Negotiating Effectively Binod Kumar Bista Shilu Pradhan

What is negotiation? Negotiation is a process of two or more parties working together to arrive at mutually acceptable resolution of one or more issues It deals with the conflicting situation of two or more conflicting parties to settle down the issue Negotiation refers to a process of seeking to influence others It is a ‘give-and-take’ bargaining process Opportunity to solve problem in collaborative way Negotiation occurs everyday.

Seven element framework Communication Relationship Interests Options Legitimacy Commitment Alternatives If “No” If “Yes” Enabling value Creating value Claiming value 09/09/2019

Position versus interests

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!”

Cont… What you do if you were the mother? Flip a coin Cut the orange into two equal pieces Let them children fight over the orange

Cont… Why do each of you absolutely want this orange? ?

Cont… 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. Daughter Son

Options The full spectrum of possible agreements; The possible solutions which may satisfy the interests of both the parties are called 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

Possible Options For Orange Story To cut the orange in half. One to take all the fruit, and for the other to take all the peel. To take the orange, squeeze a glass of orange juice, sell it, and then go buy two more oranges

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

Communication: Two main kinds of verbal communication.  Advocacy or making statements. When we advocate, we give information such as facts, our opinions, conclusions, etc. Inquiry or asking questions. When we inquire, we seek information for the purpose of learning. 09/09/2019

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

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 Listening:- “Some of the worst negotiators I have seen are the ones who do all the talking, seeming to want to control the conversation and expound endlessly on the merits of their position. The best negotiators tend to be the ones who truly listen to the other side, understand their key issues and hot buttons, and then formulate an appropriate response. Try to gain an understanding of what is important to the other side, what limitations they may have, and where they may have flexibility. Refrain from talking too much.”

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. “The reason you negotiate is to produce something better than the results you can obtain without negotiating. What are those results? What is that alternative? What is your BATNA

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. George Bernand Shaw says, “Don’t wrestle with pigs, you get dirty and they enjoy it”. It means always have other people to talk with & to do business with (alternative)

Case Study

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

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”