9.27. Negotiation Fundamentals

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Negotiation Fundamentals

Kem Lowry

Program on Conflict Resolution

University of Hawaii at Manoa



Objectives for this Session Contrast conventional negotiation

techniques with the interest-based

approach to negotiation Examine key concepts including:

positions, interests, principles, BATNA

Practice negotiation skills

Examine the role of culture innegotiations



Conflict Inventory Who has experienced a conflict

(problem, issue, scrape,

misunderstanding, etc) in the lastmonth?

How did you respond? What was your ³conflict strategy?´



Conflict Resolution Options Avoidance

Capitulation

Suppression Accommodation

Problem solving (e.g. conciliation,negotiation, mediation, facilitation)

Escalation Confrontation



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



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



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



Conventional Negotiation Tactics Good cop/bad cop

Highball/lowball

Bluff Threats

Nibble

Appeals to µreason¶



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

*Roger Fisher & William Ury. 1991.Getting to Yes. 2nd ed. New York:Penguin.



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



Principle 2: Focus on Interests, Not

Positions Positions: What disputants say they

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

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



Focusing on Interests Problem: barking dog

My interpretation: my neighbor

doesn¶t care about my needs My position: quiet the dog

My interest: I need sleep

Issue: how to control the barking



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: What¶s the real source of reef degradation? How can runoff be reduced/controlled?



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)



Principle 3: Invent Options for

Mutual Gain Focus on the variety of ways issues/

interests (yours/theirs) might beaddressed?

Avoid assuming there¶s a singlesolution

Separate brainstorming from

evaluation of options Don¶t assume zero-sum conditions

Think creatively



Principle 4: Insist on Objective

Criteria Fair standards: market value,

precedent, blue book value,

professional standards, ³bestpractice,´ industry average, equaltreatment, etc.

Fair procedures: e.g. last best offers,

taking turns, drawing lots



When is the Interest-Based

Approach Appropriate? Other party is willing to problem-solve

There is sufficient trust and information²ora willingness to develop them

On-going relationships are important

Commitment to carry out the agreement isneeded

Quality agreement is more important thanan expedient one



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)



Prepping for Your Negotiation What are our interests? What are

theirs? How can we find out?

What¶s our BATNA? What¶s theirs? What¶s our WATNA? Theirs?

What do we know about their

circumstances that might affect thenegotiations?

What¶s their negotiation style? Etc.



A BATNA



Negotiating Steps Develop ground rules

Jointly identify issues

Explore interests Develop objective standards

Brainstorm options

Evaluate options using standards Try to reach consensus decision



Adapting General Principles to

Specific Negotiations Pacing: fast or slow?

Formality: high or low?

Oral or written agreements: whichare more binding and inclusive?

Bluntness of communication: direct orindirect?

Time-frame: short or long term? Who negotiates: Equals or most

competent?



Sources of Negotiation Problems Perceptual errors

Unrealistic expectations about likely

outcomes Unwillingness or inability to engage in

real negotiations

Perceived non-negotiability of somedisputes

9.27. Negotiation Fundamentals

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