1. Negotiating Effectively
Shilu Pradhan
Anita Poudel

2. Conflict Process

3. Managing Conflict
Organizational Conflict can escalate rapidly and sour an organizational culture
Managing conflict must be a priority
Organization must balance the need to have "good" conflict without letting it escalate into "bad" conflict

4. Conflict: Resolution modes

5. Building negotiation leadership
Awareness
Framework
Action skills

6. A Story of 17 Camels & 3 Sons

7. Story of 17 Camels & 3 Sons
Once there was a man who owned seventeen camels. One day, he called his three sons and said, “I am too old to look after my camels. So I shall divide my seventeen camels amongst the three of you. My eldest son will get half the camels, my second son will get 1/3rd of 17 camels & my youngest son will get 1/9th of 17 camels.

8. Story of 17 Camels & 3 Sons
As it is not possible to divide 17 into half, or 17 by 3 or 17 by 9, the sons started to fight with each other. How will the sons divide the camels?
MORAL of the Story : The attitude of negotiation is to find the 18th camel i.e. the common ground. In order to reach a solution, the first step is to believe that there is a solution.

9. Do you agree on it? Your preparation ended up with good result
You felt powerful because you were well informed
You had tried thinking in a different way in a given situation and you succeeded
You were obliged to set rules and standards
You were confident because you had a “Plan B”

10. With whom do you negotiate in your daily life?

11. Definition of Negotiation
“It is the process of combining conflicting positions into a common position, under the decision rule of unanimity”
Henry Kissinger

12. Negotiation: Elements
Communication
Relationship
Interest
Options
Legitimacy
Commitment
BATNA

13. Using the Elements Communication Relationship Interests Options
Legitimacy
If “Yes”
If “No”
Alternatives
Commitment
Copyright © 2008 CMPartners. All rights re

14. Position Versus Interests

15. “Mom, I absolutely want this orange!”
The Orange Example
A mother of two children has one orange left in her fruit bowl.
Both children are implicitly claiming the orange for themselves:
“Mom, I absolutely want this orange!”
Also you might ask: Why am I annoying you with those oranges?
In many books about the Harvard Concept, an orange is used in a simple but evident example to illustrate the Harvard Concept.
As I said before, the method behind the Havard Concept is to negotiate in an appropriate way guided by interests. It tries to solve a problem into a win-win situation.
So let’s see what is the problem with this orange:

16. What should the mother do? Should she flip a coin?
The mother, without any doubt the leader of her subordinates the children, has to decide what to do, she has to do the right thing.
What do you think the mother should do?
Who prefers tossing a coin, HANDS UP?
Who would cut the orange into two pieces?
Who would let the strongest of the children prevail?
Who would suggest a different solution to the problem?
What should the mother do?
Should she flip a coin?
Should she cut the orange into two equal pieces?
Should she let her children fight over the orange?

17. “Why do each of you absolutely want this orange?”
Luckily the mother is an alumni of this workshop program, is a smart and responsible leader, and is doing the right thing!
She is asking:
“Why do each of you absolutely want this orange?”
“Why do each of you absolutely want this orange?”

18. Son:
Daughter:
And here is what her children would like to do:
The daughter would like to bake a cake. Therefore she only needs the skin of the orange to add some flavor.
The son is thirsty and would like to squeeze the orange for a glass of fresh juice. To do so he does not need the skin of the orange.
After clarifying the needs of both children, the answer to the problem with the orange is suddenly very easy. Both interests can be taken into account: The daughter gets her orange skin, the son gets the peeled orange. Both are happy, we have a win-win situation!
If the mother would have opted for the quick decision to compromise and simply cut the orange in half, both children would have left the kitchen unhappy, we would have had a lose-lose situation.
The daughter would like to bake a cake. Therefore she only needs the skin of the orange to add some flavor.
The son is thirsty and would like to squeeze the orange for a glass of fresh juice. To do so he does not need the skin of the orange.

19. Project Manager’s position: I want a one-month extension to finish the project.
Project Manager’s interest: Before facing unforeseen obstacles in completing this project on time, she approved the lead programmer’s vacation and wants to demonstrate to her team that she fights for their needs and keeps her word.    
Boss’s position: The original deadline stands and you cannot have a one-month extension.
Boss’s interest: Get the project done on time.    
Ways to address interests: 1) Boss gives Project Manager discretion to change team members assigned to projects, and extends deadline on another project so that team members can be brought over during the lead programmer’s absence. 2) Approve budget for overtime compensation or additional support.    
Result: Project is done on time, without an extension, and the Project Manager keeps her word on approved vacations.

20. Options The full spectrum of possible agreements;
Brainstorm more options by using your creativity skills
Generate a variety of possibilities before deciding what to do
Invent first, evaluate later

21. Obstacles that Inhibit the Inventing of Multiple Options
premature judgment;
searching for the single answer;
the assumption of a fixed pie; and
thinking that “solving their problem is their problem”.

22. Legitimacy Market value Precedent Scientific judgment
Professional standards
Efficiency
What a court would decide
Moral standards
Tradition

23. Legitimacy It creates the sense of fairness among the parties
It also gives the feelings of ownership;
ownership leading to commitment;
commitment leading to success;
success leading to motivation for next time business and
the cycle goes on.

24. Motorcycle example I want to buy a used motorcycle.
(I have certain reasons or needs for doing so. Those reasons are my interests)

25. Interests Need for transportation
Transportation that is safe and reliable
Easy to park
Not too expensive, etc.

26. (Here the possible solutions are our options)
Now I went to used motorcycle shop to talk for possible solution to buy the motorcycle because I do not have the money today.
(Here the possible solutions are our options)

27. Options
Lease (or rent) the motorcycle until I have sufficient funds to purchase
Take out a loan from the motorcycle shop and pay back interest.
Take a job at the motorcycle shop and pay off motorcycle with the hours/time of work.

28. (Now this is Legitimacy)
Finally, I want to know what a fair price is for the motorcycle or say benchmark or standard market rate
(Now this is Legitimacy)

29. Legitimacy
Another used motorcycle shop selling the same used motorcycle with similar mileage.
Website showing comparative prices for motorcycles

30. Communication Listen actively and acknowledge what is being said
Negotiators are not really listening to the other side. They are thinking about their next argument.
Listening is the cheapest concession one can make in negotiation
Show empathy

31. A-B SELL

32. Communication
WHEN WE ARE IN THE CIRCLE OF VALUE, OUR INQUIRY SKILLS BECOME VERY IMPORTANT THEN THAT OF OUR ADVOCACY.

33. Relationship Separate the people from the problem
Pause your behaviour before reacting
Try to maintain a longer term relationship with the other party

34. Commitment
It is making sure the agreement reached is realistic and that both sides can keep their end
It’s easy for people to agree on a common way forward, but it is the commitment that powers everyone to do whatever is necessary to make it happen.
In Negotiation, focus on gaining commitment, not just agreement.

35. BATNA-Best Alternative to a Negotiated Agreement
“It is the standard against which any proposed agreement should be measured.”
- Roger Fisher and William Ury
It is a walk away alternative
The better your BATNA, the greater your power.
Knowing your BATNA gives you additional confidence in the negotiating process.

36. BATNA It tells you when to accept and when to reject the agreement
- When a proposal is better than your BATNA, accept it
- When a proposal is worse than your BATNA, reject it

37. BATNA
Negotiating without determining your BATNA is negotiating with your eyes closed.
Successful negotiation is satisfying your interest better than you could by exercising your BATNA.
It means always have other people to talk with & to do business with (alternative)

38. Strategic Inquiry Guidelines
Inquiry into INTERESTS
What are you trying to accomplish in these negotiations?
What are your key motivations in these negotiations?
What are you concerned about?
Do you feel we “must” do a deal here?
Would you prefer to work something out jointly ?

39. Strategic Inquiry Guidelines
Inquiry into OPTIONS
What would be wrong with...?
What other ideas might we brainstorm on this problem?
If we work together, how might we make this better for both of us?
Do you have the authority to make a decision on this?

40. Strategic Inquiry Guidelines
Inquiry into LEGITIMACY
Why do you think we ought to do that?
What benchmarks do you see in our field of work that make this appropriate?
If you were I, how would you justify that to others?

41. Negotiation: Tools
Going into the balcony:- It is the place of self control, place of calm, & place of perspective
Listening & Respect :- The cheapest concession that one can make in a negotiation is give someone basic respect
Power of reframing:- It is about moving from positions to interest.
Power of bridging :- It is about making the other side easier to make the decisions in our favor

42. Getting to YES Separate the people from the problem
Focus on interest not on position
Invent options together for mutual gains
Figure out the objective criteria
Know your BATNA