1 Conflict and Negotiation Class 9 OBHR E-110 Christina Finegold and Linda Miklas

2 3 Areas of Interest in Negotiation Substance Process Relationship Harvard University, Center for Workplace Development

3 Negotiations often fail Deals are not made Disputes are protracted Relationships are damaged Money and time are wasted The Problem

4 Possible Causes View negotiation as primarily zero-sum in nature. Lack a systematic framework for preparing for, conducting, and analyzing our negotiations. Unaware of impact of our behavior on others. Limited by institutional and cultural norms. Trapped by the three “E”s: Ego, Emotions, & Escalation.

5 Common Ways of Defining Success Reaching agreement: –“Hey! We got a deal! We persuaded the VP to give us an additional FTE.” Not fighting: –“Wow. That was easy. She was friendlier than I expected.” Equity: –“It felt really fair to me.” Winning: –“I did better than he did. He conceded a lot more than I did.” Breaking their bottom line: –“I did great! Stacy agreed to terms much worse than what she planned.”

6 Possible Solutions Learn a simple, systematic way to measure success in negotiation Prepare using a framework Apply a purposeful mindset Review your negotiations on your own or with your counterpart whenever you can to understand what works well and what you can do differently Do what you can to make systemic changes within your department or unit to increase trust and encourage negotiating for joint gain

7 Traditional Negotiation Commitment (extreme position) Final offer Last Offer Final last offer Commitment (extreme position) Final offer Last offer Final last offer Threat to walk Harvard University, Project on Negotiation

8 Circle of Value-Based Negotiation Communication Relationship Interests Options Legitimacy BATNA Commitment Harvard University, Project on Negotiation

9 Assumptions Pie is fixed Only job of negotiator is to claim value Assumptions Pie can be expanded Negotiators should look to create value before dividing it up Interests BANA Communication Commitment Options Legitimacy Relationship If “No” If “Yes”

10 7 Elements of a Negotiation Interests – What do people really want? Options – What are the sources to be gained? Alternatives (BATNA) – What will I do if we do not agree? Legitimacy Relationship – Can I separate people from the problem? Communication – Am I listening effectively? Commitments – Have we considered the steps to implementation? Source: Program on Negotiations, Harvard Law School

11 7 Elements of a Negotiation DefinitionMeasure of Success Advice InterestsNeeds, concerns, goals Satisfies parties’ interests Probe for interests; ask Why/Why Not? AlternativesBATNABetter than your BATNA Improve your alternative before negotiations begin; make their alternative less appealing OptionsAll possibilitiesExpands the pieSeparate option generation from evaluation and commitment LegitimacyExternal criteriaEstablished standardsCriteria = sword/shield CommunicationExchange of info and thought Message sent = message received Tone-match to audience; advocate AND inquire RelationshipConnection between parties Relationship improves or is not harmed Be constructive; problem vs. people CommitmentAgreement to will/will not Specific, firm, implementable Use both process and substance commitments; not too early

12 5 Conditions of Human Interaction Lose-Lose Lose-Win Win-Lose Win Win-Win Source, The Seven Habits of Highly Effective People by Stephen R. Covey

13 5 Levels of Conflict Source, The Thomas-Kilmann Model Avoiding Collaborating Compromising Competing Accommodating AssertivenessAssertiveness Cooperativeness

14 A Successful Negotiation Meets our Interests well, theirs acceptably, and others tolerably enough to be durable. Is the best of many Options. Is better than our BATNA. Is Legitimate, supported by objective criteria. Improves, or at least does not damage the Relationship. Is based on clear Communication. Identifies Commitments that are specific, firm, & implementable.

15 Case Study Introduction and Instructions (5 mins) Preparation (10 mins) Negotiation (15 mins) Debrief

16 Journal Reflection Questions What is my comfort level in negotiating outcomes? What are my strengths/how do I apply my strengths in situations requiring negotiation? How might I develop negotiation skills? How would developing negotiation skills benefit me?