04/22/23

Interest Based Negotiation

Principled Negotiation for Moving Forward

2

OverviewWhy interest-based negotiation (IBN)?Five principles of IBN

Separate the people and the problemFocus on interestsCreate options for mutual gainKnow your alternatives (BATNA)Determine objective criteria

Applying IBN

3

Why is this Important?Conflict is everywhereIncreasing knowledge and skills in

negotiation can save time and moneyTeams who work well together are more

productive

4

ConflictHappens in the interaction of

interdependent peopleWho perceive incompatible goalsAnd experience interference from the

other in reaching those goals

5

Conflict is like chaosIt is complex – there are many parts and they

way they evolve and impact each other is unpredictable

Conflict is dynamic – change is the only constantPeople can feel out of control in conflict

6

Understanding ConflictThere is an order to conflict – the way

that we identify it and respond to itAs we understand conflict better, we

begin to see patterns emergeThe more we understand individuals in

conflict, the better we are able to respond thoughtfully

7

Understanding People in Conflict

Thomas-Killman Conflict Mode InstrumentCompete

AccommodateAvoid

CompromiseCollaborate

8

Compete

Accommodate

Avoid

Compromise

Collaborate

04/22/23

Interest-Based Negotiation

A more effective and more lasting way to resolve conflict

10

Separate the people from the problem

Focus on interests not positions

Create options for mutual gain

Develop your BATNA

Define objective criteria

11

Separate the people from the problem

12

Separating People and Problem

Negotiators have the ability to separate the substantive problem and their relationship with others

People & problems get entangled by:PerceptionsAssumptionsEmotionsCommunication

13

Perceptions and Assumptions

Place yourself in their shoesDo not interpret their motives by your fearsDiscuss the perceptions

I

You It

14

EmotionsRecognize they exist and they

contribute to conflictAcknowledge them and allow for time

to express– listening to emotion gives you clues about what is important to others

Do not react to them

15

CommunicationListen to understandFrame your messageConsider delivery mechanism

16

Separate the people from the problem

Focus on interests not positions

17

PositionsPositions are “what you want” They are your pre-determined goalsThey are often based on power and/or

rightsThe goal in a positional negotiation is to

persuadeThey are win-lose

18

InterestsIf positions are “what you want”, interests are

”why do you want them?”They are your hopes, fears, concerns and

prioritiesThere are three types

SubstantiveProceduralPsychological

19

Focus on InterestsPositionsSolutions to problemsSpecific & definiteBasis for argumentRequire justificationEnd discussion

InterestsWhy a particular

solution is preferredReasons underlying

positionsRequire explanation

not justificationStart discussion

20

Why Focus on Interests?Interests define the problemInterests allow for a variety of possible solutionsInterests allow for a solution that may not

involve compromiseInterests help us evaluate a possible solutionFocusing on interests provides increased

understanding between people in conflict

21

Position Position

Interests

22

Separate the people from the problem

Focus on interests not positions

Create options for mutual gain

23

Interests Lead to OptionsExamining and evaluating the interests

highlights areas of mutual gain

How do participants prioritize their interests?How do they fit together?

24

Options for Mutual GainThere is always more than one optionThink outside the boxExpand the pie

25

Options for Mutual GainBrainstorm possible solutions togetherConsider options for joint benefitCreate what neither of you could do on your ownLook for possible trade-offs that can turn

potential into reality

26

Overcoming Barriers to Developing Mutual

OptionsPremature judgmentSearching for the SINGLE answerAssuming a “fixed pie” Solving their problem is THEIR problem

27

Separate the people from the problem

Focus on interests not positions

Create options for mutual gain

Develop your BATNA

28

Best Alternative to Negotiated Agreement

What will you do if you are unable to reach agreement in the negotiation?

These alternatives are outside the negotiation and are typically implemented without the buy in of the other.

29

Identify and Use your BATNA

Know your BATNAFocus on what you want to achieve and the

different ways to accomplish this Strengthen your BATNA

Construct your BATNA to be more achievable, probable, or satisfying more of your interests

Improves your confidence during the negotiation Consider other side’s BATNA

Make their BATNA less attractive to them

30

Options and BATNANote the difference

Options“Inside” the negotiation Created with

counterpart Brainstorming

session Potential solution(s) BOTH you and

counterpart receive benefit

BATNA“Outside” the

negotiation Fall back position if

negotiation fails Can be implemented

unilaterally

31

Separate the people from the problem

Focus on interests not positions

Create options for mutual gain

Develop your BATNA

Define objective criteria

32

Objective Criteria“Others in the industry do….” (What is

customary)“The last time this happened we….”

(Precedent)“The standard contract says…” (Law)“If you were me would you….?” (Reciprocity)

33

The Process of NegotiationSet the StageGather Information – explore interestsFrame and prioritize issuesGenerate and Evaluate OptionsFinalize Agreement

34

Prepare to NegotiateKnow your interests and anticipate those of

othersAssess your relationships and it’s impact on the

negotiation.Think about (without settling on) possible options

for mutual gainDetermine your BATNAUnderstand your standards of fairness and

anticipate others’

35

Culturally Competent Dispute ResolutionCultural Considerations in Negotiation

36

Cross Cultural Training in the Past

Cookbook approachRecipes perpetuate stereotypesContinues narrow definition of culture as ethnicFocus is on “those” peopleUnderstanding and skills remain

underdeveloped and can be counterproductive

37

Evolution of NegotiationHas been historically culture neutralDeveloped from the perspective of one

culture without accounting for differences or ambiguity

38

Definition of CultureWay of life that includes values, beliefs and

behaviorsPassed down from one generation to anotherIt is learned

39

The Iceberg Theory of Culture

40

Dimensions of Culture Core Dimensions – aspects that are the most personal and

virtually unchangeable (ethnicity, gender) Internal Dimensions – Aspects that apply through our

development (language, family constellation) Peripheral Dimensions – Aspects that apply through

choice (education, marital status) External Factors – Aspects from our environments

(community, politics)

41

Generalizations and Stereotypes

Generalization Never applies to

everyone in every situation

Only a first “guess” Discard when no

longer useful

Stereotype Applies to everyone in

every situation No exceptions Retained even when

no longer accurate or useful

42

Primary and Secondary Cultures

Primary culture is your individual culture

Secondary is one within which you live/work

Each organization has a set of assumptions, practices, beliefs, and values.

We bring our primary cultures into the secondary culture

A health organizational culture will allow for members to manage primary cultural differences

43

Culture and ConflictCulture affects negotiations

The way we identify a conflictThe way we respond to conflictThe outcome we desire in negotiation

44

Cultural Continuums To Do

Earned status Achievement Individual Action Equality Immediate Family Self Reliance Independence Competition Guilt Future Class Mobility

To Be Ascribed Status Affiliations Stability Inequality Extended Family Rely on others Interdependence Cooperation Shame Past/Heritage

45

Cultural Considerations in Negotiation

Direct and in-direct communication and conflict resolution

Saving face and solving the problemLinear and circular thinking and communicating

46

What can you do?Know yourself in conflictWork to understand individuals as unique

cultural beingsMake an effort to understand the interests of

othersRemember that negotiation is a constant

process of introspection and change

47

Thank YouElizabeth Z. Waetzig, JD

Change Matrix, LLC485 Maylin St.

Pasadena, CA 91105626-696-3227

ewaetzig@changematrix.org