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The Art of Successful Negotiation

By Dr Rick Goodman

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The Process of Win- Win Negotiations

Good Agreements

Poor Agreements

No Agreements

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Getting The Other Parties AttentionWe need their attention to negotiate

Applies to family, friends, boss, buyers and vendors

Unsophisticated negotiators will negotiate without TOP’s attention

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Keeping the Other Parties AttentionDo I have an investment (stake) in the

substantive issue?Is my relationship with this person

important to me?Is the transaction worth my time energy

and money?Is the perceived alternative less attractive

than negotiating with you now?

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What can you negotiate about and who can you negotiate with?

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The Two Elements in Any NegotiationThe substantive issue to be discussed

The relationship you have with the other party

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Negotiation Strategies Soft, Hard and Problem-SolvingSoft Negotiation

Hard negotiation

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The Problem-Solving Model of NegotiationSeparate the people from the problem

Focus on interests not positions

Invent options for mutual gain

Insist on using objective criteria

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Issues the Agenda Items of All NegotiationsAvoid Single Issue Negotiations

Avoid Sequence Negotiations

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A soft negotiation strategy, where you lose on the issue is your best bet when

The major issue is not important enough to you to justify the risk or cost of winning

Maintaining a relationship with the other party is important to you

The cost of winning would outweigh the value of winning

Time is of the essenceThere is no better alternative

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Soft negotiation saves time and salvages relationshipsCan have personal negative consequences

for negotiator

How will you feel in six months, if you give in or lose on an issue now

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Hard Negotiation Strategy

The issue is so important that winning outweighs all other considerations

You do not value the relationship at all

It’s worth the time and expense

You do not have a better alternative

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Walk-Away situations

The issue is not important or is not worth the time or money

You have a low or no investment in maintaining a relationship with the other party

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Walk Away Alternatives

The real power in negotiation lies with the party who has the best WAWAs.

It is perceptions that shape behavior, not reality

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Summary of Walk Away AlternativesPreplanned your WAWAsVisualize yourself carrying out the

WAWAsGuess the other parties WAWAsVisualize the party carrying out those

WAWAsContinually seek to improve your WAWAs

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Summary of Walk Away Alternatives Cont.Do not share your WAWAs with the other

side unless the negotiation looks like it is failing

Understand that the party with the best WAWAs has the most power in the negotiation

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Stage 1: Setting the Tone for the Negotiation

Building Relationship

Ritual Observance

Warming Up

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Stage 2:Exploring Each Party’s Needs

Uncover Their Needs

Ask Lots of Open-Ended Questions

Share Our Own Needs and Interests

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Stage 3: Developing Creative Solutions

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Stage 4: Reaching agreement

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Stage 5: Reviewing and Recapping the Agreement

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After the Negotiation

Follow-Up during the Implementation of the Agreement

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Preparation goes on before, during and after the negotiation. Effective preparation requires an analysis of a number of different items before you start your negotiations.

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Five Elements of Successful Negotiation Planning Worksheets

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Items to be addressed

Interests or NeedsWAWAsIssuesPossible SolutionsStrategies

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Analyzing Interests/Needs

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Analyzing WAWAs

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Identifying Issues

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Forming Strategies

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Planning Possible Solutions

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Separate the People from the ProblemNegotiators are people firstSeparate yourself from the attack!Be aware our perceptual differencesAcknowledge TOP’s ( and, if appropriate,

your), emotion and use neutral languageUse active listening and paraphrasing to

form the baseline of understanding and communication

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Focus on Interests Not Positions

Do not assume the other side knows what their needs are.

Do not assume that you know what your needs are in a given situation. This requires some critical self-analysis.

If you don’t A.S.K. you won’t G.E.T.

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Invent Options for Mutual Gain

Expand the “pie”. Maybe a compromise is not necessary

Operate out of abundance. There is enough in the universe for everyone

Identify common interests before focusing on the differences

Separate in venting from deciding. Invent first. Decide later.

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Invent Options for Mutual Gain Cont.Delve into the area of possibility thinking

Make their decision easy help TOP find solutions to their problems as well as yours

Creativity is essential in this phase

Have fun!

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Insist on Using Objective Criteria

Objective criteria can be used to resolve differences and to come to solutions that are fair to both parties

Appeal to generally accepted objective criteria

Come to an agreement on how the criteria will be used in your situation

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“People do business with people who they like who are like them”

Dr. Rick Goodman

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Active Listening Skills

Capturing the Essence of the Communication

The Gap

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Paraphrasing Content

Paraphrasing is capturing the essence of the content of what the speaker said and feeding it back to the speaker in your own words

“So what you’re saying is.”

“Tell me what I said, so are on the same page.”

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Reflecting Emotions

Modeling/Mirroring Behavior

I Understand

The Three F’s

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Nonverbal Body Language “How to Build Rapport”1. Faced a speaker squarely2. Leaned forward slightly3. Maintain eye contact( as culturally

appropriate)4. Relax your Jaw-smile if appropriate 5. Not your head to encourage TOP to keep

speaking6. Keep your hands and feet still

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How to build rapport

7. Allow silence and pauses8. Do not interrupt and less you are no longer able

to file their train of thought until they come to a natural pause-then wait before you paraphrase

9. Control other interruptions ( telephone people coming in)

10. Remember, “the gap.” Between speaking and listening and maintain your focus on the speaker

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Understanding Different People StylesUnderstanding Your Communications

Style

Recognizing a different communications style and TOP

Adapting your behavior to accommodate TOP

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Communication Skills for Negotiators Speaking Compellingly

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Managing Your Voice in Negotiation1. Speed

2. Pitch

3. Volume

4. Intonation

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Questioning Skills

Asking Open-Ended Questions

Asking close ended And Finite Questions

Responding to Questions

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Assertiveness: Staying Firm When You Need to

This does not mean standing firm on YOUR decision

Suggesting that you brainstorm solutions together often helps

Don’t give up, even if the impasse seems hopeless

Sometimes you have to negotiate on how you’re going to negotiate

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The Five Categories That Have Been Shown to Break Deadlock1. Identify interests.2. Walk-Away Alternatives3. Issues to Be Discussed and Included in

Final Agreement4. Possible Solutions5. Strategies

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Follow-Up the Forgotten Element in Negotiations

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Your Strategy Depends on How the Negotiation GoesIf you reach agreement

If the negotiation does not work out

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Five Elements of Successful Negotiation Planning Worksheets