1. Negotiating Your Way to Yes, No or Maybe
Joanne Kossuth, Franklin W Olin College of Engineering

2. Agenda Negotiation and Communication Negotiation Styles
Impact of Emotions
Culture and Context
Sharing Examples and Practical Approaches
Implementation

3. Negotiation Negotiation is a dialogue intended to resolve disputes
to produce an agreement upon courses of action
to bargain for individual or group advantage
to craft outcomes to satisfy various interests
It is the primary method of alternative dispute resolution.

4. Negotiation Negotiation involves three basic elements: Process;
Behavior;
Substance.

5. Process Process: How the parties negotiate; Context; Parties involved;
Tactics used;
Sequence and stages;
Anything missing?

6. Behavior Behavior involves: Relationships among the parties;
Communication;
Styles.

7. Substance What is negotiated: Price Terms Employment Process Timelines
Others?

8. Where?
Where do you NEGOTIATE?
Examples?

9. Do the Negotiation…. Exercise 1
Take one of the index cards at the table and write down four words that mean negotiation to you.
Pair up with one person at your table.
Discuss your reasons for your words.
More instructions to come.

10. Getting to Yes Four fundamental principles of negotiation:
1) separate the people from the problem;
2) focus on interests, not positions;
3) invent options for mutual gain; and
4) insist on objective criteria.
Principled negotiation: the interest-based approach to negotiation set out in the best-known conflict resolution book, Getting to Yes, first published in 1981 by Roger Fisher and William Ury.

11. Rule 1:People vs. Problem
People problems, Fisher, Ury and Patton (Getting to Yes) observe, tend to involve problems of perception, emotion, and communication.
Perceptions define the problem and the solution.
There is an "objective reality," that is interpreted differently by some.
Different understandings of the dispute means effective negotiation may be very difficult to achieve.
Separate people from the problem

12. 7 Steps See the situation from your opponent's perspective.
Don't deduce your opponent's intentions from your own fears.
Avoid blaming your opponent for the problem.
Discuss each other's perceptions.
Seek opportunities to act inconsistently with your opponent's misperceptions.
You do not have to agree with their perceptions of the situation. But it is important to understand what they think and feel, and why they think and feel as they do
It is common to assume that your opponent plans to do just what you fear they will do. This sort of suspicious attitude makes it difficult to accurately perceive your opponent's real intentions; whatever they do you will assume the worst.
. Blame, even if it is deserved, will only make your opponent defensive. Even worse, your opponent may attack you in response. Blame is generally counterproductive.
Explicit discussion of each side's perceptions will help both sides to better understand each other (see the first point). And discussion will help each side to avoid projecting their fears onto one another (see the third point). Also, such discussion may reveal shared perceptions. Acknowledging shared perceptions can strengthen the parties' relationship, and facilitate productive negotiations.
That is, try to disappoint your opponent's worst beliefs and expectations about you. Just as it is important for you to have an accurate perception of your opponent, it is also important for them to have an accurate perception of you. Disappointing your opponent's negative or inaccurate beliefs will help to change those beliefs.
If your opponent does not feel involved in the negotiation process, then they are unlikely to feel involved in its outcome. Conversely, if they feel that the process is in part their process, then they are more likely to accept its conclusion as their conclusion.
All the parties to a negotiation need to be able to reconcile the agreement with their principles and self-image. That is, they need to feel the final agreement does not compromise their integrity. Proposals which are consistent with your opponent's principles and which do not undermine their self-image are more likely to be accepted.

13. 7 Steps
Give your opponent a stake in the outcome by making sure they participate in the negotiation process.
Make your proposals consistent with the principles and self-image of your opponent.

14. Communication Problems
Consider communication problems to be "people problems" as well.
Disputants may not be talking to each other.
Grandstanding or playing to the crowd.
Parties are not listening to each other.
May be planning their own response, or listening to their own constituency.
When parties are both listening and talking to each other, misunderstandings and misinterpretations may occur.
Fisher, Ury et al

15. Rules 2 and 3: Negotiate about Interests
Negotiating about things that people really want and need, not what they say that want or need.
Rule 3:
By focusing on interests, disputing parties can more easily fulfill the third principle--invent options for mutual gain.
Often, these are not the same. People tend to take extreme positions that are designed to counter their opponents’ positions. If asked why they are taking that position, it often turns out that the underlying reasons--their true interests and needs--are actually compatible, not mutually exclusive.
This means negotiators should look for new solutions to the problem that will allow both sides to win, not just fight over the original positions which assume that for one side to win, the other side must lose

16. Rule 4 Insist on objective criteria for decisions.
If union and management are struggling over a contract, they can look to see what other similar companies have agreed to use as an outside objective criteria. If people are negotiating over the price of a car or a house, they can look at what similar houses or cars have sold for. This gives both sides more guidance as to what is "fair," and makes it hard to oppose offers in this range.

17. Rule 4A: BATNAs Know what their alternatives are. If no alternatives:
You might accept an agreement that is far worse than the one you might have gotten, or
Reject one that is far better than you might otherwise achieve.

18. Brainstorming
Establish common goals of what this "collaboration" would create.
Establish the rules of engagement.
Trust is key, and difficult to establish in many cultures.
Add diversity (gender, culture, extroverts, different work specialties, experts, outsiders) to the group.
Use storytelling to establish who you are and what point of view you are bringing.
The purpose of the exercise is to resolve differences in creative ways that work better for both parties.

19. Brainstorm ii Work in small groups. Add physical movement.
Work holistically and using visuals.
Sleep on it.
Doing this process over several sessions allows both sides to feel that progress is being made. (synthesize positively)
It is the process of creating something together, which creates bonding around a shared task and establishes new ways of working together.

20. Spectrum of Styles
Consideration for self
Considering yourself in negotiation is natural and reasonable -- after all, the main point is to get something that you want. In particular, if you care little about the other person or the relationship, then you will prioritize your needs actions above those of others.
Excessive consideration for self leads to a Machiavellian approach, where the ends justifies the means. Overt aggression, intimidation and coercive deception are considered normal and necessary and destroying the other person in some way may be a symbol of your victory over them.
Consideration for others
Consideration for others will depend on your values, which are often based on your beliefs about people. In particular, if you put yourself down (for example if you have low self-esteem) or you escalate the importance of others too highly, then you will think considerably more about the other person and prioritize their needs well above your own.
Excessive consideration for others leads to relentless concession, where you create a lose-win situation with you as the loser. You may even lose elements of the relationship as giving away too much can just end up in you losing respect. Some people like being the victim, but it is no way to conduct a negotiation.
A middle way
Between concession and competition lies balance, although in practice this may be more dynamic and variable than may be expected. Thus, what should be a highly collaborative negotiation may become a balanced negotiation, even with competitive elements. Shared values are commonly used, however, to protect the relationship and ensure fair play. At worst, some third person is called in to ensure a reasonable balance.

21. Competitive Approach
The basic assumption of competitive negotiation is that it is a 'zero sum game'.
The people involved believe that there is a fixed amount to be gained which both people desire, and if one person gains then the other person loses.
Win-lose

22. Competitive Approach
The relationship between the people is unimportant.
To show concern for the other is to show weakness that may be taken advantage of.
This can lead disingenuous interactions.
Does this correlate to any specific communication types?

23. Competitive Approach
Only consider win-lose negotiation if you don't need to have an ongoing relationship with the other party as, having lost, they are unlikely to want to work with you again.

24. Collaborative Approach
Does not mean being weak and giving in.
Seeks to gain the best possible solution.
Transparency and trust are key.
You may not give away all of your information but deceptive practices need to be curtailed if trust is to be gained.

25. Collaborative Approach
The need to achieve their immediate substantive goals while also keeping within social norms and personal values.
Understand the other person's natural negotiating style and the degree of movement into gray areas that they will expect or accept.
When you have identified the style boundaries in which they negotiate, then you can adapt your style to find an optimally effective solution.

26. Joint Approach
Seeks to convert individual wants into a single problem and to bring both parties together to work on solving this problem.
By converting individual positions and wants into separated problems, one can take a more objective and equitable position from which they can act in a more collaborative way.

27. Context: Global Diplomacy and tact
International negotiation takes very careful notice of local cultures and customs, and is conducted with remarkable diplomacy and tact.
It is easy also to offend people from other cultures without realizing what you are doing. Body Language, and particularly gestures, can have very different meaning.
International negotiation, done well, takes very careful notice of local cultures and customs, and is conducted with remarkable diplomacy and tact. Good international negotiators are very smooth and practiced in their art, and ensure they are extremely well informed not only about national cultures but also about the very individual perceptions of the people on the others side.

28. Global Rules
Ten new rules for global negotiations advocated by Hernandez and Graham:
Accept only creative outcomes.
Understand cultures, especially your own.
Don’t just adjust to cultural differences, exploit them.
Gather intelligence and reconnoiter the terrain.

29. Global Rules Design the information flow and process of meetings.
Invest in personal relationships.
Persuade with questions. Seek information and understanding.
Make no concessions until the end.
Use techniques of creativity
Continue creativity after negotiations.

30. Tactics Exercise Pick 2 of the tactics on the handout.
Think about how the tactics might be used.
Think about the pros and cons of the tactics.
Discuss with your table what types of negotiations
the tactics might be best associated with.
Report out to the group on one of the tactics, where it might be best used and the pros and cons.
Note: some negotiation may be necessary 

31. Advantage Pre-negotiation
Competitiveness and Equality
Simulated negotiations can be viewed as a kind of experimental economics wherein the values of each participating cultural group are roughly reflected in the economic outcomes.

32. Pre-negotiation
Howard Raiffa[4] and his colleagues recommend: …the teams should think and plan together informally and do some joint brainstorming, which can be thought of as “dialoguing” or “prenegotiating.”
Getting your ducks in a row

33. Pre-negotiation
Think through the following points before you start negotiating:
Goals
Trades
Alternatives
Relationships
Expected outcomes
The consequences
Power
Possible solutions
Goals: what do you want to get out of the negotiation? What do you think the other person wants?
Trades: What do you and the other person have that you can trade? What do you each have that the other wants? What are you each comfortable giving away?
Alternatives: if you don’t reach agreement with the other person, what alternatives do you have? Are these good or bad? How much does it matter if you do not reach agreement? Does failure to reach an agreement cut you out of future opportunities? And what alternatives might the other person have?
Relationships: what is the history of the relationship? Could or should this history impact the negotiation? Will there be any hidden issues that may influence the negotiation? How will you handle these?
Expected outcomes: what outcome will people be expecting from this negotiation? What has the outcome been in the past, and what precedents have been set?
The consequences: what are the consequences for you of winning or losing this negotiation? What are the consequences for the other person?
Power: who has what power in the relationship? Who controls resources? Who stands to lose the most if agreement isn’t reached? What power does the other person have to deliver what you hope for?
Possible solutions: based on all of the considerations, what possible compromises might there be?

34. Quick Review Negotiation: process, behavior, substance
Getting to Yes; people problems and communication problems
Negotiate about interests
Approaches: collaborative, competitive, joint
BATNAs
Global implications
Tactics and pre-negotiation
Now on to managing conflicts that arise