Women & Negotiating. Women in Technology (WIT)

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1 Women & Negotiating Women in Technology (WIT)

2 Learning Objectives Apply the 4 stages of negotiating to upcoming opportunities List the 6 negotiating styles Identify tactics that are being used during tough negotiations Use practical tips and techniques to build confidence as a negotiator Opportunity for Negotiating Think of an example of a current or upcoming negotiation situation: JUNA Consulting Inc., Page 2 of 12

3 Stages of Negotiations The great thing about negotiating is that there are distinct stages to the process and these can be learned! This, in effect, is the science of negotiating. We will cover the art of negotiating later on. Like many things in life, effective negotiating is enhanced to the extent that we have a plan. Preparation is the key to successful negotiation, and the world s most renowned and respected negotiators stress preparation as the foundation upon which successful negotiations are built. There are four main phases of negotiation: 1. Prepare 2. Explore and Discuss 3. Propose and Bargain 4. Close and Agree Many negotiations are destined for failure from the outset because Stage 1 (preparation) has been poorly done or not done at all. JUNA Consulting Inc., Page 3 of 12

4 4 Stages of Negotiating Stage 1: Prepare Define your objectives Consider what concessions you might be prepared to make Decide what information you require (research) Prepare a strategy Identify your BATNA (Best Alternative to a Negotiated Agreement) Stage 2: Explore and Discuss Test assumptions Exchange information Explore interests SIGNAL (listen and watch for signals) Stage 3: Propose and Bargain What if......could consider...maybe... The best response to a proposal is a graceful counter-proposal In return for I will Stage 4: Close and Agree It s settled then, you will provide me with... And I will provide you with Summarize agreement. Write it down. JUNA Consulting Inc., Page 4 of 12

5 Alternatives and Positions At the beginning of negotiation, each party takes a position. These positions usually change as a result of the exchange of information. Any change provides the opportunity for the communication of new information. Range of Positions: Opening this is used in the early stages of negotiation in order to put something on the table (The first announced position on a matter) The Anchor Target the desired outcome of negotiation on an issue Fall-back a position which is less than the opening and is the result of change during the negotiation Bottom-line a position on an issue beyond which you will not move What is my BATNA? JUNA Consulting Inc., Page 5 of 12

6 Negotiating Styles One could argue that the most effective negotiators have the ability to adapt their style based on the situation, the opposer or the specific issue at stake. To a certain degree this is true, as long as the fundamental tenets of principled negotiating are honoured. 6 Negotiating Styles Style 1: Conflict Avoidance Seeks to avoid conflict with others, even at the expense of one's own position. Avoids taking a position on issues, frequently deferring to the view of others. Often reluctant to confront problems directly and to stake out positions in more intense deliberations. Style 2: Exploitation Enjoys the competition inherent in conflicts over ideas. Uses aggression and/or charm to achieve the submission of an adversary, attempting to gain as much as possible at the expense of the other. Manipulates people and situations to achieve a desired outcome and in the process to achieve control over decisions. Strives for a win/lose outcome. Style 3: Domination Assertive and decisive concerning solutions to problems. Well organized and competent in efforts to determine outcomes. Demands performance and compliance in work relations. Seeks to control information as a means to acquire and retain authority over decision-making. Style 4: Contact Avoidance Avoids group problem-solving exercises in order to maintain independence. Ignores conflicts over positions as a means to avoid exposing preferences. Attempts to achieve control over outcomes by nonparticipation, and resists modifying convictions. Self-sufficient, rarely asking for assistance with tasks. Style 5: Manipulation Encourages the efforts of others, offering praise and assistance. Acts as a mentor to colleagues, providing them with solutions to problems. However, will resist efforts of others to exercise independent judgement by withdrawing praise and assistance. Consults widely with others to give the appearance of consultation, but makes independent decisions, often ignoring the input of others. Style 6: Collaboration Objective and open in stating preferred solutions to problems, but actively solicits and considers the opinions and input of co-workers. Considers new approaches to problems and acts decisively to implement solutions. Attempts to satisfy the needs of the other party while achieving own goals. Strives for a win/win outcome. JUNA Consulting Inc., Page 6 of 12

7 What style do you want to use in your upcoming situation? How does this affect the way you deal with negotiations? What is a strength of that style? What is a potential negative impact of that style? JUNA Consulting Inc., Page 7 of 12

8 Negotiating Tactics Brotherhood/Sisterhood Have one s opponent identified as an ally or comrade Detours Attempt to divert attention to another issue until a more opportune time Tabling A device for setting aside a contentious issue and moving on Time Deadline, delays, time compressions, timed disclosures Amount High-balling or low-balling, extreme positions in order to surprise or confuse Plateauing Calling in the boss, the need for reference to a higher authority Crisis Real or fictional crisis is referred to in order to exert pressure Overt & Hidden Agendas May limit the smooth flow of communication Trade-offs If then, trading the present for the future Caucus Scheduled or unscheduled breaks during negotiation. They provide opportunities to regroup, and to re-order strategies, and positions JUNA Consulting Inc., Page 8 of 12

9 When Tactics Forbearance wait it out useful if you know their deadline Surprise sudden shift in approach use only if negotiations are at a stalemate Fait accompli present other party with a supposedly irreversible action (to create pressure) Positive on behalf of my team, we are committed to achieving agreement today Negative take it or leave it Fait Accompli Bland withdrawal walk out without emotion Apparent withdrawal leave, but have someone protect your position Indicate you may be able to get your team back if you get some movement on Reversal change direction on an issue to surprise or confuse Defensive strategy can breed defensiveness on the other side If you perceive you have little bargaining power (or the other side knows this), then this can throw them off Limits restrict the points on which you are willing to negotiate and the time you are willing to spend Feinting distract attention from real goal by pretending to move to another goal; misleading an opponent by moving in a direction that really is not desired JUNA Consulting Inc., Page 9 of 12

10 How and Where Tactics Association identify your point of view with that of influential, knowledgeable people Participation try to get others to work on your behalf get everyone involved Dissociation take a point of view you oppose and identify it with weak or disreputable people Crossroads introduce several alternatives so you can make concessions in less important areas and still achieve your goal Blanket shotgun approach hoping to hit at least one vital target often used when you have little idea what the other side wants, and you don t want to get forced into a commitment Randomizing use law of chance rather than calculated judgment Random Sample use a small piece to symbolize the whole if someone uses this on you never accept it at face value ask for the raw data Salami take one slice at a time until you have the whole thing explore each slice and try to get an idea of their range on each one Bracketing Fire beyond target, then short of it, then calculate error and get right on target If I am right, no employer has offered more than 3% or less that 1.5% - am I right? Changing Levels adopt a wider or narrower point of view, involving many levels into which everything is divided Thank YOU! Website: JUNA Consulting Inc., Page 10 of 12

11 Appendix A Glossary of Terms Negotiations Addition: a point or factor introduced after the fact; it may be real or a decoy. Arbitrator: a person or persons chosen by the parties to a negotiation to settle the differences between the parties and provide a ruling or decision on the direction for resolution. Authority: an essential requirement for the parties to reach a binding agreement. Block: an obstacle introduced to prevent or hinder progress. Careening: to rush into agreement without regard to the gravity of the situation or the implications of concessions. Caucus: to break from discussion and convene privately with one's own team to discuss strategy and tactics. Close: to press for agreement or conclusion on a point or issue. Compromise: to grant concessions in order to reach agreement. Conciliator: a person who enters into a dispute or negotiation to facilitate the bargaining process. Crisis: a real, implied or created point of pressure used in order to reach agreement. Crossroads: an impasse that occurs when two opposing points of view are presented and they is no apparent room for agreement. Deadline: an agreed or fixed point in time by which something must have been accomplished. Deadlock: when both sides have exhausted their bargaining power without reaching an agreement or they have reached an impasse from which neither side will back down or bargain further. Decoy: a point or factor which on the surface appears to be of importance to the outcome, and is often used to draw attention away from the main issue. Draft: a written proposal or solution. Drop-dead-date: the expiry date of an offer after which the deal is off. Escalation: an increase in pressure to reach agreement through the addition of factors that could affect the outcome. Fait Accompli: facts presented with a set of factors that are already in effect (i.e. some arrangement that has already been agreed upon.) Gamesmanship: attempts to influence the outcome of negotiation through displays of temper, frustration, threats, withdrawals, etc. Good guys/ Bad guys: a tactic or strategy employed to pressure a negotiator by presenting him/her with one member who appears to accept the negotiator's position or concern and another member who retains an uncompromising position. Ground Rules: the parameters within which the negotiations will proceed (e.g. location, lunch breaks, caucus, coffee and agenda.) Hard Sell: a tough, demanding, unreasonable, uncompromising, "take-it-or-leave-it" negotiating style, technique or approach. Hidden Agenda: unstated factors that affect the course or outcome of negotiations. These factors may be personal or objective. Hot Button: a crucial point to someone that will affect the outcome of the deal. If unidentified, the deal will not be settled. Issues: important or key matters which will be discussed at the bargaining table. Impasse: see "Deadlock" Low Ball: to offer or to price low at the outset, and then to escalate the price through pressure at a later point or to make other demands and/or concessions so as to recover and gain advantage. Mandate: the essential point without which an agreement is impossible. In contracting, if a bidder fails to meet a mandatory requirement, they are eliminated from further activity. Mediator: an individual who enters a negotiation in order to offer ideas to reconcile differences between the parties and to affect a settlement as an intermediary by facilitating the communication process. Negotiator: an individual who assists the reaching of agreement by applying the skills of negotiation. JUNA Consulting Inc., Page 11 of 12

12 Nibbling: to gradually win concessions until a major point has been attained. (Also called "piecemeal" or "edge of the wedge"). Non-negotiable: factors that may affect the outcome of negotiation but which cannot be modified (e.g. policy issues that cannot be changed). Non-verbal: actions other than spoken words which convey information (e.g. facial expression, tone of voice, body language, dress.) Packaging: a list of items (related or not) usually presented at the negotiating table. They may involve a combination of concessions or offers on several issues which could be negotiated separately but which are combined into one package. Plateauing: reference to the need for higher level approval at some point late in the negotiation. It can be identified or prevented by clarifying at the outset the level of authority that each party brings to the table. Position: a bargaining stance on one or more issues. Positions may range across a spectrum from "opening" to "fallback" to "bottom line. Posturing: a bluff or trick. (See Gamesmanship) Power: real or imagined strength of the parties before or during the negotiation. It may change during the procedure. Qualifying: an established position that forces the opposition to qualify or prove that it meets a certain set of criteria before negotiating. Red Flag: an unintentional word, saying, expression or reaction that may have a hidden meaning or represent a signal. (e.g. "it's not the money, it's the principle" - in other words it s the money!) Sidetrack: a tactic used where a minor issue is raised to lead the opponent off track and away from more important issues. Signals: the use of prearranged signals between members of a negotiating team (e.g. passing candy, coughing, taking out a pencil, etc.) Strategy: the global plan which provides the framework to achieve an objective. For example, timing can be an element of strategy when there is a limited amount of it. Time deadlines can be used as tactics. Stonewalling: a tactic used when one hears but totally ignores proposals or demands and continues to put forward one's own position. Style: the approach or method used by a negotiator (e.g. Hard Ball, Good guys/bad guys, Compromise etc.) Tabling: setting aside a contentious issue to return to it later after other issues have been clarified or resolved. Tactic: actions taken to implement a strategy (e.g. hardball, take-it-or-leave-it, deadlines, etc.) Take-out: a major concession or trade-off offered to gain a fast conclusion. Trade-off: a relinquishment of a perceived minor issue or point to gain a higher level concession. Tricky-Tray: open competition where low price wins regardless of the quality of the other factors. What If: a test to be applied before agreeing. "What if it doesn't happen?" Also a method of breaking an impasse "What if we were to...?" White-out: a flurry or "blizzard" of issues and points designed to confuse or unsettle the opposition. Also called "scrambled eggs" when the white out contains unrelated issues. Wrap-up: a summary of agreed items made when working toward a settlement of one or more issues. It serves to remind and confirm what the parties have said and what they have agreed to. JUNA Consulting Inc., Page 12 of 12