Interest Based Negotiation

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Interest Based Negotiation

• Principled Negotiation for Moving Forward

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Overview

• Why interest-based negotiation (IBN)?
• Five principles of IBN
• Separate the people and the problem
• Focus on interests
• Create options for mutual gain
• Know your alternatives (BATNA)
• Determine objective criteria
• Applying IBN

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Why is this Important?

• Conflict is everywhere
• Increasing knowledge and skills in negotiation
  can save time and money
• Teams who work well together are more productive

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Conflict

• Happens in the interaction of interdependent
  people
• Who perceive incompatible goals
• And experience interference from the other in
  reaching those goals

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Conflict is like chaos

• It is complex there are many parts and they way
  they evolve and impact each other is
  unpredictable
• Conflict is dynamic change is the only constant
• People can feel out of control in conflict

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Understanding Conflict

• There is an order to conflict the way that we
  identify it and respond to it
• As we understand conflict better, we begin to see
  patterns emerge
• The more we understand individuals in conflict,
  the better we are able to respond thoughtfully

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Understanding People in Conflict

• Thomas-Killman Conflict Mode Instrument
• Compete
• Accommodate
• Avoid
• Compromise
• Collaborate

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Compete
Collaborate
Compromise
Accommodate
Avoid
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Interest-Based Negotiation

• A more effective and more lasting way to resolve
  conflict

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Separating People and Problem

• Negotiators have the ability to separate the
  substantive problem and their relationship with
  others
• People problems get entangled by
• Perceptions
• Assumptions
• Emotions
• Communication

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Perceptions and Assumptions

• Place yourself in their shoes
• Do not interpret their motives by your fears
• Discuss the perceptions

I
You
It
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Emotions

• Recognize they exist and they contribute to
  conflict
• Acknowledge them and allow for time to express
  listening to emotion gives you clues about what
  is important to others
• Do not react to them

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Communication

• Listen to understand
• Frame your message
• Consider delivery mechanism

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Positions

• Positions are what you want
• They are your pre-determined goals
• They are often based on power and/or rights
• The goal in a positional negotiation is to
  persuade
• They are win-lose

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Interests

• If positions are what you want, interests are
  why do you want them?
• They are your hopes, fears, concerns and
  priorities
• There are three types
• Substantive
• Procedural
• Psychological

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Focus on Interests

• Positions
• Solutions to problems
• Specific definite
• Basis for argument
• Require justification
• End discussion

• Interests
• Why a particular solution is preferred
• Reasons underlying positions
• Require explanation not justification
• Start discussion

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Why Focus on Interests?

• Interests define the problem
• Interests allow for a variety of possible
  solutions
• Interests allow for a solution that may not
  involve compromise
• Interests help us evaluate a possible solution
• Focusing on interests provides increased
  understanding between people in conflict

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Position
Position
Interests
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Interests Lead to Options

• Examining and evaluating the interests highlights
  areas of mutual gain
• How do participants prioritize their interests?
• How do they fit together?

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Options for Mutual Gain

• There is always more than one option
• Think outside the box
• Expand the pie

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Options for Mutual Gain

• Brainstorm possible solutions together
• Consider options for joint benefit
• Create what neither of you could do on your own
• Look for possible trade-offs that can turn
  potential into reality

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Overcoming Barriers to Developing Mutual Options

• Premature judgment
• Searching for the SINGLE answer
• Assuming a fixed pie
• Solving their problem is THEIR problem

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Best Alternative to Negotiated Agreement

• What will you do if you are unable to reach
  agreement in the negotiation?
• These alternatives are outside the negotiation
  and are typically implemented without the buy in
  of the other.

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Identify and Use your BATNA

• Know your BATNA
• Focus on what you want to achieve and the
  different ways to accomplish this
• Strengthen your BATNA
• Construct your BATNA to be more achievable,
  probable, or satisfying more of your interests
• Improves your confidence during the negotiation
• Consider other sides BATNA
• Make their BATNA less attractive to them

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Options and BATNA

• Note the difference

• Options
• Inside the negotiation
• Created with counterpart
• Brainstorming session
• Potential solution(s)
• BOTH you and counterpart receive benefit

• BATNA
• Outside the negotiation
• Fall back position if negotiation fails
• Can be implemented unilaterally

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Objective Criteria

• Others in the industry do. (What is customary)
• The last time this happened we. (Precedent)
• The standard contract says (Law)
• If you were me would you.? (Reciprocity)

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The Process of Negotiation

• Set the Stage
• Gather Information explore interests
• Frame and prioritize issues
• Generate and Evaluate Options
• Finalize Agreement

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Prepare to Negotiate

• Know your interests and anticipate those of
  others
• Assess your relationships and its impact on the
  negotiation.
• Think about (without settling on) possible
  options for mutual gain
• Determine your BATNA
• Understand your standards of fairness and
  anticipate others

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Culturally Competent Dispute Resolution

• Cultural Considerations in Negotiation

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Cross Cultural Training in the Past

• Cookbook approach
• Recipes perpetuate stereotypes
• Continues narrow definition of culture as ethnic
• Focus is on those people
• Understanding and skills remain underdeveloped
  and can be counterproductive

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Evolution of Negotiation

• Has been historically culture neutral
• Developed from the perspective of one culture
  without accounting for differences or ambiguity

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Definition of Culture

• Way of life that includes values, beliefs and
  behaviors
• Passed down from one generation to another
• It is learned

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The Iceberg Theory of Culture
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Dimensions of Culture

• Core Dimensions aspects that are the most
  personal and virtually unchangeable (ethnicity,
  gender)
• Internal Dimensions Aspects that apply through
  our development (language, family constellation)
• Peripheral Dimensions Aspects that apply
  through choice (education, marital status)
• External Factors Aspects from our environments
  (community, politics)

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Generalizations and Stereotypes

• Generalization
• Never applies to everyone in every situation
• Only a first guess
• Discard when no longer useful

• Stereotype
• Applies to everyone in every situation
• No exceptions
• Retained even when no longer accurate or useful

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Primary and Secondary Cultures

• Primary culture is your individual culture
• Secondary is one within which you live/work
• Each organization has a set of assumptions,
  practices, beliefs, and values.
• We bring our primary cultures into the secondary
  culture
• A health organizational culture will allow for
  members to manage primary cultural differences

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Culture and Conflict

• Culture affects negotiations
• The way we identify a conflict
• The way we respond to conflict
• The outcome we desire in negotiation

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Cultural Continuums

• To Do
• Earned status
• Achievement
• Individual Action
• Equality
• Immediate Family
• Self Reliance
• Independence
• Competition
• Guilt
• Future
• Class Mobility

• To Be
• Ascribed Status
• Affiliations
• Stability
• Inequality
• Extended Family
• Rely on others
• Interdependence
• Cooperation
• Shame
• Past/Heritage

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Cultural Considerations in Negotiation

• Direct and in-direct communication and conflict
  resolution
• Saving face and solving the problem
• Linear and circular thinking and communicating

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What can you do?

• Know yourself in conflict
• Work to understand individuals as unique cultural
  beings
• Make an effort to understand the interests of
  others
• Remember that negotiation is a constant process
  of introspection and change

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Thank You

• Elizabeth Z. Waetzig, JD
• Change Matrix, LLC
• 485 Maylin St.
• Pasadena, CA 91105
• 626-696-3227
• ewaetzig_at_changematrix.org