Master Class. Negotiation & Persuasion in Action. Margaret Considine CEO EQuita Consulting Limited
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2 Master Class Negotiation & Persuasion in Action Margaret Considine CEO EQuita Consulting Limited MA[Conflict & Mediation], MSc [Mgmt.OB], H.Dip, BA[Mgmt], MMII, CEDR
3 Overview of Influence Persuasion and Negotiation KNOW DO BE The artistry of Professional Practice Influence Negotiation and Persuasion Trilogy
4 Negotiation Skills as Core Commercial Competency q q q q q q q q Negotiation is a Key communication & influence tool for interdependent relationships and traversing the line of difference between two conflicted parties YET - Most people not very good at negotiation (e.g., over 80% of corporate executives and CEOs leave money on the table) 70% of Execs had no formal negotiation expertise Our challenge is to dramatically improve ability to: Create value Claim value Build trust & relationships Research basis in economics and psychology
5 Negotiation: Trading Skill Set
6 DO YOU BELIEVE THIS? Effective Relationships are A key to a successful working Environment
7 Negotiation: Trading Skill Set
8 1. Price / Value 2. Movement / Trading 3. Relationships/ People Negotiations 101 All Negotiations Involve
9 2 Types of Negotiation Where two parties have a joint difficulty and where they intend to agree There are two types: q Distributive Splitting a fixed pie Claiming VALUE q Integrative Enlarge the pie Creating VALUE swelling the size of the pie by adding more variables to negotiate on and then getting as much of that pie as you can for yourself while leaving enough on the table for the other side. Four Phases of Strategic Negotiation: 1. Preparation 2. Opening & Proposing 3. Bargaining 4. Closing
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11 100 % Me DISTRIBUTIVE NEGOTIATION: I win What we both want most Usually Price We end up having to split it You loose What we both want Somewhat Unimportant to either of us I loose You Win % THEM
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13 q Integrative Enlarge the pie Creating VALUE swelling the size of the pie by adding more variables to negotiate on and then getting as much of that pie as you can for yourself while leaving enough on the table for the other side.
14 Sample checklist of Variables The more Variables the better [but the more work] Basic quality of product or service Ease of implementation Interest Rate Covenants Flexible repayments Speed of raising loans Price Payment terms Currency Caveats Delivery time Key account Support Break Clauses Guarantees Steady relationships Options on future business Help with promotion/advertising Speed of settlement Transfer of technology Staff training Volume discount Publicity Personal status Fun EFT payments Dedicated contact person Tactic: More variables = More tradability
15 100 % Me INTEGRATIVE NEGOTIATIONS C Very Important to me E D What I Want O P What we both want most B A K Important to me L Unimportant to either of us F M What we both want Somewhat G N What They Want H What we both want I X J Very Important to them % THEM
16 1.Line of Negotiation identify as early as possible 2.Positions v s Interests - Power of Anchors 3.Reference Points & Variables 4.Perception and Needs 5.BATNA 6.WATNA 7.ZOPA 8.Re- anchoring 9.Insult offers 10.Clear the table Ten Basics of Negotiation
17 5 Common Mistakes in Strategic Negotiations Unrealistic Expectations Irrational Escalation of Commitment Over competitiveness Myth of Fixed Pie Selecting inappropriate Anchors 5 Incorrectly Framing a situation
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19 The Seven Skills of More Effective Negotiators 1. Thorough preparation including knowing when and how to close 2. The ability to set limits and goals 3. Keeping your emotional distance 4. Good listening skills 5. Clarity of communication 6. Building rapport 7. Negotiating with different personality types
20 Stages of Negotiation Prepare Open Bargain Close
21 Quick Guide to Preparation How to prepare 1. Set goals 2. Have as many variables as possible 3. Do Think in Ink. 4. Have a BATNA /know WATNA 5. Price Your stock 6. Do the 5 D Test to ensure that what you aimed for you have achieved. Preparation is everything or nearly in negotiations.
22 Opening Important??? Tools Physical Settings Rapport Continuously Gather Data Anchors Sends Signals
23 Finding Areas of Agreement Your area of deferred gratification Your push zone Area of easy potential agreement Your counterpart s push zone Your counterpart s area deferred gratification Your goals Your counterpart s goals Strategies q Continuously Gather Data q Keep an open mind q Ask enquiring questions q Link answers to objectives q Find Healthy Mutuality of methods & Demonstrate Collaboration q Build for early Success
24 CLOSING what to remember 1 2 Clear the table Write up the agreement Allow for Contingent Contracts Watch out for Nibbles 3 Attend to the relationship
25 Persuasion
26 4 Keys to Persuasion Get the basics right Develop a Tool Box Maximise the 12 words of extraordinary persuasion in the English language Leverage the 9 Connectors
27 Get the basics Right 1. Demonstrate Confidence 2. Be Optimistic 3. Be Authentic 4. Be prepared 5. Use Good Attending Skills 6. Tailor your message to your audience 7. Build a persuasive case 8. Find Alignment 9. Demonstrate adaptability 10. Attend to the relationship
28 Develop a Tool Box 1. Persuasive Reasoning 2. Charismatic Persuasion 3. Use the six Universal principles of Persuasion to maximise your efforts i. Reciprocity: ii. Liking: iii. Social Proof iv. Consistency v. Authority vi. Scarcity
29 12 Words of Extraordinary Persuasion You Free Save Guarantee Easy New Help Discovery Results Money Love Proven
30 Nine Things both sides Wants Nine Things both sides Wants 1. To feel good about themselves 2. Not to feel bullied 3. To be listened to 4. To know and understand more 5. To finish the negotiation without too much heartache 6. To be treated respectfully & To be liked 7. Clear communication 8. To be trusted 9. To be treated fairly
31 TEN T O P T I P S : 1. Spend time planning your negotiation (your side and theirs) 2. Have a hierarchy & range of objectives 3. Aim High: Ask for the most people who ask for most get most as long as its within the bounds of reasonableness 4. Have a BATNA /know WATNA - Explore interest rather than taking set positions 5. Price Your stock - will help you know what to trade & when 6. Form Coalitions 7. Talk less and listen more. 8. Don t make the first concession if you do get something back in exchange of higher value 9. Maintain pressure, avoid provocation, resolve the negative consequences for the other side 10. Review afterwards and manage the aftermath
32 Thank you for your attention & valuable contribution. I look forward to meeting you all across the negotiation table soon. Regards Margaret Don t be a stranger! margaret@equita.ie Tel: [m]
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Importance of Service & Customer-Focused Attitude Sociologists claim that customer service is emotional labor. Being On all day is hard. Customers get upset, yet the customer service professional cannot.
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