Interest-Based Negotiation
TrainingNick Tomb, Izumi Wakugawa
Global Majority
Promoting Peace Through Dialogue Amman, Jordan
July 21, 2008
2 Negotiation Approaches
CompetitiveInterest-
based
Competitive (Distributive)
Competitive (Distributive)
Relies on “Positional Bargaining”
Parties stake out a position and engage in a contest of wills/egos
Seek concessions from other partyPursue one (single) solution to the
problemDevelop a single “bottom line” as
part of the single solution sought
Relies on “Positional Bargaining”
Parties stake out a position and engage in a contest of wills/egos
Seek concessions from other partyPursue one (single) solution to the
problemDevelop a single “bottom line” as
part of the single solution sought
Interest-based (Principled)
Interest-based (Principled)
1. Hard on problem, soft on PEOPLE
2. Identify INTERESTS that compel various positions
3. Brainstorm multiple OPTIONS to find best solution(s)
4. Develop BATNA (Best Alternative to a Negotiated Agreement)
5. Rely on OBJECTIVE CRITERIA (Fair standards)
1. Hard on problem, soft on PEOPLE
2. Identify INTERESTS that compel various positions
3. Brainstorm multiple OPTIONS to find best solution(s)
4. Develop BATNA (Best Alternative to a Negotiated Agreement)
5. Rely on OBJECTIVE CRITERIA (Fair standards)
1. People (the parties)
1. People (the parties)
Research/Investigation:
Who are your counterparts?What are their fears, ambitions,
goals, and preferred outcomes?Who is their constituency? To whom
must they defend the agreement?
Research/Investigation:
Who are your counterparts?What are their fears, ambitions,
goals, and preferred outcomes?Who is their constituency? To whom
must they defend the agreement?
People (cont’d)People (cont’d)
What is their AUTHORITY?
Power to make a dealPower to “bind” their government,
company, organizationIs it limited? Who has ultimate
authority? How to determine? ASK!!!
What is their AUTHORITY?
Power to make a dealPower to “bind” their government,
company, organizationIs it limited? Who has ultimate
authority? How to determine? ASK!!!
People (cont’d)People (cont’d)
What is your AUTHORITY?
Do you have power to enter agreement?
To whom do you report?Use of “limited authority” to your
advantage.
What is your AUTHORITY?
Do you have power to enter agreement?
To whom do you report?Use of “limited authority” to your
advantage.
People (cont’d)People (cont’d)
Build the RelationshipFuture DealingsReputation (honesty, ethics,
implementation of agreements)Multiple Parties, Interest
Groups & Constituencies
Build the RelationshipFuture DealingsReputation (honesty, ethics,
implementation of agreements)Multiple Parties, Interest
Groups & Constituencies
2. Identify Interests2. Identify Interests
Interests are what lie behind positionsOften related to security,
sovereignty, legitimacy, reputation, economic security, justice, survival needs, moral commitment, etc.
What are your INTERESTS?
Interests are what lie behind positionsOften related to security,
sovereignty, legitimacy, reputation, economic security, justice, survival needs, moral commitment, etc.
What are your INTERESTS?
Identify Interests (cont’d)
Identify Interests (cont’d)
What are their INTERESTS?To determine interests, ask “Why”
or:“What is it about this price, solution, or offer
that you consider most important?”
What are other parties’ INTERESTS? govt. agencies, organizations, consumers,
clients, voters, media, competitors, etc.
What are their INTERESTS?To determine interests, ask “Why”
or:“What is it about this price, solution, or offer
that you consider most important?”
What are other parties’ INTERESTS? govt. agencies, organizations, consumers,
clients, voters, media, competitors, etc.
3. Invent Options3. Invent Options
A. Create atmosphere of open BRAINSTORMING, to develop MULTIPLE OPTIONS
B. Be Creative - Invent Multiple Options/Solutions
C. Expand the “Pie”D. By understanding the parties’ real
INTERESTS you can fashion creative options/solutions that they may not have considered
A. Create atmosphere of open BRAINSTORMING, to develop MULTIPLE OPTIONS
B. Be Creative - Invent Multiple Options/Solutions
C. Expand the “Pie”D. By understanding the parties’ real
INTERESTS you can fashion creative options/solutions that they may not have considered
Invent Options (cont’d)Invent Options (cont’d)
E. Use flip charts, butcher paper, black boards, white boards, etc.
F. Create a JOINT PROBLEM SOLVING relationship.
G. Invite wild, extreme, unorthodox, ideas and options.
H. Create a LISTI. DO NOT reject or select any proposal
during a brainstorming session.
E. Use flip charts, butcher paper, black boards, white boards, etc.
F. Create a JOINT PROBLEM SOLVING relationship.
G. Invite wild, extreme, unorthodox, ideas and options.
H. Create a LISTI. DO NOT reject or select any proposal
during a brainstorming session.
Invent Options (cont’d)Invent Options (cont’d)
J. Prioritize the list by eliminating, amending, selecting, and ranking potential options/solutions.
K. Introduce a SINGLE TEXT DOCUMENTYou present a written draftYou INVITE critique, amendments, and editsObtain signatures/initials on single text
documents - interim agreements, procedural agreements (=Confidence boosters.)
J. Prioritize the list by eliminating, amending, selecting, and ranking potential options/solutions.
K. Introduce a SINGLE TEXT DOCUMENTYou present a written draftYou INVITE critique, amendments, and editsObtain signatures/initials on single text
documents - interim agreements, procedural agreements (=Confidence boosters.)
4. Develop “BATNA”4. Develop “BATNA”
“Best Alternative to a Negotiated Agreement” in three steps:
Step #1. Develop your “Walk Away Alternative” (OPTION)
Market place exampleEmployment example
“Best Alternative to a Negotiated Agreement” in three steps:
Step #1. Develop your “Walk Away Alternative” (OPTION)
Market place exampleEmployment example
Develop BATNA (cont’d)
Develop BATNA (cont’d)
Step#2. Build your BATNA Research/investigation Use of “objective criteria” or evidence to
support your positionsIncreases your negotiating power
Step#3 Reduce power of their BATNAResearch/investigation/use of evidence,
objective criteriaThey gain more if they stay in the negotiation
Step#2. Build your BATNA Research/investigation Use of “objective criteria” or evidence to
support your positionsIncreases your negotiating power
Step#3 Reduce power of their BATNAResearch/investigation/use of evidence,
objective criteriaThey gain more if they stay in the negotiation
5. Use Objective Criteria
5. Use Objective Criteria
Use of “Fair Standards” to assist in the resolution of disputes/conflicts
Introduce a non-controversial authority or standard:
Precedent decisions (legal, administrative, WTO, NAFTA, etc.)
Industry practice and standards (example: prevailing wage rates)
Scientific StudiesExpert testimony or analysis
Use of “Fair Standards” to assist in the resolution of disputes/conflicts
Introduce a non-controversial authority or standard:
Precedent decisions (legal, administrative, WTO, NAFTA, etc.)
Industry practice and standards (example: prevailing wage rates)
Scientific StudiesExpert testimony or analysis
Objective Criteria (cont’d)
Objective Criteria (cont’d)
Easier to accept an “outside authority” or established standard as a “fair means” of dispute resolution
Useful phrases: “All we want is an agreement that is fair…”“Show me why you consider this to be a fair
offer?”“How did you arrive at this amount,
proposal, position, etc.?”
Easier to accept an “outside authority” or established standard as a “fair means” of dispute resolution
Useful phrases: “All we want is an agreement that is fair…”“Show me why you consider this to be a fair
offer?”“How did you arrive at this amount,
proposal, position, etc.?”
5. Objective Criteria3. Invent
Options
2. Identify Interests
1. Focus on People
Interest-based Negotiation:
Summary
4. Develop BATNA
Developing Your Negotiation Strategy (5
Steps)
Developing Your Negotiation Strategy (5
Steps)1. Problem Identification
What is the nature of the problem?
2. Determine your Preferred OutcomeRemember, there may be multiple options
or solutions that will satisfy your interests.Can you describe what you want? Can you
put it in writing? Are your team members in agreement? Can you speak with “one voice”
1. Problem IdentificationWhat is the nature of the problem?
2. Determine your Preferred OutcomeRemember, there may be multiple options
or solutions that will satisfy your interests.Can you describe what you want? Can you
put it in writing? Are your team members in agreement? Can you speak with “one voice”
Developing Your Negotiation Strategy
(cont’d)
Developing Your Negotiation Strategy
(cont’d)3. What is your Counterpart’s
Preferred Outcome?4. Reverse Roles
Can you articulate your counterpart’s interests, goals, and BATNA?
Engage in active role-playing with your
negotiating team members.
3. What is your Counterpart’s Preferred Outcome?
4. Reverse RolesCan you articulate your counterpart’s
interests, goals, and BATNA?Engage in active role-playing with
your negotiating team members.
Developing Your Negotiation Strategy
(cont’d)
Developing Your Negotiation Strategy
(cont’d)5. Make a Chart5. Make a Chart
People Interests Options BATNA Criteria
Six Negotiation Techniques
Six Negotiation Techniques
1. Use of time, place, & environment
1. Use of time, place, & environment
Negotiation Techniques (cont’d)
Negotiation Techniques (cont’d)
2. Active Listening Reframe what you have heard
“Let me see if I understand you correctly…”“What I understand you to be saying is…”“Correct me if I am wrong, but what I hear
you saying is...”Tells your counterpart that you are listening;
you are hearing what they are trying to expressYou don’t have to agree with them, you are just
establishing the fact that they are being heard
2. Active Listening Reframe what you have heard
“Let me see if I understand you correctly…”“What I understand you to be saying is…”“Correct me if I am wrong, but what I hear
you saying is...”Tells your counterpart that you are listening;
you are hearing what they are trying to expressYou don’t have to agree with them, you are just
establishing the fact that they are being heard
Negotiation Techniques (cont’d)
Negotiation Techniques (cont’d)
Ask Questions“What if we did x, y, or z ...?”“How do you arrive at that position?”“What information do you rely upon..?”“How do you feel about…?”“Do you think it would work if we tried...?
Why not? How could we make it work better? What would you recommend? What would be acceptable to you?”
Ask Questions“What if we did x, y, or z ...?”“How do you arrive at that position?”“What information do you rely upon..?”“How do you feel about…?”“Do you think it would work if we tried...?
Why not? How could we make it work better? What would you recommend? What would be acceptable to you?”
Negotiation Techniques (cont’d)
Negotiation Techniques (cont’d)
3. Take Breaks (go to the balcony)DON’T be pressured into a hasty,
unwise, or rapid decision“Example: “You have made an
interesting proposal. Let me take five minutes to discuss it with my colleagues (team members).”
3. Take Breaks (go to the balcony)DON’T be pressured into a hasty,
unwise, or rapid decision“Example: “You have made an
interesting proposal. Let me take five minutes to discuss it with my colleagues (team members).”
Negotiation Techniques (cont’d)
Negotiation Techniques (cont’d)
DON’T be pressured into a “TAKE IT OR LEAVE IT ULTIMATUM”“I realize you have put much time and
thought into the development of this proposal. I would like to review it with the same care and consideration with which you prepared it. Let’s meet again tomorrow at the same time.”
DON’T be pressured into a “TAKE IT OR LEAVE IT ULTIMATUM”“I realize you have put much time and
thought into the development of this proposal. I would like to review it with the same care and consideration with which you prepared it. Let’s meet again tomorrow at the same time.”
Negotiation Techniques (cont’d)
Negotiation Techniques (cont’d)
4. Use “SINGLE TEXT DOCUMENTSWrite down your proposals as to
procedural agreements, timetables, substantive terms and conditions, etc.
5. Identify DIRTY TRICKS, STRONG ARM TACTICS & RUDE BEHAVIOR
6. Build your REPUTATION … for fairness, follow-through, and
reliable implementation of agreements.
4. Use “SINGLE TEXT DOCUMENTSWrite down your proposals as to
procedural agreements, timetables, substantive terms and conditions, etc.
5. Identify DIRTY TRICKS, STRONG ARM TACTICS & RUDE BEHAVIOR
6. Build your REPUTATION … for fairness, follow-through, and
reliable implementation of agreements.
Negotiation Skills Application
Negotiation Skills Application
Group ExercisesGroup Exercises
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