Negotiation Skills. Training Manual Corporate Training Materials

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1 Negotiation Skills Training Manual Corporate Training Materials

2 TABLE OF CONTENTS Module One: Getting Started...1 Workshop Objectives... 2 Pre-Assignment... 3 Module Two: Understanding Negotiation...4 The Three Phases... 6 Skills for Successful Negotiating... 6 Module Three: Getting Prepared...9 Establishing Your WATNA and BATNA Identifying Your WAP Identifying Your ZOPA Personal Preparation Module Four: Laying the Groundwork Setting the Time and Place Establishing Common Ground Creating a Negotiation Framework The Negotiation Process Module Five: Phase One Exchanging Information Getting off on the Right Foot What to Share What to Keep to Yourself Module Six: Phase Two Bargaining What to Expect Techniques to Try... 28

3 How to Break an Impasse Module Seven: About Mutual Gain Three Ways to See Your Options About Mutual Gain What Do I Want? What Do They Want? What Do We Want? Module Eight: Phase Three Closing Reaching Consensus Building an Agreement Setting the Terms of the Agreement Module Nine: Dealing with Difficult Issues Being Prepared for Environmental Tactics Dealing with Personal Attacks Controlling Your Emotions Deciding When It s Time to Walk Away Module Ten: Negotiating Outside the Boardroom Adapting the Process for Smaller Negotiations Negotiating via Telephone Negotiating via Module Eleven: Negotiating on Behalf of Someone Else Choosing the Negotiating Team Covering All the Bases Dealing with Tough Questions Module Twelve: Wrapping Up Words from the Wise... 58

4 Success in business requires training and discipline and hard work. But if you re not frightened by these things, the opportunities are just as great today as they ever were. David Rockefeller Module One: Getting Started Welcome to the Negotiation Skills workshop. Although people often think of boardrooms, suits, and million dollar deals when they hear the word negotiation, the truth is that we negotiate all the time. For example, have you ever Decided where to eat with a group of friends? Decided on chore assignments with your family? Asked your boss for a raise? These are all situations that involve negotiating! This workshop will give participants an understanding of the phases of negotiation, tools to use during a negotiation, and ways to build win-win solutions for all those involved.

5 Workshop Objectives Research has consistently demonstrated that when clear goals are associated with learning that the learning occurs more easily and rapidly. With that in mind, let s review our goals for today. By the end of this workshop, you will be able to: Understand the basic types of negotiations, the phases of negotiations, and the skills needed for successful negotiating Understand and apply basic negotiating concepts: WATNA, BATNA, WAP, and ZOPA Lay the groundwork for negotiation Identify what information to share and what to keep to yourself Understand basic bargaining techniques Apply strategies for identifying mutual gain Understand how to reach consensus and set the terms of agreement Deal with personal attacks and other difficult issues Use the negotiating process to solve everyday problems Negotiate on behalf of someone else

6 Pre-Assignment The purpose of the pre-assignment is to get you thinking about negotiation. Take a few minutes and think about the following questions: 1. What do you think are the characteristics of a successful negotiator? 2. I believe that my negotiation skills are effective in the following areas 3. These skills are measurable in the following ways:

7 Information is a negotiator s greatest weapon. Victor Kiam Module Two: Understanding Negotiation Before we get started, let s take a look at two basic types of negotiation. We ll consider the three phases of negotiation and the skills you need to become an effective negotiator.

8 Types of Negotiations The two basic types of negotiations require different approaches. Integrative negotiations are based on cooperation. Both parties believe they can walk away with something they want without giving up something important. The dominant approach in integrative negotiations is problem solving. Integrative negotiations involve: Multiple issues. This allows each party to make concessions on less important issues in return for concessions from the other party on more important issues. Information sharing. This is an essential part of problem solving. Bridge building. The success of integrative negotiations depends on a spirit of trust and cooperation. Distributive negotiations involve a fixed pie. There is only so much to go around and each party wants as big a slice as possible. An example of a distributive negotiation is haggling over the price of a car with a car salesman. In this type of negotiation, the parties are less interested in forming a relationship or creating a positive impression. Distributive relationships involve: Keeping information confidential. For example, you don t want a car salesman to know how badly you need a new car or how much you are willing to pay. Trying to extract information from the other party. In a negotiation, knowledge truly is power. The more you know about the other party s situation, the stronger your bargaining position is. Letting the other party make the first offer. It might be just what you were planning to offer yourself!

9 The Three Phases The three phases of a negotiation are: Phase One: Exchanging Information Phase Two: Bargaining Phase Three: Closing These phases describe the negotiation process itself. Before the process begins, both parties need to prepare for the negotiation. This involves establishing their bargaining position by defining their BATNA, WATNA, and WAP (see Module Three). It also involves gathering information about the issues to be addressed in the negotiation. After the negotiation, both parties should work to restore relationships that may have been frayed by the negotiation process. It is essential to pay attention to all the phases of negotiation. Without the first phase, the exchange of information and the establishment of bargaining positions, the second phase cannot happen in any meaningful sense because no-one knows where they stand. It sets a scene for demands to be manageable and reasonable. Negotiations are, after all, about the art of the possible. Without the third phase, anything that has been decided during phase two cannot be formalized and will not take hold leading to the necessity for further negotiation or an absolute breakdown in a relationship.

10 Skills for Successful Negotiating These are some of the skills needed for successful negotiating. If participants do not mention any of these, add them to the list yourself. Key skills include: Effective speaking Effective listening A sense of humor A positive attitude Respect Self-confidence Emotional intelligence Persistence Patience Creativity Without the above factors, negotiations will be difficult if not impossible. The necessity for negotiation arises because neither party will be able to get everything they want. Knowing that there must be concessions, each party in the negotiation is required to adopt an attitude of understanding that they must get the best deal possible in a way which is acceptable to the other party. The importance of effective speaking and listening is clear; it is necessary to establish what you are looking for and what you are prepared to accept, while understanding what the other parties will be happy with.

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