Negotiating Skills to
Reach a Deal
April / May 2012
Introduction to Negotiation
Introduction to Negotiation
• How would you define negotiation?
• What other words do you associate with
negotiation?
• Terminology used in negotiations
Individual Exercise
What scenario do you want to focus on?
Who is involved?
Individual Exercise
Describe the current situation?
What are you willing to give in order to get?
Individual Exercise
Issues
Outcomes
Realistic
Acceptable
Worst possible
Interpersonal Skills
Interpersonal Skills
Interpersonal skills require that we
are aware of our behaviour and of
our counterparts in the
negotiations.
The four basic styles of behaviour
gives an indication of how people
react and respond to situations
Interpersonal Skills
No one style is superior to the
other style, and no one person can
be all four styles.
To improve your negotiation, know
who and how to deal with the
various people, and who you are.
Interpersonal Styles
Driver
(Action)
Analytical
(Process)
Expressive
(Idea)
Amiable
(People)
Interpersonal Skills
• Avoider: dislikes conflict
• 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
Interpersonal Skills
• You are one of ten people at a conference
table, each person sitting across from one
another
• Someone comes in the room and says “I will
give R1,000 to the first person who can
persuade the person sitting across from them
to come and stand behind his/her chair.”
Interpersonal Skills
Results
• Avoider: says I don’t want to play, look foolish
• Compromiser: both offering R500, starts running to
other side
• Accommodator: runs to other side, negotiates later
• Competitor: sits tight, demands other person move
• Problem-Solver: “let’s both get behind each others
chairs, we can each make R1,000.”
What Makes a Good Negotiator?
Group Activity
You have 10 minutes within your small
group of three to brainstorm a list of the
10 key skills that successful negotiators
need.
List your key skills and note the reason
why each of your ten skills is crucial to
you as a negotiator.
Group Activity
Key Skills
Reasons
1
1
2
2
3
3
4
4
5
5
Negotiator’s Ratings
Planning
skills
Thinking
Under
Stress
Integrity
Verbal
clarity
General
Practical
Sense
Negotiator’s Ratings
Ability to
gain
respect
Ability to
exploit
power
Team
Leadersh
ip skills
Tact
Open
mind
Negotiator’s Ratings
Professional standards
Product Knowledge
Self Confidence
Persistence
Insight
Individual Exercise
List all your personal strengths as a
negotiator?
List your personal areas for
development?
How good a negotiator are you? (p21)
Results
20 - 40 - You are not a successful negotiator
40 - 60 - You have some ability in negotiation
60 - 80 - You are a good negotiator
80 - 100 - You are an excellent negotiator
Body Language
Body Language
Body Language
Body Language
Body Language
Steps of Negotiation
Planning
• Negotiators with high aspirations consistently
outperform those with low aspirations.
• By adopting a high aspiration base,
negotiators create sufficient room to make
and request the necessary concessions.
• High aspirations generate positive
psychological energy and prevent a
negotiator from being rigid and defensive.
Planning
• A high aspiration communicates confidence
to the other party and generally prevents
irrational negotiation behaviour.
• High aspirations require the other negotiating
party to expend more energy in trying to
lower these aspirations, thus not focusing on
promoting its own aspiration.
Planning
What is the
reason?
What are
the topics
to be
discussed?
What is my
perception
of the
issues?
That of the
opposer?
What
resources
can I draw
on?
Planning
What do I
know about
my opposer?
What do I
know about
the person
he
represents?
What are the
negotiating
style of the
other party?
What are my
interests?
Planning
What are
the
interests of
the other
side?
What are
our
common
interests?
What are
the
opposing
interests?
What
standards
to use to
resolve
conflicting
ideas?
Planning
Low vs
High
Why is the
other side
talking to
me?
Why do
they need
something
from me?
What
prevents
them from
doing it
another
way?
Setting Goals and Objectives
S
• Specific
M
• Measurable
A
• Achievable
C
• Challenging
C
• Compatible
Opening Position
Opening Position
Outline Your
Opening
Position
Decide on
Low Ball
Decide on
High Ball
Opening Position
This Position
is Realistic
Confirm all
Agreements
Perception
of Power
Opening Position - Agenda
Number
Issue
Sequence
Priority
Priority
Negotiator
Opposer
Bargaining
Bargaining
Define your range
Start
Target
Walkaway
BATNA: your alternatives
Agreement and Close
• Put pen to paper and agree on the way
forward
Questioning Techniques
• An OPEN question is one that
encourages a full response
• A CLOSED question is one that can be
answered with a short answer
Questioning Techniques
Practical
Session
Ethical Negotiation
• INDIVIDUAL EXERCISE - A question of
ETHICS
• Decide whether or not the approach
would be appropriate p42 - (the deal is
important to you)
Influencing Techniques
Practical Role Play
Pg
45
The
Ugli
Orange
Tactics
•
•
•
•
•
Competitive Tactics
Avoidance Tactics
Compromising Tactics
Collaborative Tactics
Accommodating Tactics
Tactics
Negotiation Gambit
Good Cop/Bad Cop
Cherry Picking
Walking Away
Split the Difference
Flinch
Description
How to Overcome it
Closing Techniques
•
•
•
•
•
Concession close
Summary close
Adjournment close
“Or Else” close
Either or close