Principled Negotiation Dr Mark J Nugent

Transcription

1 Principled Negotiation Dr Mark J Nugent 1

2 1. Buying Influences In the complex sale where more than one person is involved from each side, there are usually up to four main roles: Economic Buyer the only one who can say YES User Buyer makes judgements about the impact of your proposal on job performance, can say no Technical Buyer screens out based on specification, can say no Coach acts as a guide for this sale, wants your proposal to win They don t wear badges you have to identify them 2

3 2. Red Flags leverage from strength A Red Flag is a warning that you are in danger. Red flags include: Missing Information Uncertainty about information Any uncontacted buying influence Any buying influence new to the job Reorganisation Red Flags are warnings. Locate your strengths and use these to remove your Red Flags 3

4 3. Response Modes Your supplier or customer will have differing levels of receptivity to your proposal. These are called Response Modes. They are based on the discrepancy between today s reality, as perceived by the other side, and the results they need. If they see your proposal reducing the discrepancy, they will act. Growth Mode - discrepancy is high high probability of taking action Trouble Mode - discrepancy is high high probability of taking action Even Keel discrepancy is low low probability of taking action Overconfident Mode no discrepancy nil probability of taking action Look for Growth or Trouble as your greatest opportunity 4

5 4. Win-Result The Win-Result is a development from the Win-Win position. Resultsimpact your customers business processes, are measurable and are corporate. A Winis the fulfilment of a promise made to oneself. It is intangible and personal. If you can determine and make explicit the Win that each buying influence will gain by adopting your proposal, you will be highly differentiated, regardless of your technological differentiation. Companies get results, but only people win. This is probably your greatest source of differentiation. 5

6 5. Separate People from the Problem Arguing over positions produces unwise agreements. Arguing over positions is inefficient. Arguing over positions damages relationships. There is an alternative People separate people form the problem Interests focus on interests, not positions Options generate a variety of possibilities before deciding what to do Criteria insist that the result be based on some objective standard Principled negotiation generates better results and better relationships 6

7 6. Position vs Interest For a wiser solution, reconcile interests, not positions. Behind opposed positions lie shared and compatible interests as well as conflicting ones. Acknowledge the other party s interests as part of the problem. Be hard on the problem, soft on the people. 7

8 7. Options, options, options Invent options for mutual gain. Avoid thinking you know the right answer. Don t assume there s only one correct answer. Don t assume the pie is fixed. Always look for mutual gain. Dovetail differing interests, e.g. on timescale up-front payments vs ongoing payments. Evaluate options from the other side s point of view how would they be criticised if they adopted it. Avoid the single, correct answer. The more options you generate, the greater the chances of doing a deal. 8

9 8. Use Objective Criteria Develop objective criteria, e.g. Fair standards market value, equal treatment etc Fair procedures children dividing a cake: one cuts, the other chooses Negotiate with objective criteria frame each issue as a joint search for objective criteria; reason and be open to reason; never yield to pressure, only to principle. You are likely to reach a wise agreement as judged by any objective standard if you first take that standard into account 9

10 9. What If They Have More Power Develop your BATNA (Best Alternative to a Negotiated Agreement). Invent a list of actions you could conceivable take if no agreement is reached. Improve some of the more promising ideas and convert them into practical alternatives. Select the one that seems the best. Consider the other side s BATNA. Developing your BATNA is the most effective course of action you can take in dealing with a seemingly more powerful negotiator. The better your BATNA, the greater your power. 10

11 And finally... Principled Negotiation a Summary Dirty Tricks/Those Who Won t Play If the other side uses a tricky tactic: a) recognise the tactic, b) rise the issue explicitly and c) question the tactic s legitimacy and desirability. Some common tricky tactics Deliberate deception Phone facts Ambiguous authority Personal attacks Creating stressful environments Threats Don t be a victim. Be prepared to fight dirty bargaining tactics. It is easier to defend principle than an illegitimate tactic. 11

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13 Dr Mark J Nugent mark@weareppp.com blog.weareppp.com 13