NPT Lecture 6 Negotiation III Autumn 2024 PDF

Negotiation and Presentation Techniques Lecture 6 – Negotiation III. The Three-level model/Pyramid model Previously on the NPT… Negotiation III. The Three-level Model/Pyramid Model Opening Exploring Closing Mid-term Test1: NEXT WEEK! 3 The Three...

Negotiation and Presentation Techniques Lecture 6 – Negotiation III. The Three-level model/Pyramid model Previously on the NPT… Negotiation III. The Three-level Model/Pyramid Model Opening Exploring Closing Mid-term Test1: NEXT WEEK! 3 The Three-level/Pyramid model A simple and handy model for planning negotiations. Opening: the parties decide on starting a negotiation. Presenting the opening positions. Exploring: starting the negotiation. The parties get to know each others’ positions and the field of negotiation. Positions can be changed flexible. Closing: make an agreement or leave the situation. 4  Without taking the positions, the negotiation will not happen. Without getting to know the other parties’ position, we will not Pyramid-model be able to change ours in the hope of an agreement. The tip of the pyramid is the negotiated agreement, which has CLOSING to be lean on the other two levels The decision to Negotiated below. enter the agreement Negotiation is negotiation is needed for the necessary for EXPLORING change of the the rest of the originally distant Flexible bargaining positions – in steps. order to reach an OPENING agreement. Define and communicate the positions 5 Opening – Opening position 1 Do not jump into negotiation! If you start negotiation immediately, you do not skip the level of opening, but the message will be about and driven by hurry and tightness. Make your position clear, direct and concise! Lack of these indicates uncertainty. Be your position strong and defendable. Support them by market data and facts. Be your position flexible! It is a naive position to imagine negotiation as a continuous defence of the opening position. We negotiate in order to discover what the other can offer us and share what we can offer to the other. The aim is to fil the gap between the two opening positions. 6 Opening – Opening position 2. When is it worth to present our position firstly? If you have a stable strategy. If the other is unprepared. In this case she can be easily influenced, especially if our position is defendable and supportable. What is it worth to do if we are not the one to open? Clarify the other party's opening position, because it is possible that she just suggests things but then backs off. 7 Exploring 1 – Asking Questions The level of exploring is about creativity and thinking together: parties try to figure out the other’s wants, and what they can give, offer to each other. The level of exploring is characterised by constant questioning, listening to the each other and brainstorming. 8 Exploring 2– Wantsand Needs Revealing positions (wants) and the needs behind them: can secure maneuvering during the negotiation and makes a successful negotiation possible. is important not just for the negotiation partner but in our case as well. can help us to avoid negotiations about defending our opening position exclusively. 9 Exploring 3 – Alternatives Exploring alternative options: The more we reveal the other's needs, the more probability we can offer her what she may needs and wants. E.g.: not only price and the reduction of price can be the subject of the negotiation, but also storage, delivery and warranty. Thus, it is worth to ask as much questions as possible and listen carefully the other party. We must think through where we may help to each other. 10 Closing 1 The first two level of negotiation happens in order to make happen the closing level. It is necessary to collect every said and done points. It is important to write them down in a contract. You have to track down the fulfilments and execution! It is worth to record an emergency scenario/plan B in the contract. There are many things that you cannot prepare for, but what you can, it is worth to prepare in advance. 11 Closing 2 Due to the negotiation, something will definitely change, since this is the reason why we started the whole situation: we were not satisfied with our situation and position before/without the negotiation, and neither the other party. The situation before/without negotiation will not remain unchanged, if there is no agreement, since we are after an unsuccessful negotiation, we have gained experiences, even if they all were unpleasant. We got information about our partner, her negotiation style, interests etc. Maybe, we offended her or on the contrary, made friendship with her – These are not independent from the negotiation situation. 12 Next class: Mid-term Test1! You will write Mid-term Test1 next Thursday, on 17 October in Room 205, Floor 2, Building E. Attention: it is not the regular lecture room of the class!! Due to the large number of students, you will take the Mid-term in two rounds, on the following dates: Round 1: A-K: 10:15-10:45 Round 2: L-Zs: 11:00-11:30 Please arrive exactly according to whether the first letter of your surname belongs to the first or second round, thank you! Next class: Mid-term Test1! Test1 will take 30 minutes and will consist of multiple choice and true/false questions. The results of Test1 will be posted on Moodle. By Test1, you can reach a maximum 50 points. To complete the course, you need to achieve at least 50%=25 points by Test1. The tests can be rewritten - or written if you will not do it next week - on the week of repeats. There are no penalties for taking re-takes, and only the better grade counts. Thank you for your kind attention! Krisztina Ecsediné Szabó, PhD: [email protected]