negotiation seminar farzin fardiss autumn 1394€¦ · • issues or domains which are common and...

[email protected]@gmail.com

Negotiation Principles, Techniques, and Skills

Farzin [email protected]

Managing Director and Member of BoardPars Telecom Systems Group (Pars Saman)


Negotiation

A

Outline of the remaining sessions

What is Negotiation? & Why it is important?Negotiation PrinciplesNegotiation TacticsGood / Bad NegotiatorCommunication Skills required for Neg.Planning for NegotiationInfluence PrinciplesPersonality Types for Negotiation

What is Negotiation?

“The process by which we search for the terms to obtain whatwe want from somebody who wants something from us”“Negotiation is an explicit voluntary traded exchange betweenpeople who want something from each other”“To negotiate is to trade something we have for something wewant”


“A decision making process by which two or more people come to agreement onhow to allocate scarce resources”

“Mutual discussions for the purpose of arriving at the terms of a transaction oragreement”



“Negotiating is the art of reaching anagreement by resolving differencesthrough creativity”

“Interaction that occurs when two ormore parties attempt to agree on amutually acceptable outcome in asituation where their preferences foroutcomes are negatively related”


“Negotiating is the art of creatinga bigger solution. Negotiating isnot the art of taking advantageof others.”


“Use of information and power to affect the other party’sbehavior within a web of tension”“Coordinating preferences to ensure mutually acceptable gains”


شود مي اطالق ستدي و داد جريان به مذاكره جريان در و نبوده معين پيش از آن شرايط كه

.شود مي تعيين گفتگو نفر چند يا دو آن طي كه است فرآيندي مذاكره

در توافق براي متقابل وابستگي اساس بر مي گفتگو به خود هاي داشته مبادله با رابطه

.پردازند بين منافع تضاد مساله حل فرآيند مذاكره بده و گفتگو طريق از مختلف هاي طرف .است بستان


Two Kinds of Outcomes

Tangible– Price, delivery, quality, guarantees

Intangible– Making the other person happy– “Winning”– Being fair– Preserving your reputation/Integrity

What you are looking for in business negotiation?

Getting what you wantBuilding a long lasting relationLetting both parties leave negotiation session happily

– History will fight you– كارشكني در اجراي توافقات

Other Party shall have a good feeling about the process.– Your servant will not be satisfied with a one shot 300K Negotiaton

Negotiation Myths

Successful Negotiators are born soSuccessful Negotiator do not prepare themselves in advanceGood Negotiators take uncalculated risks Good Negotiators rely only on intuition

How can we find we are negotiating? (when?)

Existence of – Multiple Parties

• At least two parties (sides)

– Interdependency (Conflict of Interests)• Different interests and needs in some issues or domains

– Mutual Goals• Issues or domains which are common and accepted by both parties• Both sides want a settlement.

– Flexibility• Flexible items such as time, price, condition

– Decision Making Ability• Cooperation whilst Conflict


How can we find we are negotiating? (when?)

Every Negotiation has two parties involvedThere is a conflict of interest between involved partiesBoth sides have chosen negotiation as a solution to existing perception of conflictNegotiation is a goal-seeking process

– Goal seeking is as important as processBoth sides understand that they are engaged in a give and take (compromise)

Negotiation is just an important part of daily life!

Daily bargains (purchases)Specific purchases ( Auto, home, … )Inter Organization and Inter groupconflictsMarriageJob Negotiations (Salary, WorkCondition, …)Next events planning (Trip, Vacation,…)

What negotiation is not?

Negotiation is not a fightNegotiation is not arguing on a topicNegotiations is not the last solution

– When you start the negotiation late, you are dictated– Iran & USA Negotiations– North Korea & USA Negotiations– Parking in the Apartment

Negotiation is a not an euphemism for cunning– Yelling at the manger for the salary; “ you have disturbed my rights”

Negotiation is not a “winner take it all” game

What negotiation is not?

Negotiation is not a contest– Different from the sport, it may have different gold medals


Why is negotiation important?

One of the most effective tools for – Business Development– Sales and Marketing– Recruitment and Human Resources Planning

One of the most effective tools for– Being a more lovely person in the groups– Being a better family member– Influencing your friends more– …

To have a happier and more successful life!


Scarce ResourcesIncreased CompetitivenessEntrepreneurial Environment of BusinessGlobalization


Want to Achieve Success?


It is not enough to be right to reach our rights. We should be able to negotiate well. (Caspian Sea as an Example)Life can be summarized as relationship. Personal, Group, Social, National and … relationships. Negotiation is the main tool for successful negotiation.Our Relationship with our environment is getting more and more complex and diversified. (WTO as an Example)The rivals are getting more powerful everyday. We should make ourselves ready for this improving rivals.Learning Negotiation is a life time investment. It has return on investment in our whole life. It is not like all other investments.Quality of Life is a wish for any human being in this universe. Negotiation is the most useful tool for reaching such wish.


Why we need Negotiation Skills?

You do not get what you deserve, you get what you negotiate forNegotiation is one of the most popular modes of communication. It can build a closer relation if it be made in the right way.Everybody is getting trained and developed in negotiation skills


Everything you wantis under the

control of somebody else.

Onlyyour desire, plan and skill for

successis under your control

My Interests are others belongings! When to negotiate?

Win/Win outcome is desirable to both partiesYou occupy a defensible positionBoth parties have options


When NOT to negotiate?

You are in competition with the other party (Reconsider)One or both sides enter with false intentions

– Both sides must want and be willing to pursue win/winCan’t possibly winYou or other party lack authority

When NOT to negotiate?

Don’t negotiate with someone who’s intent is to defeat you (& vice versa)

– “Don’t wrestle with a pig…you both get dirty and the pig likes it!”

When NOT to negotiate? Tools for NegotiationPersonal Tools

– Effective Communication skills (Listening, Body Language, Speaking…)– Expertise in the field of Negotiation (Technical, Norms, Standards, Literature)– Preparation for Negotiation– Mastery of Techniques for Negotiation– Analytical Power– Understanding Business Law or Trade Law – Personality & Characteristics Analysis– Management of Emotions– ….

Non personal Tools– Time – Host / Guest– Location of Negotiation– Environment of Negotiation


Effective Communication SkillsActive Listening SkillsBody Language Skills

– Interpretation of Other Side BL– Using Non Verbal Communication to Transfer your Message

Speaking and Presentation Skills

Expertise in the Field of Negotiation

Expertise in the Field of Negotiation

You should be completely aware and competent of the standards and norms of the negotiation issue

– “Do you own the shop or you are tenant?” in Bazaar area– Transfer of technology and license agreement (SAMSUNG LCD)– EPC Contract (Construction of a Hospital, Refinery, Port)– Finance from World Bank (Development of Sewage Network)– Negotiation for a Purchase in a Real State Agency

Preparation for Negotiation (5P’s Law)

Proper Preparation Prevents Poor Performance!


Mastery of Negotiation Techniques Analytical Power

Understanding Business Law or Trade LawTrade Law;Laws and Regulations related to the subject and Field;

Management of EmotionsManagement of Your Own Side EmotionsManagement of Other Side Emotions


Tools for NegotiationNon personal Tools

– Time – Host / Guest– Location of Negotiation– Environment of Negotiation

Negotiation; Learned or Natural Ability?

“Successful negotiating is a skill. It is not something you have or don’t have.” (Gerard Nierenberg, The Art of Negotiating)

Like playing a sport, flying an airplane, or driving a car, becoming an effective negotiator is a skill that can be learned.

Some people have a natural talent for it. Others do not.

If you do not have a natural inclination for negotiating, you can learn how to do it, and do it well!

If you do have a natural talent for it, you can improve that skill with training and practice.

Let us never negotiate out of fear.

But let us never fear to negotiate.John Fitzgerald Kennedy

I learned very early that in most negotiations success or failure

is determined more by the actions, inactions, habits, idiosyncrasies, blunders,

insights, and clever strategic moves of the individuals

involved than by the terms of the agreement or other formal

elements of the proposed transaction.

Royce A. Coffin


Negotiation

Negotiation is a game, “a game of moving people from ‘no’ to ‘yes’.”

Negotiation

A

5 Major Principles of Negotiation

Getting to Yes, by William Ury and Roger FisherSeparate People from the ProblemFocus on the Interests not on the PositionsInvent Options for Mutual GainsInsist on using Objective CriteriaKnow your BATNA

5 Major Principles of Negotiation (Principle 1)

Make human relations with the opposite side negotiatorKeep your relationship with the opposite side friendlyKeep out of any conflicts (تعارض و تنش)Absorb the collaboration of the other partiesMutual Understanding (تفاھم)Agreement (توافق)Write down the agreements in a legal (Contractual) but friendly format.



Try to identify any and all interests which you are looking forTry to evaluate any and all interests which you are driving atTry to arrange them on the basis of sequence of priorityConsider the legitimate interests of the other sideGo to the negotiation in order to find the meeting point of the legitimate interests of both parties


Anticipate (Forecast) what are the issue which will be arised on the negotiation table (Expect what are the problems)Do not enter the negotiation without any solutionsDo not enter with only one solution

– A good Soldier shall participate in the battle with a riffle full of bullets not with one bullet

– Why not one? The one which is acceptable for you, maybe is not acceptable for him

Why we should this?

We do not negotiate with angels, machines, …We negotiate with human beingsThe Job Description of the negotiator is Problem Solving which should be done through Creative Solution Providing

– When you are not in collaboration with the other party (Confrontation!) you can not create new solutions.

How should we implement human relations and friendly collaboration

Describe your interests, situation, fundamentals, principles– In the first stage you are completely opposite to each other but after the

description they agree in some parts with you!Listen Carefully to the other side

– Good Negotiator is a professional speaker and a professional listener.First Listen then Speak. First open the other Side.

– Do not Negotiate with Black Box. You are aware of yourself but you should be aware of the other side.

– Stand on the top of the information Ladder– Do not blame yourself for saying something which should not be said in this

stage.– If the other side is aware of this technique, what should we do?

• Open both sides step by step• Do not tell all your statements one time!• Start with your most important reason



Hesitate to show your negative reactions immediately!– Instead Ask why?– You should not tolerate the load of the proving the wrong– The first judgment may be wrong– Example:

• Would you please explain • why your company • still• has such a viewpoint (attitude) (not position!)

Do not attack the other side!If he is telling lie, if he is in a weak position, let him and encourage him to speak more

– Do not tell him that you are lying. – The information which we have in this side of the table is different from the

information which is now delivered (given) to the table.– .زھر کالمتون رو بگيريد


Do not impose him (force him), convince them, persuade him– They will resist– Do not dictate– Help him decide correctly, do not let him go to the negative side– Lubricate the decision making, Assist him, facilitate, accelerate his

decision makingPut yourself in his shoes specially in case of confrontation

– As a result you will be more logical and fairMention his name between the negotiation process occasionally.

– Business Cards– Name of the participants– Use 1 Cal and 1 Sec for “Dearest”


Do not attack the other person. It will kill the negotiation– You are a civil engineer. You do not speak about law! (Governing

law or applicable law)– You are not familiar with the issue. It is a good time to learn!

Do not leave the session while you are in fight, …– You should pay so much to come back to the session

Do not ruin the trust of the other side– تناقض گويی– خالی بندی– دروغ گويی– Prove that you are fair, logical and reliable

Do not let the negative points push to personal negative judgments about the other side.


The other side is not your personal enemy!Do not ridicule the other party.If he is mistaken do not highlight or enlighten his mistakes.

– You know nothing about the L/C. Go and bring your daddy!– First credit his wrong answer– Indirect training– Ask your question in another proper way


What’s the role of Planning

If you fail to plan, you plan to fail

Negotiation

A

Types of Negotiation

Single Issue vs Multiple IssueSingle Episodic vs Multi EpisodicOffer – Counter OfferBetween Main Stakeholder vs Between Representatives

Negotiation Strategies

Broadly Distributive: Competitive Situations– Goals in direct conflict– Fixed and Limited Resources– Both parties want to maximize their share– Therefore strategy to maximize share– Managing Information

Broadly Integrative: Cooperative Situations– Committed to each other interest– Emphasize on commonalities– Both parties achieve their goals therefore win-win – Reliant on discussion and trust


A sample for a Bad Negotiation!

Position Based Negotiation vs Interest based Negotiation– The other party do not accept our position– If we were in his shoes we would not accept this position– I will be happy with lower than my position– The standard or norm is lower than my position and I can not justify

my position100 Meter Square Apartment

– We Will lock in this situation• I will believe that it worth 300 Million• Negotiation is give and Take, is tit for tat, compromise.• The Other party will lock himself• The weaker will give the first advantage

The Dog of the neighbor

Communications Importance in Negotiations

Negotiation is a process by which negotiators communicate their own interests, positions, and

goals and in return

make sense of those of the other party and of the negotiation as a

whole.

negotiation seminar farzin fardiss autumn 1394€¦ · • issues or domains which are common and...

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