Corporate E-Learning

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.

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.

Like any challenging task, negotiation requires preparation. Before you begin a negotiation, you need to define what you hope to get out of it, what you will settle for, and what you consider unacceptable. You also need to prepare yourself personally. The key to personal preparation is to approach the negotiation with self-confidence and a positive attitude. Without this preparation, you will end up giving more than you get from negotiations. It may be unavoidable that you will have to give up more than you would ordinarily be willing to, but finding the balance between acceptable concessions and getting the best deal for yourself relies on you being ready to go into negotiations with the strongest bargaining position you can.

In the previous module, we looked at the importance of establishing your bargaining position. In this module we consider other aspects of preparation: setting the time and place, establishing common ground, and creating a negotiating framework. Even at this early stage it is important to have certain principles in place. If you allow them to be compromised, then you will already have put yourself in a position where you can be considered as prey for hostile negotiators. Getting the groundwork in place may seem like a formality, but it is the first stage of negotiations, and therefore as much a part of the arrangements as any other.

The first phase in a negotiation involves an exchange of information. Both sides state their positions on the issues being addressed in a non-confrontational way. The tricky part of this phase is deciding what to reveal and what to hold back. The “poker” metaphor for negotiating is a very good one, because it describes exactly the way that negotiating parties will want to “allow” each other to think. The information you share with your negotiating counterpart will allow them to read a certain amount about your position. You cannot negotiate blindly, after all. However, too much information given away can really come back to bite you.

Now we have reached the heart of the negotiation process. This phase — bargaining — is what most people mean when they talk about negotiation. This module explains what to expect when you begin to bargain and what to do if you run into an impasse. It also describes some common bargaining techniques used by experienced negotiators.

In their classic book Getting to Yes, Roger Fisher and William Ury argue that most negotiations are not as efficient or as successful as they might be because people tend to argue about positions rather than interests. Once the parties in a negotiation commit themselves to a position, they feel that changing their position represents failure. Instead, Fisher and Ury suggest that the parties in a negotiation focus on their interests. What can we get out of the negotiation that will further our interests? That is the question that should guide a negotiation toward achieving mutual gain.

The final phase of a negotiation is a time for reaching consensus and building an agreement. A little hard work in this phase can ensure that the negotiation achieves it desired results. Closing a negotiation can mean two different things: First it may be a question of how to bring different ideas to a mutually agreed conclusion. A second possibility view of ‘closing’ is what means negotiating parties can use to acknowledge or formalize the idea that agreement has been reached. Recognizing that parties have reached agreement can be quite simple. One can ask the other(s), “Then, have we reached agreement?” The parties can shake hands, make a public announcement, or sign a document. The real issue is that each has to make it clear to other negotiators that a mutually agreed conclusion has indeed been reached.

Most people are willing to negotiate in good faith. They don’t resort to tricks or intimidation. Every once in a while, though, you might encounter someone who takes a less principled approach. You need to be prepared to deal with people who don’t play fair. It is not cynicism to prepare for the possibility that someone will try to bend the rules, especially when those rules are unwritten. It is simply good preparation, and realism. Some people are unscrupulous, but if you know how to handle them it need not be the end of the world.

Negotiating isn’t just something that takes place in conference rooms with powerful forces aligned on either side of a table. People have informal negotiations every day — with their coworkers, merchants, even family members.

Negotiating on behalf of someone else presents some special challenges. When you begin such a negotiation, you need to have a clear idea of your Walk Away Price (WAP) and the concessions you have permission to make. You also need to be sure you understand the issues well enough to respond to tough questions that may come up in the negotiation. If you are assembling a team to assist in the negotiation, you need to select people who have the expertise and the temperament to move the negotiation forward. It is not unlike selecting an army unit, in some ways. When going into battle, you want to have people nearby who will ensure that your interests are protected. It is said that a chain is only as strong as its weakest link, and this is a good principle to take with you into negotiations.

Although this workshop is coming to a close, we hope that your journey to improve your project management skills is just beginning. Please take a moment to review and update your action plan. This will be a key tool to guide your progress in the days, weeks, months, and years to come. We wish you the best of luck on the rest of your travels!