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Negotiation 101: The Art and the Science

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Negotiation 101: The Art and the Science Patullo Conference October 8, 2013 – PowerPoint PPT presentation

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Title: Negotiation 101: The Art and the Science


1
Negotiation 101 The Art and the Science
  • Patullo Conference
  • October 8, 2013

2
Negotiation 101 The art and science
  • Framework
  • The science improve outcomes
  • The art know thyself!
  • Practice makes perfect

3
Negotiation 101 The art and science
  • Framework
  • The science improve outcomes
  • The art know thyself!
  • Practice makes perfect

4
Framework The science The art Practice
Whats to negotiate?
  • In the beginning was choice,
  • and all history can be seen
  • as an unending effort to manage it

5
Framework The science The art Practice
Whats to negotiate?
6
Framework The science The art Practice
Whats to negotiate?
7
Framework The science The art Practice
Whats to negotiate?
Business-as-usual
v
?
Decision Point
Convergent Zone
Divergent Zone
Groan Zone
Kaner, 1996
8
Framework The science The art Practice
Whats to negotiate?
Prospect Theory
Classic Attitude Equation
  • Reflects status quo bias and loss aversion

A ? v1w1 , where v1 is belief content w1 is
belief importance w1 ? (z1-y1) x1 z1 is an
emphasis frame (nominal values) x1 relates to
priming (0-1) y1 is an equivalence frame
(quantify gain/loss)
Value
Positive
Outcome
Losses
Gains
Negative
9
Negotiation 101 The art and science
  • Framework
  • The science improve outcomes
  • The art know thyself!
  • Practice makes perfect

10
Framework The science The art Practice
Four-step process Five things you have to
identify First choice
  • Data gathering
  • Definition of the problem
  • Developing options
  • Bargaining/Problem-solving

11
Inventing Options
Framework The science The art Practice
Four-step process Five things you have to
identify First choice
  • Broadening the Pie
  • Create additional resources so that both sides
    can obtain their major goals
  • Nonspecific Compensation
  • One side gets what it wants and the other is
    compensated on another issue
  • Logrolling
  • Each party makes concessions on low-priority
    issues in exchange for concessions on issues that
    it values more highly
  • Cost Cutting
  • One party gets what it wants the costs to the
    other are reduced or eliminated
  • Bridging
  • Neither party gets its initial demands but a new
    option that satisfies the major interests of both
    sides are developed.

12
Framework The science The art Practice
Four-step process Five things you have to
identify First choice
13
Framework The science The art Practice
Four-step process Five things you have to
identify First choice
  • Aspiration point dream outcome
  • BATNA whats left if a negotiation breaks down
    or doesnt happen
  • Resistance point worst outcome thats still
    acceptable
  • ZOPA the space where the negotiation happens
  • First offer

14
BATNA what?
Framework The science The art Practice
Four-step process Five things you have to
identify First choice
  • Best Alternative To a Negotiated Agreement
  • BATNA is the choice you can make if you conclude
    that negotiating with a particular party is not
    likely to yield a favorable result.
  • You can walk away from a negotiation if your
    BATNA is better than the likely outcome of that
    negotiation.
  • Establishes Resistance points (worst case
    scenario thats acceptable in a negotiation)

15
Zone of Potential Agreement
Framework The science The art Practice
Five-step process Six things you have to
identify First choice
16
Framework The science The art Practice
Four-step process Five things you have to
identify First choice
  • Integrative
  • (collaborative, win-win)
  • there is a variable amount of resources to be
    divided and both sides can "win."
  • dominant concern here is to maximize joint
    outcomes.
  • dominant strategies include cooperation, sharing
    information, and mutual problem solving. This
    type is also called "creating value" since the
    goal here is to have both sides leave the
    negotiating feeling they have greater value than
    before.
  • Distributive
  • (competitive, zero sum, win-lose)
  • one side "wins" and one side "loses."
  • there are fixed resources to be divided so that
    the more one gets, the less the other gets.
  • one person's interests oppose the others.
  • the dominant concern in this type of bargaining
    is usually maximizing one's own interests.
  • dominant strategies in this mode include
    manipulation, forcing, and withholding
    information.

17
Concessions
Framework The science The art Practice
Four-step process Five things you have to
identify First choice
  • Small concessions give the impression that the
    bottom line is not far off.  
  • Large concessions indicate that a lot more can
    still be conceded before the bottom line is
    reached.  
  • Rapid or large concessions undermine the
    credibility of the initial offer.  
  • All concessions teach the lesson that more
    concessions will be made.
  • Never split the difference!

18
Negotiation 101 The art and science
  • Framework
  • The science improve outcomes
  • The art know thyself!
  • Practice makes perfect

19
Framework The science The art Practice
The K-MIF way Who am I? How do I figure you out?
  • Know
  • Monitor
  • Inject resources
  • Follow up

20
Framework The science The art Practice
The K-MIF way Who am I? How do I figure you
out? Injecting resources
Forcing Shark my way or the high way
Collaborating Owl I would prefer x, but what do
you want?
Importance of Personal Goals
Avoiding Turtle Conflict? What conflict?
Accommodating Teddy Bear Whatever you say
Importance of Relationships
Adapted from Anthony Falikowski's 2002 book,
Mastering Human Relations
21
Framework The science The art Practice
The K-MIF way Who am I? How do I figure you
out? Injecting resources
  • Forcing
  • Win-lose
  • authoritarian
  • reactive
  • Collaborating
  • Win-win
  • focuses on process
  • energized by differences

Assertiveness
  • Avoiding
  • Lose-lose
  • timid
  • weathers the storm
  • Accommodating
  • Lose-win some
  • wishy-washy
  • need to please

Cooperativeness
Adapted from Anthony Falikowski's 2002 book,
Mastering Human Relations
22
Framework The science The art Practice
The K-MIF way Who am I? How do I figure you
out? Injecting resources
23
Framework The science The art Practice
The K-MIF way Who am I? How do I figure you
out? Injecting resources
  • High Culture
  • Underlying social contract is most important
  • Collectivist societies
  • Maintaining face
  • Group harmony
  • Talk is more about preserving social harmony than
    transmitting information
  • Inaccuracy and evasion are preferred to painful
    precision, especially in the culturally loaded
    use of no
  • Low Culture
  • The preeminence of the individual
  • Meaning is explicit in the text
  • Language is informational rather than a social
    lubricant

24
If all else fails, ask a question
Framework The science The art Practice
The K-MIF way Who am I? How do I figure you
out? Injecting resources
  • Exploring positions
  • Ask, why not?
  • Allow them to correct you
  • What I hear you saying is x, is that correct?
  • Build trust by showing some of your hand
  • Finding interests
  • Ask, what if?
  • Ask for their advice
  • What would you do in my shoes?

25
And watch the response
Framework The science The art Practice
The K-MIF way Who am I? How do I figure you
out? Injecting resources
  • Emblems
  • specific gestures with specific meaning that are
    consciously used and consciously understood.
  • used as substitutes for words and are closer to
    sign language than everyday body language.
  • Iconic gestures
  • closely related to speech, illustrating what is
    being said
  • Metaphoric gestures
  • Used to explain a concept
  • Regulators
  • used to control turn-taking in conversation
  • Affect displays
  • used to display emotion
  • Beat gestures
  • plays to primitive feelings of basic patterning
  • used to create emphasis and grab attention.

26
Framework The science The art Practice
The K-MIF way Who am I? How do I figure you
out? Injecting resources
  • Non-Verbal Behavior
  • Brisk, erect walk
  • Hands on hips
  • Arms crossed on chest
  • Hand to cheek
  • Rubbing eyes
  • Hands clasped behind back
  • Fondling hair
  • Tilted head
  • Stroking chin
  • Interpretation
  • Confidence
  • Aggressiveness, readiness
  • Defensiveness, relaxed
  • Evaluation
  • Disbelief, tiredness
  • Anger, frustration
  • Insecurity, flirting
  • Taking an interest
  • Trying to make a decision, taking over the world

27
Framework The science The art Practice
The K-MIF way Who am I? How do I figure you
out? Injecting resources
  • Patterns
  • Moving away
  • Closing
  • Preening
  • Pulling back the head in fear, confusion or
    surprise.
  • Pulling back arms or shoulders.
  • Hollowing the chest, pulling it back.
  • Turning away the head and, in extreme, showing
    the back.
  • Stepping back.
  • Lowering the head, with chin down (protecting the
    neck).
  • Closing mouth and eyes, lowering eyebrows
    refusing speech and sight.
  • Crossing arms or legs, pulling in shoulders,
    elbows and knees to protecting organs and
    vulnerable parts.
  • Turning hands to palms facing down.
  • Curling fingers into the palm, protecting them
    (and also making a fist).
  • Turning feet to point toes inwards.
  • Hunching down, with any or all of the above,
    making the body less threatening and a smaller
    target.
  • Straightening the tie or other clothes.
  • Looking in a mirror.
  • Curling lips to even out lipstick.
  • Brushing imaginary lint off arms or legs.
  • Patting down hair or combing it with the fingers.

28
Injecting Resources
Framework The science The art Practice
The K-MIF way Who am I? How do I figure you
out? Injecting resources
29
Negotiation 101 The art and science
  • Framework
  • The science improve outcomes
  • The art know thyself!
  • Practice makes perfect
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