Skills and information workshops: Transforming Rehabilitation (TR) Negotiation Skills February 2014

Transcription

1 Skills and information workshops: Transforming Rehabilitation (TR) Negotiation Skills February 2014

2 Agenda Welcome, housekeeping and introductions 5 mins Update on ISPA 10 mins A Definition of Negotiation 20 mins A Good Negotiator 20 mins Phases of Negotiation 15 mins Break 20 mins Phases of Negotiation cont. 20 mins Negotiation DOs & DON Ts 15 mins Q&A session 30 mins Finish 16.00

3 Update on Industry Standard Partnering Agreement Draft Industry Standard Partnering Agreement under consultation 10 th January 20 th February: Intended to be used for subcontracting arrangements. Aims to promote fair practices and assist in the development of diversity and transparency within supply chains. Developed in line with MoJ Market Stewardship principles. Contractual requirement for tier 1 organisations to use the ISPA when subcontracting with organisations at lower tiers of subcontracting. Recommended for further subcontracting within the supply chain.

4 Update on Industry Standard Partnering Agreement Recommends minimum 3 year contracts for subcontractors. 6 months notice to terminate contracts (with Authority approval). Elements mirror head contract between Tier 1 and MoJ: Annual Plans and Reports, Data Protection and IPR, Confidentiality. Key section: Schedule 2, Industry Standard Partnering Agreement Questionnaire Checklist to confirm all risks to subcontractor have been identified, quantified, and impact on their business has been considered e.g. Level of support from Tier 1 to subcontractor Risk is proportionate to services and payment Volumes are confirmed Service levels are realistic

5 Definitions of Negotiation The process by which two or more parties attempt to achieve agreement on matters of mutual interest. Negotiation takes place when two or more people, with differing views, come together to attempt to reach agreement on an issue. It is persuasive communication or bargaining.

6 A Definition of Negotiation

7 Negotiation Skills Negotiation is about getting the best possible deal in the best possible way. You don t get what you deserve, you get what you negotiate!

8 Negotiation Skills What have you negotiated: What have you successfully negotiated? What helped enable your successful negotiation?

9 Negotiation Skills Two main types of negotiation: Distributive / Adversarial (win: lose) Integrative / Co-operative (win: win) Key to successful negotiations: Perceived mutual benefit Perceived individual benefit Willingness to explore alternative solutions Willingness to agree to disagree (on occasion)

10 A GOOD NEGOTIATOR

11 Negotiation Skills what makes a good negotiator?

12 Negotiation Skills a good negotiator A good negotiator: Is thoroughly prepared for each of the four phases. Has an assertive negotiation style. Has clear exit points and a willingness to walk away.

13 Negotiation Skills a good negotiator In groups take 10 minutes to brainstorm a list of the 10 key skills that successful negotiators need. List the key skills and note the reason why each of your ten skills is crucial to you as a negotiator.

14 Negotiation Skills ten negotiating skills Planning Integrity Thinking under stress Verbal clarity Practical sense Ability to gain respect Leadership skills Tact Ability to exploit power Open mind

15 4 PHASES OF NEGOTIATION

16 Negotiation Skills Four phases of negotiation Preparation what do we want? Discussion what do they want? Proposal what could we trade? Bargain & Close what will we trade?

17 Negotiation Skills - Preparation: What do we want? Consider: What do you want? What do they want? Why should they work with you? What are your priorities (what is valuable to you)? What are their priorities (is it also valuable to them)? How much flexibility does either party have? What are your Entry and Exit points?

18 Negotiation Skills - Preparation, priorities & exit points Establish priorities in three categories: Essential high importance failure to secure means exit. Highly desirable medium importance nice to have but not critical. Desirable low importance failure won t put the deal at risk. Consider the Tier 1 s potential priorities, are any of their deal breakers in conflict with your own?

19 Negotiation Skills - Preparation: priority mapping Negotiating Point 1 Dream scenario 2 - Outcome where you might proceed 3 - Outcome where you might walk away Essential Payment terms, need money up front for cash flow P P X Quantity P P X Highly Desirable Price P X X Monitoring P P P Approach P X X Desirable Brand P X X Flow of customers P X X Communications P X P IPR P X P

20 Negotiation Skills - Preparation: them and us In securing / delivering Transforming Rehabilitation contracts: What is most important to you (as subcontractors)? What is most important to them (as Tier 1 contractors)?

21 BREAK

22 Negotiation Skills - Discussion Likely that majority of discussions / negotiations in Transforming Rehabilitation done by telephone or . Get face to face meetings wherever possible. Agree purpose of meeting - e.g. discuss and clarify, or conclude deal? Ensure correct people attend, and they are clear on the limits of their authority.

23 Negotiation Skills Discussion interpersonal skills

24 Negotiation Skills Discussion: interpersonal skills Use meetings and interpersonal skills to: Establish a rapport people buy from people. Test their willingness to negotiate. Listen and validate assumptions. Understand their perspective (and empathise). Identify their problems (and develop solutions).

25 Negotiation Skills Discussion: interpersonal skills Identify who and how to deal with the various people, and who you are: Avoider: dislikes conflict. Compromiser: fair-minded people interested in maintaining relationships. Accommodator: resolve interpersonal conflicts by resolving the other person s problem. Competitor: winning is the main thing. Problem-Solver: seeks to find the underlying problem, use brainstorming to solve.

26 Negotiation Skills - Proposal Conditional proposals use if followed by then : if you agree to then I will agree to Unconditional proposals: Unconditional demand - I must insist on / you will counter with if/then). Unconditional offer - we ll give you

27 Negotiation Skills - Proposal

28 Negotiation Skills - Proposal Aim high to begin with it is easier to lose ground than gain but be realistic. Give concessions reluctantly however low a priority they are. Make proposals with open questions such as: what would happen if we? suppose we were to what would be the result of? Be clear on what has been proposed and regularly check agreement.

29 Negotiation Skills Bargain & Close

30 Negotiation Skills Bargain & Close By aiming high, negotiators create sufficient room to make and request the necessary concessions. Negotiators with high aspirations consistently outperform those with low aspirations. High aspirations generate a positive state of mind and prevent a negotiator from being rigid and defensive. Remember the value of compromise, particularly when dealing with stone-walls: what would need to happen for you to be willing to negotiate over this?

31 Negotiation Skills Bargain & Close Be bullish, but not pig-headed. Trade concessions, don t give them up freely. Be prepared to concede on some things and push hard on others. Remember your exit points, and be ready to walk away. Remember why you re there. Get everything in writing!!

32 Negotiation Skills Do s Prepare Set your negotiables Set your entry and exit points Set your priorities Set your strategy and tactics Set your roles and responsibilities Estimate their entry and exit points Estimate their priorities Find out their roles and authority Consider their interests Consider their drivers Be prepared to mediate

33 Negotiation Skills Don ts Argue with them Argue among your team Lie or overstate your capabilities Feel rushed / pressured into making concessions Make only unconditional demands Take an aggressive approach to negotiation Assume they want the same outcome as you

34 Negotiation Skills Walking away Remember!! Walking away doesn t mean you can never go back. But once you sign a deal you re stuck with it.

35 Q & A

36 We will be sending you a survey to gather your feedback on this event. Please do let us know what you think. You can also send any additional questions you may have to TRquestions@acevo.org.uk Briefing packs including a full Q&A document will be published after this set of events at

37 Contact details and links

38 Mike Harvey, Director Candour Collaborations Natasha Newson, Director Candour Collaborations Emily Jolley, Director ACEVO Solutions Sally Gibbs, Associate Director ACEVO Solutions Ruth Breidenbach-Roe, Public Services and Partnerships NCVO For any questions you have following this event contact Recommended reading / links: MoJ Transforming Rehabilitation Industry Standard Partnering Agreement (ISPA) KnowHow NonProfit Guide - Negotiating with prime contractors