0:02 the second stage of the negotiation
0:05 process is opening and it's the opening
0:08 that creates the joint basis for the
0:11 negotiation it settles some of the key
0:14 things that both parties need to know
0:17 before they can confidently move into
0:20 the bargaining stage in this video we'll
0:22 look at the seven things you need to
0:24 cover in the opening stage of your negotiations
0:42 there are seven things you need to make
0:45 sure get covered during the opening
0:47 stage of your negotiations and I'm gonna
0:49 present them in the order that I think
0:53 is ideal that's not to say it's always
0:55 going to be the right order for your
0:58 circumstances nor that you're always
1:00 going to be able to cover these seven
1:04 things in that precise order but there
1:06 is a lot of sense here in the sequence I
1:09 give which I'll try to hint at as we go
1:13 through the seven things number one is
1:16 to make a strong and positive first
1:18 impression my father always said you
1:20 only get one chance to make a first impression
1:21 impression
1:25 and if you're negotiating with partners
1:27 or parties with whom you've not
1:30 negotiated before you need to get that
1:33 first impression right and that's about
1:35 how you carry yourself as you meet them
1:38 it's about how you enter the room it's
1:42 about how you look how you act it's your
1:44 body language it's about your
1:47 preparedness for negotiation if you sit
1:50 down and you pull out of an old rucksack
1:54 Oh scruffy bundle of papers and a cube
1:57 pyro and you dump them on the desk then
1:59 that will create an impression and it
2:02 will be a very different impression to
2:04 the one if you have a smart bag and you
2:07 pull out of it a neat folder and a smart
2:11 notebook and a nice pin it doesn't have
2:13 to be an expensive pen it just has to be
2:16 something that looks well looked after
2:19 if you're dressed appropriately for the
2:21 circumstances then that will make a very
2:23 different oppression
2:25 so the impression you'll make if you've
2:28 turned up without giving you thoughts to
2:32 your appearance this is also about
2:38 observing the proper cultural rituals
2:40 and traditions of a negotiation which
2:42 will be different for one person and for
2:44 another person depending on where you
2:46 work and the kind of organization you
2:49 work in and the prevailing cultural
2:52 background of the country you're in
2:56 but for many business circumstances this
2:58 includes looking someone in the eye
3:02 shaking their hand firmly if you are
3:06 able to do all of that then as a minimum
3:09 of the other party will think ah here is
3:12 someone who is well prepared and able to
3:15 negotiate effectively and that's all you
3:18 want you don't really want to make a
3:20 first impression that says anything
3:23 other than that because chances are that
3:24 will say that this is someone who is not
3:27 well prepared or who I'm not comfortable
3:31 doing business with the second thing to
3:33 cover is building rapport because
3:36 negotiation is an interaction between
3:38 human beings it may be a one-to-one
3:41 negotiation or it may be a many-to-many
3:44 negotiation but the people in the room
3:47 need to get to know one another and this
3:49 means taking some time for a little bit
3:53 of light relationship building if you
3:56 are in control in any way of the
3:59 negotiation process then allow time to
4:02 get refreshments to chat to introduce
4:07 yourselves that way it's much harder for
4:11 the parties to be rude disrespectful or
4:12 to try to take advantage of one another
4:16 when they know each other as people
4:19 building rapport will also give you a
4:21 sense of how the other people in the
4:23 room operate so that you will be better
4:26 able to read the signals from their body
4:29 language from the tone of voice when it
4:31 comes to the negotiation proper the
4:35 bargaining stage once you've started to
4:36 build a rapport the next thing to do is
4:39 to use that as the basis to check the
4:42 authority that the other party has to
4:44 enter into an agreement or to proceed
4:47 towards an agreement what you don't want
4:50 to do is to make an assumption so that
4:52 if you make an agreement with the person
4:54 sitting across the table to you that
4:56 that agreement will stick because there
4:59 are many examples I could cite where you
5:01 think you made an agreement and then the
5:03 other person turns around and says I'm
5:05 just going to have to check that with my
5:08 boss which of course is opening the door
5:11 for their boss to come back and say nope
5:13 don't like it I need another concession
5:16 and by that time you are becoming
5:17 desperate and are more likely to make
5:20 the concession if you know at the outset
5:23 the level of authority that the person
5:26 you're dealing with has then you can
5:29 calibrate the concessions and the things
5:32 you ask for from them accordingly if
5:35 they have absolute authority then you
5:37 can negotiate with confidence if they
5:39 don't have that authority then you
5:42 always have to be mindful that someone
5:44 is sitting behind them with an agenda
5:47 that you may not be aware of once you
5:49 know the authority the other person has
5:53 you can agree the basis for the meeting
5:57 is this meeting about forming a final
5:58 agreement or moving towards the
6:01 agreement are you working on the whole
6:04 scope of the negotiation or a narrow
6:06 component of it and what is the process
6:08 you're going to be using for coming to decision
6:10 decision
6:13 and that leads me to a discussion about
6:16 admin and ground rules how are you going
6:19 to operate within the meeting room are
6:21 some things allowed are some things not
6:24 allowed what are the timings what's the
6:26 process for requesting a timeout or
6:29 stepping away or taking a break how are
6:32 notes going to be recorded is one person
6:34 going to record notes for both parties
6:36 each party going to record their own
6:39 notes how are you going to compare the
6:42 notes you have with one another to make
6:45 sure that what you think you've agreed
6:48 and what they think they've agreed match
6:52 and an important part of this might be
6:54 an agenda what's the sequence of
6:56 conversations you're going to have and
6:58 the approximate timings that are going
7:02 to go with that sequence of discussions
7:06 now we're ready for items 6 & 7 and I'm
7:08 going to present these in the order that
7:11 you should usually try to cover them off
7:16 in so at number 6 you want to try to get
7:20 a sense of their outcome what is it
7:21 they're hoping to achieve what for them
7:25 marks a good deal ideally you want them
7:29 to put their position on the table and
7:31 you want them to do that before you put
7:34 your position your outcome on the table
7:38 because if their outcome is more
7:40 favorable to you than you had expected
7:43 in your planning process then you may
7:46 want to revise the outcome you present
7:51 them with to be more assertive so 6 is
7:53 to get their outcome and 7 is to offer
7:56 your outcome put your position on the
8:01 table however this is going to be tricky
8:03 because they will be thinking exactly
8:05 the same they will want to get your
8:09 outcome before they give you theirs so
8:11 there may be some jockeying for position
8:14 you may have pragmatically to accept
8:16 that you put your outcome on the table
8:19 first often there's an expectation that
8:21 it is the seller who will go first in
8:23 putting their position
8:26 it's in the meeting now there won't
8:29 always be a party that is notionally the
8:31 seller but if there is if then the
8:33 expectation is that they will have some
8:35 form of schedule of rates or price lists
8:39 even if it's not published so if you're
8:40 in that position you may have to
8:43 conceive that ground if the other party
8:46 is the seller then you have every right
8:48 to expect that they will state their
8:51 outcome their price their conditions
8:57 their terms at the outset why therefore
9:00 would you ever want to put your position
9:02 and before hearing the other party's
9:05 position well the answer is if your
9:08 position is likely to Surprise them it
9:09 is likely to be more extreme than
9:12 they're expecting either as a buyer you
9:15 want something for a price that is lower
9:18 than you know is their standard rate or
9:22 as a seller if you're going to be asking
9:24 for a price that is higher than the
9:27 buyer might expect and the reason for
9:29 this is because of the anchoring effect
9:33 if you start a negotiation based on the
9:37 expectation the statement of a standard
9:40 expected set of rates set of numbers set
9:42 of conditions and terms then the whole
9:44 negotiation is about how are we going to
9:47 move in one direction or another from
9:49 that point and that point is sometimes
9:54 known as the anchor if therefore you
9:57 need to cast an anchor the valleys going
9:59 to be surprising to the other party best
10:01 to do it as soon as possible because
10:04 then the discussions about how to move
10:06 away from that anchor the if that anchor
10:09 is a long way from their expectation
10:11 then you're better moving away from the
10:13 anchor that you are from their
10:17 expectation because every piece of
10:19 movement is going to be difficult and
10:21 therefore you are more likely to get a
10:25 result that is closer to the anchor also
10:27 it means that if the other party hears
10:30 your position and thinks there is no way
10:32 I can get anywhere near that you can
10:35 save yourself a lot of time negotiating
10:36 if an agree
10:41 isn't going to be possible so there you
10:43 have it seven things you need to cover
10:46 in the opening stage of a negotiation
10:49 make sure you cover them all and ideally
10:51 try to cover them in a sequence that is
10:53 as close as possible to the one I've set
10:56 out and you'll be ready to move to the
10:59 bargaining stage and with confidence
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