The Art of Principled Negotiation

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2 The Art of Principled Negotiation

3 Hello

4 Samuel Tait Managing Partner, I/O (Innovation Consulting) welcometo.io 4

5 driving growth / through innovation where human-centred design meets strategy consulting

6 The Art of Principled Negotiation Xi THINK Tuesday 23rd February,

7 The Negotiator Tonight s talk is on The Negotiator a film from In a desperate attempt to prove his innocence, a skilled police negotiator accused of corruption and murder takes hostages in a government office to gain the time he needs to find the truth. Starring: Samuel L Jackson Kevin Spacey 7

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10 THE BIG Your salary Buying a house Prenup THE SMALL Projects at work Who pays for dinner We negotiate every day 10

11 The Art of Principled Negotiation 6 books to give away You must return a completed statement of agreement form to go into the draw 11

12 Game #1 - Used Car The scenario for this role-play involves a single issue: the price of a used car that s for sale. #1 = Buyer #2 = Seller Preparation = 3min Negotiate = 7min 12

13 What is Negotiation? 13

14 What I learnt at Wharton Business School Wharton - Negotiations Course The science and art of creating agreements between two or more parties. 14

15 What I learnt at Wharton Business School Wharton - Negotiations Course The course has two purposes. First, develop theories to guide negotiations. (That s the science.) Second, develop & sharpen negotiating skills. (That s the art.) 15

16 Negotiation The process whereby two or more parties decide what to give and take in their relationship, and through a process of mutual influence, come to an agreed course of action. 16

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18 Principled Negotiation Focuses on WIN-WIN OUTCOMES. With any negotiation being judged by the following criteria 1. It should be a WISE AGREEMENT 2. It should be EFFICIENT 3. It should IMPROVE THE RELATIONSHIP 18

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20 #1 - Preparation is key Prepare rigorously Negotiating starts at home Research the situation Plan potential scenarios Role play scenarios 20

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22 #2 - Trust and rapport Build trust & rapport Your influence increases if people like you Quick wins upfront can earn trust Frame: In it together to solve the problem 22

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24 #3 - Listen and share Listen to what is being said Find out what it is they want Ask open ended questions Share what it is you want in exchange 24

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26 #4 - Value and trade Find out what you value differently Trade them eg how risky you think something is versus the other party The value / price YOU place on something is different to the other party 26

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28 #5 - Grow the pie If you can work together to grow the the pie (benefits), you ll both go home with larger slices Trade things of unequal value Trust can create an environment for creative solutions 28

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30 #6 - Claim it Don t hesitate to go after what you want If you don t ask..you don t get Aim for the high side of reasonable Know you deserve it 30

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32 #7 - Know thyself temet nosce and to thine own self be true Know your individual & personality strengths Know your weaknesses Forearmed is forewarned 32

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34 #8 - Understand power Power is how much value you bring to the table relative to how much value they bring to you Understand power and your position Are you in a more powerful or less powerful position? 34

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36 #9 - Find the ZOPA ZOPA = Zone Of Possible Agreement e.g. when a buyer s maximum price is higher than the seller s minimum price Asking questions can help you find out if there is a ZOPA No ZOPA / No DEAL 36

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38 #10 - Know your BATNA BATNA = Best Alternative To a Negotiated Agreement Always know your BATNA It will become your best friend The happier you are with the BATNA as an outcome the more power you have in the negotiation 38

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40 Game #2 - House Sale The scenario for this role-play involves a single issue: the price of a house that s for sale. #1 = Seller #2 = Buyer Prep = 7min Negotiate = 15min 40

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42 And that s why it s called Getting to Yes 42

43 Over to you Questions? 43

44 cheers. Thank you! welcometo.io Suite 807, 46 Kippax St Surry Hills, NSW, 2010 Call us. Phone: +61 (0)