8/12/2019 713 Negotiation
1/31
PRINCIPLED NEGOTIATION
Negotiating is something we do every day. Negotiating is about producing wise and
stable outcomes in situations of conflict. The ability to negotiate can make the
difference between success and failure.
8/12/2019 713 Negotiation
2/31
PRINCIPLED NEGOTIATION
KEY IDEA
Never negotiate over positions
8/12/2019 713 Negotiation
3/31
EXAMPLES OF POSITIONS
I want 375 000 for the sale of thisbusiness and I wont take a penny less.
The rent on this flat is 500 a month takeit or leave it.
I am entitled to take next week asholiday
8/12/2019 713 Negotiation
4/31
ALTERNATIVES TO POSITIONALBARGAINING
Separate the people from the problem. Focus upon interests, not positions.
Invent options for mutual gain. Insist upon objective criteria.
8/12/2019 713 Negotiation
5/31
SEPERATING THE PEOPLE FROMTHE PROBLEM
Negotiating can involve dealing withemotion.
Emotion can be a destructive influence. Emotions may be stirred by fear of loosing.
8/12/2019 713 Negotiation
6/31
HANDLING EMOTION
Perception is the key to handling emotion.
8/12/2019 713 Negotiation
7/31
PERCEPTION
Try and see the issues from the other partys pointof view
Never deduce their intentions from your worst
fears Avoid blaming the other party for the problem Try and act inconsistently with the other partys
perceptions Involve the other party give them a stake in the
outcome Allow the other party to save face
8/12/2019 713 Negotiation
8/31
EMOTION
Recognise and understand emotions of allpartys
Allow people to express emotion Never react to an emotional response
8/12/2019 713 Negotiation
9/31
COMMUNICATION
Is the key to achieving understanding
8/12/2019 713 Negotiation
10/31
GOOD COMMUNICATION
Generous listening listen actively andshow you have listened by asking questions.
Speak for a purpose get your messageacross
Build relationships
8/12/2019 713 Negotiation
11/31
FOCUS ON INTERESTS NOTPOSITIONS
EXAMPLE
Naming a rent is a position
Seeking a good tenant is an interest
8/12/2019 713 Negotiation
12/31
FOCUS ON INTERESTS NOTPOSITIONS
ANOTHER EXAMPLE:
Naming a price is a position. Obtaining good and reliable supplies is an
interest.
(You can always get something cheaper!)
8/12/2019 713 Negotiation
13/31
INTERESTS
The task of negotiating is to reconcileinterests
Interests define the problem Interests may conflict but there often
multiple shared interests
8/12/2019 713 Negotiation
14/31
SHARED INTERESTS
EXAMPLE
Both landlord and tenant may want stability,a safe, comfortable and attractive property.
8/12/2019 713 Negotiation
15/31
INTERESTS
Make a list:
They want You want You both want
8/12/2019 713 Negotiation
16/31
INTERESTS
Discuss interests openly Acknowledge each others interests as part
of the problem Be clear about your interests but flexible
about how you might achieve them
Be hard on the problem soft on the people
8/12/2019 713 Negotiation
17/31
INTERESTS
Different interests canbe reconciled.
Customer wants to besupplied on time, nomatter what happens.
Seller wants to be paidpromptly. Entrepreneur wants a
quiet life. So, actuallydoes the taxman!
8/12/2019 713 Negotiation
18/31
INVENT OPTIONS FOR MUTUALGAIN
This is the most creative part of thenegotiations process
It is generative scope for lateral thinking,parallel thinking and brainstorming
Broaden options, multiply options
Search for mutual gain
8/12/2019 713 Negotiation
19/31
BLOCKAGES TO INVENTINGOPTIONS
Premature closure Single answer mentality
Fixed pie assumption Refusing to deal with the other partys
problem as part of the problem.
8/12/2019 713 Negotiation
20/31
OBJECTIVE CRITERIA
GENERIC EXAMPLES Market value
Equal treatment Professional standards Efficiency Costs
8/12/2019 713 Negotiation
21/31
OBJECTIVE CRITERIA
EXAMPLES:
Compare price of equipment with similarmachines Base rent on market rates for comparable
properties Wage rises linked to a cost of living index
8/12/2019 713 Negotiation
22/31
8/12/2019 713 Negotiation
23/31
POWER DIFFERENTIALS
WHAT IF?
They are more powerful than you? They refuse to negotiate? You simply dont trust the other party to
keep their promises? The other party makes extreme demands?
8/12/2019 713 Negotiation
24/31
POWER DIFFERENTIALS
Dont attack their position explore theinterests and emotions that lie behind it
Dont take up a fixed position invitecriticism and advice
Reframe personal attacks as an attack onthe problem
Ask questions Institute a pause
8/12/2019 713 Negotiation
25/31
POWER DIFFERENTIALS
Finally if all else fails.
8/12/2019 713 Negotiation
26/31
POWER DIFFERENTIALS
INVOKE Best alternative to a negotiatedagreement. (BATNA)
8/12/2019 713 Negotiation
27/31
8/12/2019 713 Negotiation
28/31
POWER DIFFERENTIALS
No matter how powerful the stronger partyis, the weaker party always has somepower.
8/12/2019 713 Negotiation
29/31
SURPRISES IN NEGOTIATION
The best alternative might actually be thebetter option! Remember: green hatthinking.
The other partys power reflects your needfor what they control.
Note: there are few if any must haves inthis life!
8/12/2019 713 Negotiation
30/31
PRINCIPLED NEGOTIATIONSUMMARY
The aim of principled negotiation is to avoidgetting into a contest of wills that oftenleads to conflict or an inefficient mechanicalsplitting of the difference.
8/12/2019 713 Negotiation
31/31
PRINCIPLED NEGOTIATIONSUMMARY
Separate the people from the problem. Focus upon interests not positions.
Invent options for mutual gain. Insist upon objective criteria. Prepare a best alternative to a negotiated
agreement.