Problem Solving Negotiation

David Landis

Director, Urban Development

Lincoln, NE

Definition

A negotiation is a trade

-”I’ll do Y, if you’ll do X.”

Auction Rules

• Real money is exchanged

• No bid more than 10 cents

• Bids divisible by 5

• No talking but bidding

• High bid pays and gets item, second high bid pays and does not get item.

Two Strategy Options

• Seeking Advantage

• Seeking Joint Gain

Advantage Seeking

• Good short term results

• Hard to exploit

• Relatively easy to do

Advantage Seeking

• Hard on relationships

• Misses joint gain

• Breeds reciprocity

Joint Gain Seeking

• Expands the pie

• Benefits grow over time

• Builds relationships

Joint Gain Seeking

• Risks exploitation

• Takes more time and preparation

• Requires skill to be effective

Trust:

• A two-sided coin: trusting, being trusted

• A shared problem

• Some assume trustworthiness

• Some assume untrustworthiness

Being Trustworthy

• Say what you mean, mean what you say

• Does not require full disclosure

• Worth its weight in gold

Trusting

• Operate independent of trust

• Reciprocal consequences

Role #5 - Observer

• Don’t give away information or reactions – just watch.

• Watch for exaggerations, threats, offers and counter-offers.

• Notice questions particularly.

Role #1

Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”

Role #2

Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”

Role #3

Your mother says, “Go to the store and bring me an orange. Family is coming over tomorrow, I’m going to peel the orange and cut up the pulp for a fruit salad. Bring me an orange or you’ll be in trouble.”

Role #4

Your mother says, “Go to the store, bring me an orange. Family is coming over tomorrow. I’m going to peel the orange and grate the peel to flavor some orange bread I’m making. Bring me an orange or you’re in trouble.”

5 into 2

• No division of items

• No side deals

• Must divide all five between you

• Divide in 2 minutes or get nothing

• Item:

-5 crisp $ 1,000 bills

5 into 2

• 2 tickets, great concert

• Designer jacket

• Glider flight over Grand Canyon

• Elegant, fine French meal for 2

• Martha Stewart cooks and cleans

• All the same rules

• Items:

Worker’s Comp Deal

Business Labor

Dr. Choice

Managed Care

Indexed Benefits

Safety Comm./ Inspectors

Worker’s Comp Deal

Business Labor

Dr. Choice Yes

Managed Care Yes

Indexed Benefits No

Safety Comm./ Inspectors

No

Worker’s Comp Deal

Business Labor

Dr. Choice Yes No

Managed Care Yes No

Indexed Benefits No Yes

Safety Comm./ Inspectors

No Yes

Worker’s Comp Deal

Business Labor

Dr. Choice Yes 1 No

Managed Care Yes 2 No

Indexed Benefits No 3 Yes

Safety Comm./ Inspectors

No 4 Yes

Worker’s Comp Deal

Business Labor

Dr. Choice Yes 1 No 3

Managed Care Yes 2 No 4

Indexed Benefits No 3 Yes 1

Safety Comm./ Inspectors

No 4 Yes 2

Tools for Mutual Gain

• Interests before positions

• Priorities traded across differences

• Fair process norms

• Objective criteria

• Trust through authentic communication

Use Objective Criteria

• Learn marketplace

• Frame dispute as a joint search for fair standards

• Adjust standards for unique circumstances

• Open with an offer you can justify

Focus on Interests, Not Positions

• Interests=underlying motivations

– The answer to “why?”

• Positions=“yes or no” options

– The answer to “how much?”

• Focusing on interests induces problem solving because they are flexible and create satisfaction.

Invent Options for Mutual Gain

• Brainstorm method of advancing parties’ interests

• Invent first, then decide

• Link differences, priorities

• Maximize shared interests

Separate People from the Problem

Be unconditionally cooperative on process

– Good listening

– Fair characterizations

– Symbolic gestures

Separate Problem from the People

Be firm on fair outcomes

– Trade cooperation

– Reason, be open to reason

– Results need a fair, reasonable basis

Problem Solving Negotiation

“Good luck and good negotiating,

Dave Landis

dlandis2@unl.edu