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Art science of win win negotiating for effective communication


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    • 1. The Art and Science of Win-Win Negotiating forEffective Communication2013 Joint Spring ConferenceKentuckyMarch 20, 2013 Juanita Richardson 416.809.8490
    • 2. 2IntroductionJuanita Richardson - MLIS, MBAJuanita is an Associate with Dysart & Jones and a Professor atSeneca College in Toronto, Canada. Her areas of expertise includestrategic planning for clients who want to deliver informationservices that have an impact. Prior to her consulting career, Juanitaheld positions on both the supplier and user sides of the
    • 3. 3• Agenda Definitions 3 Phases of Negotiating Negotiating Pitfalls Learn 360° - Discussion of case of your choice Implementation Mentality Deal-Minded VS. Implementation-Minded – Negotiator’s Tactics Transitioning to Implementation Mentality The Spirit of the Deal Social Contract Close: Win-Win Q&A Bibliography
    • 4. 4• What can be negotiated?• Anything! Including … ▫ Sales agreement ▫ Job offer ▫ Business partnership ▫ Compensation – bonus, salary increase ▫ Performance goals ▫ Etc!
    • 5. 5“Negotiation” Defined:• Negotiation is the process whereby interested parties resolve disputes, agree upon courses of action, bargain for individual or collective advantage, and / or attempt to craft outcomes which serve their mutual interests … Traditional negotiating is sometimes called “win-lose” because of the hard-ball style of the negotiators whose motive is to get as much as they can for their side … In the 70’s, practitioners and researchers began to develop “win-win” approaches to negotiation … This approach is referred to as “Principaled Negotiation”.
    • 6. 6• “Principled Negotiation”• Principled negotiation is a win-win approach where the goal is to reach a lasting agreement, rather than traditional positional (win-lose) bargaining.• Elements of Principled Negotiation: ▫ Separate the people from the problem; ▫ Focus on interests rather than positions; ▫ Generate a variety of options before settling on an agreement; ▫ Insist that the agreement be based on objective criteria.
    • 7. 7• “Best Alternative to a Negotiated Agreement” (BATNA)• In negotiation theory, the best alternative to a negotiated agreement or BATNA is the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached … If current negotiations are giving you less value than your BATNA, there is no point in proceeding.
    • 8. 8• Overview: 3 Phases of Negotiating Phase 1: Before the Negotiation ▫ Step 1: Prepare and plan:  Gather the facts  Do the math  Review SWOT  Consider the other party’s negotiating style / interests / issues  Prepare your BATNA  Prepare their BATNA  Identify your dealbreakers“You can’t win if you don’t play”
    • 9. 9• Overview cont. Phase 2: During the Negotiation ▫ Step 2: Set the tone:  Fair, honest, creative, collaborative … but, be prepared for:
    • 10. 10• TACTICS Presenting demands / “don’t show your cards first” Deadlines (artificial) Good cop / bad cop Limited authority Concessions High-ball / Low-ball Intimidation Getting it in your hands Fait accompli Take it or leave it Walking out
    • 11. 11• Overview Phase 2 cont. ▫ Step 3: Exploring underlying needs  ACTIVELY listen for facts and reasons behind the other party’s interests. Try to develop creative alternatives without losing win-win focus. Scan widely. ▫ Step 4: Selecting, refining and crafting an agreement  Both parties discuss the starting proposal. Listen for new ideas, think creatively to handle conflict, create cooperative environment. ▫ Step 5: Reviewing and recapping the agreement  Formalize the agreement in a written contract.“You won’t get what you don’t ask for.”
    • 12. 12• Overview cont. Phase 3 ▫ Step 6: After the negotiation:  Review the negotiation to identify lessons learned on how to achieve a better outcome. Take the time to review each element, asking “what went well?” and “what could be improved next time?”“Whatever you negotiate, you’re going to have to live with”
    • 13. 13 • 6 Pitfalls to Avoid1. Neglecting the other side’s problem2. Letting price bulldoze other interests3. Letting positions drive out interests4. Searching too hard for common ground5. Neglecting BATNA
    • 14. 14Learning 360°
    • 15. 15• Negotiating as if implementation matteredWhen the deal looks good on paper – but doesn’t work. What went wrong?: ▫ Negotiators too focused on closing the deal and squeezing the best terms out of one another – and not focused on implementation. ▫ Bargainers never ask how – or whether – their agreement will work in practice.Need to: ▫ Define negotiation not as closing the deal but as setting the stage for a successful long-term relationship. ▫ Ensure that both sides’ stakeholders support the deal. ▫ Communicate a consistent message about the terms and spirit.
    • 16. 16• Negotiator’s Tactic: SURPRISE Deal Minded Implementation Minded• Introduce new actors or • Propose agendas in advance information at strategic so both parties can prepare. points in negotiation. • Suggest questions to be• Raise new issues at the end. discussed and provide relevant data. • Raise issues early.
    • 17. 17• Negotiator’s Tactic: INFO SHARING Deal Minded Implementation Minded• Withhold information. • Create a joint fact-gathering• Fail to correct mistaken group. impressions. • Commission third-party research and analysis. • Question everyone’s assumptions openly.
    • 18. 18• Negotiator’s Tactic: CLOSING TECHNIQUES Deal Minded Implementation Minded• Create artificial deadlines. • Define interests that need to• Threaten escalation. be considered for the deal to• Make “this day only” offers. be successful. • Define joint communication strategy.
    • 19. 19• Negotiator’s Tactic: REALISTIC COMMITMENTS Deal Minded Implementation Minded• Focus on documenting • Ask tough questions about commitments rather than on both parties’ ability to testing the practicality of deliver. those commitments. • Make implementation a• Rely on penalty clauses for shared concern. protection. • Establish early warning systems and contingency plans.
    • 20. 20• Negotiator’s Tactic: STAKEHOLDERS Deal Minded Implementation Minded• Limit participation in • Repeatedly ask about discussions to decision stakeholders. makers. • Whose approval is needed?• Keep outsiders in the dark • Whose cooperation is until it is too late for them to required? derail things. • Who might interfere with implementation?
    • 21. 21 • 5 Steps to Transition to Implementation Mentality1. Start with the end in mind.2. Help them prepare too.3. Treat alignment as a shared responsibility.4. Send one message.5. Manage negotiation like a business process.
    • 22. 22• The Spirit of the Deal• Even when parties agree on the terms of the deal, they may have contrasting expectations about how their agreement will work in practice.• How do you address the “spirit of the deal”? The Social Contract
    • 23. 23• Social Contract Discussion Points• Underlying social contract  Real nature and purpose of the agreement  Scope and duration• Ongoing social contract  Consultation  Decision making  Dispute resolution  Reevaluation and renegotiation• Meeting of the minds  Alignment  Shared perceptions
    • 24. 24• Win-Win• The product of a negotiation isn’t a document; it’s the value produced once the parties have done what they agreed to do. Negotiators who understand that prepare differently than “deal makers” do. They don’t ask: “What might they be willing to accept?” but rather, “How do we create value together?”
    • 25. 25• Bibliography“3-D negotiation: playing the whole game” by David A. Lax and James K. Sebenius. Harvard Business Review, Nov. 2003.“Six habits of merely effective negotiators” by James K. Sebenius. Harvard Business Review, Apr. 2001.“Getting past yes: negotiating as if implementation mattered” by Danny Ertel. Harvard Business Review, Nov. 2004.“Negotiating the spirit of the deal” by Ron S. Fortgang, et al. Harvard Business Review, Feb. 2003.William Ury, et al. Getting to Yes: Negotiating Agreement Without Giving In. Houghton Miffin: 1992.William Ury, et al. Getting Past No: Negotiating Your Way from Confrontation to Cooperation. Bantam: 1993.Harvard Law School Program on Negotiation: