ENHANCED NEGOTIATIONS & 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.

These are a series of computer enhanced negotiation role-plays lasting a day that can be used:

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

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

• COMMERCIAL NEGOTIATION
• CONSTRUCTIVE NEGOTIATION
• SALES NEGOTIATION
• SYSTEMS NEGOTIATION

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.

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, means that the negotiation invariably leads to a WIN-WIN situation.

AVAILABILITY: 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. Systems Negotiation is only available tutored.

KEY LEARNING

NEGOTIATION OBJECTIVES

Besides the usual price, profit & cost objectives, each group has other objectives. For the FMCG negotiation, the sellers have surplus brewing capacity and the retail buyers (with cash flow problems) require delayed payment. 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. In the FMCG negotiation, if the selling group provides more advertising support to the buyer than the basic amount, the additional sales more than cover the cost of the additional advertising support. (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. For the sellers, the total cost of supply (selling, servicing, financing and product) are explored.

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).

SIMULATOR DOWNLOAD

This is provided to allow you to download an evaluation version of the Sales Negotiation. Before you do this you must have two blank formatted floppy discs available (labeled Disc 1 and Disc 2). Also be advised that the Cab files may take some time to down load.

The evaluation version will only allow you to evaluate the selling group's proposal for the Commercial, Constructive and Sales Negotiation simulations. When you are ready to use the simulation on a course you must ask Hall Marketing for a release code and this will release the full versions of the Commercial, Constructive and Sales Negotiations together and allows both the selling and buying groups to make and evaluate proposals.

The table below shows the files to download, their description, size and the floppy disc to save to. Once all files are downloaded, place Disc 1 in your floppy drive. Click Start and then Run and enter A:\setup.exe. The program will then install.

Help with downloading - especially with Windows XP or Vista.

Most recent update: 06/09/08
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