Negotiating skills for
financial planners
Peter Belsey,
Business Director Financial Services
Agenda
Understanding the other side
Thinking through the strategy
Annihilation or win:win?
Body language and approach
Huthwaite’s research into negotiation
Skilled negotiators Versus Average negotiators
Judges effective by
Experienced
both slides
Track record
success
Low implementation
failure
Moderate track
record
Quiz: Question One
True or False
Skilled negotiators spend more time (than
average negotiators) preparing the negotiation,
by gathering more information and setting their
objectives, priorities and limits
Quiz: Question Two
True or False
It is important to present as many reasons as
possible to support each of your proposals
Quiz: Question Three
True or False
The key to persuading someone is to present
your argument logically
Quiz: Question Four
True or False
Win-Win negotiating involves both parties stating
their ideal outcomes and then splitting the
difference
Negotiation – a complex skill set
POWER
Preparation &
planning
Effective
Negotiation
Face-to-face
skills
Strategies &
tactics
Do you have opportunities
to negotiate already?
With clients, when you’re advising/selling?
When you’re buying, e.g. to outsource services?
Will you have more negotiation opportunities in
future?
What makes these negotiations difficult?
What is negotiation?
When:
 you can vary the terms
 the resource is scarce
 agreement and conflict both exist
ME
YOU
No common ground – so
nothing to gain from
negotiation
ME
YOU
Negotiation
ME &
YOU
In total
agreement
– so why
negotiate?
What is the difference between
persuasion and negotiation?
Persuasion = unilateral moves towards accepting your position
ME
YOU
Capitulation = unilateral moves towards accepting their position
ME
YOU
What is the difference between
persuasion and negotiation?
Negotiation = a bilateral process, you and they make moves
towards each others’ positions
ME
ME
YOU
YOU
Why is the difference important?
Persuasion is successful when the other party says:
“I would like to do a deal with you if ...”
Average persuaders give things away to achieve this
position – skilled persuaders don’t
Effective negotiation involves movement by both parties, a
creative agreement and a perception of Win-Win
The golden rule of negotiation
Persuade first and only negotiate later...
... if you have to
So, do you have opportunities to
negotiate or persuade?
With clients, when you’re advising/selling, may
you give things away too soon?
When you’re buying, e.g. to outsource services,
may they give things away too soon?
Preparing and planning to negotiate
Prepare and plan with
great care, including
identifying ‘negotiable
issues’
Identify and use your
‘levers’
‘Trade concessions’ –
don't give them away
Preparing and planning to negotiate
Negotiable issues:
a) With clients
b) With outsourced suppliers
What issues do you have?
What issues may they have?
Are there enough issues to negotiate with?
 Any others you can introduce, that may be negotiable?
 If no, plan to persuade; if yes, plan to negotiate.
Identify levers
High
Their levers
Difficult
Issues
Lubricators
Your levers
Importance
to us
Low
Low
Importance
to them
Importance to them
High
Identifying your and their levers
a) With clients
b) With outsourced suppliers
What are your levers?
What are their levers?
Likely difficult issues? Any lubricators?
May you need to instigate the client negotiation?
‘I could re-consider my fee if you can offer me
more of your portfolio and/or commit longer.’
A principle for persuasion
Being right
is not
persuasive
“I owe my success to
having listened respectfully
to the very best advice, and
then going away and doing
the exact opposite.”
G.K Chesterton
Traps in persuasion
What I Want
Logical Arguments
More Logical Arguments
Irritators
Logic
is not
persuasive
Another trap: argument dilution
Your chain is as strong ...
... as your weakest link
Planning for effective persuasion
Note your key arguments
on each issue
Concluding a new deal
with a client
Persuading outsourced
suppliers
 1 or 2 good reasons per issue
 A good reason = will help them
meet their needs
 Check you’ve covered all their
concerns
 Summarise the Benefits
 Propose an appropriate fee
structure for the client
 Create doubt and movement about
their position
 Expose argument dilution
– seek more reasons?
Ten steps for effective negotiation
1.
2.
3.
4.
5.
Persuade 1st and only negotiate later…if you have to
Logic is not persuasive!
Beware argument dilution
Effective persuasion leads to ‘I’d like to deal with you if…’
Average persuaders give things away to achieve this
Ten steps for effective negotiation
6. Identify and use your levers
7. You may need to instigate the negotiating
8. Trade concessions, don’t give them away
9. Remember Win-Win is not 50:50
10.Never, ever forget that ‘no deal’ is better than a bad deal
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Peter Belsey
@PeterBelsey
Tel:
+44 (0) 01709 52 1210
Email: pbelsey@huthwaite.co.uk
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