Negotiation · 2010-06-02 · Negotiation Objectives? at the beginning loosing track?...

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Negotiation Key Features

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By

for the

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS, FAO

© FAO 2009

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Jean BaliéEconomist, Agricultural Development Economics Division

NegotiationKey Features

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EASYPol is a multilingual repository of freely downloadable resources for policy making in agriculture, rural development and food security. The resources are the results of research and field work by policy experts at FAO. The site is maintained by FAO’s Policy Assistance Support Service, Policy and Programme Development Support Division, FAO.

Related resources:See the Training Path Policy Learning Programme 2009 for other related resources. Download theProgramme Summary for background information and the Overview of the Programme Modules and Sessions for a complete list of resources developed for the Policy Learning Programme 2009. FAO Policy Learning Website: http://www.fao.org/tc/tca/policy-learning/en/

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� Build relationship

� Deal with process

� Focus on outcome/ content

The 3 Basic Negotiation Domains

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Negotiation Objectives?at the beginning loosing track?

Communication?MessagesPerceptions

Deadlocks and failures?Tension Principal – AgentAgreementsTrust and Reputation

Key elements of the case

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On the objective : ! to win, maximise score! minimise risk! not let the other one win

On the process: ! should avoid or eliminate conflict/ manage! should dominate/ make a partner! power battle/ opportunity for sustainable solution! the fixed pie (= a competitive process)

Usual Assumptions

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Your perceptions are not always their intentions• Your ideas on their messages• Their ideas on your messages • Perception become distorted as conflict

intensifies

Question your prejudices• Preference for short or long term• Preference for content or relationship• Preferences on interests (compatibles?)• Difference in cultures, values, & background

Improving our perceptions

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How we build different stories ?

1. Available information (stimulus)

2. Our observations

3. Our interpretations

4. Our conclusions

5. Our behaviors

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Negotiators assets

What is difficult to Build and very easy to Loose?

Trust Reputation

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How much do I trust them ?How much should I disclose ?

How to create trust?• share information (feedback, needs, interests/positions)• communicate history • develop informal contacts - getting to know build reputation

(personal, structure)• shape perceptions and develop chemistry• use self-enforcing mechanisms (yes method, process)• .....

Building Trust, Investing in the Relationship

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The three main tensions

Cooperation/ Competition

Empathy / Assertiveness

Principal / Agent

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“a plan, method, or series of manoeuvres to obtain a specific goal or result”

What is a Strategy

http://dictionary.reference.com/browse/strategy

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Distributive/ competitive (positional)• I want it all

Integrative/ cooperative (interest-based)• I create value to satisfy everyone’s needs

Mix-strategies! I expand the pie, while ! Claiming an appropriate share

How to Define Our Strategy?

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Cooperation / Problem solving

Yielding/

Altruistic

Focus on own interests

Compromising

Avoiding Competition

Focu

s on

cou

nter

part�

s in

tere

sts

Negotiation Strategy

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• Know your BATNA(Best Alternative to a Negotiated Agreement)

• Build your BATNA prior to negotiation

• Consider ALL alternatives (outside the negotiation)

Preparation: Key to Effective Negotiations

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Deal or Walk Away?

Evaluate Potential Agreements

Make the Deal?

Prefer BATNA?

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Build a deal using the 7 elements

Alternative (BATNA) Agreement is better

Interests ≠ positions Satisfies mine, yours or theirs, those of others

Options Select the best possible option which does not leave value at the table

Criteria Accord is legitimate, equitable, reasonable

Commitments Realistic, operational, & planned

Communication Effective

Relationship Durable among parties

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Interest vs position

• what is it they say they want?

A party’s stated solution to the conflict – position

• what is it they really need? why?

A party’s needs, reasons that underlie their position in the conflict - interests

Integrative Negotiations

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Creating value – enlarging the pie

• Differences in interests:

! find communalities

! explore differences for complementarities

• Differences in judgment (assumptions, future):

! communicate information on needs, concerns

Integrative Negotiations

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Creating value – enlarging the pie

• Ways of adding value to what parties have achieved

• Ways that make, at least, one party better off without harming the others

Sharing value – cutting the pie

A candle loses none of its light by lighting another candle

Integrative Negotiations