We hope that business negotiators find what they're searching for in our free resources. This is the next best thing to coming on one of our negotiation seminars.
Online Negotiation Training Simulation Game
Our Negotiation Sim Game was born out of our frustration. We were frustrated with the age old limitations classroom training suffers in sharing insights with negotiators. Insights are crucial for learners to better inform deal making capabilities. Insights inform better decisions and create those 'aha!' moments that catalyse behaviour change. Clients were happy with their teams' results from our courses. The problem was as negotiation learning specialists, we were
Top 5 Negotiation Skills Proven in Business
At the start of our negotiation skills training seminars, we ask students what makes them feel uneasy about negotiating. Their answers often include: "I'm afraid I won't get the best deal." "I don't enjoy working with certain types of people." "I'm not always sure what needs to be achieved in a particular negotiation and how to get there." "I can get lost in the process and bogged down in details. I lose track of what I really want to achieve." Here are some helpful tips to help you
Sales Negotiation Questions to Get to the Decision Maker
We coach our clients to ask for the decision makers - especially in the best Sales Negotiation Training and our Advanced Negotiation Training courses. Too many people ask ineffective questions like, "Do you make the decisions?" or "Are you the decision maker?" to which most will answer "Yes." Why do people answer 'Yes' when they're not really the decision maker? Simply because everyone wants to think of themselves as important. So, how do you get to your real decision makers?
Salary Negotiation Training Tips for College Students
Occasionally, college graduates are lucky enough to have their employer pay for their spot on one of our negotiation training courses. How well do college graduates perform on our negotiation skills seminars? College students almost always get the lowest scores using our online Sims role plays and generally struggle to hold their own against seasoned negotiators in our negotiation classes. Despite this, college students tell us they're very happy to have learned so much
The Real Negotiation Problem Issue
One of the biggest stumbling blocks encountered negotiators is to clearly understand the real issues as the root cause and basis for the negotiation in the first place. All too many times, negotiators take insufficient time to clearly identify and frame the problem or issues to be resolved and negotiated. This is the crucial first step to any negotiation. If this first phase of the negotiation process is not addressed properly, than it is quite likely that the rest of the negotiation
People need negotiation skills to secure better deals. These deals can be in both your business and personal life. Negotiating skills include methods of:
Professional Freelancer Consultant for Business Contract Negotiator Services
We'll answer your question by sharing general advice on how to choose between the many companies offering you commercial negotiation consultancy services. You're also welcome to call or email us to share more, and take our specific advice on choosing your professional freelancer negotiation consultant with zero commitment or charge. Freelance negotiators are referred to as Agents. Freelance consultants are professionals who represent the interests of the principal
How can Buyers Negotiate a Contractual Price Discount from Vendors?
To get someone to give you more of what you want, you'll find that giving them more of what they want will go a long way. So what do your suppliers value? Vendors or professional sellers the world over are overwhelmingly measured and rewarded on revenue, not margin. Margin usually acts as a constraint to sellers' ambitions. So your best routes to achieving cost savings include: Can you increase the size of your order or buy additional products or services from your vendor? If you
Sales Negotiation Training Tips to Avoid Price Discounting
Professional buyers the world over are almost always measured and rewarded on cost savings - not value created. So a sellers' best route to achieving higher prices and margins include: Are you talking with buyers' internal stakeholders BEFORE you have to talk with the buyer? Most Buyers who graduate from our Procurement Negotiation Training complain that managing their internal stakeholders is their single biggest challenge. If this is news to you, as it is for most sales
Negotiation Diagnostic Profiling
Would you find it useful to gauge your team or company's areas of negotiation strength and weakness? We will identify whether your group is homogeneous, or if their level of skills vary greatly. We also seek to find out what is already working well and how the group differs in their profile of deals. What do you stand to gain by having us diagnose your team or company's negotiation strengths and weakness? We know what questions to ask which ensures that you get the answers you need.
Wing your Tough Negotiation? 9 Steps to Preparation Success
Have you ever left a negotiation feeling battered and bruised like you never had a chance from the word go? Too often, I've seen smart yet unprepared sales professionals torn apart in their meetings. Admittedly, I suffered similarly early in my career. I notched my initial failings up to being part of my hard knocks sales negotiation training journey. Does the path to negotiation success have to be treacherous? I’m a big believer in practicing before the game, not in the game.
How to Fire Tech Support
Negotiating with WalMart Buyers
WalMart, the world's largest retailer, sold $482.1 billion worth of goods in 2016. With its single-minded focus on "EDLP" (everyday low prices) and the power to make or break; suppliers, a partnership with Walmart is either the Holy Grail or the kiss of death, depending on one's perspective. There are numerous media accounts of the corporate monolith riding its suppliers into the ground. But what about those who manage to survive, and thrive, while dealing with the classic
Negotiation tactics are the detailed methods employed by negotiators to gain an advantage. Negotiation Tactics are often deceptive and manipulative and are used to fulfil one party's goals and objectives - often to the detriment of others. This makes most tactics in use today 'win-lose' by nature.
Trust in Negotiation
Nowadays it is difficult to make a deal if there is no trust between counterparts. Even if one manages to make such a deal it will be very challenging to implement it. Building trust is absolutely essential in any meaningful long-term relationship, regardless of whether you're selling, buying, resolving conflict. Most deals, even one-time deals, have consequences in the future. Roger Fisher wrote about the importance of trust, and principled negotiation is largely based
Facilitated Video Review
Our video reviews have destroyed our Negotiation Experts' egos. Why? No matter how captivating our slides or crafted our words, our facilitated video reviews still win our clients' highest praise. How often have you walked away from a negotiation wondering: “How could I have done even better?” or “What did I miss?” or “Why was that so tough?” or “Why don't all my negotiations go as well as this deal?” If these questions sound familiar, then you'll likely begin
Like it or not, we are all negotiators. In fact, we use negotiation techniques almost every day and have done for much of our lives. We negotiated when we were kids trading sports cards or toys. We still negotiate today when we ask the boss for a salary raise. When we buy bigger toys like autos, we're also entering negotiations. Our negotiation skills are also frequently used to maintain our personal relationships. Most of us have family and friends we organize things with, budget
Renegotiation - Snake Charmer
How Microsoft Outnegotiated Netscape in the Browser War
Back in 1996, Steve Case’s AOL was urgently seeking a top notch internet browser to market their products. Both Bill Gates’ Microsoft and Netscape Navigator were vying with AOL to take them on as a client. In terms of their Best Alternative (BA or BATNA), Netscape held a decisive advantage due to its strong technical superiority, presence and dominance in the overall browser market. Microsoft was just in the process of entering the market and held a fledgling percentage
A pre-determined approach or prepared plan of action to achieve a specific goal or objective to potentially find and make an agreement or contract in a negotiation with another party or parties. (also see Negotiation Tactics).
Outsourced Contract Negotiator
Outsourcing the finding and negotiating of your contracts is akin to outsourcing marketing and sales negotiation. I don't know of any company who successfully outsources these crucial areas. You may do better to seek a business partner or employee with these crucial skills before setting up your company. The risk you would expose yourselves to, should something happen to this pivotal person, would be large. I'm going to focus on the negotiation aspect, as this is our area of
Our Client Collaboration Approach
Clients trust our 5 phase Client Collaboration Approach for the creation of their in-house training solutions. Stage 1: Requirements Definition Following our initial discussions, a Company Key will be created for the your delegates in order that they may complete our online Negotiation Diagnostic Profile™. One of the positive effects of this is the engendering of a sense of ownership and influence with regards the training solution. This in turn leads to greater acceptance
"Don't put all your eggs in one basket" is an old saying that has stood the test of time. To a negotiator, this wise old proverb illustrates that if you only negotiate with one other negotiating team, you may end up with a rotten deal. In fact, you may end up with no deal at all. You need to have a strong alternative waiting in the wings to have the power to say "no." Netscape’s BATNA Blunder This site’s case studies are rife with real-life examples of BATNA being the single biggest
'If-Then' in Negotiation
Trust Building in a Trilateral China Japan Western Negotiation
Overview This complex, ongoing negotiation involves three countries, each with players who have their own agenda and preferred outcome. Although at the time of writing the negotiation had yet to become hard-nosed regarding price, delivery, and technology, it shows how relationships develop over time and some of the dynamics at play in this relatively early phase. The Scene Our company (English owned, with regional headquarters in Hong Kong, a joint venture in Japan, and
The most popular way to divide the typical negotiation styles or approaches are: Competing (or Aggressive), Collaborating (or Cooperating), Avoiding, Compromising, Accommodating (Conceding). Most negotiators have one or two preferred negotiation styles. Ideal is to be able to choose to apply the most appropriate negotiation style to each type of negotiation. Skilled negotiators are flexible in switching their negotiating styles depending on:
Internal Team Negotiations
The answer to this question really depends on the situation surrounding the negotiations. Lets explore lesser discussed of the two negotiation:s internal or intra-team. What do you need to bear in mind when preparing for internal or intra-team negotiations? Your success in intra-team or internal negotiations will all too often float or sink depending on how well you've prepared for your stakeholders or colleagues. These factors include: the relative strength of each person
Value Creation Framework
We owe a debt of gratitude to our clients for generously sharing their feedback over the years on our Negotiation Value Creation Framework™ and supporting toolsets. Without our clients’ collaboration in refining and proving the value of our strategies, tool-sets, and processes in the tough and tempered world of their commercial negotiations, our Value Creation Framework™ could not have evolved into the rigourous trusted negotiation methodology it is has become
Salary Negotiation: 32 Job Pay Tips
You're good at what you do, maybe you're an ace. So you're being paid what you're worth, right? See how many of the 32 Salary Negotiation Tips you're using. Why are sales professionals still rewarded with the biggest pay packets? Are sales professionals better qualified or smarter than IT professionals? No, there's no such thing as a sales degree. Do they work longer or harder? Not really. So why then is IT not the best paid profession? Two main reasons: Sales brings home the bacon.
Pay Rise Negotiation
Nepal-India Water Negotiations (Power Asymmetry)
India is 40 times larger in land area than Nepal and India was hungry to meet its increasing electrical power needs. Nepal is one of the poorest nations in the world and is economically linked to India because of its geographic situation. However, Nepal’s water wealth is enormous. Several studies revealed that 89 sites within Nepal are potentially capable of producing 30 gigawatts of hydroelectric power to energy starved India. This case study provides a clear example of
A win-win negotiation settlement is an integrative negotiated agreement. In theory this means the negotiating parties have reached an agreement after fully taking into account each others' interests, such that the agreement cannot be improved upon further by any other agreement. By definition, there are no resources or 'gold' left on the table and all creative options have been thoroughly exploited. "Win-Win" has its roots in Economics Game Theory.
Is Principled Negotiation used in Business?
Most readers may appreciate a short introduction to the phrase 'Principled Negotiation'. 'Principled Negotiation' became known to the world from Fisher and Ury's seminal book "Getting to Yes" (Check out our book review). The phrase 'Principled Negotiation' has become synonymous with the phrase "win win", so you will often find these two phrases used interchangeably. So who uses "Principled Negotiation"? Mainly Northern American Academics and Mediators. Why? Principled
Negotiation Deal Consultancy Services
The Negotiation Experts support clients after the delivery of training. We do this in two ways: Deal consultancy services either side by side with clients or limited to the preparation cycle. Leveraging upon the success of our negotiation training courses,we collaborate with clients on their using our toolsets and techniques taught from afar, through coaching managers on how they can inspect and audit their teams, as well as through team discussions and team meetings. We
Top 10 Interview Questions and Answers
Ever clenched your jaw at a tough interview question? If not, it's only a matter of time until you do, or you're working for daddy. I used to hate job interviews, and I confess that I usually wasn't invited back for a second interview. I got so frustrated with the questions, so I researched psychology and business books, and I published a book on the top 100 questions. Yes, I guess this makes me an obsessive freak. This article distills my top 10 toughest interview questions of all time
Business Expansion Woven From Trust
Another example of someone who fitted in completely with the Chinese is the China trader Paul Winestock, who had been dealing with the Chinese since the 1960s. As a trader of textiles in China during the 1960s and 1970s, Winestock built up a large network of customers and friendly officials. One of the latter, who had known him since he was a young man living in drafty provincial hotels with no dining room, was Li Haoran, who had first appointed Winestock as a selling agent for the
Negotiation meetings are typically where most of the deal is negotiated, with business negotiation meetings these days being face to face and via voice. The proper planning and effective running of negotiating meetings can make or break a deal. The more complexity involved, the more important getting the negotiation meeting planned correctly becomes.
Personal Power in Negotiation
Dealing with power in negotiation should be done with great care. Before using power in any negotiation, be sure to analyse all the possible consequences of using that power. Remember that after you have used your power, you usually dissipate your power. Four important sources of personal power include: Authority or expert power (conferred by your knowledge or qualification on a matter or issue) Personal credibility (conferred by your experience and past track record) The
The Four Phases of The Negotiation Process
'Let us never negotiate out of fear. But let us never fear to negotiate.' John F. Kennedy If you sit down and analyse your negotiation preparation,certain patterns should begin to appear. It's like putting a jigsaw puzzle together. Without consciously being aware, most of us realise that we are approaching negotiations inconsistently, or even haphazardly. There are many benefits to following a tried and tested formula for repeated negotiation success. Negotiation skills
Camp David Third Party Intervener
There are occasions when negotiating parties cannot see the forest for the trees. They are unable to see past their own goals and interests which prevent them from arriving at a successful negotiated multiparty agreement. These are the instances when a third party intervener can help both parties find a solution to the dilemma that is plaguing their talks that have likely stalled. The Egyptian and Israeli conflict of the mid 1970’s posed that kind of dilemma. There were also
Your concession strategy is a plan of the goals / positions and sometimes the underlying interests that you will be trading with the other party. Before you enter the negotiations, at the very least you should have clarity on your and the other party's goals, and an sequence of which goals you want to trade or exchange. Concession strategies vary in detail. 'Concession Strategy' is more accurately called the 'Trading Plan'.
IMF World Bank Debt Governance and Corruption
I read with a knowing smile your words: 'say... they have committed mischief'. For those who invest the time to make themselves knowledgeable by reading about the IMF's corruption and debt governance, particularly from trusted reputable sources online, there can be little doubt that the business of the World Bank, IMF and FED is to commit crimes against humanity for their member bank's benefit. As a negotiator, it's crucial that you start by getting to understand the history
Understanding the Five Negotiation Styles People often ask, "which is the best negotiation style?" As with much management theory, there is no single "best" approach. All five profiles of dealing with stressful and high-pressure negotiations are useful. Determining which to use depends on the given situation. Although we're capable of using all five, we have noticed in our sales negotiation training and contract negotiation training that participants tend to use between
Gates of Heaven
Many negotiation training courses make use of negotiation games in order to teach their delegates useful principles of negotiation, psychology or influence in a fun and interactive environment. Some games are played between pairs, whilst others involve a room full of people. The purpose of most negotiation games is to win or avoid losing. Most negotiation games leave the decision of what 'winning' or 'losing' means to the players. Negotiation role play exercises should
Influencing Decisions in Risk Averse Organisations
Welcome to negotiating internally within the constraints of most risk or loss averse corporate hierarchies. Telling you that you're not alone doesn't go very far to helping you make progress. So here are a few hot spot areas to focus your attention and assist you in achieving maximum internal negotiation skill leverage. What is your company's decision making process? I'm not referring to the organisation chart. One of the best ways to find out how your company 'really' makes
Do You Know When They're Lying?
Is lying just a part of negotiation? Recent studies about lying revealed that complete strangers lie to one another at least three times within the first couple of minutes of meeting one another. Additional research declares that you will be lied to today anywhere between ten and two hundred times! Typical lies told by both men and women include: "I'm on my way." "I'm stuck in traffic." "Sorry I missed your call." "I'm fine thanks" The most common workplace lies: "I'm sick. I won't
The Cost of Death on Chinese Roads
Overview Mark Rogers is an English expatriate in Beijing, where he is the finance director of the branch of a U.S. multinational. He has been in China for seven years, during most of which he has held a Chinese driving license and driven on Chinese roads. In 2004, he was driving to the famous Shaolin Temple, a few hours south of Beijing. An hour out of Beijing, it started to rain heavily, and on taking a sharp turn in the road in Hebei province, he accidentally drove into two pedestrians,
Principled Negotiation is an interest-based approach to negotiation that focusses primarily on conflict management and conflict resolution. Principled negotiation uses an integrative approach to finding a mutually shared outcome. First explained in the book "Getting to Yes", Principled Negotiation is used mostly in North America and is more popular amongst Academics and Mediators than in Business. Sellers have rightly criticized those Academics who put Principled
Negotiation Contract Bidding Process: Defending your Business
Very often we deal with the problem at hand, never noticing that we've completely missed the 'real' issue. So I suggest that you step back from the contract bidding process or tender negotiation and ask yourself a few negotiation questions. Why after 25 years was your contract put up for tender? If this was due to: A deteriorated relationship, then invest time improving your negotiation relationships first. If trust is at an all time low, then consider apologising for any past
What's the Difference Between Contract RFT RFQ RFP RFI?
Contract negotiation training graduates often ask us to explain four key terms that comprise the 'RFx' processes: RFI, RFQ, RFT, and RFP. These processes have grown in popularity in procurement and purchasing. This is especially so in larger buying organizations. Only the best negotiation training teaches how to select the most suitable process. Further, to use each process well, having expert training is key. In practice, you may find people wrongly use these phrases to
The Panama Canal Negotiations
The successful construction of the Panama Canal was one of the world's great engineering feats. The negotiations to complete and build this vital connector between two oceans spans decades. The cost in human lives, suffering, and capital staggers the imagination. It all began in 1847 when the United States entered in a treaty with New Granada (later to be know as Colombia), allowing the U.S. a transit passage over the Isthmus of Panama. The treaty guaranteed Panama's neutrality
A formal agreed upon list of goals to be achieved or items to be discussed in a particular order during a meeting or negotiation. Agendas can be formal and obvious, or informal and subtle in negotiations. A negotiation agenda can be used to control the negotiation meeting.
Serving Food at a Negotiation Meeting
Yes, usually serving food is a good idea. This is a question that seems to be address only on the best negotiation training workshops. Generally speaking, the more informal and less people present, the more collaborative your meeting will be. Eating together is another form of informality. One of the big benefits will include information flowing more freely. Best to manage their expectations. So if you are hosting the meeting, best to let the other party know that you'll be serving
Contract Renegotiation with the Chilean Government
In the 1960’s Kennecott (Rio Tinto), a U.S. company, was about to enter into renegotiation over its contract with the government of Chile concerning its El Teniente copper mine. At the time, Chile’s BATNA appeared overwhelmingly strong as the government was possessed of a strong pro sovereignty stance towards foreign management of its natural resources. Can we take some lessons for our mortgage renegotiations? The government of Chile was politically positioned to
Negotiation Walk Away
Negotiation Walk away is the alternative that a negotiator will act on if they are not successful in a negotiation. A walk away may be an alternative supplier or buyer, to manufacture the product or deliver the service in-house, to wait or simply do nothing i.e. to go without. The walk away answers the negotiation question: "What will you do if you don't agree this deal?"
Negotiating with a Power Imbalance
Whilst integrative negotiation will be generally less effective where there is a significant imbalance in negotiation power between the parties, this does not necessarily mean that the situation cannot be remedied. Accepting the fact that the balance of negotiation power is a dynamic concept, the weaker party in this situation has a number of strategic options: Having assessed the power balance between your side and the other, consider ways and means of: improving your
Job Offer Negotiation Advice
One of the most exciting experiences we can face in life is the prospect of starting a new job. We can literally feel the buzz as anxiety and self confidence ebb and flow through the interview process. Afterwards, we will occasionally catch ourselves staring into space, tapping our fingers, sneaking glances at the phone and eagerly checking our e-mail to see if we’ve had a response. Then, that magical moment comes – we get the job and they want to talk about the job offer. What
Business Mediation Medium
Enron’s Indian Negotiation Debacle
In the early 1990s, the US energy giant Enron, decided it needed to diversify by expanding its growth abroad with emerging countries. In June of 1992, Enron engaged in negotiations with the government of India. Enron had identified the state of Maharashtra, the third largest state in India with a population of roughly 79 million, and containing India’s commercial capital of Mumbai, to negotiate a major energy project. Maharashtra was governed by the Congress Party. Negotiations
An acronym which means a negotiation Zone of Possible Agreement. It is the range or area in which an agreement is satisfactory to both parties involved in the negotiation process. Often also referred to as the "Contracting Zone". Negotiation ZOPA or the Contracting Zone is the range between each parties Walk Away or Real Base or Bottom Lines, and is the overlap area that each party is willing to pay or find acceptable in a negotiation.
How do I Negotiate my Job Title
Most business professionals focus on the money and benefits, giving too little attention to their job title. Job titles are useful when it comes to your NEXT move, so plan ahead. So well done for casting your net widely in your new job negotiation. We recommend your follow our 7 step process to negotiate your job title: Identify who is responsible for your job title change. If you don't already have a relationship with them, build your relationships before you ask for your title
Collective Bargaining Union Negotiation
Collective bargaining negotiation between labour unions and corporate employers constitute a specialized area in the field of general negotiations, but the underlying legal and relationship aspects make them distinct. Unlike a general business negotiation and law suit negotiations that are not regulated by statutory provisions, a collective bargaining negotiation is mandated and governed by external laws. Many different statutes comes into play during the negotiation
Japanese Cultural Mistakes
Scientists and Bureaucrats - Orientation Issues
Overview This case study involves attempts to set up a bilateral scientific research arrangement involving Chinese scientists and Australian government representatives based in the nation’s capital, Canberra. The discussions are ongoing. Three face-to-face meetings between Chinese and Australians have already been held, the first in the United States in 1999 and the subsequent two in Europe in 2001 and 2003. The setting, each time an international scientific conference
This term refers to a distributive negotiation whereby one party’s gain is another party’s loss. Both parties are competing to get the most value from the negotiation. Also called the ‘fixed-pie’ scenario in that there is only a limited amount to be distributed. A term also used in ‘Game Theory’ and Economics. (Also known as Lose-Win Negotiation).
Japanese Negotiation Silence
You look to be suffering from 2 challenges. Firstly, Japanese Negotiators are famed for putting face saving first - yours and theirs. By contrast western negotiators are more concerned about rapidly progressing the relationship or contract, or knowing the reason why they are not interested in taking the contract forward. It's likely that your Japanese counterparty negotiators are saving you from the possible embarrassment of hearing that they have not chosen you as a supplier.
Gaming in Shanghai
Overview HyperHawk, one of the world’s major providers of global supply management software and services, helps companies reduce costs through efficient product and services sourcing. At the time of writing, HyperHawk had handled more than $50 billion worth of products and services in the oil and gas, other natural resources, retail, transport, finance, and industrial sectors for customers including General Motors, Nestlé, Shell, Japan Energy, Mitsubishi, and
A process often employed in ‘Group’ or ‘Multi Party’ negotiations to reach a decision or agreement by the involved negotiating parties. A unanimous decision is only achieved when all the negotiating parties are in total accord in making a decision or an agreement.
Positional Union and Management Negotiators
In the U.S. it's illegal for management to not negotiate past its first offer. From what you've described, it sounds like management are being competitive, positional and may not want to negotiate. If you take their 'position' seriously, then two options include asking them to come back when they are ready to negotiate, or to make a counter proposal. Framing I would suggest that you prepare a carefully worded 'negotiation frame' to talk about collaborating together for mutual
Giving Feedback after a Negotiation
Smart people ask us “How do I give feedback to my colleagues after a negotiation?” This can be a delicate topic, and an area we always invest plenty of time into on our best negotiation training seminars. With this in mind we thought you would like to know Steve Jones' top 7 points on how to offer feedback. Give the feedback immediately after the negotiation has finished. It's proven far easier for people to take in feedback immediately after the event - while it is still fresh
Andorra versus the European Community (EC)
As a vestige of Charlemagne’s Empire, Andorra is a small land locked principality snuggled between France and Spain. Andorra is jointly governed by two co-princes, being the President of France and the Bishop of Ugrell of Spain. The co-princes hold sovereign power over the principality except on issues of economic and social matters. Andorra’s trade was ruled by two parallel agreements negotiated between France and Spain. When the EU negotiated to admit Spain into the
Also sometimes referred to as a ‘Concession’ where one or more parties to a negotiation engage in conceding, yielding, or compromising on issues under negotiation and do so either willingly or unwillingly.
Chinese Business Negotiation Concessions
Why should he propose concessions? His behaviour looks perfectly professional and clever to me. It has put the foreign team on the defensive. Nice one. It might also be the case that the foreigner has introduced "positional negotiation" far too early. If so, that makes me feel that the foreign team has been quite naive - naive in that they expect a sort of tit for that, the Chinese "have" to give a concession now that the foreigners have "so properly" put their position on the table.
Value Creation in Negotiations
Our efforts to create value in any negotiation will be highly limited if they don't from a collaborative negotiation approach with our counterpart. We don’t just want to make a shaky agreement with an angry and resentful partner, but to create a relationship that is solid and durable, and benefits everyone. Ideal is if we can leave the table shaking hands, smiling and feeling pleased that we worked together to make the best possible deal for both of us. All too often the natural
Bargain Brain Surgery
How Giving Face in China Translates to Negotiation Success
Overview Rod Zemanek, the principal negotiator, designer and Project Manager of an Australian chemical engineering consultancy, (Predict Pty Ltd) has a warning for those wanting to do business in China: “Many Chinese see it as their patriotic duty to shoot down foreigners, so you can be like a clay pigeon at target practice.” Despite this, Rod Zemanek has been successful in China and is responsible for the design of many of the country’s modern breweries. He was invited
Negotiation Trading Plan
A negotiation trading plan is a table or spreadsheet that sets out which goals / positions / tradables you are going to exchange or trade with the other party. A trading plan is an essential part of negotiation preparation, especially for complex negotiations. Trading plans should not only identify the goals of each party, trading plans should also rank these goals for each party and set out which goals you want to trade together. The Negotiation Experts clients are trained to
Preparing for Employment Salary Negotiation
In considering how to approach negotiating a pre-employment job offer there are a number of areas you can research beforehand. Preparing for a negotiation is vital to getting the best employment agreement. Having more information at your fingertips will give you a good idea of the list of questions you will need to ask at the interview. Write out your negotiation questions in a manner that will give you best possible information so you can consider the pros and cons. By eliciting
Detecting Lies in Negotiations
Negotiators often don’t say everything they're thinking. Sometimes they hold back or distort information to avoid being exploited by the other party. Disclosing your “walk away” or “must have” conditions can frequently be a risky strategy – particularly with aggressive competing negotiators on the other side. How many times have you been fooled by the other party claiming to have decision making authority when in reality that wasn’t the case? Or maybe they
Creative Problem Solving in Negotiations
All too often, negotiators can become tied up and bound as they commit to taking a competitive approach to their negotiation. As a result, they don't allow themselves to be flexible nor consider a creative approach to derive more value from the negotiations. On the other hand, a common error committed by those who believe they are taking the win-win approach to their talks is to overcompensate their need to find agreement by making unwise compromises. A compromise invariably
The desired negotiation outcome or goal decided at the start of the negotiation. This is best set across each and every aspect of a negotiation (e.g. price, term, volume etc). Some organisations set an ambitious negotiation aspiration or opening offer, and a less ambitious negotiation target, while for others these are one in the same. The level of negotiation aspiration is heavily influenced by a country's culture, with the Germans setting lower aspirations and the Chinese
Westerners Chinese Negotiation Failure
Q1: I assume that this means "fail to reach an agreement". There are dozens of possible causes. Here are a few common reasons: Failure to develop friendly, trusting relationships with the Chinese Failure to understand what Chinese negotiators really want from an agreement The Chinese team has not developed a coherent set of demands because they have conflicts within their own team There is no one in the foreign team to guide them on understanding the Chinese and / or they do not
Negotiation Debt Management Advice for Businesses
Being in debt can feel like trudging through a mud drenched field after a heavy rain. Thinking about your debt can haunt you, whirling around in your brain during the early morning hours, while you restlessly toss and turn. You've done everything right but many outside factors are simply out of your control, these can include: An important client cancels your biggest contract Creditors demand faster repayments Your bank won't roll or renew your loan Your staff threaten to strike
Negotiation Course Defence
Power in a Canadian Trade Negotiation
There are many occasions when a smaller company will want to form a negotiation partnership with a larger organization to further their business objectives. There are two hurdles that the smaller company might have to overcome to succeed in the negotiation process. The first problem is to get the larger organization’s attention as they may express little or no interest in the partnership. The second problem revolves around the prickly issue of negotiating from a much weaker
Salary negotiation is a process where one party (usually the employee) negotiates the amount of their pay, income, earnings, commission, salary, wages, wage remuneration, annual review, or salary raise with another party (usually a representative of the employer, such as their manager).
It is always a difficult task for a negotiator to deal with people who approach negotiation as if it was a competition, with only one possible win-lose outcome. However, difficult does not mean impossible. As in any negotiation process, one of the most important tasks for you would be to discover and identify the other sides values and underlying needs. If you are aware of the reason behind the other sides behaviour, you are more likely to be able to effect changes in his behaviour
Business Negotiation Metaphors
"A good metaphor is something even the police should keep an eye on." Georg Christoph Lichtenberg Words can have a powerful impact. The manner in which words are applied in a business negotiation can make or break the deal. This is especially clear if our dialogue is phrased poorly, misinterpreted or misunderstood. Words can evoke visceral reactions or emotional responses such as boiling rage or howls of laughter. The language we use also provides some clues and insight about
Kuwait Invasion Negotiation Perspective
On a scorching summer day in August 1990, the citizens of Kuwait stared in puzzlement then fear at the encroaching dusty streams of what appeared to be a pending desert sandstorm. To their dismay and horror filled eyes, the quaking citizenry had become helpless witnesses to the advancing forces of once CIA asset Saddam Hussein's Iraqi army. Kuwaiti resistance was swept aside much like one casually brushes away a crumb from one’s lapel. Kuwait had been drilling laterally into
A high level or approach in the amount of risk that a negotiator is prepared to accept in a negotiation.. A negotiator who decides to gamble rather than accept the ‘sure thing’, and who has the expectation that they will gain more in a negotiation is said to be ‘risk-seeking’.
Top 10 Crucial Rules for College Grad Interview Negotiations
If you're fresh out of college and going for job interviews, chances are you're at a big disadvantage. Why? Your interviewer is likely to have years of interview negotiation experience over you. Time someone levelled the playing field: 10. Aim High & Negotiate! Does a sports coach tell his team to 'take it easy and just hope for the best' before they run onto the field or pitch? Not unless he hates holding trophies. So if a winning sports team runs out aiming high, then so should you
Negotiation School of Hard Knocks
Lehman Leadership Negotiation Rivalry
Many people like to believe that the people in charge of the organizations that employ them are always working as a skillful trained negotiation team, united in working towards achieving unified goals and objectives. We like to believe that our management team has our company's best interests at heart. Well, sorry to stick a pin in this balloon, this case study illustrates a contrasting example. Situations such as the one shared in this case study occurs more often than many
A low level or approach in the amount of risk that a negotiator is prepared to accept in a negotiation. A negotiator who decides to accept the "sure thing" where a result is certain to be achieved is said to be "risk-averse", and is not willing to gamble further on a potential negotiated result.
Effective Negotiation Techniques
Your answer should be in line with the goals that management should aim for in developing any company-wide strategy or vision. Every negotiator should take responsibility in developing his or her own tool-kit of effective negotiation skills techniques. An effective negotiator: Aligns negotiation goals (strategy) with organisational goals (strategy), Prepares thoroughly and uses each negotiating phase to prepare techniques further, Uses negotiation meeting to discover
International Forex Currency Risk Agreements (Part 1)
My Currency or Yours? Billions of Dollars, Euros, Yen, British Pounds and a multitude form of international currency whips around the world electronically every day, in a mind numbing blink of the eye. Every business person knows how easily a country's currency can fluctuate and wobble wildly due to a variety of reasons. Currency traders can raise the value of a developing country's currency to soaring heights one day, and bring it crashing down a week later. Many of these impacts
Buying Real Estate
Chinese Water Selling Negotiation
Overview Acqua International (AQ) is a Europe-based multinational company that has interests in water and other environment-related businesses. In China, the company has joint ventures with medium-size and large municipalities to produce and sell potable water. To increase its investments in China, the AQ Group arranged, through its local subsidiary Pacific Acqua International (PAQ), to enter into a strategic alliance with Tak Foy and Co., a Chinese conglomerate with
The reservation price is the least favourable point at which one will accept a negotiated agreement. For example, for a seller this means the least amount (minimum) or bottom line they would be prepared to accept, while for a buyer it would mean the most (maximum) or bottom line that they would be prepared to pay. It is also sometimes referred to as the ‘walk away’ point.
Chinese Team Negotiation
Cross-cultural negotiation requires very detailed preparation on cultural differences. The history of business negotiation shows that many negotiations in China failed not because of lack of common ground but rather because of ignorance of cultural differences. Many western academics have commented that China sees herself as Chung-Kuo – the middle kingdom, the centre of the universe. This view states that the Chinese feel superior in the area of moral and spiritual
Conflict Negotiation: Psychological Dynamics
"It is easier to perceive error than to find the truth, for the former lies on the surface and is easily seen, while the latter lies in the depth, where few are willing to search for it." Johann Wolfgang Von Goethe Freud is alleged to have said, "A cigar is just a cigar". Yet at the negotiation table, differences in perception are too often distorted and magnified by the emotions and biased outcomes of one or more parties. Negotiation often needs to go through a conflict resolution
Using Mediation for Resolving Disputes
Companies that find themselves embroiled in a bitter feud over a contract dispute have three options to find a solution. They can litigate their claim through the court system; go to arbitration; or use a mediator to resolve the dispute. Many companies have invariably used one of these processes to address a dispute. There are significant differences that should be considered before deciding upon which method to employ. It probably goes without saying that litigation is likely
The act of making a similar or like exchange of something in return for something given by one party to another party. In a negotiation, this could entail an exchange of information and/or an exchange of concessions between the negotiating parties.
Win Win Negotiation Style for Purchasing
In every negotiation, no matter if you're buying, selling, solving conflicts or negotiating your salary, there is always something laying beneath your negotiation, something that motivates people to dedicate the time to meet and negotiate with you. In business and everyday life, each of us has something that drives us towards our desires, goals and aspirations. This drive makes us behave in a particular way and use different negotiation styles. What we want, why and how badly
What Is Win-Win Negotiation?
Ever heard someone say that they 'gave away the farm'? Despite our best intentions, we sometimes negotiate too much value away to arrive at an agreement. Even when we go into our talks with high motivations and a grandiose exuberant spirit of cooperation, we have to be wary and dip our toes cautiously into the waters to make sure we aren't about to be devoured by a grinning and hungry shark. Today, many of us hear that win-win negotiations are all the rage. Academia has in more recent
Negotiating with your Kids
How NOT to Negotiate in China
Overview In 1998 Simon Turner worked for Bassano, a large Australian women's wear company with eighteen retail outlets across Australia. The following story recounts his experience in a business negotiation in Beijing with Happy Clothing. Bassano required a cheaper manufacturer of tailored women's wear and approached Happy Clothing, a tailored menswear manufacturer, to provide this service. Turner and his CEO Brian Thompson travelled to Beijing with a Chinese-Australian
Rapport happens across a number of levels. In business, most people associate rapport with matching and mirroring body language. Rapport brings you and the other party you're seeking to influnece into synch. When done well, rapport is undetectable, and works at the unconcious level. Rapport is more difficult to detect on the auditory level. So if you adjust your volume, cadence, inflection, pitch, resonance, length of sentences to that of the person or people you're seeking
How to Build Client Business Relationships
A top tier accounting firm was busy celebrating another year of fee income growth from one of its most important audit clients, a huge telecommunications business. The audit had run smoothly from the accountants’ view, despite some hiccups on delivery times and quality control, but overall, the advisers were happy with the depth of the relationship and their position to keep the plum business. So, when the client asked for an internal review of the account service to negotiate
Attacking at War Negotiation
Unequal Indonesian Foreign Negotiations
When two parties enter into an unequal negotiation, in terms of the negotiation power they bring to the table, the interests or goals of either party can have a dramatic influence on the positions they adopt in the negotiations. Sometimes this can have the effect of giving the weaker more negotiating power. Usually however, this power disparity is leveraged by the more powerful party for their advantage. The negotiation case study of the U.S. – Indonesian negotiations over
Purchase Order Financing
The assignment of purchase orders by a business to a third party who accepts responsibility for billing and collecting from buyers of the company's products and services. It is a form of expensive financing used to purchase materials required to produce products needed to fulfil a purchase order already received from a buyer.
21 Fun Stress Releases and How to Negotiate them
If you work in IT, and you're not experiencing stress on the job, consider yourself lucky - very lucky. In a 2006 stress survey, 97% of people working in IT reported that they experienced on the job stress - not just occasionally - but on a daily basis. Medical professionals who frequently experience trauma and death among patients, had the next highest stress. Stress leads to physical conditions including obesity, diabetes, ulcers, high blood pressure, high cholesterol, cardiovascular
Negotiation Agenda Planning
Win-Win Negotiation Badly Executed
In trying to create win-win negotiation agreements, one of the biggest mistakes made by negotiators who haven't taken the best negotiation training seminars 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
Negotiation Procurement Solution
Business services provided by internal specialists or external vendors or consultants. Procurement Solutions includes skills development ranging from purchasing or procurement training, coaching, consulting or other education services, as well as input on any procurement procedure as it relates to any aspect of the supply chain. Three main areas include sourcing costs, logistics management and aspects of manufacturing. Typical focal areas include achieving price
Getting to Yes (book review)
'Getting to Yes - Negotiating Agreement Without Giving In' by Roger Fisher and William Ury was first published in 1981 and has become a classic read for any novice interested in learning negotiation skills. The reader should be aware however, while although still a very useful read, negotiation theory has not remained static over the years. Many negotiation writers have challenged some aspects of Fisher and Urys model and approach, as negotiation itself has evolved due to
The Fixed Pie Syndrome in Union Negotiation
The mythical fixed pie syndrome is one of those bizarre anomalies that still persistently seep stealthily into the minds of the largest corporations. It is not unlike a virulent pestilence that paralyses its host into a rigid mindset, blurring the host’s vision into a fixed stare where its hapless victim can see nothing more than what sits on the negotiation table. Many agreements fail to materialise because of this limited vision. The resulting loss of potential trade-offs
The primary decision making authority in a negotiation. Third party agents will often represent the interests or objectives of a principal in a negotiation.
Gender Negotiation Communication Style Differences: Women Little did we know that the communication differences we experienced as children on the playground would move from the classroom to the boardroom. As the face of business transforms with more women occupying key management positions, the requirement of reducing the gender communication gap is growing: miscommunication can cost money, opportunities, and jobs. Statistics tell the story. In the USA, women compose
Chinese Negotiation Training on Sales Price
Sales Negotiation Overview K. G. Marwin Inc. developed a particular technology in the 1980s, called the Trilliamp Process, that the Chinese government sought to buy and integrate into an ethylene facility in Lanzhou, the capital of Gansu province. Marwin's successful sales negotiation resulted in a contract with Chinese Government, which in 1985 invited further sales inquiries from U.S. and Japanese manufacturers for production of the machinery. Marwin recommended
Negotiators' positions are the things they demand you give them and also the things that they refuse to provide you with. Negotiation positions are typically communicated in meetings, emails and proposals. Inexperienced negotiators too often take the positions of the other side at face value, and don't probe with questions or challenge sufficiently.
8 Effective Negotiation Training Skills
We learn a lot from school and later skills training, but the truth is that unless we learn the most important lessons and can apply these skills outside of the classroom in the tough school of hard knocks we call 'real life', our results will be less than stellar. So which are the training course theories that will serve us best in the real world in our business negotiation challenges? Learning to negotiate effectively in negotiation does not come naturally to everyone. A few of
Third Party Agents
Third party agents are often used to represent our interests in the negotiation process. We use them as we believe that their expertise as negotiators well better serve our goals and achieve better results. Many agents are paid on a commission basis. As a consequence, they can be very concerned about a negotiated outcome because of what they might derive from the negotiation. Their influence and effectiveness in the outcome also directly relates to the reputation they stand
An interactive process between two or more negotiators or parties seeking to find common ground on an issue or issues of mutual interest or dispute, where the involved negotiators or parties seek to make or find a mutually acceptable agreement that will be honoured by all.
Internal Negotiations: Supporting the External Deal
Considerable effort is given to negotiation training and preparation by negotiators in their external negotiation interactions with clients, suppliers, partner and competitors. We have seen from our experience from training B2B salespeople, account managers, and regulatory team members, just how often their internal negotiations positively or negatively impact external negotiated agreements. All too frequently the internal negotiations are not given their just
The Price of Giving Face in China
Overview Chando, a Chinese shipbuilder, had agreed to change the main engine in a ship it was building for the Danish shipowner Danske. Although this would involve a lot of work and great expense for Chando, it was willing to substitute a low-speed engine for one of medium speed. Prior to this, Jurgen Martens, Danske’s vice-president and technical director, had made a very good impression on the senior Chando people, as had their sales and marketing director. Usually, a shipyard