STRATEGIC NEGOTIATIONS

Decision making-and the strategic leadership of decision making teams-is a process which moves an individual or a group toward common goals. However, people are not alike in their values and beliefs; there are huge differences among people within a single organization, and even greater differences between people in different organizations.

Strategic leaders must know how to operate across such boundaries that mark differences in expectations and perspectives, and competing values and goals. It is one thing to influence a group essentially in agreement; it is quite a different thing to influence a group with goals in conflict with those you want to pursue.

This sounds formidable, but we do it all the time. We call it negotiation.

Click here to read the rest.

[from National Defense University]

Don't Choose Lose-Lose

Be Assertive

How to Be Assertive

from wikiHow - The How to Manual That You Can Edit
To be assertive isn't to say you are mean or rude. It doesn't make you pushy or annoying. It just means that you say the truth and get things done. This can be accomplished with simple steps.

Steps

1. Work on your appearance. - How you look tells a lot about you.
   • If you're wearing clothes that look like you've just got out of bed, or if you wear a pound of make-up with fluffy high-heels, people won't take you seriously.
   • If you look like you're ready to get things done, people will know what to expect from you. A good motto is "Dress for Success." This will allow people to respect you more.
2. Have a confident demeanor. You give away a lot before you even open your mouth.
   • Try not to be easy to read, even if you are nervous or uncertain.
   • Keep your shoulders squared and your chin up. Even if you are confused, you can be confident. There's no shame in asking questions.
   • Try to look people in the eye. This can be hard for people who are naturally nervous or timid, but it shows people that you don't intend to be brushed off.
3. Use a clear, calm voice. You don't need to be loud, but you do need to make yourself heard. If people aren't noticing you and you need service, say clearly "Excuse me." Also, whatever you are trying to say, try to be concise.
4. Be honest with yourself. Know what you want. People can tell if you already know what you want out of them, and it's much easier for them to do what you ask them if you can tell them clearly what that is. Whether you're speaking to an insurance agent or a waiter, their job is to serve you and you'll make their job about ten times easier if you know what you want.
5. Know when to hold 'em; know when to fold 'em. Like anything else in life, being assertive is about balance. If the waiter made a mistake and brought you something you're allergic to, speak up--and keep at it until the problem is corrected. But if a cashier growls at you, it's not your job to educate them on manners and customer service, so let it go. It's important to get what you deserve in life, but it's just as important to understand what it is that you deserve in the first place! Choose your battles.
6. Don't misdirect your frustration. If the airline counter agent tells you you must pay extra for your heavy bag, don't get angry at the agent! Your beef is with the airline's policy (and possibly your failure to read the fine print). Instead, treat the agent like an ally. If the policy was made available to you, apologize and ask for an exception. If you were never informed of the policy, say so, and ask for an exception. Either way, the agent herself did you no harm, so do not direct your frustration at her! She is not the aggressor; she's your potential ally. So treat her well and negotiate respectfully...then take the matter up with the airline's customer service agents.
7. Say what's on your mind. Don't be silent if you have something to say. Share your feelings freely, it's your right. Remember, there's nothing wrong in having an opinion. And if your silent affect others in any way, then it's your obligation, too!
8. Learn to say 'NO'. If you do not feel right doing something, then don't do it! No one has the right to make you do something you don't want. It's okay to reject someone. Remember, for yourself, the most important person is - you! If you don't respect your desires, how can you expect others to?

Video

Tips

• If you're about to engage in an important encounter, like asking for a raise or getting out of an unhealthy relationship, ask a friend to role-play with you. Practice what you are going to say, and have your friend give you feedback. If you aren't assertive enough, try it again. This works best if the friend knows the person with whom you're about to engage.
• Being assertive does not mean that you should be rude. People are more willing to help and bend for someone who is both direct and respectful
• If you're doing everything right and whoever you're talking to isn't getting you anywhere, ask to talk to their superior and be very insistent. Most of the time you'll see immediate results.
• Do not be afraid to ask questions. This way, in the future, the same person you are talking to will know, you know what you are talking about.
• Remember, if you cannot do all this at once, go slowly, bit by bit!
• Remember that even if you don't know everything, you can still be certain of what you expect.
• Don't be afraid to tell someone exactly what you think, but do so in a polite way. Speak your mind.
• If you have to deliver bad news, don't offer unnecessary details. If you explain every single reason for your decision, the other person can use those reasons as negotiation points. Your decision is firm, and this will come across most clearly if you are short and to the point.
• Avoid having to put your foot in your mouth! Ask for what you want, and be assertive--but choose your words so that you can walk away from the encounter with your dignity, no matter what the outcome.
• How willing are you to help someone who is yelling at you? Not very, right? Anger and belittlement are not only rude, they're completely ineffective. Do not resort to these tactics; they simply don't work.
• Remember the big picture. True assertiveness, as opposed to pushiness, allows you to come away from any situation respectably. Pushy people may win battles, but only assertive people win wars. (And only assertive people keep the respect of their peers after a conflict.)
• Here are some techniques that are used in assertive communication:
  • Broken record - consists of simply repeating your requests or your refusals every time you are met with resistance.
  • Fogging - consists of finding some limited truth to agree with in what an antagonist is saying. More specifically, one can agree 'in part' or agree 'in principle'.
  • Negative inquiry - consists of requesting further, more specific criticism.
  • Negative assertion - consists in agreement with criticism without letting up demand.
  • 'I'-statements - it is used to voice one's feelings and wishes from a personal position without expressing a judgment about the other person or blaming one's feelings on them.
• Practice on your friends and family. But tell them what you are doing first! Enlist their help; ask for feedback on how you're doing.
• In the beginning, don't try changing your behavior in loaded or difficult situations. Practice first in the least risky ones.
• Also don't let people get in your way or push you around.Stand up for yourself and people will respect you

Warnings

• While you can use these techniques on authority figures, such as police officers and military officers, know where to draw the line. Arguing too much on the spot can backfire, even if you have a good case.
• In confrontations especially, emotions can run high. Remember to be respectful and keep a cool head.
• The key to success in confrontations is to use an appropriate tone of voice and the correct words. Speak to someone like you would like to be spoken to!
• Try asking first; don't demand things right off the bat. Gather information and make the other person an ally. If that approach doesn't work, then you may put your foot down. Rule out miscommunications first--make sure the person actually slighted you, and knowingly, before you come out with guns blazing.
• Assertiveness is not always practiced in a balanced way, especially by those new to the process. Many people, when trying out assertive behaviour for the first time, find that they go too far and become aggressive. So if it's possible, in the beginning, become a part of an assertiveness or communication skills group

Related wikiHows

• How to Have Good Manners
• How to Be Proud, Not Cocky and Conceited
• How to Be Likable
• How to Be an Excellent Leader
• How to Be Assertive During a Job Search

Article provided by wikiHow, a wiki how-to manual. Please edit this article and find author credits at the original wikiHow article on How to Be Assertive. All content on wikiHow can be shared under a Creative Commons license.

Contract Negotiation

How to Negotiate Contracts

from wikiHow - The How to Manual That You Can Edit
A contract is a legally binding agreement between 2 or more parties to uphold terms in a relationship as set forth by the contract. Contract negotiation involves the process of discussing and compromising on contract terms in order to reach the final, approved draft of a contract. Some contracts are non-negotiable, as is usually the case with leases and manufacturer warranties. However, there are contracts - like business, real estate and financial contracts - that may be negotiated in order to reach terms that are satisfactory to all parties involved. Follow these guidelines for how to negotiate contracts.

Steps

1. Identify your objectives for entering into the contract. Before you attempt negotiating a contract, you need to have a specific idea of what your desired outcome is. For example, if you want to lengthen the contract period, then you should know exactly how long you would like the contract period to be. Make both a list of things you will compromise on and a list of terms you are not willing to negotiate.
2. Research contract laws in your area. Because contracts are legally-binding documents, many contract terms are regulated by the government. For example, it is not legal for a landlord to contract a tenant to inhabitable living conditions. Before you go into contract negotiation, schedule a free consultation with an attorney who specializes in contract law, or search online for a legal advice site where you can verify that the terms of your contract are within legal parameters.
3. Prepare for the negotiation.
   • Get any facts, figures and documents you may need to back up your negotiation points.
   • Create a checklist of items that you want to address. When you negotiate a contract, it helps if both sides agree to this itinerary before the negotiation session begins.
   • Set a time frame within which to reach an agreement on terms. Create a plan for the possibility that both sides cannot agree on terms within this time frame. For example, you may agree to schedule a mediation after 2 failed contract negotiation meetings, or to withdraw the contract altogether.
4. Build trust with those you are negotiating with. This will help you reach an agreement faster, and with less resistance and time-consuming inquisition. To build trust, fully disclose all of the facts surrounding your contract negotiation requests, provide documentation of any facts or figures you use to support your requests, communicate openly about your interests and be receptive to the other party's counter-presentations.
5. Approach the negotiation with a positive attitude. This will promote cooperation and aid both party's openness to mutually beneficial solutions.

Tips

• In order to speed the contract negotiation along, and to have a record of exactly what terms you asked for during negotiations, you may want to create a rough draft of the contract, with the modifications that you are requesting, before you go into negotiations. This can help ease objections for people in the other party, as it also allows them to see what they would be signing off on, rather than just relying on their perception and interpretation of what you have to say.

Warnings

• When you negotiate a contract, avoid trying to cheat the other side out of a fair deal, or attempting to trick the other side into agreeing to your terms by giving them false, inadequate or misleading information, or by using scare tactics. This creates an atmosphere of mistrust, and is counter-productive to reaching a resolution.

Sources and Citations

• http://smallbusiness.findlaw.com/business-forms-contracts/business-forms-contracts-overview-writing.html
• http://www.googobits.com/articles/p5-2667-how-to-successfully-write-and-negotiate-a-contract.html

Article provided by wikiHow, a wiki how-to manual. Please edit this article and find author credits at the original wikiHow article on How to Negotiate Contracts. All content on wikiHow can be shared under a Creative Commons license.

The Blackmailer's Paradox

A story straight out of game theory.  What would you do in this situation?

Click here to read the interesting story.

Includes analysis of the story.

Negotiators enter a negotiation with the hopes of a successful outcome.  However, there may be many pitfalls and disputes that can jeopardize the negotiation.

Being aware of how to resolve disputes can greatly increase the chances of getting over these rough spots.

This article looks at five ways that negotiators deal with conflict disputes.

Negotiation Styles in Mediation

In mediating conflicts, it helps to understand the five styles of dispute resolution most often used by negotiators. Often, the various styles need a mediator to buffer the interactions and turn a toxic negotiating atmosphere into a successful mediation.

Click here to read the rest.

[from www.adrr.com]

7 Steps To The Killer Negotiation

Killer Series: 7 Steps to the Killer Negotiation

I have seen it explained in many ways and watched it happen on different turfs and more often than not, the posture and position is always the same. People mistakenly enter a negotiation thinking that someone has to win and someone has to lose.

I know that the dictionary’s definition of negotiation states that negotiation is a compromise, a concession, a series of give and take or finding the middle ground. Personally, I think that the dictionary is limited on this subject and is quite shortsighted. There’s more to a negotiation than mediocrity which is where you end up when you seek the middle ground. The middle ground is short-lived because people on one side or both sides harbor resentment for not having achieved what they set out to.

In my view, there is definitely a higher purpose in negotiation and that is to achieve a win/win. A negotiation then, by the Dean L. Forbes definition, is a synergy of two ideas, the beginning of a fruitful and long-lasting relationship; it is a series of give-and-give where the ends meet the desires of both sides.

Many people will say that this view is terribly optimistic and therefore unrealistic BUT I beg to differ because I have had the experience of both and I do know that win/win is always better than win/lose and that win/win is almost always achievable. And, even when win/win is not achievable, there is still a far better option than win/lose.

Following are the 7 Steps to the Killer Negotiation. Study them and put them into practice; I guarantee that once you do you will discover how easy it is to consistently achieve the results you desire. You will see immediate and profoundly positive results in your negotiation skills and your personal growth.

Click here to read the rest.

[from www.deanlforbes.com]

More Negotiation Tips

NEGOTIATION TIPS

• Don´t be afraid to ask.
• Never negotiate against yourself
• Prepare
• Know your bottom line

1. Don’t be afraid to ask. Negotiators often fail to raise an issue because they don’t think they have a chance of success. Don’t be afraid. Not only do good negotiators ask for everything they want, they also make sure they don’t end up with something they don’t want. Be explicit about what you do and don’t want.
2. Never negotiate against yourself. Once you make an offer, wait for a response before making another offer. By waiting, you avoid the possibility of rejecting your own offer and making further concessions in a revised offer. If you don’t wait, it encourages the other side to hold off its response in hopes of getting a better offer, and you lose the opportunity to learn from the other side’s response.
3. Get it in writing. As Samuel Goldwyn once said: “An oral agreement isn’t worth the paper it’s written on.” When parties fail to live up to an agreement, written proof of the negotiators’ intent is critical. First, it enables you to avoid “he said, she said” bickering, and helps those in charge of resolving the dispute know what was intended. Written agreements also are helpful if the original negotiators change jobs or aren’t around anymore, and they are proof that you did your job correctly.
4. Prepare. To paraphrase an old cliche, the three most important things about a negotiation are preparation, preparation, and preparation. Learn as much as possible about the needs and wants of your organization–and about the needs and wants of the other side.
5. Determine the extent of the other side’s authority. When negotiating with someone with authority, the goal is to reach agreement. It doesn’t matter if the other side understands your position as long as they’ve agreed with it. But, when negotiating with someone without authority, you need to be sure that person not only agrees with your position, but also understands the rationale behind it well enough to convince someone else of its merits. Try to deal with deal-makers, when possible.
6. Know your bottom line. It is critical to understand what you want beforehand. That way, you’ll know it’s time to stop. I’ve seen lots of event planners continue negotiating beyond what they need and, as a result, end up with nothing. Knowing your bottom line also prevents you from agreeing to something that is unacceptable.
7. Establish a fall-back plan. Know your best alternative if you face an unsuccessful negotiation. Without a fall-back position, you are left with no alternative but to negotiate until a deal is reached, even if that agreement is unacceptable.
8. Listen to the other side. Good negotiators are good listeners and good communicators, not just good talkers. By listening, observing behavior and body language, and being attentive, you can learn things that will further your interests. You’ll learn more asking good, open-minded questions than you will by cross-examining the other side. Be willing to brain- storm and explore options, and be empathetic. The person on the other side may have real problems that can affect the negotiations, such as a difficult boss. By showing some empathy, there’s a better chance of working to address the issues. Think of the negotiation as a problem that both sides are working to solve together.
9. There is no substitute for discussion. Many people don’t like to argue, and, therefore, sometimes fail to discuss important issues. Negotiations should not be arguments, but avoiding tough issues is not productive.
10. Avoid form contracts. Form contracts merely drive negotiators toward a predetermined (by one side) result or take an elegant negotiation and reshape it into something ugly. The draft contract must be straightforward and 100 percent reflective of the negotiation. Finally, never sign anything that you have not read completely and understood fully.

[from http://www.ceobraintrust.com/executive-education/high-stakes-negotiation/]

Win-Win Negotiation Badly Executed

Win-Win Negotiation Badly Executed

This case study discusses some of the critical errors that can be made in a Management and Union Labour negotiation, where Management were trying to achieve a win-win negotiation.

In trying to create win-win negotiation agreements, one of the biggest mistakes made by negotiators is to deal with the issues on an issue by issue basis. This often results in a breakdown in negotiations because invariably, conflicting monetary issues arise that result in a showdown between the two parties. Negotiating on an issue by issue agenda does not present the opportunity to make concessionary trade-offs between the different issues.
For example, in January, 1993, management and labour of Bayou Steel in Laplace, Louisiana, sat down to negotiate a new contract. Neither side dreamed that these talks would lead to a strike. Each side believed that they had built a solid relationship. Management went into the negotiations thinking and believing that if they used a win-win negotiation concept, they would increase and enhance the relationship between the shop floor and management. Even Ron Farraro, president of United Steel Workers of America did not conceive of the possibility that talks would collapse into a strike, and that a negotiated contract would be reached with little or no difficulty.
Management of Bayou Steel enlisted the help of two facilitators from the FMCS (Federal Mediation and Conciliation Services) to guide management through a win-win style negotiation with its workers. The president of Bayou said that the facilitators helped them identify each side’s objectives and concerns, and led him to believe that they had in effect, resolved 90% of the contract issues.
The facilitators set up an issue by issue agenda. They left the economic issues such as incentives, base pay, overtime, and vacation time as the final issues to be discussed. Management believed that they had correctly addressed the employees’ concerns about these pay issues.
However, union members became suspicious about management’s good intentions to take a win-win approach. They began to believe collectively that this negotiation approach by management was a disguised ploy meant to undermine their position, especially on the economic issues.
At first, negotiations went relatively well and as predicted. Yet, as the economic issues were placed on the table for discussion, the situation quickly turned upside down into a hard nosed bargaining negotiation. Management attempted to stay the course with a win-win approach, but this no longer washed with the union. Can you guess what happened? That’s right – union members walked and went out on strike.
By using an agenda to address the format of the contract negotiations, Bayou Steel failed to consider that any single issue could be so divisive. As the economic issues rose to the foreground of the talks, Bayou Steel no longer had leeway in considering trade-offs. They literally painted themselves into a corner because of their structured of agenda items.
We need to be able to compare and contrast all the issues collectively, and by order of relative importance. Package or multiple offers offer a greater latitude in finding creative solutions as it gives us more to work with, as opposed to dealing with issues on a one-on-one basis through a pre-designed agenda. Planning and using a Concession Strategy effectively can give one side a big power advantage over the other. So be careful to plan your agenda wisely.

[from http://www.negotiations.com/case/win-win/]

Most Often Made Negotiation Mistakes

It seems no matter how many negotiations we have been through.  And no matter how many years of experience we have, mistakes do occur. 

We have to be on our toes and always be aware of possible mistakes that are made.

Click the on the title below to read about the 10 Most Often Mistakes during a negotiation.

The Most-Often-Made Negotiation Mistakes and How to Avoid Them

by Nicole Schapiro

[from nicoleschaprio.com]