Negotiation Fundamentals

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Negotiation Fundamentals

• Kem Lowry
• Program on Conflict Resolution
• University of Hawaii at Manoa

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Objectives for this Session

• Contrast conventional negotiation techniques with
  the interest-based approach to negotiation
• Examine key concepts including positions,
  interests, principles, BATNA
• Practice negotiation skills
• Examine the role of culture in negotiations

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Conflict Inventory

• Who has experienced a conflict (problem, issue,
  scrape, misunderstanding, etc) in the last month?
• How did you respond? What was your conflict
  strategy?

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Conflict Resolution Options

• Avoidance
• Capitulation
• Suppression
• Accommodation
• Problem solving (e.g. conciliation, negotiation,
  mediation, facilitation)
• Escalation
• Confrontation

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Problem Solving Options

• Conciliation neutral 3rd party assists
  disputants by acting as go-between
• Arbitration neutral 3rd party acts as judge
• Negotiation parties confer to arrive at mutually
  satisfactory solution
• Mediation neutral 3rd party assists parties in
  their own negotiations
• Facilitation neutral 3rd party assists in group
  discussions

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Everyone Negotiates

• Buying a car, house or other object for which the
  price may not be fixed
• Establishing a salary, workplace tasks, office
  conditions, etc.
• Organizing team tasks or priorities
• Allocating household tasks
• Deciding how to spend a free evening

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Conventional Negotiations

• Focus on winning
• Assert positions/personal preferences
• Concede stubbornly
• Seek compromises based on arbitrary divisions
  (e.g. split the difference)
• Engage in threats, bluffs or other negotiation
  tactics

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Conventional Negotiation Tactics

• Good cop/bad cop
• Highball/lowball
• Bluff
• Threats
• Nibble
• Appeals to reason

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An Alternative Interest-Based Negotiations

• Separate the people from the problem
• Focus on interests, not positions
• Invent options for mutual gain
• Insist on objective criteria
• Roger Fisher William Ury. 1991. Getting to
  Yes. 2nd ed. New York Penguin.

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Principle 1 Separate the People from the Problem

• Disentangle the people from the problem
• Deal with the people problem acknowledge
  perceptions, emotions
• Listen actively
• Speak to be understood
• Speak about yourself, not them

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Principle 2 Focus on Interests, Not Positions

• Positions What disputants say they want in a
  negotiation a particular price, job, work
  schedule, change in someone elses behavior,
  revised contract provision, etc.
• Interests Underlying desires or concerns that
  motivate people in particular situations (May
  sometimes be the same as their positions!)

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Focusing on Interests

• Problem barking dog
• My interpretation my neighbor doesnt care about
  my needs
• My position quiet the dog
• My interest I need sleep
• Issue how to control the barking

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Focusing on Interests

• Problem reefs are dying
• My interpretation inadequately controlled
  construction in near-shore areas results in
  runoff that smothers reefs.
• My position stop or severely limit land
  disturbance
• Interest reducing the rate of coral loss
• Issue Whats the real source of reef
  degradation? How can runoff be reduced/
  controlled?

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Types of Interests

• Substantive How people describe the issue
  barking dogs, cars blocking driveway, dying reefs
• Relational How people they should be treated or
  acknowledged.
• Procedural How people think issues should be
  addressed (e.g. courts, hooponopono)

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Principle 3 Invent Options for Mutual Gain

• Focus on the variety of ways issues/ interests
  (yours/theirs) might be addressed?
• Avoid assuming theres a single solution
• Separate brainstorming from evaluation of options
• Dont assume zero-sum conditions
• Think creatively

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Principle 4 Insist on Objective Criteria

• Fair standards market value, precedent, blue
  book value, professional standards, best
  practice, industry average, equal treatment,
  etc.
• Fair procedures e.g. last best offers, taking
  turns, drawing lots

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When is the Interest-Based Approach Appropriate?

• Other party is willing to problem-solve
• There is sufficient trust and informationor a
  willingness to develop them
• On-going relationships are important
• Commitment to carry out the agreement is needed
• Quality agreement is more important than an
  expedient one

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When is the Interest-Based Approach Unnecessary?

• On-going relationships are not important
• Negotiation is viewed as strictly distributive
  (e.g. buying a car)
• Lack of commitment to problem-solving on the part
  of one or more parties
• One or more parties see the negotiation as
  involving fundamental rights (but some contention
  about this)

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Prepping for Your Negotiation

• What are our interests? What are theirs? How can
  we find out?
• Whats our BATNA? Whats theirs?
• Whats our WATNA? Theirs?
• What do we know about their circumstances that
  might affect the negotiations?
• Whats their negotiation style? Etc.

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A BATNA
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Negotiating Steps

• Develop ground rules
• Jointly identify issues
• Explore interests
• Develop objective standards
• Brainstorm options
• Evaluate options using standards
• Try to reach consensus decision

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Adapting General Principles to Specific
Negotiations

• Pacing fast or slow?
• Formality high or low?
• Oral or written agreements which are more
  binding and inclusive?
• Bluntness of communication direct or indirect?
• Time-frame short or long term?
• Who negotiates Equals or most competent?

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Sources of Negotiation Problems

• Perceptual errors
• Unrealistic expectations about likely outcomes
• Unwillingness or inability to engage in real
  negotiations
• Perceived non-negotiability of some disputes