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Management - Successful Negotiation Skills '13, (v1.6)

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Effective negotiation skills are essential to many corporate disciplines including sales, marketing, legal, technical roles. But this also plays into interpersonal relationships such as marriage, parenting and personnel management. Preparation is essential to a successful negotiation, even as far as identifying if or when it is necessary to negotiate. Amicable negotiations seek a win-win scenario - a solution that is acceptable to both parties. But not all negotiations are fair - It is important to identify whether the other party is pursuing a win:lose or win:win outcome, so that appropriate tactics can be taken. This presentation explores some basic skills, techniques, and planning methodologies for a successful negotiation.

Management - Successful Negotiation Skills '13, (v1.6)

  1. 1. Gabriel DusilVPMarketing& .SuccessfulNegotiationSkills
  2. 2. ©2013  gdusil.wordpress.comPage 2Download the Original PresentationDownload the native PowerPoint slides, from my blog:•, check out other articles on my blog:•
  3. 3. ©2013  gdusil.wordpress.comPage 3AgendaGoldenRulesRolesPhasesMandateAvoidingNegotiationPrinciplesDefinition
  4. 4. ©2013  gdusil.wordpress.comPage 4Definitions“Resolution of conflict by mutualcompromise” The 10 Rules of Negotiation,Alan McCarthy, Catalyst“A dialogue intended to resolvedisputes” Wikipedia“…Involved parties resolvedispute by holding discussionsand coming to an agreement”“Bargaining (give and take)process between two or moreparties (each with its own aims,needs and viewpoints) seekingto discover a common groundand reach an agreement” www.businessdictionary.comDon’tnegotiate,unlessyouhaveto.
  5. 5. ©2013  gdusil.wordpress.comPage 5PrinciplesIf there isto resolve,then there isno need toNegotiateIf there is nopossibility of a,then there isnothing toNegotiateIf there is nowillingness to,hen there isnothing toNegotiateBoth sidescan winwithout theneed forbut not on thesame terms
  6. 6. ©2013  gdusil.wordpress.comPage 6Avoiding NegotiationWin:Lose – Dictating Terms• “Take it or leave it”Lose:Win – Surrender• Used a controlled manner so asnot to set a precedent (i.e. givein with conditions)
  7. 7. ©2013  gdusil.wordpress.comPage 7Avoiding NegotiationWin:Win - Problem Solving• Both parties seek a resolutionLose:Lose - Arbitration• Unwilling to have a direct dialog?Then an Arbitrator is required
  8. 8. ©2013  gdusil.wordpress.comPage 8What is a Negotiation?Position Orientated• Need a mandate before starting Follow the 5 Negotiation Stages• Need to understand both partiesobjectives from the negotiation It helps to understand what aretheir motivations as wellAmicable negotiations seek aWin:Win• Identify if the other party is tryingto do the sameBepreparedforsomeCreativeThinkingSharedinterestsorSharedriskcanresultinawin:win
  9. 9. ©2013  gdusil.wordpress.comPage 9Negotiation MandateSeparate & Understand thedifference between…• Your Corporate goals• Your Departmental or Regionalgoals• Your Personal goalsUnderstand your leverage• Your Strengths & Weaknesses• The other party’s Strengths &WeaknessesScenario Planning• Know what is your bottom line(worst case scenario) What is your “Walk-away” price• Agree on your top line(best case scenario)Planyourgoals&contingencies…
  10. 10. ©2013  gdusil.wordpress.comPage 10Negotiation Is……Co-operativenotCompetitive…PragmaticnotEmotional…WhereConcessionsstart small& conditionsstart large…whereBehaviourbreedsBehaviour
  11. 11. ©2013  gdusil.wordpress.comPage 11Negotiation Stages1.Plan2.Discuss3.Propose4.Agree5.TradeIfConflictOccursUnderstandWhyThereisConflict&WhatCanBeDoneAboutit
  12. 12. ©2013  gdusil.wordpress.comPage 121. Planning – Tactics & StrategyTactics• Agenda• Concessions• Roles• Venue• Authority• Disclosures• Timing Strategies• Soft, Hard or Honorable?• Keep it simple & flexible Remember –It’s about…• Interests notpositions• Problems notpersonalities
  13. 13. ©2013  gdusil.wordpress.comPage 131. Planning - Soft, Hard or HonorableSoft Hard HonorableParticipants are friendly Participants are enemies Participants are problem solversGoal is to reach an agreement Goal is conquest Goal is an amicable outcomeMake concessionsCultivate the relationshipMake Demandsas a condition of the agreementSeparate negotiatorsfrom the problemSoft on the issues & people Hard on the issues & people Soft on people & hard on issuesEasily change position Dig into your position Focus on common interestsMake offers Make threats Explore common interestsDisclose your bottom line Push for revealing their bottom line Avoid need to reach a bottom lineAccept a one-sidedcompromiseDemand one-sided gainas the price of the agreementExplore scenarios witha double-sided gainInsist on mutual agreement Insist on maintaining your position Develop multiple optionsAvoid a contest of wills & egos Win a contest of wills & egos Insist on objective criteriaYield to pressure Apply pressure Result on common principles
  14. 14. ©2013  gdusil.wordpress.comPage 141. Planning – Team RolesLead Recap ObserveChairman over the agenda Maintains integrity of leader Maintains integrity of companyActs as a traffic cop Summarizes each session Watches body languageNot always the most senior,not always the same personAnyone trusted by the leader,with good listening skillsKeeps quiet. Has excellentlistening skillsGive final approval Eyes & ears of the leader Takes notesPerson that introduces new topics Looks for traps Looks for trapsCan call for an adjournment Can call for an adjournment Can call an adjournmentOnly one to agree without a break Takes the heat off the leader Aware of tone of proceedingsEveryteamshouldhave3roles. Ifnot,thenrolesneedtobeshared
  15. 15. ©2013  gdusil.wordpress.comPage 152. DiscussionRemember• Respond positively• Listen more - Talk less• Read body language• Avoid interrupting• Always question & explore• Never assumeFlags & Signals• Identify willingness/unwillingness• Understand their conditions,objections, & motivations• Explore & question• Beware of being manipulated• Always reconfirm
  16. 16. ©2013  gdusil.wordpress.comPage 163. ProposeDo…• Propose & provide alternatives• Take the initiative• Advance the discussions• Be realistic• Adjourn during disagreement• Realise their needs & limitationsDon’t…• Complain (propose alternatives)• Interrupt proposals• Use emotion as a bully technique• Be bullied by emotion1. Startwithspecificconditionsandfollowthroughwithtentativeproposals2. ConditionsStartLarge,ConcessionsStartSmall3. Alwayssummarizetoensurebothsidesareonthesamepage
  17. 17. ©2013  gdusil.wordpress.comPage 173. ProposeBundle your OfferConsider your OptionsReact to the DiscussionPlan your TradeablesRecognise your LimitationsUnderstand your Leverage
  18. 18. ©2013  gdusil.wordpress.comPage 184. Trade – Do’sDo…• Continually review objectives• Plan your tradeables in advance• Plan your receivables in advance• Recognise your limitations• Ensure that no one leaves untilthe terms of the agreement areconfirmed1. Today’sgiftistomorrowsstarting-point2. Tomorrow’sstarting-pointislowerthantoday.
  19. 19. ©2013  gdusil.wordpress.comPage 194. Trade - Don’t’sDon’t…• Give away free gifts• Concede your low costtradeables too soon• Give an inch - Trade it instead• Trade items that you don’t havethe authority• Bluff on ultimatums• Salami the deal1. Whatisitworthtoyouvs.theotherparty?2. Whatdoesitcost you?3. Whatdoyougetinreturn?4. Whatisinitforyou?
  20. 20. ©2013  gdusil.wordpress.comPage 204. TradeDoYouHaveTheAuthority?Tradable ItemsTime Duration of the contract or individual itemsGoods Quantities, Quality, Features & SubstitutesServices SLA terms, sigma 6, 24x7, ResponseStaff Personnel, Management, Regional officesGuarantees Guarantors, Insurance, Liabilities, BondsMoney SRP, Discounts, Financing, InvestmentWarranty Liability, Coverage, Duration & ExtentRisk Who carries it? Who shares it?SRP – Suggested Retail Price
  21. 21. ©2013  gdusil.wordpress.comPage 214. TradeNegotiable• Payment terms• Support• References• Staff & Executives• Terms & Conditions• Price contingencies• Timescale• Financing• ResourcesCareful Negotiating• Intellectual Property Rights (IPR)• Futures (Products or Services)• Legal or Regulatory Compliance• Principles• Ethics & Morals• Company Policy
  22. 22. ©2013  gdusil.wordpress.comPage 225. Agreement - ChecklistDid you address, agree, or conclude on all objectives?Did you decide when to stop trading in the agreement?Did you Summarise agreed positions on both sides?Did you outline the terms of the agreement in detail?Did you confirm in writing all items verbally agreed?Listenmore,Talkless
  23. 23. ©2013  gdusil.wordpress.comPage 23Never Compromiseyour ethicsNever negotiatewith yourselfNever accepttheir first offerNever take theirfirst offerNever give awayfree giftsNever unbundle(salami) the dealNever take thequick dealNever revealyour bottom line5. Agreement - Never…
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  25. 25. ©2013  gdusil.wordpress.comPage 25Synopsis – Successful Negotiation SkillsEffective negotiation skills are essential to many corporatedisciplines including sales, marketing, legal, technical roles. But thisalso plays into interpersonal relationships such as marriage,parenting and personnel management. Preparation is essential to asuccessful negotiation, even as far as identifying if or when it isnecessary to negotiate. Amicable negotiations seek a win-winscenario - a solution that is acceptable to both parties. But not allnegotiations are fair - It is important to identify whether the otherparty is pursuing a win:lose or win:win outcome, so that appropriatetactics can be taken. This presentation explores some basic skills,techniques, and planning methodologies for a successfulnegotiation.
  26. 26. ©2013  gdusil.wordpress.comPage 26TagsGabriel Dusil, Negotiation, Negotiation Techniques, SuccessfulNegotiation, Negotiation Skills, Negotiation Mandate, NegotiationStrategy, Negotiation Tactics, Negotiation Stages