Negotiation

Fundamentals
Guide
a course companion
with Lisa Gates
Negotiation Fundamentals
2 Contents
CONTENTS
OPENING QUESTIONS .............................................................................................................page 3
RESEARCHING YOUR VALUE ...................................................................................................page 4
A LITTLE LIST MAKING .............................................................................................................page 5
HOMEWORK .............................................................................................................................page 8
RESOURCES FOR RESEARCHING YOUR VALUE .....................................................................page 9
DIAGNOSTIC QUESTIONS: CHEAT SHEET ..............................................................................page 10
FRAMING ...................................................................................................................................page 13
12-STEP PROCESS CHECKLIST .................................................................................................page 15
ADDITIONAL RESOURCES .......................................................................................................page 16
Negotiation Fundamentals
3
OPENING QUESTIONS
Reect on your negotiating experience and try to start noticing daily opportunities to negotiate.
Questions
What have you been negotiating over and over with little or no success?
Who or what gets in your way?
What did you have the opportunity to negotiate today?
Did anyone ask you to do something for them?
Did you offer your help or services to another?
What did you reach into your wallet to pay for today?
Opening Questions
Negotiation Fundamentals
4
RESEARCHING YOUR VALUE
1. Do you know what your market value is? What are your services worth? Do a
little digging.
salary.com
Glassdoor.com
getraised.com
2. If you are an employee, are you asking for raises and increased benets on a
yearly basis? If so, list here.
3. If youre an employee, what projects did you contribute to that increased your employers prots?
4. If you are an entrepreneur, are you pricing your goods and services based upon what the market is willing to pay for them? If
you are an entrepreneur, is the market youre now serving a market that can afford to pay what your services are worth?
Researching Your Value
Negotiation Fundamentals
5
A LITTLE LIST MAKING
Your values and priorities should inform your search for the right compensation, so lets do a little hands-on work.
1. Research the market.
2. Price our goods, services, and salaries/benets accordingly.
3. Begin to recognize opportunities to negotiate $$$ for time, services, and products.
4. Practice asking for what we want based on the value we bring to the table rather than what we need to make ends meet or what
we think is fair.
Its critical to understand that getting your market value is not about just covering your expenses. Its about taking your long-term
priorities and goals in your life and work into account.
To get started, lets make a few lists to get your money-making life on paper. (Use the table provided)
A Little List Making
Negotiation Fundamentals
6
1. Make a list of the services you provide and/or products you sell and indicate what youre currently charging for them.
2. Make a list of the benets your clients, customers, or employers derive from your work.
3. Based upon questions 1 and 2, make a list of all of the people and businesses that might use your services or buy your products,
focusing on the high-end.
Services provided Cost Benets People/Businesses
4. Categorize your work. Using the National Wage Data web site (see additional resources), nd as many job or service categories
that apply to your work and rank them from highest to lowest average wage. Notice where your current position ranks and bump
yourself up a notch. Note: If youre a nurse, might you also be a health care manager? If youre a teacher, might you also be a
trainer? If youre a manager, might you also be an executive?
A Little List Making
Negotiation Fundamentals
7
5. Make a list of all the most respected, accomplished, high-earning people in your eld or similar elds. Contact at least three of
the people you mention in question 5 to nd out what they make/charge. Alternatively, post a question on LinkedIn, Facebook,
or any forum or social networking site youre on.
Respected People Contact (mark x)
A Little List Making
Negotiation Fundamentals
8
HOMEWORK
1. How do your feelings about what youre charging or being paid differ from your fact-nding?
2. What changes might you need to make to your:
Market?
Services?
Products?
Career focus?
Business focus?
Branding?
3. What, if anything, is standing in the way of maximizing and achieving your true value?
Homework
Negotiation Fundamentals
9
RESOURCES FOR RESEARCHING YOUR VALUE
These sites contain industry and often employer-specic information on salary and benets by job category:
1. Glassdoor.com
2. JobVent.com
3. Vault.com
4. Payscale.com
5. Six-Figure Income Level Jobs. Use this site to compare what you now do to jobs paying 6-gure incomes:
http://swz.salary.com/salarywizard/layouthtmls/swzl_salaryrangenarrow_50.html
6. Career Benchmarking Assessment. Use this Monster tool to nd out where you stand in terms of salary in your industry:
http://my.monster.com/Career-Assessment/Dashboard.aspx
7. Occupational Employment Statistics, including national wage data:
http://www.bls.gov/oes/current/oes_stru.htm
8. CareerOneStop. Salary & wage information from the U.S. Department of Labor:
http://www.careeronestop.org/SalariesBenets/Sal_default.aspx
9. GetRaised. This site offers a mashup of many of the resources above to create a personalized plan for getting a raise. You enter
data like job title, skills, accomplishments, time on job or in industry, etc. When youre nished, GetRaised provides your salary
range, plus a letter you might use for your ask. It takes 20 minutes! http://www.getraised.com
Resources for Researching Your Value
Negotiation Fundamentals
10
DIAGNOSTIC QUESTIONS: CHEAT SHEET
Diagnostic questions will help you gure out what your bargaining partners interests, wants, and needs are. This will allow you to
dig deeper and create an atmosphere of natural problem solving. Here are some examples to get you started. Think of them as your
personal cheat sheet.
Salary questions
1. What issues might bear on my salary increase this year?
2. Who besides _________ might inuence the companys decision on the size of my raise?
3. Who do you need to satisfy to close a deal? How can I help you satisfy them?
4. Who has the authority to close the deal? Should we include them in our discussions?
5. What should I be prepared to demonstrate about my performance to maximize my raise this year?
6. What limitations might you be operating under of which Im unaware of?
7. How can I help remove or diminish those limitations?
8. What are your primary goals for the coming year?
9. How might I help you achieve them?
10. What metrics do you base the companys proposed raise this year?
11. If I were to accept your counter offer, what could you promise me as a timeline for getting to X salary?
12. What would it take to adjust my salary at target points as opposed to annual reviews?
13. Can you think of any items within the scope of this discussion that are of low cost to you but might be of high value to me?
14. Would you be willing to brainstorm other ideas and options?
Deal and fee setting questions
1. What are your nancial goals for the year?
2. What were your goals for last year and did you meet them?
Diagnostic Questions: Cheat Sheet
Negotiation Fundamentals
11
3. What obstacles prevented your being as successful as you wished to be last year?
4. If you could eliminate or reduce the number of those obstacles, what would it be worth to you?
5. What have you budgeted this year for services like mine?
6. What did you base that budget on?
7. What items have you budgeted as little/as much on?
8. In what ways do you anticipate spending the money you budgeted for services like mine?
9. Are you currently paying for services like mine?
10. Have those services lived up to your expectations?
11. When you hire a _________, what are your preferences in the manner the job is done?
12. What do you demand by way of quality?
13. How might we pass the expense of __________ along to the customer?
14. What other sources of income or another budget item could be used to pay for my services?
15. Would you be willing to give me a chance to show you a better way to do X?
16. If I could produce X results, would you be comfortable entering into a contingency deal or a at fee with a bonus or an hourly
rate with a bonus?
17. Is there something of value you believe you could provide to me in addition to cash that might incentivize me to do the job for
less than my going rate?
Issue-oriented questions
1. How would you characterize the issue/problem?
2. Who do we need to include in the conversation?
3. Who might be harmed as a result of this issue?
4. How can I help you avoid that harm?
Diagnostic Questions: Cheat Sheet
Negotiation Fundamentals
12
5. Where do you think we might obtain more information that would help us resolve this problem?
6. Would you like me to search that out?
7. Whats most important to you?
8. Whats least important to you?
9. What would be the best outcome for you?
10. Whats difcult about X?
11. How can I help you?
12. How do you see our relationship evolving if we resolve this issue?
13. What do you fear might happen if we dont resolve it?
14. Whats holding you back?
15. Where do you wish you could go?
16. What would you do if your hands werent tied?
17. If we were partners in this, how could we use our strengths to support each other?
18. What role would you like me to play in resolving some of the problems youre having with X now?
19. Whats upsetting you?
20. What do you think is fair?
21. Why do you think thats fair?
22. What about that resolution seems fair?
23. What else?
24. What might be left unsaid or undone?
Diagnostic Questions: Cheat Sheet
Negotiation Fundamentals
13
FRAMING
To help you move through resistance, rejection, or limited thinking, try your hand at reframing (creating a new or different
perspective) using the examples below as a guide:
Example #1:
Frame: Its not personal. Nobodys getting raises.
Reframe: Ive been doing the work of three positions and producing great results for the company, and Id like to talk about
bringing my salary and title into alignment with the reality of what amounts to a new job description.
Example #2:
Frame: As a professional business association we do not pay our monthly speakers; people are happy to speak for free for the
marketing possibilities.
Reframe: As a professional business person I make part of my living by speaking. Perhaps we can brainstorm ways to underwrite
my talk without impacting your budget or your policy.
Reframe the following statements:
1. I cant raise my fees, nobody will hire me.
2. The sales department keeps promising turnarounds that production simply cant meet.
3. If I support your work on this new project, Im going to lose you to Janes department.
Framing
Negotiation Fundamentals
14
4. Your resume indicates you dont stick around long in any given position.
5. Your hourly rate is more than my car payment.
Framing
Negotiation Fundamentals
15
12-STEP PROCESS CHECKLIST
Print this out and hang it somewhere you can see it!
1. Research and prepare.
2. Prioritize your moving parts and concessions.
3. Know your bottom line.
4. Convene the decision makers or stakeholders.
5. Establish connection and trust (small talk).
6. Ask open-ended questions.
7. Anchor rst and anchor high.
8. Frame your request as a benet to your bargaining partner.
9. Meet an impasse (no) with brainstorming.
10. Name concessions and ask for reciprocity.
11. Paraphrase your understanding.
12. Reach agreement and write it down.
12-Step Process Checklist
Negotiation Fundamentals
16
ADDITIONAL RESOURCES:
Terms and denitions
1. Negotiation: Discussions between at least two parties for the purpose of reaching an agreement.
Trying to get someone to do something they dont want to do.
Trying to get someone to stop doing something they want to continue to do.
Trying to satisfy, with an agreement, everyones interests in the subject matter of the negotiation.
2. Interests: Your own and your negotiation partners needs, desires, fears, motives, preferences, priorities, appetites for risk, and
predictions about the future.
3. Interest-Based or Mutual-Benet Negotiation: In this type of negotiation, we enter into a value-expanding conversation by
rst identifying all parties interests (preferences, desires, fears), and our task is to do our best to satisfy everyones interests.
4. Distributive Bargaining: In this type of negotiation, we are attempting to distribute among us what we perceive as limited
resources. So the subject of the negotiation is viewed as a xed pie and our task is to get as many slices as possible.
5. Diagnostic Questions: Open-ended questions beginning with the words who, what, when, where, how, and why. Used to
discover the interests of your bargaining partner in order to nd mutual benet, and to help you move past objections and
impasse.
6. Anchoring: An attempt to establish a reference point (anchor) around which a negotiation will revolve. The negotiating partner
who makes the rst reasonable offer anchors the bargaining range in her favor. The anchor will inuence your bargaining
partners responses in the direction of the anchor throughout the negotiation.
7. Framing: Creating a perspective of the problems or issues for a decision. A question as innocuous as how tall is he frames
the response. Research shows that people give higher numbers when asked how tall or large someone is than they do when
asked how short or small someone is. If you can frame any negotiation as a benet to your bargaining partner, you are poised to
achieve a favorable outcome for both parties.
Additional Resources
Negotiation Fundamentals
17
8. Concessions: Tradeoffs in which you engage in conceding, yielding, or exchanging things of value. Exchanging things of lower
value to you and higher value to your negotiation partner is called log rolling.
9. Reciprocity: When someone gives or concedes something of value in a negotiation, we acknowledge the offer and respond
with something in exchange. Note: we must stress the difculty or generosity of our concessions and ask for something in
exchange in order to avoid the doormat factor.
10. Contentious Tactics: Attempts to convince your bargaining partner to do something she doesnt want to do or to stop doing
something she wants to continue doing. Tactics include ingratiation, promises, persuasive argumentation, shaming, threats,
gamesmanship, and violence.
Ingratiation: Getting what we want through charm or attery or because were just so darn likeable. Hey, youre really a
better editor than I am. Would you take a look at this document?
Promises: Getting what we want now by promising well do something later. Ill deliver the goods to you on an expedited
basis but only if you pay me my normal charge up front and a bonus of $ at the time of delivery.
Persuasive Argumentation: The use of logic and reason to change someones behavior or position, to prove how youre right
and theyre wrong, or to lower their expectations.
Shaming: Expressions of dismay, shock, or disapproval of anothers behavior, usually on moral grounds. Your work is really
embarassing and youre really not living up to your potential.
Gamesmanship: Getting what we want by manipulating our bargaining partner. If I have to give you ten days notice, Ill give
it to you at 5 p.m. on the Wednesday before Thanksgiving.
Threats: Getting what we want know by threatening to cause the other harm if they dont comply. If you dont get your
report in youre going to have to work over the weekend.
Physical force: Hitting, pushing, shoving, taking.
Additional Resources
Negotiation Fundamentals
18
Recommended reading
1. Drive: The Surprising Truth About What Motivates Us by Daniel H. Pink
2. Leadership and Self-Deception: Getting out of the Box by Arbinger Institute
3. Leadership Presence by Kathy Lubar and Belle Linda Halpern
4. No Excuses: 9 Ways Women Can Change How We Think About Power by Gloria Feldt
5. Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher
6. Women Dont Ask: The High Cost of Avoiding Negotiation--and Positive Strategies for Change by Sara Laschever
7. Ask For It: How Women Can Use the Power of Negotiation to Get What They Really Want by Sara Laschever
8. 3-d Negotiation: Powerful Tools to Change the Game in Your Most Important Deals by David A. Lax
9. Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond
by Max H. Bazerman
10. Getting Past No by William Ury
11. Mind and Heart of the Negotiator, The by Leigh L. Thompson
12. Brain Rules: 12 Principles for Surviving and Thriving at Work, Home, and School by John Medina
13. Inuence: The Psychology of Persuasion (Collins Business Essentials) by Robert B. Cialdini
14. 27 Powers of Persuasion: Simple Strategies to Seduce Audiences & Win Allies by Chris St. Hilaire
Additional Resources