Negotiation Workshop Prof. Steven A. Gedeon, PhD, MBA, PEng Director, Ryerson Entrepreneur Institute  [email_address]     ...
Negotiation Workshop                                                                                        
This Evening’s Agenda <ul><li>Position Based Negotiation </li></ul><ul><li>Principle Based Negotiation </li></ul><ul><li>B...
Position Based Negotiation <ul><li>“ Hard” vs. “Soft” </li></ul><ul><li>Tendency to Lock into a Position </li></ul><ul><ul...
Principle Based Negotiation <ul><li>Separate the People from the Problem </li></ul><ul><li>Focus on Interests, Not Positio...
Separate the People from the Problem <ul><li>Negotiators are People First </li></ul><ul><li>Negotiators’ Interest in both ...
Focus on Interests, Not Positions <ul><li>Two Sisters and the Orange </li></ul><ul><li>Ask “Why?” </li></ul><ul><li>Put th...
Invent Options  for Mutual Gain <ul><li>Diagnosis </li></ul><ul><ul><li>Premature Judgment </li></ul></ul><ul><ul><li>Sear...
Insist on Using  Objective Criteria <ul><li>Fair Standards </li></ul><ul><li>Fair Procedures </li></ul><ul><ul><li>I Divid...
Basic Strategy <ul><li>Create Gains then Capture Gains </li></ul><ul><li>Assess Range then Drop the Anchor </li></ul>
Basic Analysis <ul><li>Determine Your BATNA (Best Alternative to a Negotiated Agreement – your “Walk Away” Position) </li>...
Tactics 1 <ul><li>Critical Role of Information  </li></ul><ul><li>Importance of Anchors </li></ul><ul><li>Always be Reluct...
Single-Issue Workshop  Steven A. Gedeon , PhD, MBA, PEng  [email_address] Home Purchase
Tactics 1  <ul><li>Critical Role of Information  </li></ul><ul><li>Importance of Anchors </li></ul><ul><li>Always be Reluc...
Tactics 2 <ul><li>The Power of Silence </li></ul><ul><li>The Importance of Time </li></ul><ul><li>Let Your Minions Negotia...
Getting Information <ul><li>Trial Balloons </li></ul><ul><li>Ask Questions </li></ul><ul><li>Give Info to Get Info </li></...
Multi-Issue Negotiation <ul><li>3 Types of Issues: </li></ul><ul><ul><li>Mutual Agreement </li></ul></ul><ul><ul><li>Integ...
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Negotiation seminar

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Training Track #11: Negotiation

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Negotiation seminar

  1. 1. Negotiation Workshop Prof. Steven A. Gedeon, PhD, MBA, PEng Director, Ryerson Entrepreneur Institute [email_address]                                                                                        
  2. 2. Negotiation Workshop                                                                                        
  3. 3. This Evening’s Agenda <ul><li>Position Based Negotiation </li></ul><ul><li>Principle Based Negotiation </li></ul><ul><li>Basic Strategy </li></ul><ul><li>Basic Tactics </li></ul><ul><li>Single-Issue Example </li></ul><ul><li>Review </li></ul><ul><li>More Tactics </li></ul>
  4. 4. Position Based Negotiation <ul><li>“ Hard” vs. “Soft” </li></ul><ul><li>Tendency to Lock into a Position </li></ul><ul><ul><li>The more you try to convince the other side of your position, the harder it is to change it </li></ul></ul><ul><ul><li>Ego becomes identified with the position </li></ul></ul><ul><li>Tactics make Negotiation Take Longer </li></ul><ul><li>Win-Lose Damages the Relationship </li></ul><ul><li>Poor Outcomes (Lose-Lose) </li></ul>
  5. 5. Principle Based Negotiation <ul><li>Separate the People from the Problem </li></ul><ul><li>Focus on Interests, Not Positions </li></ul><ul><li>Invent Options for Mutual Gain </li></ul><ul><li>Insist on Using Objective Criteria </li></ul>Based on “Getting to Yes” Fisher & Ury
  6. 6. Separate the People from the Problem <ul><li>Negotiators are People First </li></ul><ul><li>Negotiators’ Interest in both Substance and Relationship </li></ul><ul><li>Separate Relationship From Substance </li></ul><ul><ul><li>Perception </li></ul></ul><ul><ul><li>Emotion </li></ul></ul><ul><ul><li>Communication </li></ul></ul>
  7. 7. Focus on Interests, Not Positions <ul><li>Two Sisters and the Orange </li></ul><ul><li>Ask “Why?” </li></ul><ul><li>Put the Problem before your Answer </li></ul><ul><li>Be Hard on the Problem and Soft on the People </li></ul>
  8. 8. Invent Options for Mutual Gain <ul><li>Diagnosis </li></ul><ul><ul><li>Premature Judgment </li></ul></ul><ul><ul><li>Searching for a Single Answer </li></ul></ul><ul><ul><li>Assuming a Fixed Pie </li></ul></ul><ul><ul><li>Solving Their Problem is Their Problem </li></ul></ul><ul><li>Prescription </li></ul><ul><ul><li>Separate Brainstorming from Judging </li></ul></ul><ul><ul><li>Broaden the Number of Options </li></ul></ul><ul><ul><li>Search for Mutual Gain </li></ul></ul>
  9. 9. Insist on Using Objective Criteria <ul><li>Fair Standards </li></ul><ul><li>Fair Procedures </li></ul><ul><ul><li>I Divide You Decide </li></ul></ul><ul><ul><li>Last Best Offer </li></ul></ul><ul><li>Agree on Principles </li></ul>
  10. 10. Basic Strategy <ul><li>Create Gains then Capture Gains </li></ul><ul><li>Assess Range then Drop the Anchor </li></ul>
  11. 11. Basic Analysis <ul><li>Determine Your BATNA (Best Alternative to a Negotiated Agreement – your “Walk Away” Position) </li></ul><ul><li>Determine Their BATNA </li></ul><ul><li>Assess the True Issues in the Negotiation </li></ul><ul><li>Determine Important Issues to You </li></ul><ul><li>Determine Important Issues to Them </li></ul>
  12. 12. Tactics 1 <ul><li>Critical Role of Information </li></ul><ul><li>Importance of Anchors </li></ul><ul><li>Always be Reluctant, Never Enthusiastic </li></ul><ul><li>Flinch, Show Disbelief </li></ul><ul><li>Always Ask for More than you Expect </li></ul><ul><li>Never Accept the First Offer </li></ul><ul><li>Be Predictable, Explicit, Never Lie </li></ul>
  13. 13. Single-Issue Workshop Steven A. Gedeon , PhD, MBA, PEng [email_address] Home Purchase
  14. 14. Tactics 1 <ul><li>Critical Role of Information </li></ul><ul><li>Importance of Anchors </li></ul><ul><li>Always be Reluctant, Never Enthusiastic </li></ul><ul><li>Flinch, Show Disbelief </li></ul><ul><li>Always Ask for More than you Expect </li></ul><ul><li>Never Accept the First Offer </li></ul><ul><li>Be Predictable, Explicit, Never Lie </li></ul>
  15. 15. Tactics 2 <ul><li>The Power of Silence </li></ul><ul><li>The Importance of Time </li></ul><ul><li>Let Your Minions Negotiate, then Push for Later Concessions </li></ul><ul><li>Advance your Interests Outside of Negotiation </li></ul><ul><li>Sometimes you Need to Walk Away </li></ul><ul><li>Firm on Interests, Flexible on Position </li></ul><ul><li>Sunk Costs, Escalation </li></ul><ul><li>Don’t Proceed Issue-by-Issue </li></ul>
  16. 16. Getting Information <ul><li>Trial Balloons </li></ul><ul><li>Ask Questions </li></ul><ul><li>Give Info to Get Info </li></ul><ul><li>Put out Tentative Offers or Multiple Offers </li></ul><ul><li>Powerful Technique </li></ul><ul><ul><li>Post Settlement Settlement </li></ul></ul>
  17. 17. Multi-Issue Negotiation <ul><li>3 Types of Issues: </li></ul><ul><ul><li>Mutual Agreement </li></ul></ul><ul><ul><li>Integrative Issues </li></ul></ul><ul><ul><ul><li>Important to One Party, Not Important to the Other </li></ul></ul></ul><ul><ul><ul><li>Inherently Win-Win Opportunities </li></ul></ul></ul><ul><ul><li>Distributive Issues </li></ul></ul><ul><ul><ul><li>Equally Important to Both Parties </li></ul></ul></ul><ul><ul><ul><li>Inherently Win-Lose </li></ul></ul></ul>
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