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MONTRÉAL OTTAWA TORONTO CALGARY VANCOUVER NEW YORK CHICAGO LONDRES BEIJING blakes.com
Blake, Cassels & Graydon S.E.N.C.R.L./s.r.l.
Habiletés de négociation : Trucs et astuces pourmener des négociations commerciales efficaces
Séminaire présenté par l’ACC Canada, Section du Québecet Blake, Cassels & Graydon S.E.N.C.R.L./s.r.l.
Negotiation Skills: Tips and Tricks for ConductingEffective Commercial Negotiations
Presented by ACC Canada, Québec Chapter and Blake, Cassels & Graydon LLP
Le mercredi 9 décembre 2009Wednesday, December 9, 2009
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Understand Your Goals
• Long-term relationship vs. Short-term gain
• Creating value vs. Claiming value
• Cooperation vs. Competition
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Negotiation Strategies (theory)
COOPERATIVE• Principled
• Interest-based
AGGRESSIVE• Competitive• Positional
vs.
• Not mutually exclusive strategies
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The “Aggressive” Strategy
• Being perceived as rigid or unreasonable
• Conflict escalation or deadlock
• No mutual gains or long-term relationship building
• Being perceived as assertive and confident
• Direct and efficient communication
• Short-term gain
CONSPROS
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The “Aggressive” Strategy (continued)
• When is it useful? (examples)
– Maintaining your absolute bottom-line
– One-off contracts
– Hostile take-over situations
– Some litigation
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The “Cooperative” Strategy
• Perceived as timid
• Risk of losing control to more aggressive parties
• Sacrifice profit to keep others satisfied
• Perceived as constructive, team player
• Conflict resolution
• Mutual gains and long-term relationship building
CONSPROS
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The “Cooperative” Strategy (continued)
• When is it useful? (examples)
– Negotiations with unions and other employees
– Negotiations with long-standing suppliers, service providers, distributors or other partners
– Outsourcing arrangements
– Negotiations with government bodies
– Settlement of disputes to avoid litigation
– Whenever the preservation of goodwill or reputation is important
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Some Practical Tips for Effective Negotiation
• Listen and ask questions
– Get the other party talking
– Ask short, purposeful and broad questions
– Gather information
– Avoid the temptation to interrupt
– Let the other party exhaust themselves
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Some Practical Tips for Effective Negotiation (continued)
• Repeat and paraphrase– Confirms that you have a complete and accurate
understanding of the other party’s position– Gives the speaker the opportunity to modify
his/her point (and you can lead them to do so)
• Use silence to your advantage
• Use of body language
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Some Practical Tips for Effective Negotiation (continued)
• Know your personality type
– If you are extroverted, make sure to listen to the other party’s perspective
– If you are introverted, make sure to communicate your point fully
• Know your strengths and weaknesses
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The “Starbucks Effect”• Feast or famine
• Room positioning
• Senior / Junior effect
• Length of day
• Use your adversaries’ timing constraints to your advantage
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Achieving the Optimal Outcome
Win/Win
(Positive-sum game)
Win/Lose
(Zero-sum game)
Lose/Lose
(Negative-sum game)
• Not mutually exclusive– On one point, the outcome can be a Win/Lose,
whereas another can be a Win/Win.– You may have to sacrifice on one point, to win on
another.
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Final Thoughts
• Your best position is when you are able to walk away
• Always be polite and respectful
• Never lose your composure
• Never appear too happy with the result
Tips for Conducting Effective Commercial Negotiations
Habiletés de Négociation: Trucs et Astuces Pour Mener des Négociations
Commerciales Efficaces
Présentation de / Presented by Jacques Paré
SWOT ANALYSIS
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The market situation analysis’ findings are summarized in terms of strengths, weaknesses, opportunities and threats--also known as SWOT.
External EnvironmentPolitical factorsEconomic factorsSocial factorsRegulatory factorsMarket factorsCompetitive factorsInternal Environment
• Financial resources• Staffing resources• Facilities &Equipment
Environmental Scanning
Analysis
SWOTSummary
Strengths (+)
Weaknesses (-)
Opportunities (+)
Threats (-)
Relative advantages of the corporation. Must be exploited and built upon.
Relative weaknesses of the corporation. Must be corrected or compensated for in another way.
Situation in the marketplace (external to the corporation) that should be exploited
Situation in the marketplace (external to the corporation) that should be countered.
Threats
Opportunities
Weaknesses
Strenghts
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