11-12-21 1
Negotiation and
Conflict Resolution
MaRS Discovery District
Best Practices Series
December 8, 2011
Presentation by
Michael...
Introduction
Introduction
v Negotiation
v Conflict Resolution
What is Negotiation?
v  Negotiation is:
v  a process.
v  a structured conversation.
v  a means to an end (agreement ab...
Basis for Negotiation
v Power
v Rights
v Interests
Escalation
Power
Power Strategies:
•  Take action unilaterally.
•  Win at all costs
•  Attack/Defend
•  Threaten
•  Coerce
•  Withdra...
Rights
Rights Strategies:
•  Contracts (guarantee the
minimum)
•  Policies, procedures, rules
•  Precedent
•  Past practic...
Interests
Interests Strategies:
•  Identify what’s really important
•  Dialogue about needs and wants
•  Honest sharing of...
Costs
Go
Up
Control Goes Up
Litigation
Arbitration
Investigation/Fact Finding
Conciliation
Mediation
Negotiation
Problem S...
The “Golden Rule”
De-escalation
Duty to Negotiate
in Good Faith
v  Obligation to respect the legitimate interests of other
party and to deal promptly, ho...
Duty to Negotiate
in Good Faith
Spectrum of contractual duties
Selfish Selfless
Unconscionability ! Good Faith Fiduciary D...
Duty to Negotiate
in Good Faith
v  Fiduciary:
v  Trustee
v  Corporate Director
v  Lawyer
v  Good Faith:
v  Professio...
Negotiation Steps
v  Distributing Value vs. Creating Value
v  Opportunistic
v  Problem-solving
v  Identify Issues
v  ...
Effective Negotiation
v  Interests vs. Positions
v  “Needs” vs. “wants”
v  “Separate the People from the Problem.”
v  ...
Effective Negotiation
v  Seek Objective Alternatives
v  Determine BATNA and WATNA
v  Best Alternative to Negotiated Agr...
Effective Negotiation
v  Successful relationships are built on communication
and trust.
v  Lack of trust leads to “win-l...
The Prisoner’s Dilemma
Scenario:
v  Adam and Bob arrested near the scene of a robbery.
v  Victim, badly injured, says on...
The Prisoner’s Dilemma
v  Simple problem: confess or don't confess.
v  If neither one confesses, both will serve
one yea...
Prisoner’s
Dilemma
Adam
confess silent
Bob
confess 10 10 0 20
silent 20 0 1 1
The Prisoner’s Dilemma
The Prisoner’s Dilemma
v  Lack of trust is fatal – neither can trust the other to
remain silent.
v  So the only rational...
Multiple Negotiations
v  Selfish strategy works in a “winner take all” game.
v  Life is rarely like that.
v  Most negot...
Multiple Negotiations
Payoff Matrix Player 2
cooperates
Player 2
retaliates
Player 1
cooperates
3, 3 0, 5
Player 1
retalia...
Multiple Negotiations
v  “Tit-for-Tat” strategy is most successful.
v  Four key conditions:
v  Nice
v  Retaliate
v  F...
Multiple Negotiations
1.  The player always cooperates, unless provoked.
2.  The player always retaliates, if provoked.
3....
Power Ploys
v  Classic “Hard Bargaining” Ploys
v  Extreme claims, small concessions
v  “Take or leave it.”
v  Unrecipr...
Ways to Respond
v  Extreme claims, small concessions
v  Tit for Tat – make equally small concessions.
v  “Take or leave...
Ways to Respond
v  Unreciprocated offers
v  Don’t negotiate against yourself.
v  Wait for a serious counter offer.
v  ...
Ways to Respond
v  Attacking the alternatives
v  Ask for an explanation.
v  “Why do you have a problem with…?”
v  Good...
Understanding Interests
Common Interests
v  Parties want the same things.
v  E.g. company and workers both want to avoid...
Understanding Interests
Complementary Interests
v  Parties want different things, but they don’t conflict.
v  E.g. compa...
Understanding Interests
Conflicting Interests
v  Parties want different and incompatible things.
v  E.g. company wants t...
Triangle of Satisfied Interests
EMOTION
(Psychological)
Three Types of Interests:!
!
Results (Substantive Interests): This...
Negotiation Styles
v  Assertiveness vs. Empathy
v  Three common negotiation styles
v  Competitive
v  Accommodating
v ...
Negotiation Skills
v  Communication is the key to effective negotiation.
v  What you say is often less important than ho...
Negotiation Skills
v  Understanding and recognition do not mean
compromise and concession.
v  “I understand” vs. “I agre...
Negotiation Skills
v  Listening
v  Develop “active listening”.
v  Understanding
v  Acknowledge the other person’s pers...
Conflict Management
Mediation
v  Mediation is a form of facilitated negotiation.
v  The Mediator guides the process and ...
Mediation
v  Interest-based Mediation
v  Mediator is a facilitator.
v  Focus on interests, not legal rights or obligati...
Mediation
v  Qualities of an effective mediator:
v  Subject area knowledge
v  Negotiation & mediation process skills
v...
Resources
v  Cohen: You Can Negotiate Anything, Bantam, 1980
v  Fischer, Ury and Patton: Getting to Yes, Penguin, 1991
v...
Questions?
Upcoming SlideShare
Loading in …5
×

Negotiation and Conflict Resolution - MaRS Best Practices

723 views
637 views

Published on

All technology ventures eventually run into conflicts and disputes. Companies survive and thrive by managing and resolving these disagreements quickly and effectively.

Join us and learn practical skills for successful negotiation, conflict management and dispute resolution. And find out how to recognize and respond effectively to different negotiation styles and strategies.

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
723
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
28
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Negotiation and Conflict Resolution - MaRS Best Practices

  1. 1. 11-12-21 1
  2. 2. Negotiation and Conflict Resolution MaRS Discovery District Best Practices Series December 8, 2011 Presentation by Michael Erdle, Co-Founder Practical Resolutions Inc.
  3. 3. Introduction
  4. 4. Introduction v Negotiation v Conflict Resolution
  5. 5. 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.
  6. 6. Basis for Negotiation v Power v Rights v Interests
  7. 7. Escalation
  8. 8. Power Power Strategies: •  Take action unilaterally. •  Win at all costs •  Attack/Defend •  Threaten •  Coerce •  Withdraw (Take the Ball and Go Home) •  Physical (or verbal) violence Characteristics of Power: •  Adversarial •  “Win/Lose” at best •  Usually “Lose/Lose” •  Extremely expensive •  Negative impact on future relationships
  9. 9. Rights Rights Strategies: •  Contracts (guarantee the minimum) •  Policies, procedures, rules •  Precedent •  Past practice •  Legal action •  Third-party decisions (e.g. arbitration) Characteristics of Rights: •  Adversarial •  “Win/Lose” at best •  Often “Lose/Lose” •  Extremely expensive •  Time-consuming •  Impact on future relationships?
  10. 10. Interests Interests Strategies: •  Identify what’s really important •  Dialogue about needs and wants •  Honest sharing of information •  Maximize results for all parties •  Help everyone explore and understand their own interests, and interests of other parties •  Needs an ongoing relationship Characteristics of Interests: •  “Win/win” process •  Collaborative •  Interdependent •  Builds trust •  Positive impact on future relationship
  11. 11. Costs Go Up Control Goes Up Litigation Arbitration Investigation/Fact Finding Conciliation Mediation Negotiation Problem Solving Prevention All out “War” Unilateral Action Threats, Coercion Power Rights Interests Power, Rights, Interests
  12. 12. The “Golden Rule”
  13. 13. De-escalation
  14. 14. Duty to Negotiate in Good Faith v  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)
  15. 15. Duty to Negotiate in Good Faith Spectrum of contractual duties Selfish Selfless Unconscionability ! Good Faith Fiduciary Duty
  16. 16. Duty to Negotiate in Good Faith v  Fiduciary: v  Trustee v  Corporate Director v  Lawyer v  Good Faith: v  Professional Code of Ethics v  Contract v  Employee/Employer
  17. 17. Negotiation Steps v  Distributing Value vs. Creating Value v  Opportunistic v  Problem-solving v  Identify Issues v  What does each side want and need? v  Consider Interests v  Common v  Complementary v  Conflicting
  18. 18. Effective Negotiation v  Interests vs. Positions v  “Needs” vs. “wants” v  “Separate the People from the Problem.” v  Soft on the person v  Hard on the problem v  Consider other Options
  19. 19. Effective Negotiation v  Seek Objective Alternatives v  Determine BATNA and WATNA v  Best Alternative to Negotiated Agreement v  Worst Alternative to Negotiated Agreement v  Look for a “win-win” solution.
  20. 20. Effective Negotiation v  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.
  21. 21. The Prisoner’s Dilemma Scenario: v  Adam and Bob arrested near the scene of a robbery. v  Victim, badly injured, says one person hit him but can’t say who. v  Both are carrying stolen property; no weapon. v  Questioned separately by the police. v  Enough evidence to convict both of theft, but not to convict either one of assault. v  Each prisoner must choose whether to confess and implicate the other.
  22. 22. The Prisoner’s Dilemma v  Simple problem: confess or don't confess. v  If neither one confesses, both will serve one year (possession of stolen property). v  If each confesses and implicates the other, both will go to prison for 10 years. v  If one confesses and the other doesn’t, the collaborator will go free, and the other will go to prison for 20 years.
  23. 23. Prisoner’s Dilemma Adam confess silent Bob confess 10 10 0 20 silent 20 0 1 1 The Prisoner’s Dilemma
  24. 24. The Prisoner’s Dilemma v  Lack of trust is fatal – neither can trust the other to remain silent. v  So the only rational action is to confess. v  That produces the best result no matter what the other person does. v  Other is silent – you go free v  Other confesses – both go to jail.
  25. 25. Multiple Negotiations v  Selfish strategy works in a “winner take all” game. v  Life is rarely like that. v  Most negotiations are based on a continuing relationship. v  What happens if there’s a series of negotiations?
  26. 26. Multiple Negotiations Payoff Matrix Player 2 cooperates Player 2 retaliates Player 1 cooperates 3, 3 0, 5 Player 1 retaliates 5, 0 -2, -2
  27. 27. Multiple Negotiations v  “Tit-for-Tat” strategy is most successful. v  Four key conditions: v  Nice v  Retaliate v  Forgiving v  Generous
  28. 28. Multiple Negotiations 1.  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.
  29. 29. Power Ploys v  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. 30. Ways to Respond v  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. 31. Ways to Respond v  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-treat. v  Challenge the underlying assumptions .
  32. 32. Ways to Respond v  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. 33. Understanding Interests Common Interests v  Parties want the same things. v  E.g. company and workers both want to avoid strikes and workplace grievances (costs them both money).
  34. 34. Understanding Interests Complementary Interests v  Parties want different things, but they don’t conflict. v  E.g. company wants to increase productivity & profits; workers want better pensions.
  35. 35. Understanding Interests Conflicting Interests v  Parties want different and incompatible things. v  E.g. company wants to reduce labour costs; workers want to be paid more.
  36. 36. Triangle of Satisfied Interests EMOTION (Psychological) Three Types of Interests:! ! Results (Substantive Interests): This is the “what”. Getting to a deal is the result or substantive interest.! ! Process (Procedural Interests): This is the “how”. The process -- how long it takes, how fair it is – are process, or procedural interests.! ! Emotion (Psychological Interests): This is the “why”. Wanting to “win”, to save face, gain respect, are psychological interests.! ! Note: Triangle adapted with permission from CDR Associates, Boulder, Colorado Understanding Interests
  37. 37. Negotiation Styles v  Assertiveness vs. Empathy v  Three common negotiation styles v  Competitive v  Accommodating v  Avoidance v  Effective negotiator is assertive and empathetic.
  38. 38. Negotiation Skills v  Communication is the key to effective negotiation. v  What you say is often less important than how you say it. v  Tone v  Body language
  39. 39. Negotiation Skills v  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.
  40. 40. Negotiation Skills v  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.
  41. 41. Conflict Management Mediation v  Mediation is a form 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.
  42. 42. Mediation v  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.
  43. 43. Mediation v  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
  44. 44. Resources v  Cohen: You Can Negotiate Anything, Bantam, 1980 v  Fischer, Ury and Patton: Getting to Yes, Penguin, 1991 v  Ury: Getting Past No, Bantam, 1993 v  Mnookin, Peppet and Tulumello: Beyond Winning, Harvard University Press, 2000 v  ADR Institute of Ontario (ADRIO) http://www.adrontario.ca/
  45. 45. Questions?

×