Transcript Negotiation Rex Mitchell Fall 2011 Negotiation • Conferring with another so as to arrive at the settlement of some matter (dictionary) • Negotiation is a.

Negotiation
Rex Mitchell
Fall 2011
Negotiation
• Conferring with another so as to arrive at the
settlement of some matter (dictionary)
• Negotiation is a basic means of getting what
you want from others. It is back-and-forth
communication designed to reach an
agreement when you and the other side
have some interests that are ...opposed.
(Fisher & Ury, xvii)
Persuasion
• Moving by argument, entreaty, or
expostulation (reasoning earnestly) to a belief,
position, or course of action (dictionary)
• Persuasion is a negotiating and learning
process through which a persuader leads
colleagues to a problem’s shared solution.
Persuasion does involve moving people to a
position they don’t currently hold, but not by
begging or cajoling. (Conger, p.86)
• Negotiation & persuasion are some ways
to manage conflicts
• Persuasion is an important part of
negotiation and an important part of
leadership and life, including situations we
might not identify as negotiations
Negotiation Myths
1. Good negotiators are born
2. Experience is a great teacher
3. Good negotiators take risks
4. Good negotiators rely on intuition
5. Negotiations are always win-lose
6. The only negotiations are formal or explicit
negotiations
7. Good negotiators are tough, intimidating, and
try to get everything they can
Crucial Elements in
Every Negotiation
• Information
• Time
• Power
Information
• Prepare
• Inquire
• Listen and observe
– Direct
– Indirect
Time
• Good to have flexibility
• Helps to know more about the others’
deadlines than they do about yours
• Patience pays
Power
• Many sources
• Real and inferred
• Can change during negotiations
• Can be crafted and acquired
• Sophistication & restraint in using power
Negotiation Requires
• Interdependence, recognized
• Motivation to engage
• Parties engage between avoidance and
domination
• Enough power balance
• Reaching an active phase
Two Main Approaches
Competitive --- Collaborative
• Desirable to consider (at least partly)
collaborative negotiations
• Not always possible, appropriate, or sufficient
• Often combine competitive and collaborative
approaches and tactics in versatile way, e.g.,
in “principled negotiations”
Differences re CRIP Goals
• Content: win-lose vs
• Relational: unfriendly
• Identity/face-saving:
win-win
vs friendly
rigid/confrontational
vs flexible/supportive
• Process:
positional bargaining vs
interest-based bargaining
Goal Examples
• Content: get Adrian to work full-time on
my project starting next week
• Relational: maintain good relations with
Adrian’s boss, Sam
• Identity: not appear weak to Sam or
others during this negotiation
• Process: talk in person and privately
CRIP Goals Interact
• Not all types of goals may be present
• Goals overlap and differ in importance
• Identity and relational issues underlie
content and process issues
• Content-only solutions are rarely satisfying
in serious situations
• Goals change during interactions
Competitive Communication
Patterns
•
•
•
•
High opening demands and concede slowly
Try to maximize tangible resource gains
Exaggerate value of concessions offered
Use threats, confrontations, argumentation, forceful
speaking
• Conceal and distort information
• Manipulate people & process - distort intentions,
resources, and goals
• Focus on content goals rather than relational goals
Competitive Disadvantages
• Can hurt relationships, with mistrust, anger,
breakdowns, communication distortions...
• Blocks creative exploration & potential joint
gains
• Payoffs of competitive actions are often
overestimated
• Encourages brinkmanship (impasses)
• May undermine implementation
– Commitment vs. compliance
Collaborative Communication
Patterns
• Collaborative tactics: non-evaluative descriptive
statements, disclosing statements, honest inquiry,
requesting feedback, supportive remarks, concessions,
accepting responsibility
• Brainstorm creative new options to meet everyone’s
interests, expand the pie
• Logrolling (identify & try to deal with top-priority issues
for each)
• Bridging (invent new options to meet the other side’s
needs)
• Minimize costs to the other for going along with you
Collaborative Disadvantages
• May pressure an individual to compromise and
accommodate in ways not in his/her best interests
• Avoids confrontational strategies (which can be helpful
at times)
• Increases vulnerability to deception & manipulation by a
competitive opponent
• Makes it hard to establish definite aspiration levels &
bottom lines
• Requires substantial skill and knowledge of the process
• Requires strong confidence in one's perceptions
regarding the interests and needs of the other side
The Ultimatum Game
• First person proposes a division of $100 in
whatever fashion s/he chooses.
• If second person agrees, they distribute the
$100 between themselves, as specified
• If the second person disagrees, they both get
nothing
Some Important Terms
• Bargaining mix: the set of issues
– Having multiple items & being creative can be very helpful
• BATNA (best alternative to a negotiated settlement)
– Sometimes are only two choices
– (Good) alternatives are important
• Target point (aka aspiration): desired end point
• Resistance point (aka bottom line): furthest from the target point
a negotiator will go
• Starting point: the first position a negotiator plans to take
• Bargaining range (aka zone of potential agreement):
– Positive bargaining range
– Negative bargaining range, & likely stalemate
• Settlement point: the final point(s) of agreement
Engage with the readings
• What do I like, agree with, find useful?
Why?
• How might I apply one or more concepts
in my life – now and in the future?
• What do I disagree with and/or would
modify or expand on? Why? How?
Basic Points from F,U,P Book
• Dilemma: hard or soft?
• Offers third way - both hard and soft
– Hard on merits and interests
– Soft on people
• How to obtain what you are entitled to & still be
decent
• If the other side learns this strategy, it makes
the negotiations easier, not harder (it is not an
advantage to negotiate with an unskilled
opponent, if you will interact later)
Three Criteria for
a Negotiation Method
1. Produce a “wise” agreement, if agreement is
possible
– An agreement that wisely reconciles the parties'
interests
2. Efficient
3. Improve or at least not damage relationship
 Bargaining over positions goes against all three
 Being nice is no answer
Principled Negotiation
• Oriented to collaborative negotiations, but can
•
be used in competitive
Centered around four considerations
– People: Disentangle people from the problem
– Interests: Focus on interests, not positions
(interests always underlie positions)
– Options: Generate rich range before deciding what
to do
– Criteria: Insist that the result be based on objective
standards
• Uses "firm flexibility"
Some Facets of Principled
Negotiation
• Assume there is a solution
• Join “with” the other to develop creative
options
• Identify complementary interests
• Be firm in your goals and flexible in your
means
• Control the process, not the person
• Use principles of productive and effective
communication
Three (Iterative) Stages
• Analysis
• Planning
• Discussion
PIOC: People
• Negotiators are people first
• Failure to deal with others as human beings
prone to human reactions can be disastrous
•
•
•
•
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People problems: theirs and yours
Perceptions (and inferences)
Emotions
Communications
Prevention works better than repair
PIOC: Interests
• Usually are several possible positions that could
satisfy any interest
• Behind opposed positions lie shared and compatible
interests, as well as conflicting ones
•
•
•
•
•
Usually are multiple interests
Look forward, rather than back
Commit to your interests, not your positions
Stay open to take their interests into account
Be hard on the problem, soft on the people
Need Clarity About Your Interests
• “If you don't know where you're going, you
might wind up somewhere else.” (Yogi Berra)
• Distinguish among interests, goals (aka
objectives), positions, strategies, & actions
• Define interests and goals in terms of results
and outcomes, not actions
• Frame goals as positive results to be
achieved rather than problems to be avoided
• An interest is a motivator, an underlying
need, desire, or concern, e.g., I want to
feel financially secure or I need more
money with the arrival of a second child.
• A goal is a desired outcome or result,
e.g., I want to make $60,000 this year.
• A position is a stated result or proposal,
usually in a negotiation or conflict, e.g., I
deserve a 10% salary increase.
• A strategy is the method or path for
achieving a goal, e.g., I will first try to
negotiate an increase in my salary, then, if
this does not achieve my goal, I will
search for a second job on weekends.
• Tactics and actions are specific steps to
be taken, hopefully following a strategy,
e.g., contact the placement office in my
professional society to identify possible
weekend positions
Examples of Complementary
Interests
One party might care Other party might
more about:
care more about:
Form, appearance
Substance
Examples of Complementary
Interests
One party might care Other party might
more about:
care more about:
Form, appearance
Substance
Economic considerations Political considerations
Examples of Complementary
Interests
One party might care Other party might
more about:
care more about:
Form, appearance
Substance
Economic considerations Political considerations
External considerations Internal considerations
Examples of Complementary
Interests
One party might care Other party might
more about:
care more about:
Form, appearance
Economic considerations
External considerations
Immediate future
Substance
Political considerations
Internal considerations
More distant future
Examples of Complementary
Interests
One party might care Other party might
more about:
care more about:
Form, appearance
Economic considerations
External considerations
Immediate future
Tangible results
Substance
Political considerations
Internal considerations
More distant future
The relationship
Examples of Complementary
Interests
One party might care Other party might
more about:
care more about:
Form, appearance
Economic considerations
External considerations
Immediate future
Tangible results
Progress, change
Substance
Political considerations
Internal considerations
More distant future
The relationship
Respect for tradition
Examples of Complementary
Interests
One party might care Other party might
more about:
care more about:
Form, appearance
Economic considerations
External considerations
Immediate future
Tangible results
Progress, change
Precedent
Substance
Political considerations
Internal considerations
More distant future
The relationship
Respect for tradition
This case
PIOC: Creative Options
• Library window, Sinai Peninsula & orange examples
• Avoid:
–
Premature judgment
–
Searching for the single answer
–
Assuming fixed pie
–
Stance that solving their problem is their problem
• Look for shared interests and mutual gain
• Develop creative new options (brainstorm to expand the
pie)
• Make their decision easy
PIOC: Use Objective Criteria
• Commit to reaching a solution based on principle,
•
•
•
•
•
•
not pressure
Be open to reason, closed to threats
Discuss objective standards for settling a problem
instead of trying to force each other to back down
Frame issue as joint search for objective criteria
Reason & be open re which standards are
appropriate & how to apply
Yield only to principle & facts, not pressure
Note that your position "is a matter of principle"
FURTHER NEGOTIATION
SKILL BUILDING
Preparing for Negotiation
• Define your interests (don't confuse these
with positions)
• Analyze the other party (gather information
and make sense of it)
• Define issues (usually are hidden ones)
• Consult with your team and constituencies
(and the other side)
Preparing (cont.)
• Assemble issues and define the bargaining
mix. A larger bargaining mix takes:
– Longer to negotiate
– But opens up more opportunities for
collaborative solutions
• Prioritize interests and issues (your own
and those of the other side)
Preparing (cont.)
• Develop and think through strategy options
• Identify your BATNAs, try to develop better ones
• Set target points, resistance points (understand
and identify your own limits, recognizing tradeoffs)
• Develop starting points & effective openings with
supporting arguments (do your homework research and organize information)
Negotiation Strategy Choices
Competing
Content
Imp.
Collaborating
Compromising
Avoiding
Accommodating
Relationship Importance
Competitive Negotiation
• Desirable to consider collaborative
negotiation in majority of situations
• But this is not always possible,
appropriate, or sufficient
• Can combine competitive and collaborative
(appropriate for contract negotiation)
Competitive Negotiation
• Three crucial variables:
– Power
– Information
– Time
• Strategies should discover & influence the
other's resistance points
• Iterative
• Progression of concessions
• “Commitments” are tricky
Competitive Strategies
• Try for settlement close to other's resistance
point
• Get the other side to modify their resistance
point
• Modify your own resistance point
• Expand and/or use multiple items in the
bargaining mix creatively
Preventing/Dealing with Negotiation
Problems
1. Reduce tension and encourage de-escalation:
–
–
–
–
Take a break
Active listening
Acknowledge the other's feelings
Make concessions to encourage reciprocation
• Note the difference between accurately hearing
what the other party has said plus
acknowledging that s/he feels as s/he does
...and agreeing with those statements
Preventing/Dealing with Negotiation Problems
2. Improve the accuracy of communication
(including the concepts we practiced)
3. Control size & number of issues involved:
– Fractionate big issues
– Keep the number of parties small
– State issues in concrete terms rather than as
principles or value statements
– Be selective re precedents involved
Preventing/Dealing with Negotiation Problems
4. Establish commonalities:
– Look for similarities in interests of the parties
– Reframe the situation
– Identify superordinate goals, common enemies,
mutually agreeable rules and procedures
5. Make preferred options more desirable to the
opponent
– Refine the proposal, sweeten the offer (rather than
intensify the threat)
– Use objective criteria to evaluate solutions
Some Negotiation Traps
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Believe that there is a “fixed pie”
Anchoring
Escalation of commitment
Framing (inappropriate & rigid)
Overconfidence
Use easy information (vs. more careful analysis)
Using inferences rather than inquiring
Biases
Reactive devaluation (of other party’s concessions)
What If They Are More Powerful?
• Protect yourself
• Try to correct the power inbalance
• Know & improve your BATNA (one of best ways
to deal with a more powerful other side, ch.6)
• Measure proposed agreement against your
BATNA (not your bottom line)
• Don't add various BATNAs
• Discover & consider the other side's BATNA
• Decide whether to disclose your BATNA
What If They Won’t Play Fair?
• Four basic approaches:
– Principled negotiation
– Use a third party
– Negotiation jujitsu
– Don’t negotiate (if you have the option)
Use Principled Negotiation
• Same four basic principles (PIOC)
• Change the game by starting a new one
(apartment example p.117ff)
• Remain open to persuasion by objective facts
and principles
• Stick to principles without blaming or attacking
• Communicate information by means of
questions
Use PN (cont.)
• Give personal support to the opposite person
• Inquire about reasons for the other’s positions
• Use effective listening
• Present your reasons before offering a
proposal
• Present proposal as one fair solution, rather
than your proposal
One-Text Process
• Best with a third-party
• Single draft text
• Attempts to integrate various interests &
concerns
• Multiple drafts
• Feedback & critique from both sides on each
draft
• Eventually, yes or no
Negotiation Jujitsu
• Prevent the cycle of action & reaction by not
pushing back
• Don't attack their position, look behind it,
channel it into exploring interests
– Don't reject or accept it
– Assume every position is a genuine attempt to
address the basic concerns of each side
– Ask them how it does this
– Seek & discuss principles underlying their positions
Negotiation Jujitsu (cont.)
• Invite feedback & suggestions, rather than
re-defending your ideas
• Reframe an attack on you as an attack on the
problem
• Inquire and pause ("Some of the most
effective negotiating you will ever do is when
you are not talking“ p.112)
Some Times to Avoid Negotiating
• When you don’t care
• When you could lose everything
• When there is nothing you could gain (the other
has nothing you want)
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When the demands are illegal or unethical
When they act in bad faith
When you don’t have time
When waiting would improve your position
When you’re not prepared
What If They Use Dirty Tricks?
Read F. ch. 8 and be prepared
Could also read Getting Past No by Ury
Getting Past “No”
• Go to the balcony, rather than react
• Step to their side, rather than argue
• Reframe, rather than reject
• Build them a golden bridge, not push
• Educate them about costs of not agreeing,
rather than escalate
G Station Game
(more details posted in */ex-station.doc)
• Form 4 teams
• Sets of two stations, competing on price
• Each has binary choice each week:
– Cut prices
– Keep prices constant
• Profits depend on choices by both stations
• Show decision to me silently with paper saying
•
•
CUT or NO CHANGE
Reset prices at end of week, then new decisions
Multiple cycles
Importance of Versatility
• Broad repertoire
• Flexibility and skill in use
• Mindfulness:
– Listen
– Observe
– Inquire
– Manage assumptions, inferences, attributions
Versatility (cont.)
• Balance observation and action
• Considerable use of questions, especially
in early stages
• Asking (inquiry) more than telling
(advocacy)
Negotiation is a process of
preparing, then making sense out
of what is happening, and then
working with those conditions to
bring about a desirable outcome
Action Planning
• Write down what you now regard as the 3-5
most important points about negotiation
• Take notes on how you can apply these
points in:
– The contract negotiation in this class
– Other future negotiations in your life
PERSUASION
“The power of the president is the
power to persuade.”
• Quotation from Presidential Power by Richard
Neustadt, who studied many U.S. Presidents
• “Presidents with all the power and economic
support that goes with the office, will still
only get real, dedicated action from cabinet,
staff, and others when s/he persuades them
to do it.”
• Other than in emergencies, people respond
best through persuasion
"There are, then, these three means of
effecting persuasion. The man who is to be
in command of them must, it is clear, be
able (1) to reason logically, (2) to
understand human character and goodness
in their various forms, and (3) to understand
the emotions--that is, to name them and
describe them, to know their causes and the
way in which they are excited.“
-Aristotle
Four Essential Steps in Persuasion
• Establish credibility
• Frame for common ground
• Provide evidence
• Connect emotionally with your audience
Credibility
• Earned over time
• Requires expertise, trustworthiness, and
relationships
• Need to be honest, competent, inspiring
(K&P 22)
Re Credibility
• Think of a time when you willingly
followed the direction of someone you
admired and respected as a leader someone who energized and excited you
about following, someone who had a high
degree of credibility with you
Credibility Exercise (cont.)
• Make some notes for yourself re:
– What was the situation?
– How did this leader make you feel about
yourself - what three or four words would
best describe how you felt ?
– What did this individual do as a leader that
you admire and respect - what leadership
actions did this person take that made others
want to perform well?
How People Feel When Working
With Admired Leaders
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Valued
Motivated
Inspired
Challenged
Capable
Enthusiastic
Supported
Respected
Powerful
Proud
Frame for Common Ground
• Frame goals and arguments in a way that
identifies common ground with those you
wish to persuade
• Outcome must appeal strongly to the
people you are trying to persuade
Provide Evidence
• Reinforce arguments and positions
• Use vivid language and compelling
evidence:
–
–
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–
Examples
Stories
Metaphors
Analogies
Connect Emotionally With Your
Audience
• Show your own emotional commitment to a
position
• Without being overly emotional
• Align your emotional approach with your
audience
• This requires dialogue with individuals involved
• Get beyond your frame of reference to theirs
Four Essential Steps in Persuasion
• Establish credibility
• Frame for common ground
• Provide evidence
• Connect emotionally with your audience
Some Ways Not to Persuade
• Up-front, hard sell
• Resist compromise
• Rely only on presenting great arguments
• Stay fixed in your frame of reference
• Assume persuasion is a one-shot effort
More Persuasive Tools
• Reuse some from conflict management,
e.g.:
– Conflict response modes
– Move from complaints to requests
– Use effective interpersonal skills