Chapter 1Chapter 1

An Introduction to Negotiation

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NegotiationNegotiation

Negotiation = a way to Negotiation = a way to

beat an opponentbeat an opponent

WRONGWRONG!!

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Negotiation….Negotiation….

A means of resolving conflictsA means of resolving conflicts An alternative to fighting, warAn alternative to fighting, war Agreements can be made permanent Agreements can be made permanent

through rules and lawsthrough rules and laws Today a common means of resolving family, Today a common means of resolving family,

work, and societal disputeswork, and societal disputes Yet, many people avoid, even fear Yet, many people avoid, even fear

negotiation. Why?negotiation. Why? Because they may lack the simple skills, Because they may lack the simple skills,

techniques, and experience to prepare and techniques, and experience to prepare and succeed at negotiation. succeed at negotiation.

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A process where one person is trying to

get another to do or not do something

for him/her

What is negotiation?What is negotiation?

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NegotiationNegotiation

Negotiation Negotiation = =

1. Process to pursue value involving other people1. Process to pursue value involving other people

2. Journey of self-improvement2. Journey of self-improvement

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How Important a Skill Is How Important a Skill Is Negotiation?Negotiation?

““Negotiation is the pre-eminent form of Negotiation is the pre-eminent form of decision making in personal and decision making in personal and

professional life”professional life”

-William Ury-William UryGetting Past NoGetting Past No

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Negotiation: important aspectsNegotiation: important aspects

1. Is everywhere2. Is a process3. Entails a relationship4. Various ways with their own risks and

rewards5. To do or not do something has value for us value for us

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Negotiation is everywhereNegotiation is everywhere

You can You can trytry to negotiate everything to negotiate everything

Negotiation is a skillNegotiation is a skill

Negotiation is not a magic pillNegotiation is not a magic pill

There is no “best” way to negotiateThere is no “best” way to negotiate

Strategy and implementationStrategy and implementation

Basic assumptions to keep in mindBasic assumptions to keep in mind

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Value Negotiation systemValue Negotiation system

Principled Negotiation (Win-Win) Principled Negotiation (Win-Win)

Delivers the most possible value

at the least possible risk

in the widest range of situations

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Three Basic Types of NegotiationThree Basic Types of Negotiation

1. 1. Deal making: : purchase of a new home or purchase of a new home or

carcar

2. 2. Decision making: : parties in a zoning caseparties in a zoning case

3. 3. Dispute resolution: : litigation over property litigation over property

rightsrights

While the three have subtle differences, all While the three have subtle differences, all

are forms of negotiationare forms of negotiation

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Chapter Case: Zoning ChangeChapter Case: Zoning Change

Sophia is seeking a zoning changeSophia is seeking a zoning change

Robert, an inexperienced attorney, is hired Robert, an inexperienced attorney, is hired

by Sophia to represent her before the by Sophia to represent her before the

Zoning CommissionZoning Commission

Neighborhood residents oppose Sophia’s Neighborhood residents oppose Sophia’s

proposed new condo developmentproposed new condo development

The Zoning Commission staff suggest a The Zoning Commission staff suggest a

meeting of all parties to negotiate their meeting of all parties to negotiate their

differencesdifferences

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The Five Elements Common to The Five Elements Common to Negotiation SituationsNegotiation Situations

1. 1. Two or more parties (or interests)Two or more parties (or interests)

2. Interdependence2. Interdependence

3. Common goals3. Common goals

4. Flexibility4. Flexibility

5. Decision-making ability 5. Decision-making ability

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1- Parties and Their Interests1- Parties and Their Interests

Parties can view a conflict situation differentlyParties can view a conflict situation differently

That view, or frame, leads them to focus on That view, or frame, leads them to focus on

some characteristics of the conflict and ignore some characteristics of the conflict and ignore

othersothers

Relationship/task frame: Parties focus on Relationship/task frame: Parties focus on

either ongoing relationship or the subject either ongoing relationship or the subject

matter of the disputematter of the dispute

Emotional/intellectual frame: Parties pay Emotional/intellectual frame: Parties pay

attention to the emotional components of the attention to the emotional components of the

dispute or behaviors of the partiesdispute or behaviors of the parties

Cooperate/win frame: Parties seeks to benefit Cooperate/win frame: Parties seeks to benefit

both parties or to maximize personal gainboth parties or to maximize personal gain

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1/1 Developing Negotiating Skills1/1 Developing Negotiating Skills

Negotiations are rarely pure win-lose or Negotiations are rarely pure win-lose or

win-win propositionswin-win propositions

Negotiations take place under conditions Negotiations take place under conditions

of of ambiguity and uncertaintyambiguity and uncertainty

Most negotiations involve Most negotiations involve existing or existing or

potential potential sources of conflict that impede sources of conflict that impede

reaching agreementreaching agreement

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1/1 Developing Negotiating Skills1/1 Developing Negotiating Skills

Negotiating progress comes in stops and Negotiating progress comes in stops and

starts. Most complex negotiations take place starts. Most complex negotiations take place

between agents of groups and between agents of groups and not the groups not the groups

themselvesthemselves

Complex negotiations often involve a Complex negotiations often involve a team team

approachapproach

Negotiating skills can be Negotiating skills can be learnedlearned

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1/1 Developing Negotiating Skills1/1 Developing Negotiating Skills

Negotiations are chaotic and seldom pass Negotiations are chaotic and seldom pass

sequentially through distinct phases such as sequentially through distinct phases such as

pre-negotiation, deal structuring, detailed pre-negotiation, deal structuring, detailed

bargainingbargaining, and agreement, and agreement

Negotiations involving multiple parties and Negotiations involving multiple parties and

complex issues challenge a negotiatorcomplex issues challenge a negotiator

Most negotiations are linked to other Most negotiations are linked to other

negotiationsnegotiations

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1/2 Bargaining Styles: Dual 1/2 Bargaining Styles: Dual Concern Model Concern Model

(assertiveness/cooperation)(assertiveness/cooperation)

Five bargaining stylesFive bargaining styles

1. Avoiding 1. Avoiding

2. Accommodative2. Accommodative

3. Collaborative3. Collaborative

4. Competing4. Competing

5. Compromising5. Compromising

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Negotiators Styles

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5 ways to manage conflict

Avoidance

Competition (A)

Accommodation (B)

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5 ways to manage conflict

Compromise (C)

Collaboration (D)

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Negotiation Continuum

I win, you lose I win, you lose (competition—A)(competition—A)

I lose or give in I lose or give in (accommodate(accommodate——B)B)

We both get something We both get something

(compromise—C)(compromise—C)

We both We both

“win”(collaborate—D)“win”(collaborate—D)

A B C A B C

DD

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CompetitionCompetition

Plus The winner is clear Winners usually experience gains

Minus Establishes the battleground for the next

conflict. May cause worthy competitors to

withdraw.

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AccommodationAccommodation

Plus Curtails conflict situation. Enhances ego of the other.

Minus Sometimes establishes a

precedence. Does not fully engage participants..

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CompromiseCompromise

Plus Shows good will. Establishes friendship.

Minus No one gets what they want. May feel like a dead end.end.

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CollaborationCollaboration

Plus Everyone “wins”. Creates good feelings.

Minus Hard to achieve since no one knows

how. Often confusing since players can “win”

something they didn’t know they wanted.

2/1 Attributes of Bargaining Styles

Conflict style Strong predisposition

As a positive attribute

As a negative attribute

Weak predisposition

As a strategy

Avoiding Defers confrontational negotiation

Displays tact and diplomacy

Causes stalemates

Prefers hard-nosed bargaining

When not interested in negotiating

Accommodating Derives satisfaction from solving problems

Good team builder

May make unwise concessions

Has little patience for other party’s needs

When hostilities need to be lessened

Competing Views negotiation as a game or sport to win

Excellent instincts for claiming value

Focus on issues that are easy to define win-loss

Believes in treating people fair and avoiding needless conflict

When substantive interests are important but not the relationship

Collaboration Enjoys participating in joint problem solving

Instinctively tries to discover and satisfy the real interests of the parties

May transform a simple problem into a complex one

No patience for the give and take that comes with collaborative thinking

Used when relationship and the substantive outcomes are important

Compromising Eager to conclude negotiation on fair standards

Best when stakes are small and time is short

Can rush the process and agree to unnecessary concessions

Refuses to compromise on principle

Used when stakes are small, time is short, or in a weak bargaining position

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SKILLED NEGOTIATORS AVERAGE NEGOTIATORS

Anticipated twice as many long-Anticipated twice as many long-term common areasterm common areas

Anticipated half as many long-Anticipated half as many long-term areasterm areas

Developed upper and lower limits Developed upper and lower limits for possible settlement pointsfor possible settlement points

Planned goals around fixed Planned goals around fixed settlement pointssettlement points

Flexible on the order of issues to Flexible on the order of issues to discuss discuss

Addressed issues in a Addressed issues in a predetermined orderpredetermined order

Used neutral phrases when Used neutral phrases when proposing offersproposing offers

Used judgmental phrases when Used judgmental phrases when proposing offersproposing offers

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SKILLED NEGOTIATORS AVERAGE NEGOTIATORS

Considered a wide range of Considered a wide range of outcomes or optionsoutcomes or options

Considered a narrow range of Considered a narrow range of outcomes or optionsoutcomes or options

Gave over three times as much Gave over three times as much attention to common ground attention to common ground areasareas

Considered a third less common Considered a third less common ground areasground areas

Anticipated twice as many long-Anticipated twice as many long-term common areasterm common areas

Anticipated half as many long-Anticipated half as many long-term areasterm areas

Developed upper and lower limits Developed upper and lower limits for possible settlement pointsfor possible settlement points

Planned goals around fixed Planned goals around fixed settlement pointssettlement points

Flexible on the order of issues to Flexible on the order of issues to discuss discuss

Addressed issues in a Addressed issues in a predetermined orderpredetermined order

Used neutral phrases when Used neutral phrases when proposing offersproposing offers

Used judgmental phrases when Used judgmental phrases when proposing offersproposing offers 282811

½ Tactics for Success: Find Common ½ Tactics for Success: Find Common Interests by Asking the Right Questions!Interests by Asking the Right Questions!

Open-ended: Open-ended: “What were you hoping to “What were you hoping to settle today?”settle today?”

Leading: Leading: “Don’t you think this proposal “Don’t you think this proposal meets one of your goals?”meets one of your goals?”

Clarifying: Clarifying: “Can you postpone collecting that “Can you postpone collecting that fee untilfee until next year?”next year?”

Gauging:Gauging: “How important to you is the 24- “How important to you is the 24-hour service guarantee?”hour service guarantee?”

Seek agreement:Seek agreement: “If we agree to your “If we agree to your delivery terms do we have a deal?”delivery terms do we have a deal?”

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2- Interdependency

Without interdependency no reason to

negotiate, no motivation to reach agreement

Degrees of interdependency include: one-

shot negotiation, repeat transactions, or

long-term relationship

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3- Common Goals3- Common Goals

The two most important types of goalsThe two most important types of goals

1. 1. ContentContent:: the substance or specifics the substance or specifics

2. 2. RelationshipRelationship: : how the parties want to be how the parties want to be viewed by each otherviewed by each other

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3/1 Other Types of Goals3/1 Other Types of Goals

ProspectiveProspective:: initial objective initial objective

TransactionalTransactional:: objectives that arise during objectives that arise during

negotiationsnegotiations

RetrospectiveRetrospective: : objectives that arise after objectives that arise after

negotiations are completenegotiations are complete

CollaborativeCollaborative: mutual objectives: mutual objectives

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4- Flexibility4- Flexibility

A power shift can quickly occur in a

negotiation situation. A negotiator must be

able to respond in a strategic way.

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5- Decision-Making Ability

Negotiation involves at least two people Negotiation involves at least two people

making decisions that require judgments and making decisions that require judgments and

choices choices

JudgmentJudgment involves recognizing and involves recognizing and

evaluating the content of the options evaluating the content of the options

presentedpresented

ChoiceChoice involves actually selecting an optioninvolves actually selecting an option

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5- Decision-Making Ability

Parties often differ in how they think or Parties often differ in how they think or

process informationprocess information

People develop People develop schema schema as a way of as a way of

organizing current knowledge and as a organizing current knowledge and as a

way to process future informationway to process future information

Some schemas create biases Some schemas create biases

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Biases That May Affect a NegotiatorBiases That May Affect a Negotiator

Availability biasAvailability bias: An outcome probability is : An outcome probability is based on how easy it is to imaginebased on how easy it is to imagine

Representativeness biasRepresentativeness bias: : StereotypingStereotyping Self-serving biasSelf-serving bias: Belief that an option is true : Belief that an option is true

because it benefits thembecause it benefits them Self-enhancement biasSelf-enhancement bias:: Belief that one’s own Belief that one’s own

behavior is more constructivebehavior is more constructive Impact biasImpact bias: One overestimates the : One overestimates the

positive/negative satisfaction of an outcomepositive/negative satisfaction of an outcome

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Multiparty NegotiationsMultiparty Negotiations(three or more parties or interests)(three or more parties or interests)

Usually present significantly different Usually present significantly different challenges and negotiation techniques:challenges and negotiation techniques:

11. . CoalitionsCoalitions form to control the outcomeform to control the outcome

22. . Trade-offsTrade-offs can occur with one or morecan occur with one or more

33. . Majority ruleMajority rule may ignore interests of may ignore interests of minority partiesminority parties

44. . ConsensusConsensus does not mean all parties does not mean all parties agree on all issues, but on the wholeagree on all issues, but on the whole

55.. CommunicationCommunication is more difficult due to the is more difficult due to the number of people and messages required number of people and messages required

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Negotiation Myths and FactsNegotiation Myths and Facts**

MythsMyths

1. Good negotiators 1. Good negotiators are bornare born

2. Experience is a 2. Experience is a great teachergreat teacher

3. Good negotiators 3. Good negotiators take riskstake risks

4. Good negotiators 4. Good negotiators rely on intuitionrely on intuition

FactsFacts1. Good negotiators 1. Good negotiators make concessionsmake concessions

2. Good negotiators 2. Good negotiators never lienever lie3. Good negotiators 3. Good negotiators look for common look for common interestsinterests4. Everyone is a 4. Everyone is a negotiatornegotiator

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