Interests – power - right “Reconciling interests costs less and yields more satisfactory results that determining who is right, which, in turn costs less and satisfies more than determining who is more powerful”

Interest-based negotiation Reconcile interests Problem-solving approach Creative solutions Common ground Trade-offs Concessions

Rights-based negotiation Cased on laws Negotiation arbitration

Power-based negotiation Coercion Aggression Witholding benefits

Which is the best option? Transaction costs eg strikes, replacement Satisfaction of outcomes: “fairness” Effect on the relationship: long-term, the ability to work together Recurrence – agreement does not ¡stick’

Bear in Mind Interests v Rights/Power – often off the topic Rights v Power – strain relationship (eg parents/kids) Power and coercion can damage relationships

‘Classical’ options/styles AVOID Lose- Lose ACCOMODATE Lose - Win COMPETE Win - Lose COLLABORATE Win – Win COMPROMISE Win – Win? / Lose – Lose? NO STRATEGY “let the chips fall” / ‘laissez faire’, lazy?

Selecting a Strategy Relationship concerns: past present and future Outcome concerns: how important is it? Situation Preferences Experience Style Perceptions

On style

Effective Negotiators Focus on the right problem: Daniele Vare “the art of letting them have your way”

Mistake 1: Neglecting the other side’s interests “Power doesn’t come from telling the other side you are powerful” “If you want to change someone’s mind you should first learn where that person’s mind is” Rupert Murdoch

Mistake 2: Thinking Price is more important than other factors 50% emotion, 50% economics Life is more than economics Perceived fairness, Self-image, Reputation Relationship Social contract “spirit of the deal” Process: personal, straight forward, respectful, fair Interests of ALL (there are others involved)

Mistake 3: Position drives out interests Issues are on the table for agreement Positions: how a party stands on an issue Interests: underlying concerns

Mistake 4: Searching too hard for common ground

Mistake 5: Neglecting BATNAs

Mistake 6: Skewed vision

3 phases The information phase The competitive phase The cooperative phase

Tactics in the competitive phase “principled” offers and concessions Argument Threats and promises Silence and patience Limited authority Anger Aggressive behaviour Uproar

More tactics Settlement brochures and video presentations Boulwareism : best offer/take it or leave it Br’er Rabbit: reverse psychology Mutt and Jeff: Belly up Passive-aggressive

Any questions? For next week, bring in a CV and a covering letter for an internship of your choice