Learn How To Negotiate … Like a Pro! Robert C. Huber, CMC, CPCM President & CEO Campus Card Business Consultant Robert Huber Associates www.AllCampusCard.com [email protected] (480) 551-0520 National Association of Campus Card Users 20th Annual NACCU Conference April 15, 2014 Chicago © Robert Huber Associates Learn How To Negotiate … Like A Pro! Synopsis Everyone negotiates something on a daily basis, including with yourself! Negotiation is a lifelong skill that everyone needs to understand and improve. In this session you will learn the fundamentals of negotiations, including why traditional “hard” and “soft” tactics are unrealistic long-term, how productive negotiations can achieve a Win-Win outcome, as well as find out what a proven six-step Strategic Negotiations Checklist is and how it can improve your negotiation skills. You will also learn about common tools, tips and traps of negotiation. negotiation. Specific negotiations with vendors will also be discussed in this special conference educational session. The session will be conducted by a Campus Card Business Consultant and professional negotiator who has negotiated over $200 million of products and services during his extensive business career. © Robert Huber Associates 2 Learn How To Negotiate … Like A Pro! Speaker Robert C. Huber, CMC, CPCM is a 30-year campus card industry pioneer, “Vendor Independent” Campus Card Business Consultant and President of Robert Huber Associates. Mr. Huber developed the “All-Campus Card” concept in 1985. He has implemented over 100 campus card systems, opened and managed 50 Burger King® restaurants and started over 200 businesses in educational, healthcare and corporate environments. Bob has negotiated over $200 million of products and services during his business career. His firm assists clients with all aspects of campus card programs – including site assessments, new system strategic planning, RFPs and negotiates vendor agreements. Bob is a board certified business consultant, entrepreneur, card technology expert, author, professional negotiator, Hall of Fame recipient, college instructor and conference speaker. © Robert Huber Associates 3 Learn How To Negotiate … Like A Pro! Agenda 1. What is Negotiations? 2. Traditional Negotiations 3. Principled Negotiations 4. Top Ten Negotiations Rules 5. Top Ten Negotiations Tips 6. Strategic Negotiations Checklist 7. Vendor Negotiations Tips 8. Audience Questions © Robert Huber Associates 4 Learn How To Negotiate … Like A Pro! Today’s Goals … ■ Negotiations Primer ■ New Tools ■ Paradigm Shifts ■ T-H-I-N-K © Robert Huber Associates 5 6 Learn How To Negotiate … Like A Pro! © Robert Huber Associates 7 Learn How To Negotiate … Like A Pro! © Robert Huber Associates 8 9 10 11 12 Learn How To Negotiate … Like A Pro! Axiom of Life People Reach Most Decisions With Others Through Negotiations © Robert Huber Associates 13 Learn How To Negotiate … Like A Pro! Essence of Negotiations Everyone Negotiates Something On A Daily Basis! Basis © Robert Huber Associates 14 Learn How To Negotiate … Like A Pro! NEGOTIATIONS Is Simply⁄ ??? © Robert Huber Associates 15 Learn How To Negotiate … Like A Pro! Classic Negotiations Case Studies ■ Paris Peace Talks ■ Major League Baseball ■ UAW vs. Auto Companies ■ “W” vs. US Congress ■ Reggie’s Candy Bar ■ O’Hare Peace Talks © Robert Huber Associates 16 Learn How To Negotiate … Like A Pro! Negotiations Films ■ “Dog Day Afternoon” ■ “The Taking of Pelham One Two Three” ■ “A Few Good Men” © Robert Huber Associates 17 Learn How To Negotiate … Like A Pro! What is NEGOTIATIONS? © Robert Huber Associates 18 Learn How To Negotiate … Like A Pro! What is NEGOTIATIONS? A Process … during which several parties attempt to reach an agreement. © Robert Huber Associates 19 Learn How To Negotiate … Like A Pro! Definitions ■ Negotiator – A party directly involved in a negotiations process. ■ Lead Negotiator – A designated person who is responsible for serving as a spokesperson for a party involved in negotiations. ■ Strategist – A person who provides ideas to achieve a goal or objective. © Robert Huber Associates 20 Learn How To Negotiate … Like A Pro! Definitions ■ Mediator – A designated person or party (i.e., perceived as impartial) who is engaged to assist the parties to reach a hospitable agreement. ■ Arbitrator – A designated person or party (i.e., perceived as impartial) who is engaged to resolve a dispute between two or more parties – by whose decision the parties agree in advance to be bound. © Robert Huber Associates 21 Learn How To Negotiate … Like A Pro! Top Personal Negotiations Events ■ Buying A Car ■ Asking For A Raise ■ Purchasing A Home ■ Planning A Wedding ■ Divorce Settlement ■ Childhood Duties ■ Elderly Medical Care ■ Funeral Services © Robert Huber Associates 22 Learn How To Negotiate … Like A Pro! NEGOTIATIONS Is About⁄ RELATIONSHIPS © Robert Huber Associates 23 Learn How To Negotiate … Like A Pro! NEGOTIATIONS Is An Evolving⁄ PROCESS © Robert Huber Associates 24 Learn How To Negotiate … Like A Pro! All Strategic NEGOTIATIONS Require⁄ PREPARATION © Robert Huber Associates 25 Learn How To Negotiate … Like A Pro! Negotiations Goals WIN WIN WIN WIN © Robert Huber Associates 26 Learn How To Negotiate … Like A Pro! Negotiations Venues ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Telephone e-Mail Internet Letter Chat Rooms In-Person Facsimile Newspaper Conferences Bars © Robert Huber Associates 27 Learn How To Negotiate … Like A Pro! Vendor Solicitation Documents ■ R.F.P. Request For Proposal ■ R.F.B. Request For Bid ■ R.F.Q. Request For Quotation ■ R.F.I. Request For Information ■ I.T.B. Invitation To Bid ■ I.T.N. Invitation To Negotiate ■ Bid Specs Vendor Bid Specifications © Robert Huber Associates 28 Learn How To Negotiate … Like A Pro! Strategic Planning 101 Vision ↓ Mission ↓ Objectives ↓ Assessment ↓ Requirements ↓ Strategies ↓ Tactics ↓ Technology ↓ Vendor © Robert Huber Associates 29 Learn How To Negotiate … Like A Pro! NEGOTIATIONS vs. Classic Definition Of Management © Robert Huber Associates 30 Learn How To Negotiate … Like A Pro! NEGOTIATIONS Types „Traditional‰ vs. „Principled‰ © Robert Huber Associates 31 Learn How To Negotiate … Like A Pro! NEGOTIATIONS Types „Traditional‰ or „Positional‰ vs. „Principled‰ © Robert Huber Associates 32 Learn How To Negotiate … Like A Pro! “Traditional” Negotiations Traits ■ Haggling ■ Strength ■ Tactics ■ Guilt ■ Posturing ■ Exhaustion ■ Tricks © Robert Huber Associates 33 Learn How To Negotiate … Like A Pro! “Traditional” Negotiations Styles HARD vs. SOFT © Robert Huber Associates 34 Learn How To Negotiate … Like A Pro! “Traditional” Negotiations HARD Style ■ Winning ■ Contest of Wills ■ The Enemy ■ Damaged Relationships ■ Victory ■ Win At Any Cost © Robert Huber Associates 35 Learn How To Negotiate … Like A Pro! “Traditional” Negotiations SOFT Style ■ Compromise ■ Anxiety ■ Concessions ■ Alienation ■ Exploitation of Others ■ Bad Feelings © Robert Huber Associates 36 Learn How To Negotiate … Like A Pro! “Traditional” Negotiations Summary Getting What You Want vs. Giving Up Something © Robert Huber Associates 37 Learn How To Negotiate … Like A Pro! „You Have The Power⁄‰ © Robert Huber Associates 38 Learn How To Negotiate … Like A Pro! Paradigm Shift – Negotiating Agreement Without Giving In Getting To YES Harvard Negotiations Project © Robert Huber Associates 39 Learn How To Negotiate … Like A Pro! “Principled” Negotiations A process … during which all parties exchange common interests, diverse viewpoints, creative ideas, and positive solutions … in order to develop an equitable agreement for the benefit of all the parties. © Robert Huber Associates 40 Learn How To Negotiate … Like A Pro! “Traditional” vs. “Principled” Negotiations Locker Room Tactics vs. Brain Storming Sessions © Robert Huber Associates 41 Learn How To Negotiate … Like A Pro! “Principled” Negotiations GOALS ■ Promote Understanding ■ Set Positive Tone ■ Utilize Fair Standards ■ Develop Creative Options ■ Promote Merit Evaluation ■ Build Productive Relationships ■ Promote Shared Accomplishments © Robert Huber Associates 42 Learn How To Negotiate … Like A Pro! “Principled” Negotiations FOCUS ■ PEOPLE ■ INTERESTS ■ OPTIONS ■ OBJECTIVITY © Robert Huber Associates 43 Learn How To Negotiate … Like A Pro! “Principled” Negotiations PEOPLE The Problem vs. The Parties © Robert Huber Associates 44 Learn How To Negotiate … Like A Pro! “Principled” Negotiations INTERESTS Single Entity vs. Common Interests © Robert Huber Associates 45 Learn How To Negotiate … Like A Pro! “Principled” Negotiations INTERESTS Acknowledging Common Interests Includes The Recognition of “Sacred Cows” © Robert Huber Associates 46 Learn How To Negotiate … Like A Pro! “Principled” Negotiations “Sacred Cows” Educational Institutions: ??? Vendors: ??? © Robert Huber Associates 47 Learn How To Negotiate … Like A Pro! “Principled” Negotiations “Sacred Cows” Educational Institutions: Public Reputation Vendors: Profit © Robert Huber Associates 48 Learn How To Negotiate … Like A Pro! “Principled” Negotiations OPTIONS Decisions vs. Possibilities © Robert Huber Associates 49 Learn How To Negotiate … Like A Pro! “Principled” Negotiations OPTIONS Taking Sides vs. Forming Teams © Robert Huber Associates 50 Learn How To Negotiate … Like A Pro! “Principled” Negotiations OPTIONS Fight vs. Compromise © Robert Huber Associates 51 Learn How To Negotiate … Like A Pro! “Principled” Negotiations Team Examples ■ Financial & Legal Team ■ Technical Team ■ Operations Team ■ Implementation Team © Robert Huber Associates 52 Learn How To Negotiate … Like A Pro! “Principled” Negotiations OBJECTIVITY Concessions vs. Equitable Results © Robert Huber Associates 53 Learn How To Negotiate … Like A Pro! “Principled” Negotiations OBJECTIVITY Aggressive vs. Assertive © Robert Huber Associates 54 Learn How To Negotiate … Like A Pro! “Principled” Negotiations OBJECTIVITY “Industry Standards”… are not necessarily desired or fair. © Robert Huber Associates 55 Learn How To Negotiate … Like A Pro! “Principled” Negotiations Statements ■ “Since our objective is fairness for everyone...” ■ “I am confused…” ■ “Let me see if I understand...” ■ “Can I ask a few questions?” ■ “Would a fair solution...?” ■ “Can we agree on this point..?” ■ “What do your suggest?” ■ “I feel…” © Robert Huber Associates 56 Learn How To Negotiate … Like A Pro! “Principled” Negotiations Best Viewed As An Exercise In ☼ Shared Problem Solving © Robert Huber Associates 57 Learn How To Negotiate … Like A Pro! Principled Negotiations Is Not Only An Effective Business Tool… ...But Can Become A Personal Philosophy of Life © Robert Huber Associates 58 Learn How To Negotiate … Like A Pro! Top Ten Negotiations Rules © Robert Huber Associates 59 Learn How To Negotiate … Like A Pro! Strategic Negotiations Rules #1 – A bad relationship cannot be resolved by a good contract. #2 – Successful negotiations require mutual commitment to an equitable agreement. #3 – All contracts must first be negotiated. #4 – A legitimate negotiations process only begins when the parties are willing to commit to a possible agreement. © Robert Huber Associates 60 Learn How To Negotiate … Like A Pro! Strategic Negotiations Rules #5 – Your reputation is your most important negotiations tool. #6 – Serve FOOD! #7 – Room layout has a direct effect on meeting productivity. #8 – Adoption of the “X=Y” factor increases negotiations success. #9 – At some point both parties must trust each other. #10 –You always have other choices. © Robert Huber Associates 61 Learn How To Negotiate … Like A Pro! Only Do Business With Someone You Trust 11th COMMANDMENT © Robert Huber Associates 62 Learn How To Negotiate … Like A Pro! Top Ten Negotiations Tips © Robert Huber Associates 63 Learn How To Negotiate … Like A Pro! Strategic Negotiations Tips #1 – “Frame” all negotiations meetings. #2 – Determine in advance who should and who should not be included in negotiations meetings. #3 – Use your “Secret” Negotiations Tools. #4 – Ask “Open-Ended” vs. “Leading” questions. #5 – Keep all options OPEN for all parties. © Robert Huber Associates 64 Learn How To Negotiate … Like A Pro! Strategic Negotiations Tips #6 – Be alert to “Quicksand” and “Elephant” issues & situations. #7 – Body language speaks volumes. #8 – Cultures can be worlds apart. #9 – Men are (still) from Mars and Women are (still) from Venus. #10 – Surgery should be delegated to trained Professionals. © Robert Huber Associates 65 Learn How To Negotiate … Like A Pro! Negotiating Strategies Deal … or … No Deal? © Robert Huber Associates 66 Learn How To Negotiate … Like A Pro! Negotiating Strategies Always Be Prepared To WALK AWAY From An Inequitable Agreement © Robert Huber Associates 67 Learn How To Negotiate … Like A Pro! Negotiating Strategies B.A.T.N.A. © Robert Huber Associates 68 Learn How To Negotiate … Like A Pro! Negotiating Strategies Best Alternative To a Negotiated Agreement © Robert Huber Associates 69 Learn How To Negotiate … Like A Pro! Negotiating Strategies T.I.N.S.T.A.A.F.L. © Robert Huber Associates 70 Learn How To Negotiate … Like A Pro! Negotiations Formula For Success 1. Visualize 2. Prepare 3. Strategize 4. Empathize 5. Commit 6. Follow-up © Robert Huber Associates 71 Learn How To Negotiate … Like A Pro! NEGOTIATIONS Is About⁄ RELATIONSHIPS © Robert Huber Associates 72 Learn How To Negotiate … Like A Pro! NEGOTIATIONS Is An Evolving⁄ PROCESS © Robert Huber Associates 73 Learn How To Negotiate … Like A Pro! All Strategic NEGOTIATIONS Require⁄ PREPARATION © Robert Huber Associates 74 Learn How To Negotiate … Like A Pro! Negotiating Strategies All Organizations Reflect “The Personality” Of Its Leadership Robert C. Huber, CMC, CPCM Robert Huber Associates © Robert Huber Associates 75 Learn How To Negotiate … Like A Pro! Negotiating Strategies „Let Us Never Negotiate Out Of Fear, But Let Us Never Fear To Negotiate.‰ President John F. Kennedy The United States of America © Robert Huber Associates 76 Learn How To Negotiate … Like A Pro! NEGOTIATIONS Is Simply⁄ ??? © Robert Huber Associates 77 Learn How To Negotiate … Like A Pro! NEGOTIATIONS Is Simply⁄ Kids Playing In Sandboxes © Robert Huber Associates 78 Learn How To Negotiate … Like A Pro! Thank you! © Robert Huber Associates 79 Learn How To Negotiate … Like A Pro! BONUS SLIDES © Robert Huber Associates 80 Learn How To Negotiate … Like A Pro! Negotiating Strategies Don’t Confuse… SYMPTOMS With CAUSES © Robert Huber Associates 81 Learn How To Negotiate … Like A Pro! “Leading” Questions ■ “We all know…” ■ “Don’t you think…” ■ “How do you like...” ■ “Isn’t it true…” © Robert Huber Associates 82 Learn How To Negotiate … Like A Pro! “Open-Ended” Questions ■ “Do you like…” ■ “What do you think…” ■ “Tell me more about...” ■ “How would you feel about…” © Robert Huber Associates 83 Learn How To Negotiate … Like A Pro! “Quicksand” Issues ■ Financial ■ Politics ■ Related Employees ■ Financial Relationships ■ Impending Reorganization © Robert Huber Associates 84 Learn How To Negotiate … Like A Pro! “20-Ton Elephant” Issues ■ Funding ■ Politics ■ Administrative Attitudes ■ Hidden Agendas ■ Past Relationships © Robert Huber Associates 85 Learn How To Negotiate … Like A Pro! “Butterfly” Issues ■ Respect ■ Courtesy ■ Professionalism ■ Compatibility ■ Colors © Robert Huber Associates 86 Learn How To Negotiate … Like A Pro! “Secret” Negotiation Tools ■ Breaks ■ Sidebars ■ Lifelines © Robert Huber Associates 87 Learn How To Negotiate … Like A Pro! “Active” Listening ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Eyes Ears Tone Expressions Inflection Emotion Pauses Body Language Telephone Calls Note Taking © Robert Huber Associates 88 Learn How To Negotiate … Like A Pro! Cultural Issues Typical ■ Regional ■ National ■ Public vs. Private ■ Generational © Robert Huber Associates 89 Learn How To Negotiate … Like A Pro! Cultural Issues International ■ Eye Contact ■ Handshakes ■ Crossing Legs ■ Touching ■ Shaking Heads © Robert Huber Associates 90 Learn How To Negotiate … Like A Pro! Negotiating Styles WOMEN ■ Feelings ■ Intuition ■ Patience ■ Listen Carefully ■ Acknowledgement ■ Details © Robert Huber Associates 91 Learn How To Negotiate … Like A Pro! Negotiating Styles MEN ■ Logic ■ Rationale ■ Talking ■ Focus Carefully ■ Agreement ■ Generalizations © Robert Huber Associates 92 Learn How To Negotiate … Like A Pro! Negotiating Strategies WOMEN ■ Avoid Apologies ■ Be Brief ■ Don’t Hint ■ Avoid Emotional Displays © Robert Huber Associates 93 Learn How To Negotiate … Like A Pro! Negotiating Strategies MEN ■ Share Before Decision ■ Be Humanistic ■ Avoid Condescension ■ Avoid Emotional Displays © Robert Huber Associates 94 Learn How To Negotiate … Like A Pro! Negotiating Strategies Just Because You CAN Doesn’t Mean YOU SHOULD © Robert Huber Associates 95 Learn How To Negotiate … Like A Pro! Negotiating Strategies Vendor Negotiations Commence BEFORE An RFP Is Written © Robert Huber Associates 96 Learn How To Negotiate … Like A Pro! Negotiating Strategies Don’t “Fall In Love” With Your Vendor Before The Engagement Party © Robert Huber Associates 97 Learn How To Negotiate … Like A Pro! R.F.P. Recommendations ■ Single Author ■ Use Industry Terms ■ Avoid Vendor Specific Terms ■ Use a Spell Checker ■ Avoid Repetitive Questions ■ Avoid “Fishbowl” Process ■ Avoid Vendor Boilerplates ■ Plagiarism Is Problematic ■ Customize To Organizational Goals ■ Avoid Pre-Bid Conferences © Robert Huber Associates 98 Learn How To Negotiate … Like A Pro! Negotiating Strategies Don’t Automatically Press “REPLY TO ALL” Especially During Negotiations… © Robert Huber Associates 99 Learn How To Negotiate … Like A Pro! Thank you! © Robert Huber Associates 100
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