negotiating for win-win results€¦ · web view · 2014-05-19use the steps and information on....

NEGOTIATING FOR WIN-WIN RESULTS

Use the steps and information on Negotiating for Win-Win Results to help you defend and justify your budget submission. You will truly benefit if you approach the negotiation with a win-win attitude where both parties -- in this case you/your operation and your Supervisor/Department -- get some of what each needs and neither feels they have lost. All parties feel good about the outcome and are committed to working together. This feeling ensures a successful long-term relationship.

Think about it – you are always negotiating. You are continually interacting and trying to achieve agreement with others who have different wants, needs, plans, goals or opinions about a situation.

Some Managers may feel it is not their job to negotiate, but rather that “negotiating” is the job solely of the procurement or contracting office. But in fact, you are constantly negotiating or influencing people and their decisions, and hopefully striving to find win-win outcomes.

So, whether you are negotiating for a workable solution to your budget, or to attend an annual training conference, or something in your personal life, like getting your kids to do their chores, the information and steps presented here will help you prepare for negotiating.

The embedded file below called, Sample Negotiations Worksheet presents a completed sample Budget Negotiation Worksheet. For those of you already familiar with the processes of negotiation, this may serve as a good prompt for how you can prepare to negotiate your budget.

To see a blank Budget Negotiation Worksheet, click below on the embedded document called, Blank Negotiations Worksheet.

NAF BUDGET PLANNING of 19 NEGOTIATING FOR WIN-WIN RESULTS

FOUR STAGES OF NEGOTIATING

The steps of negotiating (or influencing people) and creating win-win results are broken into the following four stages:

Prepare

• Assess your objectives.

• Plan your approach and strategy to achieve your objectives.

NOTE: Preparation is the most critical stage, yet it is often overlooked. At least 50% of the results of your negotiations are realized before you meet the other party.

Discuss

• Set the climate for the negotiation.

• Confirm both parties' objectives and feelings about the situation.

• Review background information and settle any differences in fact.

Propose

• Specify, in detail, issues you want to resolve.

• Link issues to the other party’s objectives.

Bargain

• Negotiate the issue by asking for what you want.

• Don’t make concessions without getting something in return.

• Summarize key points to confirm understanding.

• Get the agreement in writing.

The following steps will show you how to accomplish each of these stages in order to achieve win-win results.


PREPARE STAGE (STEPS 1 – 12)

Step 1 Write a brief note/outline describing the issue you must influence, affect with your power, or negotiate. (What is it you want or need? What is desired? What would be the best possible outcome or result?)

Step 2 Use the table below to decide whether to use “influence”, “power” or “negotiation”.

IF THE ISSUE IS: THEN:

• A touchy subject.

• One for which you need buy-in from colleagues/peers, your boss or others.

• One for which you want to use a more indirect method to get what you want.

• One for which you are flexible in your final position.

• One for which you want commitment to implement the decision.

Use Influence.

1. Lobby others to get their buy-in before approaching the one you want to influence.

-OR-

2. Network to get someone else to approach the one you want to influence.

3. You are finished. Stop here.

• One for which a decision is already made.

• An emergency situation.

• One for which you are NOT flexible in your final position.

• One for which you are NOT concerned about maintaining a relationship with the other party.

Use Power.

1. Use your position power to direct what actions you want.

-OR-

2. Use personal power from your expertise, (i.e., who you know or your ability to get things done) to get what you want/need.

3. You are finished. Stop here.

• One over which you do NOT have influence or power.

• One for which you CANNOT make a quick final decision.

Use Negotiation.

1. Continue with Step 3.


• One for which you need to maintain an ongoing relationship.


Step 3 Identify and record your issues and wants.

Make a copy of the blank Prepare for Negotiations Worksheet found at the end of this task.

Fill out the blanks at the bottom of page one labeled “background” to include:

• The negotiation issue. (What is it you want/need?)

• With whom you will be negotiating.

• When and where you will conduct the negotiation.

NOTE: Although there may be many issues/wants to deal with, successful negotiators usually limit their focus to no more than four issues. One will be the main issue – the others secondary.

Remember that everything is negotiable. Someone set the prices and terms. So unless law or policy prohibits it, assume you can ask for a better deal.

For example, what issues/wants would be important to you in a negotiation with a cleaning company?

• What do you want?• What would you like/wish to get?• Where are you flexible?

Your issues/wants might include:

• Pay/cost. • Equipment/supplies.• Times. • Cleaner facility.

(Your organization may or may not get involved with cleaning or maintenance companies. We chose this as a simple subject to demonstrate the negotiation processes. People negotiate time off, training, work schedules, instructor’s fees, goals and objectives, etc.)


Step 4 Record your issues/wants on page 2 of the worksheet.

Determine your specific wants for the key issues.

Identify specific standards for each want.

• How much do you want?

• How often do you want it?

• When do you want it?

• How well do you want it done?

Examples:

ISSUES: WANTS:

• Pay/cost. $100.

• Equipment/supplies. Company provides all equipment and uses supplies from our approved list.

• Times. Completed by 1000 every work day.

• Cleaner facility. All carpeting vacuumed daily.


Step 5 Repeat Steps 3 and 4 to identify the other party’s issues and wants.

Try to predict the other party’s issues and what his specific wantsmight be.

Record your predictions on the worksheet.

NOTE: You probably don’t “know” their wants but you do need to “anticipate” what they want. The better you can do this, the better chance you have of achieving a win-win agreement and not being blind-sided during the negotiation.

For example, you will use Steps 3 and 4 to identify:

What information you don’t have.

What you must get.

Items on which you are willing to be flexible.

Your answers to the other party's “likely” response to each of

your issues.

Your bargaining chips – those things that are unimportant to

you and easy for you to give; but may have value to them.

Your strategy – the order in which you will tackle issues.

Examples of the other party’s issues and specific wants:

The cleaning company wants your business.

Pay/cost – Your position $100. You think they want $125.

Equipment/supplies – Your position is the company will provide all equipment and use supplies from our approved list. They probably want us to provide the supplies.

Times – You want it completed by 1000. They will want all day to finish the cleaning.

Cleaner facility – all carpeting vacuumed daily. They will want to vacuum weekly and spot clean daily.


Step 6 Determine how important/critical each of the issues/wants are to both parties.

Estimate how important/critical each want is to you.

Estimate how important/critical each want is to them.

Place a check () mark in the spaces provided next to each item that is important/critical to you and adjacent to each item you believe is important to them.

NOTE: You need to do this for several reasons. Issues that are important to them, but not to you, become your bargaining chips.

Also, knowing the importance of the issues/wants helps you identify your “must gets” and develop your strategy for addressing them.

Step 7 Identify what you don't know about this situation.

Record, on page 2 of the worksheet, what you don't know about this issue and where/how you'll find the information.



NOTE: Don't you wish you knew everything for the negotiation situation? Well, you probably never will – otherwise, it probably wouldn't be a negotiation.

However, there is a lot of information available from many potential sources.

If you take the time to find and review the available information, you will be better prepared and less easily surprised during the negotiation.

For example, in the cleaning scenario, don't you wish you knew what others were paying their cleaning companies?

Well, you could find out by:

Calling other businesses that have done work with this cleaning company.

Asking other cleaning companies in the area what services they offer and what they charge for similar services.

Step 8 Identify what you must get from the negotiation – your bottom line.

Record your must gets on page 2 of the worksheet.

NOTE: Your "must get" is what you want to gain from this negotiation for you to consider the outcome a win to you, your Program, etc. But, for it to be a win-win situation, the other party also needs to get his "must gets".

You should describe your "must get" as a range of values, benefits, and savings, rather than limiting yourself to a single item or number.

Examples:

• At least a 5 % increase.

• The contract for their business.

• Different dates or hours.

• A raise, free meals, or a bonus.

Step 9 Identify the wants on which you are flexible in the negotiation.

On the blank Prepare for Negotiation Work Sheet, record the wants on which you are flexible.

NOTE: Your flexible wants are those that you identified as NOT important when you were completing the worksheet. You can concede these and show how cooperative you are. Then, the other party may feel like he needs to give you something.

Step 10 Identify which wants are your bargaining chips in the negotiation.

Record your bargaining chips on the Prepare for Negotiation Worksheet.

NOTE: Your bargaining chips are those flexible wants that you identified as NOT important to you, but have value to the other party. You can offer these to persuade the other party to give you something you want if there is a difference between what you each want.


Step 11 Develop your negotiation strategy to determine the wants or issues to address and in what order.

Look at your wants and the importance of each that you recorded on the Prepare for Negotiations Worksheet.

Prioritize and record your wants/issues using the table below.

IF YOUR RATING IS:

AND THEIR RATING IS: POSSIBLE STRATEGY:

Not important. Important.

1. Address this first. Since this of low importance to you, you can concede and show how cooperative you are. This is one of your bargaining chips.

2. You can also use this to bargain for what you want later on.

Important. Important.

1. Address this second. You’ve already made concessions. The other party will feel it’s his turn. If what you both want is similar, you should be able to reach agreement.

2. If there is a difference, use additional bargaining chips.

3. Keep in mind your “must gets.”

Important. Not important.Address this next. This is relatively unimportant to the other party. You should be able to get quick concession.

Not important. Not important. This is a minor issue – deal with it last.


Step 12 Summarize your negotiation plan.

Jot down some notes and/or memorize the following:

• Your opening position.

• What information you don’t have and how you can get it.

• Your must gets. (Memorize them.)

• The items, points, details, etc., on which you are willing to be flexible.

• Your bargaining chips – those things that are unimportant and easy for you to give, but that would be of value to the other party.

• Your strategy – the order in which you will tackle issues/wants.


NOTE: • Remember, your must gets are those issues/wants from which you will not move. They represent the bottom line – memorize them.

• Keep your bargaining chips in mind and use them to get other things you want.

• About your plan: Keep It Super Simple (KISS). The more complicated it is, the more likely it is that it won’t work!

DISCUSSION STAGE (STEP 13)

Step 13 Begin the negotiation.

OPEN the negotiation. This is an opportunity to establish the climate for a win-win agreement. As in any conversation, begin by establishing rapport and making small talk. Once you are comfortable, it is time to move on.

First, set the context by explaining/discussing the following:

• What happened last time, if applicable.

• What the issues are for this session.

• Say something like:

“Here’s the situation …”

“Here are the issues …”

“As I see it, these are the issues …”

End by saying what you want – your opening position.

NOTE: You should open realistically, although at a point somewhat higher than where you are willing to settle. If you open too high, you may get instant rejection; open too low and you don’t have any room to maneuver.

EXPLORE their issues, wants and concerns. Apply active listening skills.

Listen carefully.

Question and clarify (if necessary).

Paraphrase to ensure you understand and give the other person a chance to correct any misunderstandings.

Don’t interrupt.

Don’t argue.


Step 13 SIGNAL when ready to make proposals.(cont.)

NOTE: After you confirm you both understand the issues, wants and concerns, you are ready to move to the proposing stage of negotiating.

If they don’t signal that they are ready to propose, you need to signal that you are ready to move the negotiation to the next step. In other words, don’t wait. Once the discussion phase seems to be wrapping up, get on with it. Don’t wait for a signal that’s slow to appear.

Examples:

“As things stand, …”

“It seems that we have some differences.”

“It sounds like we can reach agreement.”

“I think I understand your position.”

Any kind of negative response to your signal says that your counterpart is not yet ready to move.

Sometimes there are strong signals, like:

“Never!”

“No way!”

“Impossible.”

Sometimes they are weaker, like:

“Well, I just don’t think so.”

“That’s not quite what I had in mind.”

When you hear these words, clarify what the objection is, and continue your discussion until you get movement signals. There’s no point in continuing to make proposals when your counterpart isn’t ready – it just tips your hand unnecessarily.


PROPOSE STAGE (STEP 14)

Step 14 Make tentative proposals.

Begin by saying what you want – your opening position. You should open realistically, although at a point higher than where you are willing to settle. If you open too high, you may get instant rejection. If you open too low, you don’t have any room to maneuver.

Don’t make any concessions in your opening position.

Don’t let the other party know your position/strategy.

NOTE: Any time you make a proposal, remember this:

Offer what’s easy for you

– BUT–

Valuable to the other person.

Another way to say the same thing: offer the other person something that’s not real important to you, or that you’re willing to give up, in order to get something that you want. (Your bargaining chips or flexible issues.)

Think of tentative proposals as testing the water.

Examples:

“What would you say to this …?”

“How about this …?”

“What if …, then would you …?”

“If I were to …, would that be a good deal?”

“If you would …, I would consider …”

“If you would, then I might …”

“If you could, then maybe I could …”


Step 14 Listen to their opening position and all of their demands.(cont.)

Never accept or reject a first offer.

Remain neutral and do NOT react to their opening.

Probe to get their entire list of wants.

Confirm areas of agreement.

Give reasons why you can or can't do something or why you need something.

Look for creative solutions to move towards agreement.

Identify areas of significant differences.

NOTE: In this stage you are making tentative proposals and counterproposals. You are looping back and forth between discussing and proposing, as new proposals require further exploration. At some point in the negotiation, you and your counterpart will most likely reach a tentative agreement.

This tentative agreement is the cue to begin bargaining. As you begin the bargaining phase, expect negotiations to slip back and forth among discussing, proposing, and counter-proposing – that’s part of the game.


BARGAINING STAGE (STEPS 15 AND 16)

Step 15 Trade proposals (bargain) until you reach agreement.

Trade.

Don’t dig your heels in – be flexible and remember to begin using your bargaining chips.

Make trades and offer alternatives.

Always state your conditions before you state what you’ll do (e.g., “If you’ll do this, then I’ll do that.”).

Use bargaining chips to get what you want.

Work together to solve problems, to reach agreement and to get closure. If you are patient you'll usually get a better deal.

Close. As you close, remember to:

Anticipate any last minute concessions or requests.

Summarize the results of your agreement as a win-win to ensure mutual agreement.

Agree. Your negotiation is not finished until you both agree to what you've agreed. The steps are simple, but important:

Write down what was agreed.

Prepare an action plan: Who does what by when, if needed.

Beware of assumptions. Clarify anything that is still unclear. Be sure both of you understand who does what by when.


Step 15(cont.)

NOTE: Any time you bargain, remember this:

Your bargaining goal is to move closer to, and achieve agreement. The process by which you get agreement during bargaining is trading and countering.

In a nutshell, that is:

Stating firm conditions and firm offers.

Good trading involves giving things that cost you little, but which the other person values. Sound familiar? It should. It’s the same technique you used when you made tentative proposals.

By now you’re old friends with the trading key:

ALWAYS state your conditions BEFORE

you state what you’ll do.

Examples:

“If you do this …, then I’ll do that.”

“If you do this …, and this …, and this …, then I’ll do …”

You want the other party to feel good about this negotiation. So don't make him feel bad by telling him that he didn't do very well, which is what you're saying if you tell how much more you would have given up.

Never tell the other person how muchfurther you would have gone.


Step 16 Start over when you seemingly can’t arrive at a win-win outcome. (Win-lose and lose-win are NOT desirable outcomes!)

You can start over by:

• Re-negotiating. (Repeat the steps in this task.)

• Accepting where you are / what you have and doing without something you want.

• Negotiating with someone else if that person is in a position to negotiate.


IF THE: THEN:

Negotiation worked.

• Great!

• Thank the other person.

• Get the agreements in writing.

Negotiation DIDN’T work.

• Walk away!

• Re-evaluate your position.

• Perhaps, agree to meet again.

negotiating for win-win results€¦ · web view · 2014-05-19use the steps and information on....

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