FICCI FLO Jaipur organised a workshop on Negotiation Skills by Shankar Venkatagiri
In the leadership of Chairperson Minal Jain, FICCI FLO Jaipur had organized a workshop on Negotiation Skills by Shankar Venkatagiri, Associate Professor, Indian Institute of Management, Bangalore. Shankar Venkatagiri is a faculty member in the Decision Sciences & Information Systems area at IIM Bangalore. He has been with IIM Bangalore since 2002. Shankar began his professional career at Sapient Corporation in 1996, where he consulted with energy and healthcare clients. He developed bandwidth-efficient Internet applications at Curl Corporation, an MIT start-up.
Following is a brief synopsis of the workshop.
Command & Control has long disappeared from the organization. This paves the way for influencing and negotiation.
We highlight a systematic approach & identify some nuances. Subtle aspects of inter-personal interactions can make a significant difference to the outcome. The concept is important – Not Content. It’s the principals that matter. The Real world is nowhere close to being principled. The other side wants exactly what you want! How to win at the negotiation table and still make the other side believe they won!! Many such problems and more were tackled during the workshop!
NUANCES OF NEGOTIATIONS
NUANCE 0: DECIDE TO NEGOTIATE?
*NO best practices work if you don’t get the negotiation going.
*Work on how to get the other party to the table.
*Salary differential at an early stage plays itself throughout one’s working life. Women simply aren’t asking at the same rate as men. Hence, the gender disparity in salaries exists and increase gradually.
NUANCE 1: STRATEGIES
Types of negotiators –
*Avoiding – did nothing simply stayed put.
*Compromise – Decide to split gains with the one opposite you.
*Accommodation – You negotiate but not be the person who gains.
*Competitive – might promise something and back out later. Might be unethical.
*Collaborative – A win-win situation for both.
Nobody is fully any of the above: There is nothing “Wrong” or “Weak” in your orientation. It could be situation specific.
NUANCE 2: INVESTIGATE
Principle 1: Quit the focus on the “what” and figure out the “whys”
Principle2: Understand and mitigate the other side’s constraints
Principle 3: Propose Multiple Options
Principle 4: Look at demands as opportunities
Principle5: Seek Common Ground with Adversaries
Principle 6: Continue Investigating even if you have lost the deal.
NUANCE 3: FOLD UP
Competitive Arousal is present when:
1. Rivalry is intense
2. Time deadlines can put pressure
3. Presence of an audience can change situations.
NUANCE 4: STEP AWAY
Strategies at the Table are common knowledge.
Active listening, identify common and conflicting interests, separate people from the issues, invent creative options, “win-win”
NUANCE 5: ANCHORING
Which side should make the first Offer? If you have enough information, you can open. If you do not, then let the other party open. The benefit of the opening is that you establish the “anchor”.
NUANCE 6: GOALS
Setting a high Target is a good thing.
NUANCE 7: BALANCE
Start from identifying interests and then move up. Many Negotiations get this wrong.
You can yield INFLUENCE in a stronger way if you:
*Pay Attention- active listening, Summarize.
*Ask both open & closed questions.
*Genuinely appreciate others
*Build rapport by signposting and pacing.
*Make eye contact with others.
*Are in Congruence with the message you deliver
*Have done your homework are clear & assertive.
*Relate to the person rather than the content
*U need to have a plan B always.
*Can grasp outcomes at a higher level and portray it.
*Watch carefully for your language.
The way you present the offer – positive or negative – is important. Highlight the Negative.
First, show the higher price item & then show the lower price item.
When it is happy news break it in parts. When it is bad news, say it at one go. Avoid making concessions in one shot.
What is a wise agreement??
*Meets the interest of each side.
*Resolves conflicting interests fairly
*It should produce a wise agreement, be efficient and not spoil relationships.
STYLES OF NEGOTIATIONS
Principle 1: Separate people from the problem
Principle 2: Focus on interests, not positions
Principle 3: Invent options for mutual gains
Principle 4: Insist on using objective criteria
It is important to know your BATNA (Best Alternative to Negotiated Agreement) and ZOPA (Zone of Possible Agreement). Better the BATNA, better will be your chance to win. Its also good to know the other sides BATNA.