The Body

Defining an Organization

N.B. Synopsis of Metrics & Matrix© Introduction to Organization Behavior- Copyrights Eyad Harfoush- 2005

Definition

An organization is the set of harmonious groups of people, who work interdependently to achieve common goals, in a framework of well structured patterns of interaction & coordinated tasks.

Notes on Organization Definition

• SET + INTERDEPENDENTLY

A diversified workforce is essential to build an organization operating in a departmentalized fashion, whether according to functions, business units and/or geographical territories. As absolute dependence or independence in business world usually brings fragile outcomes, interdependency between teams and individuals are essential to capitalize on diversity

• HARMONIUS + COMMON GOALS

Diversity & heterogeneity of teams will enrich the harmony only under influence of common goals. On the other hand, conflict of interest essentially results in oddness of behavior.

• STRUCTURED PATTERNS OF INTERACTION

Clear organizational outline, with a reasonable degrees of cross-functionality is a cornerstone in building a healthy interaction between individuals and workforce groups inside an organization.

• COORDINATED TASKS

Dynamic interaction and coordination between team members as well as cross-functional teams is a positive sign. Yet, the classical managerial role in tasks coordination on all levels, remains as crucial in today's world as it has always been.

Copyrights© 2008. Eyad Harfoush

Who Is Mr. Perfect?

10 of 10 Role of Mr. Right Negotiator
N.B. Synopsis of Mind Battling© An Animal Health focused Negotiation Skills- Copyrights Eyad Harfoush- 2007

1. Presentable
2. Fluent & Expressive
3. Attractive Character
4. Posses initiative sensitivity in an intercultural situation.
5. High acceptance of diversity
6. Self confident
7. Absolutely Loyal
8. Flexible
9. Sociable
10. Personally stable

Ideal Negotiation Team

1. Spokesperson
2. Recorder
3. Analyst

Copyrights© 2006. Eyad Harfoush

Watch Your Head

Common Negotiation Traps
N.B. Synopsis of Mind Battling© An Animal Health focused Negotiation Skills- Copyrights Eyad Harfoush- 2007

Deliberate Deception

• When your counterpart tries to give wrong inputs, aiming to drift the discussions and attain conclusions based on it.
• Always show intention to verify inputs, and always do so. This simple and direct principle saves you from being cheated.
• Arrange matters so that trust isn't necessary.
• Put in provisions to protect yourself that can't be offensive unless the other side is deceiving you.

Ambiguous Authority

• When the other party delegates whoever is not assigned officially to decide on the matter of negotiation.
• Simply ask for “Power of Attorney” statement or what can replace it and verify the delegate is authorized and whatever agreed-on with him shall be granted

Psychological Warfare

• Are they intentionally making you uncomfortable? criticizing your clothing or appearance, making you wait, interrupt negotiations and making you wait again, making you repeat yourself, implying you are stupid indirectly…etc.
• If circumstances are prejudicial, say so (that may be enough). If necessary, first negotiate a better negotiating context.

Dubious Intentions

• Whenever you have doubts about the other party’s abidance by the outcomes of a negotiation, it is better to go for a mediation or arbitration whenever possible.
• If not possible, try to increase the size of social, ethical, and legal liabilities on them in case of breaching and agreement, e.g. industry partners to witness and sign agreement…etc.

Copyrights© 2006. Eyad Harfoush

Winning Tips

For Your Coming Negotiation Combat
N.B. Synopsis of Mind Battling© An Animal Health focused Negotiation Skills- Copyrights Eyad Harfoush- 2007

Negotiation Approaches

Advocate's Approach

• Also known as “Positional Bargaining” approach or “win-loose” approach, wherein skilled negotiator usually serves as advocate for one party and attempts to obtain the most favorable outcomes possible for his own party.
• In this process the negotiator attempts to determine the maximum outcomes the other party is willing to give, or the minimum they would accept to get à adjusts his own demands accordingly.
• A "successful" negotiation is when the negotiator is able to obtain all or most of the outcomes their party desires, but without driving the other party to permanently break off negotiations, unless the BATNA is acceptable.
• In one view, it is perceived as a traditional negotiation, sometimes called “win-lose” because of the assumption of a fixed "pie", wherein one party’s gain results in other party’s loss.
• Another view is that in negotiation both parties are equals by definition and that the best possible outcome is reached when both parties agree to it. If the two parties were not equals, the stronger party would dictate the outcome and there would be no negotiation at all.

Fair Judge Approach

• Also called “Principled Negotiation”, “integrative bargaining” or “Win-Win” Approach, Here, “everybody wins” philosophy assures that all parties benefit from the negotiation process which also produces more successful outcomes than the adversarial “winner takes all” approach.
• Looking behind positions for interests and needs of each party. Also inventing options before deciding
• Considered in general more trendy in all negotiation aspects specially in commercial negotiation.

Comparing Negotiation Approaches

Integrative Bargaining in Sales

Integrative Bargaining in Animal Health

Tactics & Tips

1. Decline to speak first: who speaks second usually has a better opportunity to analyze his counterpart
2. Volunteering to keep the minutes of the meeting: When you do so, you will have a better opportunity to phrase the minutes, and better window to analyze and assess negotiation pathway.
3. Stress on time-frames: Aiming to transmit sense of urgency and a feeling of punctuality to your counterpart.
4. Good guy / bad guy approach: Here, the role of the “bad guy”, or tough negotiator is to lower counterpart’s expectations below required. Then when the “good guy” offers the demanded solution, it gets more acceptance.
5. Claim limited authority: Never be shy saying “Sorry, but I really can not have the rights to do this, I am not authorized to go down to this level”. Even the president can say “I am not authorized to accept this, it will deeply frustrate the shareholders”
6. Caucusing: If you needed to re-align your team talks and perspectives, or to update about an analysis you made, you can ask for a caucusing moments with your team.
7. Walking out: If you needed to buy a moment to think a point over, you can excuse to restroom or to smoke a cigarette.
8. Concession patterns: Whenever you feel cornerized and in a very bad negotiation positions. You can postpone reaching a consensus, or decide to focus on decreasing losses other than maximizing benefits.
9. Fait accompli : “What is done is done, let us face the current situation”. You might use this approach if you do not wish to dig in the past and relate consequences to it.
10. Love it or Leave it : When you hold a very potent position, and you are not willing to create a win-win for whatever reason. You can as a last option use the “take it or leave it” approach. Not as is, but to give the meaning in a descent way that allows your counterpart a surrender with dignity.

Copyrights© 2006. Eyad Harfoush

The Game, Step by Step

Six Stages of Negotiation

N.B. Synopsis of Mind Battling© An Animal Health focused Negotiation Skills- Copyrights Eyad Harfoush- 2007

1- Planning and Preparing

• Determine what you must have and what you are willing to give (Bargaining Chips).
• Gather facts about the other party, learn about his negotiating style.
• Prepare alternatives proposals and establish BATNA (the Best Alternative to a Negotiated Agreement).
• Estimate the other party's needs, bargaining chips and BATNA. The most ideal case is to get as much as you can.

2- Tone Setting

• The initial speeches of the figureheads or the team leaders are usually political words that should reflect willingness for cooperation and settlement attainment. Nevertheless, sometimes the figurehead might need a shock approach in his intro as he opens up the issue of dispute.
• The overall tone of negotiation is usually kept by the more qualified and talented team among disputants.
• Your opponent might try to provoke you by different means, if he succeeded in this, you have already lost the game before it starts.
• Keep the conversation tone as quite as possible.
• Get the tone higher only when things are going in the opposite direction against your BATNA attainment

3- Needs Exploration

• Actively listen for facts and reasons behind other party’s position and explore his underlying needs. That is not necessarily aligned with his declared needs.
• If conflict exists, try to develop creative alternatives.
• In a difficult situation, don't say anything, simply take time out. When we say nothing we give nothing away.
• If you had the impression that your opponent is indifferent about the direction of negotiation, or giving-up his chips very easily, do not go very fast. You must reconsider his degree of commitment to the looked after agreement.
• Frequently, self actualization needs and esteem needs of the negotiator might guide his style and flexibility during negotiation. Remember, everyone wants to get some good news for his superiors and how clever he was.

4- Selecting, Refining & Crafting

• It is a step in which both parties present the starting proposal. Everyone at this stage is voicing the ideal solutions to himself. Some negotiators prefers to go beyond ideal as initial exaggeration to lower opponent expectations.
• Both parties should listen to each other proposals in an organized fashion. If you had any points against the proposal of your opponent, write it down to tackle during your turn.
• Detail your proposal in an organized fashion. Give short and relevant introduction that facilitates comprehending your ideas. Then, speak your points as a list, stressing on the no. “I am afraid I have three points of major fear here, these four points are; No. 1……”. Stressing no. of points keeps audience attention for longer period until he covers the initially expressed no.
• Do not get in details and loose the main track. Try to finish each point in not more than 2-3 minutes
• Prepare your statements in mind before voicing it. Ensure choosing inspiring words that creates the image of your issues in the mind of your opponents. Have a faith in what you say, so that you can transmit this faith to others.
• Start with your pre-requests, follow it with what is highly urging and pressuring. Then in a slightly quieter tone express your minors.
• Usually this stage is repeated several times, with each team showing some flexibility whenever possible tell an agreement seems attainable.

5- Recapping an Agreement

• This stage starts when the shadow of a consensus starts to appear
• Reaching to here, both parties formalize agreement in a written contract , memorandum of understanding or letter of intent.
• Agreements with remarkable importance undergoes process of legalization and notarization before considered final documents.

6- Reviewing the Negotiation
Reviewing the negotiation helps one to learn the lessons on how to achieve a better outcome. Therefore, one should take the time to review each element and ask oneself, "what went well?" and "what could be improved next time“. This can be done in a solo analysis or within the team who attended the negotiations, which gives better analysis based on group inputs from different angels.

Copyrights© 2006. Eyad Harfoush

Negotiation as Fact of Life

N.B. Synopsis of Mind Battling© An Animal Health focused Negotiation Skills- Copyrights Eyad Harfoush- 2007

Negotiation of Political Disputes

• In international political issues, negotiation does exist besides mediation, arbitration and military acts to resolve disputes. Political negotiations are not necessarily collaborative.
• Political negotiation has a prominent role of negotiators’ charisma and hallo effect compared to business.
• Psychological warfare has a potential impact and prominent role compared to business.

Negotiation in Personal Life

• From marriage arrangements, to housing and car leasing, to family and friends issues & debates, we all live in an ongoing negotiations
• Personal negotiation is less formal and more intuitive compared to business negotiations.

Tenders, Open-Bids & Auctions

• Special kind of negotiation that relies mainly on competitors trends’ extrapolation and momentary situation assessment
• Does not follow regular negotiation process steps.

Negotiation in Salesman Life

• Every buyer wants a product of the highest quality, at the lowest price, delivered yesterday and packed with an indefinite credit term !
• Every seller wants to sell his product at the highest possible price, next year delivery on cash-in-advance basis !
• Negotiation role is to reach a modesty consensus.

Negotiation in Labor Market

• As a professional businessman, you will always need to negotiate your salary, bonus, allowances, merits and increases…etc.
• The higher your competencies, skills and track record, the better your BATNA you can develop and attain.

Yet, The Room for Negotiation is Highly Variable

Copyrights© 2006. Eyad Harfoush

Defining Negotiation

N.B. Synopsis of Mind Battling© An Animal Health focused Negotiation Skills- Copyrights Eyad Harfoush- 2007

The Art of Life

We usually experience numerous negotiation transactions during our daily life, while in most of times it is a casual negotiation that we conduct unnoticeably, sometimes we face a situation wherein negotiation process is linked to a vital outcomes that will affect our lives greatly. Herein we need to go a step beyond our intuition and use the harvest of human experience in negotiations in a diversified array of fields. This is simply what negotiation skills is all about. Knowing that in business life, every negotiation is vital a way or another, this training module is developed with a special concern to animal health industry. Aiming to equip animal healthcare professionals with a concentrated, yet efficient knowledge and skills in this vital direction.

Defining Negotiation
Negotiation is an interaction of influences, where interested parties resolve disputes, agree upon courses of action, bargain for advantage, and/or attempt to craft outcomes which serve their mutual interests.

Negotiation in Business Environment
Your negotiation in a business environment is essentially guided and influenced by many spheres of conditions and rules. These can be summarized as:

1. Your local laws, social norms and governmental practices
2. Structure of the industry wherein you operate
3. Your supply chain and intermediaries circuit.
4. Your competition style and negotiation norms
5. Nature of your customers
6. Your company roles, needs, status and norms

These all-together form your negotiation environs.

To Negotiate, to Influence or to Decide

Negotiation Skills
Negotiation skills are the set of skills qualifying for better comprehension of negotiations’ process, behaviors and substances. Through which a negotiator learn how to set and attain the best alternative to a negotiated agreement (BATNA)

Negotiation Process
Negotiation process refers to how the parties negotiate;

1. The context of negotiation
2. The parties to negotiation
3. The tactics adopted.
4. The sequence and stages of negotiation

Negotiation Behavior
Negotiation behavior refers to the human element of negotiation, including;

1. Relationship among concerned parties
2. Communications means and contents.
3. Negotiators’ styles.
4. Level of moral and ethical commitments.

Negotiation Substance
Negotiation substance refers to the subject of negotiation;

1. The agenda
2. Negotiators’ influential positions
3. Interests of each party.
4. Options to resolution attainment
5. Agreement and consensus attained.

Disambiguation






Negotiation in Animal Health Business

• Animal health in its production animals’ side, is an industrial market, or business to business market in a sense. Wherein your customer is a trained negotiator by practice if not by science.
• The negotiation power of intermediaries dramatically increases when you do not possess the right access to the industry.
• Talking about Egyptian market, the expected integration, specially in poultry sector, will surely affect the BATNA of your customers positively by increasing his volume and share in total production. Price pressures are much expected. You only can in such situation improve your BATNA by improving your services and decreasing your back-of-office costs. Thence you can compete in such a tough market.

Copyrights© 2006. Eyad Harfoush