1 beyond dealmaking five steps to negotiating profitable relationships dr. melanie billings-yun

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Beyond Dealmaking

Five Steps to Negotiating Profitable Relationships

Dr. Melanie Billings-Yun

Copyright © 2012 by Melanie Billings-Yun.

What is Negotiation?1. A game or trial with

a winner and loser? 2. A test or battle?3. Something we do

nearly every day, to resolve issues so that we can live and work beneficially with one another.

Slide 2

You

Boss

Partners

Vendors

Staff

Clients

Family

Copyright © 2012 by Melanie Billings-Yun. Slide 3

Why Collaborative Negotiation?

Helps you create value Emphasizes long-term interests Doesn’t create sense of defeat / backlash Goal is results, not promises

Psychologists have found that people assume almost no responsibility for promises they feel they were forced to make and reduced responsibility when they don’t understand the reason.


Core Components of Collaborative Negotiation

Decides issues onReason and

Fairness

Focuses onINTERESTSof all parties

Seeks SOLUTIONS

not victory

Slide 4


Even Monkeys Demand Fairness


Positional Styles

Forcing/Appeasing

Withdrawing

Splitting

“Win”-Lose

Lose-Lose


Problem-Solving

Leads to an optimal outcome Meets interests of both parties Seeks to enlarge value Is justifiable, therefore sustainable Builds relationships

Takes time, patience, open mind, creativity


Goals What do I / they want to achieve or avoid?

ArgumentsWhat legitimate reasons support my chosen route?

SubstitutesWhere else can I go to achieve my goals?

Persuasion Why would they take this route?

How can I best reach my goals by working with the other side?Routes

Information

what information do I or they

need?

Questionswhat

questions should I ask?

The GRASP Negotiation Method


G: Determine Your Goals

What you want to Achieve Separate from positions by asking

“Why?” Think broadly, beyond immediate issue Consider long- and short-term goals Prioritize by importance

What you want to Avoid Risk factors Relationship considerations


Balance Against Their Goals

Learn all you can about other side Who are the relevant parties? What is their current situation? What are the external pressures on

them? Put yourself in their shoes

What do they want (value)? What are they afraid of (risk)? Think broadly


Three Types of Goals

Shared—Why we’re talking

Conflicting—Why we’re negotiating

Different—The trading zone

Slide 11


R: Consider All Possible Routes How could you reach both sides goals? Which is your preferred route? What trade-offs could enlarge the pie? Plan fallback routes

The Anchor:

In price negotiation, start as high as you can justifiably go.

In influencing action, start at high but comfortable level, then build up collaboratively.


A: Develop Legitimate Arguments

Valid, documented reasons for each position

Benchmarks

ConsistencyQuality

TimeCost

Market price

Fairness


S: Consider All Parties’ Substitutes

What other ways can you satisfy your goals?

Establish your Walk-Away Line Build your WAL as high as possible Make sure it is firm (NO bluffing!) No deal if they can’t top your WAL

Consider their probable WAL Do your homework Both company and individual


P: Persuasion focuses on Them

Speak to be understood Address their interests while sharing yours Say it in the way they will hear it best Give them time to think and reply

Listen to understand Ask questions to clarify Listen actively and patiently Respond to what they say

Separate the people from the problem Don’t attack or argue Hold firm to legitimacy and fairness Use positive language


Four Persuasion Techniques

Logic Show how this would meet their objectives

Connection Highlight shared goals/ values/ constraints

Reciprocity Trade off between different goals

Ask them for problem-solving ideas “How could we make it this work?”

Slide 17


Review: 5 Steps

Goals

Routes

Arguments

Substitutes

Persuasion

1 beyond dealmaking five steps to negotiating profitable relationships dr. melanie billings-yun

Documents

melanie billingsyun

creativity copyright

price negotiation

sides goals

legitimate argumentsvalid

legitimate arguments

chosen route

preferred route