Negotiating for WinWin

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Negotiating for Win-Win

Interest-Based Negotiation
CASFAA Conference, 2008 Anaheim, CA Presented by
Natasha Kobrinsky Pepperdine University Graziadio
School of Business and Management
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• Do You Negotiate?!

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Session Objectives

• Recognize your negotiation skills
• Understand the negotiation process
• Enhance your negotiation skills by using the
  interest-based approach and mediation techniques

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What is Negotiation?

• Its a power imbalance
• Its a discussion intended to produce an
  agreement
• Its a process to resolve disputes
• Its a process of learning and discovery
• Its a process of bargaining for individual or
  organizational advantages

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Approaches to Negotiation

• Positions are tangible items people say they want
  
• Interests are the things one cares about and
  wants

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Approaches to negotiation

• Negotiations could be right-based
• Power-based
• Interests-based

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Negotiation Outcomes

• Win-Lose
• Lose-Lose
• Win-Win

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Criteria to compare negotiation outcomes

• Transaction cost
• Satisfaction with outcomes
• Effect on the relationship
• Recurrence of disputes

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Interest-Based Negotiation vs. Distributive
Negotiation

• Creating a free flow of information
• Attempting to understand the Other Partys real
  needs and Objectives
• Searching for Solutions that meet the goals and
  objectives of both sides
• Crafting an outcome for mutual interests

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Identify and define the real issues/problems

• Understand what drives the negotiation and
• What drives the negotiator
• Define the issues in a mutually acceptable way
  

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Determine your and your opponents real interests

• Substantive interests- economic and financial
  issues
• Process interests
• Relationship interests
• Interests in principle

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Establish your goal

• Best outcome
• Good enough outcome
• Tolerable outcome
• Get ready to compromise

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Plan Prepare

• Determine your walk-away point (resistance point)
  
• Determine your BATNA and WATNA (best and worst
  alternatives to negotiations )

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Plan Prepare

• Learn about your opponents
• Their personality
• Their background, culture
• Their personal situation
• Look for precedents

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Plan Prepare

• Determine your and your opponents strengths
• Consider your and your opponents weaknesses
• Identify the risk factor and try to remove it
• Identify the barriers and try to remove them
• Consider the impact of deadlines

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Plan Prepare

• Develop alternative solutions
• Generate as many options packages as possible
  to make the pie larger

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Depersonalize the problem

• Separate the problem definition from the search
  for solution
• Build trust
• Do not use threats
• Remove emotional barriers for the opponents
• Show respect (Lack of respect triggers the
  majority of legal actions)

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Propose

• Try not to go first with an offer
• Give a reasonable offer
• Be prepared to change it

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Propose Probe

• What if
• Why not
• What would you suggest

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Ask Questions

• Use open-ended questions to get more information
• Use close-ended questions to force the other
  party into seeing things your way
• The less you say, the more you hear

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Influence the other partys resistance point but

• Be ready to change your position
• Concession-making indicates an acknowledgement of
  other party and a movement toward the others
  position.
• Flexibility keeps your negotiation going

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Listen

• Use active listening techniques restate,
  paraphrase other partys statements
• Take notes
• Discover the other partys outcome values,
  resistance point, motives and etc.
• The opponents answers are the best guides

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Make Counterproposal

• Try to increase the real or potential rewards of
  a transaction for opponents
• Align organizational personal incentives
• Motivation incentives will increase a chances
  of making a deal

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Trade

• Exchange terms or items
• Trade something you value less for something you
  value more

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Factors that facilitate successful interest-based
negotiation

• Some common objective or goal
• Faith in ones problem-solving ability
• Belief in the validity of ones own position and
  the others perspective
• Motivation
• Commitment to work together
• Trust
• Clear and accurate communication

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Achieving closure

• Its important to know when to shut up and
  reduce the agreement to written form.

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Key steps for interest-based negotiation

• Identify and define the real issues
• Define the problem in a mutually acceptable way
  for both sides
• Depersonalize the problem
• Set mutual goals
• Separate a search for mutually beneficial
  solutions from problem definition

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Key steps for interest-based negotiation

• Establish trust and positive feeling that are
  likely to lead to an integrative outcome
• Advantages of moving beyond positions to real
  interests
• Learn to expend the pie by looking for
  alternative solutions
• Bargain for individual advantages
• Craft outcomes for mutual interests
• The best way to get what you want is to give the
  opponents what they want

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• People say YES to people they like!