Building Your Leadership Skills:

Negotiating for Value

Christiana Iyasere MD, MBA Meridale Baggett, MD

June 7, 2016

ne·go·ti·a·tion

nəˌɡōSHēˈāSH(ə)n: a

dialogue between two or

more people or parties

intended to reach a

beneficial outcome

We negotiate every day in things big and small…

We know negotiation matters…

Do Not Negotiate

36%

Men 57%

Negotiators 64%

Women 7%

Negotiators increased their salary by > 7%

You will have to work 8 more years to be as wealthy as your

counterpart at retirement

If it matters, why don’t we do it?

We don’t prepare

Unsure how

Too busy

We don’t realize we are negotiating

Unclear expectations

Lack of transparency

It feels bad

“Greedy”

Reputational risk*

Understand when you are negotiating

If it matters, why don’t we do it?

We don’t prepare

Unsure how

Too busy

We don’t realize we are negotiating

Unclear expectations

Lack of transparency

It feels bad

“Greedy”

Reputational risk*

Understand when you are negotiating

Uncover opportunities to build value

Learn tools to help you prepare

Build long term strategies

Develop skills over time & improve

Mitigate reputational risk

Overview of Session

• Fundamental concepts and terminology

• Application: deconstruct past negotiation

• Build toolbox of negotiation skills

• Application: prepare for future negotiation

Past Negotiation: 5 minutes each

Types of Negotiation Distributive

Parties compete over distribution of fixed sum of value or resources

Integrative

Parties cooperate for mutual benefit by building value for both parties

Divide the pie Grow the pie, then divide it

Goal = claim value Goal = create and claim value

Spectrum of Negotiation

Distributive Integrative

Example of negotiation

Distributive Integrative

Favors those in strong negotiating positions, potentially those willing to bend the truth

Benefits: Create and capture value Build and sustain critical relationships Enhance your personal credibility

Positions vs Interests

Positions: what each party is asking for

Even if positions are at odds, interests might not be; opportunity to create value

Interests: why they are asking for it

Positions vs Interests

A

B

Your position

Their position

Your interests Their interests

Zone of possible agreement

POSITIONS

INTERESTS

Alternatives

• Possibilities that each party has if no agreement is reached

• BATNA: best alternative to a negotiated agreement

• GOAL = improve existing alternatives or expand your list of alternatives

POSITIONS

INTERESTS

ALTERNATIVES

Applying Positions, Interests and Alternatives

Options

• Possibilities that the parties might agree on

• Generating options takes work

– Interests, not positions

– May involve sharing information

POSITIONS

INTERESTS

ALTERNATIVES OPTIONS

Criteria

• External standards of legitimacy against which to measure possible agreements

• Can be used as a shield or a sword

POSITIONS

INTERESTS

ALTERNATIVES OPTIONS

CRITERIA

Applying Options and Criteria

Putting it all together

Position: what

Interests: why

Alternatives:

Possibilities if no agreement

Options:

Possibilities both parties agree on

Criteria:

Objective measures to judge options

POSITIONS

INTERESTS

ALTERNATIVES OPTIONS

CRITERIA

Building your toolkit

Interests

Yours Other party’s

Current Alternatives

Yours Other party’s

Interests/Alternatives

Yours Personal Reflection

• Who/Where are you?

• Who/ Where would you like to be in the future?

Reflect with Others

• People who know you well

• People with similar interests/objectives

Other Party Networks

• Who do I know?

• 6 degrees of separation

Google-able facts

• Salary, competitive forces

Negotiation discovery

• Interests, role

Improving Your BATNA : Preparing for The Future

Day Zero Future Date

Be creative and have an open mind •Multiple Interviews •Grow your networks •Consult in the field •Acquire new skills

Hard Work

Options

Yours Other party’s

Options

Yours Personal Reflection:

• What do I need to make this opportunity work?

•What would ideal look like?

Reflect with others:

• How have others done something similar?

Other Party What do they need to make this opportunity work?

• Networks

• Google-able facts

• Negotiation discovery

Criteria

Criteria

Reflect with others

- Current situation

- Competing offers

Industry Standards

- Networks: Friends, family, FOF

- Google

Negotiation Discovery

Looking forward: a future negotiation

Preparing for Future Negotiation

Individual Work: 10 minutes: Complete worksheet Paired Work: Goals: Double your alternatives, options 15 minutes: First person shares, brainstorm 15 minutes: Second person shares, brainstorm

Bringing it all back….

Personalization of Negotiation

Strengths & Weaknesses Strategies

How strong are my networks? Utilize networks of others

What conversations do I enjoy? Avoid?

Build in natural opportunities to play to strengths Practice uncomfortable conversations

How do I naturally get information?

Play to strengths

Do I procrastinate vs. prepare? Build in timelines

What are my emotional “hot buttons”?

Anticipate triggers and create check points

How creative am I in solutions? Do I get emotionally anchored?

Bounce ideas off of others

It matters, lets do it…

We prepare

Unsure how

Too busy

We realize we are negotiating

Unclear expectations

Lack of transparency

It feels natural

“Greedy”

Reputational risk*

Understand when you are negotiating

Uncover opportunities to build value

Learn tools to help you prepare

Build long term strategies

Develop skills over time & improve

Mitigate reputational risk

1) Reflect on negotiations in everyday life; find the good and the bad 2) Think about your strengths and weaknesses 3) Debrief after the negotiation you just prepared for

Negotiate!

Questions, thoughts, concerns: mbaggett@ partners.org ciyasere@partners.org