 The 2nd Younger Members Convention All in the mind: essential negotiation skills 1-2 December 2003 The Glasgow Moat House

Introduction n Section 1 – an overview n What do we mean by negotiation? n When do we negotiate? n Who negotiates? nSection 2 – the negotiation process n Positional bargaining n Alternatives to positional bargaining nSection 3 – that’s all well and good in theory… n What if they are stronger? n What if they use dirty tricks? n What if we are the powerful ones?

Section 1 – an overview Definitions n ‘If you want a guinea pig, start by asking for a pony’ – Annabel, aged 6 (3) n ‘To confer with others in order to reach a compromise or agreement’ – Oxford English Dictionary n ‘A transaction in which both parties have a veto over the final outcome. It is the act or process of bargaining to reach a mutually acceptable agreement or objective’ – David Oliver (2) n ‘Negotiation is a process of agreement for mutual gain’

Section 2 – the negotiation process n Positional bargaining n Has advantages n But can be dangerous – more likely to result in deadlock n Problems with positions n Can produce a sub-optimal agreement n Can be inefficient n Can endanger an ongoing relationship

Section 2 – the negotiation process Alternatives to positional bargaining n People n Interests n Options n Criteria ‘Getting to Yes’ – Roger Fisher and William Ury (1)

Section 2 – the negotiation process People: separate the people from the problem n Source of conflicts n Perception n Emotion n Communication n Responses n ‘Have I separated the people from the problem?’ n ‘Is my response to the situation based on my response to the problem or my response to the people?’ n ‘Am I paying enough attention to the people issue?’

Section 2 – the negotiation process Interests: focus on interests, not positions n Interests and positions – the human iceberg n Interests are powerful motivators of behaviour – often expressions of basic human needs n Responses n Know your enemy n Be clear and explicit n Acknowledge their interests n Focus on the problem n Look forward not back

Section 2 – the negotiation process Options: generate a variety of options before deciding what to do n Skill at inventing options is essential n Not inventing is the natural state n Responses n Brainstorm with the other side n Separate the act of invention from the act of judgement n Identify shared interests n Trade n Consider your BATNA – best alternative to a negotiated agreement

Section 2 – the negotiation process Criteria: measure any proposal against objective standards n Different people have different perceptions of what is ‘fair’ n Positional bargaining results in a contest of pressure n Responses n Bring standards of fairness, efficiency and objectivity to bear n Any agreement consistent with precedent is less vulnerable to attack n If no fair standards or benchmarks exist, then work with the other side to agree fair procedures to produce them

Section 3 – that’s all well and good in theory… What if they are just plain stronger than us? n Negotiation Jujitsu (1) n When they assert their position – don’t reject n When they attack your ideas – don’t spring to their defence n When they attack you – don’t counter attack n Third party mediation

Section 3 – that’s all well and good in theory… What if they use dirty tricks on us? n Dirty tricks include: n Deliberate deception n Psychological warfare n Positional pressure n Response n Recognise the ploy and acknowledge that you have recognised it n Same rules as before – People / Interests / Options / Criteria

Section 3 – that’s all well and good in theory… What if we are the powerful ones? n If we are in the dominant position, shouldn’t we: n Use our strength to maximum advantage? n Use negotiating tactics and dirty tricks? n Just impose our will?

Conclusions n All in the mind: essential negotiating skills n Positional bargaining has a place, but can be dangerous n Remember Fisher & Ury n People n Interests n Options n Criteria n Use your strength wisely

One final quote… ‘When a man tells me he is going to put all of his cards on the table, I always look up his sleeve’ Lord Hore-Belisha (3)

Acknowledgments and recommended reading n Getting to Yes: Negotiating an agreement without giving in – Roger Fisher & William Ury (1) n How to Negotiate Effectively – David Oliver (2) n Successful Negotiating – Patrick Forsyth (3)