1. Negotiating Effectively

2. Presentation Outline Understanding negotiation: concepts & types
Using seven-element framework
Case study

3. What negotiation is not?
To respect the order of boss and act accordingly
Making a decision between parties using arbitration where the parties are legally bound to follow the arbitrator’s decision
Negotiation is not a competitive sport (we are contesting but not competing to opposition with the aim of crushing them)
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4. What is negotiation?
Negotiation is a process of two or more parties working together to arrive at mutually acceptable resolution of one or more issues
It deals with the conflicting situation of two or more conflicting parties to settle down the issue
Negotiation refers to a process of seeking to influence others
It is a ‘give-and-take’ bargaining process
Opportunity to solve problem in collaborative way
Negotiation occurs everyday.

5. Types of negotiation Broadly speaking, two approaches in negotiation;
Confrontational: those using confrontational approach see the process as a zero-sum game in which a limited number of bargaining chips are to be won (they want to be the winners)
Cooperative (interest-based negotiation): An approach to negotiation where the parties focus on their individual interests and the interests of the other parties to find a common ground for building a mutually acceptable agreement.
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6. Principles of negotiation
Focus on interests not positions
I’m good, you’re good
My way or the highway (not good)
Create options for mutual gain
Separate people from problem
Be firm using objective criteria

7. A Story of 17 Camels & 3 Sons

8. Story of 17 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. What type of negotiator you are!
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10. S.N
STATEMENTS 1 2 3 4 5
I fight hard for what I want
I like to find shared needs and make them focus of negotiations
I like to avoid lengthy negotiations by splitting the difference
I prefer a friendly encounter to an unpleasant conflict
If I can stay out of a negotiation, I do 6
When I have the power, I use it to insure that my needs are met first 7
I like to turn a conflict into a cooperative effort of problem-solving 8
I often propose a middle ground that is obviously fair to both sides 9
My priority is to maintain a good long-term relationship 10
I don't like to confront others with my complaints and concerns 11
I don't mind a good argument if it may get me what I want 12
I prefer to put my cards on the table to encourage the other party to share their information too

11. 13
I am happy to go half way as long as the other party does too 14
I am strongly influenced by what the other party expects of me 15
I do not feel confident that I can get what I want by negotiating 16
I try not to let the other party know too much about my needs and position 17
I try to find new ways to see the problem in order to find better solutions 18
I do not like to waste time playing games that a simple compromise is possible 19
I may not stick up for myself as much as I should 20
When I think someone has an issue with me I try to stay out of their way 21
I find a good bluff or threat can work wonders in negotiations. 22
I expect honesty & trust from others in negotiation and they find me very trustworthy 23
The fairest thing in my view is to split the difference in a reasonable way 24
Some people might say I give easy 25
In many cases there is little to be gained by negotiating, so you might as well try to avoid it

12. Scoring Sum of scoring: 1, 6, 11, 16, and 21 = ------
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13. Scoring and styles
Sum of scoring: 1, 6, 11, 16, and 21 = ---- Compete or defeat (I win-you lose) Sum of scoring: 2, 7, 12, 17, and 22 = ---- Collaborate or cooperate (I win-you win) Sum of scoring: 3, 8, 13, 18, and 23 = ---- Compromise (I win/lose some-you win/lose some) Sum of scoring: 4, 9, 14, 19, and 24 = ---- Accommodate (I lose-you win) Sum of scoring: 5, 10, 15, 20, and 25 = ---- Avoid or withdraw (I lose-you lose)
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14. Negotiation: Elements
Communication
Relationship
Interest
Options
Legitimacy
Commitment
BATNA

15. Seven element framework
Communication
Relationship
Interests
Options
Legitimacy
Commitment
Alternatives
If “No”
If “Yes”
Enabling value
Creating value
Claiming value
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16. Interests
Interests are the problems hopes, fears, aspirations, concerns, goals, etc. of each party.
Positional negotiations limit optimal solutions because parties rarely explore a broad range of potential solutions, or options.
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17. Position versus interests

18. Options The full spectrum of possible agreements;
The possible solutions which may satisfy the interests of both the parties are called 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

19. 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!”

20. Cont… What you do if you were the mother? Flip a coin
Cut the orange into two equal pieces
Let them children fight over the orange

21. Cont…
Why do each of you absolutely want this orange? ?

22. Cont…
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.
Daughter
Son

23. Possible Options For Orange Story
To cut the orange in half.
One to take all the fruit, and for the other to take all the peel.
To take the orange, squeeze a glass of orange juice, sell it, and then go buy two more oranges

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

25. A-B SELL

26. Communication:
Two main kinds of verbal communication.
 Advocacy or making statements. When we advocate, we give information such as facts, our opinions, conclusions, etc.
Inquiry or asking questions. When we inquire, we seek information for the purpose of learning.
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27. Relationship
The overall pattern of interaction among the other parties within and outside the negotiation.
It is very important in negotiation and interactions should improve, not damage our relationships
Do not threaten relation at the cost of short term gain. It may yield poorer results over the long-term.
Try to deal separately with the relationship between the parties and the substance issues
Rather reacting to positions, probe for their underlying needs
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28. 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.

29. 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.

30. Case Study

31. 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 ?

32. 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?

33. 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?

34. 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”