9.27. Negotiation Fundamentals (REVISED)

8/7/2019 9.27. Negotiation Fundamentals (REVISED)

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Negotiation Fundamentals


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Objectives Contrast conventional negotiation

techniques with the interest-based

approach to negotiation Examine key concepts including:

positions, interests, principles, BATNA(best alternative negotiation

agreement) Practice negotiation skills


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Conflict Inventory Who has experienced a conflict

(problem, issue, scrape,

misunderstanding, etc) in the lastmonth?

How did you respond? What was yourconflict strategy?


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Conflict Resolution Options Avoidance

Competition

Compromising Accommodation

Problem solving (e.g. conciliation,

negotiation, mediation, facilitation) Collaborating


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Problem Solving Options Conciliation: neutral 3rd party assists

disputants by acting as go-between

Arbitration: neutral 3rd party acts as judge

Negotiation: parties confer to arrive atmutually satisfactory solution

Mediation: neutral 3rd party assists parties

in their own negotiations Facilitation: neutral 3rd party assists in

group discussions


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Everyone Negotiates Buying a car, house or other object

for which the price may not be fixed

Establishing a salary, workplacetasks, office conditions, etc.

Organizing team tasks or priorities

Allocating household tasks Deciding how to spend a free evening


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Conventional Negotiations Focus on winning

Assert positions/personal preferences

Concede stubbornly Seek compromises based on arbitrary

divisions (e.g. split the difference)

Engage in threats, bluffs or othernegotiation tactics


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Conventional Negotiation Tactics Good cop/bad cop

Highball/lowball

Bluff Threats

Nibble

Appeals to reason


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An Alternative: Interest-Based Negotiations

Separate the people from the problem.

Focus on interests, not positions.

Invent options for mutual gain.

Insist on objective criteria.


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Principle 1: Separate the People

from the Problem Disentangle the people from the

problem

Deal with the people problem:acknowledge perceptions, emotions

Listen actively

Speak to be understood Speak about yourself, not them


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Principle 2: Focus on Interests, Not

Positions Positions: What disputants say they

want in a negotiation: a particularprice, job, work schedule, change insomeone elses behavior, revisedcontract provision, etc.

Interests: Underlying desires orconcerns that motivate people inparticular situations (May sometimesbe the same as their positions!)


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Focusing on Interests Problem: barking dog

My interpretation: my neighbor

doesnt care about my needs My position: quiet the dog

My interest: I need sleep

Issue: how to control the barking


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Focusing on Interests Problem: reefs are dying

My interpretation: inadequately controlledconstruction in near-shore areas results in

runoff that smothers reefs. My position: stop or severely limit land

disturbance

Interest: reducing the rate of coral loss

Issue: Whats the real source of reefdegradation? How can runoffbe reduced/controlled?


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Types of Interests Substantive: How people describe the

issue: barking dogs, cars blocking

driveway, dying reefs Relational: How people they should

be treated or acknowledged.

Procedural: How people think issuesshould be addressed (e.g. courts,ho`oponopono)


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Principle 3: Invent Options for

Mutual Gain Focus on the variety of ways issues/

interests (yours/theirs) might beaddressed?

Avoid assuming theres a singlesolution

Separate brainstorming from

evaluation of options Dont assume zero-sum conditions

Think creatively


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Principle 4: Insist on Objective

Criteria Fair standards: market value,

precedent, blue book value,

professional standards, bestpractice, industry average, equaltreatment, etc.

Fair procedures: e.g. last best offers,

taking turns, drawing lots


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When is the Interest-Based

Approach Appropriate? Other party is willing to problem-solve

There is sufficient trust and informationora willingness to develop them

On-going relationships are important

Commitment to carry out the agreement isneeded

Quality agreement is more important thanan expedient one


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When is the Interest-Based

Approach Unnecessary? On-going relationships are not important

Negotiation is viewed as strictly distributive(e.g. buying a car)

Lack of commitment to problem-solving onthe part of one or more parties

One or more parties see the negotiation as

involving fundamental rights (but somecontention about this)


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Prepping for Your Negotiation What are our interests? What are

theirs? How can we find out?

Whats our BATNA? Whats theirs? Whats our WATNA? Theirs?

What do we know about their

circumstances that might affect thenegotiations?

Whats their negotiation style? Etc.


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Negotiating Steps Develop ground rules

Jointly identify issues

Explore interests Develop objective standards

Brainstorm options

Evaluate options using standards Try to reach consensus decision


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Sources of Negotiation Problems Perceptual errors

Unrealistic expectations about likely

outcomes Unwillingness or inability to engage in

real negotiations

Perceived non-negotiability of somedisputes


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Some of the most crucial factors which should be considered

include:

The cost - Ask yourself how much it will cost to make the deal

relative to the cost of your best alternative. Cost estimation mayentail both the short term and the long term. It boils down to

figuring out which of your options is the most affordable.

Feasibility - Which option is the most feasible? Which one can

you realistically apply over all the rest of your available options?

Impact - Which of your options will have the most immediatepositive influence on your current state of affairs?

Consequences - What do you think or estimate will happen as

you consider each option as a possible solution?

Whats in your BATNA?


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Boosting your BATNA

Be Creative - Simply ask yourself what other options youmight employ that could increase your bargaining position.Brainstorm the situation with all the key players in yourorganization. Your planning must also factor in your

counterpart's interests and options. Improve Your BATNA - Endeavour to expand your options.

One possibility is to consider bringing into the mix, otherinterested third party partners. A third parties interests maycoincide with key components of your interests, or of your

counterpart's. Use Experts - Neutral parties with their own relevant

expertise might be able to unravel your problem into a newlydesigned, but more attractive perspective. If your side lackssome area of expertise, get the experts to lend a hand.


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Thank You

Documents

9.27. Negotiation Fundamentals (REVISED)