Enhanced Negotiation Role Plays The motif suggests two teams of negotiators (dark blocks) using a simulation model to investigate their proposals with the coloured circles suggesting the interaction between the teams of negotiators.

There are two problems with negotiation role plays. First, commonly, both sides invent constraints to ensure that they win and the other group loses. Secondly, the financial aspects are simplistic. We have overcome these problems by providing simulation models separately for the seller and buyers. These prevent sides inventing constraints and ensure that the financial aspects are suitably rich.

The series consists of three negotiations each addressing different industrial situations thus:

• COMMERCIAL NEGOTIATION - negotiation between a retailer and a brewer
• CONSTRUCTIVE NEGOTIATION - negotiation between a construction company and local government
• SALES NEGOTIATION - negotiation between a manufacturer and a material supplier

But, our experience designing and using these simulations since 1983 means we can customise or create similar negotiations to meet your specific needs remarkably quickly. For example, the most recent negotiation role-play (Constructive Negotiation) only took a few days to create.

SUMMARY

KEY LEARNING: Each negotiation covers:

• NEGOTIATION BEHAVIOUR
• FINANCIAL IMPLICATIONS
• TEAM MANAGEMENT
• NEGOTIATION STRATEGY
• TRADE-OFFS

DURATION: Approximately one day.

TARGET AUDIENCE: The negotiations are designed for senior sales staff, purchasing staff and management.

METHOD: After a short briefing the training group is divided into pairs of Buyers and Sellers each of three to five participants. These teams consider the problem and progress through the following stages:

1. PLANNING
2. INFORMATION GATHERING
3. PREPARATION OF INITIAL PROPOSAL
4. INITIAL NEGOTIATION
5. MODIFICATION OF PROPOSAL
6. FINAL NEGOTIATION
7. REVIEW & DISCUSSION

The negotiation may be videoed.

Besides these elements of a negotiation role-play, separate planning models are provided to the selling and buying groups to allow them to forecast the financial impact of their proposals.

The use of computer models allows the financial impact of the proposals to be fully analysed (without overly stretching the participants' mathematical ability)! Also, the design of these models coupled with the fact that teams cannot "invent" the financial dimension or the areas of agreement, means that the negotiation invariably leads to a WIN-WIN situation.

AVAILABILITY: Constructive, Commercial and Sales Negotiation are available off-the-shelf and a comprehensive Trainer's Pack is provided allowing trainers with little or no experience with simulations to run the simulations.

THE ROLE PLAYS

Commercial Negotiation

This was developed for the Chartered Institute of Marketing's college following their experience with Sales Negotiation. It involves a negotiation between a brewery and a supermarket chain about the sales of an own-brand beer.

Areas of agreement cover price, duration of contract, strength of beer, delivery, payment terms and promotional support.

Commercial Negotiation is available as a package for trainers, on a rental basis or as a fully tutored basis.

Besides the Participant's Brief (download below), there are separate briefs for Sellers and Buyers and on request these can be e-mailed.

Constructive Negotiation

This was developed for a major construction company. It involves a negotiation between a construction company and a local government about the purchase of Prefabricated One-person Dwellings for the low paid.

Areas of agreement cover price, dwelling type, number of dwellings, fitting. commencement and completion dates and payment terms.

Constructive Negotiation is available as a package for trainers, on a rental basis or as a fully tutored basis.

Besides the Participant's Brief (download below), there are separate briefs for Sellers and Buyers and on request these can be e-mailed.

Sales Negotiation

This involves a negotiation between an electric motor manufacturer and a steel maker about the purchase of steel raw material.

Areas of agreement cover price, duration of contract, quality of steel, delivery frequency, payment terms and payment currency.

Sales Negotiation is available as a package for trainers, on a rental basis or as a fully tutored basis.

Besides the Participant's Brief (download below), there are separate briefs for Sellers and Buyers and on request these can be e-mailed.

KEY LEARNING

NEGOTIATION OBJECTIVES

Besides the usual price, profit & cost objectives, each group has other objectives. This raises the issues of the objectives of both parties. For the buyers these include least total cost purchase, ease & safety of purchase, politics of the buying group etc.. For the sellers the include profits and profitability, size of order, future business opportunities etc..

NEGOTIATION STRATEGY

The role-play takes the participants through all the stages of the negotiation (from planning through information gathering, initial proposal to final proposal to agreement). At each stage, as the negotiation unfolds, teams must decide strategy and manage the process. Not only does this involve deciding who says what, but includes body language and even the physical arrangement of the negotiating arena.

TRADE-OFFS

Each negotiation involves reaching agreement in several (six or seven) areas. Each area differs in importance to buyers and sellers and has different impact on financial results. So, not only must teams consider the importance and cost to their side but must find the importance to the other side. This allows trade-offs in areas that are important to one side but not the other. Additionally, some areas may benefit both sides.  However, if the two sides are in conflict, this mutual benefit will not be explored.

NEGOTIATING BEHAVIOUR

Although, almost invariably, the simulation concludes with a win-win agreement, this does not mean that conflict and inappropriate behaviours do not happen. This provides the opportunity to explore and discuss these behaviours and contrast them with helpful behaviours using actual examples from the negotiation. This is illustrated by the following exchange:

Buyer: "You obviously failed to heed our statement on price."

Seller: "No with respect ........"

Buyer: "But when you quoted ........"

Seller: "We did not quote - we mooted ......."

(Despite this acrimonious exchange, the group reached a win-win agreement!)

FINANCIAL IMPLICATIONS

Although participants do not have to do calculations or have deep accounting knowledge, each negotiation explores the financial implications of the negotiation. Implications in terms of profit, cost and cash flow.

The negotiations emphasise, for the buyers, the total cost of acquisition (financing, quality,purchase cost etc.) rather than just purchase cost. By looking at the total cost of supply recognises that buying is not just about getting the lowest price. Rather, it is about minimising cost and a good sales person will investigate all areas of customer cost.

For the sellers, the total cost of supply (selling, servicing, financing and product) are explored. This ensures that the sellers think beyond just getting the order towards maximising profits and profitability taking to all the costs associated with the order.

TEAM MANAGEMENT

By participating in a team negotiation, participants not only must consider the other party to the negotiation but, also, must manage their team. Also, working in a team means that the different negotiation tasks and roles can be explored. Tasks such as negotiator, chairman, observer and recorder. Where the participants normally work in a negotiating team, this role separation is vital. However, even when the negotiation is done as an individual, these roles are still necessary (albeit provided by the individual).

DOCUMENTATION

Documentation is provided separately for the UK and US Versions MS Word format and comprises:

General Brief that describes the general situation facing both the buyers and the sellers.

Sellers and Buyers Briefs that describe the situation separately for the buyers and the sellers. These are not available online but we can provide on request.

The Background Notes describe the simulation for the trainer and may be used as a handout to the participants at the end of the simulation. (Please contact us to receive a copy of these).

The Briefing Slides are provided in standard Power Point format.

The downloadable information is restricted to the information that would be provided to the learners at the start of the role play. Information (sellers and buyers briefs and background notes) that would provide unfair help is available on request.

	UK Versions			US Versions
Negotiation	Commercial	Constructive	Sales	Commercial	Constructive	Sales
General Brief
Briefing Slides
Running the Simulation

WAYS OF USE

These computer enhanced negotiation role-plays can be used:

• AS A COURSE FINALE
• AS A BREAK
• AS A STAND ALONE EVENT

SIMULATOR DOWNLOAD

This is provided to allow you to download an evaluation version of the simulation.

Most recent update: 22/10/10
Hall Marketing, Studio 11, Colman's Wharf, 45 Morris Road, London E14 6PA, ENGLAND
Phone & Fax +44 (0)20 7537 2982 E-mail jeremyhall@simulations.co.uk