Negotiating 101. Agenda The Problem – Positions The Method – Separate people from problem –...
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Transcript of Negotiating 101. Agenda The Problem – Positions The Method – Separate people from problem –...
![Page 1: Negotiating 101. Agenda The Problem – Positions The Method – Separate people from problem – Focus on interests, not positions – Invent options for mutual.](https://reader035.fdocuments.net/reader035/viewer/2022070402/56649f225503460f94c3ae7e/html5/thumbnails/1.jpg)
Negotiating 101
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Agenda• The Problem
– Positions• The Method
– Separate people from problem– Focus on interests, not positions– Invent options for mutual gain– Insist on using objective criteria
• Yes, But. . .– What if they are more powerful?
• More on BATNAs– What if they don’t want to negotiate?– What if they don’t negotiate fairly?
• Summing up
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Don’t negotiate over positions
• Unwise agreements
• Inefficient• Endangers a long
term relationship• Being a nice
person is no help• Focus on interests
and negotiate in a principled way.
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Separate people from problem
• Negotiators are people first
• Two basic interests: the substance and the relationship
• Positional bargaining puts the two in conflict
• Deal with relationship as a separate consideration
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Manage your perceptions• Put yourself in their
shoes• Don’t deduce their
motives from your fears• Don’t blame them for
your problem• Discuss each
perceptions• Give them a stake by
getting them to participate
• Make your proposals consistent with their values
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Control your emotions
• Be aware and identify your own emotions
• Same for them• Talk about emotions
explicitly• Allow them to vent
interfering emotions– Anger and fear,
common• Do not react to emotional
outbursts• Use symbolic gestures
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Concentrate on communication
• Listen actively and acknowledge
• Speak to be understood
• Speak about you, not them
• Speak for a purpose
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Start before problems arise
• Build a working relationship immediately
• Focus on the problem, not them
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Focus on interests not positions
• Reconcile interests
• Identify their interests
• Talk openly about interests
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Reconcile Interests
• Interests define the problem
• Behind positions lie interests
• Interest categories– Compatible– Shared– Conflicting
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Identify their interests• Ask “Why?”• Ask “Why not?”
– What are their other choices?
• Multiple interests– Detail the many sources
of interest in the problem, and determine who represents them
• Interests: the power of basic human needs
• Make lists
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Talk openly about interests
• Show concern for their interests
• Put their problem ahead of your answer
• Make your interests come alive
• Look ahead, not behind
• Be concrete but flexible• Hard on problem, soft on
people
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Invent options for mutual gain
• Diagnosing the problem
• Solving the problem
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Diagnosis before prescription
• Be the Problem Doctor:
– Problems of premature solutions
– Searching for the single answer
– Fixed pie? Are you sure?
– Solving their problem is my problem.
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Prescription methods
• Separate inventing from deciding
• Broaden your options• Look for mutual gains• Make their decision easy
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Separate inventing from deciding
– Before brainstorming– During brainstorming– After brainstorming– Helping them brainstorm
Invent Options First
Decide which is best
1.
2.
3.
4.
5.
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Broaden your options
• Look for help from a variety of experts
• Invent agreements of different strengths
• Change the scope of a proposed agreement
• Multiply options: the Circle Chart exercise (next)
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Circle Chart for Inventing Options
Step I: Problem
What’s wrong?
Symptoms?
Reality vs Desired Future
Step II: Analysis
Sort symptoms into groups
Possible causes
What’s missing
Barriers to solving
Step III: Approaches
Possible strategies
Theoretical fixes
Broad ideas about what to do
Step IV: Action Ideas
What specific steps
Goals
Verify
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Look for mutual gains• Identify shared interests
• Merge differing interests– What is the difference?– Different beliefs?– What is their value of
time?– Different forecasts about
the future?– Risk aversion differences?
• What are their preferences?
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Make their decision easy
• Whose shoes?
• What decision?
• When threatening is not enough
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Insist on using objective criteria
• Deciding based on strength of will
• Case for objective criteria• Developing objective
criteria• Negotiating with
objective criteria• Joint search for objective
criteria
• Reason and be open to reason
• Never yield to pressure
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Deciding based on strength of will
• Too costly– Substance– Relationships
• Someone has to back down– No one wants to do
that, loss of face– Leads to irrational
choices
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Case for objective criteria
• Principled negotiations– Smarter
• Finding data, information that help inform a better decisions for both parties
– Efficient• No time wasted in testing each other’s will
– Less hostility• No need to get angry if we looking for objective data
– Protects the relationship• Mutual hunt for an objective basis
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Developing objective criteria
Fair standards– Market value– Precedent– Scientific judgments– Professional standards– Efficiency– Costs– Court decisions– Equal treatment
Fair procedures– Coin flips– Cut and choose– Veil of ignorance choices –
not knowing your part– Taking turns– Drawing lots– Letting a third party decide– Choosing the last best
offer
Criteria need to be independent of each side’s will
Legitimate and practical
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Negotiating with objective criteria
• Frame each issue as the joint search for objective measures of value, facts, etc.
• Reason and be open to reason as to what to accept as appropriate standards
• Never yield to pressure, only to principle.
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The joint search for objective criteria
• What is fair to both sides?
• What is your theory about what is fair?
• Agree first on principles.
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Reason and be open to reason
• Keep an open mind
• Possibility of multiple criteria of fairness– What objective basis
is there to decide?– Splitting the
difference or compromising
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Never yield to pressure
• Pressure to yield takes many forms– Bribes– Threats– Stubbornness
• Question the process, look for objective criteria
• This is why you have a BATNA!!!!
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Yes, but . . .
• What if they– are more powerful?– won’t negotiate?– won’t negotiate fairly?
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What if they are more powerful?
• Protect yourself from making a bad decision.– The problem of being too accommodating– The problem of being too inflexible– Know your BATNA: all offers are measured against it.
• Make the most of your assets– Better BATNA = More Power– Develop your assets into a BATNA
• Invent a list of actions you could take if the negotiation fails
• Improve the ideas and convert to practical alternatives• Tentatively select the alternative that seems best
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What if they won’t negotiate?
• You can concentrate on interest / merits not positions.– Everything we have
looked at so far
• If they don’t respond, focus on what they might do. Negotiation jujitsu.
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Negotiation jujitsu
• The typical attack has three parts;– Aggressively asserting
their own position– Attack your ideas!– Attack you!
• You should– Look behind attack for
motivating interests.– Treat their position as one
possible option.– Don’t defend your ideas
• Invite criticism and advice– Re-frame attacks on you
as attacks on the problem– Use more questions, make
fewer statements
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What if they won’t negotiate fairly?
• Deliberate deception– Unless you have good
reason to trust someone, don’t trust them.
– Check facts, assertions, etc.
• Unclear authority– Making you think they
have power to decide– Asking you to concede
but claiming they don’t have power
– Before you begin, ask how much authority they have to make the decisions.
• Questionable intentions of the other side– Make your doubts
public– Negotiate assurances in
the agreement• Creating purposely
stressful situations– Acknowledge the
stressors and ask for some adjustments
• Personal attacks– Recognize it and call it
to their attention• Threats
– Recognize and call attention to it. Treat as pressure.
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Questions?