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ORANGE 2

Harvard Negotiation Styles

Cooperative NegotiationThe 6 principles of Harvard Negotiation

Metholodogy

PRESENTATION VIDEO 1

Guadalupe de la Mata www.innovationforsocialchange.org 1

NEGOTIATION STYLES

HARVARD METHODOLOGY

The Six Principles of cooperative neogotiation (Harvard Methodology)

Main concepts

Keys to prepare for negotiation considering each of them

Real Examples (short videos)

Lets experience it!: the Ugly Orange Case Study

TODAY’S CLASS


Negotiation Styles

Source: Rollin & Christine Glaser

CO

NC

ER

N F

OR

RE

LA

TIO

NS

HIP

CONCERN FOR SUBSTANCE

LOW

HIGHCOLLABORATE

Problem solved creatively, aiming for win-win

Characteristics:

Search for common interests

Problem-solving behaviours

Recognising both parties’ needs

Synergistic solutions

Win-win becomes the main purpose of the negotiator

HIGH

AVOIDTake whatever you can get/Inaction

Characteristics:

Feeling of powerlessness

Indifference to the result

Resignation, surrender

Take what the other party is willing to concede

Withdraw & remove = behaviour of negotiator

DEFEAT

Be a winner at any cost/Competitive

Characteristics:

Win-Lose competition

Pressure/Intimidation

Adversarial relationships

Defeating the other becomes a goal for the negotiator

ACCOMODATE

Build friendly relationship

Characteristics:

Promote harmony

Avoid substantive differences

Give into pressure to save relationship

Place relationship above fairness of

the outcomes

COMPROMISE

Split the difference

Characteristics:

Meeting half way

Look for trade offs

Accept half-way measures

Aims to reduce conflict rather than problem solve synergistically

Harvard Negotiation Project

• Began in 1983

• In conjunction with MIT and Tufts

• Negotiation art and a science

Getting to Yes Authors

Roger Fisher Bruce Patton William Ury

Getting to Yes: 6 PRINCIPLES

INTERESTS:

OPTIONS

ALTERNATIVES

CRITERIA

COMUNICATION and

RELATIONSHIP

COMMITMENT

What do you really care about?The needs, concerns, goals, hopes and fears that

motivate the parties

Ideas about how the parties might meet their interests together.

Steps each party could take to satisfy their own interests outside the current

negotiation (BATNA)

How can I persuade them they are being fairly treated?Criteria that the parties use to legitimise their perspectives.

Prepare to communicate efficiently during the negotiation

How do you deal with people issues?

Promises made to build or finalise agreement.

Basic building blocks of negotiation


INTERESTS

• Don’t Bargain Over PositionsArguing over positions produces unwise outcomesArguing over positions is inefficientArguing over positions endangers an ongoing relationshipWhen there are many parties, positional bargaining is even

worseBeing nice is no answerThere is an alternative…


INTERESTS: OPTIONS ALTERNATIVES CRITERIA COMUNICATION RELATIONSHIP COMMITMENTS

Starting pointStarting point

POSITIONS• “WHAT YOU SAY YOU

WANT” (DEMANDS, TERMS AND CONDITIONS, etc.)

• A position is a way to satisfy interest, a mean to an end.

INTERESTS • UNDERLYING MOTIVATIONS,

NEEDS AND CONCERNS, FEARS AND ASPIRATIONS

• The WHY we want something

Principle 1. InterestsPrinciple 1. InterestsThe purpose of a negotiation is to satisfy your interest and the other party´s interests

.

Negotiate the WHY….not the WHAT

INTERESTS: OPTIONS ALTERNATIVES CRITERIA COMUNICATION RELATIONSHIP COMMITMENTS


• First example of negotiation style. • http://www.youtube.com/watch?v=rYGJNh8w

FRc&feature=relmfu in this video 3.09’ al 4.17’

• Watched it! Continue Guadalupe’s video


http://www.youtube.com/watch?v=rYGJNh8wFRc&feature=relmfu

http://www.youtube.com/watch?v=rYGJNh8wFRc&feature=relmfu

Interests BInterests A

Position A

Position B Positions A and B are too far away for a mutually beneficial agreement

Interests A and B, as a broader concept, allow for a common ground for agreementZone of

potential agreement

Cooperative negotiations

Positional vs. Cooperative Negotiations Focusing on positions can lead to sub-optimal agreements


Principle 1. Interest vs. positionsPrinciple 1. Interest vs. positions

Fisher and Ury define negotiations as “Back and forth communication to reach agreement where some interests are shared and some interests are opposed.“Getting to Yes”

The purpose of a negotiation is to satisfy your interest and the other parties interests

Joint problem solving: Both parties share the problem of trying to find an agreement that both can live with

Finding a good agreement, that does not leave potential joint gains on the table

Cooperative negotiation: Negotiating is not CompromisingCooperative negotiation: Negotiating is not Compromising

Principle 1. Interests preparationPrinciple 1. Interests preparation

• Why do I want what I want? Am I sure?• My needs, concerns, goals, hopes and fears • Have I assigned priorities to what is really important for me?• Prepare yourself to communicate your interests clearly

UNDERTANDING Your interests:

• Make sure you understand the interests of the other side• Ask why? What is the purpose?• Their needs, concerns, goals, hopes and fears• Focus on interest throughout the negotiation: please, help me

to understand your main concerns?• Put yourself on the other persons shoes, see what drives them

UNDERSTANDING Their interests


OPTIONS

Principle 2. OptionsPrinciple 2. Options

The range of possibities among which parties can reach an agreement Create options to satisfy interests. An agreement is better if it incorporates many options Brainstorming to come up with ideas and options that

can meet the interests of both sides Do not evaluate them during brainstorming

INTERESTS: OPTIONS ALTERNATIVES CRITERIA RELATIONSHIP COMMITMENTS


Principle 2. Options preparation APrinciple 2. Options preparation A

Find ways to work together to maximize common benefits Broaden the options on the table, rather than look for a single answer. BE CREATIVE! Search for mutual gains. Invent ways to make their decision easy.



Principle 2. Options preparation BPrinciple 2. Options preparation B

AVOID

• Premature judgedment• Searching for the single

answer• The assumption of a

fixed pie• Thinking that ‘solving

their problem is their problem’

ENCOURAGE

• Separate inventing from deciding• (brainstorming)• Consider

brainstorming with the other side



Principle 2. Options preparation CPrinciple 2. Options preparation C

Look for mutual gain

• Identify shared interests• Dovetail different interests

• Any difference in interests?• Different beliefs?• Different values placed on time?• Different forecasts?• Differences in aversion to risk?

• Ask for their preferences



ALTERNATIVES

Principle 3. AlternativesPrinciple 3. Alternatives

What I am going to do if we don't reach an agreement?

• Deals I can take outside of the possible agreement

• Look at all your alternatives and select the BEST

• Know your BATNA


Best

Alternative

Toa

Negotiated

Agreement

You are going to negotiate with more CONFIDENCE if you know what you can do if the negotiation fails


BATNA. An example. 1

In the first scenario, let's say that you are a buyer who goes to a supplier to purchase some badly needed parts to complete a project.

The supplier senses your urgency; his eyes begin to gleam with anticipation. You want the lowest price possible while he wants the higher price.

You have no fallback position. You are both on the same boat but the supplier is holding the oars, so guess who decides where the boat makes land?


BATNA. An example. 2

On the other hand, say you go to the meeting prepared. Before arranging the meet, you set up talks with 2 other suppliers who are ready and able to handle all your needs.

When you meet with the first supplier in this second scenario, you can calmly sit back in your chair, and allow the supplier to finish his spiel.

Now, watch how the supplier´s attitude changes when he realizes his competitors willingness to solve your problem. You have BATNA! The talks suddenly become more amenable.


Principle 3. Alternatives PreparationPrinciple 3. Alternatives Preparation

YOUR BATNA• Before going into the

negotiation explore other possibilities outside of it

• Once you have all potential alternatives, select one that is the Best Alternative (BATNA)

• What can you do to improve your BATNA?

THEIR BATNA• Think about their

BATNA: What about THEIR alternatives if you do not reach an agreement?

• Prepare arguments to their BATNA: why a deal will be better for them than their BATNA


Principle 3. AlternativesPrinciple 3. Alternatives


Pause video and watch video below, a second example of negotiation style. http://www.youtube.com/watch?v=Ghk9jM80g7g&feature=relatedminutes 3.28 – 9.18 Watched it! Notice the resistance to think about their BATNAHow to help an account team to get ready for a sale?Know your walkaway alternativeWould you accept any deal whatsoever?We have finished it! See the results of having prepared BATNA in this third example http://www.youtube.com/watch?v=6UEdEaiVnPo&feature=relatedminutes 0:28 – 06.30Coment in the wall


http://www.youtube.com/watch?v=Ghk9jM80g7g&feature=related

http://www.youtube.com/watch?v=6UEdEaiVnPo&feature=related

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negotiation

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