Advanced Negotiation Training

The most important thing in communication
is hearing what isn't said.

Peter Drucker

Economist

Advanced Negotiation © ArcBlue Asia Pacific 51

Building rapport a la Carnegie

 Become genuinely interested in the other person; eye contact, no interruptions
 Smile! Try to be warm and engaging
 Use their name, and address them directly
 Ask questions, face them, and listen carefully to the answers
 Empathise with their perspective and couch issues in their terms
 Value the other person and be genuine

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Body language © ArcBlue Asia Pacific 53

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How to tell if someone may be lying © ArcBlue Asia Pacific 54
(or withholding information)

1. Lack of or too much eye contact
2. Foot movement
3. Shorter responses
4. Change in pitch
5. Shoulder shrugs
6. Too much sweating
7. Changing the Subject
8. Fidgeting
9. Face touching
10. Excessive lip licking

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Body language tips © ArcBlue Asia Pacific 55

Advanced Negotiation

Positive body language tips

Stand up straight Appear open and Keep a straight Keep your feet Mirror/Match the Stand still –
and relaxed undefended spine while hip width apart other person’s avoid fidgeting
sitting and balanced posture
(arms by side)

Smile as you Offer a firm but Keep eye contact Smile when Don’t lean on Keep your
walk into a room gentle while shaking greeting walls or objects neutral face a
hands
handshake someone new happy face

Maintain eye Use a genuine Actively listen to Give the other Listen carefully Treat everyone
contact smile your partner person your full for what “lights like a friend upon
them up” inside meeting them
attention

Nod slightly Perform a Be radically Use a gentle Stand “solid” –
when listening generous gesture curious when touch to even weight on

upon meeting you meet sympathise and both feet
someone someone new connect

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Negotiation Persuaders Learning objectives
Phases of Negotiation Understanding the most
Practice Game commonly used tactics in
Trust & Relationships Negotiations
Tactics
Negotiating in Teams
Practice Role Play

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Tactics © ArcBlue Asia Pacific 58

The most commonly used tactics in negotiations

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Tactics © ArcBlue Asia Pacific 59

The dictionary defines a tactic as:
 A procedure calculated to gain some end
 Skilful devices
 The art of disposing forces

Taking some of the key words, we can interpret this as:
 Calculated – implies care in the choice and the timing
 Skilful - emphasises the need for skill in using them
 Art – suggests creativity and flair are required

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Using Tactics

 Tactics help in a number of ways:

- To buy time or delay decision making
- As coping mechanisms
- To help manage the negotiation
- To encourage movement
- To put pressure on the other party

 Match tactics used to the type of negotiation

- Collaborative negotiations will require more care with tactics

 Consider the character and personality of the other party

- Certain tactics will work better with certain people

 Do not be predictable in your use of tactics
 Do not overuse the same tactic as this is overtly manipulative and damaging

to the relationship

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Core negotiation tactics  Linking Issues
 Re-escalation of demand
 Recess  Messenger
 Silence
 Broken Record © ArcBlue Asia Pacific 61
 Salami slicing
 Russian Front
 One more thing
 The hypothetical
 Building blocks
 Defence in depth
 Casino

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Tactics can be organised into 3 groups

Buying time Managing the Encouraging
negotiation movement

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Buying Time

Defence in Depth

What is it?
- Using several layers of management before the issue reaches the final decision maker
- Additional information provided or milestone needs to be passed at each level to give credibility

Example
“I really don’t think I could justify that to my boss, they are looking for some significant movements
here”

How to respond when used against you
- Ask – well if you aren’t the decision maker, please can you get them?

Potential pitfalls
- Be careful that you don’t undermine your own authority

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Buying Time

Building Blocks

What is it
- Request a proposal for only part of your requirement at first
- Ask for further proposals until you reach your actual requirement
- Motivates the other party positively to offer concessions
- Difficult to do with other party if true requirement known

Example
A buyer asks how much is your price for 10,000 units? Once the supplier gives a price, the buyer asks – that’s
great, can you provide a price for 15,000 ? And then 20,000?

How to respond when used against you
- Be firm and call out the other party – “we have a transparent relationship, please can you let me
know the real volumes?”

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- Easily seen as manipulative if not careful

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Buying time

Recess

What is it
- Seek to adjourn to review or delay discussing until later
- Provides thinking time
- Can be effective if you haven’t planned to discuss an issue or are faced with a surprise
- Can help to calm a difficult or emotional meeting
- Effective if the team is not operating as “one”
- Can also help in resolving an impasse

Example
“lets just take 5 minutes just to have a break and gather our thoughts”

How to respond when used against you
- Not much you can do but be wary of accepting one if the other party is under pressure on an
issue

Potential pitfalls
- Can lose momentum in a negotiation

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Movement

Salami slicing

- A package is deconstructed into smaller elements which are then negotiated individually,
resulting in many small concessions, “slicing up” a consolidated package

- This often produces concessions because the other party wishes to get away from an
increasingly uncomfortable situation

- Sellers often “package” a deal and you can use this tactic to unpick variables into separate
pieces to be negotiated

Example:
“You have given us a package price, can you help us understand how this is made up by providing a
breakdown?”

How to respond when used against you
- As a seller, If you are asked for a cost breakdown, resist at all costs

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- You might not get a breakdown, so have a plan B or prepared response.

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Managing the process

Silence

What it is
Most people dislike silence and it can be a very effective method to put the supplier under pressure and often the other
party will give information they hadn’t planned on giving because they feel as if they have to fill the void.
If we have prepared well we will know the key elements of the negotiation and often it will come down to one key issue
and one key question. We should know who will ask the question, how they will ask it and when. We ask the question –
then silence. The next person to talk will be the supplier.

Example
“Given everything you have said about your reputation for quality, why have your customers given you a poor
reference?”

How to respond when used against you
Don’t be put under too much pressure when silence is used. Take your time with your thinking and answer the question
when you are ready. Alternatively, you can apply pressure back by simply saying “So, what do you think?”

Potential pitfalls
Don’t be tempted to fill the silence!

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Movement

The hypothetical

What it is
Hypothetical questions usually begin “What if....” “Suppose we” and can be particularly useful for tabling a new
idea or to help break deadlock. Matters can be discussed without the fear of commitment. They enable
various options to be tabled for discussions but free from any commitment,

Example
eg. “what if we extended the contract to two years?”
“Suppose we make you our sole supplier?”

How to respond
If used against you, its important to understand if the hypothetical is a realistic possibility. You could ask “that
would be interesting, is it something you could realistically do”?

Pitfalls
If used late in the process, when the basic framework of a deal has been constructed, it can cause frustration
since one or other party may see it as a backward rather than a forward step, breaking the framework and
implying that the process has to start again

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Movement

Russian Front

What it is
- Two alternatives are presented, one of which is so unpalatable that the other party will choose the
other
- Its called the Russian Front as soldiers were given 2 options – you either fight on the Russian Front
(which meant certain death) or you go to another battle.
- Use this when you want to “jump” the other party into accepting something

Example
You want to reduce price by 10% - sure I can do that by removing all the quality checking. Or we could
keep the price as it is and look to make some savings in other areas.

How to respond
- If you are offered a binary choice, explore whether these are really the only options

Pitfalls © ArcBlue Asia Pacific 69
- Make sure the other party cannot accept the unpalatable option

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Managing the process

Broken Record

What it is
- Repeating again and again the point you are making
- In some cases you will win the point because the other party has had enough of the constant
repetition
- Remember people often give up after they hear the first `No'
- Assists in demonstrating persistence

How to respond
- Politely but firmly say “you have mentioned this a number of times now – I want to give you a
final chance to get this off your chest and then we can move on”

Pitfalls
- Can be seen as a weakness if overplayed

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Movement

Linking Issues

- Establish a link between issues previously separate
- Contingent relationship between two issues on which both sides want settlement

Example
In buying a new car, seller suggests possible additional concession if you agree to have the car
serviced at the garage

How to respond
- Consider the deal but be prepared to question why the issues are linked as there may be no
logic

Pitfalls
- Can limit creativity as the only discussion is relating to the 2 issues

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Movement

One More Thing

- Also known as the “Colombo” tactic after the American TV series. Columbo was a detective famous
for saying “ one more thing” just before he was leaving the room - it was usually the key to the
case.

- Used at the end of the negotiation to extract one final, usually small, concession

Example
“Before we shake hands, of course we would need to include a CPI increase as well.”

How to respond
- Use emotion and say you are disappointed by the move and have to reconsider the deal

Pitfalls
- Be careful not to ask for so much that you reopen other issues

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Movement

Re-escalation of Demand

- After moving towards the other party you may find them unwilling to reciprocate and move
- You respond by saying you have moved too far and retract the offer - you can move back to the

original position or even further
- Has the effect of “shocking” the other party into moving - the other party often quickly agrees for

fear of losing the concession made

Example
“I was expecting this to be a collaborative negotiation and have shown good-will – as you haven’t
moved towards us, I’ll have to take the offer off the table”

How to respond
- Try and keep the momentum and initially get the other party to re-confirm the original offer

Pitfalls 73
- has the potential to lead to mistrust
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Advanced Negotiation

Managing the process

Messenger

- Implication is that some third party is responsible for the bad news or difficult message you are
sharing

- Can help put down a marker without being responsible for it
- Allows pressure to be applied, but retaining the relationship

Examples
“I’m only telling you what the engineers told me”
“I’m under management pressure to achieve savings”

How to respond
- If you aren’t the decision maker, then who is?

Pitfalls
- Take care the other party doesn’t refer to the higher authority – they need to be briefed or must
not be accessible

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Summary of tactics A. Encouraging B. Buying Time C. Managing the
Movement process
Messenger Y Y Y
Russian Front Y Y
Building Blocks Y Y
Silence Y Y
Recess Y
Broken Record Y Y
Defence In Depth Y
Re-escalation of demand
© ArcBlue Asia Pacific 75
One more thing
The hypothetical
Linking issues
Salami Slicing

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Tactics to avoid (or use with extreme care!)

 Good Cop, Bad Cop
 Physically Disturb them
 Take it or Leave it or Ultimatum

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The 5-6-7 Negotiation Moving Testing
Framework Concluding

Reviewing SIX Opening

PHASES

Preparation
planning

Compromise Building Broken
Bargaining Block Record

FIVE

Threat PERSUADERS

Logical SEVEN Silence
Reasoning

Emotion

Russian TACTICS
Front
Recessing

Salami Hypo-
thetical?

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Negotiating in Teams © ArcBlue Asia Pacific 78

Advanced Negotiation

Negotiation Persuaders Learning objectives
Phases of Negotiation Understanding the different
Practice Game roles when negotiating in
Trust & Relationships teams
Tactics
Negotiating in Teams © ArcBlue Asia Pacific 79
Practice Role Play

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Team roles © ArcBlue Asia Pacific 80

Chair or facilitator
 Sometimes this can be the most senior person
 Often this person is not the lead negotiator
 Role is to co-ordinate the team and make sure that

- the agenda is followed
- team members contribute at appropriate time
- we summarise periodically
- the negotiation is broadly ‘on track’
- Extended team members are briefed

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Team roles

Lead negotiator
 Sometimes this can be the most senior person
 Probably a negotiation process expert
 Role is to

- deal with the key points
- respond on behalf of the team when needed
- ask questions as agreed with the team
- deploy persuasion methods as in the plan
- seek contributions from other team members when appropriate

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Team roles

Subject matter expert
 Usually this is a technical person
 May attend for those parts of agenda relevant to their issues
 Role is to

- tune in to the style of the negotiation
- be ready to respond on behalf of the team when needed
- signal desire to intervene when appropriate to Chair
- adhere to the agenda
- make sure that their persuasion methods are deployed in agreed sequence

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Team roles

Note taker
 Usually this is a more junior person
 Records key issues and agreements
 Role is to:

- record what is agreed or not agreed!
- be ready to summarise if invited to replay what was previously discussed
- signal desire to intervene when appropriate to Chair
- make sure that notes are legible, and written up and circulated within 48 hours
- keep an audit record if appropriate

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Negotiation Persuaders Learning objectives
Phases of Negotiation Put in to practice what you
Practice Game have learnt!
Trust & Relationships
Tactics © ArcBlue Asia Pacific 84
Negotiating in Teams
Practice Role Play

Advanced Negotiation

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