for bcami symposium on 2012 june 21 sponsored in part by the national research council of canada...

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For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest Thiessen, PEng, PhD Founder, President & CEO eNegotiation System

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Page 1: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

For BCAMI Symposium on 2012 June 21

Sponsored in part by the National Research Council of Canada

Effective Use of Technology in Dispute Resolution

Ernest Thiessen, PEng, PhDFounder, President & CEO

eNegotiation System

Page 2: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Engineering Systems Analyst PhD from Cornell University Inventor of the Smartsettle eNegotiation

System Founder, President & CEO of iCan

Systems Inc. located in Vancouver BC Director, Summit Negotiations Society Repeat speaker at UN sponsored forums

on Online Dispute Resolution Water conflict management lecturer for

UNESCO-IHE

Ernest Thiessen, PEng, PhD

Page 3: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Decision making in a more peaceful,

collaborative & intelligent way throughout the world

Vision

Page 4: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Reach fair decisionsDon’t leave anything out

Goals for Clients

(better than just fair)

Document with a formal agreement

(comprehensive)

(legal)

Be efficient

Do it properly

Page 5: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Ordinary Negotiations suffer

from Four Serious Problems

Page 6: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

RELATIONSHIPS are harmed by using inappropriate tactics,

WEAKER parties are inhibited by a power imbalance,

Huge amounts of TIME and MONEY are wasted with a tedious negotiation dance.

Significant VALUE is

left on the table and outcomes are

unstable.

Page 7: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

InfinityInfinity

Sponsored in part by the National Research Council of Canada

OneOne

Simple Cases Complex Cases

Page 8: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Party A Party C

• Smart• Neutral• Trustworthy• Safe • Secure• Anywhere• Anytime

Smartsettle eNegotiation System

Party B

Better than Fair Deal

Skilled Facilitator(s)Skilled Facilitator(s)

Page 9: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Objectives for Superior Agreements

FAIRNESSFAIRNESS EFFICIENCYEFFICIENCY

Page 10: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Smartsettle addresses these objectives with an

early intervention process that encourages

and rewards collaboration.

The Keys

Page 11: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Prepare and gather information

Summarize issues

Process for Fairness & Efficiency

Page 12: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Negotiate

Create / Modify

Framework for Agreement

Signing ceremony

Reach binding agreement

Improve it

With professional input to insure that all parties are adequately informed

Prepare and gather information

Process for Fairness & Efficiency

Summarize issues

Page 13: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Single issue or many issues

Visual Blind Bidding

Getting to Fair

Page 14: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Joey Jenny

Different Preferences

Low values high values

How much should Jenny get?

Page 15: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Joey Jenny

10% 30%

Somewhere in between

Where is Fair?

Initial Optimistic Proposals

Page 16: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

10 30Tedious

NegotiationDance

Visual Blind Bidding

JennyJoey

Page 17: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

10 13 16 20 24 26 28 30

Suggestions

Visual Blind Bidding

JennyJoey

Page 18: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

10 13 16 20 24 26 28 30

Suggestions

Hidden Acceptances

Visual Blind Bidding

JennyJoey

Page 19: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Suggestions

Hidden Acceptances

13 16 20 24 26 28 3010

Visual Blind Bidding

JennyJoey

Page 20: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

It’s a deal!

Works with any type of negotiation, any number of parties, and any type or number of issues.

10 13 16 20 24 26 28 30

(there may still be hidden value)

Visual Blind Bidding

Page 21: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

10 13 16 20 24 26 28 30

Reward for collaboration

Visual Blind Bidding

Page 22: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Jenny

Joey

2515 20 221918171614 21 23 24

Visual Blind Bidding

Page 23: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

2515 20 221918171614 21 23 24

Joey’s final move

? ?

Zone of Agreement

Smartsettle considers the party that made the smallest last move as most collaborative.

Agreement revealed by Smartsettle

24

Jenny moves and declares Final Session

Page 24: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Jenny

Joey

2414 19 2118161513 20 22 23

Pendulum Arbitration

Rewards fairness

Minimizes the need for arbitration

Minimizes clear-loser problems

17

Dampened

TRIBUNAL

Page 25: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Fruit to Jenny (%)

Peel to Jenny (%)

Who peels the orange

Cake for Joey (pieces)

Multiple Issues to be Negotiated

Page 26: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

2

Best

5

100

100

JennyBoth Mom

Worst

20

0

0

Joey

Jenny’s Bargaining Ranges

Fruit to Jenny (%)

Peel to Jenny (%)

Who peels the orange

Cake for Joey (pieces)

Page 27: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

03

1000

1000

10

90

20

20

Jenny’s Issue Importance

Fruit to Jenny (%)

Peel to Jenny (%)

Who peels the orange

Joey JennyBoth Mom

Cake for Joey (pieces)

Page 28: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Zone of Potential Agreement

100%00

100%

00 Joey

Jenny

Smartsettle Multivariate Process

optimistic

optimistic

walkaways

Fair & Optimal Solution

Efficiency

Frontier

Baseline

Page 29: For BCAMI Symposium on 2012 June 21 Sponsored in part by the National Research Council of Canada Effective Use of Technology in Dispute Resolution Ernest

Watch the Orange Quarrel video on YouTube.

Sign up for a webinar featuring a live Smartsettle simulation.

Just Whet your Appetite?