Effective Negotiation Strategies

JOHAN IRWAN KAMAROZAMAN
Certiﬁed Directive Communication International Trainer
FUNDAMENTAL OF
SUCCESSFUL NEGOTIATIONS

Leap Leadership Academy |
The world is changing
3Source: A Whole New Mind, Dan Pink
18th Century 19th Century 20th Century 21st Century
AGRICULTURE
AGE
Farmer
INDUSTRIAL
AGE
Factory Worker
INFORMATION
AGE
Knowledge Worker
CONCEPTUAL
AGE
Concept Worker

The way we do work has changed
4
< 20th Century 21st Century >
Process based Concept based
Management skills
is crucial
Leadership skills
is crucial
Quality & Productivity Creativity & Innovation
Less Competition Stiff Competition

What is negotiation?
5
Negotiation is the process of two
or more parties working together
to arrive at a mutually acceptable
resolution of one or more issues.

Negotiation is NOT
6
When your boss gives you an order and your
ONLY choice is to do what he or she says.
If an outsider is brought in to make a decision
between parties using arbitration, the parties are
legally bound to follow the arbitrator’s decision
When parties are not working together to reach
an agreement
A contest with other parties. We are not
competing with the aim of making sure we crush
the opposition

Negotiation is
7
We aiming to do the best we can for ourselves
We are less interested in the sporting aim of
competing and more interested in looking out for
ourselves
You want to do well for yourself, but not
because you want to beat someone else
Effective negotiation is held in its proper context
as a mechanism for pursuing interest.

Features in negotiation
8
• Minimum two parties
• Predetermined goals
• Expecting Outcome
• Resolution and consensus
• Parties will modify their positions
• Parties should understand the purpose of negotiation

Why do we negotiate?
9
• To reach an agreement
• To beat opposition
• To settle an argument
• To make a point

Negotiation is not compromising
10
NEGOTIATION IS
PROBLEM SOLVING

Leap Leadership Academy | 11
Context Setting

4 Steps to Effective Negotiation
12
1
Prepare
2
Negotiate
3
Close
4
Perform

Should I negotiate?
13
How do you feel about
the negotiation?
Beneﬁts vs Cost / Risk

Know yourself
and your goals
14
“If you don’t know where
you are going, you might
end up some place else.”
— Yogi Berra

What is your alternatives?
15

Types of negotiation
16
Concern for our interest
Concernforotherinterest
Hard
Adversarial
Soft
Accommodating
Avoidance
Mutual Gains
Compromise

Think win-win
17

4 Key Points for Win-win
18
• Separate PEOPLE from the PROBLEM
• Focus on INTEREST not POSITIONS
• Generate variety of OPTIONS for MUTUAL GAINS
• Insist on using OBJECTIVE CRITERIA
Principle Based Negotiation

7 Elements of Effective Negotiations
19
Interests
Standards
Options
Relationship Communication
Alternatives Commitment

Position based vs
interest based
20

Interest based negotiation
21
• Things you say you want
• Demands
• Terms and Conditions
POSITION
• The underlying motivations
• Needs and concerns
• Fear and inspirations
INTEREST
POSITION
INTEREST

Ice Berg Perception
22
• Look behind
positions for
underlying interests
• Ask “why?” and
“why not?”

The purpose of negotiation
is to satisfy your interest
and the other side’s.

DEVELOPING OPTIONS
25

Developing Options
26
4 major obstacles to developing mutual gain:
• Premature judgement
• Searching for a single answer
• Assumption of a ﬁxed “pie”
• Thinking that “solving the problem is their problem.”

DEVELOPING OPTIONS
27
Instead of dividing the pie, why not enlarging the size of the pie?

What is an options?
28
• An option is a possible agreement or part of one
• An option is not a commitment
• Options are exploring what we could do.
• Explore options before making any decision will help on
satisfying mutual interest.

Brainstorming
29

Before Brainstorming
30
• Deﬁne your purpose
• Choose a few participants
• Change the environment
• Design an informal atmosphere
• Choose a facilitator

Developing options through
brainstorming
31

Brainstorming Rules
32
• No criticism
• No commitment
• Just invent ideas
Record the ideas in full view

After Brainstorming
33
• Star the most promising ideas
• Invent improvements for promising ideas
• Set up a time to evaluate ideas and decide

Inventing options enhances the
negotiators power
34
Invent options that help meet
the interest of both sides
Do not evaluate during the
brainstorming - evaluate after the
brainstorming

UNDERSTANDING BATNA
35
B
A
T
N 
A
est
lternative
o a
egotiated
greement
*It is the best you can do WITHOUT THEM.

Should I reveal my BATNA?
36
If you have a strong one, it is worth revealing it to
your opponent.
If you have a weak one, however, it is better to keep
that detail hidden.

"The reason you negotiate is to produce
something better than the results you
can obtain without negotiating.”
— Roger Fisher & William Ury
When a proposal is better than your BATNA: ACCEPT IT!
When a proposal is worse than your BATNA: REJECT IT!

Understanding ZOPA -
Zone of Potential Agreement
38
Seller Walks Away Seller Desired Price
Buyer’s Desired Price Buyer Walks Away
Zone of Potential Agreement
(ZOPA)

Standards: The Power of
Objective Criteria
39
Objective criteria are factual pieces of
information, independent of the parties in the
negotiation, that are relevant to what should or
should not be agreed to in that negotiation

Human response to fairness
40

Three basic points when
discussing objective criteria
41
• Frame each issue as a joint search for objective criteria
• Reason and be open to reason as to which standards are
most appropriate and how they should be applied
• Never yield to pressure, only principle

Example of Objective Criteria
42
• Market value
• Precedent
• Scientiﬁc judgement
• Professional standards
• Efﬁciency
• Costs
• Moral standards
• Equal treatment
• Tradition
• Reciprocity

4 I N S A N I T I E S
B A R R I E R S T O
C O M M U N I C AT I O N

1 . C O M M O N S E N S E I S O B V I O U S

2 . I F I C A N D O I T, O T H E R S S H O U L D B E
A B L E T O D O I T

3 . P E O P L E S H O U L D B E FA I R

4 . T R U T H I S U N I V E R S A L

We don’t see the world as it is,
we see it as who we are.

Title Text
50
INTERNAL
REPRESENTATION
STATE
PHYSIOLOGY
BEHAVIOUR
CONSCIOUS
UNCONSCIOUS • Meta-Programs
• Values
• Beliefs
• Decisions
• Memories
EXTERNAL
EVENTS
THE FILTERS
D E L E T I O N1
D I S T O RT I O N2
G E N E R A L I Z AT I O N3
NLP COMMUNICATION MODEL

D E L E T I O N1
D I S T O RT I O N2

D E L E T I O N1
R E T I C U L A R A C T I VAT I N G S Y S T E M

D I S T O RT I O N2
Assumptions created from:
1. Past experience
2. What we have been told
3. Meaning we give to an event

We draw global conclusions
based on one or two experiences.

} Create
PERCEPTION
D E L E T I O N1
D I S T O RT I O N2

P E RC E P T I O N
i s
R E A L I T Y

M A C L E A N ’ S M O D E L
Our brain feels about 30,000
times faster than it acts, and it
acts about 30,000 times faster
than it reasons.

C O L O R E D G L A S S S Y N D R O M E
Most of us look the world and interpret it based on their
own perspective.

C O L O R E D B R A I N
C O M M U N I C AT I O N I N V E N T O RY

GREEN BRAIN

RED BRAIN

BLUE BRAIN

PURPLE BRAIN

▪ Detailed oriented
▪ Highly organized
▪ Create system
▪ Make things practical.
▪ Slow in action / decision
▪ Over focus in details at the
expense of big picture.
▪ Friendly
▪ Considerate
▪ Concern for people
▪ Team player.
▪ Emotional
▪ Overly concern for people
▪ Misunderstood for mixing up
work & personal.
▪ Objective driven
▪ Think through before acting
▪ Analytical
▪ Focus.
▪ Insensitive,
▪ inflexible,
▪ non-expressive.
COLORED COMPARISON
Processor Strengths Gaps
▪ Action driven
▪ Fluid
▪ Mobile and Adaptable
▪ Communicate well.
▪ Make rash decision
▪ Disorganize
▪ Chaotic
▪ Impatient.
GREENREDBLUEPURPLE

Identifying Need
68
The key to successful negotiation is to ask
intelligent questions and listen closely to
the answer.

Asking intelligent questions
69
O P E N Q U E S T I O N C L O S E D Q U E S T I O N
HOW?
Who, what, when, how, where
WHY?
Do you, have you, is it,
can you, etc.
To provide information
WHEN TO
USE?
Gain clarity/confirmation
on choice/decision
Lengthy answerWHAT? Yes or no answer

Ask question to change people’s mind
70

Albert Mehrabian on non-verbal
communication
71

Building Rapport
72

Matching and Mirroring
73
When 2 persons are in rapport, they are matching each other

Matching and Mirroring
74
When 2 persons are not in rapport, they are not matching
each other

Body Language
75

Speed and Volume
76

Keywords
77

Usage of Metaphor
78

BODY LANGUAGE SIGNS
79

When dealing with
people, let us
remember we are not
dealing with creatures
of logic. We are dealing
with creatures of
emotion
— Dale Carnegie

Mac Lean’s Model
I think rationally here
I feel here
I re-act here
It enter here

Open-Loop vs Closed-Loop

Emotions are contagious

Emotion vs Cognitive Intelligence

Conscious mind
Avoid Pain or
Gain Pleasure
Apparent
Reasoning
Why?
Subconscious
mind
Underlying
Reason
Underlying
Reason
Underlying
Reason
Underlying
Reason
Underlying
Reason
T H E I C E B E R G P E R C E P T I O N
W H AT W E S E E I S
A R E S U LT O F
W H AT W E C A N N O T S E E
85

W H AT W I L L Y O U
D O W I T H
R M 2 0 M I L L I O N ?
86

T H E 8 E M O T I O N A L D R I V E R S

Five concern when negotiating
88
Appreciate
Autonomy
Afﬁliation
Status
Role

How to influence
89
Source: Inﬂuence, Dr. Robert Chialdini

Effective Negotiation Strategies

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