negotiation skills (fundamentals of more effective ......negotiation skills vendor: scarf for sale...

Negotiation Skills (Fundamentals of More Effective Negotiations and Dispute Resolution)

Daniel G. Gallagher Ph.D. James Madison University

gallagdg@jmu.edu

Negotiation Skills

Background

How Many People Have Experience as a Negotiator

Are You Good at itCould You Get Better at Negotiating

Negotiation Skills

What is Good? Feedback? Could we have done better?

Vlaardingen NL - “The Wednesday Market”

Vendor: Scarf For Sale 12 EUROS I negotiated a deal for 10 EUROS

Negotiation Skills

Vendor: Scarf For Sale 12 EUROS I negotiated a deal for 10 EUROS

My wife came home – 2nd Scarf 8 EUROS Same Vendor – Yes!

Why?

Negotiation Skills

Session Objectives

Identify and Discuss Some of the Essentials of More Effective Negotiations (“The Real Important Ones”)

Consider Application to Your Professional and Personal Lives.

Negotiation Skills

Importance of Context (1)

Party A Party B You / Self SelfYou / Agent AgentYou / Team or Unit Mbr Team / UnitYou / Manager Subordinate

SupervisorOthers ???

On Occasion: Add In Party C, Party D, Party Z

Negotiation Skills

Importance of Context (1)

Party A Party B You / Self SelfYou / Agent AgentYou / Team or Unit Mbr Team / UnitYou / Manager Subordinate

SupervisorOthers ???

On Occasion: Add In Party C, Party D, Party Z

Negotiation Skills

Importance of Context (2)Importance of The Relationship

One-Time Deal?or

Ongoing Relationship?

Importance of The Issue Implications for Negotiation Approach & Style?

Negotiation Skills

Negotiation Fundamentals(For More Effective Negotiations)

Have a Clear Goal or Objective!!!

TARGET or TARGET PRICE (TP)

Or Ideal Outcome (non-$)

Negotiation Skills

Example: A Seller

Low$ High$TP

TP: ReasonableAttainable“Aim High” (Don’t Start Short)

Negotiation Skills

Example: A Seller –Also Consider at “Resistance Point (RP)

Low HighRP TP

Settlement Range (Self) + VALUE = “Metric” For Evaluating Your Progress

Negotiation Skills

NEXT: Negotiation Fundamentals(For More Effective Negotiations)

Importance of “INFORMATION”“Knowledge Is Power” (Sir Francis Bacon)

Setting Target and Resistance PointsBuilding Your Arguments and Counter-Arguments

Negotiation Skills

Negotiation – “Convincing Other Party”“Evidence to Support Position”

e.g. Buy A Housee.g. Ask For Pay Increase e.g. Increase Staff Sizee.g. Finalize Terms of Reporte.g. Settling Disputes Between Co-workers

Negotiation Skills

Information (Examples)Market ValuesPast PracticeLegal Requirements / GuidelinesIndustry Standards (Objective)Codes of Conduct????Personal: Motivation / Reputation / Style ?

Negotiation Skills

INFORMATION Value of Information

SWORD & SHIELD

Proactive & Defensive

Negotiation Skills

Party A Party B

Common Information X X

Shared ? ?

Kept To Self ? ?

Negotiation Skills

NEXT: Negotiation Fundamentals

Bargaining Power

Information

+ TIME

Negotiation Skills

Bargaining Power

TIMEAvoid The Rush / Urgency

Paris Peace TalksUK Exit from EU / Deadlines Middle East: “You Have the Watches, We Have the Time”

Is it Real?

Overheard

“It’s Thursday, I want to Be Out Of Tokyo and Home By Friday!”

Tokyo Hilton - Breakfast

Negotiation Skills

“It’s Thursday, I Want to Be Out Of Tokyo and Home By Friday!”

“Now they (Japanese Co.) want us to go to Osaka.”

“ With anything from 65 to 70 we could have a Deal.”

Negotiation Skills

“Getting to Yes”

Fisher and Ury (& Patton)Harvard University Project on Negotiations

“Getting to Yes”

Fundamental Components:1. Interests2. Options3. Standards4. People5. Alternatives6. Closure

HAVE A “BATNA”

Negotiation Skills

B. A. T. N. A

BestAlternativeTo aNegotiated Agreement

Reduce Urgency

“Getting to Yes”

Getting To Yes: Negotiating Agreement Without Giving In

Roger Fisher, William Ury, (& Bruce Patton)

Orientation To Negotiation Process?Win- LoseWin – Win

Negotiation Skills

Distributive Integrative Bargaining

“Getting to Yes”

Fundamental Components:1. Interests2. Options3. Standards4. People5. Alternatives6. Closure

Negotiation Skills

Fundamental Distinction

“Interests” v. “Positions”

Negotiation Skills

PositionsThings you say you

want

Demands

Things you say youwill or will not do

InterestsUnderlying Motivations

Needs and ConcernsFears and Aspirations

Negotiation Skills

Interest Position

I Want a 10% Salary Increase!

I Want to Change Starting time to 9:30

Negotiation Skills

“We need the ability to extend all shifts by one half-hour to meet customer demand.”

Or

“We need to schedule in a manner which allows us to better meet customer demand.”

But Most Importantly ………..

Negotiation Skills

Discovering Interests

Look behind positions for the underlying interests

Put yourself in the other side’s shoes

Ask “Why?”

Ask “Why Not?” What would be wrong with . . . ?

Negotiation Skills

Create - Options:

Identification of “Possible Agreements” or “Pieces” of an Agreement.

What “Mediators” Do!!!

Negotiation Skills

Process Focus

Attention:

Separating the Process of “Deciding” From the Process of “Inventing” Options

The Role and Process of “Brainstorming”

Negotiation Skills

No Criticism

No Commitment

No Evaluation

“Just Invent”

Two Ways To Talk About an Issue

Talk at the Other Side

Focus on the Past

Talk About Who is Right

Blame Them for the Problem

Score Points

Talk with Them

Focus on the Future

Talk About What is to be Done

Tackle the Problem Jointly

Clarify Interests, Invent Options

Negotiation Skills

CommunicationsListen Actively ( ½ or more of Bargaining is Listening) ? !! ?

Paraphrase their words to show you understand(within reason).

General Negotiation – Conflict Styles

“Never Get Angry. Never Make a Threat. Reason With People.”

Don CorleoneThe Godfather

General Negotiation – Conflict Styles

Empathy

SoftAssertiveness

Hard Line

Hard Line Hard

General Negotiation – Conflict Styles

Con

cern

ForR

elat

ions

hip

Concern For Own InterestAssertiveUnassertive

Coo

pera

tive

Unc

oope

rativ

eAccommodate/Yield

Compromise

Collaborate

AvoidanceCompete/Dominate

(Contending)

General Negotiation – Conflict Styles

Con

cern

For

Rel

atio

nshi

p

Concern For Own InterestAssertiveUnassertive

Coo

pera

tive

Unc

oope

rativ

eAccommodate/Yield

Compromise

Collaborate

AvoidanceCompete/Dominate

(Contending)

Negotiation / Conflict ResolutionStyle Profile

Competitive Collaborative Compromising Avoiding Accommodating

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CPT COL COM AVD ACC

EXECSSMgr2010

Negotiation / Conflict ResolutionStyle Profile ROMANIAN COLLEGE

STUDENTS

Style AVGScore

Competitive 8.3 Collaborative 5.2 Compromising 6.7 Avoiding 5.7 Accommodating 4.1

Selection of a Style

Styles Should Be “Situational”

Recall – “CONTEXT”

“One Size Does Not Fit All”

Be able to move among styles.Expand your “Bandwidth.”

“Competing” and “Collaboration” – Hardest Tactics

Selection of a Style(s)

What’s the Other Party’s Style?

Watch and Avoid Serious Mismatches

You Them

Avoiding Competitive

Collaborating Competitive

Questions

Negotiations Skills