بسم الله الرحمن الرحيم Café a la Fikr

Negotiation

بسم الله الرحمن الرحيمCafé a la Fikr

NegotiationMuhamad Aly Rifai, MD, CPE, FACP, FAPM, FAPAMuhamad Aly Rifai, MD, CPE, FACP, FAPM, FAPA

ChairmanChairman , Department of Psychiatry, Department of Psychiatry

Blue Mountain Health SystemBlue Mountain Health System

Professor of ClinicalProfessor of Clinical Psychiatry and MedicinePsychiatry and Medicine

The Commonwealth Medical College The Commonwealth Medical College

Negotiation is a process by which parties move from divergent positions to a point

where agreement can be reached.

Negotiation is both reason and emotion

Negotiation is a process by which parties move from divergent positions to a point

where agreement can be reached.

Negotiation is both reason and emotion

Negotiation is not . . . Negotiation is not . . .

WarWar or Competitionor Competition

We negotiate every day . . . at home.

Negotiation means dialogue.

We negotiate every day . . . at home.

Negotiation means dialogue.

Negotiation Negotiation

Everyday we are expected to make decisions that may have lasting effects:

Do I negotiate with the customer that is obnoxious, demanding and unreasonable?

Do I end a business relationship when the other party injures me financially?

Do I negotiate with my life partner who has betrayed me about how much time I get to spend with our child ?

Everyday we are expected to make decisions that may have lasting effects:

Do I negotiate with the customer that is obnoxious, demanding and unreasonable?

Do I end a business relationship when the other party injures me financially?

Do I negotiate with my life partner who has betrayed me about how much time I get to spend with our child ?

We negotiate every day . . . at work. Negotiation means justifying and persuading the other person

We negotiate every day . . . at work. Negotiation means justifying and persuading the other person

We negotiate every day for many things.

Negotiation means bargaining

We negotiate every day for many things.

Negotiation means bargaining

Negotiation FrameworkNegotiation Framework

Alternatives to negotiated agreement Are contracts binding Is there linkage Costs or benefits to delay Uncertainty Third party intervention Principals or agents Are the parties monolithic

Alternatives to negotiated agreement Are contracts binding Is there linkage Costs or benefits to delay Uncertainty Third party intervention Principals or agents Are the parties monolithic

Negotiation FrameworkNegotiation Framework

Are negotiations private or public

Precedent/history Context People

Are negotiations private or public

Precedent/history Context People

Parties: number of sides Issues: factors to be

resolved Options: possibilities for

each issue Position: stated options Interests: underlying

objectives

Parties: number of sides Issues: factors to be

resolved Options: possibilities for

each issue Position: stated options Interests: underlying

objectives

Negotiation; definitionsNegotiation; definitions

Parties: number of sides Issues: factors to be resolved Options: possibilities for each issue Position: stated options Interests: underlying objectives

Parties: number of sides Issues: factors to be resolved Options: possibilities for each issue Position: stated options Interests: underlying objectives

Negotiation parametersNegotiation parameters

BATNA: Best Alternative to Negotiated Agreement Reservation value: maximum amount willing to pay (buyer), minimum amount willing to accept (seller) Contract zone: difference between buyer’s and seller’s RVs Aspiration value: goal or target

BATNA: Best Alternative to Negotiated Agreement Reservation value: maximum amount willing to pay (buyer), minimum amount willing to accept (seller) Contract zone: difference between buyer’s and seller’s RVs Aspiration value: goal or target

Strategy; Distributive BargainingStrategy; Distributive Bargaining

Preparation Negotiation

framework Negotiation

parameters (yours and theirs)

Identify sources of bargaining power

Preparation Negotiation

framework Negotiation

parameters (yours and theirs)

Identify sources of bargaining power

Focus on your target, not on RV

Influence the perceptions of the other side

Anchoring

Focus on your target, not on RV

Influence the perceptions of the other side

Anchoring

Strategy; Distributive BargainingStrategy; Distributive Bargaining

Offers Who should make

the first offer? What should your

first offer be? Counteroffers Concessions

Offers Who should make

the first offer? What should your

first offer be? Counteroffers Concessions

What information should I keep and what information should I share ?

What information should I keep and what information should I share ?

Strategy; Integrative BargainingStrategy; Integrative Bargaining

Integrative, or “win/win” negotiation can exist when there is more than one issue and

Negotiators differs from one another

Integrative, or “win/win” negotiation can exist when there is more than one issue and

Negotiators differs from one another

Differences in preferences

Differences in beliefs about the future

Differences in preferences

Differences in beliefs about the future

Obstacles to Finding a Win/Win AgreementObstacles to Finding a Win/Win Agreement

Assumption of a fixed-pie Pre-mature judgment Ignoring the interests of the other side Resolving each issue independently

Assumption of a fixed-pie Pre-mature judgment Ignoring the interests of the other side Resolving each issue independently

Strategy: integrative bargainingStrategy: integrative bargaining

Negotiate over interests not positions For every interest, there may be several

positions that satisfy it Behind opposed positions lie shared and compatible interests as well as conflicting

ones Negotiating over positions commits you to a particular position, not a particular interest

Negotiate over interests not positions For every interest, there may be several

positions that satisfy it Behind opposed positions lie shared and compatible interests as well as conflicting

ones Negotiating over positions commits you to a particular position, not a particular interest

Strategy: integrative bargainingStrategy: integrative bargaining

Separate the process of thinking up possible solutions from the process of deciding among them

Conduct a brainstorming session Broaden the options on the table rather than look for a single answer Generate a variety of possibilities before deciding what to do

Separate the process of thinking up possible solutions from the process of deciding among them

Conduct a brainstorming session Broaden the options on the table rather than look for a single answer Generate a variety of possibilities before deciding what to do

Build trust and share information

Ask questions Be creative Separate the people

from the problem

Build trust and share information

Ask questions Be creative Separate the people

from the problem

Logrolling Cost-cutting Bridging Negotiate over

package, not issue-by-issue

Initial agreements and Post-Settlement

Mediation

Logrolling Cost-cutting Bridging Negotiate over

package, not issue-by-issue

Initial agreements and Post-Settlement

Mediation

Strategy: integrative bargainingStrategy: integrative bargaining

The Negotiator’s DilemmaThe Negotiator’s Dilemma

Tension between competitive and cooperative tactics

How do you know what balance will be

most successful?

Tension between competitive and cooperative tactics

How do you know what balance will be

most successful?

The Nitty Gritty DetailsThe Nitty Gritty Details

In person? On the phone? Email?When is the best time to negotiate?LocationBluffingPace

In person? On the phone? Email?When is the best time to negotiate?LocationBluffingPace

Closing the DealClosing the Deal

How does the agreement meet their interests?

How can precedents be used to justify the deal?

What are their intangible motivations?Who might be blocking a deal?How can they save face?

How does the agreement meet their interests?

How can precedents be used to justify the deal?

What are their intangible motivations?Who might be blocking a deal?How can they save face?

Rifai ‘ top tenRifai ‘ top ten

1. Recognize opportunities to negotiate

2. Preparation

3. Match tactics to situation

4. Understand the other side’s perspective

5. Keep your target in mind during negotiation

6. Be strategic about what information to share

7. Look for win/win opportunities

8. Role play

9. Get yourself psyched up

10. Go to the “Negotiation Gym”

1. Recognize opportunities to negotiate

2. Preparation

3. Match tactics to situation

4. Understand the other side’s perspective

5. Keep your target in mind during negotiation

6. Be strategic about what information to share

7. Look for win/win opportunities

8. Role play

9. Get yourself psyched up

10. Go to the “Negotiation Gym”

EmotionsEmotions

Impact of positive emotions

encourage creativity enhance problem

solving can lead to better

agreements for both sides

Impact of positive emotions

encourage creativity enhance problem

solving can lead to better

agreements for both sides

help to preserve or enhance relationship

are contagious

help to preserve or enhance relationship

are contagious

Impact of negative emotionsImpact of negative emotions

Lose focus on objectives Limits ability to listen Refuse concessions Harms your reputation Inhibit creativity Damage relationship Are contagious

Lose focus on objectives Limits ability to listen Refuse concessions Harms your reputation Inhibit creativity Damage relationship Are contagious

Role Playing 101: Anticipate SurprisesRole Playing 101: Anticipate Surprises Write down your plan Identify flash points Decide what to say Get help Brief your partner Rehearse several times Debrief Repeat

Write down your plan Identify flash points Decide what to say Get help Brief your partner Rehearse several times Debrief Repeat

Recommended ReadingRecommended Reading

Negotiation Genius (Malhotra and Bazerman) Getting to Yes (Fisher, Ury, and Patton) Getting Past No (Ury) Bargaining for Advantage (Shell) The Art and Science of Negotiation (Raiffa) Women Don’t Ask (Babcock and Laschever) Ask for It (Babcock and Laschever)

Negotiation Genius (Malhotra and Bazerman) Getting to Yes (Fisher, Ury, and Patton) Getting Past No (Ury) Bargaining for Advantage (Shell) The Art and Science of Negotiation (Raiffa) Women Don’t Ask (Babcock and Laschever) Ask for It (Babcock and Laschever)