a 2 day negotiation skills program for Sourcing teams and everybody who negotiates

1. Power NegotiatorYou don’t get what you deserve, you get what you negotiate designed for Everybody who needs to negotiate By Direction One Consulting

2. Objective of the Program To understand various negotiation tactics and counter-tactics. To evolve a philosophy of negotiations for Mahindra 2w sourcing department. To understand and practice a structured way of negotiating. All the above leading to higher productivity Direction One Consulting

3. The POWER Negotiating Process Working with effective arguments and tradeoffs Reaching and documenting agreements on a win-win note Effecting compromises Open your positions Prepare Direction One Consulting

4. How to prepare for a Negotiation? Have three different positions planned: Your opening position. Your ideal position. Your walk – away position. Add more variables. Estimate cost and value – low cost to you and high value to the other party. Practice to assertively justify your needs and wants Direction One Consulting

5. How to decide an opening position? Costs. Profits. What the market can bear. Equal consumer and producer surplus. Direction One Consulting

6. What variables can I add to my negotiation? Volumes. Price. Payment terms. References, letters of recommendations. Mould costs. Machinery. Financial assistance. Training. Direction One Consulting

7. Tactics and Counter-tactics Tactic = ask for more Counter-tactic = Swing an equal step to the other side of your ideal position. Direction One Consulting

8. Tactics and Counter-tactics Tactic = Make a ridiculous first offer. Counter-tactic = Respond with an equally ridiculous counter offer Direction One Consulting

9. Tactics and Counter-tactics Tactic = Higher authority. Counter-tactic = Respond with a higher authority of your own. Direction One Consulting

10. Tactics and Counter-tactics Tactic = Good cop, bad cop. Counter-tactic: Point out the tactic. Introduce a bad cop of your own – real or imaginary Direction One Consulting

11. Tactics and Counter-tactics Tactic = personal attack. Counter-tactic: Point out the tactic. Agree with the feeling, not with the statement. Agree with the statement in general, while excluding yourself from it. Direction One Consulting

12. Tactics and Counter-tactics Tactic = Reluctant seller or buyer. Counter-tactic = Do the same Direction One Consulting

13. Tactics and Counter-tactics Tactic = Constant grinding, asking for more and more. Counter-tactic: Trade off, ask for something in return for everything you give. Start tapering the discounts. Direction One Consulting

14. Tactics and Counter-tactics Tactic = Getting stuck on a particular position. Counter-tactic = Park the point for the time-being, agree to come back to the point after other issues are sorted out. Change the people involved. Direction One Consulting

15. Tactics and Counter-tactics Tactic = low budget. Counter-tactic: Find out budget. Explain value. Talk to someone of higher authority. Scale down the specs to match the budget. Adjust on some other variable like volume or payment terms. Share costs to reduce eg transport. Direction One Consulting

16. Tactics and Counter-tactics Tactic = Competitive comparison. Counter-tactic: Politely ask for proof. Ensure it is an apple to apple comparison. Add variables, reduce the benchmarks of comparison. Trade offs and taper discounts. Direction One Consulting

17. Tactics and Counter-tactics Tactic = I am your best friend. Counter-tactic: So am I, but I am also answerable to my seniors. Probe and be on guard. Direction One Consulting

18. Tactics and Counter-tactics Tactic = discount first, then large order. Counter-tactic: Offer staggered discounts. Direction One Consulting

19. Tactics and Counter-tactics Tactic = slow player. Counter-tactic: Make yourself unavailable for some time. Test with a tentative close. Direction One Consulting

20. Evolving a philosophy of negotiations Think of the best negotiating situation that you were a part of. Think of the worst. What kind of behaviours……… What kind of feelings………. Lets evolve a philosophy of negotiating for Mahindra 2 Wheelers Sourcing department Direction One Consulting

21. Win win is…. You do business, not because you have no other choice, but because you want to. You want to maintain the relationship, even though you have no need to. And both the above points are still true even when both parties know everything about each other. Direction One Consulting

22. The POWER Negotiating Process Working with effective arguments and tradeoffs Reaching and documenting agreements on a win-win note Effecting compromises Open your positions Prepare Direction One Consulting

24. Costs Rs 90

25. Calculate impact on profits if:

26. Sales increase by 10%.

27. Costs reduce by 10%.Direction One Consulting

29. Calculate impact on profits if:

30. payment terms agreed for 30 extra days.Direction One Consulting

31. 7 steps to action! 1. Visualize what you want in personal and professional life. 2. Select one activity – implement the 21 day rule. 3. Be like the deer in commitment. 4. Announce your action plan to all. 5. Use the help of other people - appoint a buddy/ nagger. 6. Write it down, send to buddy / nagger. 7. Discuss with manager. Direction One Consulting

32. Maneesh Konkar Email: maneesh@directiononeonline.com Web:www.directiononeonline.com Facebook: http://www.facebook.com/pages/Young-Leaders-at-Every-Level/189572801069334?v=wall Tel: +91 – 98205 03710 Direction One Consulting