Interest-Based Negotiation Training Nick Tomb, Izumi Wakugawa Global Majority Promoting Peace Through Dialogue Amman, Jordan July 21, 2008

2 Negotiation Approaches Interest- based Competitive

Competitive (Distributive) Relies on “Positional Bargaining” Parties stake out a position and engage in a contest of wills/egos Seek concessions from other party Pursue one (single) solution to the problem Develop a single “bottom line” as part of the single solution sought

Interest-based (Principled) 1. Hard on problem, soft on PEOPLE 2. Identify INTERESTS that compel various positions 3. Brainstorm multiple OPTIONS to find best solution(s) 4. Develop BATNA (Best Alternative to a Negotiated Agreement) 5. Rely on OBJECTIVE CRITERIA (Fair standards)

1. People (the parties) Research/Investigation: Who are your counterparts? What are their fears, ambitions, goals, and preferred outcomes? Who is their constituency? To whom must they defend the agreement?

People (cont’d) What is their AUTHORITY? Power to make a deal Power to “bind” their government, company, organization Is it limited? Who has ultimate authority? How to determine? ASK!!!

People (cont’d) What is your AUTHORITY? Do you have power to enter agreement? To whom do you report? Use of “limited authority” to your advantage.

People (cont’d) Build the Relationship Future Dealings Reputation (honesty, ethics, implementation of agreements) Multiple Parties, Interest Groups & Constituencies

2. Identify Interests Interests are what lie behind positions Often related to security, sovereignty, legitimacy, reputation, economic security, justice, survival needs, moral commitment, etc. What are your INTERESTS?

Identify Interests (cont’d) What are their INTERESTS? To determine interests, ask “Why” or: “What is it about this price, solution, or offer that you consider most important?” What are other parties’ INTERESTS? govt. agencies, organizations, consumers, clients, voters, media, competitors, etc.

3. Invent Options A. Create atmosphere of open BRAINSTORMING, to develop MULTIPLE OPTIONS B. Be Creative - Invent Multiple Options/Solutions C. Expand the “Pie” D. By understanding the parties’ real INTERESTS you can fashion creative options/solutions that they may not have considered

Invent Options (cont’d) E. Use flip charts, butcher paper, black boards, white boards, etc. F. Create a JOINT PROBLEM SOLVING relationship. G. Invite wild, extreme, unorthodox, ideas and options. H. Create a LIST I. DO NOT reject or select any proposal during a brainstorming session.

Invent Options (cont’d) J. Prioritize the list by eliminating, amending, selecting, and ranking potential options/solutions. K. Introduce a SINGLE TEXT DOCUMENT You present a written draft You INVITE critique, amendments, and edits Obtain signatures/initials on single text documents - interim agreements, procedural agreements (=Confidence boosters.)

4. Develop “BATNA” “Best Alternative to a Negotiated Agreement” in three steps: Step #1. Develop your “Walk Away Alternative” (OPTION) Market place example Employment example

Develop BATNA (cont’d) Step#2. Build your BATNA Research/investigation Use of “objective criteria” or evidence to support your positions Increases your negotiating power Step#3 Reduce power of their BATNA Research/investigation/use of evidence, objective criteria They gain more if they stay in the negotiation

5. Use Objective Criteria Use of “Fair Standards” to assist in the resolution of disputes/conflicts Introduce a non-controversial authority or standard: Precedent decisions (legal, administrative, WTO, NAFTA, etc.) Industry practice and standards (example: prevailing wage rates) Scientific Studies Expert testimony or analysis

Objective Criteria (cont’d) Easier to accept an “outside authority” or established standard as a “fair means” of dispute resolution Useful phrases: “All we want is an agreement that is fair…” “Show me why you consider this to be a fair offer?” “How did you arrive at this amount, proposal, position, etc.?”

Interest-based Negotiation: Summary 1. Focus on People Interest-based Negotiation: Summary 2. Identify Interests 5. Objective Criteria 3. Invent Options 4. Develop BATNA

Developing Your Negotiation Strategy (5 Steps) 1. Problem Identification What is the nature of the problem? 2. Determine your Preferred Outcome Remember, there may be multiple options or solutions that will satisfy your interests. Can you describe what you want? Can you put it in writing? Are your team members in agreement? Can you speak with “one voice”

Developing Your Negotiation Strategy (cont’d) 3. What is your Counterpart’s Preferred Outcome? 4. Reverse Roles Can you articulate your counterpart’s interests, goals, and BATNA? Engage in active role-playing with your negotiating team members.

Developing Your Negotiation Strategy (cont’d) 5. Make a Chart People Interests Options BATNA Criteria

Six Negotiation Techniques 1. Use of time, place, & environment

Negotiation Techniques (cont’d) 2. Active Listening Reframe what you have heard “Let me see if I understand you correctly…” “What I understand you to be saying is…” “Correct me if I am wrong, but what I hear you saying is...” Tells your counterpart that you are listening; you are hearing what they are trying to express You don’t have to agree with them, you are just establishing the fact that they are being heard

Negotiation Techniques (cont’d) Ask Questions “What if we did x, y, or z ...?” “How do you arrive at that position?” “What information do you rely upon..?” “How do you feel about…?” “Do you think it would work if we tried...? Why not? How could we make it work better? What would you recommend? What would be acceptable to you?”

Negotiation Techniques (cont’d) 3. Take Breaks (go to the balcony) DON’T be pressured into a hasty, unwise, or rapid decision “Example: “You have made an interesting proposal. Let me take five minutes to discuss it with my colleagues (team members).”

Negotiation Techniques (cont’d) DON’T be pressured into a “TAKE IT OR LEAVE IT ULTIMATUM” “I realize you have put much time and thought into the development of this proposal. I would like to review it with the same care and consideration with which you prepared it. Let’s meet again tomorrow at the same time.”

Negotiation Techniques (cont’d) 4. Use “SINGLE TEXT DOCUMENTS Write down your proposals as to procedural agreements, timetables, substantive terms and conditions, etc. 5. Identify DIRTY TRICKS, STRONG ARM TACTICS & RUDE BEHAVIOR 6. Build your REPUTATION … for fairness, follow-through, and reliable implementation of agreements.

Negotiation Skills Application Group Exercises