tactics for creating value o nly p roposals t hat i nclude o thers n eeds s ucceed
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TacticsTacticsfor for
Creating valueCreating value
O nlyO nly
P roposalsP roposals
T hatT hat
I ncludeI nclude
O ther’s O ther’s
N eedsN eeds
S ucceedS ucceed
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Opportunities to create Opportunities to create valuevalue
•Multiple issuesMultiple issues
•Differing strengths of preferenceDiffering strengths of preference
•Differing interestsDiffering interests
•Future relationshipFuture relationship
•Multiple alternativesMultiple alternatives
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Differences in valuation can Differences in valuation can create valuecreate value
DealPositio
nEmployer Applicant Total
Office
NY 30 5
SF 20 25
Start2
mo.’s10 40
1 week
35 30
First Deal
NY 2
mo.’s
(30+10=) 40
(5+40=) 45
(40+45=) 85
After Trad
e
SF 1
week
(20+35=) 55
(25+35=) 55
(55+55=) 110
Gain +15 +10(15+10=)
25
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Distinguish:Distinguish:
InterestsInterests (motivate) (motivate) IssuesIssues (motivate) (motivate) PositionsPositions
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Anatomy of a ConflictPerceived DifferencesScarce ResourcesInaccurate InformationUnfulfilled NeedsPower Struggles
SUCCESS
POSITIONS:What each party says they want – their preconceived solution
ARGUMENTS:Why they think they should get it
INTERESTS:Underlying needs, hopes & concerns that must be satisfied to achieve a resolution.
© 1992 – 2012 ICM, Inc./Sam Imperati/Portland, OR
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DifferencesDifferencesCreate Private ValueCreate Private Value
•ValuationValuation
•Risk AversionRisk Aversion
•CapabilityCapability
•Time Time PreferencesPreferences
•ForecastsForecasts
• TradeTrade
• InsuranceInsurance
• CombinationCombination
• Sequence Sequence PerformancePerformance
• Contingency Contingency ContractsContracts
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TacticsTactics
Research and exploit differences Research and exploit differences
Ask open ended questions versus persuadeAsk open ended questions versus persuade
Make proposals that satisfy your interests Make proposals that satisfy your interests by satisfying the other side’s interestsby satisfying the other side’s interests
Make package proposals and ask questionsMake package proposals and ask questions
Propose post-settlement settlementPropose post-settlement settlement
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The goal of A Negotiation…The goal of A Negotiation…
……is not to reach an is not to reach an agreement.agreement.
It’s to reach a It’s to reach a goodgood
agreement.agreement.