Negotiation Skills Negotiation is the process of discussion between two or more disputants, who seek to find a solution to a common problem, one that meets their needs and interests acceptably. Learning to be a skilled negotiator can help you make deals, solve problems, manage conflicts, and preserve relationships (Harvard negotiation-skills daily blog). Note to Mentors: At start of the session ask the students a few basic questions to get a feel for their familiarity with this topic. One good question is to ask if they are comfortable or uncomfortable negotiating. We negotiate all the time and we ve been negotiating since we were little kids. Therefore, the session s focus is to discuss negotiation strategies, techniques and tips that will help improve the student s negotiation skills. See suggested discussion points below. Suggested questions you can use to kick-off group discussion; large group or break up to small groups: Ask students: What do they know about negotiating? What s the first thing that comes to mind when they hear negotiation? Are they scared to negotiate/what scares them about negotiating? Is there always a winner and loser in negotiation? Is there such as thing as Win-Win negotiation? During the discussion, make sure to get these key points across. Feel free to discuss additional points. The best way to practice negotiation skills is to practice negotiating There are various negotiation styles/techniques: collaborative, competitive, compromising, accommodating and avoiding. See Appendix A There is no single 'best' or 'right' approach. All five negotiation styles are useful in different situations. Negotiation Strategies: o Distributive Negotiation Claiming all the profit or the maximum share for oneself - winning it all o Integrative Negotiation Creating value (expanding the pie) and finding solutions that best meets the needs of all or most parties - especially over time o Mixed-Motive Negotiation Expanding the pie and meeting the needs of all or most parties as much as possible and then claiming an appropriate share - or while claiming an appropriate share Source: http://web.mit.edu/negotiation/www/nbdefs.html Preparation is the key to conducting a successful negotiation. Small scale disagreements will require less preparation than what s needed to resolve a major disagreement. Examples of negotiations in the news: (1) Athlete s contract negations in sports (i.e., football, basketball). (2) Labor Union negotiations, ex., NY MTA
Win-Win Negotiation Preparation Sheet Aspect of the negotiation Notes Goals Trades Alternatives Relationship Expected outcome Consequences of winning or losing Power Possible solutions
Tips: Top 10 Factors for Successful Negotiating Skills 1. Know what you want: The clearer you are on your interests and goals, the better your chance of success increases. 2. Know the other side: Learn as much as you can about the people with whom you are going to be negotiating. Know their negotiating style (DiSC ), negotiation skills, their backgrounds, hopes, fears, aspirations, and their interests. Little things do not mean a lot, they can mean everything. 3. Consider the timing and method of negotiations: Alter the game to win-win problem solving by negotiating skillfully using interests, not positions. 4. Prepare point by point: Negotiators who prepare will outperform those that do not. 5. Offer benefits for accepting your offer: You are much more likely to close if you present the benefit the "what's in it for them?" test. 6. Frame your negotiation around one or two key points: Keep it as basic as possible by framing and reframing to keep things on track and reach agreements more efficiently. 7. Know your BATNA (best alternative to a negotiated agreement): Your personal power comes from the ability to walk away if you are unable to reach an agreement. Effective negotiators not only know when to walk away, but also how to walk away leaving the relationship intact. 8. Prepare options for mutual gain: Be creative. Find unique ways for both sides to get their interests met. "What if we tried this?" 9. Listening is the most powerful negotiation skill: It will help you learn where your interests are shared with the other side, where they are in opposition, and get a satisfactory outcome. 10. Use the power of the draft: Always put your negotiated agreements in writing. Recognizing the reasons why people act the way they do, and having the ability to communicate to a broad range of behavioral styles offers the skilled negotiator the ability to reach satisfactory outcomes more consistently. Following a process or strategy is fine, but understanding the styles of the people with whom you are negotiating, and changing your approach to communicate more effectively can be the key to success. Source: http://www.negotiations.com/articles/negotiating-skills/
Appendix A: Negotiation Styles o Collaborative/Constructive negotiation creates a win-win situation where both parties can leave the table feeling that they have gained something of value. This style seeks to gain the best possible solution. o Competitive negotiation approach is to treat the negotiation process as a competition that is to be won or lost. In competitive negotiation, the relationship between the people is unimportant. They do not care about one another or what the other thinks about them. This typically occurs in one-off sales. o Compromising negotiation process is when neither side gets all of what they really want, but they each make concessions in order to reach an agreement that is acceptable to both). o Accommodating is the opposite of competing. For accommodating style negotiators, the relationship is everything. Accommodating profiles think that the route to winning people over is to give them what they want. o Avoiding negotiation style involves individuals who are most often referred to as "passive aggressive". People who habitually use this style really dislike conflict. Source: (http://www.beyondintractability.org/bi-essay/compromise
Negotiation Styles Summary Negotiation Style Think of When to use What s the Danger? Collaborative I win You win Under most circumstances collaboration is the primary style you should use for most goals in business to business negotiations Competitive I win - You lose When something is not negotiable and immediate compliance is required Compromising I lose/win some You lose/win some When you are pushed for time and you are dealing with someone who you trust. They also need to be clear that it would not be in their best interest for them to "win" a cheap victory. Both parties win and lose - but make sure you win the right things and lose the right things. Accommodating I lose You win When you or are at fault, repairing the relationship is critical, and if you have nothing else that would benefit the other side. Avoiding I lose You lose When the value of investing time to resolve the conflict outweighs the benefit; or if the issue under negotiation is trivial (trivial to both parties). Source: http://www.negotiations.com/articles/negotiation-conflict-profiles/ Be careful not to collaborate with competitive style negotiators unless they agree to and live up to your agreed (written or unwritten) rules of collaboration When you use compromising as an excuse for not preparing properly. Without quality negotiation training, most negotiators wing it, and end up compromising. If the outcome of the negotiation is critical, then you should not compromise on things that you absolutely must have. It is almost always a bad idea to accommodate when negotiating against high compete styles. With high compete negotiators your generosity will be seen as a sign of weakness to be taken advantage of. Whoever has the greater urgency will usually end up with the short end of the avoidance stick. Stalling is a common sales tactics