Negotiation 101: The Art and the Science
Patullo Conference
October 8, 2013
Framework
The science: improve outcomes
The art: know thyself!
Practice makes perfect
Negotiation 101The art and science
Framework
The science: improve outcomes
The art: know thyself!
Practice makes perfect
Negotiation 101The art and science
In the beginning was choice, and all history can be seen
as an unending effort to manage it
Framework
The science
The art
Practice
What’s to negotiate?
Framework
The science
The art
Practice
What’s to negotiate?
Framework
The science
The art
Practice
What’s to negotiate?
Framework
The science
The art
Practice
What’s to negotiate?
√?Decision Point
Business-as-usual
Divergent Zone
Groan Zone
Convergent Zone
Kaner, 1996
Framework
The science
The art
Practice
What’s to negotiate?
Classic Attitude Equation
A = ∑ v1w1 ,
where v1 is belief contentw1 is belief importance
w1 = ∑ (z1-y1) x1
z1 is an emphasis frame (nominal values)x1 relates to priming (0-1)y1 is an equivalence frame (quantify gain/loss)
Prospect Theory
• Reflects status quo bias and loss aversion
Value
Out
com
eLosses Gains
Posi
tive
Neg
ative
Framework
The science: improve outcomes
The art: know thyself!
Practice makes perfect
Negotiation 101The art and science
Framework
The science
The art
Practice
Four-step processFive things you have to identifyFirst choice
•Data gathering
•Definition of the problem
•Developing options
•Bargaining/Problem-solving
Framework
The science
The art
Practice
Four-step processFive things you have to identifyFirst choice
Inventing Options• Broadening the Pie
– Create additional resources so that both sides can obtain their major goals
• Nonspecific Compensation– One side gets what it wants and the other is compensated
on another issue • Logrolling
– Each party makes concessions on low-priority issues in exchange for concessions on issues that it values more highly
• Cost Cutting– One party gets what it wants; the costs to the other are
reduced or eliminated • Bridging
– Neither party gets its initial demands but a new option that satisfies the major interests of both sides are developed.
Framework
The science
The art
Practice
Four-step processFive things you have to identifyFirst choice
Framework
The science
The art
Practice
Four-step processFive things you have to identifyFirst choice
• Aspiration point: dream outcome• BATNA: what’s left if a negotiation
breaks down or doesn’t happen• Resistance point: worst outcome
that’s still acceptable• ZOPA: the space where the
negotiation happens• First offer
Framework
The science
The art
Practice
Four-step processFive things you have to identifyFirst choice
BATNA what?• Best Alternative To a Negotiated Agreement
– BATNA is the choice you can make if you conclude that negotiating with a particular party is not likely to yield a favorable result.
– You can walk away from a negotiation if your BATNA is better than the likely outcome of that negotiation.
• Establishes: Resistance points (worst case scenario that’s acceptable in a negotiation)
Framework
The science
The art
Practice
Five-step processSix things you have to identifyFirst choice
Zone of Potential Agreement
Framework
The science
The art
Practice
Four-step processFive things you have to identifyFirst choice
Integrative (collaborative, win-win)
•there is a variable amount of resources to be divided and both sides can "win." •dominant concern here is to maximize joint outcomes. •dominant strategies include cooperation, sharing information, and mutual problem solving. This type is also called "creating value" since the goal here is to have both sides leave the negotiating feeling they have greater value than before.
Distributive (competitive, zero sum, win-lose)
•one side "wins" and one side "loses." •there are fixed resources to be divided so that the more one gets, the less the other gets. •one person's interests oppose the others. •the dominant concern in this type of bargaining is usually maximizing one's own interests. •dominant strategies in this mode include manipulation, forcing, and withholding information.
Framework
The science
The art
Practice
Four-step processFive things you have to identifyFirst choice
Concessions• Small concessions give the impression that the
bottom line is not far off. • Large concessions indicate that a lot more can
still be conceded before the bottom line is reached.
• Rapid or large concessions undermine the credibility of the initial offer.
• All concessions teach the lesson that more concessions will be made.
• Never split the difference!
Framework
The science: improve outcomes
The art: know thyself!
Practice makes perfect
Negotiation 101The art and science
Framework
The science
The art
Practice
The K-MIF wayWho am I?How do I figure you out?
• Know• Monitor• Inject resources• Follow up
Framework
The science
The art
Practice
The K-MIF wayWho am I?How do I figure you out?Injecting resources
Forcing
Shark
“my way or the high way”
Imp
ort
ance
of
Pers
onal
Goals
Importance of Relationships
Collaborating
Owl
“I would prefer x, but what do you want?”
Avoiding
Turtle
“Conflict? What conflict?”
Accommodating
Teddy Bear
“Whatever you say…”
Adapted from Anthony Falikowski's 2002 book, Mastering Human Relations
Framework
The science
The art
Practice
The K-MIF wayWho am I?How do I figure you out?Injecting resources
Adapted from Anthony Falikowski's 2002 book, Mastering Human Relations
Forcing
Win-lose
•authoritarian
•reactive
Ass
ert
iveness
Cooperativeness
Collaborating
Win-win
•focuses on process
•energized by differences
Avoiding
Lose-lose
•timid
•weathers the storm
Accommodating
Lose-win some
•wishy-washy
•need to please
Framework
The science
The art
Practice
The K-MIF wayWho am I?How do I figure you out?Injecting resources
Framework
The science
The art
Practice
The K-MIF wayWho am I?How do I figure you out?Injecting resources
High Culture……Underlying social contract is
most important
• Collectivist societies– Maintaining face– Group harmony
• Talk is more about preserving social harmony than transmitting information
• Inaccuracy and evasion are preferred to painful precision, especially in the culturally loaded use of ‘no’
Low Culture……The preeminence of the
individual
• Meaning is explicit in the text
• Language is informational rather than a social lubricant
Framework
The science
The art
Practice
The K-MIF wayWho am I?How do I figure you out?Injecting resources
If all else fails, ask a question•Exploring positions
– Ask, why not?– Allow them to correct you
• What I hear you saying is x, is that correct?
– Build trust by showing some of your hand
•Finding interests– Ask, what if?– Ask for their advice
• What would you do in my shoes?
Framework
The science
The art
Practice
The K-MIF wayWho am I?How do I figure you out?Injecting resources
And watch the response…•Emblems–specific gestures with specific meaning that are consciously used and consciously understood. –used as substitutes for words and are closer to sign language than everyday body language.
•Iconic gestures–closely related to speech, illustrating what is being said
•Metaphoric gestures–Used to explain a concept
•Regulators–used to control turn-taking in conversation
•Affect displays–used to display emotion
•Beat gestures–plays to primitive feelings of basic patterning –used to create emphasis and grab attention.
Non-Verbal Behavior• Brisk, erect walk• Hands on hips• Arms crossed on
chest• Hand to cheek• Rubbing eyes• Hands clasped behind
back• Fondling hair• Tilted head• Stroking chin
Framework
The science
The art
Practice
The K-MIF wayWho am I?How do I figure you out?Injecting resources
Interpretation• Confidence• Aggressiveness,
readiness• Defensiveness,
relaxed• Evaluation• Disbelief, tiredness• Anger, frustration
• Insecurity, flirting• Taking an interest• Trying to make a
decision, taking over the world
Patterns• Moving away• Closing• Preening
• Pulling back the head in fear, confusion or surprise.
• Pulling back arms or shoulders.
• Hollowing the chest, pulling it back.
• Turning away the head and, in extreme, showing the back.
• Stepping back.
•Lowering the head, with chin down (protecting the neck). •Closing mouth and eyes, lowering eyebrows refusing speech and sight. •Crossing arms or legs, pulling in shoulders, elbows and knees to protecting organs and vulnerable parts. •Turning hands to palms facing down. •Curling fingers into the palm, protecting them (and also making a fist). •Turning feet to point toes inwards. •Hunching down, with any or all of the above, making the body less threatening and a smaller target.
•Straightening the tie or other clothes. •Looking in a mirror. •Curling lips to even out lipstick. •Brushing imaginary lint off arms or legs. •Patting down hair or combing it with the fingers.
Framework
The science
The art
Practice
The K-MIF wayWho am I?How do I figure you out?Injecting resources
Framework
The science
The art
Practice
The K-MIF wayWho am I?How do I figure you out?Injecting resources
Injecting Resources
Framework
The science: improve outcomes
The art: know thyself!
Practice makes perfect
Negotiation 101The art and science