Online English Training for Global Professionals www.HumanEnglish.com Negotiating in English MAKING DEALS Today’s Presenters Anton Pereiaslavtsev President Los Angeles, California (originally from Russia) Tony Winn English Trainer & HR Advisor Lisbon, Portugal (originally from England ) © 2009-2011 Globuspeak Inc. All Rights Reserved. Questions for the audience What is ? Команда опытных тренеров Коммуникативная методика Business English Courses PRESENTATIONS TELEPHONING MEETINGS ПРЕЗЕНТАЦИИ ОБЩЕНИЕ ПО ТЕЛЕФОНУ ДЕЛОВЫЕ ВСТРЕЧИ NEGOTIATIONS SOCIALIZING WRITING ПЕРЕГОВОРЫ НЕФОРМАЛЬНОЕ ОБЩЕНИЕ ДЕЛОВАЯ ПЕРЕПИСКА © 2009-2011 Globuspeak Inc. All Rights Reserved. Professional English Courses MARKETING HUMAN RESOURCES LEGAL FINANCE & BANKING SALES MARKETER S JOB HUNTERS HOSPITALITY MANAGEMENT & TOURISM © 2009-2011 Globuspeak Inc. All Rights Reserved. What is Индивидуальные и групповые тренинги Для организаций и частных лиц Стандартизированная оценка знаний английского сотрудников © 2009-2011 Globuspeak Inc. All Rights Reserved. ? Our Philosophy Focused Practice = Results and now over to… Tony Winn WELCOME TO LISBON ! English for HR The leaders of the future? University of Central Lancashire 2011 SUMMARY The vocabulary of negotiating Types of negotiating and negotiators Language for preparing, conducting and concluding negotiations Reformulating and bargaining Negotiating [I or T] to have formal discussions with someone in order to reach an agreement with them The government has refused to negotiate with the strikers. I'm negotiating for a new contract. I've managed to negotiate (= get by discussion) a five per cent pay increase with my boss. able to be discussed or changed in order to reach an agreement Everything is negotiable at this stage - I'm ruling nothing out. the process of discussing something with someone in order to reach an agreement with them, or the discussions themselves The agreement was reached after a series of difficult negotiations. The exact details of the agreement are still under negotiation. Negotiation for the pay increase is likely to take several weeks. Types of Negotiator someone who tries to help two groups who disagree to reach an agreement with each other, usually as a job Some very skilful negotiators will be needed to settle this dispute. negotiate negotiate terms negotiate for negotiation under negotiation negotiator a skilful negotiator negotiating tactics Reach an agreement The Language of Negotiating Negotiation is the process of coming to terms and getting the best deal possible for your company, your department or yourself. Negotiations involve a conflict of interest. Sellers prefer a high price to a low one and buyers a low one to a high one. What one side gains the other side loses and this conflict has to be managed if a friendly atmosphere is to continue. After all, both sides will probably meet again and no one likes to feel they have lost. Another important feature of negotiations is that they take part in an atmosphere of uncertainty where neither side really knows what the other wants or will give. Preparation Bargaining Opening Closing Types of Negotiation We negotiate in most areas of life. Here are some examples. Which areas of life do they come from? If you wash the dishes, I’ll clean the bathroom. If you’ve done all of your homework by the end of the week, I’ll take you to see Arsenal. I’ll give you €200 for it, if you throw in the crash helmet. If you increased your order, we’d give you a better price. Types of Negotiation A business negotiation can be similar to a discussion between friends fixing a social engagement. Two parties have a shared objective: to work together in a way which is mutually beneficial. Proposals and counter-proposals are discussed until agreement is reached. Both sides hope for repeat business. This is an agreement-based negotiation a win-win negotiation Two other types of negotiation are less founded on mutual benefit, but on gaining the best deal possible for your side. This means that each team thinks only about its own interests. In this type, a seller typically seeks to sell a product but is less concerned about repeat business. independent advantage A third type is the negotiation to resolve conflict, for example in a contractual dispute. Here, it is possible that each party regards the other as an opponent and seeks to win the argument. a win-lose negotiation The Negotiating Process 1. Bargaining 2. Preparation 3. Closing 4. Opening Preparation Bargaining Opening Closing a) Setting objectives or specifications and deciding on a negotiating strategy. b) Revealing the initial bargaining position to your opposite numbers. c) Trying to probe the the weaknesses of the other side’s case and convince them that they must change their position and move closer to yours. d) Checking that your position holds good in the light of information received from your opponents and their reactions to your case. e) Judging whether the other other side is determined to stick to their position or will settle for a compromise. f) Making final moves and establishing any trade-offs in order to lead to a settlement. Preparation Identify your minimum requirements. Prepare your opening statement. Decide what concessions you could make. Know your own strengths and weaknesses. Know your role as part of a team. Prepare your negotiating position - know your aims and objectives. Prepare any figures, any calculations and any support materials you may need. Preparation Bargaining Opening Closing Preparation Match each of the four aspects of good preparation and reasons why they are important. a) Knowing your aims and objectives b) Knowing your own strengths and weaknesses c) Preparing any figures, calculations and other materials d) Preparing an opening statement i. means you can support your argument. ii. helps clear thinking and defines purpose. iii. creates reasonable expectations. Preparation Bargaining iv. helps you to know the context Opening Closing Opening Preparation Small talk Bargaining Opening Closing Hello, José Mendes, Sales Manager for ICIT- and my associate Miguel Sousa. Very pleased to meet you. I'm David Moss, and this is my legal adviser Sue Beaton. I hope you had a pleasant flight over. Yes, we did thanks. Are you staying for a few days? Unfortunately we need to get back to Lisbon tomorrow. Opening Preparation Bargaining Opening Closing Opening statement Mr. Moss, to start off with, I just want to say we believe we can offer you a very good deal and come up with a win-win result. Getting down to business Well, we'd better get down to business. Mr. North, to start off with, I just want to say we believe we can offer you a very good deal and come up with a win-win result. Bargaining We can use this form when we think the outcome of a situation is very likely. If + present simple + will/won’t + infinitive If you give us a discount of 5 %, we will place an order for 2,000 units. When the outcome is less certain or imaginary the following form is prefered Its also used in negotiations to make the offer or proposal less direct. Preparation Bargaining If + past simple + would/wouldn’t + infinitive Opening If you gave us a 10% discount, we would place a much larger order. What discount would you offer us if we decided to go to another supplier? Closing Bargaining Language to use to object to a point or offer I understand where you're coming from; however,… I'm prepared to compromise, but... The way I look at it... The way I see things... If you look at it from my point of view... I'm afraid I had something different in mind. That's not exactly how I look at it. Preparation From my perspective... I'd have to disagree with you there. I'm afraid that doesn't work for me. Is that your best offer? Bargaining Opening Closing Bargaining Tips Preparation Bargaining Opening Use words that will bring both parties together, e.g. we, us, jointly, together etc. Put the negotiation into the context of the market or environment you both work in and summarize how you can reach short-term or long-term objectives Mention some of the variables in the negotiation but keep some of them up your sleeve for later Remind your partner what is important to them and what is important to you Closing Closing Preparation Bargaining Opening Closing Well, I guess that about wraps it up. Do you think we could have that in writing by the end of the week? Great. I’ll get my secretary to fix the next meeting for as soon as possible. Can I just go over what we’ve discussed again? Okay. So, the goods will arrive by Friday as we agreed. Have I missed anything out? Were there any final questions before we finish? I look forward to doing business with you again soon. Thank you for coming all this way on such a cold morning. To sum up, the supplies will be at a 2.5% discount as compared to the last order. Closing Before making or accepting a proposal you need to summarize where both parties have come from. You also need to evaluate the present position of both. You will need to persuade your partner in negotiation that one way or another it is in their interest to make a deal with you. Preparation Bargaining Opening Closing Closing Great, we agree on prices, discounts, the items you want to buy, delivery, and method of payment. I’ll send you an email confirming what we have agreed,and attach an invoice. Language to Use in Accepting a Proposal Preparation It sounds like we've found some common ground. I'm willing to leave things there if you are. Let's leave it this way for now. I'm willing to work with that. I think we both agree to these terms. I'm satisfied with this decision. I think we should get this in writing. I'd like to stop and think about this for a little while. You've given me a lot to think about/consider. Would you be willing to sign a contract right now? Let's meet again once we've had some time to think. Bargaining Opening Closing Closing Preparation Bargaining Opening Closing Formalize the agreement/negotiation In most business negotiations it is a good idea to get something down in writing. Even if a decision has not been made, a letter of intent to continue the negotiations is often used. This is a way for each party to guarantee that talks will continue. A letter of intent often outlines the major issues that will be discussed in future negotiations. In some cases a confidentiality agreement is also necessary. This is a promise from both parties to keep information private between discussions. When an agreement has been decided, a formal contract can be made. On the other hand, depending on the level of trust, a simple handshake and verbal agreement may be all that is needed. However, even if nothing is put formally in writing, it is wise to send an e-mail or letter that verifies the terms and puts the agreement on record, especially when a specific number is decided on. Negotiating in English Thanks for your participation! info@humanenglish.com