NEGOTIATING YOUR FAIR SHARE From the University/School of Medicine Carol L. Lake, M.D., M.B.A., M.P.H.

Professor and Chair Associate Dean for CME University of Louisville

ROLES OF A DEPARTMENT CHAIR

ADVISOR CFO CEO NEGOTIATOR MENTOR FUNDRAISER COO VENTURE CAPITALIST MANAGER

FACTS ABOUT NEGOTIATION  Negotiation is a fact of life!

 Everyone negotiates something every day!

Definition

Negotiation is an exercise in

discovery, conflict, and compromise

in which success depends upon parties who believe that they will gain more by working together than by being apart.

STAGES OF NEGOTIATIONS

THE FOUR P’S

PREPARE PLANNING ANALYSIS INFORMATION EXCHANGE, DISCUSSION BARGAINING CLOSING & COMMITMENT

The Basics of Negotiation



ANALYSIS AND PLANNING

– Identify negotiation situations – Identify the relevant parties and their goals – Assess the relative power, influence, and control of the parties – Define the issues – Assess the psychological and other intangible factors operating to modify or distort achievement of tangible objectives

ANALYSIS-continued – Recognize variations in negotiating style based upon personality types – Distinguish between interests and positions  Position is what the party wants  Interest is why they want it – Determine when goals and objectives coincide and focus upon these points in designing strategy and tactics (generate a variety of options for mutual gain)

BATNA

– Consider your BATNA (best alternative to a negotiated agreement)  Relative value of negotiating a particular issue with a particular party – Assessing the relative power, influence, and control of the parties (strength of BATNA determines power or leverage each can exercise)

Stages of Negotiation -continued

 DISCUSSION – – Separate the people from the problem Seek to discover other party’s true needs  PROPOSE – Carry out the negotiations  Questions  Active Listening  Start offers high  PERFORM – Measure outcome of the negotiations

NEGOTIATION OUTCOMES

 Relationship-building  Communication – constructive, problem solving conversations  Interests – are they satisfied for all parties?

 Options – have elegant, innovative solutions offering joint gains been found?

 Does the proposed deal satisfy interests better than BATNA when measured against it?

 Commitment – is deal realistic, well-planned, and workable? Will both sides implement it?

Successful Negotiation

 Doing better than the adversary  Maximizing personal gains, independent of how the adversary fares  Minimizing personal losses  Maximizing adversary’s satisfaction (perhaps in exchanged for longterm returns)  Avoiding or minimizing conflict  Optimal gains for all parties

Negotiations with University & SOM

 Building, cultivating, and nurturing your relationship with VPHA, Dean, others  Know your leadership style and influencing strategies  Ensure that your Department is “leading the charge” in SOM activities and new ventures  Focus on quality or value-added aspects of the negotiable activity

Negotiations with University & SOM

 Knowing how to leverage your Department’s organizational knowledge  Understanding the political landscape in which your University or SOM operates  Focus on new ventures

Negotiations with University & SOM

 Link the negotiable item to the“big picture” of University/SOM mission, vision, values  Cultivate relationships with other chairs or the hospital administration who may facilitate/support your needs and goals in a negotiating situation

SHADOW NEGOTIATIONS

 Occur when negotiating parties are not equals: like Deans and Chairs  Power Moves – Offering incentives for proposed change – Putting a price on status quo  Process Moves – – Seed ideas early with one on one talks Reframe the dynamic to shift it away from personal competition  Appreciative Moves – Helps others save face

RELATIONSHIPS

 Both the substance of the deal and the relationship are at stake:

Improve mutual understanding Share information about interests Expand scope of discussions Improve trust & communication Create valuable options

 Motivation of the Univ/SOM = recognition, exchange, immediate satisfaction, saving face  Accept short-term costs or losses for longterm gains

INFLUENCING TECHNIQUES

 Reasoning – reliance on data, discussion and logic  Friendliness- charisma, esteem  Coalition – ability to mobilize other people  Bargaining- exchange of favors or benefits  Higher authority-faculty senate, handbook  Sanctions-rewards, punishments resulting from organizational position

Outcomes of Negotiation

Competition Collaboration* Compromise Avoidance Accommodation

“LEADING THE CHARGE”

 AMC’s face growing competition and uncertain future  Need to update resource allocation methods and educational models  Departments that exploit their internal resources well while seeking additional external resources will be recognized for creative responses to challenging situations and change

LEVERAGING ORGANIZATIONAL KNOWLEDGE

 Effective utilization of organizational knowledge = NEGOTIATING POWER  Definition – unwritten rules, undocumented experiences, and uncaptured expert talent; core competency  Knowledge management – process of capturing knowledge so that it can be described, shared, deployed  Two facets: – Enabling knowledge sharing – Using knowledge to generate value

FOCUS ON “BIG PICTURE”

 Enterprise-wide focus is essential for organizational success  Encourage and cultivate organizational climate for sharing knowledge (don’t hoard knowledge to protect power)  Focus on integrative bargaining (making the pie bigger) rather than distributive bargaining (dividing the pie)

POLITICAL LANDSCAPE

 Universities/SOM do not operate in a vacuum  Regulatory and politics affect what can and cannot be negotiated  Know how BBA, BBRA, BIPA and other legislation affect your SOM and its options

NEW VENTURES

 Creativity – expands possibilities for agreement  Innovation – brainstorming, openness to unanticipated possibilities, active listening to outlandish proposals Greater gains  Change – MOVE THE CHEESE!