TacticsTacticsfor for

Creating valueCreating value

O nlyO nly

P roposalsP roposals

T hatT hat

I ncludeI nclude

O ther’s O ther’s

N eedsN eeds

S ucceedS ucceed

Opportunities to create Opportunities to create valuevalue

•Multiple issuesMultiple issues

•Differing strengths of preferenceDiffering strengths of preference

•Differing interestsDiffering interests

•Future relationshipFuture relationship

•Multiple alternativesMultiple alternatives

Differences in valuation can Differences in valuation can create valuecreate value

DealPositio

nEmployer Applicant Total

Office

NY 30 5

SF 20 25

Start2

mo.’s10 40

1 week

35 30

First Deal

NY 2

mo.’s

(30+10=) 40

(5+40=) 45

(40+45=) 85

After Trad

e

SF 1

week

(20+35=) 55

(25+35=) 55

(55+55=) 110

Gain +15 +10(15+10=)

25

Distinguish:Distinguish:

InterestsInterests (motivate) (motivate) IssuesIssues (motivate) (motivate) PositionsPositions

Anatomy of a ConflictPerceived DifferencesScarce ResourcesInaccurate InformationUnfulfilled NeedsPower Struggles

SUCCESS

POSITIONS:What each party says they want – their preconceived solution

ARGUMENTS:Why they think they should get it

INTERESTS:Underlying needs, hopes & concerns that must be satisfied to achieve a resolution.

© 1992 – 2012 ICM, Inc./Sam Imperati/Portland, OR

DifferencesDifferencesCreate Private ValueCreate Private Value

•ValuationValuation

•Risk AversionRisk Aversion

•CapabilityCapability

•Time Time PreferencesPreferences

•ForecastsForecasts

• TradeTrade

• InsuranceInsurance

• CombinationCombination

• Sequence Sequence PerformancePerformance

• Contingency Contingency ContractsContracts

TacticsTactics

Research and exploit differences Research and exploit differences

Ask open ended questions versus persuadeAsk open ended questions versus persuade

Make proposals that satisfy your interests Make proposals that satisfy your interests by satisfying the other side’s interestsby satisfying the other side’s interests

Make package proposals and ask questionsMake package proposals and ask questions

Propose post-settlement settlementPropose post-settlement settlement

The goal of A Negotiation…The goal of A Negotiation…

……is not to reach an is not to reach an agreement.agreement.

It’s to reach a It’s to reach a goodgood

agreement.agreement.