fundamentals of negotiation

2. World&is&a&stage&of&
NEGOTIATION&

3. Our$ability$to$nego/ate$
has$been$embeded$
Since&we&were&born&&

4. remember%when%you%want%to%buy%toys%
But$your$mom$said$NO$

5. what did you do
next?

6. CRY TILL YOU GET YOUR TOY

7. Our lives are filled with
negotiation

8. WITH YOUR BUSINESS PARTNER

9. WITH YOUR BOSS

10. WITH YOUR WORKMATE

11. WITH YOUR PARTNER

12. What is negotiation
A give & take decision making process involving 2 or more persons
with different preference

13. it is a collection of behaviours that
involve communication, marketing,
psychological, assertiveness &
conflict resolution

14. To reach an
agreement
To Buy or sell
products
Why
do we
negotiate
To Solve a
problem

15. NEGOTIATION SKILLS
NEGOTIATION FEATURES

16. Min 2 people
Predetermined goals
Expecting outcome
Resolution & consensus
Parties willing to modify their positions
Parties should understand the purpose of negotiation

17. NEGOTIATION SKILLS
NEGOTIATION PROCESS

18. Preparation
Before any negotiation takes place, a decision needs to be taken as to
when and where a meeting will take place to discuss the problem and who
will attend. Setting a limited time-scale can also be helpful to prevent
the disagreement continuing.

19. Preparation Discussion
During this stage, individuals or members of each side put forward the case as
they see it, i.e. their understanding of the situation.

20. Preparation Discussion Clear Goals
From the discussion, the goals, interests and viewpoints of both sides of the
disagreement need to be clarified.
It is helpful to list these factors in order of priority.

21. Preparation Discussion Clear Goals Win-win
'win-win' outcome where both sides feel they have gained something
positive through the process of negotiation and both sides feel
their point of view has been taken into consideration.

22. Preparation Discussion Clear Goals Win-win Agreement
Agreement can be achieved once understanding of both sides’ viewpoints and
interests have been considered.

23. Preparation Discussion Clear Goals Win-win Agreement Actions items
From the agreement, a course of action has to be implemented to
carry through the decision.

24. NEGOTIATION SKILLS
NEGOTIATION TYPES

25. Negotiation Types

26. individual gains Joint gains
Negotiation is seen as an
opportunity to be creative and
think outside of the box in
order to make the pie bigger.
view the other parties as
“the enemy” to be defeated.
Negotiation’s aim is not to find
an alternative solution that
would benefit both parties,
view the other party as a
partner or a teammate.
sources are limited and
everyone wants to claim their
share of the pie.
sources are not limited, the
ultimate goal to expand the pie,
so there is more for everyone.

27. I think we all agree when I say
that the integrative bargaining
is the right negotiation
behaviour to use
This type of resolution will help
building long-term relationships
and trust between the parties.

28. Negotiation strategy matrix
+ Issues -
Relationship -
You Win
They Win
You Win
They Lose
You Lose
They Win
You Lose
They Lose

29. 3 Questions to prepare before entering to a negotiation
Why, How, whom

30. 3 Questions to prepare before entering to a negotiation
Why, How, whom
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31. 3 Questions to prepare before entering to a negotiation
Why, How, whom
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32. 3 Questions to prepare before entering to a negotiation
Why, How, whom
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33. NEGOTIATION SKILLS
NEGOTIATION CONCEPTS

34. 2 tactics that you must have in mind
Best Alternative To Negotiated Agreement
Zone Of Possible Agreement

35. 2 core concepts that you must have in mind
Best Alternative To Negotiated Agreement
BATNA tells you when to accept and
when to reject an agreement
When a proposal is better than your
BATNA……. accept it
When a proposal is worse than your
BATNA……. reject it

36. 2 core concepts that you must have in mind
Zone Of Possible Agreement
BUYER SETTLEMENT RANGE ZOPA
SELLER SETTLEMENT RANGE
SELLER
WALKAWAY
0
4500 5000
7000
BUYER
WALKAWAY

37. Know yourself who
you represent
Define your interest
outcome
Do your
research Know your
their BATNA
Try to predict
your ZOPA
set realistic
exceptions
Decide your
walkway

38. NEGOTIATION SKILLS
NEGOTIATION BEHAVIOUR

39. Gavain kennedy describes 3 behaviours that we can display and
MAINAPLUTING
AGGRESSION
INTIMIDATION
EXPLOITATION
DEMEANING
ALWAYS SEEKING THE BEST
FOR SELF
NO CONCERN FOR PERSON
NEGOTIATING WITH
WIN WIN APPROACH
CO-OPERATION
TRUSTING
PACIFYING
RELATIONAL
GIVING
GOOD INTENTIONS
2 WAY EXCHANGE
GIVE ME SOME (RED)
I WILLL GIVE YOU SOME (BLUE)
TIT FOR TAT STRATEGIES
CONCENTRATING ON PROFITS
PURPLE BEHAVIOUR INCITES
PURPLE BEHAVIOUR
encounter in a negotiation

40. NEGOTIATION SKILLS
NEGOTIATION STEPS

41. OPENING
EXPLORATION
CREATE MOVEMENT
CREATE CLOSURE
CLOSING
Set the offer at most appropriate level
there is no such thing as a first offer too good to refuse
opening within negotiations are like a game of chess both
parties will begin with an offer that is far from target

42. OPENING
EXPLORATION
CREATE MOVEMENT
CREATE CLOSURE
CLOSING
identify needs, wants interests
thing you can’t do
without
thing you prefer
to have reasons that lies
behind wants and needs
the skilful negotiator can see where the other party expect the final outcome

43. OPENING
EXPLORATION
CREATE MOVEMENT
CREATE CLOSURE
CLOSING
prepare to compromise
Restate your case:
Ensure the agreement is clear
Explore possibilities Ask What if
exchange be clear
minimize the perception
on what is left to agree
write it down
prevention is better than cure

44. OPENING
EXPLORATION
CREATE MOVEMENT
CREATE CLOSURE
CLOSING
keep moving don’t get bogged down in details
focus on issues give recognition
give other party final opportunity to clarify
any issues

45. OPENING
EXPLORATION
CREATE MOVEMENT
CREATE CLOSURE
CLOSING
list of issues of both sides
prepare a draft framework
tackle outstanding details
record each point as it is agreed
agree a procedure for complaint
agree a process to review
the skilful negotiator will not be distracted from their task

46. NEGOTIATION SKILLS
NEGOTIATION TACTICS

47. High ball
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DKFCPEJQTUVJGFKUEWUUKQPSWKVGRQUUKDN[QPVJGNQYUKFG
CNVJQWIJKHVJG[
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UWTRTKUG

48. Low ball 6JKUKUCOGVJQFHQTDW[GTUYJGTG[QW
UVCTV[QWTDKFFKPIRCTVKEWNCTN[NQY
$GECTGHWNCDQWVUVCTVKPIQWVCUMKPIVJGQVJGTRGTUQPYJCVVJGKTRTKEGKUCU
VJKUYKNNCPEJQTVJGFKUEWUUKQP
CPFVJGKTGZRGEVCVKQPUCVCJKIJGTRTKEG

49. Big fish
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9CXGOQPG[CTQWPF#TTKXGKPCDKIHCUVECTTGUUGZRGPUKXGN[0COGFTQR

50. Bluff
6GNNVJGQVJGTRGTUQPUQOGVJKPIVJCVYKNNKORTGUUVJGOCPFIGVYJCV[QW
YCPVGXGPVJQWIJKVKUPQVVTWG#EVEQPHKFGPVN[QPQVJGUKVCVGQT
QVJGTYKUGKPFKECVGVJCV[QWCTGN[KPI

51. Good BAd
cop
1PGRGTUQPCEVUKPCPCIITGUUKXGCPFRWUJ[YC[OCMKPIWPTGCUQPCDNG
FGOCPFUCPFTGSWKTKPIEQORNKCPEG
6JGQVJGTRGTUQPVJGPCEVUKPCMKPFCPFHTKGPFN[YC[CUMKPIPKEGN[CPF
IGVVKPIEQORNKCPEG

52. Delays
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53. NO AUTHORITY
4GHWUGVQIKXGKPQPKVGOUDCUGFQPVJGHCEVVJCV[QWJCXGPQVDGGPIKXGP
CWVJQTKV[VQFQYJCVKUDGKPITGSWGUVGFD[VJGQVJGTRGTUQP

54. CHANGE THE NEGOTIATOR
%JCPIGVJGRGTUQPYJQKUFQKPIVJGPGIQVKCVKQP6JGPGYPGIQVKCVQTVJGP
IQGUQXGTCNNVJGFGEKUKQPUCPFCITGGOGPVUYKVJCHKPGVQQVJGFEQOD

55. Verbal communication
Ethical
Emotional control
interpersonall skills
Problem analysis
Decision making
collabrotive
Active Listing
preparation
Top effective negotiation skills
Problem solving