acc europe 20th negotiation styles and techniques · negotiation styles and techniques: dealing...

ACC Europe 20th Annual Conference:

Negotiation Styles and Techniques Presented by Eric Evans

Eric Evans

Introduction to the session (10 minutes)

Introduction to the Exercise (5 minutes)

Planning Time (10 minutes)

The Negotiation (20 minutes)

Results (5 minutes)

De-Brief & Discussion (40 minutes)

Session Objectives:

“Negotiation is a key requirement

for survival, let alone success; this

interactive workshop is targeted at

the experienced negotiator, with the

intention to challenge and to build

upon our skills”

The intention is to cover:

• Positional v Collaborative

negotiation

• Planning and Preparation

• Key Skills

• Effective behaviours

• Roles, rules and tactics

Negotiation Styles and Techniques: Dealing With Confrontation and Avoiding Common Pitfalls

Session Structure

A simple game of cards

Instructions

You should be sitting at a table with a total of 10 people. Please organise yourselves into 4 teams of 2 or 3 people at each table.

Each team should have an envelope containing 12 or 13 playing cards. Some times will have 12 cards and some will have 13. This is your opening “hand”.

Introduction

The objective of this exercise is to make as much money as possible. You will do this by buying, selling or exchanging cards with the other teams until you have achieved your objective.

You should be aware that two random cards have been removed from the pack of cards.

Each team starts off with €500 which can be used to buy cards from other teams. Cards are worth whatever teams agree they are worth when negotiating to buy or sell

Scoring

A run of 12 cards in sequence from a low number to a high number, all of the same suit will earn your team €1,000.

A run of 12 cards in sequence from a low number to a high number, all of the same colour (that is hearts and diamonds, or spades and clubs) will earn your team €600

Four of a kind (that is three Kings or four 3’s etc) will earn your team €400

Three of a kind (that is four Kings or four 3’s etc) will earn your team €100

A 4 is a lucky card, and you score €50 for every 4 in you hand. (If you have some of the other point scoring combinations including a 4, then this is an additional score)

Rules

The exercise for the four teams at a table is over after 20 minutes or the minute any team at a table declares it has finished. Tables may therefore finish at different times.

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What makes a good negotiator?

Decide which of the following attributes from the list provided against each of the headings, makes for the “best” strategic negotiator. Select one

of the options for each question.

A. The Goal

1. Believes in winning at all costs

2. Believes the relationship is more important than winning

3. If, somewhere between 1. and 2. then use your own words to articulate the position the “best” negotiator might take.

4. Something else. Use your own words to describe the goal from a negotiation.

B. The Relationship

1. A constraint which prevents us from maximising our leverage

2. A means to an end

3. A by product of the negotiation

4. An asset

C. The Approach

1. Leverage is central to good negotiation practice

2. Compromise is essentially at the heart of negotiation

3. Everything is tradeable, and negotiation is about looking for trades

4. There is something else which works better. (Say what it is)

D. Taking Positions

1. It is important to take an extreme position so that you give yourself bargaining room

2. It is better to go in with an honest position rather than an exaggerated one

3. Taking positions in negotiation is less than optimum

4. It is more important to think through the opponent’s likely position

E. Pressure

1. The world is a high-pressure environment, and negotiators need to be able to apply pressure

2. Pressure is unpleasant and can damage a relationship

3. You cannot avoid putting pressure on people in negotiation

4. Something else

F. Planning

1. Successful negotiators spend longer planning for a negotiation than average negotiators

2. Successful negotiators typically spend the same amount of time planning as average negotiators

3. You can’t really plan a negotiation

4. Having a structure to use when planning for a negotiation is important

4

What is negotiation?

• Screw or be screwed?

• A battle of wills?

• Convincing the other guy it’s a good deal?

• Psychological warfare?

• Compromise?

• Being “fair”?

• Both sides getting a good deal?

• The application of power?

• Getting your own way?

• Trading concessions?

• Haggling?

• Genuine problem solving?

5

Is there a “right” stance?

6

Uncooperative Co-operative

Assertive

Unassertive

A

Avoiding

B

Benevolent

C

Compromising

D

Duelling

E

Engaging

Recognising the possible approaches

Win / Lose Psychological

Warfare

Win / Perceived

Win

Win / Win,

Principled or

AGILE

Trading Compromise Abdication

Features Demands

Power

Leverage

Control

Weaknesses

Empathy

Conditioning

Trading

Self focus

Genuine

interests &

Options

High gain /

Low cost

Fairness

Still friends

Naivety

Discomfort

The Goal Win at all costs Win with smart

moves

Win but other

also “feels”

good

A wise outcome To win by

swapping

To reach

agreement and

keep the

relationship

To avoid having

to negotiate

Relationships Of no

consequence

Something that

can be dealt

with separately

A means to an

end

Should be an

asset

Should be

maintained

The end not the

means

The end is not

important

View of

Pressure

Figures strongly

in the gameplan

Sources of

pressure are

key

To be expected

as conditioning

Pressure on the

problem, not the

people

Needed to

generate

movement

Unpleasant Unnecessary

Consequences Short term gain

only

Resentment at

games and

approach

May lead to loss

of credibility

Enhances

relationship

Moves into

games and

exaggeration

Encourages

opponent to dig

in

Lost

opportunities

Planning focus Power

leverage

Linkages

Persuasion

Tradeables

Common

ground

The AGILE

model

Creativity

Trade offs Own

weaknesses,

other’s

strengths

Skills required Insensitivity Strong

character

High order

interpersonal

skills

Strong planning

ethic

Empathy

Intellectual

maturity

Strategic

thinking

Understanding

of relative

values

None None

7

Win / Win is much misunderstood

8

Position Position COMPETITIVE

It is common for people to take positions

when negotiating, and this leads to a “game”

and reduces the chances of a real win / win.

Genuine

Interests

Genuine

Interests

COLLABORATIVE

For a true win / win, there is a need for an

understanding of each party’s genuine

interests.

Where this is accompanied by trust and a

willingness to look for creative solutions, there

is a much greater chance of win / win

Consider the example of:

• The two sisters and the orange

Neil Rackham research

Neil Rackham was the founder of the Huthwaite Research Group who have conducted significant research programmes into why some people are better than others in areas such as chairing meetings, negotiation, selling and presenting.

Rackham looked at two groups of negotiators (average and successful) and observed the differences between these two groups in terms of both planning and face to face behaviour.

Successful negotiators where described as successful on three criteria: They were widely regarded by their peers, colleagues and

opponents as being good negotiators;

They got better results in comparable situations than their colleagues in the average group

The deals stood the test of time 9

Planning

There are conflicting views on the significance of planning in negotiation.

Dr Brian Farrington – a Procurement Guru has suggested that for every hour you are to negotiate, you need to spend between 5 and 8 hours planning.

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Neil Rackham has looked at how successful negotiators differ from average negotiators and suggests that the difference is not how much time is spent, but how effectively the time is used. Which is right? Most negotiating practitioners would suggest that spending 1 day planning for a 1 hour negotiation is simply not possible, simply because of the day to day resource pressures we all face. However for complex negotiations Brian Farrington is almost certainly correct. Neil Rackham’s view is also likely to be correct in that no matter how much time you have available for negotiation planning, the key must be how effectively you use that time

The Neil Rackham view (supplemented by some additional research from others)

It is how you use time, not how much time which counts

Exploration of options is key

Common ground builds bridges

Long term perspective reduces tension

A range of objectives is preferable

Consider your BATNA and theirs

Playing devil’s advocate is critical

The Zone of Possible Agreement (ZOPA)

Linkages and tradeables

The opening you will go with

Listing key questions to ask

Immediate review of a completed negotiation

11 This is so important that we should look at each of these in more detail

Common ground and long term

perspective

12

Recipe for an argument Recipe for a good outcome

Two parties negotiating against each other across a table.

Two parties negotiating together to work out how best to resolve a problem

Exploration of options

The average negotiator identifies 2.6 possible solutions for each negotiable issue.

The successful negotiator considers twice as many options in the planning stage

If the first 2.6 options are not acceptable to the opponent, the negotiation is unresolved, but the successful negotiator has more chance of reaching agreement

What does this mean for you? Most negotiators identify 1 or 2 possible

solutions to any issue which is to be discussed, but the most successful guys spend a lot longer working through possible options.

Lancashire Co-Op buyers have identified 120 possible concessions they could ask suppliers for. This means that if they can’t reach agreement through one particular route, they can use 119 possible alternatives to get agreement, some of which may be lost cost trade-ables for the supplier

How good are you at creating possible options in the planning stage.

13

Common ground and long term

perspective

1. A successful negotiator puts time into building up the common ground, time into painting a long term view and actually plays down the problem. The focus is on this is not a big problem if viewed in the right perspective

2. An average negotiator invest less time in common ground and the long term view and consequently the problem is much more clearly identified from each party’s perspective as a big issue

What does this mean for you? When planning a negotiation it makes

sense to consider building bridges of agreement and framing the negotiation in the longer term

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Negotiation with common ground and long term perspective

No common ground or long term perspective

Common ground Long term view

The problem

The problem

Typical Planning Template

Issues MDO Source of

Legitimacy

LAA Their

Opening

Their Likely

LAA

Compelling

reason for

them to

move?

Our

opening on

this issue

Actions to

strengthen

our

position

Step in rights

Liability for

Reputational

Damage

Termination

for

Convenience

Innovation

Fund

In addition to completing this analysis by issue, it is also important to have a BATNA (Best

Alternative to a Negotiated Agreement)

Research findings on why negotiations

fail

Questions

The quantity or quality of questions is inadequate to give the negotiator information, understanding, time to think or control

Listening

The negotiator hears what we wants to hear or what he expects to hear rather than what is actually said, or the way it is said, or the message behind what is said

Answers

The negotiator answers a question without considering the implications of giving the answer

Talk too much

Information is gratuitously given away, or a position is unnecessarily conceded

Words

Words are used without consideration. (Words need to be chosen for their impact, not their meaning)

Looking

The negotiator misses non-verbal signals

16

More failure findings

Easily satisfied

The negotiator finds a solution and then stops rather than searches for others, or considers those put forward by the opponent

Assumptions

The negotiator makes assumptions without testing them at an early stage of the negotiation

Like to be liked

We do not wish to cause offence or embarrassment and therefore we do not take an aspirational position, or we concede too easily or too quickly, or we go are too oblique in asking for concessions

Predictability

We stick with one approach to negotiation to the point where we are predictable, and therefore easy to deal with

Emotion

We allow our emotions to control us instead of using appropriate emotions to influence an outcome

Attention Span

The average attention span is 20 minutes after which we miss opportunities 17

Team failings

Lack of a conduit Team members interrupt each other and vie for air

time, often resulting in the wrong person answering a question, or two different answers being given to the same question

Goldfish Team members sit there without contributing and there

is a risk that if drawn into the negotiation, they will not be able to add value. Please note that this is not the same as deliberately sitting there and not actively taking part (which could be a valid strategy)

Drifting In spite of the existence of an agenda and a team plan,

the discussion is allowed to drift as personal hobby horses are let loose

Jaw Jealousy One or more team members feel the need to dominate

the conversation

Hospital Passes A question is passed to a team mate who is

unprepared to deal with it

Group Think The team make it clear that they do not have a position

on a particular issue, or an answer to a particular question

Style and Substance Clash There is an apparent tension between members of the

team

18

What makes a good negotiator?

Suggested answers

A. The Goal

1. Believes in winning at all costs

2. Believes the relationship is more important than winning

3. If, somewhere between 1. and 2. then use your own words to articulate the position the “best” negotiator might take.

4. Something else. Use your own words to describe the goal from a negotiation. – Believes in a wise outcome

B. The Relationship

1. A constraint which prevents us from maximising our leverage

2. A means to an end

3. A by product of the negotiation

4. An asset

C. The Approach

1. Leverage is central to good negotiation practice

2. Compromise is essentially at the heart of negotiation

3. Everything is tradeable, and negotiation is about looking for trades

4. There is something else which works better. (Say what it is) - Empathy

D. Taking Positions

1. It is important to take an extreme position so that you give yourself bargaining room

2. It is better to go in with an honest position rather than an exaggerated one

3. Taking positions in negotiation is less than optimum

4. It is more important to think through the opponent’s likely position

E. Pressure

1. The world is a high-pressure environment, and negotiators need to be able to apply pressure

2. Pressure is unpleasant and can damage a relationship

3. You cannot avoid putting pressure on people in negotiation

4. Something else. Successful negotiators are hard on the problem and soft on the people

F. Planning

1. Successful negotiators spend longer planning for a negotiation than average negotiators

2. Successful negotiators typically spend the same amount of time planning as average negotiators

3. You can’t really plan a negotiation

4. Having a structure to use when planning for a negotiation is important

19

The Negotiation Profile

A self assessment tool designed to help you

understand your negotiating strengths and your

development opportunities

The software is available on request by sending an

email to [email protected] with “Negotiation Profile”

in the heading

mailto:[email protected]

Instructions

You will receive a MS Excel spreadsheet. The

document contains descriptions of key negotiation

elements against four different levels of competence -

accomplished (4), practitioner (3), aware (2) and

innocent (1).

Enter the number which is closest to how you regard

yourself against each element into the spreadsheet.

A chart such as those shown on the next four slides will

then be produced automatically. This is your

negotiation profile and should help you to identify the

broad areas where improvement is possible and

desirable.

21

Negotiation profile: example 1

22

0

0.5

1

1.5

2

2.5

3

3.5

4

BATNA

InterestsOptions

Legitimacy

Relationship

Communications

Commitment

Vivid opening

Common purpose

Agenda

Question cycle

Testing understanding

Summaries

Conducive openingEmotional control

Suitable language

SensitivityReceptivity

Use of body language

Feelings commentary

Focus

Creativity

Persuasion

Pow er

Conditioning

Use of time

Mindset

Understanding

BehaviourStrategy Planning

Control

Relationship

Achievement

Approach


0

0.5

1

1.5

2

2.5

3

3.5

4

BATNA

InterestsOptions

Legitimacy

Relationship

Communications

Commitment

Vivid opening

Common purpose

Agenda

Question cycle


Summaries


Suitable language



Feelings commentary

Focus

Creativity

Persuasion

Pow er

Conditioning

Use of time

Mindset

Understanding

BehaviourStrategy

Planning

Control

Relationship

Achievement

Approach

23


0

0.5

1

1.5

2

2.5

3

3.5

4

BATNA

InterestsOptions

Legitimacy

Relationship

Communications

Commitment

Vivid opening

Common purpose

Agenda

Question cycle


Summaries


Suitable language



Feelings commentary

Focus

Creativity

Persuasion

Pow er

Conditioning

Use of time

Mindset

Understanding

BehaviourStrategy

Planning

Control

Relationship

Achievement

Approach

24


0

0.5

1

1.5

2

2.5

3

3.5

4

BATNA

InterestsOptions

Legitimacy

Relationship

Communications

Commitment

Vivid opening

Common purpose

Agenda

Question cycle


Summaries


Suitable language



Feelings commentary

Focus

Creativity

Persuasion

Pow er

Conditioning

Use of time

Mindset

Understanding

BehaviourStrategy

Planning

Control

Relationship

Achievement

Approach

25

Reading list

The ability to negotiate is a critical skill in business and our personal lives. For those who wish to negotiate professionally and capably there is a need to take the subject seriously. This list of books referred to throughout the text is intended to assist the reader to continue to develop the skills of negotiation.

Getting to Yes Fisher & Ury Arrow Books

Getting Past No William Ury Business Books

The Power of a Positive No William Ury Hodder & Stoughton

Getting Ready to Negotiate Fisher & Ertel Penguin (Not available in the UK)

The First Move: A negotiator’s companion Lempereur & Colson Wiley

Negotiating Globally Jeanne M Brett Jossey Bass

The Mind and Heart of the Negotiator Leigh Thompson prentice Hall

Negotiating Rationally Bazerman & Neale MacMillan

Face to Face Skills Peter Honey Gower

The Expression of Emotion in Animals and Man Charles Darwin

The Psychology of Interpersonal Behaviour Michael Argyle

Body Language Alan Pease Sheldon Press

The Art & Science of Negotiation Howard Raiffa Harvard University Press

When Cultures Collide Richard D Lewis Nicholas Brealey International

Negotiation Genius Malhotra & Bazerman Harvard Business School

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acc europe 20th negotiation styles and techniques · negotiation styles and techniques: dealing...

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