1. Negotiation Skills for the HR Professional
AK State HR Conference 2017
Frank Jeffries

2. A Quick Little Peek Everyone’s first Question
Negotiation Approaches and issues
What is possible?
How do we get there?

3. What’s in it for Me? You want to advance your interests (so do they)
You want the other side to agree and be happy about it
Or as Daniele Vare said “Negotiation is the art of letting them have your way”

4. Common Approaches to Negotiation
Concern for the other’s outcome
Concern for one’s own outcome
Four modes (and compromising)
accommodate
inaction
contending
problem solving

5. Dual Concern Model High Accommodate Problem Solving Concern for Other
Compromise
Inaction
Contending
Low
High
Low
Concern for Self

6. It is Not Just About You
If you are not in tune with what the other side wants you are going to be hard pressed to meet their needs
It is important to see things from their point of view (WIIFM?)
Framing offers in a way that they look attractive to your opponent requires understanding what they want

7. Relax the Focus on Dollars and Tangible Outcomes
There are usually more things on the line than money
The relationship: are you going to see this person again?
Social contract: behavior, changes, shared expectations
Process: needs to be personable, reasonable, and fair
Interests of stakeholders and constituents: who cares about the deal and has power
Economics are necessary but not always sufficient to close a deal

8. Common Barriers to Objectivity
Self-serving bias: seeing you position more favorably than is realistic (think arbitration)
Partisan perception: we see our side as morally superior, talented, honest and basically vilify the other side (same as groupthink) intensifying the conflict
This can create a self-fulfilling prophesy (if you think they are a jerk….)

9. What is Really Possible?
Much of the time we create just adequate solutions
Both sides work so hard to protect themselves they both lose out on better outcomes
Other times we don’t do the work
Pareto superior solutions are what we want

10. The Potential is Real: Pareto Superior Solutions
High
Pareto Optimal Frontier
Value
for
You
Unrealized Potential Value
Typical Settlement Point
Low
Low
High
Value for Me

11. How to Create Pareto Superior Solutions
Superordinate goal
Trust
Plan
Develop supporting arguments
Choose an integrative approach to negotiation

12. Develop a Superordinate Goal
It is important and necessary
Establishes that you have mutual goals
You work for the same organization (value chain)
You have the same mission
You have the same vision
You have the same values
Lays the foundation for success

13. Trust It is foundational to risk taking
Risk taking is foundational to Pareto superior solutions
It starts with the second you meet
Take time to establish rapport every single meeting
Remember the superordinate goal

14. Knowing What You Want and Why: Planning
Planning is critical to success
Know your BATNA (Best Alternative to a Negotiated Solution)
Set goals and limits
It is about total value, not absolutes on single issues
It needs to make sense for both sides – DON’T FORGET IT
The rationale must be convincing

15. Be Clear About Your Expectations
Mutual gains approach /Interest-based bargaining
Telling the truth
Exercising restraint
Expect cynicism
Be persistent
Be the leader by example

16. Integrative Negotiation
The basic idea is that both sides can achieve their objectives
Some important ideas:
Create a free flow of information
Understand the other
Understand not only what they want
Why do they want it?
What problem are they trying to solve?

17. Seek Mutually Beneficial Tradeoffs
Preferences are not the same for both parties
Talk about your relative priorities
Invite your opponent to talk about theirs
Discover the differences
Explore different ways to logroll
Risk, Expectations, Time Preferences
Make mutually beneficial tradeoffs and both sides win

18. Negotiating Offer information Ask for what you want
Explain why you want it
Be objective, show both sides
Use objective data and share your sources
Show the benefit to both sides
Give them the tools to help them sway their constituency

19. Don’t Expect Immediate Agreement
Be mindful of your opponent’s constituency and their expectations/demands
Remember WIIFM?
A good deal for you must also be a good deal for them

20. Expect the Unexpected No matter what happens, keep your cool
Don’t respond to attacks
Take breaks
To cool off tension between sides
Just let things go but get firm if you need to

21. What Happens if You Get Stuck?
It happens so:
Don’t spin your wheels, move on and circle back later
Be clear about why you are stuck
Lack of good data
Ineffective presentation
Hard line constituency
Insufficient concession

22. If at First You Don’t Succeed…
Try something different
Ask what it will take to get agreement
If you need to give something up to move on find a way to recoup it somewhere else

23. Be Adaptable to Meet Your Overall Goals
Setting limits on each issue can create problems
Look for overall value of all issues combined instead
You will learn things in the negotiation that require flexibility to resolve

24. Closing the Deal
All agreements on all issues are tentative until the deal is done
Expect it to go to the deadline
Believe in the validity of your position
Be patient and firm
Be willing to make trades to close the deal but respect your limit

25. Only by Meeting Your Mutual Goals Will You Create the Greatest Value
Both sides need a “win”
Cooperation and collaboration create value
Understanding their real needs creates opportunities for mutual gain
Discovering the real needs requires communication and risk-taking

26. Be a Team
The best assurance that everyone keeps their job is efficient use of resources
The negotiation is really about priorities and preferences
Subordinating ego for the good of the whole works
Done well, mutual gains bargaining lets both sides look like heroes

27. Celebrate Your Success
It is ok to be happy with the deal
It is ok for them to be happy with the deal too
Set the stage for the next negotiation by parting on great terms

28. Relax and Have a Good Time!