01 Proactive Negotiation

2003 Debt Management Conference

Proactive Negotiation: Leading the Conversation

with Confidence

Charles DoranMediation Works Incorporated

2003 NCHELP Debt Management Conference

A Negotiation ExampleWhat follows is a transcript of a radio conversation between a U.S. naval ship and Canadian authorities

off the coast of Newfoundland. Canadians: Please divert your course 15 degrees to the south to avoid a collision. Americans: Recommend you divert your course 15 degrees to the north to avoid a collision. Canadians: Negative. You will have to divert your course 15 degrees to the south to avoid a collision. Americans: This is the Captain of a U.S. Navy ship. I say again, divert YOUR course. Canadians: No. I say again, you divert YOUR course. Americans: THIS IS THE AIRCRAFT CARRIER U.S.S. LINCOLN, THE SECOND- LARGEST SHIP IN THE

UNITED STATES' ATLANTIC FLEET. WE ARE ACCOMPANIED BY THREE DESTROYERS, THREE CRUISERS AND NUMEROUS SUPPORT VESSELS. I DEMAND THAT YOU CHANGE YOUR COURSE 15 DEGREES NORTH. I SAY AGAIN, THAT'S ONE FIVE DEGREES NORTH, OR COUNTER-MEASURES WILL BE UNDERTAKEN TO ENSURE THE SAFETY OF THIS SHIP .

Canadians: This is a lighthouse. Your call.


What Is Wrong What Might Be Done

In

Theory

In The Real World

Step II. Analysis

Step III. Approaches

Step IV. Action

Step I. Problem

Quadrant Chart - Overview


Conflict can Be constructive or destructive

Be energizing or unnerving

Produce higher quality results or stifle a project

Lead to original thinking or cause destructive power struggles


Conflict can be Constructive

Taps creativity and problem solving Generates new solutions Increases involvement Improves communication Releases pent-up emotion Builds cohesiveness Helps individuals and teams grow


Conflict can be Destructive Reduces productivity Destroys morale Spawns additional conflict Polarizes groups Produces regrettable behavior Diverts energy Deepens differences


Interest in achieving OUR goals

high

low

Interest in seeing the other achieve THEIR goalshigh

Negotiation Styles



high

lowInterest in seeing the other achieve THEIR goals

high

Useful for:•Issues of low importance•Reducing tensions•Buying time•Low power

“I’ll think about it tomorrow”

Avoiding

x



high


high

“My way or the highway”

Useful for:•Quick action•Unpopular decisions•Vital issues•Protection

Competing

x



high


high

“It would be my pleasure”

Useful for:•Creating good will•Keeping the peace•Retreating•Low importance

Accommodating

x



high


high

“Let’s split the difference”

Useful for:•Moderate importance•Time constraints•Temporary solutions•Equal power & strong commitment

Compromising

x



high

low

Interest in seeing the other achieve THEIR goals

high

x

“Two heads are better than one”

Useful for:•Integrating solutions•Learning•Merging perspectives•Gaining commitment•Improving relationships

Collaborating



high

low

Interest in seeing the other achieve THEIR goals

high

Compromising

Avoiding Accommodating

Competing Collaborating

Negotiation Styles


Offer/Position

Final Offer Last Offer

Last & Final Offer

Last & Final Offer

Last Offer

Final OfferOffer/Position

Threat/BATNA

Threat/BATNA

?

Positional Haggling


A Framework for SuccessCOMMUNICATION RELATIONSHIP

COMMITMENT ALTERNATIVE

If “Yes” If “No”

INTERESTS

OPTIONS

LEGITIMACY


Interests Definition

Needs, concerns, goals, desires and fears that motivate us to negotiate.

Measure Satisfies both parties’ interests to make durable

outcome Note

Interests Are Different From Positions Positions are not the only way to meet our interests


Options Definition

Range of possibilities on which the parties might agree. Measure

Maximizes creative potential Leaves no joint gains on the table Minimal waste

Note Options are different from Alternatives Options are created “On the table” Separate option generation from option selection


Alternatives & BATNA Definition

Things we can do, either by ourselves or with a third party, without the other side’s agreement. Our “BATNA” is our Best Alternative To a Negotiated Agreement.

Measure Any outcome should be better than our BATNA

Note Alternatives are created “Away from the table” Develop or improve your BATNA


Legitimacy Definition

The perception of fairness by the parties as determined by outside standards or criteria.

Measure Result perceived as fair; no one feels taken.

Note Sources of legitimacy include: law, precedent,

community standards, expert opinion, industry practices, and market prices.

Be open to persuasion


Communication Definition

The medium through which we negotiate. Communication is the exchange of thoughts, messages, or information by speech, signals, writing, physical cues, or other actions.

Measure Effective, Efficient and Authentic Message sent = message received Speaker feels heard, and the listener feels involved

Note Don’t assume we understand or are understood


Relationship Definition

The quality of interaction between the negotiators.

Measure The process we use today improves our ability

to negotiate tomorrow. Note

Treat every relationship as long term Having a good working relationship does not

mean we always agree.


Commitment

Definition An agreement about what each party will or will not

do. Measure

Sufficient / Realistic / Operational Aligned with readiness of the parties

Note Many possible degrees of commitment

• Drafts, joint recommendations, agreement in principle, binding contract.


Proposed Definition of Success

An optimal agreement is one that:

Is better than our Best Alternative To a Negotiated Agreement, our BATNA

Meets both sides’ Interests Is the best of many Options Is Legitimate, supported by criteria that is objectively fair Improves, supports, or at least does not damage, the

Relationship Is based on clear Communication Identifies Commitments that are operational


CONCLUSION - An Unconditionally Constructive Strategy for Leading Negotiations

Balance inquiry and advocacy Question to understand Separate the people from the problem Encourage two-way communication Be reliable and expect reliability Use persuasion, not coercion Take the time to define the value of collaboration Work together to find a mutually beneficial solution


UNCONSCIOUSINCOMPETENCE

Learning Cycle

CONSCIOUSINCOMPETENCE

CONSCIOUSCOMPETENCE

UNCONSCIOUSCOMPETENCE


Books by Roger Fisher Roger Fisher and William L. Ury, Bruce Patton (Editor), Getting to YES, New York: Penguin Books, 2nd Edition, 1991. •Roger Fisher and Scott Brown, Getting Together: Building Relationships as We Negotiate, Boston: Houghton Mifflin, 1988.

•Roger Fisher Alan Sharp, Getting It Done: How to Lead When You're Not in Charge, New York: Harper Collins, 1998.

•Roger Fisher and Danny Ertel, Getting Ready to Negotiate: The Getting to Yes Workbook, New York: Penguin Books, 1995. •Roger Fisher, Elizabeth Kopelman and Andrea Kupfer Schneider, Beyond Machiavelli: Coping with Conflict, Cambridge: Harvard University Press, 1994. •Roger Fisher, Improved Compliance With International Law, William S. Hein & Co., Inc., January 1981. •Roger Fisher and William L. Ury, International Mediation: A Working Guide - Ideas for the Practitioner, Cambridge: Harvard Negotiation Project, 1978.

Negotiation Bibliography – page 1 of 3


•Lawrence S. Bacow and Michael Wheeler, Environmental Dispute Resolution, Cambridge: Perseus Books, 1984.

•J. William Breslin and Jeffrey Z. Rubin, Negotiation Theory and Practice, Cambridge: Program on Negotiation Books, 1995.

•Herb Cohen, You Can Negotiate Anything, New York: Bantam Books, 1980.

•Lavina Hall, Negotiation Strategies for Mutual Gain, Newbury Park: Sage Publications Inc., 1993.

•Deborah M. Kolb, Ph. d. And Judith Williams, Ph. d., The Shadow Negotiation, New York: Simon & Schuster, 2000.

•Arthur Lall, Modern International Negotiation, New York: Columbia University Press, 1966.

•David A. Lax, and James K. Sebenius, The Manager as Negotiator: Bargaining for Cooperation and Competitive Gain, New York: Simon & Schuster Trade, 1986.

•Roy J. Lewicki (Editor), David M. Saunders (Editor) and John W. Minton (Editor), Negotiation: Readings, Cases, and Exercises, New York: McGraw-Hill Companies, 1998.



•Bruce Patton, Douglas Stone, Sheila Heen, Difficult Conversations: How to Discuss What Matters Most, New York: Viking, 1999.

•Howard Raiffa, John S. Hammond, Ralph L. Keeney, Smart Choices: A Practical Guide to Making Better Decisions, Cambridge: Harvard Business School Press, 1999.

•Jeffrey Z. Rubin and Dean G. Pruitt, Social Conflict: Escalation, Stalemate and Settlement, New York: McGraw-Hill Companies, 1993.

•Jeffrey Z. Rubin and Dean G. Pruitt, Sung Hee Kim, Social Conflict: Escalation, Stalemate and Settlement, New York: McGraw-Hill Companies, second edition 1994.

•Eric Rasmusen, Games and Information: An Introduction to Game Theory, Blackwell Publishers, 1994.

•Thomas C. Schelling, The Strategy of Conflict, Cambridge: Harvard University Press, 1990.

•G. Richard Shell, Bargaining for Advantage, New York: Penguin Books, 1999.

•Timothy J. Sullivan, Resolving Development Disputes through Negotiations, Cambridge: Perseus Books, 1984.

•William L. Ury, Getting Past No: Negotiating Your Way from Confrontation to Cooperation, New York: Bantam Books, 1993.

•I. William Zartman and Maureen Burman, The Practical Negotiator, New Haven: Yale University Press, 1983.



About Mediation Works Incorporated

MEDIATION WORKS INCORPORATED www.mwi.org

Mission Statement: Mediation Works Incorporated is dedicated to providing innovative dispute resolution services and training to clients seeking to resolve difficult disputes.

Training Programs and Workshops Negotiation Skills Workshops Mediation Training Dispute Resolution Seminars

Dispute Resolution Services Business and Workplace Mediation Services Divorce and Family Mediation Services Organizational Ombuds Services Facilitation Services

Please call 800-348-4888 or visit <www.mwi.org> for more information and a free quote.


Mediation Works Incorporated offers Customized On-site Negotiation Skills Workshops for groups within a particular organization. Customized On-site Negotiation Skills Workshops enable organizations to:

• Provide individuals and groups across the organization with a shared vocabulary and common set of skills and tools to help them negotiate more effectively;

• Address organization-specific negotiation challenges by using customized role-plays and cases based on participants’ “real-world” scenarios ;

• Focus on particular areas of negotiation effectiveness such as: dealing with difficult people and tactics building long-term, strategic relationships communicating effectively influencing and persuading others managing differences in perceptions managing roles in multi-party negotiations

• Maximize resources by offering local workshops for groups of employees rather than sending them individually to public workshops

• Decide on a convenient time and location for the workshops which complements the schedule of the employees/organization

In addition, MWI’s Negotiation Skills Workshops build each participant’s capacity to transform adversarial approaches to negotiation into problem-solving collaborations, producing better outcomes for all parties while enhancing long-term working relationships. Each training workshop is designed to:

Stimulate participants’ awareness of the complexities of negotiation Equip participants with a framework for understanding, diagnosing and leading the negotiation process Enhance participants’ skills through hands-on experience and feedback Provide participants with a process for continued improvement and learning

MWI Negotiation Skills Workshops – page 1 of 4


Conceptual Foundation of MWI’s Negotiation Skills Workshops

MWI's Negotiation Skills Workshops build on the ideas and frameworks developed by Professor Roger Fisher and his colleagues at the Harvard Negotiation Project at Harvard Law School. Based on the best-selling book Getting to Yes, the training workshops feature the key elements of Fisher's model, widely known in the field as “integrative bargaining” or “principled negotiation.” Representing a landmark shift in how negotiation is understood and conducted, Fisher's ideas have been implemented throughout the world in all sectors of society, from community-based disputes to intra-organizational conflict to public policy debates. For years, experienced practitioners have reported that training in principled negotiation has increased their confidence and competence.

WORKSHOP METHODOLOGY

Following the teaching model of the Harvard Negotiation Project, MWI uses a hands-on, interactive, skill-centered method of teaching negotiation. Each day of the workshop, core concepts and frameworks are presented in an interactive style to the participants. Building on the interactive presentations, each day centers on case simulations in which participants actually negotiate and apply the theory they are learning. Case simulations are drawn from the teaching materials developed and used by the Program on Negotiation at Harvard Law School. After completing each case, instructors lead participants through a systematic analysis of the negotiation. During the analysis portion, emphasis is placed on bringing out the experience and expertise of the group and organizing their ideas into a useful set of guidelines for negotiating in the future.

Portions of the training workshop will be spent: learning a new systematic framework for preparing for, conducting and reviewing negotiations; participating in exercises designed to enhance and highlight particular skills; watching demonstrations of new techniques; and debriefing exercises in small group discussions.



PREPARATION FOR THE WORKSHOP: DIAGNOSTIC PHASEIn order to provide the most relevant training possible for participants in a given organization, MWI conducts “diagnostic” interviews by phone and/or in person prior to the Negotiation Skills Workshop with a cross-section of employees who will be participating in the workshop. The goal of conducting the diagnostic interviews is for MWI to gain a better understanding of the internal and external negotiation challenges the workshop participants are facing and gain a broader understanding of the structure, business and purpose of the organization in order to:Effectively address organization specific negotiation challenges in the workshop; and create organization specific case studies and role-plays for the participants in the workshop. All information provided to MWI will be held in strict confidence.

STRUCTURE OF CUSTOMIZED ON-SITE NEGOTIATION SKILLS WORKSHOPSTypical on-site programs vary from one to five days in length. The shorter programs (one-day workshops) provide participants with a basic awareness of their current assumptions about negotiation and a conceptual understanding of the “Seven Elements of Negotiation” framework. The longer programs (three- to five-day workshops) enable participants to improve skills by preparing, conducting and reviewing multiple simulated cases, in addition to learning the theory of negotiation effectiveness. Shorter programs focus largely on simple frameworks for preparing for and conducting transactional negotiations. Longer programs expand to include a range of modules depending on client needs, including but not limited to: dealing with difficult people and tactics; communicating effectively; influencing and persuading others; managing differences in perceptions; and managing roles in multi-party negotiations.

PRAISE FOR MWI'S NEGOTIATION SKILLS WORKSHOPS“The trainers were very involved. They were very interested in our particular situation here at [our company].”“I have learned a vast wealth of knowledge on, and a practical appreciation for, the art and theory of negotiation in all of its capacities.”“The trainers were excellent – they were very well organized and worked well as a team. I attend a lot of presentations and this is one of the best.”“The cases were very interesting and realistic and made us want to learn the techniques needed.”“The teaching staff was superb – very good at demonstrating ideas and leading us in developing them for ourselves.” “I found it valuable to get to the underlying interests behind positions, as this can bring up options that are mutually beneficial but not inherently obvious.”



For more information about MWI’s Negotiation Skills Workshops, including a detailed proposal, please contact me at 800-348-4888 x22 or <[email protected]> with questions. Thank you. Sincerely,

Charles DoranExecutive Director Mediation Works Incorporated9 Park Street - Sixth FloorBoston, MA 02108-4807 Phone: 617-973-9739 x22 / 800-348-4888Fax: 617-973-9532E-mail: [email protected] Web: http://www.mwi.org/


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