The Harvard Negotiation Method

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ADVANCED NEGOTIATION

The Harvard Method 7 Elements of Negotiation

Negociación Avanzada.

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Introduction

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What is TO NEGOTIATE ?

“Negotiation is a process of potentially opportunistic interaction by wich two or more parties, with some apparent conflict, seek to do bettel through jointly

decided action than they could otherwise”David Lax & Jim SebeniusHarvard Business School

"Negotiation is a basic means of getting what you want from others.

It is back-and-forth communication designed to reach agreement when you and the other side have some interests that are shared and others

that are opposed."Roger Fisher

Harvard Business School

“Sex apart, negotiation is the most common and problematic involvement of one person with another,

and the two activities are not unrelated”J.K Galbraith

Harvard Business School

“Negotiation is a process in wich interested parties try to reach a mutually satisfactory

agreement…”

Howard RaiffaKennedy School of

GovernmentHarvard University “Negotiatio is a basic means of getting what you want from others. It is

back-and-forth communication designed to reach agreement when you and the other side have some interests that are shared and others that are

oppsed…”William Ury

Harvard Law School

Negociación Avanzada. Reclamar Valor.

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Uncertain (simple)

Complicated Complex

what will I be when I grow

up?

Chaotic

Realities?


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I have only one objectivemy target

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COMPLICATEDProblem

COMPLEXProblem

NEGOTIATION

The negotiation round itself can be seen as a complex or complicated problem.

Expand my vision of the objectives at stake


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THE FACT TO NEGOTIATE

AA

BBHH

EEDD

II

MM

CC FF

LL

AA

BB

EECC

AA

BB


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Synthesis: Complicated versus Complex

COMPLICATED COMPLEX

Closed system Open system

Space limits / Set times Space limits / Indefinite time

Costs / Clear benefits Costs / Hidden benefits

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SPHERE OF INFLUENCE OF THE NEGOTIATOR

Sphere of influence

Sphere ofinvolvement

(results zone)


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Minimum impact on the results

Sphere ofinfluence

Sphere of involvement

REAGENT NEGOTIATOR


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PROACTIVE NEGOTIATOR

Sphere ofinfluence

Sphere of involvement

Maximum impact on the results


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Vision of the problem and the sphere of influenceSPHERE OF

INVOLVEMENT

Simplereading

Complex reading

SPHERE OF INVOLVEMENT

VISION


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Negotiation style?

• Is one whose target is victory at any cost. Doesn't mind the claims of the other party or the future consequences of their actions. Braves negotiations from the perspective of short term.

Tough Negotiator

• Belive that with a good relationship it is possible negotiations in wich everyone benefits. Bases its negotiating strategy in using a friendly communication as the main weapon.

Soft or relational Negotiator

• Faces the negotiation from a objective postulates, knows how to adapt his natural tendency depending on the particular characteristics of the negotiation. It focuses on the interests separating people from the problem.

Principled Negotiator


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Characteristics of a Good Negotiator

Be Impersonal

Think Fast and Clear

Easily and good

expressed Capacity Analysis

and Synthesis

Be PatientFocussed on objectives

Great Empathy

Have Good Humor

Know how to control

himself


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Strategy Types

Distributivestrategies

Cooperativestrategies

Positionalstrategies

Método Harvard

Winning at all costs

Win to Win

Anchored to the

starting points

Create valueClaim value

Manage the Dilemma


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Negotiation process Phases

PreparationPhase

Confrontation Phase

Common Framework Acceptance

Phase

Offer Presentation

Phase

Closing Phase


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ContentRelationship

Negotiation preparation and bargaining process

analysis techniques

Communication skills development techniques

Negotiation: Two skills in wich we operate


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The Harvard Program 7 Elements of Negotiation

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Communication

BATNARelationship

Positions

Differences

Commons

InterestsAims

Stakeholders

Short termMedium term

Long term

Sections

The 7 Elements of Harvard.

Rules of legitimacy

Commitment


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1. BATNA. Best Alternative to a Negotiation Agreement

BATNA (Best Alternative to a Negotiated Agreement)They are the resources available to each part if no agreement is reached. E.g. “We reserve the right to take legal actions”

Aim.- Identify and develop the best alternatives that each part has if ther is no agreement. My BATNA will tell me if I should continue with the negotiation or not.


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Enumerate possible alternatives

WE + - THEY + -

1.2.3.

1.2.3.

Best BATNA

WE THEY


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• Our best BATNA– 1.– 2.– 3.– 4.– 5

• Get worse their BATNA– 1.– 2.– 3.– 4.– 5

► If my BATNA is BETTER than the expected result than I can obtain with the negotiation, the most appropiate is to break the negotiation and execute my BATNA.

► If the BATNA of the other party is WORSE than the results that may be expected in the negotiation, they will make every effort to reach an agreement .


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• Interests vs. Positions• Positions:

– Starting poit, first motivations– They must be become in interests

• Interests:

– Real motivationsPragmatic

Internal

2. INTERESTS - POSITIONS


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Negotiation is a conflict of interests

Sometimes we sacrify an important interest because we are not willing to give in another

with less importance


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“Interests are the raw material of the negotiation. The game of the negotiation is based on their exchange”.

Roger Fisher.Harvard Business School

• Different• Common

List


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Different interestsWe They

1.2.3.

1.2.3.

Shared interests

We They

1.2.3.

1.2.3.


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3. OPTIONS

a) Definition► Points on which agreement might be possible.

► Different ways to satisfy the interests of both parties

► They are the physical translation of the interests

b) Premises to generate options► It is always possible to enlarge the pie

► The pursued values are in the differences

► Separate the process of generating ideas from the making of decisions.► Adapt the appeared ideas to the chosen strategy.


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CAMP DAVID AGREEMENTSEgypt interests Possible options Israel interests

1.Maximum interest:

SOVEREIGNTY

1. Differences interchangeable:

- Egypt desmilitarize the area- Israel transfer the

sovereignty.

1. Maximum interest:

SECURITY

2. Medium interest: Obtein Peace Prestige of the leaders


2. Medium interest:- Obtein Peace Prestige of the leaders

3. Minimum interest:Having armed forces in Sinai


3. Minimum interest:Sovereignty in Sinai


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4. RULES OF LEGITIMACY

It is necessary to pursue the

LEGITIMACY of the agreement.

Each part shall have the FEELING of

having achieved their expectations

The agreement must be FAIR

External and IMPARTIAL models: law, precedents,

international treaties, habits.

Write the Victory Speech

Treaty of Versailles


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5. RELATIONSHIP

The State borns when political organization

ceases to be based on personal relationships

and based on territorial and institutional

relationships.

An agreement last in time when it is based on the object and not

on the subjects.


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Elements of a good relationship

ReasonConverseConvinceConfidenceInfluenceAcceptance

EmotionPreachImposeMistrustPressureNegation


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• The efficient negotiation requires effective bilateral communication

• Define a communication system dominated by both parts.

• Consider cultural differences• No hurry. Deliberate and clear messages.• Form and substance.

6. COMMUNICATION

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METHODOLOGY

My suppositionsWhat could

understand themNew approach

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.


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Verbal or written approaches which specify what is going to do or not each part.

APPROACH

STRUCTURE

EXECUTION

COMMITMENT

7. COMMITMENT


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METHODOLOGY

1. Last commitment draft

2. Last commitment

A. Previous steps: ¿Authority?, ¿Who and what will do everyone?, ¿Incentives for compliance?

B. Documentary and reliable composition of the responsabilities of each part.


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NEGOTIATION STRATEGY• 1. OBJECTIVES OF THE PARTS

– SHORT, MEDIUM AND LONG TERM– VISIBLE AND HIDDEN– STAKEHOLDERS

• 2. THE PROCESS. THE SEVEN ELEMENTS

• 3. TO MANAGE THE DILEMMA OF THE NEGOTIATOR– THE SECTIONS

INTERESTOPTIONS

GUIDELINE

RELATIONSHIP AND COMMUNICATION

BATNACOMMITMENT


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“The good negotiator is one who knows CREATE

VALUE without becoming vulnerable to those who

CLAIM and identify the right time TO CLAIM”


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Executive Education Plan

C/ Calendula 93. Miniparc III. Edificio E.El Soto de la Moraleja.

28109- Alcobendas (Madrid).

[email protected]. 91 116 58 16Fax. 91 829 84 39

The Harvard Negotiation Method

Business

Transcript of The Harvard Negotiation Method