Negotiation: New Options

Elizabeth Suárez MBA, ADRDirector of Denver HERS Institute

Higher Education Resource Services@elizabethsuarez, #HERSDenver16

elizabeth.suarez@du.eduhttp://hersnet.org

Why Negotiate?

“ The reason you negotiate is to produce something better than the results you can obtain without negotiating”

Source: Getting to Yes (page 100)

Why Care @ Negotiation“Any time you can not reach your goals without the cooperation of someone else….... YOU ARE NEGOTIATING!”

Professor Leigh Thompson

Kellogg School of Management

Northwestern University

Quick Discussion

• Think about a recent negotiation which had a positive outcome.

• What contributed to the positive outcome?

• Think about a recent negotiation which had a negative outcome.

• What contributed to the negative outcome?

Did You Know?• 2.5 times more women than men said they feel “a

great deal of apprehension” about negotiation.

• Men initiate negotiations about 4 times more often than women.

• 20% of women say they never negotiate. They do recognize negotiation is necessary

The Reality• Women cap their salary growth by age 37 & men by

age 45• Women’s cap = $62,000

• Men’s cap = $95,000

• Salary is offered• 7% of women negotiate offer

• 57% of men negotiate offer

• Women would need to work an extra 8 years to reach men’s wealth

Source: Linda Babcock, Women Don’t Ask

So, Why is That?

• Women fear being penalized for coming across to assertive and demanding

• Women negotiate better on behalf of others than on their own behalf

Source: Columbia University Research, 2015

Today’s Reality• You must prepare yourself mentally.

• This is not a dead-end….it is a cul-de-sac

• Being afraid and unprepared might come across as anger

• It is all about perception...and everbody has a different one

Women Must Realize

“In life you don’t get what you deserve, you get what you negotiate”

Krishna Sagar

In conflict….

1. Both parties tend to believe that their opinion is fact

1. Both parties see themselves as the victims

1. Result should not generate winners and losers

2. You must make sure to acknowledge the other party’s feelings, etc.

Conflict – Key Messages

In Negotiation….

1. Both parties need to prepare

1. Both parties need to compromise

1. Resolutions are reached

2. You must know your opportunity cost (BATNA)

3. Decision making structures must be discussed

Negotiation – Key Messages

What are the Issues?• Women set lower goals

• Women don’t ask – Women don’t claim

• Women don’t choose to negotiate on some occasions like men do

• Women believe assertiveness won’t be looked upon well

• Women who ask are seen ‘less nice’

Chicago University – Negotiation Gender & Race Study

November 2015

Why do these Issues Exist?

• Structural Ambiguity• Scripted versus Unscripted

• Advocacy• Self versus on behave of

others

So what can WE do about it?

Communicate & Negotiate

Opportunity Cost (BATNA)

Embrace Conflict & Bargain

Success!

Consider the following…

An Example

Attempt from “M” to negotiate some professional development budget for herself.

• Mentioned the interest in a staff meeting

• Follow up with direct supervisor: Reasons to go didn’t illustrate necessary benefits for department

• Response: “Our department budget has been cut by 12%. This called for the cut of all professional development monies”

Negotiation & Communication Is A Partnership

Resolve Settle

Communication Process

Active Listening Skills

ContinueDiscussion

Negotiation is a Process

Step #2: Opening

Step #4: Problem

Solving

Step #5: Agreement

Step #3: Information

Sharing

Step #1: Pre-Negotiation

Bottom line why we need our BATNA

“The general lesson is to think through what will really happen if there is no deal – not just one step ahead…but two or three steps ahead…Best-practice BATNA analysis requires constantly asking yourself, ‘and then what happens?’ until you are satisfied that all parties involved have reached stable ground and won’t react to your moves any further.”

Professor Guhan Subramanian, Harvard Law School

Opportunity Cost (BATNA)

1. Make a choice between options

1. Could be easy decision making if you knew end outcome

2. The benefits you could have received by taking an alternative action (not

negotiate)

1. Must analyze and determine risk to achieve ‘greater benefits’ by choosing

from one of the options (negotiate or not negotiate)

Opportunity Cost…BATNA

1st Step: Determine all your available options

2nd Step: Realistically estimate your counterpart’s alternatives/options

3rd Step: Combine both and try to figure out potential resolutions that benefit both parties

4th Step: Hopefully engage into negotiation

Source: Best Alternative to a Negotiated Agreement (Robert Fisher & William Ulry)

The Steps

Scenario

• 2 Chairs assigned to the same department are not getting along

• Chair A (Academic Chair) has been in the school for 2 decades & goes behind Chair B’s back for any analysis and decision making

• Chair B (Endowed Chair) was recently hired & complains about Chair A’s actions to administration

• New hired Dean is not honoring the prior Dean’s promise to take care of Chair B at all times!

• Chair B wants immediate step-down of Chair A (after all, ‘he is passed retirement age’) Chair B wants to become the Academic Chair.

• Chair A won’t step down until he is ready and wants Chair B to leave the department.

What are each parties’ Opportunity Cost (BATNA)?

Should they negotiate?

Effective Bargaining?

• It is ok to feel uncomfortable

• Conflict generates solutions…creativity at it’s best

• Bargaining Styles to move forward

Embrace Conflict with Bargaining Styles

• People tend to favor/default 1 or 2 styles

• People can learn how to use ALL styles effectively

• It all depends on the negotiation when choosing a style(s)

• Results:• 30 to 70 is ideal• 70+ is default

Bargaining Styles

• Description:• Knows how to work the power part in any negotiation

• Let’s make a decision ~ quick decisive action

• Focus on the outcome

• Behavior:• Will do and say anything that can grant the person the

capability of winning

• High level of assertiveness

• Low level of cooperation

• Knows how to open, position, leverage

• Best to Use:• When decision must be made

Competing Style

• How to manage:• Go off-line for follow-up discussion

• Don’t try to ‘one-up’ the other person

• Focus on the long-term outcome

• Don’t assume the person doesn’t like or respect you

Competing Style

• Description:• Team player

• Helping others

• Focus on interaction

• Strong emphasis on preserving relationships

• Behavior:• Very sensitive to others’ emotions, actions, etc.

• High levels of cooperation

• Excellent listener; but sometimes lacking the courage to speak up about self

• Best to Use:• Negotiating for the long term

• When at fault

Accommodating Style

How to manage:

Question @ how it benefits them

Identify & share how others can accommodate

Accommodating Style

• Description:• Assertiveness = Cooperation

• Splits the difference to gain an agreement

• Always looking for ways to close the gap

• Can find timely solutions

• Value fair and equal deals

• Behavior:• When involved, negotiation moves effectively and get fast results

• Best to Use:• Move negotiation forward

Compromising Style

How to manage:

Ask questions

Determine if it is worth it to compromise once again

Explain why compromising

Compromising Style

• Description:• Facilitate the process

• The question asker

• Looks at different alternatives

• Out of the box thinker/creative solutions

• Shows high levels of cooperation

• Behavior:• Very engaged and highly interactive during a negotiation

• They gain pleasure from solving the problems facing a committee, group, etc.

• Best to Use:• Understand issues of other party

• In reality; all of the time

Collaborating Style

How to manage:

Stop analysis paralysis ~ summarize findings

Move process forward

Collaborating Style

• Description:• Might not get involved in the discussion

• When necessary, uses technology to their benefit(emails, voice mails)

• Behavior:• Has figured out how to defer or miss any type of discussion that

may be controversial

• May come across as diplomatic b/c of conceding not challenging

• Smallest actions can speak volumes!

• Best to Use:• Great for ‘cooling off’ periods

• When issue under negotiation is trivial

Avoiding

Avoiding Style

How to manage:

Face to face

Follow up

Avoiding Style

Key Points

• Embrace your main style(s)

• Identify your counterpart’s style(s)

• Develop a plan on how you are going to learn more about using all 5 styles effectively

Competing:

Accommodating:

Avoiding:

Collaborating:

Compromising

Collaborate, Avoid

Collaborate

Collaborate, Competing

Competing

Collaborate, Accommodate

What Style Should I use?

• A successful outcome depends on:• Meeting the other person where they are at• How you come across and what you say• How you show support, curiosity, problem solving, engagement• How you manage your dynamic opportunity cost & Bargaining

Styles

• Don’t assume your opponent/partner can see things from your point of view.

• Practice the conversation with a friend before holding the real one.

• Envision the outcome you are hoping for.

• Remain Positive

• Acknowledge the person’s distress

• Pause to reflect on what has been said

• Restate your interest in resolving the issue

• Discuss the person’s behavior at a later time and in private

Handling Unproductive Reactions

In Negotiation & Conflict Resolution:

1.If you don’t try it, you will never improve

1.If you don’t ask for it, the answer is always going to be NO

2.If you don’t step out of your comfort zone, you will always stay in the same place

Bottom Line

“Let us never negotiate out of fear. But let us never fear to negotiation

John F. Kennedy, President of the United States

Table Discussion

• Which style is the most difficult for you to manage? Why?

• Identify 1 to 2 tactics you will use in the future to help you manage these difficult styles?