9.27. negotiation fundamentals
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Negotiation Fundamentals
Kem Lowry
Program on Conflict Resolution
University of Hawaii at Manoa
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Objectives for this Session Contrast conventional negotiation
techniques with the interest-based
approach to negotiation Examine key concepts including:
positions, interests, principles, BATNA
Practice negotiation skills
Examine the role of culture innegotiations
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Conflict Inventory Who has experienced a conflict
(problem, issue, scrape,
misunderstanding, etc) in the lastmonth?
How did you respond? What was your ³conflict strategy?´
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Conflict Resolution Options Avoidance
Capitulation
Suppression Accommodation
Problem solving (e.g. conciliation,negotiation, mediation, facilitation)
Escalation Confrontation
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Problem Solving Options Conciliation: neutral 3rd party assists
disputants by acting as go-between
Arbitration: neutral 3rd party acts as judge
Negotiation: parties confer to arrive atmutually satisfactory solution
Mediation: neutral 3rd party assists parties
in their own negotiations Facilitation: neutral 3rd party assists in
group discussions
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Everyone Negotiates Buying a car, house or other object
for which the price may not be fixed
Establishing a salary, workplacetasks, office conditions, etc.
Organizing team tasks or priorities
Allocating household tasks Deciding how to spend a free evening
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Conventional Negotiations Focus on winning
Assert positions/personal preferences
Concede stubbornly Seek compromises based on arbitrary
divisions (e.g. split the difference)
Engage in threats, bluffs or othernegotiation tactics
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Conventional Negotiation Tactics Good cop/bad cop
Highball/lowball
Bluff Threats
Nibble
Appeals to µreason¶
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An Alternative: Interest-Based
Negotiations* Separate the people from the
problem
Focus on interests, not positions Invent options for mutual gain
Insist on objective criteria
*Roger Fisher & William Ury. 1991.Getting to Yes. 2nd ed. New York:Penguin.
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Principle 1: Separate the People
from the Problem Disentangle the people from the
problem
Deal with the people problem:acknowledge perceptions, emotions
Listen actively
Speak to be understood Speak about yourself, not them
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Principle 2: Focus on Interests, Not
Positions Positions: What disputants say they
want in a negotiation: a particularprice, job, work schedule, change insomeone else¶s behavior, revisedcontract provision, etc.
Interests: Underlying desires orconcerns that motivate people inparticular situations (May sometimesbe the same as their positions!)
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Focusing on Interests Problem: barking dog
My interpretation: my neighbor
doesn¶t care about my needs My position: quiet the dog
My interest: I need sleep
Issue: how to control the barking
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Focusing on Interests Problem: reefs are dying
My interpretation: inadequately controlledconstruction in near-shore areas results in
runoff that smothers reefs. My position: stop or severely limit land
disturbance
Interest: reducing the rate of coral loss
Issue: What¶s the real source of reef degradation? How can runoff be reduced/controlled?
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Types of Interests Substantive: How people describe the
issue: barking dogs, cars blocking
driveway, dying reefs Relational: How people they should
be treated or acknowledged.
Procedural: How people think issuesshould be addressed (e.g. courts,ho`oponopono)
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Principle 3: Invent Options for
Mutual Gain Focus on the variety of ways issues/
interests (yours/theirs) might beaddressed?
Avoid assuming there¶s a singlesolution
Separate brainstorming from
evaluation of options Don¶t assume zero-sum conditions
Think creatively
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Principle 4: Insist on Objective
Criteria Fair standards: market value,
precedent, blue book value,
professional standards, ³bestpractice,´ industry average, equaltreatment, etc.
Fair procedures: e.g. last best offers,
taking turns, drawing lots
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When is the Interest-Based
Approach Appropriate? Other party is willing to problem-solve
There is sufficient trust and information²ora willingness to develop them
On-going relationships are important
Commitment to carry out the agreement isneeded
Quality agreement is more important thanan expedient one
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When is the Interest-Based
Approach Unnecessary? On-going relationships are not important
Negotiation is viewed as strictly distributive(e.g. buying a car)
Lack of commitment to problem-solving onthe part of one or more parties
One or more parties see the negotiation as
involving fundamental rights (but somecontention about this)
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Prepping for Your Negotiation What are our interests? What are
theirs? How can we find out?
What¶s our BATNA? What¶s theirs? What¶s our WATNA? Theirs?
What do we know about their
circumstances that might affect thenegotiations?
What¶s their negotiation style? Etc.
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A BATNA
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Negotiating Steps Develop ground rules
Jointly identify issues
Explore interests Develop objective standards
Brainstorm options
Evaluate options using standards Try to reach consensus decision
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Adapting General Principles to
Specific Negotiations Pacing: fast or slow?
Formality: high or low?
Oral or written agreements: whichare more binding and inclusive?
Bluntness of communication: direct orindirect?
Time-frame: short or long term? Who negotiates: Equals or most
competent?
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Sources of Negotiation Problems Perceptual errors
Unrealistic expectations about likely
outcomes Unwillingness or inability to engage in
real negotiations
Perceived non-negotiability of somedisputes
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