Negotiation Skills (Fundamentals of More Effective Negotiations and Dispute Resolution)
Daniel G. Gallagher Ph.D. James Madison University
Negotiation Skills
Background
How Many People Have Experience as a Negotiator
Are You Good at itCould You Get Better at Negotiating
Negotiation Skills
What is Good? Feedback? Could we have done better?
Vlaardingen NL - “The Wednesday Market”
Vendor: Scarf For Sale 12 EUROS I negotiated a deal for 10 EUROS
Negotiation Skills
Vendor: Scarf For Sale 12 EUROS I negotiated a deal for 10 EUROS
My wife came home – 2nd Scarf 8 EUROS Same Vendor – Yes!
Why?
Negotiation Skills
Session Objectives
Identify and Discuss Some of the Essentials of More Effective Negotiations (“The Real Important Ones”)
Consider Application to Your Professional and Personal Lives.
Negotiation Skills
Importance of Context (1)
Party A Party B You / Self SelfYou / Agent AgentYou / Team or Unit Mbr Team / UnitYou / Manager Subordinate
SupervisorOthers ???
On Occasion: Add In Party C, Party D, Party Z
Negotiation Skills
Importance of Context (1)
Party A Party B You / Self SelfYou / Agent AgentYou / Team or Unit Mbr Team / UnitYou / Manager Subordinate
SupervisorOthers ???
On Occasion: Add In Party C, Party D, Party Z
Negotiation Skills
Importance of Context (2)Importance of The Relationship
One-Time Deal?or
Ongoing Relationship?
Importance of The Issue Implications for Negotiation Approach & Style?
Negotiation Skills
Negotiation Fundamentals(For More Effective Negotiations)
Have a Clear Goal or Objective!!!
TARGET or TARGET PRICE (TP)
Or Ideal Outcome (non-$)
Negotiation Skills
Example: A Seller
Low$ High$TP
TP: ReasonableAttainable“Aim High” (Don’t Start Short)
Negotiation Skills
Example: A Seller –Also Consider at “Resistance Point (RP)
Low HighRP TP
Settlement Range (Self) + VALUE = “Metric” For Evaluating Your Progress
Negotiation Skills
NEXT: Negotiation Fundamentals(For More Effective Negotiations)
Importance of “INFORMATION”“Knowledge Is Power” (Sir Francis Bacon)
Setting Target and Resistance PointsBuilding Your Arguments and Counter-Arguments
Negotiation Skills
Negotiation – “Convincing Other Party”“Evidence to Support Position”
e.g. Buy A Housee.g. Ask For Pay Increase e.g. Increase Staff Sizee.g. Finalize Terms of Reporte.g. Settling Disputes Between Co-workers
Negotiation Skills
Information (Examples)Market ValuesPast PracticeLegal Requirements / GuidelinesIndustry Standards (Objective)Codes of Conduct????Personal: Motivation / Reputation / Style ?
Negotiation Skills
INFORMATION Value of Information
SWORD & SHIELD
Proactive & Defensive
Negotiation Skills
Party A Party B
Common Information X X
Shared ? ?
Kept To Self ? ?
Negotiation Skills
NEXT: Negotiation Fundamentals
Bargaining Power
Information
+ TIME
Negotiation Skills
Bargaining Power
TIMEAvoid The Rush / Urgency
Paris Peace TalksUK Exit from EU / Deadlines Middle East: “You Have the Watches, We Have the Time”
Is it Real?
Overheard
“It’s Thursday, I want to Be Out Of Tokyo and Home By Friday!”
Tokyo Hilton - Breakfast
Negotiation Skills
“It’s Thursday, I Want to Be Out Of Tokyo and Home By Friday!”
“Now they (Japanese Co.) want us to go to Osaka.”
“ With anything from 65 to 70 we could have a Deal.”
Negotiation Skills
“Getting to Yes”
Fisher and Ury (& Patton)Harvard University Project on Negotiations
“Getting to Yes”
Fundamental Components:1. Interests2. Options3. Standards4. People5. Alternatives6. Closure
HAVE A “BATNA”
Negotiation Skills
B. A. T. N. A
BestAlternativeTo aNegotiated Agreement
Reduce Urgency
“Getting to Yes”
Getting To Yes: Negotiating Agreement Without Giving In
Roger Fisher, William Ury, (& Bruce Patton)
Orientation To Negotiation Process?Win- LoseWin – Win
Negotiation Skills
Distributive Integrative Bargaining
“Getting to Yes”
Fundamental Components:1. Interests2. Options3. Standards4. People5. Alternatives6. Closure
Negotiation Skills
Fundamental Distinction
“Interests” v. “Positions”
Negotiation Skills
PositionsThings you say you
want
Demands
Things you say youwill or will not do
InterestsUnderlying Motivations
Needs and ConcernsFears and Aspirations
Negotiation Skills
Interest Position
I Want a 10% Salary Increase!
I Want to Change Starting time to 9:30
Negotiation Skills
“We need the ability to extend all shifts by one half-hour to meet customer demand.”
Or
“We need to schedule in a manner which allows us to better meet customer demand.”
But Most Importantly ………..
Negotiation Skills
Discovering Interests
Look behind positions for the underlying interests
Put yourself in the other side’s shoes
Ask “Why?”
Ask “Why Not?” What would be wrong with . . . ?
Negotiation Skills
Create - Options:
Identification of “Possible Agreements” or “Pieces” of an Agreement.
What “Mediators” Do!!!
Negotiation Skills
Process Focus
Attention:
Separating the Process of “Deciding” From the Process of “Inventing” Options
The Role and Process of “Brainstorming”
Negotiation Skills
No Criticism
No Commitment
No Evaluation
“Just Invent”
Two Ways To Talk About an Issue
Talk at the Other Side
Focus on the Past
Talk About Who is Right
Blame Them for the Problem
Score Points
Talk with Them
Focus on the Future
Talk About What is to be Done
Tackle the Problem Jointly
Clarify Interests, Invent Options
Negotiation Skills
CommunicationsListen Actively ( ½ or more of Bargaining is Listening) ? !! ?
Paraphrase their words to show you understand(within reason).
General Negotiation – Conflict Styles
“Never Get Angry. Never Make a Threat. Reason With People.”
Don CorleoneThe Godfather
General Negotiation – Conflict Styles
Empathy
SoftAssertiveness
Hard Line
Hard Line Hard
General Negotiation – Conflict Styles
Con
cern
ForR
elat
ions
hip
Concern For Own InterestAssertiveUnassertive
Coo
pera
tive
Unc
oope
rativ
eAccommodate/Yield
Compromise
Collaborate
AvoidanceCompete/Dominate
(Contending)
General Negotiation – Conflict Styles
Con
cern
For
Rel
atio
nshi
p
Concern For Own InterestAssertiveUnassertive
Coo
pera
tive
Unc
oope
rativ
eAccommodate/Yield
Compromise
Collaborate
AvoidanceCompete/Dominate
(Contending)
Negotiation / Conflict ResolutionStyle Profile
Competitive Collaborative Compromising Avoiding Accommodating
0123456789
CPT COL COM AVD ACC
EXECSSMgr2010
Negotiation / Conflict ResolutionStyle Profile ROMANIAN COLLEGE
STUDENTS
Style AVGScore
Competitive 8.3 Collaborative 5.2 Compromising 6.7 Avoiding 5.7 Accommodating 4.1
Selection of a Style
Styles Should Be “Situational”
Recall – “CONTEXT”
“One Size Does Not Fit All”
Be able to move among styles.Expand your “Bandwidth.”
“Competing” and “Collaboration” – Hardest Tactics
Selection of a Style(s)
What’s the Other Party’s Style?
Watch and Avoid Serious Mismatches
You Them
Avoiding Competitive
Collaborating Competitive
Questions
Negotiations Skills
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