Successful Negotiating

Advantage Discussion Session #74

for X420 Class

Kelley School of Business

Presented by Richard D. Attiyeh

Win-win Negotiating• You need goodwill on both sides• Giving and getting information is vital• Different people want different things• Afterwards people are willing to deal with

you again• Both parties confident the agreement will hold• Each side has achieved something

Guidelines for Successful Negotiating

• Be prepared• Acknowledge differences in

perception• Anticipate no agreement• Be creative and flexible

Guidelines for Successful Negotiating

• Look for areas of trade off• Ask questions and listen• Avoid threats and ultimatums• Suggest a deadline

Q & A

Which of the following are win-win?1) “What do you think about sending our staffs to the tech

training seminars? They’d gain valuable knowledge and begin to learn how to work together effectively.”

2) “Yeah, we can pay for the seminars if your organization will cover the travel costs.”

3) “Whoa! Let’s remember who the senior trading partner here is. It’s not your client, that’s for sure!”

4) “Well, if we can’t even agree on this then we might as well leave right now.”

5) “Before we end these discussions, let’s set a date for our next meeting.”

Preparing for a Negotiation

• Think through how the other person is going to view the negotiation

Anticipate No Agreement

• Anticipate no agreement• Think through your alternative• Be as well-informed as possible

Ask Questions and Listen

• Understand the importance of the relationship

Common Negotiating Mistakes• Inadequate preparation• Not looking for a win-win result• Not listening• Pulling rank• Scoring points for personal satisfaction

Common Negotiating Mistakes

• Being aggressive• Arguing• Ignoring conflict• Impatience• Failing to end on a positive note

Five “Don’ts”

• Don’t accept the first offer – at least not immediately

• Don’t be the first– To name a price– To offer to split the difference

• Don’t get seduced so you can’t walk away• Don’t admit you’re under time pressure• Don’t leave a single issue outstanding

Q & AWhich of the following is wise, which is foolish?

1) Negotiator to counterpart: “Let me start out by telling you that we are willing to meet you halfway on all costs.”2) Negotiator to counterpart: “We are all tired of your

excuses. We’re out of here.”3) Negotiator to counterpart: “Before we go on, I want to make sure

that you’re comfortable with things so far. If not, let’s take some more time and examine the issues completely.”

4) Negotiator to counterpart: “Let’s get one thing clear – we don’t need you, you need us.”

5) Opening statement: “We’re here because we both realize that if we can come to an effective arrangement we will both benefit. The more we agree, the more we benefit.”

6) Closing statement: “What a good meeting! When can we get together again?”

Focus of NegotiatorsStructure/Facts

Assertive

Variety/Emotions

Unassertive

RESULTS FOCUSANALYSIS FOCUS

INVOLVEMENT FOCUSSTABILITY FOCUS

Focus of NegotiatorsStructure/Facts

Assertive

Variety/Emotions

Unassertive

RESULTS FOCUS•Be concise•Use key points•Be positive, not aggressive•Be businesslike

ANALYSIS FOCUS•Be detailed•Give reasons•Allow time

INVOLVEMENT FOCUS•Be enthusiastic•Be informal•Present the facts clearly•Be interesting•Appeal to imagination

STABILITY FOCUS•Develop trust•Present a clear case•Go slowly

Personal Action Plan

• Review the Guidelines• Practice Your Skills• Review your Exchange

Review the Guidelines• Be prepared• Acknowledge differences in perception• Anticipate no agreement• Be creative and flexible

Practice Your Skills

• What were the issues?• How were they handled?• Were gains accomplished?• How does your future relationship look?• Did you use the guidelines?

Review your Exchange

Evaluation Questions

1. I found the presentation of material easy to understand.2.This Advantage session increased my knowledge on the

subject presented.3. I will be able to use some of the information from this

Advantage session in the future.4.The presenter was well prepared for this Advantage

session.5.This presentation should be repeated in future semesters.

Successful Negotiating:Use:•Strongly agree•Agree•Disagree•Strongly disagree•Don’t know