GEORGIA

BANKERS

ASSOCIATION

Georgia Banking School

2016 Georgia Banking School May 1-6, 2016

UGA Hotel & Conference Center Athens, Georgia

Georgia Banking School

Principled Negotiation

2

Georgia Banking School

Methods of Resolving Conflict

• Negotiation

• Mediation

• Arbitration

• Litigation

3

Georgia Banking School

Personal Negotiation Styles*

• Competing

• Accommodating

• Avoiding

• Compromising

• Collaborating

*Shell, G. Richard. Bargaining for Advantage:

Negotiation Strategies for Reasonable People.

2nd ed. New York: Penguin, 2006. 4

Georgia Banking School

Distributive Negotiation

• Win-lose negotiation

• Assumes a fixed pie

• Inherently adversarial

• Encourages positional bargaining

• Divided

5

Georgia Banking School

Principled Negotiation

• Win-win negotiation

• Seeks to expand the pie

• Encourages collaboration

• Discourages positional bargaining

• Divided

6

Georgia Banking School

The Method of Principled Negotiation*

• Separate the people from the problem

• Focus on interests, not positions

• Invent options for mutual gain

• Insist on using objective criteria

*Fisher, Roger, William Ury, and Bruce Patton.

Getting to Yes: Negotiating Agreement Without Giving In.

3rd ed. New York: Penguin, 2011.

7

Georgia Banking School

Seven Elements of Principled Negotiation*

1. Interests

2. Options

3. Alternatives

4. Legitimacy

5. Communication

6. Relationship

7. Commitment

*Fisher, Roger, and Danny Ertel. Getting Ready to Negotiate.

New York: Penguin,1995.

8

Georgia Banking School

Information Exchange*

• Establishing rapport

• Obtaining information on issues,

interests, and perceptions

• Signaling expectations and leverage

– Deciding whether to open

*Shell, G. Richard. Bargaining for Advantage:

Negotiation Strategies for Reasonable People.

New York: Penguin, 1999.

9

Georgia Banking School

Critiques of Principled Negotiation*

• Incompatible with distributive negotiation

• Requires that all parties be on board

• Ideal in theory, impractical in reality

• Sometimes people are the problem

*Patton, Bruce. “Negotiation.” The Handbook of Dispute

Resolution. Eds. Michael L. Moffitt and Robert C. Bordone.

San Francisco: Jossey-Bass, 2005.

10

Georgia Banking School

Negotiating with Difficult People*

• Don’t react

• Disarm them

• Change the game

*Ury, William. Getting Past No: Negotiating with Difficult

People. New York: Bantam, 1991.

11

Georgia Banking School

Common Tricks and Tactics*

• Deliberate deception

• Psychological warfare

• Positional pressure tactics

*Fisher, Roger, William Ury, and Bruce Patton.

Getting to Yes: Negotiating Agreement Without Giving In.

3rd ed. New York: Penguin, 2011.

12

Georgia Banking School

Recommended Readings

Author(s) Title

Albrecht & Albrecht Added Value Negotiating: The Breakthrough Method for Building Balanced Deals

Bazerman & Neale Negotiating Rationally

Camp No: The Only Negotiating System You Need for Work & Home

Fisher et al. Getting to Yes: Negotiating Agreement Without Giving In

Fisher & Brown Getting Together: Building Relationships As We Negotiate

Fisher & Ertel Getting Ready to Negotiate

Karrass The Negotiating Game: How to Get What You Want

Lax & Sebenius The Manager as Negotiator

Morrison & Calero The Human Side of Negotiations

Raiffa The Art & Science of Negotiation

Shell Bargaining for Advantage: Negotiation Strategies for Reasonable People

Ury Getting Past No: Negotiating with Difficult People

Ury et al. Getting Disputes Resolved: Designing Systems to Cut the Costs of Conflict

*** The Handbook of Dispute Resolution (eds. Moffitt & Bordone)

13