NEGOTIATION

Principles & Skills

Sunil Mittal:
“For me, relationship is very important. I can lose money, but I
can not lose a relationship. The test is, at the end of a
conversation or a negotiation, both must smile”

John Bolton:
“Negotiation is not a policy. It’s a technique. Its something you
use when it is to your advantage, and something that you don’t
use when it is not to your advantage.”
 OUTLINE

• What is Negotiation?
• Negotiation stages
• Negotiation strategies/Clarification of goals
• Tactics
• Theory v Reality
• Implementation of a course of action
 Negotiation defined:

• Whilst there is no set definition, it could broadly be

understood as trying to get a good, or the best deal
possible in a given situation
• Negotiation is a method by which people settle
differences. It is a process by which compromise or
agreement is reached while avoiding argument and
dispute.
• The Concise Oxford Dictionary (1982) defines the word
negotiate as to confer with a view to a compromise or
agreement
 Importance of negotiation
skills

• Court room Advocacy viz – a- vis negotiation

• The Advocate’s role extends beyond the courtroom drama. A
number of cases never get to trial, settlements are achieved
by negotiation. For most people trial is the last resort.
(essence of letters of intention to sue)

• Advocates spend a substantial part of their time negotiating.

Negotiation skills are used more in determination of civil suits
than courtroom advocacy
 Types of negotiation

Dispute resolution –vs- Transactional

• Dispute settlement such as civil claims (events that have

already happened). Intended to solve personal differences –
not out of choice.

• Transactional (deal making) i.e. negotiating a lease,

partnership or employment. The purpose is to regulate future
relations or dealings. Parties negotiate out of choice
 Types of negotiation

• Single Issue –vs- Multiple Issue

• Negotiation can be about a single issue (price) or about a
number of issues i.e. in custody matters – maintenance,
visitation etc.
• Distributive/Zero-sum – vs- Integrative
Distributive – one party always gains at the expense of the
other – win/lose
• Integrative – One party’s gain is not necessarily at the expense
of the other – potentially win/win situation
 Types of Negotiation

• Read about Impersonal –Vs- Personal, Repeat Players –vs- one

off player (Insurance contracts – repeat), representative –vs-
oneself
 Stages of Negotiation

• Prepare: Know what you want. Understand them

• Open: Put your case. Hear theirs;
• Argue: Support your case. Expose theirs;
• Explore: Seek understanding and possibility;
• Signal: Indicate your readiness to work together;
• Package: Assemble potential trades;
• Close: Reach final agreement;
• Sustain: Make sure what is agreed happens.
 Preparation

• Be clear about the facts

• Appreciate the issue in dispute or the relationship to be
regulated
• Do your research especially in regard to the law applicable to
the dispute or relationship to be regulated
• Set your goals and the ultimate prize – have Plan A and B-
“Avoid having plan B as plan A”
• Determine the negotiators – Depending on the dispute – You
may need both the aggressive type and the diplomat
 Discussion

• During this stage, individuals or members of each side put

forward the case as they see it, i.e. their understanding of the
situation.

• Key skills during this stage include questioning, listening and

clarifying
 Clarifying Goals

• From the discussion, the goals, interests and viewpoints of

both sides need to be clarified.

• It is helpful to list these factors in order of priority. Through

this clarification it is often possible to identify or establish
some common ground.

• Clarification is an essential part of the negotiation process,

without it misunderstandings are likely to occur which may
cause problems and barriers to reaching a beneficial outcome.
 Agreement

• Agreement will only be achieved once an understanding of

both sides’ viewpoints and interests have been considered.

• It is essential to for everybody involved to keep an open mind

in order to achieve an acceptable solution. Any agreement
needs to be made perfectly clear so that both sides know
what has been decided.
 Implementing a Course of
Action

• From the agreement, a course of action has to be

implemented to carry through the decision.
 Important elements in
negotiation

• In any negotiation, the following three elements are important

and likely to affect the ultimate outcome of the negotiation:
• Attitudes
• Knowledge
• Interpersonal Skills
 Attitude

• Always be aware that:

• Negotiation is not an arena for the realization of individual
achievements.
• There can be resentment of the need to negotiate by those in
authority.
• Certain features of negotiation may influence a person’s
behaviour, for example some people may become defensive.
 Knowledge

• The more knowledge you possess of the issues in question,

the greater your participation in the process of negotiation. In
other words, good preparation is essential.
 Interpersonal Skills

• Effective verbal communication.

• Verbal communication and Effective speaking.
• Listening – Active listening.
• Rapport Building - Build stronger working relationships based
on mutual respect –and being polite.
• Decision Making.
• Assertiveness - Assertiveness is an essential skill for successful
negotiation -
• Dealing with Difficult Situations.
 Dealing with Difficult
Situations

• First focus on knowing what you want to achieve: what is your

favoured outcome? Write it down and think about your
reasons. Try to take a step back from your personal opinions
and think about the facts surrounding the situation.

• Think carefully about your answers to their concerns;

demonstrate that you have considered their opinions or
arguments.
 Dealing with Difficult
Situations

• Do not enter into negotiations in an angry or stressed way. Try

to remain calm and keep an open mind. Find out the facts, as
well as what is and what is not possible before you react.
• When communicating, listen to what the other person (or
people) has to say.
• Watch for non-verbal communication, such as body language,
and their tone of voice to help you understand.
• Hold back your own opinions and ideas until you have had
chance to understand the other persons point-of-view, and
then plan your responses carefully to fit with the feedback you
are receiving.
 Dealing with Difficult
Situations

• If what you seek is in conflict with the other person’s ideas,

you may have to discuss how sacrifices can be made to
provide a better result for both of you in the long run. Mutual
sacrifice is usually seen more favourably than one-sided
sacrifice. Aim to reach a compromise which results in a win-
win situation.
• Favour logic and fact over personal opinion. Have something
written or drawn out in advance, if it helps.
 Dealing with Difficult
Situations

• If possible turn statements into questions. This not only leads

somebody to think along the same lines as you but also makes
room for discussion of what interests you and what may
potentially benefit both parties. This strategy often allows for
more exploration of options – a more open approach than just
stating your opinion.
• Keep an eye on the prize! Keep your preferred outcome in
mind, try not to get distracted, go off on a tangent or get
bogged down in irrelevant details. Remember to be assertive
– being tactful and diplomatic does not mean bowing to
pressure or giving up on what you want.
 Win-Win Outcome

• In a 'win-win' outcome both sides feel they have gained

something positive through the process of negotiation and
both sides feel their point of view has been taken into
consideration.
• A win-win outcome is usually the best result. Although this
may not always be possible, through negotiation, it should be
the ultimate goal.
• Suggestions of alternative strategies and compromises need to
be considered at this point. Compromises are often positive
alternatives which can often achieve greater benefit for all
concerned compared to holding to the original positions.
 Reference material:

• Raiffa H “The Art and Science of Negotiation”

• Karrass CL “The Negotiating Game”
• Boulle L “Mediation: Principles, Process, Practice ’
• Funken K ‘Shortcomings and Limitations of Principled
Bargaining in Negotiation and Mediation’
• Patton B, Fisher R & Ury W “Getting to Yes”
• THANK YOU FOR LISTENING.