Negotiations Skills Training
With
over twenty-five years of proven industry experience, the
Negotiations
Training Institute of America is the recognized leader in
negotiations training, consulting and performance coaching. Through public open
enrollment seminars and private on-session training sessions, we
have helped leading corporations, non-profit organizations and governmental
agencies improve their ability to
negotiate
better outcomes for their constituencies.
First-time
negotiators as well as those with the greatest
competitive
drive and amount of first-hand experience and
negotiations
wisdom can benefit from our time-tested workshops. Whether focusing
on
negotiating
a contract with a vendor or jumping in to the often-stressful
car buying process to
deal
with a dealership, our courses provide useful skills, proven techniques
and various classroom role plays to help you
become
more aware of negotiations that you must face on a daily basis.
For more information on our negotiation skills training courses please
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The ABCs of Negotiation Negotiation Skills Training
If you want to win at the game of negotiations, then you need to know the ploys, tactics and gambits that will give you an advantage over your opponents. Here is an A to Z that will show you how to do exactly that.
A is for Aristotle’s Appeals
If you want to boost your powers of persuasion, you can’t do better than to use the 3 appeals which Aristotle defined as the secret of Ancient Greece’s greatest minds. He called them ethos, logos and pathos.
Ethos appeals are based on ethics and reputation. Quite simply, this is anything that makes your arguments sound more credible, such as an endorsement from a key person or citing expert testimony.
Logos appeals are based on logic and include statistics, facts and evidence.
Pathos appeals are based on emotion and means any argument which either creates a fear of not doing the deal on the one hand or a desire to enjoy the benefits of the offer on the other.
Work these three types of arguments into your negotiating presentations, and you’ll be practically unstoppable.
B is for BATNA
A BATNA is your Best Alternative To a Negotiated Agreement and is the only certain way to be successful in negotiations. By preparing for negotiations with one party by sounding out an alternative deal with someone else gives you walk away power. It means that, even if the alternative isn't quite what you want, you are still prepared to go there, if need be. One of the best examples of a BATNA took place during negotiations between the Malta government and the British over the use of Maltese harbors for British naval ships. During the negotiations, the Malta government courted the Soviet Union who was more than interested in a deal. This alternative gave Malta both leverage and walk away power.
C is for the Coquette Principle
You can increase the power you have over others by raising the value of what you have in their eyes but then making them wait before they can enjoy it. This whets their appetite more and is salaciously known as "the coquette principle". Other coquette techniques include...
emphasizing the scarcity and rarity of what you have
underplaying the value of what you have to make them want it even more
being reluctant to part with what you have as unworthy of their interest.
D is for Dumb Is Smart
The competitive nature of conflict that underlies power negotiations often results in both sides trying to prove they're more intelligent than each other. One side will use arguments that are clever in the belief that this will win them points. However, there are disadvantages in appearing too clever:
you risk turning cleverness into a competition so that, even if you get a bad deal, you can still say you were cleverer
being smart pre-supposes that you have to win the argument. Most successful negotiations are not won on the arguments alone but on a range of other factors.
being clever prevents you asking "dumb" questions in case you appear stupid. This makes you vulnerable to deals which must be carefully checked out.
Remember, dumb is smart and smart is dumb.
E is for Emotional Ambush
There are five emotional ploys that your opponents may try to use on you to soften you up:
1. personal attacks: "You're not up to it!"
2. accusations, e.g. of amateurism, awkwardness, intransigence, unfairness "Come off it...! You can't really mean that...!"
3. flattery: appealing to your ego, e.g. "I’m sure you have the authority to sanction this deal..."
4. warnings, e.g. of what might happen if no deal is struck. "Just think how disappointed you'll feel..."
5. emotional ambush: Emotional ambush is when an atmosphere is created in the negotiation room which makes you reluctant to displease or upset your opponent. You begin to feel that it would be rude to refuse them.
F is for Fait Accompli
Fait Accompli is a cheeky but powerful tactic if you can get away with it. You simply go ahead with what you want to do without the agreement of the other side. When they catch you out, you respond with a look of surprise and say something like, “Who me? Oh, I didn’t know I wasn’t supposed to do that. I am sorry. I won’t do it again.”
G is for Gallipoli
When talks are entrenched and leading nowhere, it can be useful to open up a new "front" or new avenue. This is sometimes called the Gallipoli ploy, after the Turkish town used to open up a second Eastern front in the First World War.
For example, you may be discussing with an employee the importance of coming to work on time. In the middle of the discussion, the employee protests, “Other employees come into work late and you don’t say anything to them.” This is an attempt by the employee to deflect you from their issue and open up a diversionary discussion. One of the best responses you can make to Gallipoli is not to fall for the diversion but to ask a question, such as, “What makes you believe I do not give other employees who come in late the courtesy of dealing with them one-on-one, just as I am doing with you?”
H is for Hot Potato
In power negotiations, the "hot potato" is the problem that is too hot for you to handle so you deftly throw it back like a hot potato for the other side to handle. "We realize that you would like 5% from us, but in view of what we've said, we can only offer 3. So, we’ll leave it with you.”
The story is told of the husband who lay awake all night worrying about what he was going to say to the bank manager in the morning about his overdraft. Finally in exasperation and in need of some sleep, his wife turned on the light, picked up the phone and dialed the bank manager at home: "Hello, this is Mrs. Jones. I thought you should know that my husband is coming to see you tomorrow to find out what you're going to do about reducing his overdraft. Goodnight."
"There", she said, "it's his problem now. So let's get some sleep!"
I is for the Iroquois Preparation Method
High-level negotiations affecting the lives and livelihoods of others require stamina and resourcefulness. One way to prepare for such endurance tests is to copy the Iroquois before going into battle. They fasted; they got themselves into a peak of fitness; they practiced with their weapons until they could use them without thinking; and they trained like hungry prize-fighters before a fight. While your negotiation preparations may not go to such lengths, the Iroquois Method illustrates the need to focus so that we are physically, mentally and psychologically ready.
J is for Just See If I Don’t…
Just See If I Don’t is an on-the-brink negotiating tactic and only advisable when negotiations have reached a crunch point. It’s really a warning to the other side that, if they don’t see sense, you’ll carry out your threat of walking away from the deal and taking some form of unpleasant action.
Lee Iacocca, former chairman of the Chrysler Corporation, used this tactic when he was in pay negotiations with the automobile unions in the late 1970s. The union wanted $20 an hour and Iacocca would not budge from $17 per hour. One bitter night, Iacocca addressed the committee. "It was one of the shortest speeches I have ever given," he later recalled. He told the committee, "You've got until morning to make a decision. If you don't help me out, I'll declare bankruptcy in the morning and you'll be out of work. You've got eight hours to make up your minds.” The unions eventually agreed, and, despite the brinksmanship of the tactic, it turned out to be a turning point in the fortunes of the company.
K is for Knowing Your Opponents
The background research you need to carry out in preparation for negotiations is vital for getting to know your opponents. It can include:
a preliminary get-together to clarify initial claims, offers and positions
desk research, for example the outcome of previous deals
investigation of alternative courses including getting a BATNA (the Best Alternative To a Negotiated Agreement)
foot-slogging for on-the-spot information
getting advice from your own experts.
Once you have information about the other side's position it can be compared to your own to find out how far apart you are.
L is for Later, or, I’ll Think About It And Get Back To You Later
Using a delaying tactic of “I’ll think about it and get back to you later” is a good way to put off a decision while leaving the door open. It leaves enough doubt in the other side’s mind for them to consider changing their offer. This tactic works best after a lengthy period of discussion in which both sides have invested a lot of time and energy.
If the other side use “I’ll Think About It” on you, respond with a question that ties them down to a date for getting back to you or clarifies what they need to think about. A more aggressive response would be to ask, “Rather than go away and probably miss this deal, why not tell me what bothers you? I’m sure we can help you come to a decision today.”
M is for Modest Diffidence
When you sound absolutely certain of a position, you take on an air of superiority which can antagonize others. If you introduce a touch of modest diffidence, you sound more open to negotiation.
This is how Benjamin Franklin used this tactic: "I develop the habit of expressing myself in terms of modest diffidence, never using, when I advanced anything that may possibly be disputed, the words "certainly", "undoubtedly" or any other that give the air of costiveness to an opinion; but rather say "I conceive..." or "I apprehend a thing to be so and so..." "for such and such reasons", or "I imagine it to be so...", or "it is so, if I am not mistaken." This habit I believe has been of great advantage to me when I have had occasion to inculcate my opinion and persuade men into measures that I have been from time to time engaged in promoting."
N is for Needs Not Positions
Throughout the first half of a power negotiation, your aim is to take a position and defend it. In the second half, when you are trying to reach agreement, your aim is to uncover the real needs of the other side behind their public position. It is meeting both sides’ needs that ensures a settlement, not battling against respective positions which only leads to stalemate.
Notice the difference between Position, Interests, and Needs in this situation.
Position: I demand that you stop your children playing football near my garden otherwise I'll have to call the police.
Interests: I have dahlias growing in my garden which I don't want damaged.
Needs: The dahlias are ready to bloom for next week's show. After that it doesn't matter.
O is for Obligation
One of the oldest of power tactics in trade is "obligation". This is the technique of putting people in you debt with generous acts.
One businessman visiting China for the first time fell victim to obligation. For the first four days of his visit he was wined and dined, chauffeured to all the tourist spots, given anything he wanted. His hosts even put a fax at his disposal when the fax machine in the hotel failed to work. At last on the morning of departure, and with time running out, they got down to business. The Chinese negotiators, with subtle reminders of what gracious hosts they had been, extracted everything they wanted from the hapless businessman.
P is for Power Ploys
Power ploys are attempts by the other side to wrong-foot you by exerting some kind of Svengali-like power over you. You can resist these attempts by seeing through their power ploys. If you are clever, you can even turn their power ploys to your advantage using these tactics:
simply ignore them.
name them. This is like the naming of mythological beasts of old in order to scare them away. "Oh, I see you've placed me facing the sun. I might not be able to see too well from there. I'll just move nearer."
suggest you discuss them. "Ah, I see you're playing "Hard to get". Shall we discuss tactics?"
counter them and call their bluff. "I see you're playing "Higher authority". Well, as a matter of fact, I think we would be happy to hear from your boss."
Q is for Questions
The side that controls the questions in a negotiation is the side that is always in control. Questions do a number of things: they allow you to sit back and listen; they help you gather information; and they stop you from giving anything away. There are no-go questions and go questions in negotiations:
No-go questions are those that...
reprimand and accuse (Why didn't you...?)
entrap (Are you still peddling the Union line, then?)
threaten and pre-judge.
Go questions are those that...
open (What do you think...?)
seek permission (Why don't we look at things differently?)
are barometric (How would you feel if...?)
R is for Reluctant Player
Reluctant Player is a gambit that you can play at the start of negotiations. Whatever the other side’s opening offer or demand, you simply counter with a reluctance to come anywhere near it. Here are 5 timeless phrases that will make the other side think again:
“That sounds way too low/high.”
“To make it worth my while, I would need…”
“Considering the amount of time/money/work this needs, I don’t think we can make any kind of progress…”
“You’ll have to do better than that…”
“Can we work on that…?”
S is for Salami
Matyas Rakosis, one-time head of the Hungarian Communist party is credited with this definition of the "salami" technique at the end of power negotiations. "When you want to get hold of a salami sausage which your opponents are strenuously defending, you must not grab at it. You must start by carving yourself a very thin slice. The owner of the salami will hardly notice or, if he does, not mind very much. The next day you will carve another slice, then still another. And so, little by little, the salami will pass into your possession."
T is for Tentative Overtures
You can make tentative overtures to the other side to inch your way forward out of deadlocked negotiating positions. Here are three ways to do it:
Yes, yes, yes. The more you use the word "yes", the more you encourage positive and constructive thinking. "Yes, you have a point...;Yes, I can see that... Yes, what you're saying is right..."
"yes... and" instead of "yes...but" Not: "Yes, we like your ideas, but you're asking too much." But: "Yes we like your ideas and if we could agree a price, we would be interested."
"I" instead of "You" Avoid the finger-pointing of direct "You" statements. Not: "You're wrong" but: "I think you're wrong."
U is for Uncertainty
Natural negotiators are comfortable with uncertainty, while those who fear the process aren’t. Samfrits Le Poole in his book “Never Take No For An Answer” recalls a deal he made to buy a small plane. He got it for the ridiculously low price of $14,500. After the negotiations, he asked the seller why he had sold for such a low price. The man admitted that he found the whole negotiating process uncomfortable because of the uncertainty. He was wracked with questions such as “What if I don’t get another buyer?” and “What if nobody else comes forward?” As a result, he settled at the first offer simply because he couldn’t stand the uncertainty involved.
V is for Variables
Playing around with the variables in a negotiation is often the only way that you can reach a deal. The more variables you have in terms of price, terms, and deliverables, the more room you have for maneuver. So, when you get stuck on the main issues, change the package. If you’re deadlocked on the price of the house, throw in the furniture and fittings, agree to a garden makeover, or pay for their removal costs.
W is for Writing the Agreement
When you have edged your way to a solution in negotiations, you should write down exactly how you understand it. You should do this even if the other side also writes down their understanding of the agreement.
Always beware of "one-truck deals". There is a big difference between:
"One truck for sale: $10,000"
and
"One 1998 model Bedford for sale: 120,000 miles certified on the clock, serviced at 111,500 miles. Delivered to your home. Price excludes tax, insurance, but includes MOT, dated November last..."
X is for Xchanging Concessions
Exchanging concessions is not a strategy you should use lightly in negotiations, particularly if the other side starts by offering you a concession and then expects one in return. This is because making concessions is a sign of weakness and betrays a need to please the other side. Almost certainly, an experienced negotiator will interpret any concession you make as weakness and push you into making more.
If you do decide to make a concession, do so reluctantly and optimize the value of what you give away. In the same vein, if the other side gives you a concession in the expectation that you will do the same, take it reluctantly and let them know that it’s worth is not that great to you.
Y is for Yikes, You’ve Got To Be Kidding
Yikes, You’ve Got To Be Kidding is a shock tactic used in the opening exchanges of a power negotiation to make your opponents sit up and think and maybe re-assess their offer or demand. As one seasoned diplomat put it: "Be unreasonable; appear reasonable."
You owe it to both your side and your opponents to reject a first offer - even if it is within your acceptable settlement range.
Why? Because if you accept their first demand, they'll be left thinking they could have done better and if they accept your first offer, you’ll be left wondering if you couldn’t have done better.
In power negotiations, both sides need to experience at least the ritual of winning something from the other side.
Z is for Zipped, or Keeping Your Mouth Zipped
Keeping your mouth shut, or zipped, is one way to keep the other side guessing. No matter how much they try to get you involved, if you can stay quiet and give nothing away, then you are in control of the negotiations. In "The Ransom of Red Chief", O. Henry tells the story of the spoilt little rich boy who is kidnapped and held for a large ransom. Instead of giving in, the parents don't react at all to the ransom demands. As time goes by, they even feign a loss of interest in the boy's fate. The kidnappers meanwhile become so exasperated with the boy's antics and their unexpectedly long baby-sitting stint that they finally pay the parents to take the boy back!
So that’s the Negotiators’ Alphabet. 26 tactics that you can slip into any negotiation whenever you want to secure an advantage for yourself or your side. Rehearse and practice them until they’re automatic responses, and your reputation as a top notch deal-maker is guaranteed.
Source: Eric Garner Link
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