Proactive Negotiation: Leading the Conversation with Confidence

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Proactive Negotiation Leading the Conversation
with Confidence

• Charles Doran
• Mediation Works Incorporated

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A Negotiation Example

• What follows is a transcript of a radio
  conversation between a U.S. naval ship and
  Canadian authorities off the coast of
  Newfoundland.
•  
• Canadians Please divert your course 15 degrees
  to the south to avoid a collision.
•  
• Americans Recommend you divert your course 15
  degrees to the north to avoid a collision.
•  
• Canadians Negative. You will have to divert your
  course 15 degrees to the south to avoid a
  collision.
•  
• Americans This is the Captain of a U.S. Navy
  ship. I say again, divert YOUR course.
•  
• Canadians No. I say again, you divert YOUR
  course.
•  
• Americans THIS IS THE AIRCRAFT CARRIER U.S.S.
  LINCOLN, THE SECOND- LARGEST SHIP IN THE UNITED
  STATES' ATLANTIC FLEET. WE ARE ACCOMPANIED BY
  THREE DESTROYERS, THREE CRUISERS AND NUMEROUS
  SUPPORT VESSELS. I DEMAND THAT YOU CHANGE YOUR
  COURSE 15 DEGREES NORTH. I SAY AGAIN, THAT'S ONE
  FIVE DEGREES NORTH, OR COUNTER-MEASURES WILL BE
  UNDERTAKEN TO ENSURE THE SAFETY OF THIS SHIP .
•  
• Canadians This is a lighthouse. Your call.

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Quadrant Chart - Overview
What Might Be Done
What Is Wrong
Step II. Analysis
Step III. Approaches
In Theory
In The Real World
Step I. Problem
Step IV. Action
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Conflict can

• Be constructive or destructive
• Be energizing or unnerving
• Produce higher quality results or stifle a
  project
• Lead to original thinking or cause destructive
  power struggles

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Conflict can be Constructive

• Taps creativity and problem solving
• Generates new solutions
• Increases involvement
• Improves communication
• Releases pent-up emotion
• Builds cohesiveness
• Helps individuals and teams grow

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Conflict can be Destructive

• Reduces productivity
• Destroys morale
• Spawns additional conflict
• Polarizes groups
• Produces regrettable behavior
• Diverts energy
• Deepens differences

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Negotiation Styles
high
Interest in achieving OUR goals
low
high
Interest in seeing the other achieve THEIR goals
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Avoiding
high

• Useful for
• Issues of low importance
• Reducing tensions
• Buying time
• Low power

Interest in achieving OUR goals
Ill think about it tomorrow
x
low
high
Interest in seeing the other achieve THEIR goals
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Competing
high
x
Interest in achieving OUR goals
My way or the highway

• Useful for
• Quick action
• Unpopular decisions
• Vital issues
• Protection

low
high
Interest in seeing the other achieve THEIR goals
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Accommodating
high

• Useful for
• Creating good will
• Keeping the peace
• Retreating
• Low importance

Interest in achieving OUR goals
It would be my pleasure
x
low
high
Interest in seeing the other achieve THEIR goals
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Compromising
high
Lets split the difference
Interest in achieving OUR goals
x

• Useful for
• Moderate importance
• Time constraints
• Temporary solutions
• Equal power strong commitment

low
high
Interest in seeing the other achieve THEIR goals
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Collaborating
high
x
Interest in achieving OUR goals
Two heads are better than one

• Useful for
• Integrating solutions
• Learning
• Merging perspectives
• Gaining commitment
• Improving relationships

low
high
Interest in seeing the other achieve THEIR goals
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Negotiation Styles
high
Competing
Collaborating
Interest in achieving OUR goals
Compromising
Avoiding
Accommodating
low
high
Interest in seeing the other achieve THEIR goals
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Positional Haggling
Offer/Position
Threat/BATNA
Final Offer
Last Offer
Last Final Offer
?
Last Final Offer
Last Offer
Final Offer
Threat/BATNA
Offer/Position
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A Framework for Success
COMMUNICATION
RELATIONSHIP
INTERESTS
OPTIONS
LEGITIMACY
If Yes
If No
COMMITMENT
ALTERNATIVE
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Interests

• Definition
• Needs, concerns, goals, desires and fears that
  motivate us to negotiate.
• Measure
• Satisfies both parties interests to make durable
  outcome
• Note
• Interests Are Different From Positions
• Positions are not the only way to meet our
  interests

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Options

• Definition
• Range of possibilities on which the parties might
  agree.
• Measure
• Maximizes creative potential
• Leaves no joint gains on the table
• Minimal waste
• Note
• Options are different from Alternatives
• Options are created On the table
• Separate option generation from option selection

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Alternatives BATNA

• Definition
• Things we can do, either by ourselves or with a
  third party, without the other sides agreement.
  Our BATNA is our Best Alternative To a
  Negotiated Agreement.
• Measure
• Any outcome should be better than our BATNA
• Note
• Alternatives are created Away from the table
• Develop or improve your BATNA

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Legitimacy

• Definition
• The perception of fairness by the parties as
  determined by outside standards or criteria.
• Measure
• Result perceived as fair no one feels taken.
• Note
• Sources of legitimacy include law, precedent,
  community standards, expert opinion, industry
  practices, and market prices.
• Be open to persuasion

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Communication

• Definition
• The medium through which we negotiate.
  Communication is the exchange of thoughts,
  messages, or information by speech, signals,
  writing, physical cues, or other actions.
• Measure
• Effective, Efficient and Authentic
• Message sent message received
• Speaker feels heard, and the listener feels
  involved
• Note
• Dont assume we understand or are understood

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Relationship

• Definition
• The quality of interaction between the
  negotiators.
• Measure
• The process we use today improves our ability to
  negotiate tomorrow.
• Note
• Treat every relationship as long term
• Having a good working relationship does not mean
  we always agree.

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Commitment

• Definition
• An agreement about what each party will or will
  not do.
• Measure
• Sufficient / Realistic / Operational
• Aligned with readiness of the parties
• Note
• Many possible degrees of commitment
• Drafts, joint recommendations, agreement in
  principle, binding contract.

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Proposed Definition of Success

• An optimal agreement is one that
• Is better than our Best Alternative To a
  Negotiated Agreement, our BATNA
• Meets both sides Interests
• Is the best of many Options
• Is Legitimate, supported by criteria that is
  objectively fair
• Improves, supports, or at least does not damage,
  the Relationship
• Is based on clear Communication
• Identifies Commitments that are operational

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CONCLUSION - An Unconditionally Constructive
Strategy for Leading Negotiations

• Balance inquiry and advocacy
• Question to understand
• Separate the people from the problem
• Encourage two-way communication
• Be reliable and expect reliability
• Use persuasion, not coercion
• Take the time to define the value of
  collaboration
• Work together to find a mutually beneficial
  solution

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Learning Cycle
CONSCIOUS INCOMPETENCE
CONSCIOUS COMPETENCE
UNCONSCIOUS INCOMPETENCE
UNCONSCIOUS COMPETENCE
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Negotiation Bibliography page 1 of 3

• Books by Roger Fisher
•  
• Roger Fisher and William L. Ury, Bruce Patton
  (Editor), Getting to YES, New York Penguin
  Books, 2nd Edition, 1991.
•  
• Roger Fisher and Scott Brown, Getting Together
  Building Relationships as We Negotiate, Boston
  Houghton Mifflin, 1988.
• Roger Fisher Alan Sharp, Getting It Done How to
  Lead When You're Not in Charge, New York Harper
  Collins, 1998.
• Roger Fisher and Danny Ertel, Getting Ready to
  Negotiate The Getting to Yes Workbook, New York
  Penguin Books, 1995.
•  
• Roger Fisher, Elizabeth Kopelman and Andrea
  Kupfer Schneider, Beyond Machiavelli Coping with
  Conflict, Cambridge Harvard University Press,
  1994.
•  
• Roger Fisher, Improved Compliance With
  International Law, William S. Hein Co., Inc.,
  January 1981.
•  
• Roger Fisher and William L. Ury, International
  Mediation A Working Guide - Ideas for the
  Practitioner, Cambridge Harvard Negotiation
  Project, 1978.

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Negotiation Bibliography page 2 of 3

• Lawrence S. Bacow and Michael Wheeler,
  Environmental Dispute Resolution, Cambridge
  Perseus Books, 1984.
• J. William Breslin and Jeffrey Z. Rubin,
  Negotiation Theory and Practice, Cambridge
  Program on Negotiation Books, 1995.
• Herb Cohen, You Can Negotiate Anything, New York
  Bantam Books, 1980.
• Lavina Hall, Negotiation Strategies for Mutual
  Gain, Newbury Park Sage Publications Inc.,
  1993.
• Deborah M. Kolb, Ph. d. And Judith Williams, Ph.
  d., The Shadow Negotiation, New York Simon
  Schuster, 2000.
• Arthur Lall, Modern International Negotiation,
  New York Columbia University Press, 1966.
• David A. Lax, and James K. Sebenius, The Manager
  as Negotiator Bargaining for Cooperation and
  Competitive Gain, New York Simon Schuster
  Trade, 1986.
• Roy J. Lewicki (Editor), David M. Saunders
  (Editor) and John W. Minton (Editor),
  Negotiation Readings, Cases, and Exercises, New
  York McGraw-Hill Companies, 1998.

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Negotiation Bibliography page 3 of 3

• Bruce Patton, Douglas Stone, Sheila Heen,
  Difficult Conversations How to Discuss What
  Matters Most, New York Viking, 1999.
• Howard Raiffa, John S. Hammond, Ralph L. Keeney,
  Smart Choices A Practical Guide to Making Better
  Decisions, Cambridge Harvard Business School
  Press, 1999.
• Jeffrey Z. Rubin and Dean G. Pruitt, Social
  Conflict Escalation, Stalemate and Settlement,
  New York McGraw-Hill Companies, 1993.
• Jeffrey Z. Rubin and Dean G. Pruitt, Sung Hee
  Kim, Social Conflict Escalation, Stalemate and
  Settlement, New York McGraw-Hill Companies,
  second edition 1994.
• Eric Rasmusen, Games and Information An
  Introduction to Game Theory, Blackwell
  Publishers, 1994.
• Thomas C. Schelling, The Strategy of Conflict,
  Cambridge Harvard University Press, 1990.
• G. Richard Shell, Bargaining for Advantage, New
  York Penguin Books, 1999.
• Timothy J. Sullivan, Resolving Development
  Disputes through Negotiations, Cambridge Perseus
  Books, 1984.
• William L. Ury, Getting Past No Negotiating Your
  Way from Confrontation to Cooperation, New York
  Bantam Books, 1993.
• I. William Zartman and Maureen Burman, The
  Practical Negotiator, New Haven Yale University
  Press, 1983.

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About Mediation Works Incorporated

• MEDIATION WORKS INCORPORATED www.mwi.org
• Mission Statement Mediation Works
  Incorporated is dedicated to providing innovative
  dispute resolution services and training to
  clients seeking to resolve difficult disputes.
• Training Programs and Workshops
• Negotiation Skills Workshops
• Mediation Training
• Dispute Resolution Seminars
• Dispute Resolution Services
• Business and Workplace Mediation Services
• Divorce and Family Mediation Services
• Organizational Ombuds Services
• Facilitation Services
• Please call 800-348-4888 or visit ltwww.mwi.orggt
  for more information and a free quote.

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MWI Negotiation Skills Workshops page 1 of 4

• Mediation Works Incorporated offers Customized
  On-site Negotiation Skills Workshops for groups
  within a particular organization.  Customized
  On-site Negotiation Skills Workshops enable
  organizations to
• Provide individuals and groups across the
  organization with a shared vocabulary and common
  set of skills and tools to help them negotiate
  more effectively
• Address organization-specific negotiation
  challenges by using customized role-plays and
  cases based on participants real-world
  scenarios
• Focus on particular areas of negotiation
  effectiveness such as
• dealing with difficult people and tactics
• building long-term, strategic relationships
• communicating effectively
• influencing and persuading others
• managing differences in perceptions
• managing roles in multi-party negotiations
• Maximize resources by offering local workshops
  for groups of employees rather than sending them
  individually to public workshops
• Decide on a convenient time and location for the
  workshops which complements the schedule of the
  employees/organization
• In addition, MWIs Negotiation Skills Workshops
  build each participants capacity to transform
  adversarial approaches to negotiation into
  problem-solving collaborations, producing better
  outcomes for all parties while enhancing
  long-term working relationships.  Each training
  workshop is designed to
• Stimulate participants awareness of the
  complexities of negotiation
• Equip participants with a framework for
  understanding, diagnosing and leading the
  negotiation process
• Enhance participants skills through hands-on
  experience and feedback
• Provide participants with a process for continued
  improvement and learning

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Conceptual Foundation of MWIs Negotiation Skills
WorkshopsMWI's Negotiation Skills Workshops
build on the ideas and frameworks developed by
Professor Roger Fisher and his colleagues at the
Harvard Negotiation Project at Harvard Law
School.  Based on the best-selling book Getting
to Yes, the training workshops feature the key
elements of Fisher's model, widely known in the
field as integrative bargaining or principled
negotiation.  Representing a landmark shift in
how negotiation is understood and conducted,
Fisher's ideas have been implemented throughout
the world in all sectors of society, from
community-based disputes to intra-organizational
conflict to public policy debates.  For years,
experienced practitioners have reported that
training in principled negotiation has increased
their confidence and competence. WORKSHOP
METHODOLOGYFollowing the teaching model of the
Harvard Negotiation Project, MWI uses a hands-on,
interactive, skill-centered method of teaching
negotiation.  Each day of the workshop, core
concepts and frameworks are presented in an
interactive style to the participants.  Building
on the interactive presentations, each day
centers on case simulations in which participants
actually negotiate and apply the theory they are
learning.  Case simulations are drawn from the
teaching materials developed and used by the
Program on Negotiation at Harvard Law School. 
After completing each case, instructors lead
participants through a systematic analysis of the
negotiation.  During the analysis portion,
emphasis is placed on bringing out the experience
and expertise of the group and organizing their
ideas into a useful set of guidelines for
negotiating in the future.Portions of the
training workshop will be spent learning a new
systematic framework for preparing for,
conducting and reviewing negotiations
participating in exercises designed to enhance
and highlight particular skills watching
demonstrations of new techniques and debriefing
exercises in small group discussions.
MWI Negotiation Skills Workshops page 2 of 4

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PREPARATION FOR THE WORKSHOP DIAGNOSTIC PHASEIn
order to provide the most relevant training
possible for participants in a given
organization, MWI conducts diagnostic
interviews by phone and/or in person prior to the
Negotiation Skills Workshop with a cross-section
of employees who will be participating in the
workshop.  The goal of conducting the diagnostic
interviews is for MWI to gain a better
understanding of the internal and external
negotiation challenges the workshop participants
are facing and gain a broader understanding of
the structure, business and purpose of the
organization in order toEffectively address
organization specific negotiation challenges in
the workshop and create organization specific
case studies and role-plays for the participants
in the workshop. All information provided to MWI
will be held in strict confidence.STRUCTURE OF
CUSTOMIZED ON-SITE NEGOTIATION SKILLS
WORKSHOPSTypical on-site programs vary from one
to five days in length. The shorter programs
(one-day workshops) provide participants with a
basic awareness of their current assumptions
about negotiation and a conceptual understanding
of the Seven Elements of Negotiation
framework.   The longer programs (three- to
five-day workshops) enable participants to
improve skills by preparing, conducting and
reviewing multiple simulated cases, in addition
to learning the theory of negotiation
effectiveness.  Shorter programs focus largely on
simple frameworks for preparing for and
conducting transactional negotiations.  Longer
programs expand to include a range of modules
depending on client needs, including but not
limited to dealing with difficult people and
tactics communicating effectively influencing
and persuading others managing differences in
perceptions and managing roles in multi-party
negotiations.PRAISE FOR MWI'S NEGOTIATION
SKILLS WORKSHOPSThe trainers were very
involved.  They were very interested in our
particular situation here at our company.I
have learned a vast wealth of knowledge on, and a
practical appreciation for, the art and theory of
negotiation in all of its capacities.The
trainers were excellent they were very well
organized and worked well as a team.  I attend a
lot of presentations and this is one of the
best.The cases were very interesting and
realistic and made us want to learn the
techniques needed.The teaching staff was
superb very good at demonstrating ideas and
leading us in developing them for ourselves. I
found it valuable to get to the underlying
interests behind positions, as this can bring up
options that are mutually beneficial but not
inherently obvious.
MWI Negotiation Skills Workshops page 3 of 4
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MWI Negotiation Skills Workshops page 4 of 4
For more information about MWIs Negotiation
Skills Workshops, including a detailed proposal,
please contact me at 800-348-4888 x22 or
ltchuckdoran_at_mwi.orggt with questions. Thank
you.   Sincerely,   Charles Doran Executive
Director   Mediation Works Incorporated 9 Park
Street - Sixth Floor Boston, MA
02108-4807   Phone [phone] x22 /
800-348-4888 Fax [phone] E-mail
chuckdoran_at_mwi.org Web http//www.mwi.org/