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The Art of Principled Negotiation

2.
Hello

3.
Samuel Tait
Managing Partner, I/O
(Innovation Consulting)
/in/samueltait
@samuel_tait
welcometo.io
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4.
driving growth / through innovation
where human-centred design meets strategy consulting

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The Art of
Principled Negotiation
Xi THINK
Tuesday 23rd February, 2016
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The Negotiator
Tonight’s talk is on “The Negotiator”
a film from 1998.
“In a desperate attempt to prove his
innocence, a skilled police negotiator
accused of corruption and murder takes
hostages in a government office to gain
the time he needs to find the truth.”
Starring:
• Samuel L Jackson
• Kevin Spacey
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We negotiate every day
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THE SMALL
THE BIG
Your salary
Buying a house
Prenup Projects at work
Who pays for dinner

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The Art of Principled Negotiation
6 books to give away
You must return a
completed statement of
agreement form to go into
the draw
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Game #1 - Used Car
The scenario for this role-play
involves a single issue: the price
of a used car that’s for sale.
#1 = Buyer
#2 = Seller
Preparation = 3min
Negotiate = 7min
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What is
Negotiation?
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What I learnt at Wharton Business School
Wharton - Negotiations Course
The science and art of
creating agreements
between
two or more parties.
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What I learnt at Wharton Business School
Wharton - Negotiations Course
The course has two purposes.
First, develop theories to
guide negotiations.
(That’s the science.)
Second, develop & sharpen
negotiating skills.
(That’s the art.)
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Negotiation
The process whereby two or more
parties decide what to give and take in
their relationship,
and through a process of mutual
influence,
come to an agreed course of action.
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Principled Negotiation
Focuses on WIN-WIN OUTCOMES.
With any negotiation being judged by the
following criteria
1. It should be a WISE AGREEMENT
2. It should be EFFICIENT
3. It should IMPROVE THE RELATIONSHIP
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#1 - Preparation is key
• Prepare rigorously
• Negotiating starts at home
• Research the situation
• Plan potential scenarios
• Role play scenarios
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#2 - Trust and rapport
•Build trust & rapport
•Your influence increases if
people like you
•Quick wins upfront can earn
trust
•Frame: In it together to
solve the problem
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#3 - Listen and share
•Listen to what is being said
•Find out what it is they want
•Ask open ended questions
•Share what it is you want in
exchange
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#4 - Value and trade
•Find out what you value
differently
•Trade them
•eg how risky you think
something is versus the
other party
•The value / price YOU place
on something is different to
the other party
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#5 - Grow the pie
•If you can work together to
grow the the pie (benefits),
you’ll both go home with
larger slices
•Trade things of unequal
value
•Trust can create an
environment for creative
solutions
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#6 - Claim it
•Don’t hesitate to go after
what you want
•If you don’t ask..you don’t
get
•Aim for the high side of
reasonable
•Know you deserve it
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#7 - Know thyself…
•temet nosce…and to thine
own self be true
•Know your individual &
personality strengths
•Know your weaknesses
•Forearmed is forewarned
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#8 - Understand power
•Power is how much value
you bring to the table
relative to how much value
they bring to you
•Understand power and your
position
•Are you in a more powerful
or less powerful position?
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#9 - Find the ZOPA
•ZOPA = Zone Of Possible
Agreement
•e.g. when a buyer’s maximum
price is higher than the
seller’s minimum price
•Asking questions can help
you find out if there is a
ZOPA
•No ZOPA / No DEAL
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#10 - Know your BATNA
•BATNA = Best Alternative To
a Negotiated Agreement
•Always know your BATNA
•It will become your best
friend
•The happier you are with the
BATNA as an outcome the
more power you have in the
negotiation
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25.
Game #2 - House Sale
The scenario for this role-play
involves a single issue: the
price of a house that’s for sale.
#1 = Seller
#2 = Buyer
Prep = 7min
Negotiate = 15min
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And that’s why
it’s called
“Getting to Yes”

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Over to you
Questions?
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28.
cheers.
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Thank you!
welcometo.io
Suite 807, 46 Kippax St
Surry Hills, NSW, 2010
Call us.
Phone: +61 (0)473 197 713
samuel.tait@welcometo.io