Esta aula é parte da série: Developing Business skills. Feita para nível B2 em diante. Nela, vamos aprender a negociar um acordo complexo.
Warm up
How long does it take lose someone's attention?
What is the best way to start a presentation?
Preparing for the Negotiation
In the following video, Dr. Henschel explains the renowned 'Harvard Approach' to negotiation to enhance your skills and effectiveness in reaching mutually beneficial agreements
Get ready to lighten up with a hilarious take on negotiation and pitching from Adam Sandler's movie, "Just Go With It". This comedy sketch brilliantly breaks down complex and tense topics, making them accessible and entertaining.
The scene from "Just Go With It" effectively demonstrates the tactic of negotiating assertively to secure the best possible deal, emphasizing the importance of aiming high in negotiations, even if you'd be willing to accept less. This strategy can ensure that you leave the negotiating table with the best possible outcome.
In an insightful scene from "The Office," we see a prime example of how to negotiate by stepping into someone else's shoes. This segment skillfully demonstrates the importance of understanding the other person's perspective to negotiate effectively. Watch as the characters navigate their way through a negotiation, using empathy and strategic insight to achieve their goals, providing viewers with a valuable lesson in interpersonal dynamics.
Up next, we explore the art of negotiation with Kellogg Professor Jeanne Brett. In this informative segment, Professor Brett explains effective strategies to turn a 'no' into a 'yes.' Learn the techniques that can help both parties walk away satisfied, achieving what they both want and need from the negotiation. This is a must-watch for anyone looking to enhance their negotiation skills and ensure mutually beneficial outcomes.
In the previous video, Profesor Jeanne Brett explained the term BATNA while exemplifying a real life negotiation.
BATNA (Best Alternative to a Negotiated Agreement) is a critical concept in negotiation that represents the best course of action a party can take if negotiations fail. It essentially sets a baseline or a safety net that ensures a negotiator knows their options and limits, helping them to make informed decisions during the negotiation process.
ZOPA (Zone of Possible Agreement) refers to the range within which an agreement is acceptable to both negotiating parties. It marks the boundaries of the negotiation, within which both parties can potentially find common ground and reach a mutually satisfactory agreement.
Explore the concepts of BATNA and ZOPA in our upcoming video, "Negotiating Using BATNA and ZOPA" from Sales Training International. Learn how to identify and utilize the Zone of Possible Agreement (ZOPA) to reach effective outcomes in your negotiations. This video is a must-watch for anyone looking to enhance their negotiation skills through strategic preparation and understanding of key negotiation boundaries. Tune in for valuable insights!
In the following video, Nicholas Epley from Chicago Booth explain the concept of Anchoring. A technique that can be tremendouly useful in negotiations.
Phases of a negotiation:
Navigating complex negotiations, especially when presenting a solution and closing a deal, requires a structured approach. The key phases in this process include Building Rapport, Information Exchange (using SPIN methodology), Bargaining (using Oren Klaff techniques), Empathetical Bargaining (drawing from Michael Bosworth's principles), Dealing with Resistance, and Closing the Deal.
Building Rapport
Start by establishing rapport with the other party. Building a positive relationship early on sets the tone for the entire negotiation. Use this phase to create a connection, understand the other party's communication style, and set the stage for a collaborative dialogue.
In the video below, Robert Cialdini, author of the best-seller book Influence, shares his views on how to build rapport.
SPIN (Situation, Problem, Implication, Need-Payoff)
Begin by understanding the Situation through open-ended questions. Identify Problems that the other party faces. Explore the Implications of these problems to highlight their significance. Finally, discuss the Need-Payoff by showing how your proposal can address their needs and provide value.
Vulnerability
Use storytelling and emotional intelligence to create a negotiation environment that feels collaborative and mutually beneficial, thereby fostering trust and openness.
Dealing with Resistance
When encountering resistance, remain calm and patient. Use techniques such as reframing objections into opportunities for further discussion. Validate their concerns without conceding your position, and provide clear, logical responses that address their objections. This approach helps in reducing defensiveness and opening pathways for agreement.
Closing the Deal
Closing the deal involves summarizing the agreed terms and ensuring mutual understanding. Be clear and concise in recapping the key points. Confirm the agreement with formal documentation and discuss the implementation steps. Reinforce the benefits of the agreement and express optimism about the future collaboration to leave a positive final impression.
Simulation
In this simulation, there are two people. One will represent Soares Communication, a PR agency focused on big brazilian corporations. Soares Communication is part of the biggest brazilian communication conglomerate. This person will take the Role of a Director of the firm, who to grow withing the company must starting "making it rain", in other words, must bring in new clients. The PR Director identified that TerraCitrus is a potential prospectus, due to their size, the fact that there is no conflict of interest with other companies in the client portfolio.
The other person, will take the place of the CEO of TerraCitrus. TerraCitrus is a publicly traded company, headquartered in São Paulo, Brazil, with additional facilities in the United States, Argentina and Europe. It operates in the agriculture industry specializing in orange juice production. As the second-largest producer in the sector, TerraCitrus commands a substantial 25% share of the global market. The company employs 10,000 individuals and generates significant revenue, reflecting its strong market position, with annual earnings amounting to 5 billion BRL.
There is no winner or loser. The goal is to close the deal with the best possible outcome for you or not close the deal if it is not possible. Afterwards, both parts will reveal their hidden information and they will be able to analyze their performance and hopefully become better negotiators.
Below you should read only the information for your Character.
PR Director
Soares Communication, part of Brazil's largest communication conglomerate, is not just a PR agency but a powerhouse with extensive resources and a global network, setting it apart from boutique agencies. The firm employs over 1,000 communication professionals and has a proven track record of handling high-profile contracts, including with several Fortune 500 companies. This experience is particularly valuable for TerraCitrus, as Soares Communication has successfully implemented similar PR campaigns for other leaders in the agriculture sector, enhancing their global brand visibility and market dominance through strategic media placements and comprehensive market analytics.
Choosing Soares Communication allows TerraCitrus to leverage the agency's expertise in managing complex PR needs across a wide array of services from crisis management to media training for executives. For instance, Soares Communication has previously guided major agriculture companies through rebranding initiatives that emphasized sustainable practices, which not only improved their public image but also strengthened their stakeholder relationships. With these capabilities, Soares Communication can offer TerraCitrus tailored solutions to enhance its public image, manage industry-related crises, and strengthen relationships with international stakeholders including investors, governments, and environmental groups, all while promoting corporate responsibility and sustainability in line with TerraCitrus’s strategic goals.
CEO of TerraCitrus
You have a budget of R$120,000 per month for the service and R$ 150,000 per month for aditional spending such as: acquiring spaces in media, meetings, hiring aditional services.
The board does not particulartly want you to spend this money, as they do not think it is the most strategic spending for the company. But as a billion dollar company, it is also not that relevant for the company but can be life changing for your carrer.
You can even spend more, than the budget, since you are the biggest shareholders of the company, but you have to be strongly convinced you will make more money while also having personal benefits as launching your political carrer, and possibly running for Governor, what is in the back of your mind for some time now.
Some insightful questions may to help you:
"What are your most successful global PR campaigns, particularly in the agribusiness sector, and how have they impacted the client's market position?
How do you quantify the success of your PR activities, and can you provide specific metrics or KPIs from significant projects?
Considering our operations in both Brazil and the U.S., how would you tailor your strategies to address diverse market demands and regulatory environments?
Can you share your experience and strategy for managing crises, especially those that might affect our global operations, such as supply chain disruptions or environmental accusations?
What cutting-edge digital PR strategies would you implement to boost our brand as a leader in sustainable practices globally?
How will you ensure our company's executives become recognized thought leaders in the agribusiness and sustainability sectors?
What are the inherent risks of your proposed strategies, and how do you plan to mitigate them, particularly in high-stakes markets?
Could you break down your fee structure? Are there performance-based incentives or penalties involved?
What unique services or value does your firm offer that makes you stand out from competitors in the global market?
As our needs evolve, particularly with expansions or regulatory changes, how flexible are your services to adapt?"
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