interest based negotiation
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Interest Based Negotiation. Principled Negotiation for Moving Forward. Overview. Why interest-based negotiation (IBN)? Five principles of IBN Separate the people and the problem Focus on interests Create options for mutual gain Know your alternatives (BATNA) Determine objective criteria - PowerPoint PPT PresentationTRANSCRIPT
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04/22/23
Interest Based Negotiation
Principled Negotiation for Moving Forward
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OverviewWhy interest-based negotiation (IBN)?Five principles of IBN
Separate the people and the problemFocus on interestsCreate options for mutual gainKnow your alternatives (BATNA)Determine objective criteria
Applying IBN
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Why is this Important?Conflict is everywhereIncreasing knowledge and skills in
negotiation can save time and moneyTeams who work well together are more
productive
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ConflictHappens in the interaction of
interdependent peopleWho perceive incompatible goalsAnd experience interference from the
other in reaching those goals
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Conflict is like chaosIt is complex – there are many parts and they
way they evolve and impact each other is unpredictable
Conflict is dynamic – change is the only constantPeople can feel out of control in conflict
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Understanding ConflictThere is an order to conflict – the way
that we identify it and respond to itAs we understand conflict better, we
begin to see patterns emergeThe more we understand individuals in
conflict, the better we are able to respond thoughtfully
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Understanding People in Conflict
Thomas-Killman Conflict Mode InstrumentCompete
AccommodateAvoid
CompromiseCollaborate
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Compete
Accommodate
Avoid
Compromise
Collaborate
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04/22/23
Interest-Based Negotiation
A more effective and more lasting way to resolve conflict
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Separate the people from the problem
Focus on interests not positions
Create options for mutual gain
Develop your BATNA
Define objective criteria
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Separate the people from the problem
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Separating People and Problem
Negotiators have the ability to separate the substantive problem and their relationship with others
People & problems get entangled by:PerceptionsAssumptionsEmotionsCommunication
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Perceptions and Assumptions
Place yourself in their shoesDo not interpret their motives by your fearsDiscuss the perceptions
I
You It
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EmotionsRecognize they exist and they
contribute to conflictAcknowledge them and allow for time
to express– listening to emotion gives you clues about what is important to others
Do not react to them
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CommunicationListen to understandFrame your messageConsider delivery mechanism
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Separate the people from the problem
Focus on interests not positions
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PositionsPositions are “what you want” They are your pre-determined goalsThey are often based on power and/or
rightsThe goal in a positional negotiation is to
persuadeThey are win-lose
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InterestsIf positions are “what you want”, interests are
”why do you want them?”They are your hopes, fears, concerns and
prioritiesThere are three types
SubstantiveProceduralPsychological
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Focus on InterestsPositionsSolutions to problemsSpecific & definiteBasis for argumentRequire justificationEnd discussion
InterestsWhy a particular
solution is preferredReasons underlying
positionsRequire explanation
not justificationStart discussion
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Why Focus on Interests?Interests define the problemInterests allow for a variety of possible solutionsInterests allow for a solution that may not
involve compromiseInterests help us evaluate a possible solutionFocusing on interests provides increased
understanding between people in conflict
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Position Position
Interests
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Separate the people from the problem
Focus on interests not positions
Create options for mutual gain
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Interests Lead to OptionsExamining and evaluating the interests
highlights areas of mutual gain
How do participants prioritize their interests?How do they fit together?
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Options for Mutual GainThere is always more than one optionThink outside the boxExpand the pie
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Options for Mutual GainBrainstorm possible solutions togetherConsider options for joint benefitCreate what neither of you could do on your ownLook for possible trade-offs that can turn
potential into reality
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Overcoming Barriers to Developing Mutual
OptionsPremature judgmentSearching for the SINGLE answerAssuming a “fixed pie” Solving their problem is THEIR problem
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Separate the people from the problem
Focus on interests not positions
Create options for mutual gain
Develop your BATNA
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Best Alternative to Negotiated Agreement
What will you do if you are unable to reach agreement in the negotiation?
These alternatives are outside the negotiation and are typically implemented without the buy in of the other.
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Identify and Use your BATNA
Know your BATNAFocus on what you want to achieve and the
different ways to accomplish this Strengthen your BATNA
Construct your BATNA to be more achievable, probable, or satisfying more of your interests
Improves your confidence during the negotiation Consider other side’s BATNA
Make their BATNA less attractive to them
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Options and BATNANote the difference
Options“Inside” the negotiation Created with
counterpart Brainstorming
session Potential solution(s) BOTH you and
counterpart receive benefit
BATNA“Outside” the
negotiation Fall back position if
negotiation fails Can be implemented
unilaterally
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Separate the people from the problem
Focus on interests not positions
Create options for mutual gain
Develop your BATNA
Define objective criteria
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Objective Criteria“Others in the industry do….” (What is
customary)“The last time this happened we….”
(Precedent)“The standard contract says…” (Law)“If you were me would you….?” (Reciprocity)
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The Process of NegotiationSet the StageGather Information – explore interestsFrame and prioritize issuesGenerate and Evaluate OptionsFinalize Agreement
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Prepare to NegotiateKnow your interests and anticipate those of
othersAssess your relationships and it’s impact on the
negotiation.Think about (without settling on) possible options
for mutual gainDetermine your BATNAUnderstand your standards of fairness and
anticipate others’
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Culturally Competent Dispute ResolutionCultural Considerations in Negotiation
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Cross Cultural Training in the Past
Cookbook approachRecipes perpetuate stereotypesContinues narrow definition of culture as ethnicFocus is on “those” peopleUnderstanding and skills remain
underdeveloped and can be counterproductive
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Evolution of NegotiationHas been historically culture neutralDeveloped from the perspective of one
culture without accounting for differences or ambiguity
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Definition of CultureWay of life that includes values, beliefs and
behaviorsPassed down from one generation to anotherIt is learned
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The Iceberg Theory of Culture
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Dimensions of Culture Core Dimensions – aspects that are the most personal and
virtually unchangeable (ethnicity, gender) Internal Dimensions – Aspects that apply through our
development (language, family constellation) Peripheral Dimensions – Aspects that apply through
choice (education, marital status) External Factors – Aspects from our environments
(community, politics)
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Generalizations and Stereotypes
Generalization Never applies to
everyone in every situation
Only a first “guess” Discard when no
longer useful
Stereotype Applies to everyone in
every situation No exceptions Retained even when
no longer accurate or useful
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Primary and Secondary Cultures
Primary culture is your individual culture
Secondary is one within which you live/work
Each organization has a set of assumptions, practices, beliefs, and values.
We bring our primary cultures into the secondary culture
A health organizational culture will allow for members to manage primary cultural differences
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Culture and ConflictCulture affects negotiations
The way we identify a conflictThe way we respond to conflictThe outcome we desire in negotiation
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Cultural Continuums To Do
Earned status Achievement Individual Action Equality Immediate Family Self Reliance Independence Competition Guilt Future Class Mobility
To Be Ascribed Status Affiliations Stability Inequality Extended Family Rely on others Interdependence Cooperation Shame Past/Heritage
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Cultural Considerations in Negotiation
Direct and in-direct communication and conflict resolution
Saving face and solving the problemLinear and circular thinking and communicating
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What can you do?Know yourself in conflictWork to understand individuals as unique
cultural beingsMake an effort to understand the interests of
othersRemember that negotiation is a constant
process of introspection and change
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Thank YouElizabeth Z. Waetzig, JD
Change Matrix, LLC485 Maylin St.
Pasadena, CA 91105626-696-3227