lec 2 communicating in negotiations

8/13/2019 Lec 2 Communicating in Negotiations

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Communicating in Negotiations . . .


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A Working Definition . . .Negotiation: A process where two or more

people work to reach agreement on a way

forward.


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To Start . . .

All negotiations take place in a context

Physical EnvironmentPsycho / Emotional

Temporal


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If you know the enemy and know yourself

you need not fear the results of a hundred battles.

Sun Tzu

You MUST prepare in order to get a

Successful negotiation outcome.

Anything else is just lucky.Prior Preparation Prevents Poor

Performance !


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By Way of Preparation . . .You have six friends that serve you true, their names are

What ?

Why ?

How ?

When ?

Where? and

Who?

Rudyard Kip l ing


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Forewarned is Forearmed . . .

Now the reason the enlightened prince

and the wise general conquer the enemy

whenever they move and theirachievements surpass those of ordinary

men is foreknowledge.

Sun Tzu The Art of War

Some 2000 years ago !


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The Six Friends and PreparationWho are you dealing with?

What do they want?

Why do they want it?

How badly do they want it?When do they want it by?

Who else is involved?

What is their interest?

What do you want?


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Phases in Negotiation (Rose 1987)

Clarify wants

Put forward proposals Bargain

Gain agreement Follow-up


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Elements in any Negotiation ( After Dwyer, 2002)

The issues themselves

The relationships to be preserved

Moving through different phases

Maintaining the relationship

Making decisions

Managing differing perceptions of the situation


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Parties to the negotiation situation

More powerful andless powerful parties

Power of each of theparties not always

known to the otherDiscover their power


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Sources of Power in any context, includingNegotiation

(French and Raven Power Typology)

Legitimate Power By Authority / Legal

Expert Power By knowledge / expertise

Reward Power By rewarding

Co-ercive Power By force / punishment

Referent Power By status, charisma


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Approaches to the Negotiation

I win, they lose Win - Lose

I lose, They win Lose - Win

We both win Win - Win

We both lose Lose - Lose


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Another PerspectiveCompete Must Win or Lose

Collaborate Try to both win

Compromise Win some, lose some

Capitulate Give in

Clear Out Leave, refuse to engage


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Collaborative and Co - ProblemsolvingResearch / Prepare

Hear what the other party wants to achieve

State what you wantCouch it in terms of whats in it for them, whats init for you

Indicate what appears to be common ground

Sum up progress

Identify what remains to be agreed


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Balancing the Goal with Maintaining the Relationship

Source: Communication in Business, 2e, Judith Dwyer, Pearson, 2002


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The WATNA and BATNA of Your Negotiation

What is the Worst Alternative To a Negotiated Agreement?

Clarify this for yourself

What is the Best Alternative To a Negotiated Agreement

Clarify this for yourself as well

Your outcome will be somewhere between these two points

Can you live with that?


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Good Negotiator Style

Plans and Prepares

Can Work under pressure

Adopts a commonsense approach

Communicates effectivelyverbal, non-verbal, listens actively

Knows their area

Assertive but not aggressive

Has integrity, builds trust

Identifies interests of all

Sets objectives that are SMART

Follows through - DWYPYWD

(Adapted from DWYER, 2002)


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CONFLICT AND NEGOTIATIONConflict can arise in modern organisations, due to:

1. Resource scarcity

2. Differentiation

3. Parochial perspectives

4. Misunderstandings.

Four common approaches to conflict in organisations are:

1. Smoothing

2. Dominance

3. Compromise

4. Integrative Problem Solving


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Five Negotiation Styles

Partysdesire to

satisfy

OWN

concern

Partys desire to satisfy OTHERS concern

Uncooperative Cooperative

Assertive

Unassertive

Competitive

Domination

Collaborative

Integration

Sharing Compromise

Clear-Out

Neglect

Capitulate

Appeasement


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Using the Competitive Style

When quick decisive action is vital (eg: in

emergencies)

On important issues where unpopular actions need

implementing (eg; cost-cutting, enforcing unpopularrules, discipline).

On issues vital to company welfare when you know

youre right.

Against people who take advantage of non-

competitive behaviour.


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Using the Clear-Out Approach -

When an issue is trivial, or when more important issues are

pressing.

When you perceive no chance of satisfying your concerns.

When potential disruption outweighs the benefits ofresolution.

To let people cool down and regain perspective.

When gathering information supersedes the need to make an

immediate decision.

When others can resolve the conflict more effectively.

When issues seem tangential or symptomatic of other

issues.


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Using the Capitulative Approach

When you find you are wrongto allow a better position to

be heard, to learn and to show your reasonableness.

When issues are more important to others than to yourself

to satisfy others and maintain cooperation.

To build social credits for later issues (Steven Coveys

emotional bank account).

To minimise loss when you are outmatched and losing.When harmony and stability are especially important.

To allow subordinates to develop by learning from mistakes.


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Using the Compromising StyleWhen goals are important, but not worth the effort or

potential disruption of more assertive modes

When opponents with equal power are committed to

mutually exclusive goals

To achieve temporary settlements to complex issues

To arrive at an expedient solution under time

pressureAs a backup when collaboration or competition is

unsuccessful


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Using the Collaborative Style

To find an integrative solution when both sets of

concerns are too important to be compromised

When your objective is to learn (the learning

organisation)

To merge insights from people with different

perspectives

To gain commitment by incorporating concerns into aconsensus (= a decision you can live with)

To work through feelings which have interfered with a

relationship


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Problem-Solving / Collaborative Style VS Bargaining Style

Bargaining (after Mukhi, 1990)

Parties state their positions

Sometimes misrepresent situations

Sometimes exaggerate strength of concerns

Sometimes withhold information

Sometimes make threats

In bargaining, the issue is often seen as amatter of winning and losing


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Problem-Solving / Collaborative Style VS Bargaining Style

Collaborative Approach Involves Three Steps:

1. Identifying essential / underlying concerns of each party

2. Searching for alternatives & identifying consequences

3. Identifying the most satisfying alternative for all

Effective problem solving depends upon candid exchange of

accurate information - Does not always occur in negotiation

processes

Effective negotiations can be approached from bargaining or

collaborative perspectives


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Frameworks for Thinking on Your Feet

Primary Objective: Win some time, even a few seconds to gather thoughts. Trythe Following

Re-phrase the proposition or question

Summarise the situation thus far

Reflect positively on progress so far

Seek Clarificationthey will re-phrase

Ask a questionwhat, why, when, where etc

Switch from content to process

Ask for time with your colleague / time out

Describe the importance of the outcome, its impact, need to feel right

Move to a flipchart / whiteboardDraw diagram / record points

Any combination of the above


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Psychological Barriers to Negotiations

Fear

Of lack of faith in your abilities

Of what the other party will do to you

Of being ripped off

Of being beaten and losing

Of being seen as pushy

Of upsetting the other party / losing the relationship


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Psychological Barriers to NegotiationsOvercoming the Fears

Preparation

You have a right to be assertive

You can lose if you set up a competing negotiation

Develop a thicker skinSometimes you cant win. It happens to all of us

You will make mistakes. Welcome to your learning experience!

Have Learning Experiences that dont kill or bankrupt you

Do realistic risk assessmentsWhat is your WATNA and BATNA?

Express confidence and a positive outlook


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Closing the Deal

After problem-solving and identifying the best alternative

Put the Proposition

Shut UPListen for agreement

Paraphrase the agreement Record the agreement if necessary

Express confidence / satisfaction with the outcome

Signal the next step that parties have agreed to

Set a date / future event------------------------------------------------------------------------------------------

Follow through to maintain trust. Absolutely Essential.


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Final Hints - Negotiation

Most of this is common sensebut thats not common!

Dont rush. Eeeeasyyy does it

Stay away from desperate men and women.

Desperadoes are dangerous to themselves and to others.Learn to walk away from deals or propositions that sound too good to be true.

They almost always are.

There is no instance of a nation benefitting from prolonged warfareSun Tzu


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References

Cleary, Thomas, (Translator), The Art of War-Sun Tzu, Shambala

Publications Inc, 1988

Dwyer, Judith, Communicat ion in Business, 2e, Pearson, 2002

French and Raven, quoted in Organisat ional Behaviou r A Global

Perspect ive3e, Wood, Chapman, et al John Wiley, 2004

Mukhi - quoted in Dwyer (2002), ibid.

Rose - quoted in Dwyer (2002) ibid.

lec 2 communicating in negotiations

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