1. Negotiation Fundamentals
Kem Lowry
Program on Conflict Resolution
University of Hawaii at Manoa

2. Objectives for this Session
Contrast conventional negotiation techniques with the interest-based approach to negotiation
Examine key concepts including: positions, interests, principles, BATNA
Practice negotiation skills
Examine the role of culture in negotiations

3. Conflict Inventory
Who has experienced a conflict (problem, issue, scrape, misunderstanding, etc) in the last month?
How did you respond? What was your “conflict strategy?”

4. Conflict Resolution Options
Avoidance
Capitulation
Suppression
Accommodation
Problem solving (e.g. conciliation, negotiation, mediation, facilitation)
Escalation
Confrontation

5. Problem Solving Options
Conciliation: neutral 3rd party assists disputants by acting as go-between
Arbitration: neutral 3rd party acts as judge
Negotiation: parties confer to arrive at mutually satisfactory solution
Mediation: neutral 3rd party assists parties in their own negotiations
Facilitation: neutral 3rd party assists in group discussions

6. Everyone Negotiates
Buying a car, house or other object for which the price may not be fixed
Establishing a salary, workplace tasks, office conditions, etc.
Organizing team tasks or priorities
Allocating household tasks
Deciding how to spend a free evening

7. Conventional Negotiations
Focus on winning
Assert positions/personal preferences
Concede stubbornly
Seek compromises based on arbitrary divisions (e.g. split the difference)
Engage in threats, bluffs or other negotiation tactics

8. Conventional Negotiation Tactics
Good cop/bad cop
Highball/lowball
Bluff
Threats
Nibble
Appeals to ‘reason’

9. An Alternative: Interest-Based Negotiations*
Separate the people from the problem
Focus on interests, not positions
Invent options for mutual gain
Insist on objective criteria
*Roger Fisher & William Ury Getting to Yes. 2nd ed. New York: Penguin.

10. Principle 1: Separate the People from the Problem
Disentangle the people from the problem
Deal with the people problem: acknowledge perceptions, emotions
Listen actively
Speak to be understood
Speak about yourself, not them

11. Principle 2: Focus on Interests, Not Positions
Positions: What disputants say they want in a negotiation: a particular price, job, work schedule, change in someone else’s behavior, revised contract provision, etc.
Interests: Underlying desires or concerns that motivate people in particular situations (May sometimes be the same as their positions!)

12. Focusing on Interests Problem: barking dog
My interpretation: my neighbor doesn’t care about my needs
My position: quiet the dog
My interest: I need sleep
Issue: how to control the barking

13. Focusing on Interests Problem: reefs are dying
My interpretation: inadequately controlled construction in near-shore areas results in runoff that smothers reefs.
My position: stop or severely limit land disturbance
Interest: reducing the rate of coral loss
Issue: What’s the real source of reef degradation? How can runoff be reduced/ controlled?

14. Types of Interests
Substantive: How people describe the issue: barking dogs, cars blocking driveway, dying reefs
Relational: How people they should be treated or acknowledged.
Procedural: How people think issues should be addressed (e.g. courts, ho`oponopono)

15. Principle 3: Invent Options for Mutual Gain
Focus on the variety of ways issues/ interests (yours/theirs) might be addressed?
Avoid assuming there’s a single solution
Separate brainstorming from evaluation of options
Don’t assume zero-sum conditions
Think creatively

16. Principle 4: Insist on Objective Criteria
Fair standards: market value, precedent, blue book value, professional standards, “best practice,” industry average, equal treatment, etc.
Fair procedures: e.g. last best offers, taking turns, drawing lots

17. When is the Interest-Based Approach Appropriate?
Other party is willing to problem-solve
There is sufficient trust and information—or a willingness to develop them
On-going relationships are important
Commitment to carry out the agreement is needed
Quality agreement is more important than an expedient one

18. When is the Interest-Based Approach Unnecessary?
On-going relationships are not important
Negotiation is viewed as strictly distributive (e.g. buying a car)
Lack of commitment to problem-solving on the part of one or more parties
One or more parties see the negotiation as involving fundamental rights (but some contention about this)

19. Prepping for Your Negotiation
What are our interests? What are theirs? How can we find out?
What’s our BATNA? What’s theirs?
What’s our WATNA? Theirs?
What do we know about their circumstances that might affect the negotiations?
What’s their negotiation style? Etc.

20. A BATNA

21. Negotiating Steps Develop ground rules Jointly identify issues
Explore interests
Develop objective standards
Brainstorm options
Evaluate options using standards
Try to reach consensus decision

22. Adapting General Principles to Specific Negotiations
Pacing: fast or slow?
Formality: high or low?
Oral or written agreements: which are more binding and inclusive?
Bluntness of communication: direct or indirect?
Time-frame: short or long term?
Who negotiates: Equals or most competent?

23. Sources of Negotiation Problems
Perceptual errors
Unrealistic expectations about likely outcomes
Unwillingness or inability to engage in real negotiations
Perceived non-negotiability of some disputes