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Negotiation Objective • • • • • • • • • • • • • • • Explain What is Negotiation Explain the Basic Principles of Negotiation Describe the Benefits of Negotiation Explain the Types of Negotiation Strategies Explain the Stages of the Negotiation Process the Concepts of a Win-Win Describe Negotiation Explain the Various Styles of Negotiation Explain What is BATNA Describe Strategies for Developing Negotiation Skills of Third Party Explain the Types Explain the PROBE Technique for Negotiating Describe the Negotiations in Organizations List the Issues in Negotiation List the Characteristics of a Good Negotiator List the Tips for Effective Negotiation Introduction Globus Inc is a leading IT giant Peter Looney is a Project Manager in Globus Inc He is responsible for meeting the clients for every new software development project that comes to Globus Introduction Maxwell Telecommunications, a leading Telecom Service company recently came to Globus to have new SAP based database software to be developed for them Introduction Peter carefully reviewed and analyzed Maxwell’s requirements and came up with a Project Plan Introduction Now, the only thing that Peter needed to go ahead with starting the project and develop the software was the client’s approval of the Project Plan Introduction Peter held a meeting with the clients to discuss the Project Plan and gain overall approval for the terms and conditions of the Project Introduction The client was in a hurry to get the software Peter tried to negotiate upon broader deadlines but due to client’s pressure, he ultimately agreed to finish the project as per their requested deadlines Introduction When the project was under progress, Peter and his team realized that the deadlines that he had agreed upon are nearly impossible to meet Introduction Peter and his team were not able to complete the project as was promised to the client due to which Globus had to pay some penalty for late delivery Real Life Example Stage 3: Bargaining Stage 5: Acceptance Stage 4: Closure Stage 3: Bargaining Stage 2: Inquiry Stage 1: Meeting At this stage, Peter should now agree to terms that are completely acceptable and offer options and tradeoffs for things that are unacceptable as is stated by the client Real Life Example Stage 3: Bargaining Stage 5: Acceptance Stage 4: Closure Stage 3: Bargaining Stage 2: Inquiry Stage 1: Meeting Peter should mak e sure that he as certains his position and take At this stage, agree to s a staPeter nd in should agreeinnow g to only possible and acce terms that acceptable and ptabare le dcompletely eadlines, cu rrent scope, terms regarding fu offer options tradeoffs for ture eand nhancements etcthings that are unacceptable as is stated by the client Real Life Example Stage 4: Closure Stage 5: Acceptance Stage 4: Closure Stage 3: Bargaining Bargaining Stage 2: Inquiry Stage 1: Meeting At this stage, it is important that both the client and Peter restate their positions and confirm their tradeoffs they are willing to negotiate Real Life Example Stage 4: Closure Stage 5: Acceptance Stage 4: Closure Stage 3: Bargaining Bargaining Stage 2: Inquiry Stage 1: Meeting So, agreement sh ould be achieved on the agreed deadlines, curren t scope, terms re garding future enhancements e tc It should be a greedthat upoboth the partieAt stage, it is important n by the both s ththis at th e discussed and a greepositions would now client restate their d upon teand rms be dand raftePeter d into a legal and bindwilling contract beconfirm their tradeoffs they are ing to tween th e two parties negotiate Real Life Example Stage 5: Acceptance Stage 5: Acceptance Stage 4: Closure Stage 3: Bargaining Stage 2: Inquiry Stage 1: Meeting At this final stage of the negotiation process, Peter should make sure that both the parties agree to signoff the deal and reach an agreement on the terms of the Project Negotiation Outcomes The given image shows the various options of possible outcomes with respect to the parties involved in a negotiation WIN LOSE WIN We Both Win I Win, You Lose LOSE ME YOU I Lose, You Win We Both Lose Objective • • • • • • • • • • • • • • • Explain What is Negotiation Explain the Basic Principles of Negotiation Describe the Benefits of Negotiation Explain the Types of Negotiation Strategies Explain the Stages of the Negotiation Process the Concepts of a Win-Win Describe Negotiation Explain the Various Styles of Negotiation Explain What is BATNA Describe Strategies for Developing Negotiation Skills of Third Party Explain the Types Explain the PROBE Technique for Negotiating Describe the Negotiations in Organizations List the Issues in Negotiation List the Characteristics of a Good Negotiator List the Tips for Effective Negotiation Critical Concepts of Win-Win Negotiation The following are the five most critical concepts that you should keep in mind for a win-win negotiation: Pause for reflection Control the outcome Agree on factual information Let’s look at each in detail Search for needs and requirements Clarify your objectives in the beginning Critical Concepts of Win-Win Negotiation Pause for Reflection Control the outcome Agree on factual information Pause for Refection Search for needs and requirements Clarify your objectives in the beginning • Ask the questions: o What you want from this meeting? o What resistances you envisage? o What will you to overcome these resistances? Critical Concepts of Win-Win Negotiation Pause for reflection Control the outcome Agree on factual information Search for needs and requirements Search for needs and requirements Clarify your objectives in the beginning • Ask the questions: o What are my needs and requirements? o What are the needs and requirements of the other party? o What we have in common? o What are the biggest gaps? Critical Concepts of Win-Win Negotiation Pause for reflection Control the outcome Agree on factual information Clarify your objectives in the beginning Search for needs and requirements Clarify your objectives in the beginning • Ask the questions: o What are the most important issues that need to be discussed? o What are the most important issues to the other party? o What are the levels of potential outcomes? Critical Concepts of Win-Win Negotiation Pause for reflection Agree on factual information • Ask the questions: o Have I examined all arguments that I intend to use during the meeting? o Which of the arguments are assumptions? o Which of the arguments are facts? Control the outcome Agree on factual information Search for needs and requirements Clarify your objectives in the beginning Critical Concepts of Win-Win Negotiation Pause for reflection Control the outcome • Ask the questions: o What elements of timing can you control? o What is the best combination or channel? Control the outcome Agree on factual information Search for needs and requirements Clarify your objectives in the beginning Roll your mouse over the icon, to learn more Tip llow o f n ca to u s i o y n that egotiatio y s e c cti Tr ln a r u f n p s o t s c ce tiati e phone be s u o e s g h e t d h ’n an of One effective e-to-face ng over t u to ati ac n f ‘ a ti s yo o p r a l g o e f e e h v id n person s o y v by a a r e n alw est and i t g be ial tin n c a b o a ti r s f r o u , e yo age er cues Neg other p u l g i n a a or em tand the is body l , and oth tting an rs ge rh on unde ng out fo l intonati beter by inking a h hi watc sions, voc negotiate erson is t s p u expre n help yo the other ca hat w that o t t in h g i s in ManagementStudyGuide.co m Learn Learn Management Management the the Easy Easy Way Way –– A A Continuous Continuous Learning Learning for for People People of of Any Any Age Age Group Group –– Learn Learn At At Your Your Own Own Pace… Pace… You You have have Completed Completed the the Course Course on on Basics Basics of of Negotiation Negotiation Skills Skills To To view view the the Complete Complete Real Real Life Life Example Example and and Learn Learn more more about about the the Negotiation Negotiation Skills Skills (209 (209 Slides), Slides), Join Join Premium Premium Membership and and Get Get Access Access to to Complete Complete Course Course on on Negotiation Negotiation Skill Skill + + 80 80 Other Other Courses Courses