Best practice negotiation skills, principles and process

1. NEGOTIATION SKILLS: PRINCIPLES,
PRACTICE AND PROCESS
CHARLES COTTER
PROTEA HOTEL FIRE AND ICE, MELROSE ARCH
29-30 AUGUST 2016

2. TRAINING PROGRAMME OVERVIEW
• Demonstrate an understanding of the theoretical aspects regarding
negotiation
• Identify the characteristics and key skills of effective negotiators
• Determine and differentiate between the negotiation styles
• Apply different negotiation strategies
• Differentiate between the types of negotiation – positional and
integrative bargaining
• Apply the core elements of the 4-phase negotiation process
• Article Review: Best practice negotiation techniques
• Integrated, Role Play activity (negotiation exercise)

3. INTRODUCTORY ACTIVITY
• Individual activity:
• Complete the following statement by inserting one word
only. In order to reach a mutually-beneficial (win-win)
negotiated agreement, I need to/to
be………………………………………………………..
• Jot this word down and find other learners who have
written down the same word.
• Write this word down on the flip-chart.
• Each learner will have the opportunity to elaborate on
their choice of word.

6. FUNDAMENTALS OF NEGOTIATION
• Defining negotiation
• Characteristics of effective negotiators
• Key skills of negotiators
• Negotiation styles
• Negotiation strategies

7. DEFINING NEGOTIATION
• Negotiation is a process centered on a discussion that is intended to
produce an agreement.
• In its simplest form, it could be considered to be about power. More than
just about money, it involves issues of ego, leveraging, saving face, and
being right. It can appear that the negotiator or team with the most power
will triumph over a weaker team or win something important.
• In current business practices, however, negotiation often leads to
compromises, where both sides make concessions to get as close as they
can to exactly what they want. Other times, no concessions are available
and a power struggle can go on for a long time.
• When negotiation is not effective, there are other options, such as
bringing in a mediator, which can help both sides speak to one another
and move towards a resolution instead of walking away and resolving
nothing.

9. THE VALUE OF CONSTRUCTIVE
NEGOTIATION

11. NEGOTIATION SKILLS

12. PERSUASION & INFLUENCE
(ARISTOTLE’S RHETORICAL TRIANGLE)

13. DALE CARNEGIE’S – “HOW TO WIN FRIENDS
AND INFLUENCE PEOPLE” PRINCIPLES

15. THE FIVE (5) COMPETENCIES OF EQ

17. TRUST - COVEY’S EMOTIONAL BANK
ACCOUNT

19. COVEY’S WIN-WIN MINDSET

21. JOHARI’S WINDOW

22. TRUST ENHANCING STRATEGIES FOR
NEGOTIATORS
• Open and transparent communication
• Mutual respect and tolerance for individual
differences
• Demonstrated care and sincere interest
• Recognition for the value of each individual
team member
• Co-operation and shared commitment

24. BUILDING CREDIBILITY AS A
NEGOTIATOR
• The Credibility Formula: Credibility = Integrity + Expertise.
• Achieving a distinguishable level of counterpart faith and
loyalty is certainly not an overnight occurrence and can be
achieved only through openness; committed people
investment and a proven scorecard of leadership and
performance excellence.
• Negotiator behaviour, actions and decisions congruent with
reliability, fairness, consistency and transparency are
instrumental values which can enhance counterpart
perception of the negotiator’s reputation, standing and
eventually, their willingness and receptivity to influence
and support of proposals

26. PRINCIPLES OF EFFECTIVE
NEGOTIATION
• Allow for Creative Flexibility
• Prepare
• Know the Role of Value – Creating and Claiming Value
• Understand Negotiating Styles – Co-operative vs. Competitive
negotiators
• Manage the Process
• Handle Relationships
• Learn
• Word about Experience – “Experience is your best negotiation tutor.”

27. NEGOTIATION STYLE AND –SKILLS
QUIZ/TEST
• Individual activity (during training intervention):
• Complete the online quiz (7 responses):
www.quibblo.com/quiz/9CYtS6X/Negotiation-Style
• Identify your preferred (dominant) negotiation style and the
appropriateness thereof
• Individual activity (post training intervention):
• Complete the online Negotiation Skills test (76 questions):
www.queendom.com/tests/access-
page/index.htm?idRegTest=3094 – (scientifically validated)
• Identify negotiation skills gaps and recommend improvement
strategies

29. NEGOTIATION STRATEGIES

30. LEARNING ACTIVITY 1
• Group discussion:
Think about the most recent workplace negotiation situation
you found yourself in. Briefly describe the situation.
Were you cooperative or competitive?
How effective were you in your approach?
Were you satisfied with the outcome? Was your partner?
What would you do differently next time?
 Identify the characteristics and skills of an effective negotiator

31. TYPES OF NEGOTIATION
• Integrative/Distributive
• Inductive/Deductive/Mixed
• Soft/Hard/Principled
• Alternative Dispute Resolution (ADR)
• Non-Negotiable Positions/Options

33. CONSOLIDATORY GROUP DISCUSSION
• Critically review the different types of
negotiation. Given your scope of negotiation,
identify the most appropriate type. Justify
your response.
• Review the comparative analysis (table) of
positional bargaining and integrative
bargaining. Given your scope of negotiation,
identify the most appropriate type. Justify
your response.

36. NEGOTIATION OCD
• Negotiation OBSESSIVE CONTROL DISORDER (OCD)
• Avoid being a “Control Freak”
• Guard against trying to “hijack”/capture the negotiation process
• Guard against trying to “micro-manage” the negotiation process –
“Be conceptual and not critical.”
• Guard against being hyper-competitive – rather collaborate
• Avoid being aggressive

37. BEING ASSERTIVE AS A NEGOTIATOR

38. MEASURING YOUR ASSERTIVENESS
AS A NEGOTIATOR
• Do you have difficulty accepting constructive criticism?
• Do you have trouble voicing a difference of opinion with
others?
• Do people tend to feel alienated by your communication
style when you do disagree with them?
• Do you feel attacked when someone has an opinion
different from your own?
• Do you find yourself saying ‘yes’ to requests that you
should really say ‘no’ to, just to avoid disappointing
people?

39. ASSERTIVENESS STRATEGIES
• Be Firm and Decisive - Say No if You Have To
• Ask For What You Want - Matter of Factly
• Achieve Your Goals
• Constructively Resolve Conflict
• Believe in Yourself
• Be Interested In the People Around You

40. NEGOTIATION PROCESS

41. PRIMARY NEGOTIATION OBJECTIVE

42. PHASES OF NEGOTIATION

43. PHASE 1: PREPARATION
• Preparatory points to consider
• Key to preparation – setting ground rules and other guidelines etc.
• Identifying your Hot Buttons
• Doing Research
• Identifying Your Walk Away Position (WAP)
• Identifying Your Best Alternative to a Negotiated Agreement
(BATNA)
• Working within the Zone of Possible Agreement (ZOPA)

44. PREPARATORY POINTS TO CONSIDER
• Goals
• Trades
• Alternatives
• Relationships
• Expected outcomes
• Consequences
• Power
• Possible solutions

45. KEY TO PREPARATION – 10
GUIDELINES/RULES FOR NEGOTIATORS
• #1: All parties must agree on ground rules and guidelines.
• #2: Expect that negotiating will take much more time than you
think, and build that into your plan – contingency planning and -
management
• #3: When it comes to wording ground rules and
agreements/contracts, check and double-check language – be
vigilant with quality assurance and due diligence.
• #4: Establish who the true decision makers are, and make your
choices clear – be decisive and consistent, especially with the
power brokers and deal-makers
• #5: Humour is helpful. Do not take yourself too seriously, and take
responsibility to lighten the mood of the room once in a while –

47. KEY TO PREPARATION – GUIDELINES
FOR NEGOTIATORS
• #6: Apply flexibility and adaptability to the process.
• #7: Build strategic alliances.
• #8: Set yourself up to learn.
• #9: Be a people person – develop and demonstrate
interpersonal competencies, emotional and social
intelligence
• #10: Use collaboration to preserve relationships and
build trust – be hard on the problem (negotiated
issue) and soft on the person

49. IDENTIFYING HOT BUTTONS

50. DOING YOUR RESEARCH
• When doing research and preparing for
negotiations, there are 3 important
considerations:
Collecting facts
Knowing priorities
Knowing principles

51. WORKING WITHIN THE ZONE OF POSSIBLE
AGREEMENT (ZOPA)

53. LEARNING ACTIVITY 2
• Group discussion:
• Identify a typical negotiation scenario in your working environment. By referring
to step 1 of the negotiation process, apply the best practice negotiation
principles to this workplace situation. Ensure that you focus on the following key
points:
 Preparatory points to consider
 Ground rules
 Hot Buttons
 Doing Research
 WAP
 BATNA
 ZOPA

54. STEP 2: EXCHANGING INFORMATION

55. STEP 2: EXCHANGING INFORMATION
– KEY ACTIONS
• This is not a step that many negotiators consider
consciously, except perhaps in legal situations (where it
is referred to as disclosure), but it makes sense, even in
negotiations at home, and, certainly, in the workplace.
• Exchanging information is really an extension of
preparation, and allows both parties the opportunity
to consider all of the available information before a
bargaining meeting takes place.
• The strength of these answers could put you in a much
stronger bargaining position when you present your
ideas to the boss.

56. LEARNING ACTIVITY 3
• Group discussion:
• By referring to step 2 of the negotiation process, apply the
best practice negotiation principles to this workplace
situation. Ensure that you focus on the following key
points:
What information is held in common to both negotiating
parties?
What information you will disclose?
What information you would prefer the other negotiating
party to disclose?

57. STEP 3: BARGAINING
• Responding to Challenges
• Creating win-win solutions

58. PARENT-ADULT-CHILD (PAC) MODEL

60. RESPONDING TO CHALLENGES
• Ways to Stay Calm
• Detach Yourself from the Outcome
• Include Pre-determined Break Times in Your Rules
• Depersonalize the Process
• Work with the Other Party, Not Against Them
• Unspoken Conversations
• Don’t Bring Your Baggage to the Table
• Avoid Power Struggles
• Stay Focused
• Focus on a Positive Process

61. THE 4-STEP CONFLICT RESOLUTION PROCESS –
THERAPEUTIC MODEL FOR NEGOTIATORS
• Step 1: Identify sources of potential and actual
conflict (DIAGNOSIS)
• Step 2: Develop conflict resolution
strategies/techniques (EXAMINATION)
• Step 3: Apply conflict resolution
strategies/techniques (REMEDY)
• Step 4: Control and review the effectiveness of
the conflict resolution strategy/technique
(FOLLOW-UP)

62. CONFLICT RESOLUTION STYLES
• Shark (Competing)
• Turtle (Avoiding)
• Fox (Compromising)
• Teddy-bear (Accommodating)
• Owl (Collaborating)

63. CONFLICT RESOLUTION STYLES FOR
NEGOTIATORS

64. CONFLICT MANAGEMENT GUIDING PRINCIPLES
– TIPS AND TECHNIQUES FOR NEGOTIATORS

68. CREATING WIN-WIN SOLUTIONS
• Keeping an Open Mind
• Long Term and Short Term Relationships
• Use Your Resources (Experts, Mediators and Third Parties)
• Meta-Negotiation
• Identify Common Ground
• Making the Most of Brainstorming
• Thinking outside the Box

69. DE BONO’S SIX THINKING HATS

70. LEARNING ACTIVITY 4
• Group discussion:
• Refer to the preceding learning activities. By
referring to step 3 of the negotiation process,
apply the best practice negotiation principles to
this workplace situation. Ensure that you focus
on the following key points:
Responding to challenges
Creating win-win solutions

72. STEP 4: COMMITMENT AND CLOSING
• Once the parties have completed bargaining, made all the
adjustments, and agreed upon the least uncomfortable result, the
negotiation is ready for commitment and closure.
• Developing a Sustainable Agreement
 What is a Sustainable Agreement?
 Getting everyone’s Perspective
 Reviewing the Information
 Outlining the Options
 Gaining Consensus

73. DEFINING A SUSTAINABLE
AGREEMENT
• A sustainable agreement can be said to reflect the reality of the business i.e. the
reality of business and economic cycles, industries, and real issues that people
face.
• It must also reflect the multiple aspects of the stakeholders who both provide
input, and are affected by the results.
• In developing a sustainable agreement, the partners must ensure that:
 #1: The organizations that they negotiate on behalf of are interested in having an agreement
 #2: The negotiating organizations will enforce and take part in the terms of that agreement.
• If the agreement cannot stand on its own, and the parties who sign it refuse to
use it, then the paper it is printed on is useless.
• An agreement also cannot focus on one aspect of the business when the business
impacts other industries, cultures, or linguistic groups.

74. SUSTAINABLE AGREEMENTS – THE 3 P’S

75. REACHING CONSENSUS

76. REACHING CONSENSUS
• Before an agreement is signed, it is important to have consensus for agreement
among the parties.
• Consensus can be difficult during tough negotiations; generally, the more
stakeholders taking part in the process, the more difficult it is to reach consensus.
• Persuasion, that ability to have people recognize the value in what we are saying,
is an exceptionally valuable communication skill for a negotiator.
• One way to secure commitment is to ask the other party to summarize their
understanding of the agreement, and to get it in writing. To clarify, it can help to
ask them three questions:
 Please explain what we have agreed to.
 Do you agree with what we have agreed to?
 Are you committed to carry out the agreement? If not, what factors need to be clarified?

77. LEARNING ACTIVITY 5
• Group discussion:
• Refer to the preceding learning activities. By
referring to step 4 of the negotiation process,
apply the best practice negotiation principles to a
current workplace situation. Ensure that you
consider the following key points:
Reaching Consensus
Developing a sustainable agreement

78. LEARNING ACTIVITY 6
• Group discussion:
• Critically review and evaluate the 13
negotiation techniques from the article (John
Rampton), in terms of viability and
sustainability.
• Identify and prioritize the most effective
techniques. Substantiate your reasoning.

79. INTEGRATED ROLE PLAY EXERCISE
• Refer to Learning Activity 7
• The facilitator will provide you with detailed
learning instructions.
• Objective: Apply what you’ve learnt the past
two days about negotiation to reach a
mutually beneficial (win-win) agreement.

80. DE-BRIEFING OF ROLE PLAY EXERCISE
• Discuss the (simulated) negotiation process
that you followed. Was it effective in
reaching a win-win agreement?
• What were some of the lessons learned from
this (simulated) negotiation role play
exercise?
• Will you approach future negotiations
differently?

81. CONCLUSION
• Key points
• Summary
• Questions

82. CONTACT DETAILS
• Charles Cotter
• (+27) 84 562 9446
• charlescot@polka.co.za
• LinkedIn
• Twitter: Charles_Cotter
• http://www.slideshare.net/CharlesCotter