9.27. Negotiation Fundamentals (REVISED)
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Transcript of 9.27. Negotiation Fundamentals (REVISED)
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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