Negotiation Skills for the HR Professional AK State HR Conference 2017 Frank Jeffries

A Quick Little Peek Everyone’s first Question Negotiation Approaches and issues What is possible? How do we get there?

What’s in it for Me? You want to advance your interests (so do they) You want the other side to agree and be happy about it Or as Daniele Vare said “Negotiation is the art of letting them have your way”

Common Approaches to Negotiation Concern for the other’s outcome Concern for one’s own outcome Four modes (and compromising) accommodate inaction contending problem solving

Dual Concern Model High Accommodate Problem Solving Concern for Other Compromise Inaction Contending Low High Low Concern for Self

It is Not Just About You If you are not in tune with what the other side wants you are going to be hard pressed to meet their needs It is important to see things from their point of view (WIIFM?) Framing offers in a way that they look attractive to your opponent requires understanding what they want

Relax the Focus on Dollars and Tangible Outcomes There are usually more things on the line than money The relationship: are you going to see this person again? Social contract: behavior, changes, shared expectations Process: needs to be personable, reasonable, and fair Interests of stakeholders and constituents: who cares about the deal and has power Economics are necessary but not always sufficient to close a deal

Common Barriers to Objectivity Self-serving bias: seeing you position more favorably than is realistic (think arbitration) Partisan perception: we see our side as morally superior, talented, honest and basically vilify the other side (same as groupthink) intensifying the conflict This can create a self-fulfilling prophesy (if you think they are a jerk….)

What is Really Possible? Much of the time we create just adequate solutions Both sides work so hard to protect themselves they both lose out on better outcomes Other times we don’t do the work Pareto superior solutions are what we want

The Potential is Real: Pareto Superior Solutions High Pareto Optimal Frontier Value for You Unrealized Potential Value Typical Settlement Point Low Low High Value for Me

How to Create Pareto Superior Solutions Superordinate goal Trust Plan Develop supporting arguments Choose an integrative approach to negotiation

Develop a Superordinate Goal It is important and necessary Establishes that you have mutual goals You work for the same organization (value chain) You have the same mission You have the same vision You have the same values Lays the foundation for success

Trust It is foundational to risk taking Risk taking is foundational to Pareto superior solutions It starts with the second you meet Take time to establish rapport every single meeting Remember the superordinate goal

Knowing What You Want and Why: Planning Planning is critical to success Know your BATNA (Best Alternative to a Negotiated Solution) Set goals and limits It is about total value, not absolutes on single issues It needs to make sense for both sides – DON’T FORGET IT The rationale must be convincing

Be Clear About Your Expectations Mutual gains approach /Interest-based bargaining Telling the truth Exercising restraint Expect cynicism Be persistent Be the leader by example

Integrative Negotiation The basic idea is that both sides can achieve their objectives Some important ideas: Create a free flow of information Understand the other Understand not only what they want Why do they want it? What problem are they trying to solve?

Seek Mutually Beneficial Tradeoffs Preferences are not the same for both parties Talk about your relative priorities Invite your opponent to talk about theirs Discover the differences Explore different ways to logroll Risk, Expectations, Time Preferences Make mutually beneficial tradeoffs and both sides win

Negotiating Offer information Ask for what you want Explain why you want it Be objective, show both sides Use objective data and share your sources Show the benefit to both sides Give them the tools to help them sway their constituency

Don’t Expect Immediate Agreement Be mindful of your opponent’s constituency and their expectations/demands Remember WIIFM? A good deal for you must also be a good deal for them

Expect the Unexpected No matter what happens, keep your cool Don’t respond to attacks Take breaks To cool off tension between sides Just let things go but get firm if you need to

What Happens if You Get Stuck? It happens so: Don’t spin your wheels, move on and circle back later Be clear about why you are stuck Lack of good data Ineffective presentation Hard line constituency Insufficient concession

If at First You Don’t Succeed… Try something different Ask what it will take to get agreement If you need to give something up to move on find a way to recoup it somewhere else

Be Adaptable to Meet Your Overall Goals Setting limits on each issue can create problems Look for overall value of all issues combined instead You will learn things in the negotiation that require flexibility to resolve

Closing the Deal All agreements on all issues are tentative until the deal is done Expect it to go to the deadline Believe in the validity of your position Be patient and firm Be willing to make trades to close the deal but respect your limit

Only by Meeting Your Mutual Goals Will You Create the Greatest Value Both sides need a “win” Cooperation and collaboration create value Understanding their real needs creates opportunities for mutual gain Discovering the real needs requires communication and risk-taking

Be a Team The best assurance that everyone keeps their job is efficient use of resources The negotiation is really about priorities and preferences Subordinating ego for the good of the whole works Done well, mutual gains bargaining lets both sides look like heroes

Celebrate Your Success It is ok to be happy with the deal It is ok for them to be happy with the deal too Set the stage for the next negotiation by parting on great terms

Relax and Have a Good Time!