Negotiation Skills Shilu Pradhan Anita Poudel

A Story of 17 Camels & 3 Sons

Story of 17 Camels & 3 Sons Once there was a man who owned seventeen camels. One day, he called his three sons and said, “I am too old to look after my camels. So I shall divide my seventeen camels amongst the three of you. My eldest son will get half the camels, my second son will get 1/3rd of 17 camels & my youngest son will get 1/9th of 17 camels.

Story of 17 Camels & 3 Sons As it is not possible to divide 17 into half, or 17 by 3 or 17 by 9, the sons started to fight with each other. How will the sons divide the camels? MORAL of the Story : The attitude of negotiation is to find the 18th camel i.e. the common ground. In order to reach a solution, the first step is to believe that there is a solution.

Do you agree on it? Your preparation ended up with good result You felt powerful because you were well informed You had tried thinking in a different way in a given situation and you succeeded You were obliged to set rules and standards You were confident because you had a “Plan B”

With whom do you negotiate in your daily life?

Definition of Negotiation “It is the process of combining conflicting positions into a common position, under the decision rule of unanimity” Henry Kissinger

Negotiation: Elements Communication Relationship Interest Options Legitimacy Commitment BATNA

Using the Elements Communication Relationship Interests Options Legitimacy If “Yes” If “No” Alternatives Commitment Copyright © 2008 CMPartners. All rights re

Position Versus Interests

“Mom, I absolutely want this orange!” The Orange Example A mother of two children has one orange left in her fruit bowl. Both children are implicitly claiming the orange for themselves: “Mom, I absolutely want this orange!” Also you might ask: Why am I annoying you with those oranges? In many books about the Harvard Concept, an orange is used in a simple but evident example to illustrate the Harvard Concept. As I said before, the method behind the Havard Concept is to negotiate in an appropriate way guided by interests. It tries to solve a problem into a win-win situation. So let’s see what is the problem with this orange:

What should the mother do? Should she flip a coin? Should she cut the orange into two equal pieces? Should she let her children fight over the orange? The mother, without any doubt the leader of her subordinates the children, has to decide what to do, she has to do the right thing. What do you think the mother should do? Who prefers tossing a coin, HANDS UP? Who would cut the orange into two pieces? Who would let the strongest of the children prevail? Who would suggest a different solution to the problem?

“Why do each of you absolutely want this orange?” Luckily the mother is an alumni of this workshop program, is a smart and responsible leader, and is doing the right thing! She is asking: “Why do each of you absolutely want this orange?”

Son: Daughter: The daughter would like to bake a cake. Therefore she only needs the skin of the orange to add some flavor. And here is what her children would like to do: The daughter would like to bake a cake. Therefore she only needs the skin of the orange to add some flavor. The son is thirsty and would like to squeeze the orange for a glass of fresh juice. To do so he does not need the skin of the orange. After clarifying the needs of both children, the answer to the problem with the orange is suddenly very easy. Both interests can be taken into account: The daughter gets her orange skin, the son gets the peeled orange. Both are happy, we have a win-win situation! If the mother would have opted for the quick decision to compromise and simply cut the orange in half, both children would have left the kitchen unhappy, we would have had a lose-lose situation. The son is thirsty and would like to squeeze the orange for a glass of fresh juice. To do so he does not need the skin of the orange.

Project Manager’s position: I want a one-month extension to finish the project. Project Manager’s interest: Before facing unforeseen obstacles in completing this project on time, she approved the lead programmer’s vacation and wants to demonstrate to her team that she fights for their needs and keeps her word.     Boss’s position: The original deadline stands and you cannot have a one-month extension. Boss’s interest: Get the project done on time.     Ways to address interests: 1) Boss gives Project Manager discretion to change team members assigned to projects, and extends deadline on another project so that team members can be brought over during the lead programmer’s absence. 2) Approve budget for overtime compensation or additional support.     Result: Project is done on time, without an extension, and the Project Manager keeps her word on approved vacations.

Options The full spectrum of possible agreements; Brainstorm more options by using your creativity skills Generate a variety of possibilities before deciding what to do Invent first, evaluate later

Obstacles that Inhibit the Inventing of Multiple Options premature judgment; searching for the single answer; the assumption of a fixed pie; and thinking that “solving their problem is their problem”.

Legitimacy Market value Precedent Scientific judgment Professional standards Efficiency What a court would decide Moral standards Tradition

Legitimacy It creates the sense of fairness among the parties It also gives the feelings of ownership; ownership leading to commitment; commitment leading to success; success leading to motivation for next time business and the cycle goes on.

Communication Listen actively and acknowledge what is being said Negotiators are not really listening to the other side. They are thinking about their next argument. Listening is the cheapest concession one can make in negotiation Show empathy

Communication WHEN WE ARE IN THE CIRCLE OF VALUE, OUR INQUIRY SKILLS BECOME VERY IMPORTANT THEN THAT OF OUR ADVOCACY.

Relationship Separate the people from the problem Pause your behaviour before reacting Try to maintain a longer term relationship with the other party “Speak when you are angry and you will make the best speech you will ever regret.” Groucho Marx

Commitment It is making sure the agreement reached is realistic and that both sides can keep their end It’s easy for people to agree on a common way forward, but it is the commitment that powers everyone to do whatever is necessary to make it happen. In Negotiation, focus on gaining commitment, not just agreement.

BATNA-Best Alternative to a Negotiated Agreement “It is the standard against which any proposed agreement should be measured.” - Roger Fisher and William Ury It is a walk away alternative The better your BATNA, the greater your power. Knowing your BATNA gives you additional confidence in the negotiating process.

BATNA It tells you when to accept and when to reject the agreement - When a proposal is better than your BATNA, accept it - When a proposal is worse than your BATNA, reject it

BATNA Negotiating without determining your BATNA is negotiating with your eyes closed. Successful negotiation is satisfying your interest better than you could by exercising your BATNA. It means always have other people to talk with & to do business with (alternative)

BATNA BATNAs are not always readily apparent. Fisher and Ury outline a simple process for determining your BATNA: i. develop a list of actions you might conceivably take if no agreement is reached; ii. improve some of the more promising ideas and convert them into practical options; and iii. select, tentatively, the one option that seems best

Strategic Inquiry Guidelines Inquiry into INTERESTS What are you trying to accomplish in these negotiations? What are your key motivations in these negotiations? What are you concerned about? Do you feel we “must” do a deal here? Would you prefer to work something out jointly ?

Strategic Inquiry Guidelines Inquiry into OPTIONS What would be wrong with...? What other ideas might we brainstorm on this problem? If we work together, how might we make this better for both of us? Do you have the authority to make a decision on this?

Strategic Inquiry Guidelines Inquiry into LEGITIMACY Why do you think we ought to do that? What benchmarks do you see in our field of work that make this appropriate? If you were I, how would you justify that to others?

Negotiation: Tools Going into the balcony:- It is the place of self control, place of calm, & place of perspective Listening & Respect :- The cheapest concession that one can make in a negotiation is give someone basic respect Power of reframing:- It is about moving from positions to interest. Power of bridging :- It is about making the other side easier to make the decisions in our favor

Getting to YES Separate the people from the problem Focus on interest not on position Invent options together for mutual gains Figure out the objective criteria Know your BATNA