Leading a negotiation is not easy, but should not be scary, either. The key to a successful negotiation is mastering communication techniques and getting your counterpart to cooperate for mutual gains. This presentation serves as a necessary introduction for anyone interested in knowing how to approach a negotiation situation as it presents itself either in personal or professional life.

1. By

2.  Negotiation: a fact of life
 Negotiation: definition of
 Negotiation approaches
 Win - Lose
 Lose - Lose
 Win - Win
 Principles of Win – Lose (distributive)
 Common dirty tricks used in negotiations
 Principles of Win – Win (integrative)
 Stages of negotiation
 Conclusion
 References

3.  A child living in a family where quarrels, and sometimes even
fights, between his mother and father are frequent. The child
wonders if there is a better way of dealing with differences.
 In July 2010, in its bid to reach out to a global clientele, Japan’s
Internet shopping mall operator Rakuten Inc. announced that it
would make English its official language by 2012. A bit
apprehensive about the move, employees voice their concern to
top management.
 A customer wants to buy a jacket but the price is high.
Question: How can one handle situations like these?
Answer: Communication.

4. ‘Negotiation is a basic means of getting what you want
from others. It is back-and-forth communication
designed to reach an agreement when you and the other
side have some interests that are shared and others that
are opposed.’--- William Ury
Question: How do we go about securing interests?

5. Positional bargaining Principled bargaining
win - lose lose - lose win - win

6.  Participants are friends  Participents are adversaries
 Seeks agreement  Seeks victory
 Makes concessions to cultivate  Demands concessions as a
the relationship condition of the relationship
 Be soft on the people and the  Be hard on the people and the
problem problem
 Trusts others  Distrusts others
 Changes his position easily  Sticks to his position
 Makes offers  Makes threats
 Discloses his bottom line  Misleads as to his bottom line
 Insists on agreement  Insists on his position
 Yields to pressure  Applies pressure

7.  Phony facts:
 Example: A salesperson tries to persuade his customer that an Siera
washing machine is much better than a Whirlpool one.
 Counter tactic: Ask the salesperson to explain how he has come to the
conclusion.
 Ambiguous authority:
 Example: Your counterpart makes you believe that he is the final
decision-maker. This trick serves to make you make further concessions
or to give in to earlier demands, which may not be to your advantage.
 Counter tactic: Don’t get defensive or accuse your negotiation
counterpart of misleading you. You may say to him something like, ‘You
may want to tell your manager that if anything changes, everything will
be open for renegotiation.’ Maybe you can appeal to his ego and say, ‘So
you don't have any authority. And I thought you had some power.’

8.  Stressful situations:
 Example: The physical circumstances in which negotiations take place. Ask
yourself: will negotiations take place at your place or at his, or on a neutral
territory? Do you feel stress? Is the room cold/hot? Is it noisy?
 Counter tactic: Tell your counterpart about what circumstances you don’t feel
happy with and suggest changing things in a way that will make both of you
comfortable.
 Personal attacks:
 Example: Your counterpart could use verbal and non-verbal communication to
make you feel uncomfortable. He can attack your status, ignore you during a
negotiation, fail to make eye contact, or comment negatively on your
appearance, your intelligence , or integrity.
 Counter tactic: Recognize the trick for what it is then refocus the negotiation
on the problem at hand.

9.  Good guy / Bad guy: One person plays the good guy; the other the
bad guy.
 Example: While the bad police officer is very tough with an arrested
criminal to get important information about a crime, the good officer is
nice to the arrested man and says that he wants to help him. The result is
that the arrested man cooperates with the good officer and supplies
important information.
 Counter tactic: Identify the tactic and discuss it openly.
 Threats:
 Example: If you do not respect the deadline of sending me the ordered
goods, I will be obliged to turn to another supplier.
 Counter tactic: Discuss the ramifications of this action.

10. Stephen
Mark: ‘Stephen, this Win-Win idea sounds good, but it is so idealistic. The
tough, realistic business world isn’t like that. There’s much Win/Lose
everywhere, and if you’re not […] playing the game, you just can’t make
it.’
Stephen: ‘All right! Trying going for Win-Lose with your customers. Is that
realistic?’
Mark: ‘Well, no.’
Stephen: ‘ Why not?’
Mark: ‘I’d lose my customers.’
Stephen: ‘Then, go for Lose-Win---give the store away. Is that realistic?’
Mark: ‘No. No margin, no mission.’
As Mark and Stephen considered the 3 approaches, Win/Win appeared to be
the only truly realistic approach.
Mark: ‘I guess that’s true with customers, but not with suppliers.’
Stephen: ‘You are the customer of the supplier. Why doesn’t the same
principle apply?’

11. Fundamental principles:
 People : Separate the people from the problem.
 Interests:Focus on interests, not positions.
 Options : Make a list of possibilities before
deciding what to do.
 Criteria: Insist on objective criteria.

12. 1. Participants are problem-solvers.
2. The objective is a wise result reached efficiently
and amicably
3. Separates the people from the problem.
4. Be soft on the people, hard on the problem.
5. Proceed independent of trust
6. Focus on interests, not positions.
7. Explores interest.
8. Avoids having a bottom line
9. Invents options for mutual gain.
10. Insists on using objective criteria
11. Open to reason; yields to principle, not pressure.

13. 1. Preparation
2. Exchanging information
3. Evaluation
4. Negotiation for resolution
5. Reaching consensus
6. Close

14. ONE Preparation TWO Exchanging information
1. What is the main problem? 1. Participants meet to discover one
another.
2. How does it affect you?
2. Practise active listening.
3. How does the other party benefit
from it? 3. Avoid commitment.
4.What is the best you can hope 4. Establish close rapport.
for? o Identify interests and needs.
5. What is the worst? o Separate the people from the
6. What is your Best Alternative to a problem
Negotiated Agreement o Focus on interests not
(BATNA)? positions
7. What guidelines will help you 5. Observe carefully the body language
know you have achieved a fair of the other party and record his
outcome? activities.

15. THREE Evaluation FOUR Negotiation for
resolution
1. How did you do at the meeting?
2. Where did things go well, and 1. Negotiate the big picture first
why? 2. Cover all the issues under
3. Where did you have consideration.
problems, and why? 3. Shift from the general issues into
4. What would you do differently the specific ones.
next time? 4. Trade concessions.
5. Bargain value adds.

16. FIVE Reaching consensus SIX Close
1. Restate final conclusions. 1. Check that participants are happy.
2. Check that everyone has the 2. Shake hands or sign.
authority to agree the deal. 3. Keep promises
3. Check with each party
individually that they agree.

17. 1. Know well your objective.
2. Get prepared for the negotiation.
3. Invent options
4. Acknowledge your counterpart’s legitimate
needs.
5. Build a working relationship with him.
6. Keep your temper.
7. Show respect towards your negotiation
counterpart.
8. Step back from the situation for clear
perspective.