Negotiations & Infl uence Negotiations Stages Dr Steven Clarke Different Approaches to Negotiation – Common Negotiation Styles Creating Creating Value Value Claiming Claiming Value Value • People People who create who create value value during during negotiations are negotiations are creative creative • Value Value claimers claimers are are particularly particularly successful successful in in price-driven price-driven and and always always look look to to expand expand the the pie pie so so there there is is more more potential potential value value to to distribute distribute between between themselves themselves and and the the other other negotiating negotiating parties parties They’re They’re particularly particularly successful successful at at negotiating negotiating multi-issue multi-issue deals deals or or with with long-term, long-term, repeat repeat customers, customers, who who tend tend to to have have value-creating value-creating potential potential Empathizing Empathizing Asserting Asserting • People People who who are are empathizers empathizers manage manage the the difficult difficult • People People who who tend tend to to lean lean toward toward assertion assertion like like to to take take or or business business negotiations, negotiations, where where the the bottom bottom line line is is of of top top challenge challenge of of seeing seeing everyone's everyone's point point of of view view because because charge charge in in negotiations negotiations Asserting Asserting yourself yourself is is critical critical to to importance importance and and they they seek seek to to claim claim most most of of the the value value If If they they understand understand the the achieving achieving the the best best outcome outcome for for yourself, yourself, but but don’t don’t forget forget you you tend tend to to be be a a value value claimer, claimer, but but also also negotiate negotiate multimulti- role role that that emotions emotions can can play play in in negotiation negotiation Empathizing Empathizing to to consider consider your your counterpart’s counterpart’s perspective, perspective, too too To To issue issue deals deals or or with with long-term, long-term, repeat repeat customers, customers, try try to to with with a a negotiating negotiating partner partner can can be be difficult, difficult, but but doing doing so so is is achieve achieve your your goals, goals, you you must must be be able able to to advocate advocate for for see see ifif you you can can create create value value rather rather than than focusing focusing on on crucial crucial to to successful successful outcomes outcomes yourself yourself while while still still considering considering all all sides sides involved involved in in the the claiming claiming existing existing value value • Using Using this this negotiation negotiation technique technique is is generally generally the the most most cooperative cooperative approach approach and and best best for for problem-solving problem-solving negotiation negotiation • Being Being able able to to adapt adapt your your style style requires requires both both selfself- Don’t Don’t forget forget to to balance balance your your empathic empathic tendencies tendencies with with awareness awareness and and agility, agility, especially especially when when using using an an your your ability ability to to assert assert yourself, yourself, which which is is essential essential to to assertive assertive negotiation negotiation approach approach achieving achieving a a positive positive outcome outcome In In other other words, words, don't don't sell sell yourself yourself short short in in your your desire desire to to show show concern concern for for others others Phases of Negotiation Phase Phase Phase • Preparation • Relationship Building • Information Gathering Phase Phase Phase Phase • Information Using • Bidding • Closing the Deal • Implementing the Agreement Negotiation Scenarios Win – Win Partnerships are Sustainable Mental Models in Negotiations What are mental models? Mental models are the ways in which people understand social and physical systems While frames concern how individual receive and process information, a mental model concerns how individuals approach a situation That is, it is the mental predisposition that results from a number of Haggling Model Cost-Benefit Analysis Game-Playing Model Partnership Model Problem Solving Model influences, such as their mental frame • This is a competitive • This is the logic-based • This is characteristic of a • Negotiators who build • This model seeks to come or their cognitive biases Negotiator’s mindset where each model that draws more competitive bargaining rapport to nurture long-term to a firm, logical outcome negotiator tries to obtain the heavily upon a collaborative strategy in which one party relationships and often that resolves any conflicts It biggest share of the strategy used to expand the seeks to maximize their make sacrifices to uphold is generally marked by a bargaining zone potential value available value by outmaneuvering the relationship This is collaborative or the other party characteristic of a accommodative strategy mental models shape their behavior in the negotiation process • Power-Based • Interest-Based collaborative negotiating strategy The Harvard Principles of Negotiations Play Erich Pommer Institut (EPI) Source: Pommer, E (2018) Harvard Principles of Negotiation Retrieved from https://www.youtube.com/watch?v=RfTalFEeKKE ... negotiating multi-issue multi-issue deals deals or or with with long-term, long-term, repeat repeat customers, customers, who who tend tend to to have have value-creating value-creating potential... during during negotiations? ?are negotiations? ?are creative creative • Value Value claimers claimers are are particularly particularly successful successful in in price-driven price-driven and and... best best for for problem-solving problem-solving negotiation negotiation • Being Being able able to to adapt adapt your your style style requires requires both both selfself- Don’t Don’t forget