What is Negotiation?
Features of Negotiation
Why Negotiate ?
Types of Negotiation
Distributive Vs Integrative Negotiation
Negotiation Process
BATNA
Bargaining Zone Model of Negotiation
Negotiating Behavior
Issues in Negotiation
Third party Negotiations
How to achieve an Effective Negotiation
Negotiation Tips
2. Contents
• What is Negotiation?
• Features of Negotiation
• Why Negotiate ?
• Types of Negotiation
• Distributive Vs Integrative Negotiation
• Negotiation Process
Negotiation skills - Gihan
Aboueleish
• BATNA
• Bargaining Zone Model of Negotiation
• Negotiating Behavior
• Issues in Negotiation
• Third party Negotiations
• How to achieve an Effective Negotiation
• Negotiation Tips
3. “Change the
way you look at
things, and the
things you
look at
Negotiation skills - Gihan
Aboueleish
change ”
4. You can’t sail anywhere until you learn which way the wind wants to blow
Negotiation skills - Gihan
Aboueleish
5. What Is Negotiation ?
• The word "negotiation" originated from the Latin expression,
"negotiatus", which means "to carry on business".
• The process of conferring to arrive at an agreement between different
parties, each with their own interests and preferences.
Negotiation skills - Gihan
Aboueleish
• “A give-and-take decision-making process
involving interdependent parties with
different preferences.”
6. Defined :
Negotiating is the process of communicating back and forth,
for the purpose of reaching a joint agreement about differing
needs or ideas.
It is a collection of behaviours that involves communication,
sales, marketing, psychology, sociology, assertiveness and
conflict resolution.
Negotiation skills - Gihan
Aboueleish
A negotiator may be a buyer or seller, a customer or supplier,
a boss or employee, a business partner, a diplomat or a civil
servant. On a more personal level negotiation takes place
between spouse’s friends, parents or children.
7. Features Of Negotiation
• Minimum two parties
• Predetermined goals
• Expecting an outcome
• Resolution and Consensus
Negotiation skills - Gihan
Aboueleish
• Parties willing to modify their positions
• Parties should understand the purpose of negotiation
8. Why Do We Negotiate ?
• To reach an agreement
• To beat the opposition
• To compromise
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Aboueleish
• To settle an argument
• To make a point
10. Distributive Negotiation
Parties compete over the distribution of a fixed sum of value.
The key question in a distributed negotiation is, “Who will
claim the most value?” A gain by one side is made at the
expanse of other.
Negotiation skills - Gihan
Aboueleish
The Seller’s goal is to negotiate as high a price as possible; the
Buyer’s goal is to negotiate as low a price as possible.
Thus, the deal is confined: there are not much opportunities
for creativity or for enlarging the scope of the negotiation.
11. Integrative Negotiation
In Integrative Negotiation, parties cooperate to achieve maximize
benefits by integrating their interests into an agreement. This is
also known as a win-win negotiation.
• The key questions is: “How can the resource best be utilized?”
Integrative negotiations tend to occur in following situations:
Negotiation skills - Gihan
Aboueleish
• Structuring of complex long-term Strategic Relationships or
other collaborations.
• When the deal involves many financial and non-financial
terms.
In an integrative negotiation,, there are many items and issues to
be negotiated, and the goal of each side is to “create” as much
value as possible for itself and the other side.
12. Distributive Versus Integrative
Negotiations
Characteristic Distributive Integrative
Outcome Win-lose Win-win
Motivation Individual gain Joint and individual gain
Different but not always
Negotiation skills - Gihan
Aboueleish
Interests Opposed
Opposite
Relationship Short-term Longer or Short-term
Issues involved Single Multiple
Ability to make
Not Flexible Flexible
trade-offs
Solution Not creative Creative
13. Negotiation Process
PREPARATION
INFORMATION SHARING
Negotiation skills - Gihan
Aboueleish
BARGAINING
FINALIZING THE DEAL
14. BATNA
BATNA is ;
Best
Alternative
To
Negotiation skills - Gihan
Aboueleish
Negotiated
Agreement
15. Why BATNAS Matter
• BATNAs tell you when to accept and when to reject an
agreement
• When a proposal is better than your BATNA:
Negotiation skills - Gihan
Aboueleish
ACCEPT IT
• When a proposal is worse than your BATNA:
REJECT IT
16. Negotiation: A Counter-intuitive Process
Title comes from remarks made by participants at some of
my negotiation workshops
“that’s the opposite of what I do”
“I know I should do that, but I find myself doing exactly the
opposite”
“Its counter-intuitive”
Negotiation skills - Gihan
Aboueleish
What are people saying ?
• They recognize the prudence of a particular strategy
• But they find it difficult to implement it
• Their natural inclination is to do the opposite of what
they recognise is the prudent strategy
17. Intuitive – Counter-intuitive
What are
some of the intuitive things we do in a negotiation
the counter-intuitive thing we might consider as an alternative ?
Automatic gear Shift into manual
Focus on Positions Focus on interests
Dive into the negotiation Defer the negotiation to a time of our own
choosing, gather information first
When our proposals are rejected, Ask why our proposal doesn’t work, and
justify and defend them gather information
When a proposal is made to us Instead of rejecting, ask why their proposal
that is unacceptable, rejection is important, and gather information
17
18. Basic Principles Common To All Forms Of
Negotiation
There are minimum 2 parties involved in the
negotiation process. There exists some common
interest, either in the subject matter of the
negotiation or in the negotiating context, that
Negotiation skills - Gihan
Aboueleish
puts or keeps the parties in contact.
Though the parties have the same degree of
interest, they initially start with different
opinions and objectives which hinders the
outcome in general.
19. In the beginning, parties consider that
negotiation is a better way of trying to solve
their differences.
Negotiation skills - Gihan
Aboueleish
Each party is under an impression that there is
a possibility of persuading the other party to
modify their original position, as initially parties
feel that they shall maintain their opening
position and persuade the other to change.
20. During the process, the ideal outcome proves
unattainable but parties retain their hope of an
acceptable final agreement.
Each party has some influence or power – real or
Negotiation skills - Gihan
Aboueleish
assumed – over the other’s ability to act.
The process of negotiation is that of interaction
between people – usually this is direct and verbal
interchange.
21. Characteristics Of An Effective Negotiator
He should be a good learner and observer.
Should know the body language of the people
at the negotiation process.
Should be open and flexible and yet firm.
Negotiation skills - Gihan
Aboueleish
Exercise great patience, coolness and maturity.
Should possess leadership qualities.
22. • Should control emotions and not
show his weaknesses.
• Should bargain from the position of strength.
• Should know and anticipate the pros and cons
of his each move and its repercussions.
Negotiation skills - Gihan
Aboueleish
• Should know how to create the momentum for
the negotiations and must know when to exit
and where to exit by closing the talks
successfully.
23. • Should build trust and confidence.
• Should be confident and optimist.
• Should have clear cut goals and objectives.
• If necessary, he should provide a face saving
formula for his counter party.
• Should be able to grasp the situation from many
Negotiation skills - Gihan
Aboueleish
dimensions.
• Should know human psychology and face
reading
24. • Should not be a doubting Thomas.
• Should plan and prepare thoroughly with
relevant data and information to avoid
blank mind in the process.
• Should radiate energy and enthusiasm and
Negotiation skills - Gihan
Aboueleish
must be in a position to empathize with his
opponents.
• Should be a patient listener.
25. How To Develop These Skills And Use Them
Effectively ?
• what negotiation means and the various forms
it can take that negotiating, in the fullest
sense, means forging long-term relationships
the role that the individual personalities play in
Negotiation skills - Gihan
Aboueleish
negotiating that you must take a variety of
approaches to negotiation, since no single set
of principles will suffice in all circumstances
28. Managerial Negotiations
Types Parties Involved Examples
1. Different levels of 1. Negotiation for
Day-to-day/ Management pay, terms and
Managerial
Negotiation skills - Gihan
working
Aboueleish
Negotiations 2. In between
colleagues conditions.
3. Trade unions 2. Description of
the job and
4. Legal advisers
fixation of
responsibility.
3. Increasing
productivity.
29. Commercial Negotiations
Types Parties Involved Examples
Commercial 1. Management 1. Striking a contract with
Negotiation skills - Gihan
Aboueleish
Negotiations 2. Suppliers the customer.
3. Government 2. Negotiations for the
4. Customers price and quality of
5. Trade unions goods to be
6. Legal advisors purchased.
7. Public 3. Negotiations with
financial institutions as
regarding the
availability of capital
30. Legal Negotiations
Types Parties Involved Examples
1.Government 1. Adhering to
the laws of
Negotiation skills - Gihan
Legal
Aboueleish
2.Management
Negotiations the local and
3.Customers national
government.
31. How To Plan Your Negotiation Agenda
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Aboueleish
32. Preparing For A Successful Negotiation…
Depending on a scale of disagreement, the level
of preparation might be appropriate for
conducting the successful negotiation.
Negotiation skills - Gihan Aboueleish
For a small disagreements, excessive
preparation could be counter-productive
because it do takes time which is better focused
in reaching the team goals.
33. If the major disagreement needed to be resolved,
preparing thoroughly for that is required, and
worthwhile.
Think through following points before you could start
Negotiation skills - Gihan Aboueleish
negotiating.
• Goals:
What you want to get out from the negotiation?
What do you expect from the other person?
34. What you and the other person have
which you can trade?
Negotiation skills - Gihan Aboueleish
• What do you and the other person have
so that the other wants it?
• What might you both be prepared to give
away?
35. • Alternatives:
• If you do not reach the agreement with
him/her, what alternatives you have?
• Are these things good or bad
alternatives?
Negotiation skills - Gihan Aboueleish
• How much it matters if you do not reach
the agreement?
• Will the failure to reach the agreement
cut out future opportunities?
• What alternatives may the other person
have?
36. • The relationship:
• What is a history of relationship?
• Can or should this history impact
negotiation?
Negotiation skills - Gihan Aboueleish
• Will there be any of the hidden issues
that might influence negotiation?
• How you will handle these?
37. • Expected outcomes:
• What outcome would people
be expecting from the
Negotiation skills - Gihan Aboueleish
negotiation?
• What was the outcome in the
past, and what precedents been
set?
38. • The Consequences:
• What are the consequences of
winning or losing this negotiation by
Negotiation skills - Gihan Aboueleish
you?
• What are the consequences of
winning or loosing by the other
person?
39. Power: •
• Who has the power in the
relationship?
• Who do controls the resources?
Negotiation skills - Gihan Aboueleish
• Who stands to lose most if agreement
is not been reached?
• What power does other person have to
deliver which you do hope for?
40. • Possible Solutions:
•
Based on all considerations, what possible
Negotiation skills - Gihan Aboueleish
compromises might be there?
41. Negotiating And Long-term Relationships
Good negotiators are the people who understand
• how to build key relationships
Negotiation skills - Gihan Aboueleish
• how to identify what people need
• how to give them what they need and
• how to get what they want in return, all
in a way that seems effortless.
42. Negotiating And Individual Personalities
Autocratic managers typically hold the view that they
are going to get what they want when they interact with
subordinates, because their inherent authority
Negotiation skills - Gihan Aboueleish
precludes the need to negotiate.
These managers do not realize that, in the process of
handing out orders, they are engaged in a kind of one-
sided negotiation that can antagonize others, with the
result that the tasks they wish to see completed may be
carried out improperly or not at all.
43. The Accommodating manager is more concerned
with what others want than with their own
needs.
Negotiation skills - Gihan Aboueleish
In order to avoid conflict, they do not negotiate at
all and often end up overriding their own
interests.
45. The Negotiation Process
BATNA
The Best Alternative To a
Negotiation skills - Gihan Aboueleish
Negotiated Agreement; the
lowest acceptable value
(outcome) to an individual for a
negotiated agreement.
46. Your “BATNA “ is the only standard which can protect
you both from accepting terms that are too
unfavourable and from rejecting terms it would be
Negotiation skills - Gihan Aboueleish
in your interest to accept.”
In the simplest terms, if the proposed agreement is
better than your “BATNA”, then you should accept
it. If the agreement is not better than your
“BATNA” , then you should reopen negotiations.
47. Where Do Use This Skill?
• Everything is negotiated.
• Family and personal
• “ Where should we go for dinner?”
• “ Can I borrow the car?”
Negotiation skills - Gihan Aboueleish
• Academic research
• “ Fund my project.”
• “ Publish my paper.”
• Business ventures
• “ I want a raise.”
• “ Invest in my company.”
• “ Pay me a license fee or I’ll sue you.”
48. Determining Your BATNA
BATNAs are not always readily apparent. Fisher
and Ury outline a simple process for determining
your BATNA:
Negotiation skills - Gihan Aboueleish
• develop a list of actions you might conceivably
take if no agreement is reached;
• improve some of the more promising ideas
and convert them into practical options; and
• select, tentatively, the one option that seems
best.
49. A persons go for car purchase.
[To negotiate with showroom sales man
for lesser price]
Negotiation skills - Gihan Aboueleish
The car owner is not
agreeing for the
lesser price.
Than customer can
ask for Radial
tires[best alternative]
with any increase in
price further.
51. Case Study – Application 01
• Highly Brill Leisure Centre has hired you to help
them with their marketing decision making.
Perform a SWOT analysis on Highly Brill Leisure
Negotiation skills - Gihan Aboueleish
Centre, based upon the following issues:
52. CASE STUDY – Application 02
A community discovers that its water is being
polluted by the discharges of a nearby factory.
Community leaders first attempt to negotiate a
Negotiation skills - Gihan Aboueleish
clean-up plan with the company, but the
business refuses to voluntarily agree on a plan of
action that the community is satisfied with.
53. Issues In Negotiation
The Role of Mood & Personality Traits in Negotiation;
• Positive moods positively affect negotiations
• Traits do not appear to have a significantly
Negotiation skills - Gihan Aboueleish
direct effect on the outcomes of either
bargaining or negotiating processes (except
extraversion, which is bad for negotiation
effectiveness)
54. Gender Differences In Negotiations;
• Women negotiate no differently from men,
although men apparently negotiate slightly
better outcomes.
Negotiation skills - Gihan Aboueleish
• Men and women with similar power bases
use the same negotiating styles.
• Women’s attitudes toward negotiation and
their success as negotiators are less favorable
than men’s.
55. The Importance of BATNAs
Once parties establish a BATNA, they must
then compare the costs and benefits of
the BATNA to all of the settlement options
Negotiation skills - Gihan Aboueleish
on the table.
Ask, "What's it going to cost you if you
don't?"
57. • Most of the negotiation literature focuses on
two strategies, although they call them by
different names.
Negotiation skills - Gihan Aboueleish
• One strategy is interest-based(or integrative, or
cooperative) bargaining, while the other is
positional (or distributive or competitive)
bargaining.
58. Interest-based Bargaining /Win-win
Bargaining
• Integrative bargaining in which parties
collaborate to find a “win-win" solution to
Negotiation skills - Gihan Aboueleish
their dispute.
• This strategy focuses on developing
mutually beneficial agreements based on
the interests of the disputants.
• Interests include the needs, desires,
concerns, and fears important to each
side.
59. Positional Bargaining
Positional bargaining is one that involves
holding on to a fixed idea, or position, of
Negotiation skills - Gihan Aboueleish
what you want and arguing for it and it
alone, regardless of any underlying
interests.
62. Exercise #1
Roles : Rita, a 15 year old girl. The Observer becomes
Rita’s parent. Others are Observers to record use/abuse
of “win/win” techniques.
Negotiation skills - Gihan Aboueleish
Background: Rita is calling home from a payphone on
Hwy 401 to tell her parent she is hitch-hiking to
Hollywood to be a movie star. She has no money, is a
little afraid, and secretly wants to go to drama school.
The parent is worried about Rita being out after curfew.
Parent picks up the ‘phone, and has 3 minutes to effect
a “win-win” approach before the payphone times out.
63. Exercises #2
Background:
Suresh has a Programmer off sick, and wants to negotiate two
weeks of Kunal’s time to work on the Company’s most
important project immediately, because Kunal is the best
Negotiation skills - Gihan Aboueleish
programmer, and knows the tasks. Delays may affect
everyone’s bonus.
Kunal’s Manager is concerned the loss of Kunal will mean he
will not be able to complete tasks on another project their
department is committed to deliver (requiring one week of
work in the next 3 weeks), because Suresh has a reputation of
over-utilizing resources (and padding their schedule
contingency). Other commitments will also need juggling.
64. Exercise #3
Background: Raima is not using the car
this weekend, but is concerned the good
friend is a fast driver. The friend is
Negotiation skills - Gihan Aboueleish
generous, and has done Raima several
favors for Raima, including a recent
birthday gift.
Time: 3 minutes
65. Use….Competition
When quick, decisive action is vital (in emergencies); on
important issues.
Where unpopular actions need implementing (in cost
Negotiation skills - Gihan Aboueleish
cutting, enforcing unpopular rules, discipline).
On issues vital to the organization’s welfare.
When you know you’re right.
Against people who take advantage of noncompetitive
behavior.
66. Use …..Collaboration
To find an integrative solution when both sets of
concerns are too important to be compromised.
When your objective is to learn.
To merge insights from people with different
Negotiation skills - Gihan Aboueleish
perspectives.
To gain commitment by incorporating concerns into a
consensus.
To work through feelings that have interfered with a
relationship.
67. Use….Avoidance
When an issue is trivial, or more important issues are
pressing.
When you perceive no chance of satisfying your
concerns.
When potential disruption outweighs the benefits of
Negotiation skills - Gihan Aboueleish
resolution.
To let people cool down and regain perspective.
When gathering information supersedes immediate
decision.
When others can resolve the conflict effectively.
When issues seem tangential or symptomatic of other
issues.
68. Use….Accommodation ;
When you find you’re wrong and to allow a better
position to be heard.
To learn, and to show your reasonableness.
When issues are more important to others than to
yourself and to satisfy others and maintain
Negotiation skills - Gihan Aboueleish
cooperation.
To build social credits for later issues.
To minimize loss when outmatched and losing.
When harmony and stability are especially important.
To allow employees to develop by learning from
mistakes.
69. Use…compromise;
When goals are important but not worth the effort
of potential disruption of more assertive
approaches.
When opponents with equal power are committed
Negotiation skills - Gihan Aboueleish
to mutually exclusive goals.
To achieve temporary settlements to complex issues.
To arrive at expedient solutions under time pressure.
As a backup when collaboration or competition is
unsuccessful.
73. 1) Prepare, prepare, prepare
2) Pay attention to timing
3) Leave behind your ego.
4) Ramp up your listening skills.
Negotiation skills - Gihan Aboueleish
5) If you don't ask, you don't get
74. 6. Anticipate compromise
7. Offer and expect commitment
8. Don't absorb their problems
9. Stick to your principles
Negotiation skills - Gihan Aboueleish
10. Close with confirmation.
75. 01- Prepare, Prepare, Prepare
Pay attention to timing. Timing is important in
any negotiation. Sure, you must know what to
Negotiation skills - Gihan Aboueleish
ask for. But be sensitive to when you ask for it.
There are times to press ahead, and times to
wait. When you are looking your best is the time
to press for what you want. But beware of
pushing too hard and poisoning any long-term
relationship.
76. - Pay Attention To Timing
• Pay attention to timing. Timing is important in
any negotiation. Sure, you must know what to
ask for. But be sensitive to when you ask for it.
There are times to press ahead, and times to
Negotiation skills - Gihan Aboueleish
wait. When you are looking your best is the time
to press for what you want. But beware of
pushing too hard and poisoning any long-term
relationship.
77. 03- Leave Behind Your Ego.
• Leave behind your ego. The best
negotiators either don't care or don't show
they care about who gets credit for a
successful deal. Their talent is in making
Negotiation skills - Gihan Aboueleish
the other side feel like the final agreement
was all their idea.
78. 04 - Ramp Up Your Listening Skills.
Ramp up your listening skills. The best negotiators
are often quiet listeners who patiently let others
have the floor while they make their case. They
never interrupt. Encourage the other side to talk
Negotiation skills - Gihan Aboueleish
first. That helps set up one of negotiation's oldest
maxims: Whoever mentions numbers first, loses.
While that's not always true, it's generally better
to sit tight and let the other side go first. Even if
they don't mention numbers, it gives you a
chance to ask what they are thinking.
79. -if You Don't Ask, You Don't Get
• If you don't ask, you don't get. Another
tenet of negotiating is "Go high, or go
home." As part of your preparation,
define your highest justifiable price. As
Negotiation skills - Gihan Aboueleish
long as you can argue convincingly, don't
be afraid to aim high. But no ultimatums,
please. Take-it-or-leave-it offers are
usually out of place.
80. 06- Anticipate Compromise.
• Anticipate compromise. You should expect to
make concessions and plan what they might be.
Of course, the other side is thinking the same, so
Negotiation skills - Gihan Aboueleish
never take their first offer. Even if it's better than
you'd hoped for, practice your best look of
disappointment and politely decline. You never
know what else you can get.
81. 07- Offer And Expect Commitment.
• Offer and expect commitment. The
glue that keeps deals from unravelling
Negotiation skills - Gihan Aboueleish
is an unshakable commitment to
deliver. You should offer this comfort
level to others. Likewise, avoid deals
where the other side does not
demonstrate commitment.
82. Don't Absorb Their Problems.
• Don't absorb their problems. In most
negotiations, you will hear all of the other side's
problems and reasons they can't give you what
Negotiation skills - Gihan Aboueleish
you want. They want their problems to become
yours, but don't let them. Instead, deal with
each as they come up and try to solve them. If
their "budget" is too low, for example, maybe
there are other places that money could come
from.
83. Stick To Your Principles.
• Stick to your principles. As an individual
and a business owner, you likely have a set
Negotiation skills - Gihan Aboueleish
of guiding principles — values that you just
won't compromise. If you find
negotiations crossing those boundaries, it
might be a deal you can live without.
84. Close with confirmation.
• Close with confirmation. At the close of
any meeting — even if no final deal is
struck — recap the points covered and any
Negotiation skills - Gihan Aboueleish
areas of agreement. Make sure everyone
confirms. Follow-up with appropriate
letters or emails. Do not leave behind
loose ends.
86. • Speak more quietly than them.
• Have more space in between your words than
them.
• If they interrupt, pause for a few seconds after
Negotiation skills - Gihan Aboueleish
they finish.
• Be critical of foul language.
• Do not rise to a bait if they attack or blame you.
• Ignore all threats.
87. Handling Emotions
Emotional Challenges Recommended Response
Anger/exasperation Allow venting. Probe for why
Insulted What wouldn’t be insulting?
Guilt Focus on issues
Negotiation skills - Gihan Aboueleish
False flattery Re-focus
Tips:
•Don’t lose your cool .
•Try to defuse with acknowledgement, empathy, patience,
impartiality.
•Consider dealing with less emotional issues first
•Know your own “Hot Buttons”
•Practice
88. Know Your Hot
Buttons
Exercise: List the last 3 times you felt someone pressed
your “Hot Button”.
Subject Who pushed Why did you feel Next time I
Negotiation skills - Gihan Aboueleish
discussed your buttons? manipulated? will…..
89. Reachnegotiate?
So why an agreement
Get the better of the
opposition
Negotiation skills - Gihan Aboueleish
Compromise
Settle a dispute
Make a point
91. Key steps
In writing•
Speed•
Communicate Enforce•
clearly
Confidence Close deal
Flexible
Control
Strategy
Build expectations•
Who with
Preparation Which style?
Homework Easy first
Objectives Manage agenda
Benefits to both
91 Negotiation skills - Gihan Aboueleish
92. Negotiation Strategy
High
BARGAINING EMOTION
[Ability to modify others]
Negotiation skills - Gihan Aboueleish
INTITUTION
COMPROMISE LOGICALLY
Low
Low High
INFLUENCE
93. Bargaining Zone Model Of Negotiation
Your initial Your target
Your resistance
point point
point
Negotiation skills - Gihan Aboueleish
Area of
potential
agreement
Opponent’s Opponent’s Opponent’s
resistance target point initial point
point
95. Negotiating Behaviour
Gavin Kennedy describes 3 types of behaviour
that we can display and encounter when in a
negotiating situation.
Negotiation skills - Gihan Aboueleish
PURPLE BLUE RED
96. RED Behaviour
Manipulation
Aggressive
Negotiation skills - Gihan Aboueleish
Intimidation
Exploitation
Always seeking the best for you
No concern for person you are negotiating with
Taking
98. PURPLE Behaviour
• Give me some of what I want (red)
• I’ll give you some of what you want (blue)
• Deal with people as they are not how you think they are
• Good intentions
• Two way exchange
Negotiation skills - Gihan Aboueleish
• Purple behaviour incites purple behaviour
• Tit for tat strategies
• Open
• People know where they stand
• Determination to solve problems by both sets of criteria of the merits of the
case and/or the terms of a negotiated exchange
100. Effective Negotiation
• Successful relationships are built on communication
and trust.
• Lack of trust leads to “win-lose” or “lose-lose”
Negotiation skills - Gihan Aboueleish
result.
• Negotiation is one way of creating trust – or
deciding whether trust is justified.
• Example: “The Negotiator’s Dilemma” a classic
risk strategy game
101. The Negotiator’s Dilemma
B Cooperates B Competes
A Cooperates Both cooperates A Cooperates
Both have a good B Competes
outcome
Negotiation skills - Gihan Aboueleish
A has terrible outcome,
B has great outcome
A Competes A Competes Both competes
B Cooperates Both have mediocre
outcome
A has great outcome,
B has terrible outcome
102. Negotiation Tips;
1) Do not underestimate your power.
2) Do not assume that other party knows your
weaknesses.
3) It is a mistake to assume you know what the other
Negotiation skills - Gihan Aboueleish
party wants.
4) Never accept the 1st offer.
5) Don’t fear to negotiate.
103. Skills For Effective Negotiation
• Preparation and planning skill
• Knowledge of the subject
• Ability to think clearly and rapidly under
pressure and uncertainty
Negotiation skills - Gihan Aboueleish
• Ability to express thoughts verbally
• Listening skill
• Patience
• General problem-solving and analytical
skills
104. Preparation
1. Firstly understand what it is you want?
2. What do you think your opponent wants?
3. What would happen if you didn’t do a deal?
4. Do you know your stakeholders?
Negotiation skills - Gihan Aboueleish
5. Do you know who the decision maker is? Are you negotiating with
them? If not what affect does that have?
6. Are there concessions you can build into the negotiation?
7. Know your product / service inside out? What standards are there
in the market place?
8. Know your price points?
9. What issues do you think you’ll need to overcome?
10. Prioritize!
11. Practice!
105. Information Sharing
1. Company activities and market position
2. Opinion on entry points
3. What elements are clearly off the table or not up for discussion
Negotiation skills - Gihan Aboueleish
and why
4. Opponents attitude and commitment
5. Motivational factors (“I want this price because…”)
6. Stakeholders and importantly decision makers
7. Problems, issues or risk
8. An order/structure for proceedings
107. DEBATING
• To be successful in negotiation you must build relationships and
trust
• You need to avoid the following-
• Point scoring – “Your company is always late with deliveries so I’m not
paying that!”
Negotiation skills - Gihan Aboueleish
• Insults – “If you insist on that price you must be stupid”
• Provocation – “Keep talking like that and see where it gets you!”
• Threats – “You just wait until your other customers hear about this”
• Instead try-
• Building a relationship – It will make your negotiation much easier
• Sticking to an agreed agenda – This will help avoid destructive
discussions.
• Share information and ask questions – What do you want – what do
they want
• Try and be positive and listen – What do they want and why – look for
areas of win/win or easy compromise.
108. PROPOSING
• When proposing your offer consider
• Consider both your entry and exit – This could include all or some of
your wants, and your opponents entry and exit points
• Consider how you will phrase your proposal
Negotiation skills - Gihan Aboueleish
• Consider what will motivate your opponent into making the deal
• Consider the likely response – Think about the “if I do that then they
will do that”
• Are there alternative proposals? – Once an initial response has been
made are you happy or do you need to offer up something new.
• Remember the key thing is to propose – don’t argue and try and
remain realistic, and invite a response from your opponent.
109. Finalizing The Deal
• So when closing the deal consider
• Do you have what you want?
• Do they have what they want?
• Can you signify to your opponent that if certain terms were met the
Negotiation skills - Gihan Aboueleish
deal could be done.
• Do you both understand the potential non deal by not closing or
reaching agreement?
• Document the agreement quickly and share it with your opponent and
get agreement on the details of the deal.
• Do not offer further concessions!
• Agree the measures that will be applied to record fulfilment of the
deal.
110. Cabot Circus - UK
Negotiation skills - Gihan Aboueleish
112. Negotiation and Relationships
Global marketplace
Negotiation skills - Gihan Aboueleish
Long-lasting business relationships
Trust and integrity
Conflicts with short-term needs
Deals from position of strength
113. Preparation
Give and take
Trust and
integrity
Negotiation skills - Gihan Aboueleish
Shared values
Steady dialogue
Creative solutions
114. Your experiences? Negotiating in Dubai
Developers
Contractors
Negotiation skills - Gihan Aboueleish
Sub-contractors
Consultants
Suppliers
Local government
115. Summary
Promises – keeping them is hard
Builds reputation
Negotiation skills - Gihan Aboueleish
More Trust = More Wins
Never compromise on integrity
Success is measure over time…
116. People always give the most
consideration, the best deals,
to those people they like and
Negotiation skills - Gihan Aboueleish
TRUST
Day-to-day / Managerial Negotiations Such types of negotiations are done within the organization and are related to the internal problems in the organization. It is in regards to the working relationship between the groups of employees. Usually, the manager needs to interact with the members at different levels in the organization structure. For conducting the day-to-day business, internally, the superior needs to allot job responsibilities, maintain a flow of information, direct the record keeping and many more activities for smooth functioning. All this requires entering into negotiations with the parties internal to the organization.
Commercial NegotiationsSuch types of negotiations are conducted with external parties. The driving forces behind such negotiations are usually financial gains. They are based on a give-and-take relationship. Commercial negotiations successfully end up into contracts. It relates to foregoing of one resource to get the other.
Legal Negotiations These negotiations are usually formal and legally binding. Disputes over precedents can become as significant as the main issue. They are also contractual in nature and relate to gaining legal ground.
This type of manager must learn to be more collaborative. Autocratic managers have a tendency to miss seeing the big picture. When these types of managers fail to negotiate effectively, the results of their efforts often suffer. While autocratic types may believe they are skilled negotiators, they often are not because they lack the ability to listen and to empathize.
Since negotiation often implies conflict (something these types of managers avoid at all costs), it is critical for them to take responsibility for forcing a certain amount of compromise. This is the only way they will be able to lead others effectively.
Highly Brill Leisure Center has hired you to help them with their marketing decision making. Perform a SWOT analysis on Highly Brill Leisure Center, based upon the following issues:1.The Center is located within a two-minute walk of the main bus station, and is a fifteen-minute ride away from the local railway station.2.There is a competition standard swimming pool; although it has no wave machines or whirlpool equipment as do competing local facilities.3.It is located next to one of the largest shopping centers in Britain.4.It is one of the oldest centers in the area and needs some cosmetic attention.5.Due to an increase in disposable income over the last six years, local residents have more money to spend on leisure activities.6.There has been a substantial decrease in the birth rate over the last ten years.7.In general people are living longer and there are more local residents aged over fifty-five now than ever before.8.After a heated argument with the manager of a competing leisure center, the leader of a respected local scuba club is looking for a new venue.9.The local authority is considering privatizing all local leisure centers by the year 2000.10.Press releases have just been issued to confirm that Highly Brill Leisure Center is the first center in the area to be awarded quality assurance standard BS EN ISO 9002.11.A private joke between staff states that if you want a day-off from work that you should order a curry from the Center's canteen, which has never made a profit.12.The Center has been offered the latest sporting craze.13.Highly Brill Leisure Center has received a grant to fit special ramps and changing rooms to accommodate the local disabled.14.It is widely acknowledged that Highly Brill has the best-trained and most respected staff of all of the centres in the locality
Negotiation activity_charity
Established rapport and common goals?Probed for understanding of beliefs, goals, win-win options, and hidden stakeholder motivators? Paraphrased for confirmation/affirmation?Analysed outcomes and risks?Summarized what was agreed on, and next steps?If stalled, returned to a fundamental that was agree on?Built on this common ground?Avoided emotional responses (even if insulted)?Considered interim options (or postponement) if undesirable outcome was imminent, or key info missing?
Anticipate compromise. You should expect to make concessions and plan what they might be. Of course, the other side is thinking the same, so never take their first offer. Even if it's better than you'd hoped for, practice your best look of disappointment and politely decline. You never know what else you can get. Offer and expect commitment. The glue that keeps deals from unraveling is an unshakable commitment to deliver. You should offer this comfort level to others. Likewise, avoid deals where the other side does not demonstrate commitment. Don't absorb their problems. In most negotiations, you will hear all of the other side's problems and reasons they can't give you what you want. They want their problems to become yours, but don't let them. Instead, deal with each as they come up and try to solve them. If their "budget" is too low, for example, maybe there are other places that money could come from. Stick to your principles. As an individual and a business owner, you likely have a set of guiding principles — values that you just won't compromise. If you find negotiations crossing those boundaries, it might be a deal you can live without. Close with confirmation. At the close of any meeting — even if no final deal is struck — recap the points covered and any areas of agreement. Make sure everyone confirms. Follow-up with appropriate letters or emails. Do not leave behind loose ends.