Negotiation Skills
Mahesh Sharma, MPA, ICMA-CM, MASCE
City Administrator
City of Raytown
Learning Objectives
 Understand the purpose and importance of negotiation
 What are the different phases of negotiations
 Specific skills and techniques of negotiating
 Create mutually beneficial outcomes
 Develop and improve your negotiation skills
What is negotiation?
Negotiation is back and forth communication
designed to reach agreement
while leaving the other side intact and positive
Negotiating
 Use Creativity
 Persuasive communication or bargaining.
“Negotiation about getting the
best possible deal in the
best possible way.”
You negotiate everyday
Negotiations
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Discipline
Process
Relentlessness
Consistency
Practice
Routine
It is NOT an in-born talent
Bargaining
“I want the fruit!”
“I want the peel!”
Benefits of Good Negotiation
 Career success
 Efficiency
 Achieving your goals
 Help you make deals
 Solve problems
 Manage conflicts
 Working relationship
 Preserve relationships
Interpersonal Skills
 Avoider: dislikes conflicts
 Compromiser: fair-minded people interested in
maintaining relationships
 Accommodator: resolve interpersonal conflicts by
resolving the other person’s problem
 Competitor: winning is the main thing
 Problem-Solver: seeks to find the underlying
problem, use brainstorming to solve
Qualities of a Skilled Negotiator
 Knows how to build relationships
 Can identify people’s needs effectively
 Is able to recognize shared interests
 Both sides can claim victory
 Learn from each experience
Top 10 Needs For Negotiations
1. Prepare rigorously.
2. Build trust and rapport.
3. Exchange information &
listen.
4. Identify things of unequal
value & trade them.
5. Grow the pie before
dividing it.
6. Claim the slice you
deserve.
7. Know thyself.
8. Understand power and
when to use it.
9. Coalitions.
10. Don’t be evil.
Prepare Rigorously
Preparation Checklist
 Research the people and situation.
 Build relationships with the other side.
 Know your priorities & how much you value each.
 Build a decision tree.
 Role play the debate.
 Write a script for tough situations.
 Draft, Devil’s Advocate, Deliver (3 D’s).
 Know your BATNA –
Best Alternative To A Negotiated Deal and goal.
Build Trust and Rapport
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People need to like you.
Ways to communicate.
Preserve relationships.
Quick wins.
Frame the negotiation as a
team problem-solving
exercise.
Deals happen because of people
Exchange Information & Listen
Identify things of
unequal value & trade them
 Find out what they want.
 Try to give it to them in exchange for what you want.
 Ask open-ended questions to get good information.
 Connect what you hear to what you know.
 Never assume! Follow up to test your understanding.
 Don’t be afraid to talk about what’s most important to you.
 If you are unclear, ask or involve an expert.
Grow the pie before you cut it
The Pie = The benefit you both get by working
together beyond what you both could’ve gotten by
working alone.
Claim what you deserve!
 Aim for the high side of
reasonable.
 Don’t be afraid to ask.
 Unreasonable offers can create
ill-will.
 Know when not to ask or when
to stop.
 Leave room
 In multi-party negotiations,
timing is key
Know Thyself
What are my
strengths?
What are my
Weaknesses?
Understand sources of power
& know when to use it
In negotiations,
power is how
much value you
bring to the
other party
relative to how
much value they
bring to you
Coalitions
 Form
 Anticipate
Don’t Deceive
 Everyone has different values.
 Some negotiators will be more ethical than others.
 Take the high road by taking the high road.
Factors for success
 Legitimacy of your case
 Confidence in presenting it
 Courtesy to the other party
 Adaptation to the other party’s style
 Rapport
 Incentives and trade offs
 Research the bigger picture
Why Negotiation Fails?
 Not preparing enough.
 Fixating on price not on deal.
 Trying only to find common ground.
 Negotiating one issue at a time.
 Try to answer every question.
 Anchoring yourself with a low offer.
 Not willing to walk away at your BATNA.
 Saying yes too quickly.
 Letting emotion take over.
 Not knowing when to stop asking.
Summary
• Negotiation is a way to settle difference while maintaining
and improving relationships
• Good negotiation skills are important to your career success
• The ultimate goal of any negotiation is to reach an
agreement that benefits both parties
• When you negotiate, remember to separate people from
problems and focus on interests, not positions
• To become a better negotiator, think about your successes
and failures, and learn from your mistakes
GO FORTH AND NEGOTIATE
The greatest failure in
negotiation is failing
to negotiate
“THANK YOU”