PRE-NEGOTIATION TIPS – MEMORY JOGGERS 2

Once we analyse and decide where each party stands before a negotiation starts we should document each party’s goals, attitudes, limitations and the known or likely opening stance of each side… i.e. the current state of play.

This done, we need to develop a negotiation strategy by: -

Listing possible solutions for the ‘other side’, their repercussions for both parties and define possible areas of agreement plus the underlying mutual needs or common ground.

Preparing a list of fair operating procedures defining ‘how we deal with each other’ i.e. values, ethics, acceptable expertise and from whom, legal practices, standards etc.

Determining the impact of limitations, what ‘THEY’ may realistically be able to accept, deadlines, the power of the negotiating team to make decisions and any political situation. Try define their perspective on the negotiation i.e. what is their real problem and how do they view our position and attitude. List alternative actions that may provide some basis for continuation or a partial agreement or an, ‘if all else fails option’, (sometimes referred to as a lifeboat).

Planning ways to neutralise negatives or bias to the situation or negotiating parties such as, this customer is greedy, unionists are troublemakers or management is anti-worker that will hinder the process or willingness to listen.

Lastly we should practice, perhaps by role-playing both sides to find weaknesses in our arguments or approach.

TELLING RATHER THAN SELLING… CAN END UP IN YELLING!

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PRE-NEGOTIATION TIPS – MEMORY JOGGERS

We all negotiate, all of the time, so best understand how it all works! A good start is to realise that negotiations move in stages and then know what to do at each stage.

Before we negotiate we should as a minimum decide what are: -

Both parties desired outcomes or ‘real’ goals. I say ‘real’ goals as often ‘demands’ can be used to hide true desires. Obviously understanding both parties’ goals is essential if win-win’s are sought. As part of our analysis we should also document the minimum outcome we believe each party is likely to accept and these ‘minimums’ consequences.

Define and write down our opening stance and we should gather all we can on theirs. If we can’t fully understand where both parties are commencing it will be difficult to get started and much time (and goodwill) can be lost.

Our and their limitations on what can be offered or given away. It is no good arguing over the sun if they (or you) only have only the moon the offer. Also time limits can be critical, if you have six weeks to invest and they have a number of months, pressure can be applied or resisted. Clinton pushed harder for a mid east peace settlement the closer he got to the end of his term, the Israelis seem to have limitless time and Arafat, well he is getting on. So best you know your and their deadlines.

Prepare for negative attitudes. We enter negotiations with preconceived ideas about the other ‘side’, as do they, about us. We need to analyse what each parties’ negative attitudes may be, remove ours and prepare for theirs.

ARE WE BEGINNING THE WAY WE MEAN TO CONTINUE… OR IS IT USUALLY… NAH JUST DIVE IN AND HOPE FOR THE BEST…

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POLARITIES OR DO WE NEED TWO HEADS - PART TWO

To continue with the two headed dilemma…!

MANAGEMENT is about: ORDER & CONSISTANCY… protecting the existing structure, systems, traditions and ‘the status quo’ V.’s LEADERSHIP, which is about: CREATING CHANGE… vision, direction, values and destruction of ‘the way we’ve always done it’

MANAGEMENT IS ABOUT: COMPETING… seeking the winning edge, overcoming those in the way & up the ‘ladder’ V.’s LEADERSHIP, WHICH IS ABOUT: COLLABORATING… showing love and respect for individuals and seeking win-win solutions

MANAGEMENT is about: DOING THINGS RIGHT… organising, setting the rules and seeing rules are followed, the inspector V.’s LEADERSHIP, which is about: DOING THE RIGHT THINGS by… developing trust and taking risks to ensure we meet our full potential

MANAGEMENT is about: INPUTS… amount, type & quality of resources, effective plant, staff & raw materials V.’s LEADERSHIP, which is about: OUTPUTS… the level and volume of satisfied customers we can create, the market

MANAGEMENT is about: MANAGING THINGS… operations focused, technical expertise & people as production inputs V.’s LEADERSHIP, which is about: LEADING PEOPLE… our charisma, socialised power, human relations, communication skills, inspiration & motivation

With the conflicting nature of these requirements how do we prepare managers/leaders to deal with these apparently opposing roles? If we send our managers off for leadership training we best be prepared to adjust our culture, abandon our hierarchy and flatten our organisational structure… or disaster approaches.

CONTROL FREAKS… PREPARE TO FAIL!

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WANT SUCCESS… BEST GRAB THE POWER…

WHAT IS IT?

Power can be defined as the ability of a person or group to influence the thoughts or behaviour of another person or group, so that he/she or they do something they would not otherwise do, assuming that the recipients of the power have some personal discretion over what they do’.

WHAT’S CRITICAL – MAINTAINING DEPENDENCY

The receiver’s relationship or dependency on the holder of power is only effective when the holder posses something that the receiver wants. The more dependant the receiver is the greater the power of the holder. Critical to dependency are; the importance of what is controlled, the scarcity of the resource and the potential for substitutes or alternatives. (i.e. jobs, chance of promotion, salary increase budget, staff resources, purchasing budgets and funds for R & D).

POINT - POWER CAN BE PERCEIVED AS PERSONALISED OR SOCIALISED.

Personalised power infers that only the POWER USER will benefit and if used a negative impact on the receivers will occur. Socialised use of power is when the receiver perceives both the power user AND THE RECEIVER will benefit and is more likely to gain acceptance and a positive outcome. IMPORTANT POINT - the recipient of power will always be the one who decides if the power user is using socialised or personalised power.

A POWERFUL LOT TO THINK ABOUT!

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FIVE TYPES OF POWER TO BE IN CONTROL AT WORK

POWER TYPE 1 - Legitimate, Authority, Position, Access to Formal Communication (THE BOSS IN ALL OF HIS OR HER VARIOUS POSITIONS OR FORMS)

POWER TYPE 2 - Expert, Knowledge, Technical Superiority, Communication Skill, Task or Job (THE M.I.S. MANAGER & THE HEAD OF ENGINEERING)

POWER TYPE 3 - Coercive, Fear, Take Away, Negative Control of Resources or Information (PURCHASING STAFF, FINANCIAL CONTROL & THE HR DIRECTOR)

POWER TYPE 4 - Referent, Personal Attractiveness, Relationship, Groups, Charisma, Sex (THE BOSS’S SECRETARY, THE TOP SALESPERSON, THE LOVELY YOUNG THING FROM PR AND THE OFFICE STUD)

POWER TYPE 5 - Reward, Positive Control of Resources or Information, Money, Benefits (THE BOSS, THE SUPERVISOR, PROJECT MANAGERS & MOST OF THE ABOVE)

To be truly ‘powerful’ all five groups should be used, reliance on one group will ultimately lead to loss of power i.e. authority can be withdrawn, knowledge becomes outdated, fear creates subversion, we all get old (and ugly) and our ability to reward can be hampered by the vagaries of the business climate and company edicts.

A LOT TO THINK ABOUT (AND DO) TO BE TRULY POWERFUL

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