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Advanced Negotiation Labor & Employment Law Specialty Group Presentation Provided by Michael J. Leech, Talk Sense Mediation | 2012 | www.talk-sense.com

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Page 1: Labor & Employment Law Specialty Group Presentationtalk-sense.com/wp-content/uploads/2012/02/Advanced-Negotiation.pdf · Labor & Employment Law Specialty Group Presentation ... –

Advanced Negotiation Labor & Employment Law

Specialty Group Presentation

Provided by Michael J. Leech, Talk Sense Mediation | 2012 | www.talk-sense.com

Page 2: Labor & Employment Law Specialty Group Presentationtalk-sense.com/wp-content/uploads/2012/02/Advanced-Negotiation.pdf · Labor & Employment Law Specialty Group Presentation ... –

Review of Stages

 Negotiation stages – Preparation – Preliminary –  Information Gathering – Competitive – Closing – Post-Closing

 Preparation: Assess Negotiation Styles

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Negotiating Styles

  Cooperative –  Maximize joint return –  Reasonable results –  Courteous, sincere –  Realistic opening –  Objective standards –  Rarely threaten –  Open, disclosing –  Use reasoning

  Competitive –  Maximize own return –  Extreme results –  Adversarial, mislead –  Unrealistic opening –  Positions, no standard –  Use threats –  Minimize disclosure –  Use manipulation

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Negotiating Styles

  Cooperative –  Move towards

opponent –  Cooperative with other

cooperative types –  Competitive with

competitive types –  Viewed by others as

being more effective negotiators

  Competitive –  Move against

opponent –  Competitive with both

types –  More likely to achieve

extremely favorable results

–  Much more likely to reach no agreement

Page 5: Labor & Employment Law Specialty Group Presentationtalk-sense.com/wp-content/uploads/2012/02/Advanced-Negotiation.pdf · Labor & Employment Law Specialty Group Presentation ... –

Information Gathering Stage

 Ascertaining interests – Underlying needs and desires – Distributive vs. win-win situations

 Types of interests – “Survival” needs – Action/behavior needs – Economic needs – Emotional needs

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Emotional Dynamics

  Affect both parties   Demonizing the adversary

–  Inevitable tendency in disputes –  Emotional trade-off –  Cognitive dissonance –  Reactive devaluation

  My intentions—your actions   Discount chance of unexpected outcome   Loss Aversion

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Emotional Dynamics

 Tools to deal with emotional factors – Listen with empathy – Humanize – Stories – Jarring facts – Hard evidence – Common values – Reference to earlier experiences – Framing

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Competitive Stage

  More on persuasion tools

–  Ploys (stupid negotiating tricks)

–  Principled argument

–  Power plays (threats, warnings & promises)

–  Decision tree

–  Dealing with difficult people

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Competitive Stage-Ploys

  Stupid Negotiating Tricks

–  Larger bargaining team

–  Time pressures

–  Mutt & Jeff (good cop-bad cop)

–  Limited authority

–  Uproar (threat of havoc)

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Competitive Stage-Ploys

  Stupid Negotiating Tricks

–  Anger (real or feigned)

–  Walking out & hanging up

–  Irrational behavior

–  Probing challenge to extreme position (Columbo)

–  Getting personal

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Competitive Stage-Ploys

  Stupid Negotiating Tricks

–  Passive aggression

–  “So what?” trivializing concessions

–  Dumb like a fox

–  “Boulwareism”—Last offer at outset

–  Gender and race manipulation

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Competitive Stage - Principled Argument

  Using principled argument to persuade

–  Evenhanded, seemingly objective approach   Logical   Orderly   Comprehensive   Articulate

–  Documented information

–  Going beyond the expected

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Competitive Stage – Power Play

  Using power to persuade-influence adversary’s evaluation of: –  His or her vulnerability –  Your options –  Your capabilities

  Threats: –  Carefully communicated and totally understood –  Proportionate to situation (action is logical) –  Corroborative information (“Yes, I really can do this.”) –  Consistent history of carrying out threats.

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Competitive Stage – Power Play

  Using power to persuade

–  Warnings:   Consequences from another’s actions   Less direct and confrontational   Appear beyond speaker’s control

–  Promises:   “If you . . . , I’ll . . . ”   Less confrontational approach

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Competitive Stage - Decision Tree

  Illustrates the full range of possibilities   Identify key decision points

–  Summary judgment (yes/no) –  Jury verdict (yes/no) –  Damages (artificial levels—high, medium and low)

  Calculate outcome (dollars)   Probability of each outcome (walk down path)   Multiply probability times dollars for each branch   Add up totals for settlement value

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Competitive Stage - Decision Tree

 Hypothetical Problem—breach of contract – Contract construction legal issue (sum. jgt.) – Performance issue (jury question) – Damage issue (mitigation)

 Stages – Summary judgment – defense can win here – Trial- performance issue subject to jury whims – Damages - liability compromise effect

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Sample Decision Tree

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Competitive Stage – Difficult People

 Negotiation with difficult people  Do their end of the bargaining, too  Six Steps

– Prepare – Go to the balcony, diffuse emotions – Step to their side—understand – Reframe the impasse—find the real issue – Build a “golden bridge”—satisfy the need – Use power to educate

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Competitive Stage – Difficult People

 Preparing – Ascertain both sides’ interests – Consider all options to accommodate interests – BATNA

 Assess your BATNA   Improve your BATNA  Assess their BATNA  Decide whether to negotiate

– Alternative Proposals

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Competitive Stage – Difficult People

  Go to the balcony when provoked

–  Pause, say nothing (think)

–  Stonewall, trick or attack—identify to yourself

–  Go over history preceding provocation

–  Time out on negotiations if needed

–  Do not commit on the spot

–  Review your BATNA and theirs

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Competitive Stage – Difficult People

  Step to their side –  Listen and paraphrase –  Ask why –  Acknowledge the point, feelings if appropriate –  Say “yes” without conceding –  Acknowledge their authority & competence –  Articulate your perspective by adding your viewpoint

  Never start with “But…”   Use “I…” instead of “You…”

–  Acknowledge difference, express optimism

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Competitive Stage – Difficult People

 Reframe the issue & start problem solving – Ask problem-solving questions

  “What do you suggest?”   “How is that reasonable to my side?”   “Why not…?”   “What if…?”

– Overcoming Stone walls   Ignore  Reinterpret it as an aspiration  Test it

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Competitive Stage – Difficult People

 Reframe the issue & start problem-solving – Deflecting Personal Attacks

  Ignore it  Address only the issue-related element  Change “you” and “I” into “we”

– Exposing Tricks  Test with questions you know the answer to  Make a reasonable request (assume sincerity)  Create conditions based on truth of statements  Openly identify tricks as impediments to a deal

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Competitive Stage – Difficult People

 Build a “golden bridge” – Make the solution concrete and specific – Overcoming typical obstacles

 Not their idea—build from their ideas or criticisms  Unmet interests—identify & satisfy them   Loss of face—write their victory speech  Too much, too fast—go one step at a time

– Review adversary’s choices (their perspective)

– Don’t rush them

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Competitive Stage – Difficult People

 Using power to educate – “What do you think I’ll do?” (BATNA) – “Where will you be then?” (BATNA) – “Is this proposal better for you than that?” – Enlist available allies – Allow them to choose

 Build in accountability for non-compliance