Everyday Negotiation Skills

Michael D. Rust, J.D.Executive Director

How do people resolve conflict?

Avoidance Negotiation Mediation Arbitration Litigation Violence

Lower cost of resolution

More control of outcome by parties

Higher cost of resolution

Less control of outcome by parties

Negotiation

•All of us are negotiating at all times

•We should learn how to negotiate

Question

• If I told you that there was a nut that I needed taken off a bolt, what tool would you use? • Wrench• Fingers• WD40

• The right tool at the wrong time is the wrong tool

What does a negotiation look like?

Offer

Counter Offer

Counter Offer

Counter Offer

Acceptance

Offer

Acceptance

Tool #1Interest Based Negotiation

Distributive vs. Interest Based• Win – Lose vs. Win – Win• No sharing info vs. Sharing Info• Get the pie vs. Expand the pie• Positions vs. Interests

Interest Based Negotiation• Expand the pie• More than “win-lose”• Not mere compromise

• Example• Looks to parties’ interests• Not positions• “Why?”

• Getting to Yes• Fisher & Ury• Patton• 200 pages

Tool #2Listening

Listening• Mia: "When other people talk, do you listen, or do you wait to talk?"

• Vincent: "I wait to talk."

Active Listening• Take a breath• Studies show people listen at only a 25% effectiveness level• Remove distractions

• Focus on listening as your first priority

• Not simply Parroting what they said• Not a Bobble-head

Tool #3Talk to Them (not yourself)

Communication Preferences• There is no “right way” to communicate• People will find you more interesting if you communicate with them the way that they prefer to communicate• More believable• More persuasive

Communication Example

• Communicate in the way the listener is listening• Not the way you want to communicate

Recognizable Communication Types

• DominancePerson places emphasis on accomplishing results, the bottom line, confidence

• Speak in bullet points!

• Focus on the solution, not the problem

• InfluencePerson places emphasis on influencing or persuading others, openness, relationships

• Start with a story!• Don’t overload with

details

Recognizable Communication Types

• SteadinessPerson places emphasis on cooperation, sincerity, dependability

• Give them time!• Be amiable and

personal

• ConscientiousnessPerson places emphasis on quality and accuracy, expertise, competency

• Data, data, data, data, data!

• Leave out emotional appeal

This Presentation is a Negotiation

• I try to talk to all styles in one presentation• Bullet points• Stories• Cartoons• Utilizing experts

Tool #4Recognize Differences, Not Wrongs

Actual Example

Tool #5Good Communication

Communication

• Word choice• Exceptionally important

• Nonverbal• Body language• Appearance• Tone• Pace• Location

Electronic Communication

• Email is fantastic tool• Txting is gr8 2• We are excluding 93%!• :-)• Not very professional

Tool #6 (The BIG One)Preparation

Biggest Tip

• Prepare for Negotiation• Why would you prepare for a business pitch and not a negotiation?• Know your BATNA/WATNA• “Know” their BATNA/WATNA

• Know what you will accept• Plan your concession strategy

BATNA/WATNA/MLATNA•Must consider your and their BATNA and WATNA• Best Alternative To a Negotiated Agreement• Provides a “best case

scenario” to compare settlement offers

• Worst Alternative To a Negotiated Agreement• Provides a “worst-case

scenario”

•BATNA and WATNA (and MLATNA) can lead to probability analyses

Decision Tree Analysis

Don’t Get Caught in a Negotiation You Aren’t Ready For

• Martin Latz – Former White House negotiator• Never answer the phone and

negotiate. Find an excuse to call them back, prepare, and then call them back and negotiate.

Plan Your Concession Strategy

Offer

Counter Offer

Counter Offer

Counter Offer

Acceptance

Recap• Tool 1• Interest Based

Negotiation

• Tool 2• Listen

• Tool 3• Talk to Them (not

yourself)

• Tool 4• Recognize

Differences, Not Wrongs

• Tool 5• Good

Communication

• Tool 6 (The BIG One)• Always be

Prepared

Thank youAny questions?