Kahvay Negotiation: A Quick Reference Guide

Follow These Simple Steps To Negotiate Appropriately on The Eastern Side of The Kahvay Negotiation Compass

The Weekly Walkaway highlights negotiation in its ‘good’, ‘bad’ and sometimes ‘downright ugly’ forms. Issue No. 75 (26th April 2024).

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Thought of The Week

Kahvay Negotiation: A Quick Reference Guide

Negotiating on The Eastern Side of The Kahvay Negotiation Compass

I had a very strange interaction the other day. 

A client had asked for a quick reference guide that would sit on their intranet.

Seems simple enough.

They had asked for a proposal but we had really struggled to put a value on ‘it’ and had therefore struggled to price the project.

We had decided to be open and transparent with them. We didn't want to break their piggybank and we wanted to turn the conversation on its head and speak openly, collaboratively and creatively.

Photo by Thimo Pedersen on Unsplash

To us, even if they proposed £1 per week we would have considered it.

The issue was that in reading their verbal and non verbal communication we came to the conclusion that they were not playing it straight.

There seemed to be a hidden agenda.

They did not approach the conversation openly nor collaboratively but competitively.

They tried to devalue us as if we were in some sort of a haggle!

So disappointing…

Photo by Mick Haupt on Unsplash

So just to show you, our loyal Weekly Walkawayers, it's not always about money/cash/price..

Here is a quick reference guide for how to negotiate on the Eastern Side of The Kahvay Negotiation Compass.

Anyone interested in working collaboratively to incorporate this and so much more into your internal processes do feel free to get in touch.  

But for now this Quick 14 point Reference Guide should help to emphasize the importance of:

• Appreciating the difference between Negotiation versus selling and ensuring you don't negotiate if you haven't completed the sales process (buyers sell too, remember!);

• PLANT Analysis and having an analytical approach to evaluating the landscape;

• Using The Kahvay Negotiation Compass to identifying yours and your counterparts options;

• Planning appropriately, not winging it using the ZOPA analysis by understanding yours, while assuming their 'Walkaways';

• Questioning, Listening, and Testing Assumptions. Information is power. Power gives you options;

• Making Proposals and Countering using the FAFS technique to ensure you stay in control, test your assumptions, give them satisfaction and use reciprocity;

• Observing their behaviours and communication to deduce their position;

• Having a formal process of agreeing and documenting and then implementing the deal you have negotiated.

Kahvay Negotiation: A Quick Reference Guide

Follow these 14 easy steps to navigate negotiations with confidence.

1. Are you Negotiating or Selling?

   1. If Negotiating then progress to step 3;

   2. If Selling go to step 2…

2. RAD - Relationship. Awareness. Demand. Once RAD is complete progress to step 3. Do not leave step 2 until RAD is fully complete.

   1. Relationship: Build appropriate relationships;

   2. Awareness: Explain and Educate. Who? What? When?

   3. Demand: Do they need what you have? Do you need what they have? 

3. Who are you negotiating with? Understand who you are negotiating with. If you don't know the person you are negotiating with or against then do not progress. Return to step 2. If you do know them then well done, progress to step 4.

   1. What are their motivations and interests?

   2. Are they at the appropriate level? Can they agree to this deal? What are their levels of authority? Are they Queen, King, Bishop or Pawn? Who do they report to?

   3. Is there a hidden third party? If you are negotiating against a third party don’t be used by any past relationships with others. Only analyse the relationship you have with the person you are negotiating with or against.

4. PLANT Analysis - (Score High, Medium and Low to complete):

   1. Power: Assess power dynamics between parties. Challenge real power and the perception of power. Remember you are much more equal than you think. Use Kahvay Power Analysis Tool to challenge thinking. Power gives you Choices; To Haggle or not to Haggle.

   2. Longevity: Consider the long-term relationship with your counterpart. How long have you been in a relationship and how long do you want to be in a relationship with them? Are you in perpetual negotiation or is this one off?

   3. Advanced: How complex is the negotiation. Single variables / issues = higher chance for competitive behaviours as you distribute value selfishly. More variables = higher chance of cooperative behaviours as you create more value and then distribute more mutually. Also consider evaluating your counterpart's level of expertise. More experienced senior negotiators are more than likely trained and have the authority and interests to negotiate across risk, continuity and longevity. Junior and less experienced negotiators are targeted on price / cost, have less authority to say yes and are less likely to trade across multiple variables, forcing them into more distributive negotiations. They say no.

   4. Need: Understand your counterpart's needs and motivations. Analyse yours and their BATNA. Who has stronger alternatives? Are there many/more/few suppliers/buyers for what you want/have?

   5. Trust: Do you trust them? Do they trust you? Real trust. Not the trust you put in family and friends. Trust = Reliability. Do they do what they say? Are they honest? Are they open? Are they mutual? Could you share sensitive information with them without risk of being exploited? Without trust you will be forever on the East of the Negotiation Compass. Do you need Trust? If You don't have trust and you need it can you build/re-build it?

5. Using your PLANT Analysis to Navigate The Kahvay Negotiation Compass: Don’t wing it. Don’t wish for it. Don’t hope for it. Analyse ‘it’ and consider your options carefully. If you do not like where PLANT takes you then either:

   1. do not negotiate and return to step 2. 2. do not negotiate now, hold, and strategically plan to change the circumstances or 3. Suck it up buttercup, appreciate how you will need to negotiate and JFDI.

   Examples of possible PLANT analysis permutation;

   1. If - P = High, L = Low, A = Low, N = Low and T = Low then The Haggler

   2. If - P = Medium, L = Medium, A = Low, N = Medium, T = Low then The Dealer

   3. If - P = Medium, L = High, A = High, N = Medium, T = Medium then The Engineer

      

      1. There are many permutations. Based on changing circumstances and people, each PLANT analysis you do will give you different options;

      2. Your choices need to be based on your knowledge not feelings. Analyse PLANT coldly and analytically based on circumstances;

      3. Each Compass Persona has the most appropriate behaviour, language, tools, tactics and planning processes linked to those circumstances.

6. Using PLANT, now determine your counterpart's options:

   1. The Haggler: They will have a distributive mindset and focus on cost/price. They may use competitive tactics and they could be = Cold. Hard. Tough. Arrogant;

   2. The Dealer: They will have a distributive mindset and focus on cost/price by using the variables to leverage a better deal. They may use competitive tactics but they could also adapt to value creation and trust building, given the right circumstances. They could be = Cold. Hard. Tough;

   3. The Engineer and The Diplomat: Western side of the Negotiation Compass and a post for another day.

7. ZOPA Analysis and 'Walkaways':

   1. Seek internal alignment and authorisation to identify your 'Walkaways' (points where no agreement is possible);

   2. Assume their ‘Walkaways’;

   3. Between the two walkaways determines the Zone of Potential Agreement.

8. Plan to Give Satisfaction and use reciprocity. Plan Your Moves:

   1. Open ‘Extreme’ of where you think their Walkaway is;

   2. Plan to move towards their ‘Walkaway’ in ever decreasing sizes to test your assumption of their ‘Walkaway’, to give satisfaction and employ reciprocity;

   3. Anticipate their behaviour and moves. Prepare questions and counter proposals accordingly to control the negotiation.

9. Questioning, Listening and Testing Assumptions:

   1. Questioning: Prepare and ask lots of questions to gather information. Information is power. Open. Closed. Funnelling. Probing.

   2. Listening: Listen with your eyes and ears. Listen to their answers and also observe their nonverbal communication. Their responses will uncover their real interests and concerns.

   3. Testing Assumptions: Challenge assumptions to gain deeper insights into the negotiation. Even if you are wrong you will have information.

10. Making Proposals:

    1. Present proposals assertively. Look them in the eye wherever possible. Show them you mean it and are confident in your position;

    2. Do not sell your proposals. If you need to explain or justify them you will be perceived as weak. If you need to educate them you are not negotiating, you are selling; RETURN TO STEP 2;

    3. Be clear, concise and do not pillow. Tell them what they need to do.

11. Counter Their Proposals using FAFS:

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    1. Flinch: React to all of their offers with an expression of surprise, disappointment, confusion or even concern. Don't over exaggerate this. A real flinch takes microseconds not seconds. Always shake your head;

    2. Assess: Breath. Control your emotions. Evaluate their response. Check your plan and adjust your next move accordingly. Stick to your plan. You made that plan when you were in control of your emotions and numbers. Conflict in negotiation makes us lose our emotional control and numbers. Trust your plan;

    3. Frame: 6 second stop. Consider your next move, question or action in your mind. Clearly articulate in your mind. Frame it in your mind, the words and behaviour you will use.

    4. Send: Look them in the eye and communicate it. Send it. Confidently, clearly and assertively. BE SILENT. Watch for their reaction.

12. Observation, deduction and being prepared to challenge your assumptions:

    1. Read their nonverbal behaviour - Eyes. Body. Mouth;

    2. Listen for verbal cues to understand how confident they are in their position;

    3. Use both their nonverbal and verbal communication to make assumptions. Challenge those assumptions to understand their Walkaway and when to adjust your approach to maximise their satisfaction and avoid deadlock.

       1. Have you reached an agreement? Move to step 13. 

       2. If not, return to Step 9 and continue until you reach an agreement.

    

    Photo by Tengyart on Unsplash

13. Agree and Document:

    1. Summarise your understanding of the deal; and prepare to sell the deal internally and achieve authority to agree;

    2. Agree officially. Document terms clearly and precisely;

    3. Sign the contract to formalise the deal.

14. Implementation:

    1. Ensure both parties fulfill their obligations;

    2. Monitor the implementation process;

    3. And address any issues promptly.

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