Thomas Gille, REAL Systems
Sponsored by Peirce College

After starting the session with an activity that illustrated how easy it is to get wrapped up in the heat of a negotiation, Gille introduced the four main steps to successful negotiation: planning, setting the stage, tactics and follow-through.

Planning:
You have to know what you want, and also know what the other party wants by getting in their minds). Ask a series of questions of yourself:

• What’s a good deal to you?
• If we cannot make a deal, what are our alternatives? Always have a BATNA (best alternative to a negotiated agreement)
• What’s your walk-away price/reservation?

Ask yourself questions about the other side:

• What are their goals, what do they want?
• Who will represent them and what is their authority?
• What do you know about their past deals?
• What do I know about their interests?
• What can I do to make them collaborative?
• How can I get them to reveal their BATNA?

Setting the Stage:
Relaxed people have open minds. Anger, fear, defensiveness and uptightness interfere with information processing. Create an environment that is productive, where they would be most physically and emotionally comfortable. Intimidation doesn’t usually work. Do what your kids would’ve done with you – get ’em relaxed.

Tactics:
Make the first offer. People who make the first negotiation come out ahead. Start high and you can come down, but go low and you can’t go up. BUT don’t be greedy. Expectations can ruin a negotiation (and almost anything human). Value concessions, and offer equally valued concessions. Don’t say compromise – compromise is NOT negotiation. Don’t give major concessions early. Take notes – don’t give a concession, BANK it. Keep score of what you have given and explain to other side how costly it is to you.

Follow-through:
Make a relationship – if you made the deal but lost the relationship, you lost the negotiation. They should want to do business with you again.

 

 Effective Negotiations: Creating Maximum Advantage [101:51m]: Play Now | Play in Popup | Download (1326)

Posted in Success Series 2006 |