Carillion CLP Negotiation Skills Slides

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CLP Negotiation Skills
Getting what you want without
losing the relationship
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Negotiation Skills
Objectives
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Understand the key techniques for formulation of strong
business relationships
Prepare and plan negotiations in a structured and
professional manner
Understand how to structure a negotiation and maintain
control of the phases and the agenda
Have the confidence to obtain the best agreement for
the business
Use a range of tools for influence
Professionally handle tough negotiation tactics which
are used against us
Deal with changing scenarios that require adept,
sensitive and firm negotiation.
Negotiation Skills
Topics
 Managing Relationships
 Initial Negotiations
 Negotiating When Change Occurs
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Negotiation Skills
Data
Process
Relationship
Who are you?
What are our
objectives?
Let’s do it!
How can we work
together on this?
What would be
the best way to
resolve this?
What is important to
them and us?
What will success do
for us?
What is this
negotiation about?
What do we both
have in common?
What do we both
want?
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Negotiation Skills
How people make decisions
logic
emotion
justify
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decide
Negotiation Skills
Building a Relationship
 RELATIONSHIP means TRUST
 TRUST means INFORMATION
TRUST
=
competence
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+
like
Negotiation Skills
Logic
10
Introvert
10
Driver
Analytical
0
Amiable
Expressive
Extrovert
10
10
Emotion
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Negotiation Skills
characteristics
•Clear
•Objective
•Detached
•Showing no bias
•Still
•Tranquil
•Calming
•Soothing
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•Bold
•Assertive
•Affirmative
•Determined
•Cheerful
•Spirited
•Buoyant
•Uplifting
Negotiation Skills
we can be seen as
•Stuffy
•Indecisive
•Suspicious
•Cold
•Reserved
•Docile
•Bland
•Plodding
•Reliant
•Stubborn
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•Aggressive
•Controlling
•Driving
•Overbearing
•Intolerant
•Excitable
•Frantic
•Indiscreet
•Hasty
•Flamboyant
Negotiation Skills
personality dress code
•Conservative
•Dark suits
•3 piece
•Traditional
•Relaxed
•Jumpers
•Tweed
•Casual
•Earth colours
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•Power dressing
•Suits
•Well pressed
•To impress
•Designer
•Statement
•Trendy
•Louder
•Brighter colours
•Different
Negotiation Skills
the environment we create
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•Very tidy
•Spreadsheets
•Gant Charts
•Technical photos
•No clutter
•Look tidy
•Impressions
•Power desk
•Certificates
•Equipment
•Famous photos
•Plants
•Sofas
•Charity info
•Coffee machine
•Organised chaos
•Disorganised
•Art
•Gizmos
•Friends / family
•Inspiring quotes
Negotiation Skills
dealing with Blues-Analytical
 Be punctual
 Plenty of facts and figures
 Lots of data and research
 Product information
 Statistics
 Leave information with them
 Confirm bookings in writing
 Know your competition
 No social chit chat
 Good customer care
 Find out about their business
 No gimmicks
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Negotiation Skills
dealing with Reds-Driver
 Prepare well
 Direct questions
 Be punctual
 Plenty of product knowledge
 Examples
 Be professional
 No social chit chat
 Not too many facts and figures
 May it easy for them by offering service
 Give “whats in it for them”
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Negotiation Skills
dealing with Greens-Amiable
 No jargon
 No pressure, empathise
 Be on time
 No direct questions
 More casual approach
 Testimonials
 Not too much data
 Seek out opinions
 Be friendly and sincere
 Listen
 Give them time
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Negotiation Skills
dealing with Yellows-Expressive
 Enthusiasm
 Visuals
 Be creative
 Seek out their opinions
 Give them more than one option
 Friendly
 Plenty of social chit chat
 Let them talk
 Use humour
 Not too many facts and figures
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Negotiation Skills
Get them to talk
 “What is your view of the situation?”
 “What are the most important points for you?”
 “What is your ideal solution?”
 “Why is that important for you?”
 “How can I help in the short, medium and long terms?”
 “Can you prioritise?”
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Negotiation Skills
Managing First Impressions
1.
Initial thoughts
1.
30 seconds?
2 Minutes?
20 Minutes?
2.
3.
2.
3.
4.
Timing – pausing / filling gaps / rhythm
Avoid vacuity – go beyond small talk
Get them to talk…they’ll like you more
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Tone / Visual /
Words
59%
38%
7%
Negotiation Skills
Preparing our approach
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Negotiation Skills
Prepare your case
Facts & examples
What are their main worries?
Options
Preventative actions to stop it
going wrong
 Something for them
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Negotiation Skills
Negotiating
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Negotiation Skills
Preparation
Objectives
Context
Power
Arguments
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Method
Negotiation Skills
Context
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What is the past?
What is the future?
Who are the key
players?
What else are they
negotiating?
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Power
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Arguments
What is my carrot? 
What is my stick?

What is my
banana?

What are the main
benefits I am offering?
What are the
unexpected extras I am
offering?
How am I reducing the
risk to enable an easy
decision?
Negotiation Skills
Method
Hold back from saying what you really
want to say… your objective early on is to
get permission to say what you really want
Don’t jump
in feet first
logic
POSITION
WHAT they
want
emotion
INTEREST
WHY they
want it
Target the other side’s underlying interests
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Negotiation Skills
Preparing for Negotiation
1.
DEFINE OUTCOME
What will success
do for us?
2.
BACKGROUND
History, personalities, relevant
info.
3.
SPECIFY OBJECTIVES
Ideal, Realistic, Fallback
BANANA
4.
ASSESS THE POWER
What is important to them?
What is important to us?
5.
DECIDE STRATEGY
How to build relationship?
Tactics Agenda
6.
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PLAN ARGUMENTS
What are your strengths
and weaknesses?
Negotiation Skills
REMEMBER!
 Keep the gaps
between your
positions fairly
equal.
 Be prepared to
justify all three
positions.
 Don’t be surprised
at the gap
between their
opening position
and yours.
Planning
!
IDEAL
=
REALISTIC
REALISTIC
=
FALLBACK
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IDEAL
FALLBACK
Negotiation Skills
When to Walk Away
Typical BANANAS:

Someone else you can do a deal with

Option to do without the item being
negotiated
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Ability to defer the deal to a later date
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Alternative solution
The Best AlterNative to A Negotiated Agreement
ALWAYS KEEP A BANANA IN YOUR POCKET!
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Negotiation Skills
Phases in Negotiations
Opening
Signals
Package
Bargain
Agree
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Negotiation Skills
Creating Movement
Signals
Amended
Proposals
Packaging
Bargaining
Closing
Contracting
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Negotiation Skills
Creating Movement
Positions
Interests
Shared
Interests
Needs
Shared
Needs
The P-I-N Triangle
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Negotiation Skills
Working Towards Agreement
Important to us
Important to both of us
■ Start with the
Lubricators
THEIR LEVERS
DIFFICULT ISSUES
■ Deal with the
Difficult Issues
LUBRICATORS
Less important to us and them
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OUR LEVERS
Important to them
■ Don’t sign off the
Lubricators until
you have dealt
with the Difficult
Issues
Negotiation Skills
Building Rapport
You want this person on your
side of the bridge.
Do you:
 Throw a lasso over and pull
them
 Call them over to your side
 Meet them halfway across
OR WHAT?
Draw yourself standing where
you feel you should.
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Negotiation Skills
Rapport Breakers
 Talking more than listening
 Formal-speak
 Parental language
 Using “irritators”
 Doing their thinking for them
 Arguing
 Being dogmatic
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Negotiation Skills
The Hidden Language of Signals
We would find it extremely
difficult to meet that deadline.
-
Not impossible.
I am not empowered to
negotiate on that.
-
See my boss.
We never negotiate on price.
-
We do negotiate what you get for the
price.
-
We do negotiate everything else.
We’re not prepared to discuss
that at this stage.
-
We can discuss it tomorrow.
I doubt I could get agreement on
that.
-
You need to help me to make a case
for it.
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Negotiation Skills
Signals
 Listen out for underlying interests that you can
use later as leverage
 Never accept a refusal or blockage, test it as a
signal
 Listen for easy quick hit successes, longer haul
topics and no-gos
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Negotiation Skills
Sample Signals
• “We never admit liability”
• “We could not produce that quantity in that time”
• “It is not our policy to discuss discounts, and even if we did they
certainly would not be 10%”
• “Our price for that quantity is £x”
• We are not prepared to discuss that at this stage”
• “These are our standard terms and conditions”
• “We would find it extremely difficult to meet that deadline”
• “Our production line is not set up to meet with that requirement”
• “I am not empowered to negotiate this price”
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Negotiation Skills
Package




www.goodfoot.co.uk
link
apparent concessions
Underlying Interest
Low Risk decisions
Negotiation Skills
Bargain
 only Bargain near the end
 show a willingness to move
 “If ..”
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Negotiation Skills
Push or pull?
KUNG FU
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You are wrong because …
I disagree because …
You need to re-think …
You don’t understand the
situation …
No, that’s not right …
You shouldn’t take that approach
You haven’t considered …
It won’t work because
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JU JITSU
 We are saying almost the same
thing …
 You are right to point that out,
which is why I …
 Is your approach achievable
within the cost/time constraints?
 I think you are clarifying this for
me. What if …
 I understand and you are right.
But what else can we do?
 I like that. How about we
incorporate that idea.
Negotiation Skills
Awkward People
If People
You Then
go quiet on you
ask questions. if they refuse to answer, ask them
WHEN and HOW an answer will be available
make demands
listen, slow down, state that you want to achieve their
demands and that to do that you need to ask some
questions first
are over friendly and
complimentary
smile, be friendly, and return to the business agenda
unpredictable, changing the
subject or changing mood
say you are unsure of how to proceed because you
are getting different signals
impatient and want a quick
decision
say you can give them a quick decision which will
partly solve the problem but you’d rather give them a
decision that will fully solve the problem
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Negotiation Skills
Tips for Breaking Deadlock
 don’t argue or defend
 probe on the underlying issues
 keep stating that you are willing to work out an
agreement
 change location, people, subject
 try incentives
 know your walk away point and call the bluff
 backtrack and review
 push for what you can agree on
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Negotiation Skills
Handling Objections
•
•
•
•
•
empathy
(rephrase)
decide when
general now, detail later
back to agenda
•
•
•
•
generalised statement
options
recommendation
next steps
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• specifically you seem
• worried about...
• if I.... could you.... ?
•
•
•
•
underlying concern
agree
recommendation
next steps
Negotiation Skills
How to say NO
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I understand (pause, not BUT)
currently (state facts)
therefore (difficult / impossible)
I suggest (give 2/3 options)
your choice?
Negotiation Skills
Being Tough, Nicely
“I understand
In order to achieve that I
need…
How can you help?”
“Currently the situation is …
Therefore it is impossible for
me to …
What I can do is …”
“What you are asking for
requires a re-assessment of our
whole position.
To move forwards I suggest …”
“I want to be direct and honest
with you about what we can
and cannot achieve.
We cannot achieve X, we can
however achieve Y”
“I am prepared to negotiate
further and move my position.
However, I require movement
from you in return.”
“That’s as far as I am willing to
go at the moment. I can get
back to you with further ideas,
or we can perhaps discuss
another issue.”
“I can certainly commit to
these broad aims, with respect
to detail we need to construct a
timetable for discussion.”
“I am prepared to consider
your requests though I think
achieving all of them will not be
possible. Can you prioritise this
list for me please?”
“I believe we can reach an
agreement but we will both
have to accept that we have to
move our position. To get an
agreement I am prepared to
move, how far are you
prepared to move?”
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Negotiation Skills
Some golden rules
1.
Uncover real reasons
underneath (why why)
6.
Collect all requirements before
arguing or replying
2.
Ask for things you know they
will refuse then ask for
something you really want
7.
Ask for something more than once
8.
Disclose more information to get the
moral high ground
3.
Smile even when you say no
9.
4.
Get agreement in principle
Be happy with compromise, let them
feel they have made you move
5.
Listen for BASIS of argument
and use it back
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10. Trade offs (if I ... will you ...)
Negotiation Skills
Negotiating Bad News
current situation
facts, numbers
downside
impact on them
remedy
simple
benefits
to them
next steps
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immediate
Negotiation Skills
Handling Pressure
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
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stay with logic
go back to agenda
identify what can agree on
suggest steps for resolving disagreements
seek agreements in principle
if attacked personally then address their
criticism as another issue for discussion
Negotiation Skills
Handling Pressure
If They
Then You Say
criticise your suggestion
what do you suggest?
change the subject
do you agree on the issue that needs solving?
criticise you personally
we can either solve this issue or discuss my
performance, what do you want to discuss?
say they are not
convinced
what do I need to do to convince you of my
solution?
say they need you to do
xxx
if I do xxx will you back my suggestions?
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don’t argue,
ask a question !!
Negotiation Skills
CLP Negotiation Skills
Thank You
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Negotiation Skills
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