Debate In Negotiation The Four Phases of negotiation Phase One: how to prepare Phase Two: how to debate Phase Three: how to propose Phase Four: how to bargain Slide 1 Debate In Negotiation Debate is the act of two way communication and shapes the tone of the negotiation Proposing takes 10 % of the time, bargaining less than 5 % and debate takes up the rest; more than 80 % Kennedy ”If we can organise and discipline our debate behaviour we have a very good chance of quite dramatically improving our negotiation effectiveness” Slide 2 Rackham and Carlisle R & C conducted an interesting study where they sought to describe how “effective” and “average” negotiators behave. What is an effective negotiator? Rated as effective by both sides Track record of significant success Low incidence of implementation failures Slide 3 Rackham and Carlisle Skilled negotiators show marked differences in their use of specified behaviour categories compared with average negotiators Confirmed what “everyone” knew statistically In negotiation training people are introduced to effective and ineffective categories of behaviour, and these are further developed through simulation and role-playing Slide 4 Variances in behaviours Slide 5 Variances in behaviours Slide 6 Types of debate The message is that debate can be either constructive or destructive Constructive debate moves us towards an acceptable solution, destructive debate moves us away from desirable outcomes What are the destructive behaviours? Slide 7 Destructive behaviours Slide 8 Interruption It is appropriate to interrupt somebody who is clearly factually incorrect in their statements True or false? Slide 9 Other irritators Blocking Blocking denies the opportunity to give more information Don't block – hear them out Point scoring Attacking/Blaming Threats Slide 10 Constructive behaviours How do we deal with someone who is behaving destructively? The alternative to destructive argument is constructive debate There is no alternative to a constructive approach whatever the behaviour of the other negotiator Slide 11 Constructive behaviours Slide 12 Open or closed? Do you have a safety policy? Will it pass inspection? How did you calculate those figures? Is that important to you? What aspects of my proposal are acceptable to you? Slide 13 Open or closed? Is that agreed? Have you changed your mind? How do you expect me to accept that proposal? Can you do better than that? How can you improve on your offer? Slide 14 Assurances “Gentlemen, I am in the solution, not the retribution business” How to deal with an angry hotel guest “Before you say anything, I have three things to say to you: first, I unreservedly apologise for the distress we have caused you; second, I am going to listen to what you have to say, and third, I am going to put right whatever is wrong” Slide 15 Moving forward Slide 16 Spot the difference? Slide 17 Signalling? It would be extremely difficult to meet that delivery date We do not normally extend our credit facilities It is highly unlikely that my boss will agree to a free upgrade Under these circumstances we cannot agree to compensation As things stand our prices must remain as listed I can't give you a better discount on your current volume Slide 18 Proposing Slide 19 Proposing Slide 20 Proposing Signalling is the bridge from debate to proposal Topic of chapter 9 – how to make an effective proposal Slide 21 Proposing – look at these: I wish I need I hope I require I would like We prefer We want It is necessary that It would be nice Would you? this suit Slide 22 Proposing “It is the ability to shift from loose informal proposal language to tight formal and assertive proposal language that improves your performance” A proposal is a tentative suggestion “We could make it four visits a week” “We could look at the number of visits” Slide 23 Look at this proposal Effective proposals consist of two parts: the condition and the offer Ineffective proposals only consist of offers The condition may be vague or specific, but the offer must always be vague Slide 24 Proposing Kennedy writes “The most common mistake negotiators make when presenting a proposal is to drown it in irrelevant verbiage by confusing the proposal and debate phases. In short, they propose and explain their proposals at the same time Slide 25 Proposing Make a proposal, then shut up. Slide 26 Effective proposals To make an effective proposal, follow these main “rules” should be practised 1. 2. 3. 4. It should be conditional It should be presented unadorned, without explanation On completing the proposal you should go silent It should be presented with condition first, then followed by the offer Slide 27 What is wrong here? Slide 28 How to receive a proposal Slide 29 What if we give? Activity 1: How did Greg develop his demands? Activity 2: How did Simon respond? Activity 3: Did Simon's proposal styles improve? Give an example. Slide 30 If - then Activity 1: What was the most significant aspect of Celia's and Greg's bargaining language? Activity 2: How did Celia tackle Greg's proposals? Activity 3: How did Greg respond to Celia's requirement to bring his charges within her budget? Activity 4: What characterised the negotiating exchange before they reached agreement? Activity 5: Why did Greg want to put the agreement in writing? Slide 31