2018 Housing Colorado NOW Problem Solving and

Transcript:2018 Housing Colorado NOW Problem Solving and:
2018 Housing Colorado NOW Problem Solving and Negotiating Skills Today’s Learning Objectives How to recognize financial and non-financial aspects of a problem How to negotiate more effectively with other deal participants How to create options and alternatives that lead to win-win solutions Successful deal structuring is not just numbers. Deals are made by people. People are motivated by factors other than money. Deal structuring has two equal parts: science and art Financial factors (science) Non-financial factors (art) Both financial and non-financial factors need to be successfully addressed for a deal to go forward The Art of Problem Solving, Deal Structuring and Negotiation The Art of Problem Solving, Deal Structuring and Negotiation Uses the information generated by financial analysis, plus an understanding of the needs of the deal participants, to negotiate a deal structure satisfactory to all the participants Understand the needs of the deal participants Use your financial analysis techniques Set aside the “personalities” of participants Negotiate a deal structure that is satisfactory to all of the participants The Problem Solving Process Step 1: Define the problem(s) Step 2: Identify the outcomes you’re trying to achieve - not “how to get there” Step 3: Identify existing and potential players Step 4: Evaluate the players Step 5: Formulate possible solutions Step 6: Build consensus around a solution Step 7: Implement The Problem Solving Process (cont.) Step 1: Define the problem(s) Financial analysis – the key to identifying and understanding financial issues Non-financial considerations – other needs that must be met Step 2: Define the state of being fixed What specific things must be accomplished in order for you to say that you’ve solved the problem? Do not talk about “how” to solve it, just what “SOLVED” looks like The Problem Solving Process (cont.) Step 3: Identify existing and potential players & evaluate them Who can help achieve your goal? Who’s already involved? Who might be willing to become involved? Assess level of motivation. How much does each player want to get to a solution? Assess each player’s negotiating strength. How easy is for them to walk away? The easier it is for a player to simply walk away, the greater their negotiating strength. Assess each player’s ability to contribute to the solution. What do they bring to the table? The Problem Solving Process (cont.) Step 4: Identify which players are central to a solution There are lots of possible players. You