Collette's golden book of negotiation 2018 by Collette

Golden Book Of Negotiation

FOREWORD Negotiation is not reserved for particular individuals…. we all negotiate – each and every day – whether it be informally with a family member on where to go to dinner or formally with an employee on establishing project deadlines. As negotiation becomes a daily activity in life, it becomes more and more critical that we engage in key actions to help drive successful outcomes of our efforts. As the landscape around us changes and business practices evolve, we must too evolve. There was a point in time that a win-lose outcome in negotiation was desired. In order to reach an agreement, someone will inevitably have to surrender. However, as we look forward to the future, effective negotiations are rooted in respect, collaboration and integrity all of which are Collette’s core values. It is within this vein that we shift our mindsets and behaviors to win-win outcomes in negotiation. Shifting our negotiation mindset towards seeking out mutually beneficial outcomes and finding win-win solutions between parties drives our business interactions as we evolve for the years ahead. This shift is critical as we focus on and dedicate time to creating and maintaining business partnerships. Much of the information provided in the Golden Book is rooted in the research and work conducted by Roger Fisher, William Ury and Bruce Patton as part of the Harvard Negotiation Project. The book “Getting to Yes” outlines many key foundational theories about negotiation and can help drive successful negotiation outcomes, as well as nurture and drive relationships in tandem. The goal is not to eliminate win-lose negotiations, or to say all negotiations must go one way…. rather, the goal is to use key principles of collaborative negotiation and apply these lessons to the variety of conflict negotiations in our lives and navigate them as successfully as possible.

-The Learning Team

Table of Contents Chapter 1 Psychology of Negotiation .............................................................................................................. 4 Relationship Building ....................................................................................................................................... 5 Growth vs. Fixed Mindset ................................................................................................................................ 5 Emotional Intelligence (EQ) ........................................................................................................................... 6 Intent vs. Impact .............................................................................................................................................. 7 Internal Edge .................................................................................................................................................... 7 Johariâ&#x20AC;&#x2122;s Window .............................................................................................................................................. 8 Hearing vs. Listening ........................................................................................................................................ 9 Active Listening Tips......................................................................................................................................... 9 Effective Communication: Pyramid Principle ............................................................................................ 10 Stewardship .................................................................................................................................................... 11 Whatâ&#x20AC;&#x2122;s my Negotiation Style? ...................................................................................................................... 12 Negotiation Tips: Psychology of Negotiation ............................................................................................. 13 Chapter 2 Preparing and Planning for Negotiation ..................................................................................... 14 SMART Goals .................................................................................................................................................. 15 SWOT Analysis ................................................................................................................................................ 16 PESTEL Analysis ............................................................................................................................................... 18 Best Alternative to a Negotiated Agreement (BATNA) ............................................................................ 19 Zone of Possible Agreement (ZOPA) ........................................................................................................... 20 Negotiation Outcomes ................................................................................................................................. 21 Return on Investment (ROI) .......................................................................................................................... 22 Cost vs. Value ................................................................................................................................................ 22 Three Spheres of Negotiation ...................................................................................................................... 23 Counterparts and Preparing ........................................................................................................................ 24 Counterparts: Six Areas of Focus ................................................................................................................. 25 Develop a Negotiation Plan ........................................................................................................................ 26 Integrative vs. Distributive Tactics ................................................................................................................ 27 LAER Model for Effective Negotiation ......................................................................................................... 29 Cultural Intelligence (CQ) ............................................................................................................................ 30 Cultural Respect ............................................................................................................................................ 31 Negotiation Tips: Preparing and Planning for Negotiation....................................................................... 32 Chapter 3 Engaging in Negotiation ............................................................................................................... 33 Negotiation Techniques ............................................................................................................................... 34 Common Negotiation Mistakes ................................................................................................................... 36 Qualities of a Great Negotiator ................................................................................................................... 36 Barriers to Negotiation .................................................................................................................................. 37 Impact from Emotions ................................................................................................................................... 37 2

Conflict Management Styles ....................................................................................................................... 38 Verbal and Non-Verbal Communication Tips ........................................................................................... 40 Going to the Balcony.................................................................................................................................... 43 DEAL Model for Dealing with Conflict ......................................................................................................... 44 Strategies for Dealing with Conflict ............................................................................................................. 45 Counteroffer Strategies ................................................................................................................................ 46 Negotiation Tips: Engaging in Negotiation................................................................................................. 47 Chapter 4 Negotiating for Mutual Value ....................................................................................................... 48 Supply and Demand ..................................................................................................................................... 49 Cost vs. Value for Mutual Value .................................................................................................................. 50 ROI Analysis .................................................................................................................................................... 51 Risk ................................................................................................................................................................... 52 Risk Management Process ........................................................................................................................... 53 Risk Treatment ................................................................................................................................................ 54 Contract vs. Agreement ............................................................................................................................... 55 Valid Contracts .............................................................................................................................................. 55 Drafting a Contract ....................................................................................................................................... 56 Presenting a Contract .................................................................................................................................. 57 Contract Language to Avoid ...................................................................................................................... 58 Negotiation Tips: Negotiating for Mutual Value ........................................................................................ 59 Chapter 5 Sustaining for the Future ................................................................................................................ 60 Revisit Stewardship ........................................................................................................................................ 61 Resources ....................................................................................................................................................... 61 Sustainability Strategies................................................................................................................................. 62 Negotiating for Long-Term ........................................................................................................................... 63 Negotiation Tips: Sustaining for the Future ................................................................................................. 64 Chapter 6 Assessments, Worksheets and Resources .................................................................................... 65 Mindset Quiz ................................................................................................................................................... 66 Active Listening Assessment ......................................................................................................................... 68 Negotiation Style Questionnaire .................................................................................................................. 69 Negotiation Skills Questionnaire................................................................................................................... 72 Prepping for Negotiation Self-Assessment and Checklist ......................................................................... 76 Prepping for Negotiation Worksheet .......................................................................................................... 77 CQ Preparation Checklist............................................................................................................................. 80 Key Terminology for a Contract .................................................................................................................. 81 Video Library .................................................................................................................................................. 82 Resources Available ...................................................................................................................................... 82 Recommended eLearning in Collette University ....................................................................................... 82 3

CHAPTER 1 PSYCHOLOGY OF NEGOTIATION

“I have come to the conclusion that the greatest obstacle to getting what we really want in life is not the other party, as difficult as he or she can be. The biggest obstacle is actually ourselves.” -William Ury

Relationship Building The cornerstone of every successful negotiation is a strong commitment to build and strengthen new and existing relationships. Foundational to strong relationships is the ability to build trust at all levels, even during the most challenging circumstances, and to harness the art of emotional intelligence (EQ) which involves the ability to identify and manage your own emotions. While working on your negotiation, consider these goals of relationship building as part of the process. • • • • • • • • •

Increase quality communication Develop trust in order to move the relationship ahead Add value throughout the relationship Engage in a relationship of respect Establish a true partnership where all parties benefit from the outcomes Understand your counterpart’s intentions and priorities Determine your counterpart’s WIIFM (what’s in it for me?) and engage more out of a concern than personal gain Pursue a mutually beneficial agreement or win-win to foster transparency and value creation Identify opportunities for future business

Growth vs. Fixed Mindset Learning is meant to change behavior. However, in order for learning and growth to happen, we must start with a growth mindset – the belief that our intelligence can be developed and we can hone in and craft our skillset. Where to begin on the growth journey is with self-awareness. When you are truly self-aware and act as your authentic self, you are open to learning, to changing and growing.

Emotional Intelligence (EQ) Emotional intelligence is the ability to identify and manage your own emotions and the emotions of others. Several core concepts make up EQ as outlined by Daniel Goleman and are foundational for managing emotions as they directly impact relationships and in turn the negotiation.

The ability to recognize what you are feeling, your habitual emotional responses to events and to recognize how your emotions affect your behavior and performance. It is very important we are sending the right message.

The ability to stay focused and think clearly even when experiencing powerful emotions. Determining the source of emotions so it can be managed is key essential for taking responsibility for your actions.

The ability to use your deepest emotions to move and guide you towards your goals. Enables you to take control of your behavior. Personal branding is taking control of your behavior because it impacts your reputation.

The ability to sense, understand and respond to what other people are feeling (and in turn looking for). Selfawareness is essential to having empathy with others. If you are not aware of your own emotions, you will not be able to read the emotions of others.

The ability to manage, influence and inspire emotions in others. Being able to handle emotions in relationships and being able to influence and inspire others are essential foundation skills for successful teamwork and leadership.

Intent vs. Impact This concept will show up in learning and in life; intent vs. impact. When what we intend to happen is not the impact we create. The best intentions can have negative impact. How can we get the two closer together? Sometimes the key is understanding the impact even if it’s not the way you intended it to be. EQ allows you to generate a more educated idea of what the impact of your behavior and actions will be. Seek to know specific information for the specific negotiation/conversation/relationship.

Internal Edge In an ongoing journey of self-awareness, take a deeper look into you and explore your internal edge. Seek more awareness of your thoughts and actions. Discover the thing that makes you unique! What is your differentiator in the world? Extract “your unique value” to reach your full potential. If you discover and recognize this you can consciously leverage your value. This will truly differentiate you from the competition in life and will help you breakthrough to a new level of fulfillment and success discovering a new level of possibility. You may not be 100% sure what your edge is now… but it is important to give it some thought. Many people have never thought about it and it can be hard to determine at first and will require self-reflection.

Reflect Upon • • • •

Moments you shocked yourself Instances you don’t know from where your strength came Childhood Moments of stress

Johariâ&#x20AC;&#x2122;s Window Johari's Window is a technique used to help people better understand the relationships with themselves and others. It illustrates where elements of self, like core values, are seen/experienced and what elements are known to whom. Utilizing this technique can help you gain a better awareness of self and identify possible areas of improvement.

In negotiation, parties may have direct/indirect knowledge of each otherâ&#x20AC;&#x2122;s goals, bottom lines and BATNAâ&#x20AC;&#x2122;s. When parties share this information, negotiation takes place in the open window based on common knowledge. On the other hand when information is concealed by one or both parties, negotiations takes place in the hidden window where parties work to protect their own secrets. When counterparts who know more about their parties organization than they do, negotiation occurs in the blind window and when information is not available to either party, negotiation takes place in the unknown window.

Hearing vs. Listening Vital to becoming a better negotiator is becoming a better communicator in order to get results. This also will help drive better relationships with our counterparts. Have you ever asked yourself “What’s the difference between “Hearing tells you the music is playing, but hearing and listening?” This simple quote listening tells you what the song is saying. There demonstrates the differentiation between the are times that we hear, but we forget to listen” two. To work on improving your active listening skills will bring huge value to the results of your -unknown interaction with the other side as it will help drive win-win outcomes.

Active Listening Tips With communication, only 7% is conveyed through the words that we say. Learning tips through active listening will help beat the odds in effective communication.

Effective Communication: Pyramid Principle The Pyramid Principle is based on using simple key thoughts to get a point across. In order to construct the pyramid, work from the bottom up; gather all the facts and bucket them by need-to-know, arrange in structural order or time order and bring singular thoughts together. After reviewing the buckets, build your governing thought or power statement that will help set the stage for the communication.

When communicating, start with your governing thought and work your way down. Providing your audience with the right amount of information (no more and no less) is what makes them feel connected to you and hence receptive.

Stewardship Stewardship is about building an awareness of all of the resources you have available in preparation for any negotiation. To ensure that negotiated agreements are not simply short term solutions, but have long term benefits that can be used in the future, for both parties.

Consider the story of the orange. This argument involves two people who want the same orange. The simplest approach was to simply cut it in half, each person getting a fair share. But, when the parties began talking to each other, exchanging information about their interests, a better solution to the problem became obvious. The person wanting the orange for juice for breakfast took that part and the person wanting the rind for making cake took that part. Both sides ended up with more. The parable of the orange becomes a story about generating solutions that benefit both parties and have bigger impact. As you put a lens of future focus on your negotiations and seek long-term outcomes that benefit all parties, keep stewardships three key ideas in mind.

What’s my Negotiation Style? Within everyone is a negotiation style representing the dominant and natural style we bring to the negotiation table. To identify your own personal negotiation style, as well as your counterpart’s style, can be invaluable knowledge to build a stronger relationship and have an impact on your negotiation goals. You may find that an approach that works well for one negotiating style can actually cause deadlock with another. Successful negotiators tailor their approach to their behavioral style and needs of their counterpart. Negotiation styles fall into 4 categories: Amiable, Driver, Analytical and Expressive/Blend. Want to learn more about your negotiation style? Take the negotiation style assessment found in the assessment section of this book.

Driver

Amiable •

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Have a strong need to feel recognized and valued in negotiating partnership Focus more on feelings and less on facts Begin negotiation with social conversation Trusting, optimistic and generally committed to outcomes that benefit both parties Respectfulagreeablesupportive-softhearted – low risk taker

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Decisive – determined – controlling

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Results oriented – focused on bottom line

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Precise, aloof, skeptical

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Cautious, not quick to make decisions

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Concern for outcomes

Reserved, selfcontrolled, serious

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Explore all options

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Can be impatient

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Little need for detail

Strong need for facts and details

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Won’t move forward unless have opportunity to analyze all data

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Move negotiation to closure quickly

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Self-confident and assertive

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Winning is important

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Task rather than people oriented

Expressive/Blend

Analytical

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Process info slowly

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Withdrawn, unemotional during negotiation

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Methodical approach

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Reactive, spontaneous, relationship oriented, enthusiastic, creative, optimistic

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No clear preference for one style and uses a combination of styles

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Personable, sociable, sense of humor

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Flexible, creative open to change

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Big picture thinker, little need for detail

Negotiation Tips: Psychology of Negotiation

CHAPTER 2 PREPARING AND PLANNING FOR NEGOTIATION

“The beginning of wisdom is the definition of terms” -Socrates

SMART Goals Defining a successful negotiation begins with establishing goals. Setting SMART (Specific, Measurable, Attainable, Realistic and Time-Bound) goals is important because they are actionable and defined, essential in a business negotiation. SMART goals provide a great roadmap for your discussion.

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Specific: Avoid generalizations like “I want to get a better price,” and think instead “I want my price to 25% below retail.”

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Measurable: How will you know and prove you have reached the goal? What parameters will you measure?

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Attainable: Is this goal within your reach? Is the other party in a position to work with you on this?

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Realistic/Relevant: How does this goal fit into your overall business plan? Can the current business climate support this goal?

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Timely: Do you have a time frame in which to achieve this goal?

SWOT Analysis Performing a SWOT analysis (Strength, Weaknesses, Opportunities & Threats) before a negotiation can help lead to a successful outcome. Combining the customer’s strengths and opportunities could give you key leverage points to offer creative ideas while selling your products or services.

S – Characteristics that should give you advantage over others. You should consider what S you may be able to bring to bear in the planned negotiation. W – Characteristics that may place the organization at a disadvantage relative to others. You should spend time considering the specific weaknesses that you hope the other party won’t be able to take advantage of – and prepare yourself to defend your negotiating position to the best of your ability. O – External factors that offer you the chance to improve performance or profitability. You now need to focus on those opportunities, presented by the current negotiation. T – External elements in the environment that may cause trouble for your organization. You will want to plan specifically for how you are going to deal with any of these threats that may be relevant to the negotiation.

PESTEL Analysis A PESTEL (Political, Economic, Social, Technological, Environmental and Legal) analysis is a framework or tool used to analyze and monitor the macro-environmental (external environment) factors that have an impact on an organization. The result of a PESTEL analysis can be used to identify threats and weaknesses within a SWOT analysis. When PESTEL is used to prepare for a negotiation, it helps to ensure that external factors or technological changes in the industry are not overlooked. By understanding the macro environment, negotiators can develop bargaining leverage.

Political – Research and consider the political situation of the countries relevant to your negotiation.

Economic – Become up-to-date with prevalent economic factors and consider how they may affect the industry and your negotiation.

Social (Cultural) – Research and analyze the various social and cultural factors that may have a bearing on your negotiation.

Technological – Stay current with the latest technological innovations that may be relevant to your negotiation.

Environmental (Ecological) – Stay abreast of any environmental or ecological concerns that may be relevant for the industry and build into your negotiation plan the tactics you use to deal with such factors.

Legal (Regulatory) – Research and consider any current and proposed changes in the

legislation that regulates the industry and understand how this will impact your negotiation. 18

Best Alternative to a Negotiated Agreement (BATNA) Your BATNA for all intents and purposes is your plan B! It is your backup plan if negotiations don’t work out. It isn’t necessarily your ideal, but it is the best you can do without coming to an agreement if the other party is unwilling or unable to negotiate successfully with you. Having a good BATNA increases your negotiating power. If you know you have a good alternative, you do not need to concede as much in coming to an agreement. Your BATNA is not just an alternative. It is your best alternative! This means that you should carefully identify each viable alternative, assess the value each alternative offers, and choose the alternative with the highest value—the best alternative. 1

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List your alternatives. Think about all the alternatives available to you if the current negotiation ends in an impasse. What are your no-deal options?

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Evaluate your alternatives. Examine each option and calculate the value of pursuing each one.

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Establish your BATNA. Choose a course of action that would have the highest expected value for you.

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This is your BATNA. The course you should pursue if the current negotiation fails.

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Zone of Possible Agreement (ZOPA) Once a BATNA has been identified, it is possible to define a ZOPA. A "Zone of Possible Agreement" (also called the "bargaining range") exists if there is a potential agreement that would benefit both sides more than their alternative options do. The ZOPA/bargaining range is critical to the successful outcome of negotiation. But it may take some time to determine whether a ZOPA exists; it may only become known once the parties explore their various interests and options. If each party can identify the ZOPA, there is a good chance that they will be able to come to an agreement.2 In order for disputing parties to identify the ZOPA, they must first know their alternatives, and thus their "bottom line" or "walk away point."

The highlighted area is the ZOPA, and youâ&#x20AC;&#x2122;ll notice that both the Buyer and Seller range fall within that space. This means that both parties could come to an agreement somewhere in this area.

https://www.pon.harvard.edu/daily/business-negotiations/how-to-find-the-zopa-in-business-negotiations/

Negotiation Outcomes The more information we have regarding our BATNA and ZOPA that we have available can drastically change how negotiations go. The image below shows possible negotiation outcomes.

While a win win outcome isnâ&#x20AC;&#x2122;t always necessary, it is something that we should strive for in negotiation. While we may not always see the long term benefits, one never knows when the established relationship will benefit future negotiations.

Return on Investment (ROI) ROI is the measure of the gain or loss generated on an investment relative to the amount of resources invested. To determine the ROI in an agreement, you must look at key elements of ROI; price, value and cost.

Price: The amount of money expected, required, or given in payment for something. Value: The regard that something is held to deserve; the importance, worth, or usefulness of something. Cost: An amount that has to be paid or given up in order to get something. Also the results (positive or negative) of the delivery of what was promised.

Cost vs. Value â&#x20AC;&#x153;The bitterness of poor quality is remembered after the sweetness of a low price has faded from memory.â&#x20AC;? -Aldo Gucci

Cost is what is determined after the service is or is supposed to be rendered. It is both monetary and relationship in nature. We do our best to influence cost but we can only do so to a certain point. As it relates to the relationship cost we have a lot more control and a greater ability to manage these costs. Value is a term that is individually defined and is key for us to understand many different perspectives as negotiators. As a starting point for conversations circulating around these various perspectives, we need to all agree that value determination is up to each individual base on their individual wants, needs, values, etc.

Three Spheres of Negotiation In negotiation, we often negotiate details that fall within three spheres, or areas; Process, Substance and Relationship. All spheres will be negotiated in some way, however the one that should drive everything is the “relationship” sphere. The relationship drives the amount of preparation we conduct, it sets the stage for type of relationship we expect. With a strong foundation in the relationship established between parties, all other elements can be worked out in cooperation. The “process” sphere will come next as preparation to agree on the environment, set the stage or determine “ground rules” before coming to the table. Create the best possible environment for the interaction. Substance should be the last thing negotiated. Part of preparation is prioritizing and sequencing the things that matter the most to the top of the list.

“Failing to prepare is preparing to fail.” -Ben Franklin

Counterparts and Preparing Several core principles of negotiation drive the necessity for prepping for negotiation. The ability to understand the interests of both sides, generate innovative options and find mutual ground to enter in an agreement will help lay a foundation for a win-win, value creating agreement.

Understanding what people really want: In negotiation, knowing your side is not enough. You should take a multi-leveled approach to gathering information in preparation. There are several entities that you must come to understand in order to prepare for the negotiation: Us, Them, and the Industry. Identifying best possible outcomes for both parties: Planning is essential to move talks in the direction you want. The better you understand what you need, the better chances of saying and doing those things that will get you there. In addition, taking the time to study the seller will help you understand and uncover interests, boundaries, needs and priorities from them. Using this information is key is preparing to make a proposal of interest to them. The ability to influence people requires the need to see their side. Discovering common ground and shared interest is a plausible result of research of your counterpart. Be curious, ask questions, try to see other points of view and find a place of perspective. Creating and managing relationships: With a goal of creating long-term relationships, we must build a communicative, working relationship and be prepared to collaborate often. Negotiating is just one transaction you can have on a business level. Focusing on the relationship first and above all else will support relationship building principles like getting to know each other, seek to find common ground, better understand each otherâ&#x20AC;&#x2122;s positions and start the schmoozing process.

Counterparts: Six Areas of Focus After you have conducted some research and gathered information on your counterpart, you may be better prepared to answer core questions in preparation to engage in a negotiation. These six areas are designed to help you ask key questions as you continue to prepare for your negotiation.

Goals

Interests

BATNA

What does success look like? Consider results of the SWOT analysis. Why are you engaging in a negotiation with this counterpart? What do you hope to accomplish?

What is of value for you and for them in the negotiation? Donâ&#x20AC;&#x2122;t get stuck on positions (or what you want)â&#x20AC;Ś define why your position is important. What else you can get that is of interest?

If you are unable to come to an agreement, what is the best alternative? Which alternative will have the highest value? Always try to consider the BATNA of the counterpart to the best of your ability.

Options

Standards

List all possibilities of what can be worked out or offered. Do they interest both sides? How can this create value for both parties? Key is to invent as many options as possible focusing on mutual gains.

What criteria will be used to measure legitimacy of the agreement? What will validate the value of what we achieved? Does benchmark data exist that helps determine a criteria for measuring success?

Agreement Commitment

What specific plans will be executed in this agreement? What is outlined here should have a forward-moving focus.

Develop a Negotiation Plan Developing a negotiation plan determines whether or not the negotiation will be successful. Learn the importance of following a regimen to prepare for the negotiation. We negotiate to achieve goalsâ&#x20AC;&#x201D;that is, to get what we want. That means needing a strategy and a plan! Two negotiating strategies are common: Distributive and Integrative.

A distributive approach to negotiations can be useful when you want to maximize the value of a single deal. Your goal: To claim as much of the pie as possible. You aren't worried about building an ongoing relationship with your counterpart.

Your goal in an integrative negotiation is to create value. You want to expand the pie so that both your company and your counterparts are better off. Although this win-win approach to negotiations may seem naĂŻve, when opportunities to co-create value exist, integrative negotiations can lead to game-changing capabilities and results.

Integrative vs. Distributive Tactics Great negotiators link tactics to the situation. They never engage in unethical tactics, which destroy credibility. They also recognize the tactics counterparts are using. Read more about various distributive and integrative tactics in which we can engage3.

Distributive Tactics Walk Away The longer you can extend a negotiationâ&#x20AC;&#x201D;within reasonâ&#x20AC;&#x201D;the more effective is the tactic of "walking away." If you reach an impasse, and your BATNA is better than the deal that is currently on the table, you can literally stand up and walk away. Of course, you must be willing to follow through and actually leave the table. If you reach an impasse, and your BATNA is better than the deal that is currently on the table, you can literally stand up and GRACIOUSLY walk away.

Use Anchors Your initial offer can set the tone for the negotiation. A well-places, well thought out first offer can effectively anchor the discussion, influencing your counterpart to budge or concede on its negotiating points. Well-set anchors can even influence experts. Setting an unreasonably low anchor is called "low balling" and may not be taken seriously by your counterpart.

Hit the Pause Button When you negotiate, you may be told "I need to talk with my manager." Sales people use this approach to prolong the negotiation, making you invest more time in the process. This tactic also allows the salesperson to hit the pause button if the negotiation is not going in the direction that she had hoped. What can you do? You might ask to negotiate directly with the sales manager. Or, you might use the same tactic, asking for a recess to "confer with your manager" about a specific contract term.

Employ Silence Learn to be comfortable with silence. You might want to take the time to review your notes or run some numbers. If you open your mouth simply because you are not comfortable with the silence, you may end up paying by the word. Imagine if you were tempted to say something to fill the void of silence. There could be unintended consequences that you may regret. Value silence as it can get them talking and give away their hand.

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Integrative Tactics4 Pursue Interests In win-win negotiations, you need to focus on interestsâ&#x20AC;&#x201D;not positions. In simplest terms- your position is what you want to accomplish (e.g., to pay as little as possible for pen). Your interest is the underlying reason for your position (I want to lower the cost of spend for my company).

Explore Possibilities The key to pursuing interests is to probe. Probing enables you to explore the possibilities to create value. Remember the first rule of negotiation: If you don't ask, the answer is no! The corollary is, "If you don't probe, you won't discover new opportunities!" You won't invent creative options if you don't brainstorm and role playâ&#x20AC;&#x201D;both as you prepare and as you execute your negotiation plan.

Build Trust Obtaining a win-win outcome requires that you build trust. That means that you and your counterpart must forego "easy" short-term opportunities for gain that exploit your partner. Rather, you have to signal that you are trustworthy. Ask: What are some ways that you can demonstrate trust? You do this by performing to promise, sharing information openly, making investments in each other's capabilities, treating each other with respect, and showing empathy. Trust enables you to explore value co-creation possibilities!

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LAER Model for Effective Negotiation

Following along with this common tool can help drive an effective negotiation; everything leads to identifying and providing the best response. It also aids in moving forward with the negotiation and be so well formulated that it overcomes objections. Skipping any of the steps in the LAER model puts you at risk of losing leverage and potentially control of the negotiation.5 Listen Carefully: Whenever your counterpart asks a question; don’t interrupt, let them finish and use the LAER model going forward. Acknowledge: Nod yes, indicate that you heard them, say something positive, and don’t answer yet. Identify that what they are saying maybe a “key issue”. Explore: Rephrase or Clarify; make sure you heard the questions correctly, focus the question on your purpose, ensure that you can answer properly, make sure they heard the right question. Respond: Answer the question; support the purpose of the organization, repeat something you already said, be specific and relate your answer to their specific situation.

https://washingtondc.score.org/mentors/david-s-westreich

Cultural Intelligence (CQ) Cultural intelligence is the capability to relate and work effectively across cultures. We do this through examining innate prejudices and beliefs, learn how our cultures influences and affects us and prepare for cross-cultural experiences through homework and research. Cultural norms, shock and awareness are also foundation concepts that drive your level of cultural intelligence.

Richard Lewis, a social theorist, published the Lewis Model of culture which has gained worldwide recognition by defining three clear categories based on cultural behavior. He named the categories Linear-active, Multi-active and Reactive. o

Linear-actives are those who value structure and control. They do things one at a time in a scheduled manner. They tend to be efficient and precise.

Multi-actives emphasize relationships. Loud and emotional disputes are quickly forgotten once they are over. Multi-actives enjoy lively talks and prioritize work based on feelings.

Reactive favor courtesy and respect in relationships. Unlike multi-actives, they seek harmony and will avoid confrontation to preserve peace.

Cultural Respect Respect is critical; respect of culture and “I’ve traveled around the world, and what’s so respect as an individual. In a culture of revealing is that, despite the differences in respect, recognizing, placing value around culture, politics, language, how people dress, and respecting the unique differences that there is a universal feeling that we all want the make up our world is fundamental to our same thing. We deeply want to be respected values. Interpret others’ behavior not based and appreciated for our differences.” on the lens of our culture, but based on what -H. Schultz you have learned of their values and beliefs. Work on building and nurturing a relationship, to better understand them and to build trust and confidence. To establish a very basic level of trust (person to person vs culture to culture) and focus on the goal (have a task-oriented mentality) can help foster key elements of a strong foundation in the relationship. Keep in mind that cultural differences in negotiation don’t hinge precisely on where a negotiator happens to have been born. Rather, they depend on what that negotiator actually does at the bargaining table.

Negotiation Tips: Preparing and Planning for Negotiation

CHAPTER 3 ENGAGING IN NEGOTIATION

“Speak when you are angry and you will make the best speech you will ever regret” -Ambrose Bierce

Negotiation Techniques Understanding negotiation techniques will help identify the tactics employed often throughout a negotiation. Understanding the elements of these tactics can better help you prepare to overcome them and help achieve effective outcomes6.

Positional Pressure This kind of tactic is designed to structure the situation so that only one side can effectively make concessions. This is done through: • • • • • • •

Refusal to negotiate Making extreme demands Escalating demands at every concession Lock-in tactics (posing an extreme commitment designed to make it impossible to yield) Hardheaded partner (blame it on the boss) A calculated delay (postponing until a more favorable time) Take it or leave it- confront the other side with a firm choice

Psychological Warfare This kind of tactic is designed to make you feel uncomfortable, so that you will have a subconscious desire to end the negotiation as soon as possible. This is done through:

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Stressful situations (the physical environment to which you are exposed in the negotiation can draw feelings of discomfort, and possibly are prejudicial.) Personal attacks (verbal and non-verbal communication that makes you feel uncomfortable) Good guy/Bad guy (two people from the same side stage a quarrel to make concessions appear as favors.) Threats

http://www.williamury.com/books/getting-to-yes/

Deliberate Deception This tactic is the most common form of dirty tricks through misrepresentation about facts, authority or intentions. This is done through:

• • •

Phony facts (through knowingly fake statements) Ambiguous authority (when the counterpart takes on the position of being in authority when they are not) Dubious intentions (where intentions of a dubious nature seem likely)

Tactical Solutions7

Here are additional tactical solutions that can be employed when engaging in both integrative and distributive negotiations. • • • • • • • • •

Don’t be taken in by coy behavior and ask the same questions to get your answers Be prepared to ignore threats or take action when threats are employed so you can safeguard your interests Ignore the tactic and take another approach Remove people from the problem; make the negotiations proceed independent of trust Don’t let someone treat your doubts as a personal attack; verify factual assertions Inquire about the authority of the other side Build compliance features into agreements Change the physical environment as needed Recognize the tactic and feel free to bring it up explicitly to nullify its effect (this works well with refusals, extreme demands and escalating demands)

http://www.williamury.com/books/getting-to-yes/

Common Negotiation Mistakes With a scope of preparing for negotiation, fostering and building relationships and engaging in effective communication techniques, it is possible to fall into pitfalls that can damage the outcomes. Review the list of common negotiation mistakes to learn more about things to avoid.

Qualities of a Great Negotiator There are many qualities that make an effective negotiator. If you donâ&#x20AC;&#x2122;t see a quality you embody, donâ&#x20AC;&#x2122;t worry! Self-awareness will help you identify areas where you can develop further.

Barriers to Negotiation Barriers are obstacles that stand in the way of a successful negotiation. Better put, barriers are obstacles to effective communications. Barriers can be real, created, or perceived. Most stem from simple communications issues between the parties. Barriers can be verbal and non-verbal. But no matter the cause of the barriers, they need to be overcome to allow effective communications which facilitate good negotiations.

• • • • •

Lack of time, flexibility or preparation Communication difficulties Lack of trust, patience or confidence Criticism, poorly spoken statements, insults Cultural barriers

Impact from Emotions Emotional factors experienced during a negotiation can impact the decisions made. Negotiators that are feeling negatively during a negotiation tend to use pro self-tactics and focus on competitive strategies instead of collaborative ones. When feeling positive and confident, we are more agreeable while engaging in negotiation which can lead to better outcomes like creating foundations of trust and communication, creativity and decision making.

Conflict Management Styles We exhibit various behaviors when trying to resolve conflict. Each behavior can be broken down into 5 styles of managing conflict (as well as the style that is typically used during negotiation). In this section weâ&#x20AC;&#x2122;ll learn about identifying the 5 conflict styles and learn ways to manage conflicts with others who are exhibiting behaviors within each of the styles.

Verbal and Non-Verbal Communication Tips We have learned how important possessing and practicing effective communication skills are to a negotiation, as well as in relationships. Humans convey their message mostly through body language versus the words they speak. When they do speak, their tone reveals the final piece of the message. Effectively conveying and interpreting information will lend towards an effective negotiation. What’s your counterpart “not saying”? Use these tips to learn more about unspoken communication.

• •

Eyes looking up to their right (right indicates more creative thoughts, and could be a sign that someone is being deceitful, i.e. creating a version of events) Eyes looking away or down (general disinterest or not paying attention)

• • •

Any sort of movement—tapping foot/bouncing leg (suggests boredom and restlessness) Crossed legs (can indicate being closed; may mean less likely to budge in a negotiation) Closed palms (suggests dishonesty or lack of willingness to work together)

• • • • •

Voice volume (loudness of voice) is elevated, deeper and sounds more stressed/strained Words are spoken angrily or sharply/abruptly The pace may be faster than normal as well as breathing Voice may be deeper Words are more muffled (Indicates unhappy, unconcerned or even bored and uninterested)

Going to the Balcony William Ury, co-founder of Harvard’s Program on Negotiation, is one of the world’s leading experts on negotiation and mediation. He is currently a Distinguished Senior Fellow at the Harvard Negotiation Project. He is co-author with Roger Fisher and Bruce Patton of “Getting to Yes”, a fifteen-million-copy bestseller translated into over thirty-five languages, and the author of Getting Past No, The Power of a Positive No, The Third Side, and, most recently, the award-winning Getting to Yes with Yourself. 8 William and his colleagues from the Negotiation Project at Harvard published a strategy for looking at conflict from “the Third Side”, which is a way of looking at the conflicts around us not just from one side or the other but from the larger perspective of the surrounding community. This way of proactively taking a deeper look at conflicts takes into account the larger perspective and seeks to understand not only the two sides of the conflict, but a third side which is the collective side of everyone affected by the conflict. The third side is also a way to manage conflict and your emotions in the same process- a method called “going to the balcony”.

http://www.williamury.com/about/

DEAL Model for Dealing with Conflict Resolving conflict effectively can enhance and strengthen business relationships. Letâ&#x20AC;&#x2122;s start with a very basic strategy: DEAL as viewed by Harvard PON. This strategy is typically used for dealing with threats at the bargaining table. However, we can adapt it to a set of steps to engage in when experiencing a conflict.

Strategies for Dealing with Conflict There are many, many strategies when it comes to resolving conflict in negotiation. We focused on strategies that focus on and leverage strengths and behaviors of the parties involved… but strategies should be built to fit the situation. Take the time to learn more by studying other strategies or building strategies that work for you. Here’s a few examples. Dealing with Difficult People • Find things you can agree on • Think about your counterpart as a person • Take time to cool off if issues escalate • Disarm your counterpart by stepping to their side • Establish an understanding of their point of view

Common Ground Concessions • Concessions can help make agreements more likely • Be careful that it will not favor one side’s interest disproportionately • Control your concessions carefully • Give in slowly and lead the situation towards closure • Utilizes elements of compromise and are often used during a negotiation with a high competitive style

Problem Solving: “Getting to Yes” • Work together to determine if an agreement is possible • Commitments should be held off while exploring the value of the agreement • Emphasize parties’ underlying interests rather than their positions • Encourage parties to maintain & build their relationship even if they disagree

Encourage joint benefits • •

Build a strategy that appeals to overarching values of both parties Bridge gaps at the negotiation table by identifying shared bargaining interests

Counteroffer Strategies A counteroffer is defined as a response to a previous offer, statement, or condition of a proposed product or service. A counteroffer arises when the offer on the table is undesirable; it doesn’t fit into our perceived ZOPA, it’s too close to our reservation price, it’s not a win-win solution. Effective counteroffers involve little argumentative behavior. In fact, done just right the exchange of counteroffers mimics an everyday conversation that we’d have with friends – no tension. Outlined are some strategies for handling counteroffering that are the most common ones negotiators use.

Consider this… What if an initial offer is desirable? It poses the question, “should I counteroffer an INITIAL offer if the offer itself is desirable?” As a general rule, don’t accept the first offer. Even if the initial offer is desirable and it is the deal you want – counter it. Why? Because counteroffers help to build a relationships. People expect counteroffers, and if we don’t they may think they could have made a more aggressive offer or possibly there must be something wrong. Countering the first offer increases the chances that both you and your counterpart feel the negotiation was a success. Whether it be a house, a car, a vendor, a hotel, especially with an INTIAL offer – counter. Even if it’s by a little bit. Doing so makes both sides feel they got the win-win.

Negotiation Tips: Engaging in Negotiation

CHAPTER 4 NEGOTIATING FOR MUTUAL VALUE

“When you know better you do better” -Maya Angelou

Supply and Demand The impact that resources have on a negotiation can be looked at through the concept of supply and demand. Understanding the importance of the journey to equilibrium is key; to maximize gain when supply is greater than demand and minimize impact when demand is less than supply?

Cost vs. Value for Mutual Value To understand the value that a deal brings to the organization relies on understanding of cost vs. value. In terms of mutual value, creating value can reap more rewards than claiming value. This journey begins with information sharing with a goal of increasing the value of the outcomes. The use of risk and time differences are important in driving value as well as minimizing cost and adding resources strategy.

ROI Analysis Before you negotiate terms you need to calculate ROI by comparing the expected benefits with the costs. Analyzing ROI isn’t as always as simple as it sounds and there is one mistake that is often made: confusing cash and profit- they are not the same thing! To mistake profit for cash in your ROI calculations, you’re likely to show a far better return than you can expect in reality. Once you grasp the cash vs profit distinction you can better understand the four basis steps of ROI analysis. • • • •

Determine the initial cash outlay: Be careful not to mistake this with profit! Forecast the cash flows from the investment: Seek out additional information if needed. Determine the minimum return required by your company; Speak with everyone who has a stake in the game. Evaluate the investment: Utilize all gathered information.

Risk In general business there are a numerous types of risks to be aware of: strategic, compliance, competitive, liquidity, credit. Lots of them go beyond our needs in negotiation. For the purpose of risk awareness in negotiations our focus is on the following four risk types:

•

Financial: Risks that involve potential financial loss. Budgets, the economy, currency exchange, a non-paying customer.

•

Reputational: Risks that involve a chance of loss due to a decline in our reputation. A reputational decline can stem from practices or incidents that are perceived as dishonest, disrespectful or incompetent.

•

Legal: Risks affected by new regulations that can disrupt our business or make us incur expenses or losses due to a legal dispute.

•

Operational: Risks that are created by failures related to daily operations such as our standard operating procedures, electrical outage, human error, outsourcing, or a lack of quality product.

Risk Management Process What are some ways we manage risk? Adopting proper risk management practices allows us to identify, assess, and ascertain controls to minimize the risks to ultimately help us decide whether or not to move forward with our decision because we understand the risks. Whether the risk management process steps are followed formally or informally, being aware of risks and mentally walking through the steps is key.

•

Identify the Risk: Ask “what could go wrong?” Then write it down. List all reasonable risks and safety measures in place. Keep doing this until we are confident that all the risks have been identified.

•

Assess the Risk: Once the potential risks have been identified, assess them. Assessing risks helps us evaluate the likelihood of a risk occurring and the impact the risk does occur.

•

Control the Risk: A control is a system, process, policy, tool, or structure that is used to manage risk. Controls are meant to reduce the risk. These controls may be preventative or detective.

•

Review the Risk: Ask “Is the plan working?” “Are any changes needed?” Keep an eye on the risks that you've already identified to see if anything has changed and if there are any new risks that have arisen during the project.

Risk Treatment In negotiations considering whether your counterpart is a risk-seeker or risk-averse can help us understand how they will respond to the negotiation. Studies suggest those who are riskaverse will forego value to minimize their risks. The risk-averse will accept an offer, but the riskseeker will hold out for concessions. Read more on how risk is generally treated; o

Avoid: Discontinues the action that triggers a particular risk. This could mean not getting involved in a business venture, passing on a project, or skipping a high-risk activity. This is a good option when taking the risk involves no advantage to your organization, or when the cost of addressing the effects is not worthwhile.

Mitigate: Pursuing an activity but finding ways to reduce its associated risks. Ex: Retrospective discounts or payment terms, trade terms based on performance levels, due diligence exercises, penalty clauses for delays or minimum quality levels are some of the ways we minimize risks during negotiations.

Transfer: Assignment of risk to a third party using a legal agreement.

Accept: Assumption of a risk, typically because its risk reward (chance of loss vs. gain) profile is attractive and within your risk tolerance (level of risk an organization targets). This option is usually best when there's nothing you can do to prevent or mitigate a risk, when the potential loss is less than the cost of insuring against the risk, or when the potential gain is worth accepting the risk. For example, you might accept the risk of a project launching late if the potential sales will still cover your costs.

Contract vs. Agreement As the saying goes â&#x20AC;&#x153;All contracts are an agreement, but all agreements are not contractsâ&#x20AC;?. In a negotiation, it is critical that you understand the difference between the two. Having a less-than-desirable agreement would bring different end results than a less-than-desirable contract.

Valid Contracts What makes up a valid contract? To establish a valid contract five basic conditions must be met: 1. Offer: Someone has to offer something. 2. Acceptance: the decision to go ahead must be indicated. 3. Consideration: something of value needs to be exchanged. 4. Authority: must have the right to enter into the contract. 5. Legality: the contract cannot violate any laws. Note: If any one of these conditions is not met then the contract is not legally binding and it cannot be enforced on the other party.

Drafting a Contract

In a negotiation, it’s helpful to understand the basics of drafting a contract even if we rarely draft our own. A basic understanding adds to our confidence in negotiations, and aids in reviewing and interpreting the contracts in which we are a party. Consider the following tips for drafting a contract: • • • • • • •

Specific, clear, focused Short sentences - ditch complexity and ambiguity Ensure the names of all parties is accurate Consistency in grammar, word usage, abbreviations Define important terms Number pages should be listed (to ensure there is no appearance of pages that have been added after signing) PROOFREAD!

Presenting a Contract Most people do not enjoying negotiating a contract and just want to get it over with. Although it’s easy to understand why that may happen, don’t rush. Take your time and do it one step at a time. Tackle some of the easier aspects first to gain some momentum. This makes it feel as if you are reaching a series of solutions -- and making progress -- rather than battling one big war. Review terms carefully as terms address big picture items. Contracts contain different types of terms; the more important terms are called conditions. A breach of any condition may result in the termination of the contract. Follow these steps to help.

The “Getting to Yes” Approach

Take Control •

•

Controlling the location, timing, and pace of negotiation may create an advantage. Know your top priorities and keep your eye on the prize. Avoid being bogged down in issues that are not important to you. Leave enough wiggle room to make acceptable concessions. You want to leave the other side feeling they made a good dealand concessions may help.

Understand that the first contract you receive is just that -- the first.

The authors of this book emphasize that to reach agreement we must:

•

Separate the people from the issues. Remove the emotion. Focus on the real interest or influence Generate options to create a problemsolving environment

•

• •

•

The contract you end up with will be very different. Don’t flip out. Everything is negotiable. That’s the point. If you don’t understand something, ask for clarification. If you don’t agree, ask to discuss the point. Discussing an issue (rather than going back and forth in print) can help speed up the process.

Contract Language to Avoid Be aware of various terms in contracts. Some need to be changed to more firm or clear terms, and some should throw up red flags and be reviewed with extreme caution. BE AWARE: •

ALL: replace “all” with “applicable” (IE: comply with applicable codes, laws, rules…)

•

AS REQUIRED: implies whether it is reasonable or not. Replace “as required” with “as reasonably required”

•

BEST: replace “best” with “good” or “acceptable” (IE: will use its good judgment)

•

IMMEDIATELY: infers right then. Change “immediately” to “forthwith” or “without undue delay”

•

ASSURE/ENSURE: implies a guarantee

•

GUARANTEE/WARRANTIES: avoid completely. Specify the exact requirements

•

SHALL: imposes an obligation to act. Means you have the duty to

•

CAN: signifies the ability or capacity to do something and can be used to imply permission

•

SHOULD: using should results in ambiguity (advisory vs. obligation)

RED FLAGS: •

Dollars and time of payments: Search for $ symbols throughout the document. Ensure payments are correct. If they don’t match up to what you agreed, the discrepancies need to be discussed.

•

Non-compete clause: Many contracts state that once a company is doing business with one company, they can’t do it with a competitor, in similar industries, or for a period of time.

•

Ownership of work: Understand who owns the work that is produced as a result of the contract. This may be critical if the company wants to use what is produced or learned for other projects.

•

Long term vs. short term: Specifically how long do we want to commit?

•

Penalties if things go wrong: Does your contract protect you against unforeseen consequences of poor supplier performance? If something goes bad in the execution of the contract, what’s the penalty? It is also important to see if there is a “cure period” when a deadline is missed or one party is dissatisfied.

•

Liability and indemnity: Review who is liable if either of the parties get sued by an outsider and who will pay the legal costs. Try to get the other party to be responsible for all claims or at least have each party take care of their own legal expenses.

•

Choice of Law: Designate the forum for resolutions of disputes; Attorney, arbitration or mediation – discuss with CFO to discuss choice of law and venue. 58

Negotiation Tips: Negotiating for Mutual Value

CHAPTER 5 SUSTAINING FOR THE FUTURE

“Stewardship begins with a willingness to be accountable for a body larger than yourself” -Jesse Lyn Stoner

Revisit Stewardship

Standard Definition The conducting, supervising, or managing of something; especially: the careful and responsible management of something entrusted to one's care.

A successful negotiation comes down to a strong commitment to build and strengthen new and existing relationships. Stewardship focuses on negotiating with a plan that maximizes profits, manages resources, focus on the importance of relationships and support organizational priorities. Building upon skills such as communication and trust lends towards strengthening the relationship and all play a part in attaining a successful outcome in the negotiation and are all embodied in the concept of stewardship.

Resources The most common thought process around stewardship is that it strictly revolves around costs and finances. Stewardship isnâ&#x20AC;&#x2122;t only about not breaking the bank- in reality a good steward has a more holistic view, understanding that in order to better approach a negotiation, there must be a full understanding of what resources will have an impact on the business.

Like reputation!

Sustainability Strategies Moving forward from a negotiation, how do we sustain the relationship? Asking key questions and seeking feedback can help determine necessary future steps to ensure a strong partnership with the counter party. Consider and ask these points: • • • •

How well is the team delivering on the deal agreed during the negotiation? How would you describe your feelings about our negotiation process? What would make you feel more comfortable about negotiating with me/my group in the future? Are there any personal feelings you came away with from our negotiation — and if any of them happen to be negative, what do you think would make you more comfortable with the process/me/my team?

Identifying a strategy for moving into the future is key. Review these key points from Negotiation Briefings Harvard PON.

Relationships

Long View

Assess Impact

When those who negotiate aren’t invested in a deals long term success, they are unlikely to prepare for the problems that could arise in the future.

While negotiating, be sure to discuss the likely long term impact of the proposals you’re considering. It’s common to negotiate on behalf of our organizations to focus narrowly on immediate concerns that we create larger problems to be dealt with in the future.

How does proposed contracts advance the organizations long term goals? Is there disconnect between deal making and implementation? If so, what can be done to mitigate?

Negotiating for Long-Term In order to sustain for the future, we must be great stewards of all of the available resources and relationships in order to ensure that we are constantly making the best decisions and constantly looking out for the well-being of the organization as a whole. Get more out of negotiations by broadening the way it defines success. Consider these 6 criteria as outlined by Harvard PON in reviewing negotiations. Relationships

Communications

Does the negotiation process help build the kind of relationship that will enable us and our counterparts to work effectively together over duration of relationship

Interests

Do our negotiations help create an environment in which both parties can engage in constructive conversations aimed at solving problems?

Have we crafted a deal that satisfies our interests and at the same time satisfies their interests (at least an acceptable level) and the interests of any third parties to a tolerable level?

Options

BATNA

Commitment

Have we searched for innovative, elegant, & efficient solutions that may offer joint gains? Have we used objective criteria to evaluate and choose an option that could be justified by both sides?

Have we measured proposed deal against our BATNA and are we confident that it satisfies our interests better than our BATNA does?

Have we generated a set of well-planned, realistic and workable commitments that both sides understand and are prepared to implement?

Negotiation Tips: Sustaining for the Future

CHAPTER 6 ASSESSMENTS, WORKSHEETS AND RESOURCES

Mindset Quiz Place a check in the column that identifies the extent to which you agree or disagree with the statement

1. Your intelligence is something very basic about you that can’t change very much. 2. No matter how much intelligence you have, you can always change it quite a bit. 3. You can always substantially change how intelligent you are. 4. You are a certain kind of person, and there is not much that can be done to really change that. 5. You can always change basic things about the kind of person you are. 6. Music talent can be learned by anyone. 7. Only a few people will be truly good at sports – you have to be “born with it.” 8. Math is much easier to learn if you are male or maybe come from a culture who values math. 9. The harder you work at something, the better you will be at it. 10. No matter what kind of person you are, you can always change substantially. 11. Trying new things is stressful for me and I avoid it. 12. Some people are good and kind, and some are not – it’s not often that people change. 13. I appreciate when parents, coaches, teachers give me feedback about my performance. 14. I often get angry when I get feedback about my performance. 15. All human beings without a brain injury or birth defect are capable of the same amount of learning. 16. You can learn new things, but you can’t really change how intelligent you are. 17. You can do things differently, but the important parts of who you are can’t really be changed. 18. Human beings are basically good, but sometimes make terrible decisions. 19. An important reason why I do my school work is that I like to learn new things. 20. Truly smart people do not need to try hard.

Strongly Agree

Agree

Disagree

Strongly Disagree

Mindset Quiz

Place the number in the box that matches each answer

1. ability mindset – fixed

Strongly Agree 0

Agree

Disagree

Strongly Disagree

2. ability mindset –growth

3. ability mindset – growth

4. personality/character mindset - fixed

5. personality/character mindset – growth

6. ability mindset – growth

7. ability mindset – fixed

8. ability mindset – fixed

9. ability mindset – growth

10. personality/character mindset - growth

11. ability mindset – fixed

12. personality/character mindset – fixed

13. ability mindset –growth

14. ability mindset – fixed

15. ability mindset – growth

16. ability mindset – fixed

17. personality/character mindset – fixed

18. personality/character mindset –growth

19. ability mindset – growth

20. ability mindset – fixed

Total Grand Total Strong Growth Mindset = 45-60 points Growth Mindset with some fixed ideas = 34-44 points Fixed Mindset with some Growth ideas = 21-33 points Strong Fixed Mindset = 0-20 points Adapted from: http://www.classroom20.com/forum/topics/motivating-students-with

Active Listening Assessment Harvard ManageMentor — COACHING TOOLS Active Listening Self-Assessment Are You an Active Listener? Coaches who listen actively tend to get the most out of their coaching discussions and tend to be better coaches overall. Use this self-assessment to think about how actively you listen and to identify areas for improvement. Check the box next to the number in the column that best describes your listening habits. While someone is talking, I:

Usually

Sometimes

Rarely

Plan how I’m going to respond.

Keep eye contact with the speaker.

Take notes as appropriate.

Notice the feeling behind the words.

Find myself thinking about other things while the person is talking.

Face the person who is talking.

Watch for significant body language (expressions, gestures).

Control fidgeting or other distracting habits.

Interrupt the speaker to make a point.

Am distracted by other demands on my time.

Listen to the message without immediately judging or evaluating it.

Ask questions to get more information and encourage the speaker to continue.

Repeat in my own words what I’ve just heard to ensure understanding.

Negotiation Style Questionnaire For each of the following statements, circle the one that best describes you. 1.

My major concern in preparing for a negotiation is: A. The maximum goal I can achieve. B. How I can win over my counterpart. C. The important facts and details that support my case. D. How much I can trust my counterpart and not be “taken”.

My normal behavior when first meeting my counterparts is to: A. Do or say something dramatic or surprising to get everyone’s attention. B. Review the background facts on both sides. C. Engage in social conversation to help people relax. D. State my goals and insist on the same from my counterparts.

In the early stages of negotiation, I usually: A. Ask a lot of pointed questions to make sure I have all the data needed. B. Invite my counterparts to talk about their needs and interests, on a personal as well as business basis. C. Control what’s talked about as much as possible, and challenge anything I doubt or don’t agree with. D. Try to build the most convincing case possible for what we need and why it’s good for all parties.

When my counterparts are talking, I usually: A. “Listen between the lines” in order to detect feelings and nuances, and periodically feedback what I’m hearing so they know I understand. B. Challenge anything I don’t agree with so that my counterparts realize they can’t pull any fast ones on me. C. Try to capture the main ideas or themes, and think about ways to reinforce what’s good and counter what’s not. D. Push them for details and background facts, especially when their arguments seem “fuzzy” or incomplete.

When I present information during a negotiation, I usually: A. Get straight to the point with no frills. B. Try to make what I say as memorable as possible. C. Cover points one at a time, thoroughly, however long it takes. D. Express understanding and concern for my counterpart’s concerns as well as our own.

When we disagree on a key negotiating point, I normally: A. Show my feelings and get pretty excited if that’s what it takes. B. Become concerned about making any mistakes, and insist on reviewing the facts. C. Encourage my counterparts to explain the rationale for their position so that I understand them completely. D. Keep repeating what I am after until they give in.

My typical reaction when negotiation is not going well is to: A. Focus on available facts and look for viable alternatives. B. Feel I’m being attacked personally. C. Threaten to stop the whole process. D. Call in allies and storm the trenches if need be.

When I feel it’s time to decide, I’m most likely to: A. Ask my counterparts if they’re ready to make a decision. B. Announce my decision in no uncertain terms. C. Show my counterparts why it’s to their own advantage to decide on an outcome. D. Stop talking until it’s obvious we should make a decision.

I tend to make decisions based on: A. What will work? B. Gut feel. C. The facts. D. What’s the most fair?

10.

If someone does something sneaky or underhanded in a negotiation, I: A. Throw a fit. B. Quietly expose them with facts. C. Feel cheated. D. Plan my revenge.

11.

In negotiation as in life, I am primarily driven by a need to: A. Be right. B. Be accepted. C. Achieve my goals. D. Be excited.

12.

When a negotiation is over, I am most concerned about: A. Was it fair to everyone? B. Was it done by the rules? C. Was it interesting? D. Did we win?

Negotiation Style Answer Key For each question, identify the letter of the response you circled, and then total how many items are circled in each column. The column with the highest number of items identified represents your dominant negotiating style â&#x20AC;&#x201C; and most likely your overall most common method of thinking, communicating, and deciding. Question #

Controlling Style

Expressive Style

Analytical Style

Amiable Style

Total for each column.

Negotiation Skills Questionnaire This questionnaire is designed to help you assess your negotiation skills. You are given two statements as an answer to each question. Circle the letter which is most representative of your feelings, where: A and E are closest to the different statements B and D less close but still reflect your feelings C is the middle between the two statements. Answer each question as quickly and honestly as you can. 1. To what extent do you prepare before a negotiation? To a great extent

To a little extent

The other partyâ&#x20AC;&#x2122;s weaknesses

Both parties win

A good result for both parties

Rarely

Do you set clear objectives for a negotiation?

Always

What should be the outcome of a negotiation?

A good result for your organization

How do you regard the process of negotiating?

One party wins, the other loses

To what do you pay most attention when preparing for a negotiation?

The other partyâ&#x20AC;&#x2122;s strengths

To what extent do you consider the position and issues of the other party prior to the negotiation?

To a great extent

When negotiating do you hold fast to your objectives?

Always

Rarely

How often do you become impatient or lose your temper in a negotiation?

To a great extent

Listen

Recognize the principles of giving and getting

Use open questions to test assumptions

Very likely

The other party

What do you do when you are in a negotiation and you don’t understand something?

Ask questions to clarify the matter

15.

To a little extent

As you work to reach agreement, who usually sums up what has been agreed along the way?

You

14.

If you have spent some time negotiating, but are not happy with the suggested outcome, how likely are you to reach agreement during the meeting?

Very Unlikely

13.

How do you test assumptions in a negotiation?

Wait to hear what the other party wants to say

12.

What do you feel about making concessions in a negotiation?

Don’t make concessions

11.

Which do you do more of in a negotiation?

Talk

10.

Let the matter pass without saying anything

What do you do when you are in a negotiation and the other party will not give anything away?

Feel that you’ve reached stalemate and give up

Ask questions and explore possibilities

16.

How do you make concessions during a negotiation?

Make the concession early on in the negotiation

17.

Make the concession slowly and make it look more significant than it is

Towards the end of the negotiation

Anyone, irrespective of title or position

With whom do you feel happier negotiating?

Someone on the same level as you

19.

When do you raise important issues during a negotiation?

Early on in the negotiation

18.

How often do you invent options/new ides in negotiations?

Frequently

Rarely

How to Score Now transfer your scores to the grid below. Circle the appropriate score for each letter you have chosen for each question. Question A B C D E 1

Total for each column. Total each column, then add the totals to arrive at a final score:

_______________

How to interpret your score 70-95

You are a good negotiator. You have a thorough understanding of the skills and process of negotiation.

40-69

Your negotiation skills could be improved. Look at the questions where you have a low score to identify the areas you need to work on.

1-39

You need to develop a better understanding of the process and the skills of negotiating effectively. To help you, look at the ideal response.

Prepping for Negotiation Self-Assessment and Checklist See how you measure up as you prepare for a negotiation. Learn about our company ☐

Know mission, vision, core values and strategic priorities

Recognize basic accounting principles (purchasing, financial goals)

Review strategic plans for areas of the business

Research our customer landscape

☐

Consider areas of legal compliance

Study history of our products (consumption, sales, customer data)

☐

Determine if cost, value or both will drive the negotiation

Understand weaknesses/problem areas/things intent on changing

☐

Seek additional ways to add value to the negotiation

Review scores on key indicators upon which Collette is measured

Study the industry “landscape” ☐

Study the industry in which partnership aligns

Research key components (economy, government, taxes, sales etc.)

Uncover potential roadblocks (events, blackout potential)

Know competitor’s product and service offerings

Apply SWOT lens

Benchmark data to determine success in this industry

Research your counterpart ☐

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Review organization’s mission, values, history

Research public statements (financial standings/backings)

Understand customs commonly used in this country/region of the world (Ex: decision making process, cultural differences, etc.)

Conduct PESTEL Analysis: (Political, Economic, Social, Technological, Environmental and Legal)

Estimate counterpart’s needs, priorities, and goals

Review YELP, Feefo, Trip Advisor, Better Business Bureau, etc.

Measure their standards against ours to ensure alignment

Obtain initial prices for their services and study the proposal

Study their business & customer partnership models

Determine what the rates/prices do and do not include

Prepare for the trip (if applicable) ☐

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Prepping for Negotiation Worksheet Leverage this worksheet to help you prepare as you study your counterpart in preparation for the negotiation. Collette

Counterpart

Goals What does success look like? Consider results of SWOT analysis.

Interests 77

What is of value for you and for them in the negotiation? Define your interests. Estimate theirs.

BATNA If you are unable to come to an agreement, what is the best alternative?

Collette & Counterpart Options List all possibilities of what can be worked out or offered. Do they interest both sides? How can this create value for both parties?

Standards 78

What criteria will be used to measure legitimacy of the agreement? Does any benchmark data exist that should be leveraged?

Commitment What specific plans will be executed in this agreement?

CQ Preparation Checklist How often have you prepared for negotiation by studying the culture from which the counterpart is from? Not to understand traditions and behaviors of everyday lifeâ&#x20AC;Ś but to prepare for the business transaction you are about to encounter. Following and understanding this framework will add value to the preparation you do for your negotiation. Avoid broad stereotypes and support prototypes: Prototyping is about looking at other factors and adopting a wider viewpoint of our potential partners. Research the culture: The more you know about these cultural differences, the better prepared you will be to adapt to these norms and bring your interactions out of the range of culture shock and closer to cultural awareness, understanding and adaptability. Research the person: Interpret others behavior not based on the lens of our culture, but based on what you have learned of their values and beliefs. Bridge the gap by engaging in strong communication: Leading in to a face to face meeting or the negotiation, communicating well in advance and leveraging technology to break down barriers will help establish and grow relationships. Try a new behavior: Select and try a new behavior to show respect and further strengthen the growing relationship.

Key Terminology for a Contract 1. Arbitration: using an independent third party to settle disputes without going to court. 2. Bona fide: in good faith. 3. Breach of contract: failure by one party to a contract to uphold their part of the deal. 4. Conditions: major terms in a contract. These are the basis of any contract and if one of them fails or is broken, the contract is breached. 5. Confidentiality agreement: made to protect private information disclosed to another party. This agreement forms a binding contract not to pass on that information whether or not the actual contract is ever signed. 6. Contingency: a provision for an unforeseen event or circumstance. 7. Exclusion clauses: clauses in a contract that are intended to exclude one party from liability if a stated circumstance happens. 8. Force Majeure: this clause usually provides that if a party cannot fulfil its obligations under a contract because of circumstances which are outside of its (reasonable) control then such obligations are suspended and it will not be in breach of the agreement. 9. Indemnification: usually require a party to reimburse another party if a specified event arises. The effect of an indemnity can be wide ranging and, if uncapped, expensive! 10. Limitation of Liability: clauses set out any contractual constraints on liabilities that a party can recover from another party in any given situation. They often operate by reference to sums paid and fixed caps, but usually also seek to restrict recoverability of indirect and consequential loss. 11. Principal: main parties to a contract. 12. Scope of services: often referred to also as employer requirements or specification, prescribes the nature of the services that are to be supplied pursuant to the terms of the contract. 13. Termination Rights: this clause sets out when and how the agreement can be brought to an end. An agreement can end in a variety of ways, for example: on a certain date, on the occurrence of a specified event (e.g. delivery of goods, completion of service, and insolvency of one of the parties) or by a party entitled to end the agreement giving notice.

Video Library A video library has been created in Connects to access all videos from the course. Click here to access the video library.

Resources Available William Ury’s website- http://www.williamury.com/ “The Third Side”- http://thirdside.williamury.com/ Harvard Program on Negotiation website- https://www.pon.harvard.edu/ Fisher, Roger, and Ury, William, and Patton, Bruce. Getting to Yes: Negotiating Agreement Without Giving In. New York, the Penguin Group. 2011. Print

Recommended eLearning in Collette University Negotiation Games Emotional Intelligence: Owning Your Emotions