713 negotiation

8/12/2019 713 Negotiation

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PRINCIPLED NEGOTIATION

Negotiating is something we do every day. Negotiating is about producing wise and

stable outcomes in situations of conflict. The ability to negotiate can make the

difference between success and failure.


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PRINCIPLED NEGOTIATION

KEY IDEA

Never negotiate over positions


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EXAMPLES OF POSITIONS

I want 375 000 for the sale of thisbusiness and I wont take a penny less.

The rent on this flat is 500 a month takeit or leave it.

I am entitled to take next week asholiday


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ALTERNATIVES TO POSITIONALBARGAINING

Separate the people from the problem. Focus upon interests, not positions.

Invent options for mutual gain. Insist upon objective criteria.


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SEPERATING THE PEOPLE FROMTHE PROBLEM

Negotiating can involve dealing withemotion.

Emotion can be a destructive influence. Emotions may be stirred by fear of loosing.


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HANDLING EMOTION

Perception is the key to handling emotion.


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PERCEPTION

Try and see the issues from the other partys pointof view

Never deduce their intentions from your worst

fears Avoid blaming the other party for the problem Try and act inconsistently with the other partys

perceptions Involve the other party give them a stake in the

outcome Allow the other party to save face


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EMOTION

Recognise and understand emotions of allpartys

Allow people to express emotion Never react to an emotional response


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COMMUNICATION

Is the key to achieving understanding


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GOOD COMMUNICATION

Generous listening listen actively andshow you have listened by asking questions.

Speak for a purpose get your messageacross

Build relationships


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FOCUS ON INTERESTS NOTPOSITIONS

EXAMPLE

Naming a rent is a position

Seeking a good tenant is an interest


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FOCUS ON INTERESTS NOTPOSITIONS

ANOTHER EXAMPLE:

Naming a price is a position. Obtaining good and reliable supplies is an

interest.

(You can always get something cheaper!)


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INTERESTS

The task of negotiating is to reconcileinterests

Interests define the problem Interests may conflict but there often

multiple shared interests


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SHARED INTERESTS

EXAMPLE

Both landlord and tenant may want stability,a safe, comfortable and attractive property.


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INTERESTS

Make a list:

They want You want You both want


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INTERESTS

Discuss interests openly Acknowledge each others interests as part

of the problem Be clear about your interests but flexible

about how you might achieve them

Be hard on the problem soft on the people


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INTERESTS

Different interests canbe reconciled.

Customer wants to besupplied on time, nomatter what happens.

Seller wants to be paidpromptly. Entrepreneur wants a

quiet life. So, actuallydoes the taxman!


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INVENT OPTIONS FOR MUTUALGAIN

This is the most creative part of thenegotiations process

It is generative scope for lateral thinking,parallel thinking and brainstorming

Broaden options, multiply options

Search for mutual gain


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BLOCKAGES TO INVENTINGOPTIONS

Premature closure Single answer mentality

Fixed pie assumption Refusing to deal with the other partys

problem as part of the problem.


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OBJECTIVE CRITERIA

GENERIC EXAMPLES Market value

Equal treatment Professional standards Efficiency Costs


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OBJECTIVE CRITERIA

EXAMPLES:

Compare price of equipment with similarmachines Base rent on market rates for comparable

properties Wage rises linked to a cost of living index


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POWER DIFFERENTIALS

WHAT IF?

They are more powerful than you? They refuse to negotiate? You simply dont trust the other party to

keep their promises? The other party makes extreme demands?


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POWER DIFFERENTIALS

Dont attack their position explore theinterests and emotions that lie behind it

Dont take up a fixed position invitecriticism and advice

Reframe personal attacks as an attack onthe problem

Ask questions Institute a pause


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POWER DIFFERENTIALS

Finally if all else fails.


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POWER DIFFERENTIALS

INVOKE Best alternative to a negotiatedagreement. (BATNA)


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POWER DIFFERENTIALS

No matter how powerful the stronger partyis, the weaker party always has somepower.


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SURPRISES IN NEGOTIATION

The best alternative might actually be thebetter option! Remember: green hatthinking.

The other partys power reflects your needfor what they control.

Note: there are few if any must haves inthis life!


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PRINCIPLED NEGOTIATIONSUMMARY

The aim of principled negotiation is to avoidgetting into a contest of wills that oftenleads to conflict or an inefficient mechanicalsplitting of the difference.


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PRINCIPLED NEGOTIATIONSUMMARY

Separate the people from the problem. Focus upon interests not positions.

Invent options for mutual gain. Insist upon objective criteria. Prepare a best alternative to a negotiated

agreement.

713 negotiation

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