The programme will provide the participants with the necessary skills to help them negotiate effectively, and at the same time maintain good relationships with their counterparts.
By the end of the 2-hour workshop, participants will be able to:
Apply the necessary negotiation tactics depending on the situation
Adjust their behaviour and style depending on who they are negotiating with
Avoid errors and traps that lead to dead ends in negotiations
2. PwC
Agenda
Let’s get to know each other!
3Ps of negotiations: Prepare, Probe, Propose
The negotiation process
Your attitude to negotiation
1
2
3
4
PwC
Negotiation tactics
5
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There are many misconceptions around negotiations:
• It’s all about getting your own way
• It’s all about obtaining the cheapest deal
• It’s all about beating the other side
Many people see negotiations as a contest where there are winners and
losers. This can be counter-productive as it prevents everyone from achieving
the best possible deal because they end up opposed to each other.
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Let us never negotiate out of fear.
But let us never fear to negotiate
– John F. Kennedy
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Ideal, realistic and fall back positions
Best alternative to a negotiated agreement
(BATNA)
Information to obtain (got, need, nice)
Concessions – cost to us; value to them
Climate (place, time)
Conducting negotiations
Our Position
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Probing consists of 2 elements:
• Asking questions to understand at a deeper level
• Active listening
Conducting negotiations
18. Types of questions
Type Used when … Examples
Open questions
/statements
you want to open up a
conversation
Tell me more about ….
What happened next?
How did you respond?
Probing questions you want to find our
more
What were you thinking when ….?
Why do you think the other party
made this offer?
Closed questions you want to clarify
something
Did you agree?
Did you change the way you
behaved?
Conducting negotiations
20. •We open with our entry point. Where we are prepared to move to is our exit point.
•The distance between them is our negotiable range.
• The distance between our entry point and the other
party’s is the bargaining continuum.
• If our exit points overlap, we could settle anywhere
in the overlap. This is the settlement area, also
known as the Zone of Possible Agreement (ZOPA).
• If our exit points do not meet or overlap, we are unlikely to settle.
Bargaining continuum
22. Never give
concessions -
always trade in
Deadlines are
always negotiable
Stress the
advantages of
your offer
Don’t push too
hard
Make use of
silence
If you are selling, start high
then trade down, if you are
buying start low then trade up
Be realistic in your
expectations
When you’ve got an
agreement leave – do not
give time for second
thoughts!
Negotiation tactics
23. Don’t accept a
first offer
Leave the other side
feeling they’ve got as
good a deal as you
Proposals are
always conditional
Don’t change the
price, change the
package
Agreement is always reached
through trading
Focus on the
facts, not
personalities
There must be a right of
veto for true negotiating.
You can always walk away
and come back to it
Do not exaggerate
Negotiation tactics
24. Fragmenting Break the problems that prevent agreement into
smaller, more manageable issues
What if…? Try to suggest alternative options / solutions
By passing
Temporarily put aside an apparently intractable
issue – return to it when it seem more manageable
Concession and
trade
Never concede something without getting something
in return
Tactics to move things forward
25. To close effectively a negotiation you need to:
• Be open to closure from the very beginning of your negotiation
• Make it clear this is your final offer
• Present your offer in an upbeat confident manner
• Leave the other side some space to review your final offer
Principles of closing a negotiation
26. If they say ‘NO’ or haggle – move out
If they say ‘YES’ – put it in a written form which is:
• Brief
• Factual
• Concise
• Accurate
Principles of closing a negotiation
29. • Make sure your attitude is positive and your purpose is clear
• Believe that others have entered the negotiating process in good faith and by
behaving with integrity you set the standards for the negotiation that you wish
to maintain
• In order to achieve your aims you need to keep in mind what you want.
Specifically, during a negotiation you should be:
– Convinced of your own case: this gives you confidence in your dealings
– Clear about your goal
– Able to ‘walk away’
Your attitude to negotiation