Local Buy Conference 2015 Negotiation Skills and Strategies Rachel Collis
Negotiation is an interpersonal decision making process when we cannot achieve our objectives singlehandedly (Thompson, 2012)
However much you think negotiation is part of your life, you re underestimating (Walker, 2003)
Your experience What are you currently doing that works in your contract and tender negotiations? What have you found doesn't work?
The problem: Fewer than 4% of managers reach win:win outcomes when tested (Nadler, Thompson, & Van Bowen,2003) 20% of deals are lose:lose without the negotiators realising it (Thompson & Hrebec,1996)
Negotiation is a wicked learning environment
The solution Science!
Distributive Skills Claiming Value
Integrative Skills Creating value Lorem Ipsum Dolor big pie
Claiming Value
4 Strategies for Creating Value
4 Strategies for Claiming Value
4 Strategies for Creating Value
The Orange Story
1. Identify underling interests & unbundling
Lorem Ipsum Dolor 2. Logrolling
3. Ask Good Questions Only 7% of negotiators seek information about the other parties preferences Thompson,2013
Arguing!
I am right
You are wrong
3. Ask Good Questions Needs Interests Priorities Thompson,2013
Consider asking: What do you hope we will achieve here? Can you tell me why you want that? Can you explain why that is important to you? Which aspects of this are most important to you? What are your concerns? What are you concerned could go wrong here? If you had x then what would it do for you? What about that is important to you?
You are trying to find out relevant information including: What outcome does the other party really want or need? Why is that important? What are their priorities? What don t they want to happen? Why is that important? What do other affected people want/not want to happen? What will happen if you don t resolve this? What other options do they have?
Pick a conflict in your life: Tell me a little about the conflict, what are you trying to accomplish? Why is that important to you? What are you asking the other person in your conflict to do? If you got what you wanted then what would it do for you? How would things be different for you? What are your most important priorities in this? What are you concerned could go wrong? What about that is important to you? Listener - After each response paraphrase back what you heard
3b. Share Information
Share: What you want? Why you want it? What your priorities are The key facts - to help them understand what is fair
4. Take perspective
Using the same conflict: Now answer the questions from their perspective: What are you trying to accomplish? Why is that important to you? What are you asking the other person in your conflict to do? If you got what you wanted then what would it do for you? How would things be different for you? What are your most important priorities in this? What are you concerned could go wrong? What about that is important to you? Listener - After each response paraphrase back what you heard
4 Strategies for Creating Value Identify interests and unbundle issues Logrolling Ask good questions, share info Take perspective
4 Strategies for Claiming Value
Myth 1: Good negotiators rely on their gut feel
1. Prepare. 80% of your effort Use spreadsheets
Myth 2
2. Make The First Offer..Unless you are hopelessly underprepared or convention says they make the first offer
Lorem Ipsum Dolor An example story
3.Have a Good Plan B - BATNA Best Alternative To a Negotiated Agreement
4. They need to believe it is fair..
What would their victory speech be?
4 Strategies for Claiming Value Prepare well and use a spreadsheet Make the first offer Improve your BATNA and work out what their BATNA is Make them feel it was fair - plan their victory speech
4 Strategies for Creating Value Identify interests and unbundle issues Logrolling Ask good questions, share info Take perspective
Case study
What are you going to do with this information?
Where to find out more 1. Training QUT One day Course Some private providers of negotiation training are good but expensive Some private providers of negotiation training are not good but still expensive Ask Rachel! 2. Reading and viewing list
Thank you!
4. Don t negotiate issues one by one Discuss issues one by one and then create a package deal.
Why it is hard to be fair even when you want to be?