Negotiator / Knowledge base  / Games

Negotiation games

Perfecting negotiation competencies is best done through practice. However, if you wish to improve your skills in a risk-free environment, in this article I describe the tool to do that. That is, negotiation scenarios. Scenario and case study A scenario is similar to a case study but there is one difference worth mentioning. A case is always based on a historical situation, while a scenario can also be fiction and even abstract. Each is valuable in some way. For example, abstract scenarios nurture creativity, which later comes in handy when solving real problem. Professional analyzes A scenario is a tool with big potential of value for players if certain measures are taken. Firstly, it is best to invite a professional negotiator to listen in to the negotiations and take notes. After the game ends, their role is to moderate the process of learning and help players to evaluate their own behaviors. Secondly, the negotiation could be captured on film. Then, after the game ends, the whole process can be analyzed in retrospect, including behavioral tendency analysis. Players enjoy watching themselves on video, which is an unbiased source of information and provokes swift changes. Thirdly, it is practical for players to note down three things to improve and keep this note till the next scenario, to help ensure progress. Scenario and reality There are several details distinguishing scenarios from real life. A person will behave differently in each of them. In reality, one is themselves and negotiates their real business, while during a scenario one plays a role and enters its world. Due to this, it is generally easier to think outside the box in real life, where we have much more information at hand. Moreover, when playing scenarios, players have more easy-going attitudes due to lack of risk. On the other hand, scenarios develop role playing and improvisation skills, which are both very useful in life. Games in the world of tournaments Scenarios are used during international championships in negotiations such as The Negotiation Challenge and Warsaw Negotiation Round. In Poland, probably the only institution which is a reliable source of scenarios is Student’s Scientific Association ‘Negocjator’ at the Warsaw School of Economics. They organize the Warsaw Negotiation Round. Its members and alumni prepare high class materials for the purpose of conducting national and international tournaments, which they organize under the patronage of the Marshall of the Senate. Some scenarios later show up as book publications. The most recent editions are smartly laid out and contain lots of additional materials such as author’s comments, score cards, introductory commentary etc. Read my interview with the organizers of Warsaw Negotiation Round 2015 Read my personal report from the Warsaw Negotiation Round 2015, where I coached the team representing Poland.

Negotiator / Knowledge base  / 10-principles

10 principles of negotiating

This article is special because it sums up important elements of professional negotiations covered in articles, which I published on this site and on my blog over the past months. It reviews principles which I chose based on my experiences. I am convinced that these several key-points below have a major impact on the way of reaching agreements.

1. Have a reason – if you don’t have to, don’t negotiate – create an offer your partner won’t reject. If you chose to negotiate, be convinced why you want to do it. Think about what other options there are to fulfil your needs. An authentic choice to negotiate will provide motivation to be professional throughout the process.
2. Be a humble partner – the world is full of things we have never encountered and people with possibilities we have not dreamt of. By opening up for possibilities, which you didn’t know before and restraining from judging the unknown, you will have more options for taking action. At the same time, keep to partnership equality for respect and assertiveness.
3. Prepare – looking into the future reduces uncertainty. Preparation is a projection of the future. Thanks to it, you get acquainted with situations which you might encounter in the future so that they are not alien to you. This will make you feel more comfortable when they occur so you can effectively operate.
4. Listen – the one who has more information also has more possibilities of taking effective action. Listening and understanding will make you the side with more information.
5. Look from different perspectives – looking from more points of view broadens understanding and makes seen what is unseen from a sole perspective. Go to the gallery to dissociate with your own view point and embrace the situation at the negotiation table. Go into the other side’s shoes to understand their requests and terms proposals.
6. Think in terms of interests – strife to understand what your partner want to achieve by their requests to turn the conversation into a joint problem solving force. Thanks to such transparency, sides will not hold onto their positions unconditionally. Moreover, the talks will be more productive and will increase the chances for a satisfying agreement.
7. Be respectful – respect can be shown under any circumstances. If your partner is disrespectful, it does not permit you to do the same. Being a professional is a basics.
8. Don’t engage emotions – regardless of how real an emotion is for us, it should not be related to reality. Emotions influence our behavior if we let them. Don’t let emotions influence you. Be the one to influence your emotions.
9. Act upon win – win strategy – care for your partner’s interests as you do for yours. This will align the thinking process to seek solutions beneficial for all. Moreover, embracing and keeping the interests of all sides will increase your control over the process.
10. Get agreements on paper – it is wise to note down the terms every now and then, even if they are not the final agreement yet. Should someone’s memory play games, written information can save a lot of trouble and explanations.

Learn & play – Each negotiations are unique. Let it be that each are an adventure, which is engaging, challenging and contributes to us (negotiators) being smarter, stronger, more thoughtful and good. To successful and valuable agreements! Paweł

Negotiator / Knowledge base  / Multicultural – Preparation

Multicultural negotiations – how to prepare?

If you have read about multicultural negotiations then you are probably curious how to prepare for them. In this article I have gathered the answer to that question. Fundaments The most important things stay the same as in every other negotiations. Everything described in the article on preparing for negotiations is true in the multicultural context. Moreover, we should define the crucial elements such as our interests and BATNA with more scrutiny. Why? Because our assertiveness and ability to focus on interests will be put to the test with behaviors which could be completely new for us – it will be easier to make a mistake. Information, information, information Depending on the type of negotiations you will require quality information to swiftly move around on new grounds. In most cases you will need to find out some of the following: international law and partner’s local law; tax systems; political situation; intellectual property protection laws; organization forms laws; contract law depending on the organizational form; fusion and mergers law; important state offices and their procedures. It is also worth finding out what amongst things allowed in our country is forbidden in our partner’s country (to prevent unintended trouble). Depending on the situation, it might be wise to invest in credible information sources – e.g. consultations with high class lawyers and negotiators, who have experience in a desired field. It is good to learn about the culture and most important information about the country or area – e.g. economy, international interests. This will allow us to engage in discussions more easily and show that we are well prepared and know the territory (such a demonstration will also  discourage our partner to use their advantage of knowing the territory to their benefits, if that was their intention). Moreover, get acquainted with typical behaviors of negotiator, which are a result of a cultural context. It is better to know more than less. We want to minimize the amount of surprises resulting from the multicultural environment so that we can focus on the task at hand. Other aspects worth considering Getting to know how etiquette is perceived by our partner’s culture will provide us with information thanks to which we can adapt our clothing and behaviors to local standards. It is in our best interests that our partner understands us the way we intend them to. That’s why it’s wise to consider the differences in precise communication resulting from high- and low-context languages. Even experienced negotiators will occasionally encounter new behaviors in multicultural negotiations. What we don’t know or don’t understand can be a source of frustration. Therefore, it is wise to get into an attitude of calmness. Be willing to show acceptance and communicate precisely.

Negotiator / Knowledge base  / Multicultural Negotiations

Multicultural negotiations

Negotiations in a multicultural environment are a challenge. This article will show you the way. Read it thoroughly to see what one should learn to successfully approach them. Perspective Everything we think is an interpretation. We perceive the world through filters we make throughout our entire lives. Every experience shapes our filters. If we were brought up in a Chinese metropole, we will be used to living in a collective society. If we spent two years working as programmers, we will have stronger logic skills and use them more often in out of work situations. Our experiences shape who we are. Therefore, a Vietnamese negotiator who has spent years in a reality different than that of a Norwegian negotiator will  encounter challenges during the negotiation talks. We will be more skillful at handling differences if we have an attitude of a respect and high communication & listening skills. The message: Accept how every person is different and how culture influences these differences. Cultural diversity Culture is a heritage of values and customs. They shape behaviors which we will encounter. It is most important that a negotiator understands what these behaviors are and how to respond to them. For example: being half an hour late is normal for an Italian, so he won’t find it necessary to excuse his behavior. For a German, being late is a sign of disrespect because it causes a fuss in plans. The message: Get to know the specific behaviors of negotiators of a certain culture to get used to new behaviors and establish rapport more easily.   Stereotypes Stereotypes are based on generalizations. Therefore, there are two reasons why one shouldn’t take them too seriously. Firstly, every person is different and within one culture, people differ from one another. Secondly, in many countries (i.e. Individualistic societies) people like to be approached individually and generalizations may play against relationship building. Stereotypes are not a source of valuable knowledge. It’s best to learn about cultural differences from specialized books or experienced professionals. The message: Don’t take stereotypes too seriously. Non-verbal communication In a situation, where we communicate in a foreign language with a person of another culture, (especially if it’s the first time) it will be handy to have a language we’re fluent in to support us. Body language can provide many valuable observations about our partner’s behaviors so that we can better understand their intentions. The message: Learn to read body language to enrich your options of interpreting messages.   This article is merely a road sign towards a very broad and complex subject. If you are facing multicultural negotiations in the near future, more information will be handy. Here are some other articles on multicultural negotiations. How to prepare for multicultural negotiations. Examples of negotiations in European countries. Examples of negotiations in Asian countries.

Negotiator / Knowledge base  / Multicultural – Asia

Examples of cultural differences – Asian countries

In this article I will outline the main differences which are worth knowing when negotiating in Asia, especially in China. Approach to negotiations At the center of all differences is the approach to business negotiations. While in Europe, negotiations often come down to the result we achieve and secure with a contract, in China the case is slightly more complex, or at least different. The one more important thing than the results we achieve is the way we do it. A way to put it plainly would be to say that one should take their time. Emphasis is put on getting to know the partner – as a person and as a representative of a culture – this is a way to show respect. A lot of time and effort is put towards understanding the partner – their interests, thinking process and way of making decisions. Trust is placed noticeably higher than in Europe. Actually, trust is considered to be the desired result of negotiations. The level of trust is so high, that partners still often don’t write up contracts. We could say that verbal agreements are an equivalent to our written contracts. Speaking of contracts, the Chinese have a different view on this tool too. For them it is a summary if sorts. In addition, they remain flexible and changing terms of an agreement after the negotiations is common. Values The two values which can be easily observed are respect and society. The Chinese culture is a social one, in contrast to the European individualistic cultures. Consequently, the Chinese are more aware of each other. They care about their honor and speak to others with respect. Indirect expression of objections and difficulty in rejecting propositions are also ways of expressing respect. Relationship building Due to high respect standards, the Chinese devote a long time for relationship building. Firstly, relationship should be developed prior to commencing talks on business (while for Europeans, a quality of a relationship is often wrongly perceived as a function of the quality of the contract). This is a complex process of discovering and comprehending the partner and his culture. We can expect to spend a few days sightseeing the area. Also, expect delights such as music, traditional cuisine and drinks. The appropriate way to act is to have fun and be grateful for the possibility which our host is granting us. Be open and try things, when presented with the opportunity – remember that rejection is a sign of disrespect. Communication As for verbal communication, it is good to know about two things. Due to the deep respect towards the interlocutor, Asians have a very subtle way of expressing objections. They do it so politely (so as not to harm the partner), that it can be tough to understand their intention. Another derivative matter is unclear (according to our standards) expression of one’s opinion. The above come to make Asians far from being direct communicators. Negotiations is Asian countries is a real adventure. I encourage you to use every opportunity to get acquainted with stories from people who did it.

Negotiator / Knowledge base  / Trust

Trust in negotiations

What is trust? When we trust someone, that person is trust worthy (and not the other way around). Whereas trust is not something that a person gains from us. Trust is a quality, which we own. It is a context which we grant people, when we choose to trust them. Such viewpoint of trust is important, because it assumes we are responsible for trust, which we give to people. If we trust someone and that person misuses our trust, then the problem is that we misjudged them of being trustworthy. Role of trust in negotiations Trust for negotiations is like oil for an engine – thanks to it talks go smoothly and relationships are not broken. In the context of trust we don’t lose energy for watching out if our partner is cheating on us and we ourselves don’t plot to cheat against them. Therefore, we can use more energy for listening and understanding, and constructive conversation. Trust is an indispensable ingredient of win-win negotiation based on interests. Trust games When there is not trust yet, or it has been taken away, the game for trust is on. Most people choose to give someone trust based on past experiences – whether a person was trustworthy or not. By thinking this way, we can easily close ourselves in a loop from which neither party will want to exit. This is why I described the thinking about trust above. It is helpful to perceive trust not as something we gain, but something we give. I give trust, because I choose to (not because you showed me you are trustworthy). Let us have the courage to be the first person, who gives others trust. How to build trust? Few words of practical advice:

• Explain your demands. According to psychology, by default we see people in a less brighter light than we do ourselves (especially people we just met). Therefore, when stating our demands we can be misunderstood because someone may judge our proposition as unfair. Behind every negotiator there are circumstances, which determine their shore lines and character of expectations towards the agreement. Sharing them with our partner and explaining our point of view can be a cement of trust. Firstly, this indicates our transparency which implicates honesty. Secondly, the unknown raises stress levels and comprehension lowers them.
• Speak their tongue. It is a standard to know all the technical terms and lingo – without them it is easy to take a fall in trust levels. Get to know the point of view of your partner. Embrace their situation, needs and history. This will be a display of your engagement and good will. Moreover, if you are entering negotiations in a context, which you do not know well, you can play safe: At the first stage of the negotiations, express how you wish to understand the situation so that you can work out a great agreement, but you realize there will be a lot of learning on the way. Ask for forbearance.
• Use reputation. If you have someone, who knows your future negotiation partner, it may be of benefit to engage them. They can write or call your partner and vouch for your competencies and experience. Remember that your partner will meet your reputation before he/she meets you.

Negotiator / Knowledge base  / Dirty tricks

Dirty tricks in negotiations

Just as any other industry, negotiations can be home to unfair players. This article has one aim – to give a broad display of what dirty tricks they use, so that you can spot them. Awareness is the first step toward dealing with them. Dirty tools

• Environment, which creates discomfort. Seating someone with the sun or light in their face, excessive heat or cold, noise – these are all signs to call a break and find a calmer place. Before beginning talks, sides should check if the environment is suitable and free of distractions.
• Alcohol, which dims rational thinking. Often motivated by cultural context or social proof. The facts say that even the smallest dose of alcohol alters the efficiency of the brain. As a defense, one can propose joint celebration after the signing of the agreement.
• Bribery, as a pick for desires. Presenting a shortcut to big money or other benefits can prove to work on people with weak values and a low self-esteem.
• Techniques, which lead to a downfall of a partner. Techniques are tools positioned on the verge of ethical action, and some even unethical. Before using any of them, a negotiator should think of possible consequences – one should never want the result to be other than a win-win.
• Bad intentions, which seed destruction. People driven by bad intentions are unstable in terms of values and emotions, which makes them unpredictable. They have no restrains from playing dirty tricks.

Example To finish this post, I will share a true story which is an example of an extreme dirty trick. A negotiator from Europe flew over to Asia to establish a contract. In respect with the eastern ways, the first two days were spent on seeking delight in tradition, sightseeing, food, music and alcohol. On the third day, the host announced that near the evening hours they will start to talk about business. The European was pleased. In the afternoon there was more food and alcohol. The Asian even persuaded the European to a game of table tennis. He mentioned repeatedly that it is his favorite sport and was clearly happy of being such a great host. Once they finished, the European was sweaty, tired and tipsy. He was informed that the talks on business will commence in 10 minutes. Indeed, 10 minutes later, the Asian returned in a clean, ironed short, looking fresh, focused and sober. The European was disorientated. During the negotiations he did a poor job and came back to Europe with a miserable contract. What was the dirty trick? Did you notice it? The Asian swapped with his twin brother after the game of table tennis. If the whole situation was based within one culture, the trick could probably be uncovered. Unfortunately, for a person who does not spend time daily with representatives of another race, the differences between twins were unnoticeable.

Negotiator / Knowledge base  / Strategies

Negotiation strategies

A strategy is a plan for achieving a particular future. In our case, a successful agreement. In this article I will outline two strategies. Understanding the differences between them is an indispensable step towards the development of negotiation competencies. One could say it brings about a change in the way of thinking. Position-based Strategy comes down to shooting, pushing and defending. We shoot by making frequent offers, trying to find a term combination which will please our partner. We push by putting forward arguments (thus acting on the downside of relations and cornering our partner in a defense stance) and bargaining (an emotional process lacking considerations from all parties). We defend our position (because a reaction for an argument is defense), holding it firmly so as not to have it changed under any circumstances (this is interlinked to an egoistic paradigm, that our once established way of fulfilling our interests is the only and best way in the world). Subsequently, often barriers and tensions arise during the way to an agreement. Due to its character, this is a hard strategy. People with gentler psychic are susceptible to being ‘broken’, and could agree to terms which are undesirable. An agreement reached through this strategy is at a risk of being a compromise, meaning all parties are at a loss due to big concessions. This is caused by an inflexible approach to settling on terms. This strategy does not require much preparation, but will quite surely have poor effect on relationships. Interest-based Strategy is sometimes referred to as problematic because a negotiator approaches the process to finding an agreement similarly as to problem solving. Parties know what needs they have and are open to non-standard solutions to satisfy them. Expand the pie is a phrase linked to this strategy. It assumes that in any situation, a beneficial solution to all sides can be found through creativeness and sideways thinking. We distinguish interests from means of reaching them (position in some sense). By keeping to our interests and having an open mind as to ways of their fulfillment. Subsequently, talks are held in an open atmosphere and focus on finding a solution through a joint process of communication and decision making. This strategy is often named ‘based on rules’ because there is an inside framework of the process. For example, when looking for options of possible agreement, parties keep to objective criteria. As a result of this strategy, we have good chances of reaching an agreement satisfying all sides meanwhile improving relationships. This strategy requires good preparation. Poor preparation can cause talks to detour to positions. Reality Along the development of negotiation practices, position-based negotiations are losing their effectiveness due to a raising number of professional negotiators. Business negotiations which are interest-based are more common and end in more lucrative agreements.

Negotiator / Knowledge base  / Cultural differneces – Europe

Examples of cultural differences – European countries

In this article I will outline several characteristic traits emerging from cultural differences, which we will come across when negotiation with four sample nations. The French First and most important skill in negotiations with the French is knowing their language fluently. This is one thing which can rule us out of the game. However, if we represent a company which has offices in France, this argument could be very useful in getting them to want to negotiate at all. Secondly, being punctual is important. Failure to respect our partner’s time can even lead to calling off the negotiations. Generally, the French are strictly interest orientated and leave emotions at the door. The German One thing we can be sure of is that a German negotiator has done all their homework and prepared exceptionally well. They will acquire information about us and detailed information about the organization we represent. Moreover, we can expect our partner to have expert industry knowledge and analyze the subject of transaction with scrutiny. If the subject is a product, it should at least match the German quality standards. They are great engineers and expect the same from their suppliers. It is important for them to be approached professionally, including an in-depth needs analyzes. As for the culture, we can expect and should be ready for nothing less than professionalism. High etiquette, being punctual and straight-to-the-point conversations. Great Britain First of all, we should carefully check with whom we will be dealing, because chances are they will not be British. Our partner can turn out to be Scottish or Irish – both would be offended to be called British. Moreover, due to a high number of immigrants, don’t be surprised if our partner will be of a representative of a different country. In such cases, it is a good idea to get to know both cultures, because we don’t know if they have already assimilates a British style, or still have their native one. The British don’t like to inform people a about their lack of decision making power, if that is their case. They easily make an impression of high authority, so it is usually difficult to tell their real plenipotentiary. Secondly, talks on interests are preceded by and followed by small talk, which is why being up to date with the news will be of benefit. The talks about interests are held in a high manner culture. The Italians Naturally informal, open and expressive. Firstly, they love to bargain, especially in the aspect of price. Therefore, be prepared with an adequate first proposition and carefully prepare to explain why the price is what it is. The Italians have a Mediterranean way of being. This means they have an easy-going approach to time and are usually late for meetings. Also, it happens that they reschedule or call off a meeting without informing the participants. They like to talk about their families and the politics, prior to talking about interests. Their emotions can be dynamic, as they go from being calm to loud and expressive in seconds. They tend to make decisions after a lengthy consideration or in the last moment. Variation is an appropriate way to sum-up the Italian style.

Negotiator / Knowledge base  / Ethics

Business ethics in negotiations

Let’s take a step into the world of fantasies. Imagine that you have just successfully completed negotiations on a transaction of furniture to a new office. The talks were lengthy and in order to get all you wanted, you lied several times. The terms are greatly in your favor thanks to dirty tactics. What is more, your partner still thinks they did a good job. Theoretically, a success! You can’t wait to tell your boss about the results. In the evening you celebrate with a drink and go to sleep. The following morning you turn on the TV and see in the news that yesterday’s negotiation process was made public. Audio and video of the whole negotiations is public. How do you feel? How does the society perceive you? What perspectives has your career? A word on ethics   Ethics is a system of values, rules and standards used by people of a certain profession. Analogically to law, ethics is susceptible of interpretation. Ethics is judged as something we either do or we do not – one can’t be ‘mostly ethical’. Below I wrote a few tips on how to act ethically and a few reasons for why acting unethically won’t pay. How to act ethically? Here are three things which will help us negotiate ethically. Firstly, do not do unto your partner what you would not do unto a friend. Seeing your partner as a friend is an easy and practical projection. Consider your own behavior during negotiations and ask yourself a question ‘would I do the same if it were my close friend talking here with me?’. Secondly, act accordingly with the win-win strategy, because it is principal-based. This makes it easier to distinguish what type of actions are ethical and therefore, it will be easier to keep to them. Thirdly, have a partnership attitude – treat your partner equally. Treat a person just as you would like to be treated. When talking about interests, theirs should be just as important as yours. When receiving a proposition, it should be just as carefully analyzed as if it was your own. Why unethical action is dangerous? It is best if ethics are a result of our moral values. However, if we have problem with that and at any time will feel tempted to act unethically, do remember about a few things. Firstly, our behavior between roles most often interweaves. If we start using unethical behavior during negotiations, it is almost certain that within a short time we’ll find ourselves being unethical towards our family and friends. Secondly, if we start acting unethically then after some time we will end up rationalizing our own behaviors, which will make us perceive them as good. They may also end up as a habit. Thirdly, reputation plays a very important role for a negotiator. A potential uncover of our unethical actions will be notably adverse to the trust people give us. The question Ethics in negotiations is sometimes not unambiguous. If we are uncertain of our actions, it is helpful to pose this question: What would it be, if all of my actions were made public?