Negotiation skills

1. Negotiation Skills Welcome

2. Negotiation Skills My father said: "You must never try to make all the money that's in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won't have many deals.” J. Paul Getty

3. Why Negotiate? Gavin Kennedy in his book The New Negotiating Edge says.. ‘ Animals do not negotiate. They use violence or the threat of violence to get what they want, whether it be food, a mate or territory.’ Have you ever seen 2 dogs negotiate over a bone? ‘ Trade is the human foundation of human civilisation. It is what makes humans different from animals.’ ‘ Negotiation is anathema to tyrants, who usually want something for nothing and do not recognise a need for another person’s voluntary consent before they get what they want’

4. Negotiation – What is it? ‘ The process by which we search for the terms to obtain what we want from somebody who wants something from us’ Gavin Kennedy Confer with others to reach a compromise or agreement. Concise Oxford Dictionary To negotiate is to trade something we have for something we want. Anon ‘ Negotiation is an explicit voluntary traded exchange between people who want something from each other’ Gavin Kennedy

5. Some decision making tools for negotiation: Persuasion : Usually the first method we choose when we want something. Useful when interests or opinions are the same. Giving in: This is not the easy way out, and sometimes it’s just not worth continuing if the cost (in any terms) is too high. Coercion : This could simply be stating your options, ‘I could take my business elsewhere’. It could also be gentle reminders or unspecified consequences right up to threats. Threats are not useful in a negotiation situation as they erupt in full blown battles. Problem Solving : Works well when both parties have a strong relationship, where you trust each other, and share the problem.

6. When do we Negotiate? When we need someone’s consent When the time and effort of negotiating are justified When the outcome is uncertain Source: The Negotiate Trainers Manual 1996 p6.

11. The Four Phases of Negotiation PLAN DEBATE PROPOSE BARGAIN 11

18. The other negotiator makes a statement with which you profoundly disagree. Do you: a. Tell him that he is mistaken and explain why? b. Ask him why he believes that his statement is true? a. He won’t listen. He will be constructing his counter argument. b. Yes. The best way to handle disagreement is to question the person with whom you disagree. DEBATE 18

25. Examples of Proposals 25 Submissive Assertive 1. How about we make it 10%? 2. No Problem. 3. I hope you can meet that deadline. 4. We were hoping to include a liquidated damages clause. 5. It’ll be tough to meet that deadline but ok we’ll give it a go

26. Examples of Proposals 26 Submissive Assertive 1. How about we make it 10%? If you make it a 10% discount, then we will order in lots of 100,000. 2. No Problem. If you pay our costs then we could consider uplifting it ourselves. 3. I hope you can meet that deadline. If you meet that deadline then we can consider giving you the work 4. We were hoping to include a liquidated damages clause. If you include a liquidated damages clause then you are eligible to be awarded the contract 5. It’ll be tough to meet that deadline but ok we’ll give it a go If you pay our premium hourly overtime rates then we’ll go for that deadline.

28. Answer: Vague-Vague. Vague in the condition and offer. The proposal isn’t specific about the changes in the terms of business nor in what amendments could be made to the payment schedule. Example 2: ‘If you amended the penalty period from 14 to 7 days then I could consider some amendments to our payment schedule’ Is example 2: A. Vague-vague (vague in condition and offer) B. Specific-vague (specific in condition and vague in offer) PROPOSE 28

42. Any Questions?

43. Thank You!