Problem Solving Negotiation David Landis Director, Urban Development Lincoln, NE
Definition A negotiation is a trade -”I’ll do Y, if you’ll do X.”
Auction Rules <ul><li>Real money is exchanged </li></ul><ul><li>No bid more than 10 cents </li></ul><ul><li>Bids divisible...
Two Strategy Options <ul><li>Seeking Advantage </li></ul><ul><li>Seeking Joint Gain  </li></ul>
Advantage Seeking <ul><li>Good short term results </li></ul><ul><li>Hard to exploit </li></ul><ul><li>Relatively easy to d...
Advantage Seeking <ul><li>Hard on relationships </li></ul><ul><li>Misses joint gain </li></ul><ul><li>Breeds reciprocity <...
Joint Gain Seeking <ul><li>Expands the pie </li></ul><ul><li>Benefits grow over time </li></ul><ul><li>Builds relationship...
Joint Gain Seeking <ul><li>Risks exploitation </li></ul><ul><li>Takes more time and preparation </li></ul><ul><li>Requires...
Taming the Advantage Seeker <ul><li>Align your incentives </li></ul><ul><li>Cooperation on terms is reciprocal, not indivi...
Trust: <ul><li>A two-sided coin: trusting, being trusted </li></ul><ul><li>A shared problem </li></ul><ul><li>Some assume ...
Being Trustworthy  <ul><li>Say what you mean, mean what you say </li></ul><ul><li>Does not require full disclosure </li></...
Trusting <ul><li>Operate independent of trust </li></ul><ul><li>Reciprocal consequences </li></ul>
3 Characteristics of Negotiation <ul><li>Recurring pattern </li></ul><ul><li>Tension </li></ul><ul><li>Asymmetrical inform...
Role #5 - Observer <ul><li>Don’t give away information or reactions – just watch.  </li></ul><ul><li>Watch for exaggeratio...
 
Role #1 <ul><li>Your mother says, “Go to the store.  Bring me an orange.  You come home without an orange and you’ll be in...
 
Role #2 <ul><li>Your mother says, “Go to the store.  Bring me an orange.  You come home without an orange and you’ll be in...
 
Role #3 <ul><li>Your mother says, “Go to the store and bring me an orange.  Family is coming over tomorrow, I’m going to p...
 
Role #4 <ul><li>Your mother says, “Go to the store, bring me an orange.  Family is coming over tomorrow.  I’m going to pee...
5 into 2 <ul><li>No division of items </li></ul><ul><li>No side deals </li></ul><ul><li>Must divide all five between you <...
5 into 2  <ul><li>2 tickets, great concert </li></ul><ul><li>Designer jacket </li></ul><ul><li>Glider flight over Grand Ca...
Worker’s Comp Deal Business Labor Dr. Choice Managed Care Indexed Benefits Safety Comm./ Inspectors
Worker’s Comp Deal Business Labor Dr. Choice Yes  Managed Care Yes  Indexed Benefits No  Safety Comm./ Inspectors No
Worker’s Comp Deal Business Labor Dr. Choice Yes  No  Managed Care Yes  No  Indexed Benefits No  Yes  Safety Comm./ Inspec...
Worker’s Comp Deal Business Labor Dr. Choice Yes  1 No  Managed Care Yes  2 No  Indexed Benefits No  3   Yes  Safety Comm....
Worker’s Comp Deal Business Labor Dr. Choice Yes  1 No  3  Managed Care Yes  2 No  4 Indexed Benefits No  3   Yes  1 Safet...
Tools for Mutual Gain <ul><li>Interests before positions </li></ul><ul><li>Priorities traded across differences </li></ul>...
Use Objective Criteria <ul><li>Learn marketplace </li></ul><ul><li>Frame dispute as a joint search for fair standards </li...
Focus on Interests, Not Positions <ul><li>Interests=underlying motivations </li></ul><ul><ul><li>The answer to “why?” </li...
Invent Options for Mutual Gain <ul><li>Brainstorm method of advancing parties’ interests </li></ul><ul><li>Invent first, t...
Separate People from the Problem <ul><li>Be unconditionally cooperative on process </li></ul><ul><ul><li>Good listening </...
Separate Problem from the People <ul><li>Be firm on fair outcomes </li></ul><ul><ul><li>Trade cooperation </li></ul></ul><...
Problem Solving Negotiation <ul><li>“ Good luck and good negotiating, </li></ul><ul><li>Dave Landis </li></ul><ul><li>[ema...
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Csg auction2

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Csg auction2

  1. 1. Problem Solving Negotiation David Landis Director, Urban Development Lincoln, NE
  2. 2. Definition A negotiation is a trade -”I’ll do Y, if you’ll do X.”
  3. 3. Auction Rules <ul><li>Real money is exchanged </li></ul><ul><li>No bid more than 10 cents </li></ul><ul><li>Bids divisible by 5 </li></ul><ul><li>No talking but bidding </li></ul><ul><li>High bid pays and gets item, second high bid pays and does not get item. </li></ul>
  4. 4. Two Strategy Options <ul><li>Seeking Advantage </li></ul><ul><li>Seeking Joint Gain </li></ul>
  5. 5. Advantage Seeking <ul><li>Good short term results </li></ul><ul><li>Hard to exploit </li></ul><ul><li>Relatively easy to do </li></ul>
  6. 6. Advantage Seeking <ul><li>Hard on relationships </li></ul><ul><li>Misses joint gain </li></ul><ul><li>Breeds reciprocity </li></ul>
  7. 7. Joint Gain Seeking <ul><li>Expands the pie </li></ul><ul><li>Benefits grow over time </li></ul><ul><li>Builds relationships </li></ul>
  8. 8. Joint Gain Seeking <ul><li>Risks exploitation </li></ul><ul><li>Takes more time and preparation </li></ul><ul><li>Requires skill to be effective </li></ul>
  9. 9. Taming the Advantage Seeker <ul><li>Align your incentives </li></ul><ul><li>Cooperation on terms is reciprocal, not individual </li></ul><ul><li>Lift the horizon </li></ul><ul><li>Develop “walk away” alternative </li></ul>
  10. 10. Trust: <ul><li>A two-sided coin: trusting, being trusted </li></ul><ul><li>A shared problem </li></ul><ul><li>Some assume trustworthiness </li></ul><ul><li>Some assume untrustworthiness </li></ul>
  11. 11. Being Trustworthy <ul><li>Say what you mean, mean what you say </li></ul><ul><li>Does not require full disclosure </li></ul><ul><li>Worth its weight in gold </li></ul>
  12. 12. Trusting <ul><li>Operate independent of trust </li></ul><ul><li>Reciprocal consequences </li></ul>
  13. 13. 3 Characteristics of Negotiation <ul><li>Recurring pattern </li></ul><ul><li>Tension </li></ul><ul><li>Asymmetrical information </li></ul>
  14. 14. Role #5 - Observer <ul><li>Don’t give away information or reactions – just watch. </li></ul><ul><li>Watch for exaggerations, threats, offers and counter-offers. </li></ul><ul><li>Notice questions particularly. </li></ul>
  15. 16. Role #1 <ul><li>Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.” </li></ul>
  16. 18. Role #2 <ul><li>Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.” </li></ul>
  17. 20. Role #3 <ul><li>Your mother says, “Go to the store and bring me an orange. Family is coming over tomorrow, I’m going to peel the orange and cut up the pulp for a fruit salad. Bring me an orange or you’ll be in trouble.” </li></ul>
  18. 22. Role #4 <ul><li>Your mother says, “Go to the store, bring me an orange. Family is coming over tomorrow. I’m going to peel the orange and grate the peel to flavor some orange bread I’m making. Bring me an orange or you’re in trouble.” </li></ul>
  19. 23. 5 into 2 <ul><li>No division of items </li></ul><ul><li>No side deals </li></ul><ul><li>Must divide all five between you </li></ul><ul><li>Divide in 2 minutes or get nothing </li></ul><ul><li>Item: </li></ul>-5 crisp $ 1,000 bills
  20. 24. 5 into 2 <ul><li>2 tickets, great concert </li></ul><ul><li>Designer jacket </li></ul><ul><li>Glider flight over Grand Canyon </li></ul><ul><li>Elegant, fine French meal for 2 </li></ul><ul><li>Martha Stewart cooks and cleans </li></ul><ul><li>All the same rules </li></ul><ul><li>Items: </li></ul>
  21. 25. Worker’s Comp Deal Business Labor Dr. Choice Managed Care Indexed Benefits Safety Comm./ Inspectors
  22. 26. Worker’s Comp Deal Business Labor Dr. Choice Yes Managed Care Yes Indexed Benefits No Safety Comm./ Inspectors No
  23. 27. Worker’s Comp Deal Business Labor Dr. Choice Yes No Managed Care Yes No Indexed Benefits No Yes Safety Comm./ Inspectors No Yes
  24. 28. Worker’s Comp Deal Business Labor Dr. Choice Yes 1 No Managed Care Yes 2 No Indexed Benefits No 3 Yes Safety Comm./ Inspectors No 4 Yes
  25. 29. Worker’s Comp Deal Business Labor Dr. Choice Yes 1 No 3 Managed Care Yes 2 No 4 Indexed Benefits No 3 Yes 1 Safety Comm./ Inspectors No 4 Yes 2
  26. 30. Tools for Mutual Gain <ul><li>Interests before positions </li></ul><ul><li>Priorities traded across differences </li></ul><ul><li>Fair process norms </li></ul><ul><li>Objective criteria </li></ul><ul><li>Trust through authentic communication </li></ul>
  27. 31. Use Objective Criteria <ul><li>Learn marketplace </li></ul><ul><li>Frame dispute as a joint search for fair standards </li></ul><ul><li>Adjust standards for unique circumstances </li></ul><ul><li>Open with an offer you can justify </li></ul>
  28. 32. Focus on Interests, Not Positions <ul><li>Interests=underlying motivations </li></ul><ul><ul><li>The answer to “why?” </li></ul></ul><ul><li>Positions=“yes or no” options </li></ul><ul><ul><li>The answer to “how much?” </li></ul></ul><ul><li>Focusing on interests induces problem solving because they are flexible and create satisfaction. </li></ul>
  29. 33. Invent Options for Mutual Gain <ul><li>Brainstorm method of advancing parties’ interests </li></ul><ul><li>Invent first, then decide </li></ul><ul><li>Link differences, priorities </li></ul><ul><li>Maximize shared interests </li></ul>
  30. 34. Separate People from the Problem <ul><li>Be unconditionally cooperative on process </li></ul><ul><ul><li>Good listening </li></ul></ul><ul><ul><li>Fair characterizations </li></ul></ul><ul><ul><li>Symbolic gestures </li></ul></ul>
  31. 35. Separate Problem from the People <ul><li>Be firm on fair outcomes </li></ul><ul><ul><li>Trade cooperation </li></ul></ul><ul><ul><li>Reason, be open to reason </li></ul></ul><ul><ul><li>Results need a fair, reasonable basis </li></ul></ul>
  32. 36. Problem Solving Negotiation <ul><li>“ Good luck and good negotiating, </li></ul><ul><li>Dave Landis </li></ul><ul><li>[email_address] </li></ul>

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