Pittsburgh, PA 15213-3890
NEGOTIATION SEMINAR
Sally Cunningham
March 10, 2010
© 2009 by Carnegie Mellon University
Negotiation Seminar - page 1
TODAY’S TOPICS
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8-STEP APPROACH FOR COMPLEX
NEGOTIATIONS
-
SIMPLE APPROACH FOR ONE-TIME SHORT
TERM NEGOTIATIONS
-
INTERPRETING AND USING BODY LANGUAGE
DURING NEGOTIATIONS
-
ESSENTIAL QUALITIES OF EFFECTIVE
NEGOTIATORS
© 2009 by Carnegie Mellon University
Negotiation Seminar - page 2
8 STEP APPROACH FOR COMPLEX
NEGOTIATIONS
1.
2.
3.
4.
5.
6.
7.
8.
PREPARE
ARGUE
SIGNAL
PROPOSE
PACKAGE
BARGAIN
CLOSE
AGREE
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Negotiation Seminar - page 3
1. PREPARE
A. ESTABLISH OBJECTIVES
- MINIMUM (MUST)
- TARGET (INTEND)
- MAXIMUM (LIKE)
B. GATHER INFO ABOUT OTHER PARTY
C. FACT V. JUDGMENT
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Negotiation Seminar - page 4
2. ARGUE
A. DON’T INTERRUPT OTHER SIDE – LISTEN
B. DON’T TRY TO SCORE POINTS
C. USE A CONSTRUCTIVE RESPONSE
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Negotiation Seminar - page 5
3. SIGNAL
A. WATCH FOR CLUES, E.G., MUST, LIKE, ETC.
B. LISTEN MORE THAN TALK
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Negotiation Seminar - page 6
4. PROPOSE
A. PROPOSE INSTEAD OF ARGUING
B. BEGINNING – USE TENTATIVE NONCOMMITTAL PROPOSALS
C. USE ADJOURNMENTS TO CONSIDER
PROPOSALS
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Negotiation Seminar - page 7
5. PACKAGE
THINK CREATIVELY; TRADE-OFF
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Negotiation Seminar - page 8
6. BARGAIN
A. USE IF-THEN WORDS
B. MAKE EVERYTHING CONDITIONAL
C. LINK ISSUES TO PREVENT PIECEMEAL
PICKING OFF
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Negotiation Seminar - page 9
7. CLOSE
A. TIMING – NOT TOO EARLY
B. MEET OPPONENTS NEEDS
C. USUALLY CONCESSION CLOSE
D. ALWAYS LEAVE A LITTLE MORE ROOM
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Negotiation Seminar - page 10
8. AGREE
A. SUMMARIZE
B. NO MISUNDERSTANDINGS
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Negotiation Seminar - page 11
SIMPLE APPROACH FOR ONE TIME
SHORT NEGOTIATIONS
A DIAGNOSTIC CHECKLIST
7 AREAS
1. ALTERNATIVES
•
•
•
WHAT IS OUR BATNA?
CAN WE IMPROVE IT?
CAN WE LEGITIMATELY WORSEN OPPOSITIONS?
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Negotiation Seminar - page 12
DIAGNOSTIC CHECKLIST (Continued)
2. INTERESTS
•
•
•
OURS? THEIRS?
WHAT IS THEIR CURRENT PERCEIVED CHOICE?
ARE WE GIVING THEM A PROBLEM OR AN
ANSWER?
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Negotiation Seminar - page 13
DIAGNOSTIC CHECKLIST (Continued)
3. OPTIONS
•
•
•
CAN WE INVENT MORE POSSIBLE AGREEMENTS?
GOOD FOR BOTH?
CAN WE CHANGE THEIR CHOICE?
4. LEGITIMACY
•
•
ARE WE USING OBJECTIVE CRITERIA?
WILL THE CRITERIA APPEAL TO THE OTHER
SIDE?
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Negotiation Seminar - page 14
DIAGNOSTIC CHECKLIST (Continued)
5. COMMUNICATION
•
•
•
ARE WE LISTENING?
OPEN TO PERSUASION?
DO THEY KNOW IT?
6. RELATIONSHIP
•
•
•
CAN WE IMPROVE THE INTERACTION?
MORE CONCERNED/SOFT ON THE PEOPLE?
MORE RIGOROUS/HARDER ON THE PROBLEM?
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Negotiation Seminar - page 15
DIAGNOSTIC CHECKLIST (Continued)
7. COMMITMENTS
•
•
•
WHAT REALISTIC COMMITMENTS COME NEXT?
ARE THEY “YES-ABLE”?
ARE THEY COMPLIANCE PRONE?
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Negotiation Seminar - page 16
NEGOTIATION – A GOOD OUTCOME
1. IS IT BETTER THAN OUR BATNA? (BEST
ALTERNATIVE TO A NEGOTIATED
AGREEMENT)
2. DOES IT SATISFY OUR INTERESTS AS WELL AS
THEIRS?
3. IS IT A NO-WASTE SOLUTION; BEST OF MANY
OPTIONS?
4. IS IT LEGITIMATE FOR ALL? NO ONE IS SEVERLY
DISADVANTAGED
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Negotiation Seminar - page 17
INTERPRETING AND USING
BODY LANGUAGE
• BUILDING A UNITED TEAM
• SIGNS THAT THERE ARE PROBLEMS
• SIGNS THAT NEGOTIATIONS ARE GOING WELL
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Negotiation Seminar - page 18
BUILDING A UNITED TEAM
•
•
•
•
•
•
•
•
DEMOCRATIC SEATING
EQUAL EYE CONTACT WITH ENTIRE TEAM
SMILES
NO SMIRKS OR PRIVATE GLANCES TO
INDIVIDUALS
ALLOW APPROPRIATE TURN TAKING
DIRECT BODY ORIENTATION TO SPEAKING TEAM
MEMBERS
ENERGETIC VOCAL TONE
SMALL BUT VIGOROUS GESTURES
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Negotiation Seminar - page 19
SIGNS THERE ARE PROBLEMS
•
•
•
•
•
•
•
•
•
•
CLOSED POSTURE
CROSSED ARMS
LOOK OF INDIFFERENCE
BODY ANGLED AWAY
SUBTLE HEAD SHAKES
TILTED HEAD AND SQUINTY EYES
COVERING MOUTH WITH THE HAND
HAND ON CHEST OR NECK
DARTING EYES
FLUSHED SKIN
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Negotiation Seminar - page 20
SIGNS THINGS ARE GOING
WELL
•
•
•
•
•
•
•
•
CHANGE IN OVERALL BODY LANGUAGE
SMILES
ENHANCED EYE CONTACT
NODDING
OPEN PALMS
FORWARD LEAN
DIRECT BODY ORIENTATION
EYE TWINKKE
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Negotiation Seminar - page 21
ESSENTIAL QUALITIES OF
EFFECTIVE NEGOTIATORS
• CONTRACT AND FINANCIAL SKILLS
•PRODUCT AND SERVICES KNOWLEDGE
•ABILITY TO NEGOTIATE WITH OWN PEOPLE
•ABILITY TO DEAL WITH AMBIGUITY
• WILLINGNESS TO LISTEN
• WILLINGNESS TO USE EXPERT TEAM MEMBERS
• PLANNING ABILITY
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Negotiation Seminar - page 22
ESSENTIAL QUALITIES
(Continued)
• INTEGRITY
• VERBAL COMMUNICATION SKILLS
• NON-VERBAL AWARENESS
•FLEXIBILITY AND CREATIVITY
•PROFESSIONAL DEMEANOR
•LEADERSHIP SKILLS
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Negotiation Seminar - page 23