Unit14Salesandnegotiation1Negotiationdefinedas…“aformof________________________inwhich_____ormorepartiestalkwithoneanotherinaneffortto__________theiropposing_________”(Lewicki,BarryandSaunders,2010,p.3)decisionmakingtworesolveinterests2NegotiationsMixerTASK:Inyourteamsof3(or4),negotiatewithyourpartnerstodecidehowyouwoulddividethis$100amongyou.Onceyouhaveagreement,all3ofyoustandup.Youhave60secondstonegotiate.Areyoureadytobegin?Go!Whoreachedawin-winagreementin45seconds?Whatmadethisadifficulttask?3NexttimeIsuggestyoutry“Win-Win”Negotiating”4NegotiatingChallengesforaPMTrade-offsbetweenScope,Time,Costs,andQuality“Buildorbuy”decisionsChangeManagementResourceprioritizationsCatch-upandOvertimeneedsContractoverunsBudgetcutsVendorSelectionBonusesandpayscalesWorkSpaceandequipmentRiskManagementstrategiesFamilyandFriendsOther!Whatdoyouconsidertobeyourtoughestchallenge?5ThePre-NegotiationPlanningPhaseDecideifSubjectMatterExpertinvolvementrequiredResearchoptions/issuesandprecedence'sUnderstandthemotivatorsofaffectedstakeholdersKnowimpactofeachoption(time,cost,quality,scope)Risk/opportunityassessmentsTimingissues(urgency,besttimetomeet,etc)SummarizeprosandconsCulturalconsiderations(peopleandEnterprise)FormulatestrategybasedonknowledgeofthestakeholdersPre-meetinginfodisseminationInviteappropriateempoweredrepresentativesSetconduciveagenda,facilities,timeslot,andrefreshmentsPlanfortimelypostnegotiationactionPlanforanalysisof“l(fā)essonslearned”afternegotiating6SomeNegotiatinglessonsaretoughtotake...7Perception:PuttingyourselfintotheirshoesTenant’sperceptionTherentisalreadytoohigh.TheapartmentneedspaintingIknowpeoplewhopaylessforasimilarplaceIalwayspaytherentwhensheasksforitSheisacoldanddistantperson,neveraskshowIamdoingIamadesirabletenant,don’thaveanycatsanddogsWithcostsgoingup,Ican’taffordtopaymoreforhousingLandlady’sperceptionTherenthasnotbeenincreasedforalongtime.Hehasgiventhatapartmentheavywearandtear.IknowpeoplewhopaymoreforasimilarplaceHeneverpaysunlessIaskforitIamaconsiderateperson,whoneverintrudesonatenant’sprivacyHisloudmusicdrivesmecrazyWithcostsgoingup,Ineedmorerentalincome8Howmanytrianglesdoyouseehere?

9UnderstandingKeyMotivatorsThinkbacktothelasttimeyouwereblindsidedbyanunexpectedmotivator.Whatwasit?Typicaltangiblemotivators:Fiscalimpacts(Enterprise&fortheirownordepartment)Workload/Overtime/training/vacationimpactContractual/Organizationalissues,etcLessTangible:DesiretobeheardandhavetheirneedsacknowledgedDesiretosaveface/lookgoodintheeyesofothersResistancetochange(fearofunknown/untried)DesiretosatisfytheirownorbosseshiddenagendaBiases,dislikes,ethniccustoms,politicalalliances,etcEmotional(andwhyshouldtheytrustyou?)TIP:Learntoreadbodylanguage10HandlingEmotionsEmotionalChallengesAnger/exasperationInsultedGuiltFalseflatteryRecommendedResponseAllowventing.ProbeforwhyWhatwouldn’tbeinsulting?FocusonissuesRe-focusTips:Don’tloseyourcool(remembertheswan!).Trytodefusewithacknowledgement,empathy,patience,impartiality.ConsiderdealingwithlessemotionalissuesfirstKnowyourown“HotButtons”Practice(considerToastmasters,etc)11Heshouldbeagoodlearnerandobserver.Shouldknowthebodylanguageofthepeopleatthenegotiationprocess.Shouldbeopenandflexibleandyetfirm.Exercisegreatpatience,coolnessandmaturity.Shouldpossessleadershipqualities.12Shouldcontrolemotionsandnotshowhisweaknesses.Shouldbargainfromthepositionofstrength.Shouldknowandanticipatetheprosandconsofhiseachmoveanditsrepercussions.Shouldknowhowtocreatethemomentumforthenegotiationsandmustknowwhentoexitandwheretoexitbyclosingthetalkssuccessfully.13Shouldbuildtrustandconfidence.Shouldbeconfidentandoptimist.Shouldhaveclearcutgoalsandobjectives.Ifnecessary,heshouldprovideafacesavingformulaforhiscounterparty.Shouldbeabletograspthesituationfrommanydimensions.Shouldknowhumanpsychologyandfacereading14ShouldnotbeadoubtingThomas.Shouldplanandpreparethoroughlywithrelevantdataandinformationtoavoidblankmindintheprocess.Shouldradiateenergyandenthusiasmandmustbeinapositiontoempathizewithhisopponents.Shouldbeapatientlistener.15NegotiatingaroundFixedPositionsProbeforthebeliefsandgoalsbehindthefixedposition.Exampleofafixedposition:“Iwillnotagreetooutsource,regardlessofsavings”Surfacegoal:“Nottobeburnedthewaywewere5yearsago”Underlyingbelief:“Workiscontrollableifwedoitin-house”Underlyinggoals:Tohavecontrol,stability,minimumrisk,andnothavetolay-offanyone.Underlyingrealities:Managingthisworkin-houseisacostlypain,andnotourcoreskill.Thesepeoplecanberedeployedonurgentbacklog.Nowyouhavethebasisforanalysisofalternatives,risks,contingencies,developprosandcons,thennegotiate!16OutcomeAnalysisTheyWinTheyLoseYouWinYouLose17WhyWin/Win?1819WhatelsecanIdoifthisdealdoesn'tgothrough?2021LeastAcceptableSettlementSettlementRangeMostSupportablePositionLASMSPBATNA22

BATNAsarenotalwaysreadilyapparent.FisherandUryoutlineasimpleprocessfordeterminingyourBATNA:developalistofactionsyoumightconceivablytakeifnoagreementisreached;improvesomeofthemorepromisingideasandconvertthemintopracticaloptions;andselect,tentatively,theoneoptionthatseemsbest.23PracticeWin-WinNegotiations

EstablishrapportandcommongoalsProbeforunderstandingofbeliefs,goals,win-winoptions,andhiddenstakeholdermotivatorsParaphraseforconfirmation/affirmationAnalyseoutcomesandrisksSummarizewhatwasagreedon,andnextsteps(eveniftheseareonly“babysteps”)Tips:Ifstalled,backuptoafundamentalthatyoucanagreeon(e.g.“Webothwanttomakethisaprofitableventure”)Buildonthiscommonground(recycleifnecessary)Avoidemotionalresponses(evenifinsulted)Considerinterimoptions(orpostponement)ifundesirableoutcomeisimminentorkeyinformationismissing.24ExercisesFormintoteamsof3(4ifnecessary).Negotiationsforascarceresource Thepersonwho’sbirthdayoccursearliestintheyearplaystheroleoftheNegotiatingPM.NextbirthdayisSusan’sManager.Thethird(andfourth?)personsareObserverswhonoteuse/abuseof“win-win”techniques.Background: TheNegotiatingPMhasaProgrammeroffsick,andwantstonegotiatetwoweeksofSusan’stimetoworkontheCompany’smostimportantprojectimmediately,becauseSusanisthebestprogrammer,andknowsthetasks.Delaysmayaffecteveryone’sbonus. Susan’sManagerisconcernedthelossofSusanwillmeanshewillnotbeabletocompletetasksonanotherprojecttheirdepartmentiscommittedtodeliver(requiringoneweekofworkinthenext3weeks),becausetheNegotiatingPMhasareputationofover-utilizingresources(andpaddingtheirschedulecontingency).Othercommitmentswillalsoneedjuggling.25AnalysisofExercise1Susan’sManager’s:Whofeltthingswentverywell?Why?Observers:Leadaconstructivediscussionwithinyourteamonthe“win-win”techniques(2minutes).Establishedrapportandcommongoals?Probedforunderstandingofbeliefs,goals,win-winoptions,andhiddenstakeholdermotivators?Paraphrasedforconfirmation/affirmation?Analyzedoutcomesandrisks?Summarizedwhatwasagreedon,andnextsteps?Ifstalled,returnedtoafundamentalthatwasagreeon?Builtonthiscommonground?Avoidedemotionalresponses(evenifinsulted)?Consideredinterimoptions(orpostponement)ifundesirableoutcomewasimminent,orkeyinfomissing?26Exercise#2Roles.PMfromthepreviousexercisebecomesAnne,a15yearoldgirl.TheObserverbecomesAnne’sparent.OthersareObserverstorecorduse/abuseof“win/win”techniques.Background:AnneiscallinghomefromapayphoneonHwy401totellherparentsheishitch-hikingtoHollywoodtobeamoviestar.Shehasnomoney,isalittleafraid,andsecretlywantstogotodramaschool.TheparentisworriedaboutAnnebeingoutaftercurfew.Parentpicksupthe‘phone,andhas3minutestoeffecta“win-win”approachbeforethepayphonetimesout.27AnalysisofExercise2Anne(s):Whofeltthingswentverywell?Why?Observers:Leadaconstructivediscussionwithinyourteamonthe“win-win”techniques(2minutes).Establishedrapportandcommongoals?Probedforunderstandingofbeliefs,goals,win-winoptions,andhiddenstakeholdermotivators?Paraphrasedforconfirmation/affirmation?Analysedoutcomesandrisks?Summarizedwhatwasagreedon,andnextsteps?Ifstalled,returnedtoafundamentalthatwasagreeon?Builtonthiscommonground?Avoidedemotionalresponses(evenifinsulted)?Consideredinterimoptions(orpostponement)ifundesirableoutcomewasimminentorkeyinformationismissing?28Exercise#3Changeroles.AnnebecomestheObserver.Theparentbecomesadriverwho’scarhasbrokendownatagarage2hoursawayfromToronto.Thelastpersonbecomestheheadmechanicatthegarage.Background:YouhavetobeinTorontoforanimportantmeetingin4hours.Themechanicestimatesitwilltakeanhourtofixyourcar,butthereareseverallocalclientsalreadyexpectingtheircarstobefixedthismorning.Themechanicwantsyourbusiness,butdoesnotwanttoletdownanyoftheregularclients.Time:3minutes29AnalysisofExercise3Mechanics:Whofeltthingswentverywell?Why?Observers:Leadaconstructivediscussionwithinyourteamonthe“win-win”techniques(2minutes).Establishedrapportandcommongoals?Probedforunderstandingofbeliefs,goals,win-winoptions,andhiddenstakeholdermotivators?Paraphrasedforconfirmation/affirmation?Analyzedoutcomesandrisks?Summarizedwhatwasagreedon,andnextsteps?Ifstalled,returnedtoafundamentalthatwasagreeon?Builtonthiscommonground?Avoidedemotionalresponses(evenifinsulted)?Consideredinterimoptions(orpostponement)ifundesirableoutcomewasimminentorkeyinformationismissing?30Exercise#4Rotatethenegotiatorroletobetheproudownerofanewsportscar.Selectsomeonetobeagood

friendwantstoborrowthecaronSaturday.

Background:TheNegotiatorisnotusingthecarthisweekend,butisconcernedthegoodfriendisafastdriver.Thefriendisgenerous,andhasdoneyouseveralfavoursfortheNegotiator,includingarecentbirthdaygift.Time:3minutes31AnalysisofExercise4GoodFriends:Whofeltthingswentverywell?Why?Observers:Leadaconstructivediscussionwithinyourteamonthe“win-win”techniq