Workshop Mutual Gains Approach

Marjolein Stamsnijder, Nirov

27 oktober 2010

Succesfull negotiation

1. Good outcome -- for all parties• interests met• Seen as fair

2. Efficiently reached• time not wasted• nothing left on table

3. Amicably ended• relationship enhanced• future dealings easier

Conventional wisdom on negotiaton

• Bid high• Trade concessions for

concessions-grudgingly• Do not reveal anything – ‘pokerface’• Show no empathy - undermine the

legitimacy of their claims• Dirty tricks - undermine them

psychologically

Erodes trust:• You make yourself a liar from the beginning;

what you say you need isn’t what you actually need

Undermines accuracy of information (on both sides):

• Hoard information instead of sharing it• Attempt to devalue and undermine the other

side’s information

Problems with this appraoch

Assumptions behind the conventional wisdomWin/Lose - Zero-sum situation:

Their gain is my loss

The size of the pie is fixed

Negotiation is a test of will -

this model applies (maybe) to:

Strangers

People you hope never to see again

BATNAFive key principles

Know your BATNA (Best Alternative to a Negotiated Agreement)

Focus on Interests, not Positions

Invent Options for Mutual Gains

Use Objective Criteria

Build Relationships Along with Agreements

What’s a BATNA?

• BATNA: Best Alternative to a Negotiated Agreement• Best alternative action you are able to pursue away from

the table• When you know your BATNA, you know the minimum

you should accept at the table

Use Your BATNA

• Analyze your BATNA• Improve your BATNA• Don’t blab your BATNA• Analyze their BATNA• Help them reality-check their BATNA

Focus on Interests,Not PositionsPosition = What you want

Interest = Why you want it

• In preparation, analyze your interests, and theirs• At the table, explain your interests• Ask questions & listen to discover their interests

How to Explore Interests?

Ask and be ready to answer:• “What are the key things you need from an

agreement?”• “Why is that important to you?”• “Is it really something else that concerns you?”• “Would we be moving in the right direction if...?”

Invent Options ForMutual Gains

Conventional Wisdom:– Trade positions, not information– Assume you’re only dividing the pie

Mutual Gains Approach:– Explore interests on both sides– Suspend criticism– Invent without committing– Generate options and packages that “make

the pie larger”– Use a neutral party to exchange ideas

Use Objective Criteria

Problem: How to choose among options?Risk: Revert to positional bargainingStrategy: Find mutually acceptable criteria or

procedures:• Cost effectiveness• Reciprocity• Equal treatment• Implement ability• Market value• Precedent• Risk• Advice of respected or expert third party

Getting to Criteria

• Ask Questions:• How did you arrive at that?

• What is the theory behind this?

• What makes that fair?

• How are others (people, organizations) handling this problem?

• Maintain creative mode

• Behave to build trust

Build Relationships Along with Agreement

• Be trustworthy: say what you mean and mean what you say

•Recognize legitimacy of their interests• Balance empathy and assertiveness• Address difficult behavior, don’t escalate it•Recognize that to “separate the people

from the problem” you may have to deal with: history, perceptions, emotions, communication

• Knowing your BATNA is your protection

Exercise:

Getting to know each others interestsinstead of positions

Groups of three people1. ask for interest2. give answers

3. observe

Switch after 10 minutes

-What did you see and hear?-How was it to do this?-Dit you get to intrests?

Evaluation

• Thank you for your attention