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1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School 2 Agenda Mouse & Debrief Principled Negotiation

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Page 1: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Advanced Multiparty Negotiation

Dr. Caneel K. Joyce 1 July 2011

Dr. Caneel Joyce Executive Summer School 2

Agenda

Mouse & Debrief Principled Negotiation

Page 2: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Dr. Caneel Joyce Executive Summer School 3

You do not need to end in impasse

•  Hint #1: French cultural norms •  Hint #2: What are some of the keys to integrative

bargaining?

Dr. Caneel Joyce Executive Summer School 4

Review

•  Should I share information? –  Yes. Focus especially on sharing your interests, which

are the end goals you want to achieve. –  But do not share your reservation point (RP) or BATNA.

•  What’s the difference between RP and BATNA? –  BATNA is your best alternative to a negotiated

agreement. If you walk away, you get your BATNA, and all it’s associated risks.

–  RP is the least favourable agreement you’re willing to accept. You will often have several equivalent RPs in a multi-attribute deal.

Page 3: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Mouse  Groups  and  Roles          First  Name   Last  Name   Group  ID   Role  Ankit   Khurana   1   Government  Warda   Tazi   1   Mouse  Representa:ve  Tania   Rodriguez   1   Mayor  of  Bailly  Hana   Yoshimoto   1   Mayor  of  Coupvray  Dennis   Woudsma   1   Mayor  of  Magny                  Rodrigo   Scholtbach   2   Government  Marie   Osnes   2   Mouse  Representa:ve  Raluca   Boroianu-­‐Omura   2   Mayor  of  Bailly  Kirsten   Pansegrow   2   Mayor  of  Chessy  Miguel   Linares   2   Mayor  of  Coupvray  Mondlane   Morte   2   Mayor  of  Magny                  Aart   Vollenhoven   3   Government  Aly   Popat   3   Mouse  Representa:ve  Guido   Hagemann   3   Mayor  of  Bailly  Mohammed   Mebjar   3   Mayor  of  Chessy  Omar   Awad   3   Mayor  of  Coupvray  Michael   Pearson   3   Mayor  of  Magny                  Jan   Hann   4   Government  Felipe   Kudiess   4   Mouse  Representa:ve  Ademola   Oladimeji   4   Mayor  of  Bailly  Jamiu   Eniola   4   Mayor  of  Chessy  Marianne   Rasmussen   4   Mayor  of  Coupvray  Nicholas   Gould   4   Mayor  of  Magny                  Jane   Pade   5   Government  Isabel   Manrique   5   Mouse  Representa:ve  Alain   Siebert   5   Mayor  of  Bailly  Moritz   GueXnger   5   Mayor  of  Chessy  Parag   Sharma   5   Mayor  of  Coupvray  Arpine   Korekyan     5   Mayor  of  Magny                  

Dr. Caneel Joyce Executive Summer School 6

Review your plan for a few minutes

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MAYORS for each team please go upstairs to your rooms and prepare together

Page 4: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Mouse 90 minutes

Groups 1, 2, 3 Groups 4 & 5

Room 109 Room 114

Feel free to use the NAB open spaces - please leave a note for us in your

room or let us know where to find you

Break 11:10 - 11:40

Page 5: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Negotiation Journals Individual Observations

Class Results Peer Feedback

Individual Reflection & Summary

Dr. Caneel Joyce Executive Summer School 10

Key strategies for Mouse negotiation

1.  Trade-offs & Priorities 2.  Sequencing 3.  Agreement in Principle 4.  Packaging and Linking

Page 6: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Dr. Caneel Joyce Executive Summer School 11

Juggling multiple chainsaws

•  To agree, you had to figure out how to trade low-priority items for high-priority items – Keep all 5 issues at play simultaneously.

Dr. Caneel Joyce Executive Summer School 12

Keep concessions in your pocket

•  Sequencing: –  If you start by agreeing about the easy issues,

by the time you’ve reached your high-priority issues, you’ve run out of items to trade-off.

Page 7: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Dr. Caneel Joyce Executive Summer School 13

Walk around, not through, gridlock

•  Agreement in principle: – Nothing is final until it’s final.

Dr. Caneel Joyce Executive Summer School 14

Enable tradeoffs for everyone

•  Packaging and linking: – Negotiate multi-issue proposals.

Page 8: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Negotiation Journals Individual Observations

Class Results Peer Feedback

Individual Reflection & Summary

Dr. Caneel Joyce Executive Summer School 16

Mouse Results: Out of five teams...

Impasse __ teams Partial impasse (no agreement on some issues)

__ teams

Agreement __ teams

Page 9: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Dr. Caneel Joyce Executive Summer School 17

Cultural differences

•  Mouse believes park is a benefit to towns – Property values, employment

•  Towns see park as affront to treasured way of life – Traffic, tourists, property costs, August holiday –  “Your aspiration is our catastrophe”

Dr. Caneel Joyce Executive Summer School 18

Mouse Must Pay!

•  Towns want Mouse to pay them (business tax, voluntary payment, revenue sharing)

•  Mouse will resist: Overheard threat: “I’m going back to America!”

•  Mayors also want government to pay but they have no power to induce this.

Page 10: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Dr. Caneel Joyce Executive Summer School 19

Mayors must agree because they need each other to win

•  Mouse needs Bailly & Magny not to block •  Bailly & Magny will only agree if Chessy &

Coupvray agree to equal revenue sharing – Yesterday 10 of 16 teams shared equally

•  Mouse should agree to €1M per year if no blocking access

Dr. Caneel Joyce Executive Summer School 20

Cultural differences à lose-lose

•  Mouse prefers revenue sharing, would agree to 2-4% (€2-4M/year)

•  Towns forego higher total for fixed payment (suspicious/risk averse)

Page 11: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Dr. Caneel Joyce Executive Summer School 21

Permits and Planning

•  To expedite permits, Mouse will offer to provide community planning assistance

•  Mayors will refuse that offer. –  Stay out of offices, hated MouseWorld planning

•  Mayors will accept planning & expediting permit assistance from government

•  Government will provide if mayors cease negative publicity and insure no blocking

Dr. Caneel Joyce Executive Summer School 22

Press Release

•  Mouse and government both want positive press release

•  Mayors can trade this in exchange for €250k each in annual payments

Page 12: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Dr. Caneel Joyce Executive Summer School 23

Mouse Results Group 1* Group 2 Group 3 Group 4 Group 5

Payment Mouse: 2% payroll tax.

Mouse: payroll tax 1% + 500k annual (gov guar 3M to towns) + 100k one-off per town + 1% tourist tax on tix (est 15M/yr, w/ gov guar 10M)

Mouse: payroll tax 1% (gov guar 3M to towns)

Mouse: 1M fixed Mouse: 750k/year fixed + payroll tax 5% (Bailly & Magny: 250k, Chessy & Coupvray: share 50% of 250k + 0.5% payroll tax)

Press release Yes. Yes. Yes. Yes

Community involvement

Admin & Community planning paid by govt. Part of park will promote French culture.

80% of employees from local towns

Admin supp’t and communities planner from govt to the regions. Produce bought from local farms. Tix for town kids.

Hire 12 admin, 2 engineers and 1 community planner per town. Free tix to all locals.

Gov paid community planner & admin support. Property taxes for residents (10yrs), jobs (75%?). Buy local products when possible.

Other 30 day permits. (1) Special cultural committee (2) Task force for accelerating admin process (3) Fiats action: 30d

(1) Employment and houses for Mouse ee’s (2) towns will cooperate in speedy completion. (4) Mouse apology to towns.

Mayors do what they can to stop blockades

Committee for planning? Levy?

Dr. Caneel Joyce Executive Summer School 24

Other Creative Ideas

Open wine bar in park

for town residents

Mouse builds museu

m about town

Equal employ-ment across towns

Tax imports to induce hotels to purchase from local farmers

French food & local

tradition

Agri-cultural activities for youth

Page 13: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Negotiation Journals Individual Observations

Class Results Peer Feedback

Individual Reflection & Summary

Dr. Caneel Joyce Executive Summer School 26

Feedback from Mouse team

Behaviours  that    Increased    

Individual  gain  

Behaviours  that    Increased    Joint  gain  

Behaviours  that    Decreased    

Individual  gain  

Behaviours  that    Decreased    Joint  gain  

Page 14: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Negotiation Journals Individual Observations

Class Results Peer Feedback

Individual Reflection & Summary

Dr. Caneel Joyce Executive Summer School 28

Agenda

Mouse & Debrief Principled Negotiation

Page 15: Advanced Multiparty Negotiation - {The Caneelian} · PDF file05.07.2011 · 1 Advanced Multiparty Negotiation Dr. Caneel K. Joyce 1 July 2011 Dr. Caneel Joyce Executive Summer School

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Dr. Caneel Joyce Executive Summer School 29

The most commonly used negotiation method is called positional bargaining

•  Each side clarifies their position and commits to it

•  Often choose extreme position, knowing concessions will be made

•  Ego becomes identified with position

•  As try to convince other side can’t change position, it becomes true

•  If negotiation involves more than one person per side (i.e. constituents, bosses, etc), is even harder to change position

Dr. Caneel Joyce Executive Summer School 30

How does positional bargaining measure up against our criteria?

OUTCOME Final agreement is wise?

Fisher & Ury, Getting to Yes

PROCESS Process is efficient?

IMPACT ON RELATIONSHIP

Relationship between two parties improves or, at least, is not damaged?

Produces unwise agreements

No incentive for efficient process

Endangers an ongoing relationship

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Dr. Caneel Joyce Executive Summer School 31

Soft / Hard negotiation is just a form of positional bargaining

“Tough” Negotiator • Participants are adversaries • The goal is victory • Distrust others • Dig in to your position • Make threats • Mislead as to your bottom line

• Demand one-sided gains as the price of agreement

• Try to win a contest of will • Apply pressure

Result: harm relationship Result: feel exploited

“Soft” Negotiator • Participants are friends • The goal is agreement • Trust others • Change your position easily • Make offers • Disclose your bottom line • Accept one-sided losses to reach agreement

• Try to avoid a contest of will • Yield to pressure

Dr. Caneel Joyce Executive Summer School 32

The 3rd option: Principled negotiation

People Interests

Options Criteria

•  Separate people from problems

•  Participants are problem-solvers (not adversaries or friends)

•  Proceed independent of trust

• Focus on interests, not positions

• Generate a variety of possibilities before deciding what to do

• Whenever possible, use objective standards to decide

• Reason and be open to reason

• Yield to principle, not pressure

Fisher & Ury, Getting to Yes

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Dr. Caneel Joyce Executive Summer School 33

If they won’t cooperate, use “negotiation jujitsu”

Jujitsu: a martial art & method of close combat for defeating an armed/armored opponent in which one uses no weapon. Striking against an armored opponent proved ineffective, so Jujitsu practitioners learned that the most efficient methods for neutralizing an enemy by using an attacker's energy against him, rather than directly opposing it. Jū ="gentle, supple, flexible, pliable, or yielding" Jutsu = "art" or "technique”. Represents manipulating the opponent's force against himself rather than confronting it with one's own force.

Takahashi, Masao (2005) Mastering Judo. Human Kinetics Skoss, Meik (1995) Jujutsu and Taijutsu. Aikido Journal

Dr. Caneel Joyce Executive Summer School 34

Negotiation Jujitsu Maneuvers

Don’t attack their position, look behind it

Don’t defend your ideas, invite criticism and advice

Recast an attack on you as an attack on the problem

Ask questions and use silence

•  When they announce a firm position, resist the urge to reject/accept

•  Inquire into principles/interests behind it

•  Instead of asking them to accept/reject an idea, invite them to criticize it

•  Ask for their advice

•  Listen, allow them to let off steam •  Show you understand and then recast what they said

•  Statements generate resistance; questions generate answers

•  Pause after posing the question •  Respond to unreasonable proposals or attacks with

silence; they will feel compelled to fill it

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Dr. Caneel Joyce Executive Summer School 35

•  I will post practical resources to my website: -  Negotiation planning document (feel free to share this at work)

-  Book recommendations

-  Slides (including some new ones)

http://caneelian.com/negotiations

(I’ll email you the link when it’s live)

Never stop learning

Dr. Caneel Joyce Executive Summer School 36

Keep in touch

•  Linkedin group? •  Please keep in touch and let me know how

you find using what you’ve learned. – Twitter: caneel

– [email protected]

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Dr. Caneel Joyce Executive Summer School 37

If you only remember one thing....

You don’t ask, you don’t get!

But you won’t know

what to ask for until you know what you want.