1. Deadlock Breaking NegotiationsDeadlock Breaking Negotiations
Four Techniques to move
Negotiations beyond
Deadlock
By F. Michael Babineaux, CPSM, C.P.M.
President/CEO
Babineaux Educational Services and Training, Inc.
www.BESTraining.com
901.853.0539
for
2. Who Am I?
• F. Michael “Mike” Babineaux, CPSM, C.P.M.
• Experience
– 40 years Supply Chain Management
Experience
– 30 year FedEx Veteran
• SCM Educator and Trainer
Babineaux Educational Services and Training, Inc.
www.BESTraining.com
901.853.0539
3. My Stories of No
• Breakfast with spouse and a new car
– Don’t be ridiculous – can’t afford
• Carefully prepared proposal with the boss
– Been there, done that, didn’t work – next item
• Returning toaster and store policy
– No sales slip – no return
• Contract closing
– 5% increase or no sale
4. Agenda & Direction
• Foundation
– Four Facts of Negotiation
– Definitions
– Negotiation Flow
– Negotiation Objectives
• Deadlock Causes
&
• Breakthrough Techniques
5. Four Facts of Negotiating Life
1. Most things you want are not in your
immediate control
• A day off with pay
would not normally
be within your total
control.
• For those things,
you must negotiate
6. Four Facts of Negotiating Life
2. Everybody has different wants, needs and
desires
• You may want
information, your
colleague may want
recognition.
• Each for their own
reasons, and different.
7. Four Facts of Negotiating Life
3. A particular approach may not work all
the time
• Just like fishing,
sometimes you
can catch 'em on
worms
• Other times, they
just don’t bite
8. Four Facts of Negotiating Life
4. To be forewarned is to be forearmed
• It's a good strategy
to plan, prepare and
practice.
• You'll be much more
effective, if you've
thought about it.
9. Key PointKey Point
“You don’t get what you deserve,
you get what you negotiate”
Chester Karrass
10. Agenda & Direction
• Foundation
– Definitions
• Deadlock Causes
&
• Breakthrough Techniques
11. Defining the Subject
• Negotiating - Give as little as you can
while getting as much as you can
12. Defining the Subject
• Bargaining - Give as little as you can
while getting as much as you can
– Bargaining has its place
13. Defining the Subject
A collaboration between people in which
they consider alternatives to arrive at
mutually agreeable solutions and/or
objectives
Negotiation
15. Negotiation Strategy Matrix
Strategic Quadrant Strategy
• Focus on Building Relationships
– Collaborative or interdependent
relationships (e.g. Strategic
Alliances)
Business
Impact
Marketplace Complexity
Low
High
Low High
StrategicLeverage
Routine Bottleneck
16. Defining the Subject
A collaboration between people in which
they consider alternatives to arrive at
mutually agreeable solutions and/or
objectives
Negotiation
17. Defining the Subject
A collaboration between people in which
they consider alternatives to arrive at
mutually agreeable solutions and/or
objectives
Negotiation
18. Key Negotiation Goals and Results
• Goal – Have a collaborative relationship
• Results - For the future
19. Defining the Subject
A collaboration between people in which
they consider alternatives to arrive at
mutually agreeable solutions and/or
objectives
Negotiation
20. Key Negotiation Goals and Results
• Goal - Mutually Satisfying Agreement
• Results - So that it happens
26. Creating a Favorable Environment
Describe Positions
–The more discussion,
the more understanding
27. Creating a Favorable Environment
Describe Positions
– The more discussion,
the more understanding
– Ask questions, don’t
make statements
– Look for the reason for
their positions
– Look for common
ground
28. “You can lead a horse to water but,
you can’t make it drink”
Unless you run it around the pond long
enough to make it thirsty.
Creating a Favorable Environment
31. Deadlock Causes During Negotiation Flow
Personality
Differences
Negotiation Flow Deadlock CauseNegotiation Objective
Entry
Create a Favorable Climate
Getting to know them
32. Defining the Subject
A collaboration between people in which
they consider alternatives to arrive at
mutually agreeable solutions and/or
objectives.
Negotiation
33. Observable Behavior of
Negotiators
Quick Decisions
No Detail
Gut Feelings
Relaxed
Relationships
Habits/Routines
Quick Decisions
No Time Wasting
Control
Slow Decisions
Detailed
Calm
Facts
Feelings
Ask Assertive Tell Assertive
Opposites DO NOT Attract
35. Perception vs RealityPerception vs Reality
Getting To Yes by Fisher and Ury
“Understanding the other side’s thinking is not
simply a useful activity that will help you solve
your problem.”
“Their thinking is the problem.”
“As useful as looking for objective reality can be,
it is the reality as each side sees it that
constitutes the problem in a negotiation and
opens the way to a solution.”
“Ultimately, however, conflict lies not in objective
reality, but in people’s heads.”
36. Dealing With Perception
Issues
• Before Negotiation
– How to Prevent
Perception Challenges
• During Negotiation
– How to Overcome
Perception Challenges
37. • Before Negotiation
– Look at it from their point of view
• How do they see the issue?
– Don’t Blame them for your
problems
• That makes them defensive
– Don’t assume the worst
• You’ll make it worst than it is
Dealing With Perception
Issues
38. • During Negotiation
– Get them involved
• Part of solution – not
problem
– Help them save face
• Need to reconcile position
with principal
– Act inconsistently with
their perception
• Sending messages
different than expected
Dealing With Perception
Issues
39. Beware of Perceptions
People will Act on their Perceptions
Key PointKey Point
Negotiators are People First
Understand their Personalities
40. Deadlock Causes and Breakers
Personality
Differences
Negotiation Flow Deadlock BreakerDeadlock Cause
Entry
Take it to
Another Place
41. Take it To Another Place
How to...
– Pause and
say nothing
– Take a Time
out
While there...
– Examine how
you feel
– Keep eye on
Prize
42. Take it To Another Place
How to...
– Pause and
say nothing
– Take a Time
out
While there...
– Examine how
you feel
– Keep eye on
Prize
43. Take it To Another Place -
Key Point
Don’t Let Them
Get To You
44. Negotiation Objectives
Negotiation Flow Deadlock CauseNegotiation Objective
Entry
Uncovering Interest
Asking QuestionsExploration
Create a Favorable Climate
Getting to know them
Personality
Differences
45. Positions Versus Interest
• Position = A stance that excludes the
possibility of any other
– What people say they want
• Interest = What people really want
– Why they take a position
46. Positions Versus InterestPositions Versus Interest
The Orange Problem
The basic problem in a negotiation lies
not in conflicting positions, but in the
conflict of interests.
48. Three Kinds of InterestsThree Kinds of Interests
• I have a car to sell
• You want to buy a car
I want $1000 for the
car
You want to pay
$900 for the car
• You’re looking for
a red car
• I’ve got a green car
50. Deadlock Causes During Negotiation Flow
Negotiation Flow Deadlock CauseNegotiation Objective
Entry
Uncovering Interest
Asking QuestionsExploration
Create a Favorable Climate
Getting to know them
You don’t
understand
Personality
Differences
51. Deadlock Causes and Breakers
Personality
Differences
Negotiation Flow Deadlock BreakerDeadlock Cause
Entry
Take it to
Another Place
Exploration
You don’t
understand
Walk in their
Shoes
52. Walk in Their Shoes - How to
Listen Actively
Paraphrase
Ask for Corrections
53. Walk in Their Shoes - How to
Acknowledge a point
Acknowledge their Feelings
Offer Apologies
54. Walk in Their Shoes - How to
Agree whenever you can
Accumulate Yeses
Tune in to their Wavelength
55. Walk in Their Shoes - How to
Acknowledge their person
Their Authority
Their Competence
56. Covey Quote
The Fifth Habit – Seek first to
understand . . .
“The psychological equivalent
of air is to feel understood.”
Stephen R. Covey
57. Walk in Their Shoes – Key Point
Seek
FIRST
To
Understand
58. Negotiation Objectives
Negotiation Flow Deadlock CauseNegotiation Objective
Entry
Uncovering Interest
Asking questions
Exploration
Create Favorable Climate
Getting to know them
Give and Take
Developing Alternatives
Stretch your thinking
You don’t
understand
Personality
Differences
60. Develop Mutual GainDevelop Mutual Gain
AlternativesAlternatives
• Tips for Successful Alternative Invention
– Invent before judging
• Like Brainstorming
– Invent a wide range of options
• Think out of the box
61. Stretching Your ThinkingStretching Your Thinking
The Nine Dot Exercise
Connect all dots with only 4 straight
lines and without lifting your pen
62. Developing AlternativesDeveloping Alternatives
10 Killer Phases10 Killer Phases
Killer Phrases
– A good idea, but . . .
– It’s against policy
– Be practical!
– That’s all right in theory,
but . . .
– The boss won’t go for it
And these
– Are you serious?!
– Don’t be ridiculous
– That’s dumb
– We tried that before
– That wasn’t what I
had in mind
64. Deadlock Causes During Negotiation Flow
Negotiation Flow Deadlock CauseNegotiation Objective
Entry
Uncovering Interest
Asking QuestionsExploration
Create a Favorable Climate
Getting to know them
You don’t
understand
Personality
Differences
Exploration
Developing Alternatives
Stretch your thinking
Resistance to
your ideas
65. Resistance? What causes it?
Not their idea - Not Invented Here
Interest unmet - Just overlooked
Fear losing face - Looking bad
Too much too fast - Easier to say no
66. Deadlock Causes and Breakers
Personality
Differences
Negotiation Flow Deadlock BreakerDeadlock Cause
Entry Take it to
Another Place
Exploration
You don’t
understand
Walk in their
Shoes
Give and Take
Resistance to
your ideas
Bridge
the Gap
67. Bridge the Gap – What is it ?
A Way to Get to Yes
Not their idea - Not invented here
Interest unmet - Just overlooked
Fear losing face - Looking bad
Too much too fast - Easier to say no
Involve them
Look beyond position
Give them an out
A little at a time
69. Negotiation Objectives
Negotiation Flow Deadlock CauseNegotiation Objective
Entry
Uncovering Interest
Asking questions
Exploration
Create Favorable Climate
Getting to know them
Give and Take
Developing Alternatives
Stretch your thinking
You don’t
understand
Personality
Differences
Closing
Agreeing to best
Use Objective Criteria
Resistance to
your ideas
70. Using an Objective CriteriaUsing an Objective Criteria
• Examples
– Market value
– Tradition/Precedent
– Fairness/Equal Treatment
– Others Judgment
71. Using an Objective CriteriaUsing an Objective Criteria
• How to do it -
– Be open to what criteria to use
– Jointly agree
– Ask questions
72. Using an Objective CriteriaUsing an Objective Criteria
• Sample questions to ask
– What’s fair?
– How do others do it?
73. Using an Objective CriteriaUsing an Objective Criteria
• Basic Points
– Agree first on the principle
– Various ways to launch an
independent criteria discussion
• Bring up the general idea of an objective
criteria
• Suggest one or more
75. Deadlock Causes and Breakers
Personality
Differences
Negotiation Flow Deadlock BreakerDeadlock Cause
Entry Take it to
Another Place
Exploration
You don’t
understand
Walk in their
Shoes
Give and Take
Resistance to
your ideas
Bridge the Gap
Closing
They don’t
understand
76. Guidelines for Making Offers
• Presenting Offers
– Propose - Don’t Foreclose
• What if we . . .
– Present as a Gain
• With this you can . . .
– Be Specific
• That’s 16 oz per . . .
77. Guidelines for Making Offers
• First Offers
– When – Clear Specs
– How – Don’t start with bottom line
78. Guidelines for Making Offers
• Evaluating an Offer
– Does it Satisfy?
– Are you Happy?
79. Guidelines for Making Offers
• Making Counteroffers
– What’s Acceptable
– Combined Interest
80. • Benefits should be
talked about before
actual price
How to Talk Price
81. • If offer good, say so
• If offer not great,
say you are open
to counter offer
How to Talk Price
82. • Would you accept
the offer if someone
made it to you
How to Talk Price
83. Deadlock Causes and Breakers
Personality
Differences
Negotiation Flow Deadlock BreakerDeadlock Cause
Entry Take it to
Another Place
Exploration
You don’t
understand
Walk in their
Shoes
Give and Take
Resistance to
your ideas
Bridge the Gap
Closing
They don’t
understand
Use Power
to Convince
84. Use Power To Convince – What is it
• Types of Negotiating power
–Things the Others Want
• Product endorsements
• Tie in Services
• Money
85. Use Power To Convince – What is it
• Types of Negotiating power
–Things the Others Want
–Formal
• Title
• Status
• Situational
86. Use Power To Convince – What is it
• Types of Negotiating power
–Things the Others Want
–Formal
–Personal
• Charisma
• Conviction
• Consistency
87. Use Power To Convince
– How to do it
Ask reality-testing questions
- Are you sure you want to end like this?
88. Use Power To Convince
– How to do it
Warn, but don’t threaten
- If we can’t come to agreement, I’ll . . .
89. Use Power To Convince
– How to do it
Display BATNA - without using
- We have other things we’re considering, so . . .
90. Display a BATNA
What is a B.A.T.N.A.?
Best
Alternative
To
Negotiated or
Agreement
No
100. Negotiation Objectives
Negotiation Flow Negotiation Objective
Entry
Uncovering Interest
Asking questions
Exploration
Create Favorable Climate
Getting to know them
Give and Take
Developing Alternatives
Stretch your thinking
Closing
Agree to best option
Use Objective Criteria
Break?
101. Deadlock Causes and Breakers
Summary
Personality
Differences
Negotiation Flow Deadlock BreakerDeadlock Cause
Entry Take it to
Another Place
Exploration
You don’t
understand
Walk in their
Shoes
Give and Take
Resistance to
your ideas
Bridge
the Gap
Closing
They don’t
understand
Use Power
to Convince
Negotiation Objectives
Creating
Climate
Uncovering
Interest
Developing
Alternatives
Agreeing to
Best
102. Deadlock Breaking NegotiationsDeadlock Breaking Negotiations
Four Techniques to move
Negotiations beyond
Deadlock
By F. Michael Babineaux, CPSM, C.P.M.
President/CEO
Babineaux Educational Services and Training, Inc.
www.BESTraining.com
901.853.0539
for
Editor's Notes
Routine/non-critical components –Low Business Impact and low marketplace complexity.
Bottleneck - Bottleneck items are low-value, high-risk products with customized specifications and technologies. Items in this category are generally purchased in larger quantities. Inventory levels are monitored more closely to avoid interruptions to supply. The relationship with the supplier is important to the buying organization but supply professionals will search for alternative suppliers to avoid the risk of supply interruptions.Leverage buy - Leverage components: Leveraged items are those that have "a large number of suppliers who are all capable of supplying the same product, and the dollars spent are significant." These items are relatively low risk to obtain, yet have a major effect on the organization’s competitiveness. The dominant strategy is to leverage the organization’s volume to get lower prices
Strategic - Strategic components have a high risk of-supply and high importance-to-competitiveness items. There are only a few suppliers, or perhaps only one, that have the technical capability and capacity to meet the buying organization's needs, so it is difficult to switch suppliers. Expenditures for strategic items also generally are high, and require supply strategies that reduce costs and ensure continuity of supply. These items are generally managed through closer win/win partnership-type relationships.
Strategic - Strategic components have a high risk of-supply and high importance-to-competitiveness items. There are only a few suppliers, or perhaps only one, that have the technical capability and capacity to meet the buying organization's needs, so it is difficult to switch suppliers. Expenditures for strategic items also generally are high, and require supply strategies that reduce costs and ensure continuity of supply.
Strategic - These items are generally managed through closer win/win partnership-type relationships.
If you know the answer, please don’t tell anyone
Instructions:
Connect all nine dots
Using only four straight lines
Without lifting your pencil from the page
Allow 5 minutes
Trying to solve this problem by staying “within the nine dots” makes a solution impossible
What can we learn from this activity?
Creative problem solving often involves being willing to go outside conventional boundaries to seek imaginative solutions.
