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How To Become A Great Negotiator

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Negotiations are a fact of life. We constantly negotiate both in personal and professional areas of life.

Still, many people don´t like negotiating, and as such try avoiding it. As a result it could make resolving and/or progressing problematic.

Others, often success-driven managers and businesspeople, are so competitive that only “winning” would make them a great negotiator in their eyes. Causing, of course, the other person to “lose.” Helpful? Most likely not!

Applying below-listed four negotiation principles and executing the outlined three-phased negotiation process will significantly increase the quality of your future negotiations.

NEGOTIATION PRINCIPLES

Often negotiations fail when the following 4 key negotiation principles are not being taken into consideration:

Aim At Win-Win Outcomes
Those are the results which satisfy all stakeholders involved. They represent the basis for further business and sustainable relationships.

Stay Always Open-minded
Successful negotiators look at each major aspect from multiple perspectives. They´re prepared for anything.

Focus On Long-Term Business Relationships
With this in mind it´s rather impossible to fleece the other party.

Show Respect And Appreciation
Honoring the other person as equal is crucial to any successful negotiation.

NEGOTIATION PROCESS

A professional negotiation process consists of 3 stages: The preparation phase, the negotiation phase, and the follow-up phase. You need to excel in all three of them in order of becoming a master of negotiation.

Preparation Stage

If you think that negotiating only starts once you meet the other party, then most likely you´ll not chalk up the best possible outcome: “By failing to prepare, you are preparing to fail.” (Benjamin Franklin).

In this very first phase define your negotiation targets, strategy and objective criteria based on which you later measure the achieved agreement. Be clear about your alternatives and fall back positions; also known as BATNA: Best Alternative To Negotiated Agreement.

Crucial to collect all accessible information about the other party and your negotiation counterparts: What are their objectives and potential strategy, what might be their perspective, their motivations, and their opinion on relevant topics? Which is their interest and their reservation price (i.e. when would they walk away)?

Negotiation Stage

During the opening phase of the negotiation stage listen well and frequently ask (open-ended) questions. As a rule of thumb you should listen more than you talk. Use silence as a tactic and mimic your opponent. Sooner or later they will talk. Try to detect commonalities rather than differences to generate mutual engagement and to establish a first basis of trust. In general it is essential to separate the people from the issue. Don´t take things personal. Many people consider negotiations as a kind of game. So, stay relaxed and enjoy playing the game!

When you´re about to start the actual negotiation be brave and bring forward the first proposal. Why should you do that? The opening offer always serves as a reference point. It´s what I call an “unconscious anchor.“ In other words: If you’re selling, be first and start the bidding high. And if you’re buying, start the bidding low.

Often it might be appropriate making two to three equivalent, simultaneous offers. This shows that you understand and respect the other position and possible concerns. Even more importantly, it creates a variety of options and helps avoiding cornering the other side. You should ask for more than what you´re actually looking for. That gives you flexibility and room to maneuver.

Don´t be afraid to give in first. It´s an excellent opportunity to inject an additional layer of trust. When doing it in a pro-active manner you should be able choosing something which has significant meaning to the other party and is of low cost to you. Usually whenever you give you should also take. Every concession you make should involve a trade-off of some kind. By doing so focus on interests rather than positions.

Saying that, and in order to get around cognitive dissonances of your negotiation counterparts, you are well advised to engage in the theatrics of negotiation: e.g. when being attacked or confronted with unreasonable proposals and demands you should look visibly put off, or you even might want to flinch. By the way, that´s the only time when you get “emotional.“

Experienced negotiators are creative solution seekers, they enjoy thinking outside of the box, and they constantly look for ways to broaden the pie instead of haggling over every little detail. However, they also stand their ground, if the other party is not willing to move or if they were to become (too) aggressive. Temporary confrontations are a normal and stimulating ingredient of serious negotiations. That´s life. Consequently good negotiators take their time and let things cool off. They are not in a hurry to close the deal. And – when push comes to shove – they might walk away as they know that reaching no deal is better than a bad deal.

Follow-Up Stage

After you have closed the deal there is still some final – and very important – work to be taken care of. Write and send out the first draft of the minutes to the other party withing 24 hours after the negotiations have finished. Ask the other side for their input and feedback to your minutes and get them finalized by latest 3 days after having agreed on the deal. Minutes should be as short and as clear as possible. They contain what was agreed upon, and list what has to be executed by when and by whom. Finally, you need to walk your talk, i.e. you must stick to the agreed points and make sure that the other party will do so as well.

Final advice: Try to conduct important negotiations in a face-to-face setting. Sure, an excellent preparation, a clear negotiation strategy, and profound knowledge of key negotiation tactics are required to negotiate well. Of paramount importance, however, is the personality of the negotiator. And that´s delivered and reflected best when you can directly look in each others´eyes.

What do you think? Which is your negotiation strategy and which tactics do you like to apply?

source:https://www.linkedin.com/pulse/20140302104953-175081329-how-to-become-a-great-negotiator

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KPMG RELOCATING IN STAMFORD, ADDING 110 JOBS

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KPMG LLP plans to add 110 jobs over the next five years in a new Stamford office.

The audit, tax and advisory firm recently signed a long-term lease and plans to renovate space in the former UBS building at 677 Washington Boulevard, which it expects to occupy next spring. KPMG has had a presence in Stamford for nearly 40 years, where it currently employs 315 professionals at its location at 3001 Summer St. The firm’s Hartford office has 231 employees.

“KPMG’s commitment to growing its operations and creating jobs in Connecticut is a testament to our top-notch workforce and unbeatable quality of life,” Gov. Dannel Malloy said. “It is an encouraging sign that world-class companies are continually choosing to set up or expand operations in our state.”

The Connecticut Department of Economic and Community Development is supporting the business expansion in Stamford with a $3 million grant in arrears for leasehold improvements, equipment and other project-related costs. Portions of the grant will be released when certain job-creation milestones are met.

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THE 7 MOST IN-DEMAND TECH JOBS FOR 2018

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The 7 most in-demand tech jobs for 2018

CIO | Jun 6, 2018

From data scientists to data security pros, the battle for the best in IT talent will wage on next year. Here’s what to look for when you’re hiring for the 7 most in-demand jobs for 2018 — and how much you should offer based on experience.

 

 

 

 

Source: Computer World

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AUTOMATION WILL MAKE LIFELONG LEARNING A NECESSARY PART OF WORK

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As more companies adopt and learn through digital solutions, and as new forms of employment and investment opportunities strengthen the demand recovery, we expect productivity growth to recover, write James Manyika and Myron Scholes in Project Syndicate.

For years, one of the big puzzles in economics has been accounting for declining productivity growth in the United States and other advanced economies. Economists have proposed a wide variety of explanations, ranging from inaccurate measurement to “secular stagnation” to questioning whether recent technological innovations are productive.

But the solution to the puzzle seems to lie in understanding economic interactions, rather than identifying a single culprit. And on that score, we may be getting to the bottom of why productivity growth has slowed.

Examining the decade since the 2008 financial crisis – a period remarkable for the sharp deterioration in productivity growth across many advanced economies – we identify three outstanding features: historically low growth in capital intensity, digitization, and a weak demand recovery. Together these features help explain why annual productivity growth dropped 80%, on average, between 2010 and 2014, to 0.5%, from 2.4% a decade earlier.

Start with historically weak capital-intensity growth, an indication of the access labor has to machinery, tools, and equipment. Growth in this average toolkit for workers has slowed – and has even turned negative in the US.

In the 2000-2004 period, capital intensity in the US grew at a compound annual rate of 3.6%. In the 2010-2014 period, it declined at a compound annual rate of 0.4%, the weakest performance in the postwar period. A breakdown of the components of labor productivity shows that slowing capital-intensity growth contributed about half or more of the decline in productivity growth in many countries, including the US.

Growth in capital intensity has been weakened by a substantial slowdown in investment in equipment and structures. Making matters worse, public investment has also been in decline. For example, the US, Germany, France, and the United Kingdom experienced a long-term decline of 0.5-1 percentage point in public investment between the 1980s and early 2000s, and the figure has been roughly flat or decreasing since then, creating significant infrastructure gaps.

Intangible investment, in areas such as software and research and development, recovered far more quickly from a brief and smaller post-crisis dip in 2009. Continued growth in such investment reflects the wave of digitization – the second outstanding feature of this period of anemic productivity growth – that is now sweeping across industries.

By digitization, we mean digital technology – such as cloud computing, e-commerce, mobile Internet, artificial intelligence, machine learning, and the Internet of Things (IoT) – that is moving beyond process optimization and transforming business models, altering value chains, and blurring lines across industries. What differentiates this latest wave from the 1990s boom in information and communications technology (ICT) is the breadth and diversity of innovations: new products and features (for example, digital books and live location tracking), new ways to deliver them (for example, streaming video), and new business models (for example, Uber and TaskRabbit).

However, there are also similarities, particularly regarding the effect on productivity growth. The ICT revolution was visible everywhere, the economist Robert Solow famously noted, except in the productivity statistics. The Solow Paradox, as it was known (after the economist), was eventually resolved when a few sectors – technology, retail, and wholesale – ignited a productivity boom in the US. Today, we may be in round two of the Solow Paradox: while digital technologies can be seen everywhere, they have yet to fuel productivity growth.

MGI research has shown that sectors that are highly digitized in terms of assets, usage, and worker enablement – such as the tech sector, media, and financial services – have high productivity. But these sectors are relatively small in terms of share of GDP and employment, whereas large sectors such as health care and retail are much less digitized and also tend to have low productivity.

MGI research also suggests that while digitization promises significant productivity-boosting opportunities, the benefits have not yet materialized at scale. In a recent McKinsey survey, global firms reported that less than a third of their core operations, products, and services were automated or digitized.

This may reflect adoption barriers and lag effects, as well as transition costs. For example, in the same survey, companies with digital transformations under way said that 17% of their market share in core products or services was cannibalized by their own digital products or services. Moreover, less than 10% of the information generated and that flows through corporations is digitized and available for analysis. As these data become more readily available through blockchains, cloud computing, or IoT connections, new models and artificial intelligence will enable corporations to innovate and add value through previously unseen investment opportunities.

The last feature that stands out in this period of historically slow productivity growth is weak demand. We know from corporate decision-makers that demand is crucial for investment. For example, an MGI survey conducted last year found that 47% of companies increasing their investment budgets were doing so because of an increase in demand or demand expectations.

Across industries, the slow recovery in demand following the financial crisis was a key factor holding back investment. The crisis increased uncertainty about the future direction in consumer and investment demand. The decision to invest and boost productivity was correctly deferred. When demand started to recover, many industries had excess capacity and room to expand and hire without needing to invest in new equipment or structures. That led to historically low capital-intensity growth – the single biggest factor behind anemic productivity growth – in the 2010-2014 period.

But, as more companies adopt and learn through digital solutions, and as new forms of employment and investment opportunities strengthen the demand recovery, we expect productivity growth to recover. Myriad factors contribute to productivity gains, but it is the twenty-first century’s steam engine – digitization, data, and its analysis – that will power and transform economic activity, add value, and enable income-boosting and welfare-enhancing productivity gains.

 

 

 

 

Source: Project Syndicate

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