Control your body language

Keep eye contact Smile!!

Body language – how to read it

Body Language What They /You Could Mean

The surprised gape ‘You must be kidding’

Preparations to leave (closing notebook, reaching for bag/briefcase, putting on jacket)

‘I’m going to walk away if you don’t give me a concession’

Inclining body awayDownplaying your importance/trying to annoy you

Folding armsClosing down (or ‘I’m just comfortable this way’)

Looking down or away Was that a lie?

Looking at each otherYou’ve hit an important areaLooking for the leader to make a move/concession

Turned up corner of mouth/avoiding eye contact/deep breath/shrug of shoulders

‘You are pushing me too far’

Body Language No-No’s

The finger jab - aggressive

Folding arms – lack of interest

Slouching - unresponsive

Flitting eyes - nervousness

Fidgety hands - nervousness

Weak or dry voice - nervousness

OpenBuild

Rapport & Trust

Open the Negotiation

Open the negotiation with a Shared/Guiding Vision

• Sets the tone for the negotiation

• Diffuses tension

• Disarms aggressors

• Gives you a ‘haven’ to return to when things get tough

• Keeps difficult people in check

• Helps close the deal

Take control and open the negotiation

• Often, opening the negotiation can get you a better outcome

• It is good to be honest and lay your cards on the table

• The 1st offer is the end outcome over 85% of the time!

• Write down your opening offer

• You can refer back to it

• You can use it as your ‘anchor’ in the negotiation process• Might show how flexible you’ve been • Can help you win more important battles

OpenBuild

Rapport & Trust

Open the Negotiation

Negotiating the deal

Effective negotiators question and listen more

Negotiating Behaviour Skilled NegotiatorsAverage

Negotiators

Effective Questions:Questions as % of all negotiating behaviour

21.3% 9.6%

Effective Listening:Testing for understanding

9.7% 4.1%

Summarising: 7.5% 4.2%

Negotiate Question Propose Bargain Manage Objections

Effective questions help ‘unpack their suitcase’

=

Questioning techniques

• Plan your questions in advance• In the Game Plan

• It keeps the questions sequential and related

• Keep it conversational (avoid inquisition)

• Ask with a purpose – you only have so many questions

• Use their frame of reference – keep it relevant to them

• Keep them jargon free

• Ask general questions, then specific questions on a topic

• Relate to any cultural differences

When proposing...

• Propose your offer

• Explain why it is a good offer

• Summarise

• Invite a response

Negotiate Question Propose Bargain Manage Objections

When receiving a proposal, never interrupt

• Question the offer

• Clarify the points

• Summarise where you stand

Negotiate Question Propose Bargain Manage Objections

In case you have to bargain, be prepared

• What concessions might you have to make to get what you want?

• Give in areas that are high value to them and low value to you

• Don’t concede if you think it will be hard to sell internally / to your boss

Negotiate Question Propose Bargain Manage Objections

Don’t bargain unless you need to

• Only bargain if your proposal is not accepted

• The fundamental rule is to trade If you give something; get

something in return.... “if we...then you”

You should always have an answer to the question - What did you get in return?

Negotiate Question Propose Bargain Manage Objections

Dealing with hard bargainers

• Ask questions

• Articulate their perceptions & interests – find joint ones

• Suggest joint problems exist

• Be reasonable but firm

• Point out bad behaviour

• Develop alternatives – find new options

• Give in

• Get emotional

• Let your ego get in the way

What To Do What Not To Do

Negotiate Question Propose Bargain Manage Objections

Close the deal

• Send a courtesy email within 24 hours

• Work with internal teams to finalise the contract and circulate to the parties involved

• Take ownership of the contract / document - whoever controls the document often controls the discussion

• Do not let the other party write the contract or issue notes from the meeting (particularly on crucial points)

Finalise Close the Deal

Build Relationship

Look to build the relationship

Finalise Close the Deal

Build Relationship

Track & measure the success of the deal

Celebrate successes along the way

Look for new opportunities together

Time to practice – role plays

Any questions?