Transcript BASIC MEDIATION TRAINING

Getting to Win-Win in
Negotiation
Government Finance Officers Association
Art Hinshaw
Director, Lodestar Dispute Resolution Program
Sandra Day O’Connor College of Law
Arizona State University
August 8, 2007
© 2007 Arizona State University College of Law
Agenda
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Background
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Interest Based Negotiation
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Nuts and Bolts
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Exercise
Negotiation – Background Info
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Problem Solving
Context Matters
Words and Deeds
Reputation
Social Activity
The Right Way
Comfort Level
Uncertainty
Misteaks
Primary Negotiation Strategies
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Adversarial / Position Based
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Problem Solving / Interest Based
A Few Adversarial / Position
Based Negotiation Tactics
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Extreme claims with later small concessions
Take it or leave it offers
Personal insults and feather ruffling
False demands
Threats and warnings
Good cop, bad cop
Problem Solving / Interest
Based Strategy
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Separate people from the problem
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Focus on Interests, not Positions
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Invent options for mutual gain
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Insist on objective criteria
From - R. Fisher, W. Ury, and B. Patton, Getting to Yes (1991)
Interests Instead of Positions
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The purpose of negotiation is to serve your
interests
Positions are what people say they want
Interests are needs underlying the position
Ask why and why not
Basic needs are powerful interests - security,
control of one’s life, recognition
Types of Interests
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Substantive
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Procedural
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Psychological
Justification Questions
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What works for you in this proposal?
Why are you upset with the current situation?
What would about the current situation would
you like to be different?
If you get what you ask for, what problem
would that solve?
What in this option does not work for you?
Interest Based vs. Position
Based
When you are trying to be interest based and
the other is not, what do you do?
1. Suspend your reaction
2. Defuse hostile emotions
3. Look for their interests
4. Ask why and why not
5. Educate
Best Alternative to a Negotiated
Agreement (BATNA)
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Standard against which to judge any proposed
agreement
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BATNA equates to power in negotiations
A Successful Negotiation
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Better than your BATNA
Satisfies interests
Yours – well
 Theirs – acceptably
 Others - tolerably
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Legitimate
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Commitments
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Fairness
Well planned and realistic
Otherwise walk to BATNA
“It’s All About Money”
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Reflects interests
Reflects BATNA
Is a language
Is symbolic
Is certain and immediate
Can mean many things at once
Nuts and Bolts
Negotiation Preparation
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No such thing as too much preparation
Interests
 BATNA
 Setting goals
 Criteria
 Offer and Concession strategies
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Negotiate the process?
Distributive Issues
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Caution - Too soon?
Offers and responses
First offer
 Concession strategies
 Credibility
 Language
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Agreement – are we done?
First Offers
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Advantages
Set expectations
 Elicit genuine reaction
 Strategic advantage
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Timing, BATNA, Information
Disadvantages
Lack of info to appropriately set
 Other side gains info
 Bracketing
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First Offers – contd.
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Determining the offer
Your original goal
 Most aggressive, yet reasonable point
 Give yourself room to move
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Expectation for the dance?
 Analyze other’s interests, BATNA, negotiation style, etc.
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First Offers – contd.
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When you should make them
Sophisticated parties w/ substantial access to
information
 Complex non-price issues
 Technically detailed agreements
 You have more info, defined standards, or a strong
BATNA
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Making Offers and
Concessions
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Be specific and detailed
Explain offer’s rationale
Tie it to standards
 Before stating the offer
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Use an air of finality & increasing rigidity
Avoid ranges
Be ready to react
Specific Language Tips
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Significant flexibility
“My asking price is”
 “I’m looking to get”
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“first offer” “non-negotiable” “bottom line”
Middle flexibility
“Because of . . . I’m willing to . . .”
 “This is fair and reasonable because. . .”
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“bottom line” “final offer
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Specific Language Tips –
contd.
Total inflexibility
“I’ve given this a great deal of thought, and it’s
the best I can do”
 “If I move any more, it’s not worth it for me”
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“take it or leave it” “frankly”
Reaction to an offer
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“I’m disappointed with your offer. It builds in a
30% profit margin and that’s out of line in this
market”
Closing the Deal
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Focus on the other’s gains, not their loss
Beware of “nibbling”
Watch the “take away”
Make the last concession
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Even if it is small
Blast Exercise
More Practical Advice
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Getting to Yes
by Fischer, Ury and Patton
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Gain the Edge! Negotiating to Get What You
Want
by Martin E. Latz
Questions and Answers