High-level deal making, negotiating and closing business. Fund raising, merger & acquisitions.

1. Negotiating 101

2. ● Negotiationg vs. Persuading
● Key factors in negotiations
● Quick workshop
● The negotiations muscle
Format: I’ll keep this interactive, but might defer some things to “lets
talk later”.
How should you give back? share info by tweeting: #KarmaNegotiations
What will we cover today?

3. What is it, Why do we do it?
•Negotiations is a process of communications with a goal to reach a
joint decision and commitment.
•Rent vs. Buy (Acquisition vs. Business Dev)
•Negotiation vs. Persuasion. Great book: Influence: The Psychology of
Persuasion

4. We negotiate to settle differences
What’s so hard about it?
• How we feel
• How we think we are made to feel
• Assumptions about our position
• Unknowns

5. • Interest-driven vs positional.
• Positional: Ego, lose/lose
• Interests driven: “The two sisters and the orange”
• Separating the people from the problem.
• Substance / Organizational vs. Personal vs. Relationship
• The value of inventing options for mutual gain. Non committal brainstorming.
• Is there objective criteria / process that can be set?
• Honesty, predictability and being explicit as a strategic tool
• If you aren’t willing to walk, it’s not a negotiation
Principles of Successful Negotiations

6. Process - Before
•Research the other side
•Understand your BATNA: “Best Alternative To A Negotiated
Agreement” = your walkaway position
•Assess true issues in negotiations
•Determine important issues for YOU
•Pre-think: solutions to dead-ends, exchanges,
•Prepare end-goal statement

7. Process - In The Negotiations Room
•Build Rapport: Emotional, Posture, Tone & Tempo Mirroring,
Reciprocity, Commonality
•Explore: Open questions, Get useful information (Determine
important issues for THEM), Honesty test via questions you know the
answers to
•Key goal: understand their BATNA.
•Identify the needs of other party (vis-à-vis you): Essential, Important,
Desirable
•Compare the two to understand: Shared, Independent, Conflicting

8. Mechanics – In The Negotiations Room
•Always be Reluctant, Never Enthusiastic. Don’t give “free” discounts.
•Flinch, Show Disbelief
•Always Ask For More Than You Expect
•Never Accept The First Offer
•Be Predictable, Explicit, Never lie
•Before leaving: Clarify and make sure you agree

9. Skills
• The Mental Game: Don’t fall victim to time or other pressures
• Active listening (but not agreeing!)
• Purposeful communication. Email vs. Talking, Needless communications.
• Disengaging from personal & people. Fix Perception, Emotion,
Communication issues
• Short term: Understanding the other. Long term: Know yourself.
• Listening for interests
• Putting yourself in their shoes
• Producing commitment to a mutually satisfactory outcome

10. Techniques
•Getting information: Silence, Trial Balloons, Ask Questions, Give info
to get info.
•Anchoring
•Cognitive bias: Commitment escalation, Consistency
•Core human concerns: Autonomy, Appreciation, Affiliation, Role,
Status, Identity.

11. Tactics
Tactic Counter Tactic
Test for validity
Make friends
Plant deficits
Flinching
Trade off methodology
Answer concessions with concessions
Higher (vague) authority
Good cop / bad cop
The assumptive close
Funny money
Answer a low ball with a low ball
Counter Tactic
Test for validity Back
Separate Business and Friendship
Plant deficits back
Maintain composure and probe
Be careful with what you are trading
Make concessions inconsequential
Call it out, ask to meet decision maker
Call it out, say you know what they are doing
Continue negotiating if necessary
Negotiate dollars, not percents
Stick to your lowball until reasonable

12. Exercise
● Split to groups of 4: 2 x 2
● Each sub-group of 2 will get a guide for negotiations
● You have 5 minutes to read, and discuss within the sub-group
● Then you have 15 minutes to negotiate with the other 2
I will call at random to hear about your experience.

13. Gender Differences – Men Vs. Women
•Behaviors that increase economic negotiation outcomes are more
congruent with men as with women
•Gender related triggers should be anticipated (ambiguity, competitive
negotiations)
•Women negotiate (and initiate negotiation) less
•Men set higher goals
•Women perform better when negotiating on behalf of others than
when negotiating for themselves

14. Advanced Tactics
•Importance of Time
•Sunk cost
•Escalation
•Not negotiate issue-by-issue

15. What’s next?
•Be aware. Learn yourself.
•Keep a log to understand your drivers.
•Negotiate, negotiate, negotiate.