The Art of Negotiation Workshop Home of unlimited

The Art of Negotiation Workshop Home of unlimited opportunity.

Online Course By show of hands, who has completed the online Art of Negotiation course? Home of unlimited opportunity.

Online Course Think back to what Wendy, Larry and Mr. Song went through in their negotiations. Today it’s your turn to practice your negotiating skills. Home of unlimited opportunity.

The Art of Negotiation Course and Workshop The content for the Art of Negotiation came from: • Strong negotiators in our company including RVPs, Managers and Sales Associates • The book, “Getting to Yes: Negotiating Agreement Without Giving In” by Roger Fisher and William Ury Home of unlimited opportunity.

Review of Online Course First let’s review the negotiating stages and principles you learned in the online course. • Break into groups of 3 -4 and choose a group leader • Here’s a Negotiating Quick Reference Card for each of you • In a moment I’ll give you a handout with instructions for your group activity • You’ll have 5 minutes to read the instructions and prepare then 3 minutes to present • Write your ideas on the flipchart paper on the wall Continued on next slide Home of unlimited opportunity.

Review of Online Course • I’m assigning each group 1 -2 negotiating stages and principles from the list below • Here’s your handout with instructions; take 5 minutes to read it and work on your assignment Stages: 1. Prepare 2. Open 3. Negotiate 4. Close Assign all stages and principles; move to next slide after 5 minutes Principles: • Focus on interests, not positions • Use objective criteria for establishing an agreement • Be soft on the people, hard on the problem Home of unlimited opportunity.

Review of Online Course Let’s start with the group that had the first stage in negotiating, Preparing. Group leader…You were assigned 2 steps in Preparing. Tell us what you’d do for each of those steps to prepare. Move to next slide when group presents Home of unlimited opportunity.

Review of Online Course Tell us what you would do for these 2 steps: • Gather information about: – external factors – party you represent – other party • • • Determine the outcomes you want to achieve Determine a walk-away alternative Consider the interests and needs of the other party Look for ways to improve your leverage Plan your approach Group has 3 minutes to present Home of unlimited opportunity.

Review of Online Course Let’s go to the group that had the second stage, Opening. Group leader…You were assigned 2 steps in Opening. Tell us what you’d do in each step to open the discussion. Move to next slide when group presents Home of unlimited opportunity.

Review of Online Course Opening: • Establish rapport • Share your agenda • Create an emotional connection between the two parties Group has 3 minutes to present Home of unlimited opportunity.

Review of Online Course Let’s go to the group that had the third stage, Negotiating. Group leader…You were asked to create 3 probing questions for Negotiating. Tell us your questions. Move to next slide when group presents Home of unlimited opportunity.

Review of Online Course Negotiating: • Present your proposal • Listen to understand – Listen – Reflect – Probe • Acknowledge and address objections Group has 3 minutes to present Home of unlimited opportunity.

Objection Handling Review 1. 2. 3. 4. 5. 6. Listen Restate as a question Cushion, relate and empathize Probe and isolate the objection Present a solution Close, ask for agreement Home of unlimited opportunity.

Objection Resolving Exercise I love the house but want to wait and see if the price drops I don’t want to hold Open Houses I am in insulted by that offer Your fee is what? What are some other common objections your are challenged with in today’s market? MODEL AND FOLLOW THE STEPS 1. Listen 2. Restate as a question 3. Cushion, relate and empathize 4. Probe and isolate the objection 5. Present a solution 6. Close, ask for agreement Home of unlimited opportunity.

Review of Online Course Without looking at the Quick Reference Cards, who can explain what each of the following terms mean? • Reflect – Stating your brief understanding of the other person’s feelings or thoughts • Probe – Asking questions to ensure there are no further underlying concerns or needs Home of unlimited opportunity.

Review of Online Course Who can explain what each of the following terms mean? • Acknowledge – Let the other party know you understand their concern by acknowledging it. Use phrases like, “I understand that you’re concerned about that – I’d feel the same way. ” • Address – Show objective data to address their objection Home of unlimited opportunity.

Review of Online Course Let’s go to the group that had the last stage, Closing. Group leader…You were told that the negotiation was not successful and you couldn’t come to agreement. How would you reinforce the value of the relationship with Mr. Jones and with Sam? Move to next slide when group presents Home of unlimited opportunity.

Review of Online Course Closing: • Structure the agreement • Wrap up the discussion • Reinforce the value of the relationship Group has 3 minutes to present Home of unlimited opportunity.

Review of Online Course Let’s go to the group that had the first negotiating principle, focus on interests, not positions. Group leader…You were told that Mr. Jones was extremely offended by the low offer. Tell us what you would do to apply this principle. Move to next slide when group presents Home of unlimited opportunity.

Review of Online Course Focus in interests, not positions: • Focus on why someone wants something, not what they want • Appeal to their underlying needs and desires, not to a position that may not have justification Group has 3 minutes to present Home of unlimited opportunity.

Review of Online Course Let’s go to the group that had the second negotiating principle, use objective criteria for establishing an agreement. Group leader…You were told that Mr. Jones was extremely offended by the low offer. Tell us what you would do to apply this principle. Move to next slide when group presents Home of unlimited opportunity.

Review of Online Course Using objective criteria for establishing an agreement: • Use hard facts to create an agreement that appeals to the other party’s interests • Discuss objective standards for settling a problem rather than forcing each other to back down Group has 3 minutes to present Home of unlimited opportunity.

Review of Online Course Let’s go to the group that had the last negotiating principle, be soft on the people and hard on the problem. Group leader…You were told that Mr. Jones was extremely offended by the low offer. Tell us what you would do to apply this principle. Move to next slide when group presents Home of unlimited opportunity.

Review of Online Course Be soft on the people and hard on the problem: • Maintain, or even improve, relationships • Focus on the issue, not on the emotion Group has 3 minutes to present Home of unlimited opportunity.

It’s Time to Practice: Round 1 Now it’s time to try negotiating. Let’s start with a non-real estate negotiation, called the Ugli Orange Role Play. For this practice, we’re only going to focus on how well you can apply the three principles: • Focus on interests (why), not positions (what) • Use objective criteria for establishing an agreement • Be soft on the people and hard on the problem Continued on next slide Home of unlimited opportunity.

It’s Time to Practice: Round 1 • Break into groups of 3 • Decide who will play each role: Dr. Roland, Dr. Jones, and Observer Continued on next slide Home of unlimited opportunity.

It’s Time to Practice: Round 1 In groups of three, Dr. Roland Dr. Jones will be negotiating while the Observer listens in. • Each negotiator will read their role and use the Strategy Planner to plan for the negotiation. • The Observer will read both negotiators’ roles and review questions they’ll answer to record how well the negotiators applied the three principles. Continued on next slide Home of unlimited opportunity.

Observer’s Role § Read both roles carefully – don’t reveal what you’ve read § Review the questions you’ll be answering § Observe Dr. Roland Dr. Jones as they negotiate § Listen to how well they apply the negotiating principles § Take thoughtful notes as you answer each question Move to the next slide Home of unlimited opportunity.

It’s Time To Practice: Round 1 I’ll hand out your roles in a moment. You’ll have 10 minutes to read through your role and prepare for the negotiation. When I call “time, ” you’ll have 10 minutes to negotiate. I’ll put the negotiating principles you should follow on the screen. I’ll let you know when 10 minutes are up. Continued on next slide Home of unlimited opportunity.

It’s Time to Practice: Round 1 • By show of hands, who will play Dr. Roland? Here’s your packet - don’t share it • By show of hands, who will play Dr. Jones? Here’s your packet - don’t share it • By show of hands, who will play the Observer? Here’s your packet – don’t share it Move to next slide after 10 minutes and tell groups to start the negotiation Home of unlimited opportunity.

Conducting The Negotiation Guiding Principles: • Focus on interests (why), not positions (what) • Use objective criteria for establishing an agreement • Be soft on the people and hard on the problem After 10 minutes stop the negotiation and move to the next slide Home of unlimited opportunity.

Large Group Review As a large group: • Who had a successful negotiation? Remember, a successful negotiation is one where there is a mutually satisfactory solution, where both parties are happy. • Did each party uncover the other’s underlying need? • Did the parties trust each other? • Which principle was critical to the success of the negotiation? Stop after 3 minutes Home of unlimited opportunity.

Wrapping Up Round #1 • Dr. Roland Dr. Jones did have the ability to reach a mutually satisfactory solution - each needed different parts of the oranges (rind vs. juice) to be able to have their needs met. • Had they focused on each others’ needs rather than on each others’ positions, both could have gotten everything they needed. • Those negotiators who did not reveal their needs probably did not find the optimal solution. Home of unlimited opportunity.

It’s Time to Practice: Round 2 Now it’s time to try a real estate negotiation. This time, we’re going focus on how well you can follow the Opening, Negotiating, Closing stages and apply the principles. Continued on next slide Home of unlimited opportunity.

It’s Time to Practice: Round 2 • Break into the same groups of 3 • Decide who will play each role: Weichert Associate, Other Party and Observer • Observer from last round should be Weichert Associate or Other Party this time Continued on next slide Home of unlimited opportunity.

It’s Time to Practice: Round 2 • The Weichert Associate will read his/her role and use the Strategy Planner to plan for the negotiation. Note your goal and the tip at the bottom of the page. • The Other Party will read his/her role and prepare to give the Weichert Associate a realistic negotiation practice. • The Observer will read both negotiators’ roles and review a checklist they’ll use to record how well the Weichert Associate did. Once the negotiation is over, Observers will give the Weichert Associates feedback on how they did. Continued on next slide Home of unlimited opportunity.

Observer’s Role § Your role is to observe and listen as the Weichert Associate negotiates – you’re the coach § Use the checklist § Take thoughtful notes § Give the Weichert Associate their completed checklist after you conduct the feedback session Move to the next slide Home of unlimited opportunity.

It’s Time to Practice: Round 2 I’ll hand out your roles in a moment. You’ll have 10 minutes to read through your role and prepare. When I call “time, ” you’ll have 10 minutes to negotiate. I’ll put the steps you should follow on the screen. I’ll let you know when 10 minutes are up. Continued on next slide Home of unlimited opportunity.

It’s Time to Practice: Round 2 • By show of hands, who will play the Weichert Associate? Here’s your packet – don’t share it • By show of hands, who will play the Other Party? Here’s your packet – don’t share it • By show of hands, who will play the Observer? Here’s your packet – don’t share it Move to next slide after 10 minutes and tell groups to start the negotiation Home of unlimited opportunity.

Conducting the Negotiation Opening • Establish rapport • Share your agenda • Create emotional connection between the two parties Negotiating • Present your proposal • Listen to understand – listen, reflect and probe • Acknowledge and address concerns Closing • Structure an agreement • Wrap up the discussion • Reinforce the value of the relationship After 10 minutes stop the negotiation and move to the next slide Home of unlimited opportunity.

Small Group Feedback Discussion • Start with the Weichert Associate: What do you think • Then ask the Other Party: What worked well for you? • Observer: Review the checklist with the Weichert you did well? What would you consider for next time? What would you suggest for next time? Associate. What did the s/he do well? What should s/he consider for next time? How well did s/he follow the Open/Negotiate/Close flow and apply the principles? Stop after 3 minutes Home of unlimited opportunity.

Large Group Review As a large group: • Which principle was critical to the success of the negotiation? • What did the Weichert Associates do to apply that principle? • Was the Weichert Associate successful? Remember, success is achieving a mutually satisfactory solution. • Weichert Associates: What was challenging? Stop after 3 minutes Home of unlimited opportunity.

Let’s Review What does this exercise teach us about effective negotiations? • You need to collaborate • You need to ask questions and listen to find areas of mutual interest • While it’s important to know your own needs, it’s almost more important to the success of the negotiation to focus on the needs of the other party Home of unlimited opportunity.

Want to hone your skills further? To brush up on your skills, take the online Art of Negotiation course again. It’s even better the second time around! Want even more practice? Come to our next Art of Negotiation Workshop. Home of unlimited opportunity.

Thank you for your active participation today. Remember…practice makes perfect. Good luck! Home of unlimited opportunity.