The Art of Negotiation The Art of Negotiation Objectives: • To list examples that require successful negotiating skills in your personal and professional life • To explain the elements of successful negotiation • To describe the barriers to successful negotiation The Art of Negotiation Outline: Elements of Successful Negotiation Preparation Communication Skills Emotional Control Final Negotiations - Closing the Deal Final Tips Negotiations The Art of Negotiation Exercise #1: List 2 examples where negotiation skills might be required in your professional life. 1. ________________________________ __________________________________ 2. ________________________________ __________________________________ Elements of Successful Negotiation Preparation • Setting goals and limits Communication Skills: • Listening skills • Clarity • Understanding body language Emotional Control Final Negotiations – ‘Closing the Deal’ Preparation Preparation develops a position of strength • Understand the issues and potential hidden agendas • Know the people/personalities you’ll be negotiating with Preparation establishes a foundation for success and builds confidence Donaldson, M. Negotiations for Dummies. New York, NY: Hungry Minds, Inc, 1996. Kramer, H. Game, Set, Match: Winning the Negotiation Game, A Step-by-Step to Getting What You Want From Any Negotiation. New York, NY: ALM Publishing, 2001. Preparation: Goals Set goals with a specific purpose of negotiation in mind Example – Purpose: Fully staff the department by January of next year Example - Goal: Increase wages/benefits to meet or exceed local standards Donaldson, M. Negotiations for Dummies. New York, NY: Hungry Minds, Inc., 1996. Preparation: Limits Define minimum and maximum limits • What you’re willing to give up • What will cause you to walk away Know that you have other choices • Know what those choices are • Know your ‘or else’ position Know how to enforce your limits Preparation Caution: NEVER begin a negotiation until you are fully prepared! Donaldson, M. Negotiations for Dummies. New York, NY: Hungry Minds, Inc., 1996. Communication Skills Successful communication requires: Active listening Open, two-way communication Clarity – understanding and being understood Ability to correctly interpret body language Maddux, R. Successful Negotiation: Effective “Win-Win” Strategies and Tactics. Los Altos, CA: Crisp Publications, Inc. 1988. Active Listening Tips to demonstrate active listening: Clear away distractions Sit up straight Face the speaker Make eye contact Uncross arms/legs Lean forward “THINK” before you respond…pause, to make certain you understand and are responding to the message delivered Active Listening  Exercise #2: List two additional examples that demonstrate active listening. 1. ______________________________________ ________________________________________ 2. ______________________________________ ________________________________________ Active Listening Barriers • Pre-conceived ideas • Defense mechanism (don’t want to hear information) • Fatigue • Poor listening habits • Lack of respect for ideas/people • Lack of self confidence Donaldson, M. Negotiations for Dummies. New York, NY: Hungry Minds, Inc., 1996. Clarity Tips to clarify information: • Ask questions to identify key issues and topics • Plan questions in advance to narrow issues and topics • Tailor questions to the listener using appropriate terminology • Follow-up general responses with specific questions • Keep responses short and concise Maddux, R. Successful Negotiation: Effective “Win-Win” Strategies and Tactics. Los Altos, CA: Crisp Publications, Inc. 1988. Clarity Tips to present information more clearly: • Present information in a logical format that is easily understood: − Point to be made: Our wage scale is too low − Reason supporting the point: Low wages result in job dissatisfaction and the loss of technologists Clarity − Example emphasizing the reason: In the past three months, we have lost four technologists to local community hospitals with wages exceeding our top range by $5.25 and have been unsuccessful in recruiting new technologists to fill those vacant positions. − Summarize the point: Our wage scale is too low Clarity Barriers to Clarity: • Fear of rejection • Fear of hurting someone else • General distractions/interruptions • Sidebar discussions • Poor preparation • Too busy to be clear Donaldson, M. Negotiations for Dummies. New York, NY: Hungry Minds, Inc., 1996. Body Language Body language plays a critical role in communication Accurate interpretation of body language is required for successful negotiations Body language is expressed by: • Eye and facial expressions • Arm and hand positions • Leg and foot positions • Posture and body position Donaldson, M. Negotiations for Dummies. New York, NY: Hungry Minds, Inc., 1996. Body Language Body language signaling receptive communication: • Direct eye contact • Body position relaxed – arms and legs uncrossed • Alert and smiling facial expression • Movement of head to indicate interest (nodding in agreement or tilting with interest) • Attentive posture or slightly leaning forward Donaldson, M. Negotiations for Dummies. New York, NY: Hungry Minds, Inc., 1996. Body Language Body language signaling barrier to communication: • Slouched posture indicating boredom or lack of interest • Lack of eye contact • Body position tense, crossed arms and legs • Neutral or frowning facial expression • Movement of head in a distracted manner (turning away) Donaldson, M. Negotiations for Dummies. New York, NY: Hungry Minds, Inc., 1996. Emotional Control Emotional control = emotional distance • Understand your personal strengths and weaknesses • Identify your ‘hot buttons’ and know how to control them • Call for a ‘time-out’ whenever necessary to maintain control and confidence Kolb, D. Everyday Negotiation: Navigating the Hidden Agendas in Bargaining. San Francisco, CA: A Wiley Imprint, 2003. Emotional Control Emotional Control = Emotional Distance • Express enthusiasm…but not at the expense of others • Be assertive, not aggressive • Learn to deal with frustration and discouragement • Learn to deal with difficult people Kolb, D. Everyday Negotiation: Navigating the Hidden Agendas in Bargaining. San Francisco, CA: A Wiley Imprint, 2003. Emotional Control  Exercise #3: Give two additional examples of techniques to maintain emotional control. 1. ______________________________________ ________________________________________ 2. ______________________________________ ________________________________________ Emotional Control: Difficult People People come with all types of personalities: • Bully • Rude/insensitive • Passive/aggressive • Manipulative Understanding and addressing specific personalities can assist in a successful negotiation process Kolb, D. Everyday Negotiation: Navigating the Hidden Agendas in Bargaining. San Francisco, CA: A Wiley Imprint, 2003. Emotional Control: Difficult People Techniques to address difficult people: • Encourage participation • Discourage dominators and ramblers • Be firm and assertive • Maintain focus and a clear direction • Give people the benefit of the doubt • Use ‘time-outs’ whenever necessary to maintain emotional control Kolb, D. Everyday Negotiation: Navigating the Hidden Agendas in Bargaining. San Francisco, CA: A Wiley Imprint, 2003. Difficult People  Exercise #4: Give one tactic for successfully interacting with each of the following personality traits: Bully: _______________________________________ Rude: _______________________________________ Know-it-all: __________________________________ Passive: ______________________________________ Final Negotiations: “Closing the Deal”  A ‘win/win’: • Relies on each side accepting responsibility for achieving their own interests • Is a subjective perception • Relies on honesty and respect  A successful negotiator recognizes when to ‘close the deal’ or walk away from negotiations  Once an agreement has been reached, the negotiator should briefly summarize the discussion and conclude the meeting Kramer, H. Game, Set, Match: Winning the Negotiation Game, A Step-by-Step to Getting What You Want From Any Negotiation. New York, NY: ALM Publishing, 2001. Final Tips: Traits of A Great Negotiator Empathy Respect Personal Integrity Fairness Patience Responsibility Flexibility Sense of Humor Self Discipline Stamina Maddux, R. Successful Negotiation: Effective “Win-Win” Strategies and Tactics. Los Altos, CA: Crisp Publications, Inc. 1988. Final Tips: Successful Techniques Avoid personal attacks Break up large ideas/issues into smaller parts Stress facts from simple to complex Use informality: talk face-to-face use humor Illustrate ideas with real world examples Kolb, D. Everyday Negotiation, Navigating the Hidden Agendas in Bargaining. San Francisco, CA: A Wiley Imprint, 2003. Final Tips: Techniques to Avoid Starting negotiations before you are ready Negotiating with the wrong person Inflexibility early in negotiations Losing control, feeling powerless Losing sight of fixed goals and limits Being concerned about the ‘other guy’ Failure to focus on the end result – a successful outcome Donaldson, M. Negotiations for Dummies. New York, NY: Hungry Minds, Inc., 1996. Summary Successful negotiations rely on: • Preparation: Setting specific goals and limits • Communication skills • Emotional control • Closing the deal Application Workshop Select 4 individuals from the audience to act as a committee representing the technologists in the department Select 1 individual from the audience to act as the department administrator. Note: the department administrator has no clinical experience and is only interested in the financial bottom line. Application Workshop Problem to be addressed: Overtime has been determined as ‘excessive’ in a fully staffed department and normal patient volume Management’s solution: begin rotating 2 technologists to a later shift (10 am – 7pm) - current department hours: 8 am – 5:30 pm Extenuating Circumstances: All technologists have either family or evening commitments (school, etc.) and cannot work the later shift. Application Workshop Goal: Reduce overtime by a minimum of 80% within 60 days Solution: The committee will determine alternative solutions to the 10 am-7 pm shift and negotiate an acceptable resolution that meets management’s mandate of a reduction in overtime by 80% while maintaining working hours acceptable to the technical staff.