1. University of Alabama at Birmingham
Negotiation 101
Lisa M. Walke, MD
Yale University
Cynthia J. Brown, MD, MSPH
University of Alabama at Birmingham

2. Objectives
Recognize negotiation is a key component of most personal and professional interactions.
Knowledge of the 5 most common negotiation styles.
Understand personal negotiation styles, how to utilize them effectively, and benefits of mastering more than one style.
Practice negotiation

3. Defining Negotiation
An interactive communication process that may take place whenever you want something from someone else or they want something from you. - Teenager wants the car keys - Couple deciding where to go out to dinner - Family deciding where to go for vacation - You want to change your percent effort

4. Who appears more confident?

5. Importance of knowing your bargaining style
“Everyone has his or her own negotiating style, and the worst thing you can do is to adopt a negotiating technique that does not feel comfortable because credibility, based on an evident sincerity, is the most important single asset of a good negotiator.”
G. Richard Shell, JD

6. Bargaining Styles Assessment Tool
Take 5 minutes to complete the bargaining styles assessment tool
Select 1 statement per pair that most reflects your position, follow your 1st impression
Record the letter (A, B, C, D or E) in the box to the right of each pair of statements
Tally all of your As, Bs, etc. in the score sheet at the bottom of the 2nd page

7. Assessment Tool Scoring
A = Competing
B = Collaborating
C = Compromising
D = Avoiding
E = Accommodating
Strong inclination to use that type of behavior when negotiating
Score ≥ 7 (Competing, Avoiding, Accommodating)
Score ≥ 8 (Collaborating, Compromising)
Weak Inclination to use that type of behavior
Score ≤ 5 (Compromising)
Score ≤ 4 (Collaborating)
Score ≤ 3 (Competing, Avoiding, Accommodating)

8. Bargaining Styles Classification Also Known As Description Competing
Sportsman
Loves negotiating; Great at positioning & gaining leverage
Collaborating
Problem Solver
Generates creative solutions; Great for complex issues, if time is flexible
Compromising
Closer
Seeks quick, fair resolutions; Great for straightforward issues or if time is limited
Avoiding
Diplomat
Tactful; Peacekeeper; Prefers harmony
Accommodating
Relationship Manager
Strives to maintain relationships; Seeks to be helpful

9. Balance Concerns
Perceived conflict over stakes & importance of relationship b/w parties both high
Ex: Acquisition, Parent-Child relationship
Best Strategies
Collaboration
Compromise

10. Relationships
Perceived conflict over stakes is low but perceived importance of relationship b/w parties is high
Ex: Job offer, Research or Clinic team
Best Strategies
Accommodation
Collaboration
Compromise

11. Transactions
Perceived conflict over stakes is high but perceived importance of relationship b/w parties is low
Ex: House Sale, Political Election
Best Strategies
Competition
Collaboration
Compromise

12. Implied Coordination
Perceived conflict over stakes & perceived importance of relationship b/w parties are both low
Ex: Airplane seating
Best Strategies
Avoidance
Accommodation
Compromise

13. Four Stages of Negotiation
Preparation
Information Exchange
Bargaining
Commitment

14. Four Stages of Negotiation
Preparation
Assess situation, transaction or relationship
Adjust style to situation
Take other side’s point of view
Determine goals
Information Exchange
Bargaining
Commitment

15. Four Stages of Negotiation
Preparation
Information Exchange
Build rapport
Uncover underlying interests, issues and perceptions
Test expectations
Bargaining
Commitment

16. Four Stages of Negotiation
Preparation
Information Exchange
Bargaining
Opening
Making concessions
Commitment

17. Four Stages of Negotiation
Preparation
Information Exchange
Bargaining
Commitment
Do both sides have something to lose if they break their promise?

18. BATNAs and ZOPAs Best Alternative to a Negotiated Agreement (BATNA)
Determines course of action if agreement not reached within certain time frame.
prohibits negotiator from accepting unfavorable agreement as it provides better option outside the negotiation.
permits greater flexibility /allows room for innovation.
If have strong BATNA, have more power as possess attractive alternative if acceptable agreement is not achieved.
Zone of Possible Agreement (ZOPA)
Agreement acceptable to both parties

19. Leverage
Whichever party thinks have least to lose from ‘no deal’ has most leverage and vice versa.
Leverage based on perception as much as reality.
Leverage is comparative across the table.
Do not compare your situation with ideal or worst-case scenario; Compare with theirs.
Leverage is dynamic, can change in an instant as perceptions, conditions and players change.

20. Time to Negotiate!
“There is no substitute for practice in negotiation. No one ever got better at public speaking just by reading a book and the same is true for bargaining. You must learn from doing.”
G. Richard Shell, JD
Select a partner; decide who will be A & who will be B
On the table are 2 piles of envelopes, select the envelope with your letter
Take 2 minutes to read your instruction sheet
You have 8 minutes to complete the exercise

21. Let’s debrief What price did you agree upon for the car?
Did the buyer/seller disclose their true motivation for this purchase/sale?
What bargaining styles did each of you use?
Which style was most effective?
What aspect of this negotiations exercise made the greatest impression upon you?

22. Summary Bargaining Styles Four Stages of Negotiation A = Competing
B = Collaborating
C = Compromising
D = Avoiding
E = Accommodating
Four Stages of Negotiation
Preparation
Information Exchange
Bargaining
Commitment