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Problem Solving Negotiation
David Landis
Definition
A negotiation is a trade
- “I’ll do Y, if you’ll do X.”
Two Strategy Options
• Seeking Advantage
• Seeking Joint Gain
Advantage Seeking
• Good short term results
• Hard to exploit
• Relatively easy to do
Advantage Seeking
• Hard on relationships
• Misses joint gain
• Breeds reciprocity
Joint Gain Seeking
• Expands the pie
• Benefits grow over time
• Builds relationships
Joint Gain Seeking
• Risks exploitation
• Takes more time and preparation
• Requires skill to be effective
Taming the Advantage Seeker
• Align your incentives
• Cooperation on terms is reciprocal, not individual
• Lift the horizon
• Develop “walk away” alternative
Being Trustworthy
• Say what you mean, mean what you say
• Does not require full disclosure
• Worth its weight in gold
Trusting
• Operate independent of trust
• Reciprocal consequences
3 Characteristics of Negotiation
• Asymmetrical informationAsymmetrical information
• TensionTension
• Recurring DynamicsRecurring Dynamics
Recurring Pattern
• Preparation/Aspiration
Introduction
Information exchange
Offer
Counters
Stalemate/Settlement
• Post-negotiation
Tension
• Predictable at offer stage
• Predictable with counters
• Often grows as difference narrows
Asymmetrical Information
• Information affects aspiration
• Shared Information
• Discoverable information
• Secrets
• Leakage
Role #5 - Observer
• Don’t give away information or reactions – just watch.
• Watch for exaggerations, threats, offers and counter-offers.
• Notice questions particularly.
Role #1
Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”
Role #2
Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”
Role #3
Your mother says, “Go to the store and bring me an orange. Family is coming over tomorrow, I’m going to peel the orange and cut up the pulp for a fruit salad. Bring me an orange or you’ll be in trouble.”
Role #4
Your mother says, “Go to the store, bring me an orange. Family is coming over tomorrow. I’m going to peel the orange and grate the peel to flavor some orange bread I’m making. Bring me an orange or you’re in trouble.”
5 into 2
• No division of items
• No side deals
• Must divide all five between you
• Divide in 2 minutes or get nothing
• Item:
– 5 crisp $1,000 bills
5 into 2
• All the same rules
• Items:
– 2 tickets, great concert
– Designer jacket
– Glider flight over Grand Canyon
– Elegant fine French meal and wine for 2
– Martha Stewart cooks and cleans
Worker’s Comp Deal
Business Labor
Dr. Choice
Managed Care
Indexed Benefits
Safety Comm./ Inspectors
Worker’s Comp Deal
Business Labor
Dr. Choice Yes
Managed Care Yes
Indexed Benefits No
Safety Comm./ Inspectors
No
Worker’s Comp Deal
Business Labor
Dr. Choice Yes No
Managed Care Yes No
Indexed Benefits No Yes
Safety Comm./ Inspectors
No Yes
Worker’s Comp Deal
Business Labor
Dr. Choice Yes 1 No
Managed Care Yes 2 No
Indexed Benefits No 3 Yes
Safety Comm./ Inspectors
No 4 Yes
Worker’s Comp Deal
Business Labor
Dr. Choice Yes 1 No 3
Managed Care Yes 2 No 4
Indexed Benefits No 3 Yes 1
Safety Comm./ Inspectors
No 4 Yes 2
Shared Interests – valued alike
• An 800 phone number for workers’ rights.
• Better enforcement against companies without work comp.
• Informal dispute resolution method.
• Higher contribution from unsafe businesses.
Tools for Mutual Gain
• Interests before positions
• Priorities traded across differences
• Fair process norms
• Objective criteria
• Trust through authentic communication
Conflicting Interests
• Definition:– Valued alike, in opposition (money is the
most common
• Strategy– Use objective criteria to insure fair results
Complementary Interests
• Definition:– Elements valued differently
– Need at least two to link
• Strategy– discover, link, maximize
Shared Interests
• Definition:– Valued alike, good for both
• Strategy– Discover, maximize
– No need to link
Focus on Interests before Positions
• Interests = underlying motivations
– The answer to “why?”
• Positions = “yes or no” options
– The answer to “how much?”
• Focusing on interests induces problem solving because they are flexible and create satisfaction.
Invent Options for Mutual Gain
• Brainstorm method of advancing parties’ interests
• Invent first, then decide
• Link differences, priorities
• Maximize shared interests
Use Objective Criteria
• Learn marketplace
• Frame dispute as a joint search for fair standards
• Adjust standards for unique circumstances
• Open with an offer you can justify
Separate People from the Problem
Be unconditionally cooperative on process
– Good listening
– Fair characterizations
– Symbolic gestures
Separate Problem from the People
Be firm on fair outcomes
– Trade cooperation
– Reason, be open to reason
– Results need a fair, reasonable basis
Advantage Seeking comes from…
• High aspirationHigh aspiration
• Stingy asymmetrical concessionsStingy asymmetrical concessions
• Insistent counteroffersInsistent counteroffers
• Information manipulation & leveragingInformation manipulation & leveraging
The 7 Rules of Hard Bargaining
• Don’t make the first offer
• Don’t accept the first offer
• Don’t make the first concession
• Don’t concede the same size
The 7 Rules of Hard Bargaining
• Don’t concede at the same rate
• Ignore their deadlines, create your own
• Ask for something extra for agreement
Preferred Group Practices…
1. Identify and agree on process norms
7. Visual display of information, options, etc
2. Facilitation, hear everyone 8. Listening for threads of agreement
3. Create problem statement 9. Recasting solutions in search of broad consensus
4. Learn interests and priorities 10. Late commitments, broad consensus
5. Develop multiple options 11. Careful review of agreement
6. Link differences for joint gain 12. Celebrate the agreement
