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CORE NEGOTIATION CONCEPTS


Rex Mitchell

Opportunities and requirements for negotiation (and persuasion) are everywhere, everyday Negotiation ! "onferring with another so as to arrive at the settlement of some matter (dictionary) ! Negotiation is a #asic means of getting what you want from others$ %t is #ac&'and'forth communication designed to reach an agreement when you and the other side have some interests that are $$$opposed$ ((isher ) *ry) Negotiation myths (first four from +hompson 1,,-) 1$ Good negotiators are born ' they are self'made, requires study and practice .$ Experience is a great teacher ' experience can improve negotiation s&ills to some extent, #ut have to learn from the experience ' not unaided, unreflected, without feed#ac&$ /xperience tends to improve our confidence, #ut not our accuracy0effectiveness 1$ Good negotiators take lots of risks ' while this may wor& in the movies, it isn2t in the script for real negotiations$ 3ome negotiators may do this occasionally, #ut after carefully considering ris&s ) potential #enefits$ +hey &now how to evaluate a situation and ma&e an optimal choice given the information availa#le$ 4$ Good negotiators rely on intuition ' /ffective negotiators are self'aware and very conscious of what they are doing and why$ Most of the important wor& of negotiation ta&es place #efore meeting (preparation)$ 5$ Negotiations are always win-lose ' a vast ma6ority can #e win'win$ 7$ The only negotiations are formal or explicit negotiations ' far more negotiations ta&e place informally every day$ 8$ Good negotiators are tough, intimidating, and try to get everything they can ' sometimes true (in some one'shot competitive negotiations), #ut much more often inappropriate and ineffective$ 9ood negotiators are not in it for their egos ' they focus on results$ +hree crucial elements in every negotiation ("ohen, p$1, : more) 1$ %nformation '+he life #lood in negotiation '+he more you &now a#out the other side, the #etter ';ou not may want the other side to have certain information a#out you '<lternatively, you may want the other side to have certain information ' some correct, possi#ly some incorrect '3ometimes you have to give information to get information '=atch for unintentional cues, ver#al cues, and #ehavioral cues ' in addition to explicit information given #y the other side .$ +ime '%n a competitive negotiation, try not to reveal your real deadline to the other side '+ry to get clues a#out the deadline of the other side> they usually have one 'Many concessions may occur 6ust #efore a deadline, so patience pays '9enerally spea&ing, you can not achieve the #est outcome quic&ly, so using ?ta&e it or nothing? tactics, especially early, may not #e effective 1$ @ower ' ;ou have more potential power sources than you realiAe ' +here are many sources and tactics to gain more 1

' 3ophistication and restraint in using power is important ' Many things affect relative power and power #alance, including o @osition and privilege o "ultural differences o Bevelopmental a#ility o Relationship o <lso information and time advantages Negotiation, to #e appropriate, requires ! *sual elements of a conflict situation (opposing interests, although there also may #e some common interests) ! @arties have and recogniAe their interdependence to at least some degree ! Motivation to engage with each other, rather than avoid ! +he situation falls #etween avoidance and domination ! +here is enough power #alance that people can ?come to the ta#le? ! @arties have reached an active phase in which proposals can #e made and explored 3ome perspectives on negotiation ! <lthough it would #e nice to hope that negotiation tactics are used to reach settlement with the other, this is not always the case ! "ontrast implicit negotiations, in many settings ' "ommunication is often indirect, yet still trying to settle differences without resorting to force or avoidance$$$ ! +wo main approaches to negotiation ' "ompetitive ' "olla#orative ' Cut can com#ine these in Dprincipled approachE (more later) ! Fey differences in the ways these two approaches deal with "R%@ goals ' Content win'lose (in competitive) vs win'win (in colla#orative) ' Relationship unfriendly vs friendly ' Identity0face'saving rigid0confrontational vs flexi#le0supportive ' Process positional #argaining vs interest'#ased #argaining (to #uild solutions) ! % feel that it is desira#le to consider (at least partly) colla#orative negotiations in a large ma6ority of situations$ Gowever, colla#orative negotiations are not always possi#le, appropriate, or sufficient$ (or example, sometimes you need to protect yourself$ ! Note that negotiations can and often do com#ine competitive and colla#orative approaches and tactics "ompetitive Negotiations ! Casic assumptions ' Negotiating is controlled #y egocentric self'interest ' +he underlying motivation is competitive0antagonistic ' Himited resources are availa#le and are Aero'sum ' +his negotiation does not affect the future ' +he goal is to win as much as you can, especially more than the other side ! "ommunication patterns ' Ma&e high opening demands and concede slowly ' +ry to maximiAe tangi#le resource gains, within the limits of the current dispute ' /xaggerate the value of concessions that are offered ' *se threats, confrontations, argumentation, forceful spea&ing .

' "onceal and distort information ' Manipulate people and the process #y distorting intentions, resources, and goals ' +ry to resist persuasion on issues ' (ocus on quantitative and competitive goals rather than relational goals Bisadvantages ' "an hurt relationships, with mistrust, anger, #rea&downs, communication distortions$$$ ' Cloc&s creative exploration ) potential 6oint gains ' @ayoffs of competitive actions are often overestimated ' /ncourages #rin&manship (impasses) ' May undermine implementation (commitment vs$ compliance)

"olla#orative Negotiations ! <ssumptions ' @arties have #oth diverse and common interests ' "ommon interests are valued and sought ' +he negotiation process can result in #oth parties gaining something ' +he negotiating world is controlled #y enlightened self'interest ' %nterdependence is recogniAed and enhanced ' Himited resources do exist, #ut they can usually #e expanded through cooperation ) creativity ' +he goal is a mutually agreea#le solution that is fair to all parties ! (ollett examples of integrative solutions ' window in li#rary and two sisters with one orange ' o#tained #y understanding interests, rather than arguing for positions ! @laces value on relationship, requires trust, relies on good disclosure of relevant information ! "ommunication patterns ' "olla#orative tactics such as non'evaluative descriptive statements, disclosing statements, honest inquiry, requesting feed#ac&, supportive remar&s, concessions, accepting responsi#ility ' Crainstorm creative new options to meet everyone2s needs, expand the pie ' *se of nonspecific compensation (pay off in other ways for concession here) ' Hogrolling (identify ) try to deal with top'priority issues for each) ' Cridging (invent new options to meet the other side2s needs) ' MinimiAe costs to the other for going along with you ! Bisadvantages ' May pressure an individual to compromise and accommodate in ways not in his0her #est interests ' <voids confrontational strategies (which can #e helpful at times) ' %ncreases vulnera#ility to deception ) manipulation #y a competitive opponent ' Ma&es it hard to esta#lish definite aspiration levels ) #ottom lines ' Requires su#stantial s&ill and &nowledge of the process ' Requires strong confidence on oneIs perceptions regarding the interests and needs of the other side$$$

+hree "riteria for a Negotiation Method 1$ @roduce a DwiseE agreement, if agreement is possi#le (i$e$, n agreement that wisely reconciles the partiesI interests) .$ /fficient 1$ %mprove or at least not damage relationship Bargaining over positions goes against all three 1

Being nice is no answer Principled Negotiation (from (isher ) *ry, Getting to es, 1,,1) ! @articularly oriented to colla#orative negotiations, #ut can #e used in competitive negotiations ! < method centered around four considerations (@%O") ' People 3eparate people from the pro#lem ' Interests (ocus on interests, not positions (interests always underlie positions) ' Options 9enerate a variety of possi#ilities #efore deciding what to do ' Criteria %nsist that the result #e #ased on o#6ective standards ! <dvocates ?firm flexi#ility,? i$e$, remain firm a#out goals, #ut flexi#le regarding how to accomplish them @%O" @eople ! Negotiators are people first ! (ailure to deal with others as human #eings prone to human reactions can #e disastrous ! @eople pro#lems theirs and yours ! @erceptions (and inferences) ! /motions ! "ommunications ! @revention wor&s #etter than repair @%O" %nterests ! *sually are several possi#le positions that could satisfy any interest ! Cehind opposed positions lie shared and compati#le interests, as well as conflicting ones ! *sually are multiple interests ! Hoo& forward, rather than #ac& ! "ommit to your interests, not your positions ! 3tay open to ta&e their interests into account ! Ce hard on the pro#lem, soft on the people Bistinguish among interests, goals (Jo#6ectives), positions, strategies, and actions$ "onsider these examples ' <n interest is a motivator, an underlying need, desire, or concern, e$g$, % want to feel financially secure or % need more money with the arrival of a second child$ ' < goal is a desired outcome or result, e$g$, % want to ma&e K7L,LLL this year$ ' < position is a stated result or proposal, usually in a negotiation or conflict, e$g$, % thin& % deserve a 1LM salary increase$ ' < strategy is the method or path for achieving a goal, e$g$, % will first try to negotiate an increase in my salary> then, if this does not achieve my goal, % will search for a second 6o# on wee&ends$ ' +actics and actions are specific steps to #e ta&en, hopefully following a strategy, e$g$, contact the placement office in my professional society to identify possi#le wee&end positions$ ! Note examples of polar opposites that can #e reconciled in integrative negotiation, if done s&illfully (from (isher ) *ry, 1,,1) One party might care more about: Other party might care more about: form, appearance su#stance 4

economic considerations external considerations sym#olic considerations immediate future ad hoc results hardware progress precedent prestige, reputation political points

political considerations internal considerations practical considerations more distant future the relationship ideology respect for tradition this case results group welfare

@%O" Options (creative ones) ! Hi#rary window, 3inai @eninsula ) orange examples ! <void ' @remature 6udgment ' 3earching for the single answer ' <ssuming fixed pie ' 3tance that solving their pro#lem is their pro#lem ! Hoo& for shared interests and mutual gain ! Bevelop creative new options (#rainstorm to expand the pie) ! Ma&e their decision easy @%O" "riteria (o#6ective criteria) ! "ommit to reaching a solution #ased on principle, not pressure ! Ce open to reason, closed to threats ! Biscuss o#6ective standards for settling a pro#lem instead of trying to force each other to #ac& down ! (rame issue as 6oint search for o#6ective criteria ! Reason ) #e open re which standards are appropriate ) how to apply ! ;ield only to principle ) facts, not pressure ! Note that your position ?is a matter of principle? =ilmot ) Goc&er (.L1L ch$-) suggest a slight modification to the @%O", worth consideration 1$ <ttend to the relationship .$ <ttend to all elements of communication 1$ (ocus on interests, not positions 4$ 9enerate many options 5$ (ind legitimate criteria 7$ <nalyAe the C<+N<s (#est alternatives to a negotiated agreement) 8$ =or& with fair and realistic commitments More re "olla#orative Negotiation ! +ransforming negotiations requires some special things ' moving from self'interest to shared concerns ' moving from competitiveness to cooperativeness ' moving from an exchange model to a more intuitive, emotional stance ! Many conflicts would profit from realiAing that ?we are all downstream from each other? (#orrowed from the ecology movement re dumping pollutants) ! 3ome colla#orative actions ' <ssume there is a solution 5

' Noin DwithE the other ' "ontrol the process, not the person ' Ce firm in your goals and flexi#le in your means ' *se principles of productive and effective communication Fey elements in effective planning for a negotiation ! Befine your interests (donIt confuse these with positions you might ta&e at times) ! Befine issues (usually are hidden ones, in addition to conspicuous ones) ! <ssem#le issues and define the #argaining mix$ < larger #argaining mix ta&es longer to negotiate, #ut opens up more opportunities for colla#orative solutions$ ! "onsult with your team and constituencies (and the other side, when appropriate) ! <nalyAe the other party (gather information and ma&e sense of it) ! @rioritiAe interests and issues (your own and those of the other side) ! 3et goals, target points, resistance points (understand and identify your own limits, recogniAing trade'offs) ! %dentify your C<+N<s (#est alternative to a negotiated settlement ' see terms at end>, possi#ly develop more and0or #etter ones ! Bevelop starting points and supporting arguments (do your homewor& ' research and organiAe information) =hat %f +hey <re More @owerfulO Bevelop your C<+N< (one of #est ways to deal with a more powerful other side, ch$7) Fnow ) improve your C<+N< Measure proposed agreement against your C<+N< (not your #ottom line) BonIt add various C<+N<s "onsider the other sideIs C<+N< Becide whether to disclose your C<+N< =hat %f +hey =onIt @lay (airO ! (our #asic approaches ' *se principled negotiation ' *se a third party ' Negotiation 6u6itsu ' Bon2t negotiate (if you the option) ! @rincipled Negotiation 3ame four #asic principles (@%O") "hange the game #y starting a new one (apartment example p$118ff) Remain open to persuasion #y o#6ective facts and principles 3tic& to principles without #laming or attac&ing "ommunicate information #y means of questions 9ive personal support to the opposite person %nquire a#out reasons for the other2s positions *se effective listening @resent your reasons #efore offering a proposal @resent proposal as one fair solution, rather than your proposal ! One'+ext @rocess Cest with a third'party 3ingle draft text 7

<ttempts to integrate various interests ) concerns Multiple drafts (eed#ac& ) critique from #oth sides on each draft /ventually, yes or no

! Negotiation Nu6itsu (see ()*) @revent the cycle of action ) reaction #y not pushing back BonIt attac& their position, loo& #ehind it, channel it into exploring interests o BonIt re6ect or accept it o <ssume every position is a genuine attempt to address the #asic concerns of each side o <s& them how it does this o 3ee& ) discuss principles underlying their positions %nvite feed#ac& ) advice, rather than re'defending your ideas Reframe an attac& on you as an attac& on the pro#lem %nquire and pause (?3ome of the most effective negotiating you will ever do is when you are not tal&ing?) 3ome times you should try to avoid negotiating (modified from Hewec&i, .LL8, Essentials of N!, p$8) ! =hen you don2t care ! =hen you could lose everything ! =hen there is nothing you could gain (the other has nothing you want) ! =hen the demands are illegal or unethical ! =hen they act in #ad faith ! =hen you don2t have time ! =hen waiting would improve your position ! =hen you2re not prepared Some Terms !or re!erence" a$ Bargaining mix the set of issues that are or could #e considered in the negotiations$ Often, there will #e su#stantial differences #etween the parties in the importance of various issues$ Gaving multiple items in the #argaining mix and #eing creative in dealing with them can #e very helpful ' in #oth competitive and colla#orative negotiations$ #$ BATNA (best alternative to a negotiated settlement) the #est alternative a negotiator has other than completing the present negotiation with the other side ' 3ometimes there are only two choices reach a deal with the other party or no settlement at all ' Other times, there may #e multiple alternatives that exist or can #e developed ' (9ood) alternatives are important #ecause they give a negotiator the power to wal& away from a competitive negotiation when the deal is not very good ' 9ood competitive negotiators identify their realistic alternatives #efore #eginning negotiations, so they can 6udge how firm to #e in the negotiations c$ Target point (a&a aspiration) the point at which a negotiator would li&e to conclude negotiations, his0her optimal goal$ /ach item in the #argaining mix will have its own target, resistance, and starting point$ d$ Resistance point (a&a #ottom line) the point furthest from the target point a negotiator will go, #ut the point can change$ %n a sales negotiation, this would #e the most a #uyer will pay, and the least the seller will accept e$ Starting point the first position a negotiator plans to ta&e$ %n a sales negotiation, this is the 8

as&ing price stated #y the seller, and is the first counter'offer made #y the #uyer f$ Bargaining range (a&a Aone of potential agreement) ' %n a sales negotiation, there is a positive #argaining range if the #uyerIs resistance point is a#ove the sellerIs (the #uyer is maximally willing to pay more than the seller is minimally willing to sell for) ' %f the reverse is true (the #uyer wonIt maximally pay more than the seller will minimally accept), there is a negative #argaining range ' and a li&ely stalemate ' %n a competitive negotiation with a negative #argaining range, there will #e no solution unless one or #oth parties change their resistance points (or other items can #e introduced into the #argaining mix) ' %n a competitive negotiation, it is hard to learn a#out resistance points and whether a positive settlement range exists ' %n a colla#orative negotiation, the parties may tal& openly a#out these matters g$ Settlement point the final point(s) of agreement, if this happens PERS#ASION @ersuasion ! Moving #y argument, entreaty, or expostulation (reasoning earnestly) to a #elief, position, or course of action (dictionary) ! @ersuasion is a negotiating and learning process through which a persuader leads colleagues to a pro#lem2s shared solution$ @ersuasion does involve moving people to a position they don2t currently hold, #ut not #y #egging or ca6oling (or forcing)$ ("onger, p$-7) ! @ersuasion is an important part of negotiation and an important part of leadership and life, including situations we would not identify as negotiations$ (our /ssential 3teps in @ersuasion 1$ /sta#lish credi#ility ' /arned over time ' Requires expertise and relationships ' Need to #e honest, competent, inspiring (FouAes ) @osner 1rd ed, p$.1) discovering your self, appreciating constituents and their diversity, affirming shared values, developing capacity, serving a purpose, sustaining hope .$ (rame for common ground ' (rame 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 1$ @rovide evidence ' Reinforce arguments and positions ' *se vivid language and compelling evidence ' examples, stories, metaphors, analogies o M3 example p$,. using analogy of supermar&et and coo&ing dinner 4$ "onnect emotionally with your audience (our =ays Not to @ersuade ! *p'front, hard sell ! Resist compromise ! Rely only on presenting great arguments ! <ssume persuasion is a one'shot effort
negot'core, last modified 801501L

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