Negotiation and Conflict Resolution - Entrepreneurship 101 (2012/2013)

Uploaded on

Michael Erdle, Managing Director, Deeth Williams Wall LLP, discusses practical skills for successful negotiation, conflict management and dispute resolution including different negotiation styles and …

Michael Erdle, Managing Director, Deeth Williams Wall LLP, discusses practical skills for successful negotiation, conflict management and dispute resolution including different negotiation styles and strategies.

Register for Entrepreneurship 101 here:

More in: Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. Negotiation andConflict Resolution MaRS Discovery District Entrepreneurship 101 Presentation by Michael Erdle, Co-Founder Practical Resolutions Inc.
  • 2. Introductionv  Negotiationv  Conflict Resolution
  • 3. What is Negotiation?v  Negotiation is: v  a process. v  a structured conversation. v  a means to an end (agreement about something).v  We do it all the time, without really thinking about it.
  • 4. Basis for Negotiationv  Interestsv  Rightsv  Power
  • 5. Escalation
  • 6. PowerPower Strategies: Characteristics of Power:•  Take action unilaterally. •  Adversarial•  Win at all costs •  “Win/Lose” at best•  Attack/Defend •  Usually “Lose/Lose”•  Threaten •  Extremely expensive•  Coerce •  Negative impact on future•  Withdraw (Take the Ball and Go relationships Home)•  Physical (or verbal) violence
  • 7. RightsRights Strategies: Characteristics of Rights:•  Contracts (guarantee the •  Adversarial minimum) •  “Win/Lose” at best•  Policies, procedures, rules •  Often “Lose/Lose”•  Precedent •  Extremely expensive•  Past practice •  Time-consuming•  Legal action •  Impact on future relationships?•  Third-party decisions (e.g. arbitration)
  • 8. InterestsInterests Strategies: Characteristics of Interests:•  Identify what’s really important •  “Win/win” process•  Dialogue about needs and wants •  Collaborative•  Honest sharing of information •  Interdependent•  Maximize results for all parties •  Builds trust•  Help everyone explore and •  Positive impact on future understand their own interests, relationship and interests of other parties•  Needs an ongoing relationship
  • 9. Power, Rights, Interests All out “War” Unilateral Action Power Threats, Coercion Litigation Arbitration RightsCosts Investigation/Fact Finding Go Up Conciliation Interests Mediation Negotiation Problem Solving Prevention Control Goes Up
  • 10. The “Golden Rule”
  • 11. De-escalation
  • 12. Duty to Negotiate in Good Faithv  Obligation to respect the legitimate interests of other party and to deal promptly, honestly, fairly and reasonably with them. v  Shelanu Inc. v. Print Three Franchising Corp. (Ontario Court of Appeal)v  Implied in negotiation where there is an imbalance. v  Wallace v. Grain Growers (Supreme Court of Canada)
  • 13. Duty to Negotiate in Good Faith Spectrum of contractual dutiesSelfish Selfless Honesty ! Good Faith Fiduciary Duty
  • 14. Duty to Negotiate in Good Faithv  Fiduciary: v  Trustee v  Corporate Director v  Lawyerv  Good Faith: v  Professional Code of Ethics v  Contract v  Employee/Employer
  • 15. Negotiation Stepsv  Distributing Value vs. Creating Value v  Opportunistic v  Problem-solvingv  Identify Issues v  What does each side want and need?v  Consider Interests v  Common v  Complementary v  Conflicting
  • 16. Effective Negotiationv  Interests vs. Positions v  “Needs” vs. “wants”v  “Separate the People from the Problem.” v  Soft on the person v  Hard on the problemv  Consider other Options
  • 17. Effective Negotiationv  Seek Objective Alternativesv  Determine BATNA and WATNA v  Best Alternative to Negotiated Agreement v  Worst Alternative to Negotiated Agreementv  Look for a “win-win” solution.
  • 18. Effective Negotiationv  Successful relationships are built on communication and trust.v  Lack of trust leads to “win-lose” or “lose-lose”.v  Negotiation is one way of creating trust – or deciding whether trust is justified.
  • 19. Multiple Negotiationsv  Selfish strategy works in a “winner take all” game.v  Life is rarely like that.v  Most negotiations involve a continuing relationship.v  What happens if there’s a series of negotiations?
  • 20. Multiple Negotiationsv  “Tit-for-Tat” strategy is most successful.v  Four key conditions: v  Nice v  Retaliate v  Forgiving v  Generous
  • 21. Multiple Negotiations1.  The player always cooperates, unless provoked.2.  The player always retaliates, if provoked.3.  The player is quick to forgive –co-operate next time.4.  The game must continue long enough for the ‘retaliation and forgiveness’ pattern to affect opponent’s behaviour.
  • 22. Negotiation Stylesv  Focus on “winning”.v  Focus on relationship.
  • 23. Negotiation StylesFocus  on  Content   Win - Win Win - Lose Focus  on  Rela,onship  
  • 24. Negotiation StylesFocus  on  Content   Focus  on  Rela,onship  
  • 25. Negotiation StylesFocus  on  Content   Focus  on  Rela,onship  
  • 26. Negotiation StylesFocus  on  Content   Focus  on  Rela,onship  
  • 27. Negotiation StylesFocus  on  Content   Focus  on  Rela,onship  
  • 28. Negotiation StylesFocus  on  Content   Focus  on  Rela,onship  
  • 29. Power Ploysv  Classic “Hard Bargaining” Ploys v  Extreme claims, small concessions v  “Take or leave it.” v  Unreciprocated offers v  Threats and warnings v  Attacking the alternatives v  Good cop, bad cop
  • 30. Ways to Respondv  Extreme claims, small concessions v  Tit for Tat – make equally small concessions.v  “Take or leave it.” v  Make a counter offer. v  Offer an alternative. v  Don’t be afraid to walk away.
  • 31. Ways to Respondv  Unreciprocated offers v  Don’t negotiate against yourself. v  Wait for a serious counter offer.v  Threats and warnings v  Don’t make a counter-threat. v  Challenge the underlying assumptions .
  • 32. Ways to Respondv  Attacking the alternatives v  Ask for an explanation. v  “Why do you have a problem with…?”v  Good cop, bad cop v  Negotiate with the boss. v  Use the “good cop” to your advantage.
  • 33. Understanding InterestsCommon Interestsv  Parties want the same things.v  E.g. company and workers both want to avoid strikes and workplace grievances (costs them both money).
  • 34. Understanding InterestsComplementary Interestsv  Parties want different things, but they don’t conflict.v  E.g. company wants to increase productivity & profits; workers want better pensions.
  • 35. Understanding InterestsConflicting Interestsv  Parties want different and incompatible things.v  E.g. company wants to reduce labour costs; workers want to be paid more.
  • 36. Negotiation Skillsv  Communication is the key to effective negotiation.v  Assertiveness vs. Empathy v  Effective negotiator is assertive and empatheticv  What you say is often less important than how you say it. v  Tone v  Body language
  • 37. Negotiation Skillsv  Understanding and recognition do not mean compromise and concession. v  “I understand” vs. “I agree”.v  Your own emotions and subconscious brain can hinder your ability to negotiate effectively.
  • 38. Negotiation Skillsv  Listening v  Develop “active listening”.v  Understanding v  Acknowledge the other person’s perspective.v  Flexibility v  Be open to other options.v  Pragmatism v  Accept the best available option.
  • 39. Conflict Resolution:Match Process to Business Goalsv  Litigation v  Mediation v  Public v  Private v  Little control over v  Cheaper and quicker time & expense v  Control outcomev  Arbitration v  Facilitation v  Private v  Informal v  Quicker and v  Inexpensive cheaper?
  • 40. Power, Rights, Interests All out “War” Unilateral Action Power Threats, Coercion Litigation Arbitration RightsCosts Investigation/Fact Finding Go Up Conciliation Interests Mediation Facilitation Problem Solving Negotiation Control Goes Up
  • 41. Facilitationv  Informal processv  Parties control process and outcomev  Facilitator ensures that all issues are addressed and all parties have an opportunity to be heardv  Examples: partnering workshops; joint problem-solving; facilitated negotiations (re-negotiations)
  • 42. Mediationv  A more formal process of facilitated negotiation.v  The Mediator guides the process and helps the parties negotiate more effectively.v  The Mediator does not decide who is right or wrong.
  • 43. Mediationv  Interest-based Mediation v  Mediator is a facilitator. v  Focus on interests, not legal rights or obligations. v  Options for creative solutions.v  Evaluative Mediation v  Neutral evaluation. v  Based on legal rights & obligations.
  • 44. Mediationv  Qualities of an effective mediator: v  Subject area knowledge v  Negotiation & mediation process skills v  Lets parties make key decisions v  Creative approach to the problem v  Patience
  • 45. Arbitrationv  Adversarial processv  Less formal than litigation, but need to follow procedural rules for fairness and efficiencyv  Not necessarily quicker or cheaper than litigationv  Parties can select arbitrator with particular legal, financial or licensing expertisev  Private – don’t “air dirty laundry”
  • 46. Arbitrationv  Qualities of an effective arbitrator: v  Subject matter expertise v  Active control over process v  Fairness and good judgment
  • 47. Other Dispute Processesv  Executive Committee v  Formal escalation process v  Risk that positions become harder as they escalate v  Executives must remain engaged throughout the agreementv  Project Umpire v  Can facilitate or mediate resolution of project disputes v  Can also provide neutral evaluation or non-binding arbitration v  Umpire is engaged throughout the project v  Available to deal with issues on short notice
  • 48. Resourcesv  Fischer, Ury and Patton: Getting to Yes, Penguin, 1991v  Ury: Getting Past No, Bantam, 1993v  Cohen: You Can Negotiate Anything, Bantam, 1980v  Mnookin, Peppet and Tulumello: Beyond Winning, Harvard University Press, 2000v  ADR Institute of Ontario (ADRIO)
  • 49. Questions?