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Enterprise Chapter 10 Negotiation.pptx

  1. Negotiation Enterprise Ch 10 Ms. CAROL
  2. The purpose and role of negotiation Negotiation is all about trying to find a solution that everyone is happy with. The process of negotiation can involve: ● Resolving disputes ● Agreeing on courses of action ● Bargaining for individual or collective advantage ● Reaching outcomes to satisfy the interests of those involved.
  3. Three main stages of a negotiation: 1. Planning 2. Conducting the negotiation 3. Measuring success
  4. Planning a negotiation What will happen in a negotiation cannot be predicted. That is why it is important to have a clear focus so you can stay calm whatever happens in a meeting. Planning involves two main stages: 1. Setting objectives 2. Identifying benefits and drawbacks of a proposal
  5. Setting objectives Thinking ahead is important to a successful negotiation. Ask yourself the following questions: ● What do you want to achieve from the negotiation? ● What do you think the other size (person or organisation) wants? ● What are you going to say and how are you going to say it? ● Who are you going to be negotiating with? ● What will you do if you cannot get your first choice? What are you prepared to accept, offer or give up to reach a compromise agreement? ● Will you insist on getting exactly what you want or are you willing to collaborate with other side to find an alternative solution? ● Have you listed the consequences for both sides if your proposal is not accepted? ● At what point would you walk away from the negotiation, why? The answers to these questions will influence your negotiating strategy.
  6. Possible outcomes ● a collaborative approach can often provide the best result as it aims to achieve a win-win outcome. This is where both sides gain something from the process. ● Some negotiations will end in a compromise agreement (also known as win-lose/lose-win) with both sides getting a slightly different outcome than originally/intended. ● If you adopt a competitive approach (win-lose) you must be sure you are right and the other side has no choice but to accept your proposal. If you are not willing to compromise at all you must be prepared to leave the meeting with nothing (lose-lose)
  7. Choosing evidence to use Any information used must be accurate, well presented and include all the relevant facts. Example: to convince someone to invest their hard earned money to your business you should show you are well prepared. You cannot provide poor tasting food as a sampler if you plan to open a restaurant.
  8. Benefits and weakness of a proposal Write down possible advantages and disadvantages for both sides of accepting your proposal. Try to identify what they may want in return for an agreement and any reasons why they may or may not accept your proposal if necessary.
  9. Arguments and counter arguments for the proposal The other side may put forward reasons that go against some or all points you plan to make as part of your case. Identify key details that you think the other side may disagree with. Think abut why they may be opposed to it so you can be ready with a suitable response. If you cannot think of a suitable answer it may be that wha you are proposing is unreasonable. You still have time to change parts of your proposal if necessary.
  10. Skills required for a negotiation ● Persuasion Good communication skills are important part of being successful negotiator. Practice is important as it can take time to develop effective skills. You will need to be able to explain points in clear and simple language, and do so with confidence. ● Listening knowing how to listen is important. You need to know what the other side said so you could ask the right questions and don’t miss out on important information to help you reach a successful outcome ● Problem solving ● Decision-makinG ● Initiative
  11. Conducting the negotiation Setting the tone. It is important to create the right atmosphere ● When and where - find the suitable time and place for the meeting. ● Get to know the other side - build trust first so that they may feel more at ease instead of going direct to the point. ● Language - what you say and how you say it plays a big role. ● Be confident and calm - do not feel intimidate and relax so you can think more clearly
  12. Presenting your proposal ● Explain simply and clearly to the other side what you want and what you are willing to offer them and why they should accept your proposal. ● Be specific - only use materials and information relevant to your proposal ● If using visual aids, photocopies handouts, print enough copies for everyone. Check any equipment you would need for the presentation is available and it orks.
  13. Understanding other points of view you need to get the other side to share their requirements with you. The best way is ask questions.
  14. Reaching an agreement When both sides are happy with what's being can finalize the deal. Put down in writing what has been agreed so everyone knows what has been decided for future reference.
  15. Measuring success The purpose of this stage is to identify what went well and to consider how you could improve next time. There are a wide range of evidence you can use: Amount , cost or price paid, feedback received from third party or some self- assessment.
  16. Some questions that might be helpful to you when you are measuring success. Outcome: ● Did you get what you wanted? Was the other side happy with the outcome?How do you know or why do you think this? ● If the negotiation was unsuccessful, why do you think this?
  17. Process: ● How well did you do when planning and conducting the negotiation? ● Had you anticipated their counter arguments? ● Did you manage to set the right tone? ● Did you use simple and clear language? Did you ask the right questions? Did you listen carefully to the points and arguments made by other side? ● Did you manage to persuade them to change their point of view? How did you achieve this? ● Would you change your negotiation strategy next time? ● Which enterprise skills did you use?
  18. Business improvement cycle
  19. END.