i剑桥国际商务英语 unit 14 negotiations
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Unit 14 Sales and negotiation
1
Negotiation defined as…
decision making “a form of __________ ______________ two in which _____ or more parties talk with resolve one another in an effort to __________ interests ” their opposing _________
8
How many triangles do you see here ?
9
Understanding Key Motivators
Think back to the last time you were blindsided by an unexpected motivator. What was it?
Tips: •Don’t lose your cool (remember the swan!). •Try to defuse with acknowledgement, empathy, patience, impartiality. •Consider dealing with less emotional issues first •Know your own “Hot Buttons” •Practice (consider Toastmasters, etc)
4
Negotiating Challenges for a PM
1. Trade-offs between Scope, Time, Costs, and Quality 2. “Build or buy” decisions 3. Change Management 4. Resource prioritizations 5. Catch-up and Overtime needs 6. Contract overuns 7. Budget cuts 8. Vendor Selection 9. Bonuses and pay scales 10. Work Space and equipment 11. Risk Management strategies 12. Family and Friends 13. Other!
You have 60 seconds to negotiate. Are you ready to begin? Go! • Who reached a win-win agreement in 45 seconds? • What made this a difficult task?
3
Next time I suggest you try “Win-Win” Negotiating”
11
He should be a good learner and observer. Should know the body language of the people at the negotiation process. Should be open and flexible and yet firm. Exercise great patience, coolness and maturity. Should possess leadership qualities.
Typical tangible motivators: •Fiscal impacts (Enterprise & for their own or department) •Workload/Overtime/training/vacation impact •Contractual/Organizational issues, etc Less Tangible: •Desire to be heard and have their needs acknowledged •Desire to save face/look good in the eyes of others •Resistance to change (fear of unknown/untried) •Desire to satisfy their own or bosses hidden agenda •Biases, dislikes, ethnic customs, political alliances, etc •Emotional (and why should they trust you?) TIP: Learn to read body language
(Lewicki, Barry and Saunders, 2010, p. 3)
2Байду номын сангаас
Negotiations Mixer
TASK: In your teams of 3 (or 4), negotiate with your partners to decide how you would divide this $100 among you. Once you have agreement, all 3 of you stand up.
10
Handling Emotions
Emotional Challenges
Anger/exasperation Insulted Guilt False flattery
Recommended Response
Allow venting. Probe for why What wouldn’t be insulting? Focus on issues Re-focus
What do you consider to be your toughest challenge?
5
The Pre-Negotiation Planning Phase
•Decide if Subject Matter Expert involvement required •Research options/issues and precedence's •Understand the motivators of affected stakeholders •Know impact of each option (time, cost, quality, scope) •Risk/opportunity assessments •Timing issues (urgency, best time to meet, etc) •Summarize pros and cons •Cultural considerations (people and Enterprise) •Formulate strategy based on knowledge of the stakeholders •Pre-meeting info dissemination •Invite appropriate empowered representatives •Set conducive agenda, facilities, timeslot, and refreshments •Plan for timely post negotiation action •Plan for analysis of “lessons learned” after negotiating
6
Some Negotiating lessons are tough to take...
7
Perception : Putting yourself into their shoes
Tenant’s perception 1.The rent is already too high. 2.The apartment needs painting 3.I know people who pay less for a similar place 4.I always pay the rent when she asks for it 5.She is a cold and distant person, never asks how I am doing 6.I am a desirable tenant, don’t have any cats and dogs 7.With costs going up, I can’t afford to pay more for housing Landlady’s perception 1.The rent has not been increased for a long time. 2.He has given that apartment heavy wear and tear. 3.I know people who pay more for a similar place 4.He never pays unless I ask for it 5.I am a considerate person, who never intrudes on a tenant’s privacy 6.His loud music drives me crazy 7.With costs going up, I need more rental income
12
Should control emotions and not show his weaknesses. Should bargain from the position of strength. Should know and anticipate the pros and cons of his each move and its repercussions. Should know how to create the momentum for the negotiations and must know when to exit and where to exit by closing the talks successfully.
13
Should build trust and confidence. Should be confident and optimist. Should have clear cut goals and objectives. If necessary, he should provide a face saving formula for his counter party. Should be able to grasp the situation from many dimensions. Should know human psychology and face reading
14
Should not be a doubting Thomas. Should plan and prepare thoroughly with relevant data and information to avoid blank mind in the process. Should radiate energy and enthusiasm and must be in a position to empathize with his opponents. Should be a patient listener.
15
Negotiating around Fixed Positions
Probe for the beliefs and goals behind the fixed position. Example of a fixed position: “I will not agree to outsource, regardless of savings” Surface goal: “Not to be burned the way we were 5 years ago” Underlying belief: “Work is controllable if we do it in-house” Underlying goals: To have control, stability, minimum risk, and not have to lay-off anyone.
1
Negotiation defined as…
decision making “a form of __________ ______________ two in which _____ or more parties talk with resolve one another in an effort to __________ interests ” their opposing _________
8
How many triangles do you see here ?
9
Understanding Key Motivators
Think back to the last time you were blindsided by an unexpected motivator. What was it?
Tips: •Don’t lose your cool (remember the swan!). •Try to defuse with acknowledgement, empathy, patience, impartiality. •Consider dealing with less emotional issues first •Know your own “Hot Buttons” •Practice (consider Toastmasters, etc)
4
Negotiating Challenges for a PM
1. Trade-offs between Scope, Time, Costs, and Quality 2. “Build or buy” decisions 3. Change Management 4. Resource prioritizations 5. Catch-up and Overtime needs 6. Contract overuns 7. Budget cuts 8. Vendor Selection 9. Bonuses and pay scales 10. Work Space and equipment 11. Risk Management strategies 12. Family and Friends 13. Other!
You have 60 seconds to negotiate. Are you ready to begin? Go! • Who reached a win-win agreement in 45 seconds? • What made this a difficult task?
3
Next time I suggest you try “Win-Win” Negotiating”
11
He should be a good learner and observer. Should know the body language of the people at the negotiation process. Should be open and flexible and yet firm. Exercise great patience, coolness and maturity. Should possess leadership qualities.
Typical tangible motivators: •Fiscal impacts (Enterprise & for their own or department) •Workload/Overtime/training/vacation impact •Contractual/Organizational issues, etc Less Tangible: •Desire to be heard and have their needs acknowledged •Desire to save face/look good in the eyes of others •Resistance to change (fear of unknown/untried) •Desire to satisfy their own or bosses hidden agenda •Biases, dislikes, ethnic customs, political alliances, etc •Emotional (and why should they trust you?) TIP: Learn to read body language
(Lewicki, Barry and Saunders, 2010, p. 3)
2Байду номын сангаас
Negotiations Mixer
TASK: In your teams of 3 (or 4), negotiate with your partners to decide how you would divide this $100 among you. Once you have agreement, all 3 of you stand up.
10
Handling Emotions
Emotional Challenges
Anger/exasperation Insulted Guilt False flattery
Recommended Response
Allow venting. Probe for why What wouldn’t be insulting? Focus on issues Re-focus
What do you consider to be your toughest challenge?
5
The Pre-Negotiation Planning Phase
•Decide if Subject Matter Expert involvement required •Research options/issues and precedence's •Understand the motivators of affected stakeholders •Know impact of each option (time, cost, quality, scope) •Risk/opportunity assessments •Timing issues (urgency, best time to meet, etc) •Summarize pros and cons •Cultural considerations (people and Enterprise) •Formulate strategy based on knowledge of the stakeholders •Pre-meeting info dissemination •Invite appropriate empowered representatives •Set conducive agenda, facilities, timeslot, and refreshments •Plan for timely post negotiation action •Plan for analysis of “lessons learned” after negotiating
6
Some Negotiating lessons are tough to take...
7
Perception : Putting yourself into their shoes
Tenant’s perception 1.The rent is already too high. 2.The apartment needs painting 3.I know people who pay less for a similar place 4.I always pay the rent when she asks for it 5.She is a cold and distant person, never asks how I am doing 6.I am a desirable tenant, don’t have any cats and dogs 7.With costs going up, I can’t afford to pay more for housing Landlady’s perception 1.The rent has not been increased for a long time. 2.He has given that apartment heavy wear and tear. 3.I know people who pay more for a similar place 4.He never pays unless I ask for it 5.I am a considerate person, who never intrudes on a tenant’s privacy 6.His loud music drives me crazy 7.With costs going up, I need more rental income
12
Should control emotions and not show his weaknesses. Should bargain from the position of strength. Should know and anticipate the pros and cons of his each move and its repercussions. Should know how to create the momentum for the negotiations and must know when to exit and where to exit by closing the talks successfully.
13
Should build trust and confidence. Should be confident and optimist. Should have clear cut goals and objectives. If necessary, he should provide a face saving formula for his counter party. Should be able to grasp the situation from many dimensions. Should know human psychology and face reading
14
Should not be a doubting Thomas. Should plan and prepare thoroughly with relevant data and information to avoid blank mind in the process. Should radiate energy and enthusiasm and must be in a position to empathize with his opponents. Should be a patient listener.
15
Negotiating around Fixed Positions
Probe for the beliefs and goals behind the fixed position. Example of a fixed position: “I will not agree to outsource, regardless of savings” Surface goal: “Not to be burned the way we were 5 years ago” Underlying belief: “Work is controllable if we do it in-house” Underlying goals: To have control, stability, minimum risk, and not have to lay-off anyone.