Problem Solving NegotiationDavid Landis
DefinitionA negotiation is a trade     -”I’ll do Y, if you’ll do X.”
Two Strategy Options• Seeking Advantage• Seeking Joint Gain
Advantage Seeking• Good short term results• Hard to exploit• Relatively easy to do
Advantage Seeking• Hard on relationships• Misses joint gain• Breeds reciprocity
Joint Gain Seeking• Expands the pie• Benefits grow over time• Builds relationships
Joint Gain Seeking• Risks exploitation• Takes more time and preparation• Requires skill to be effective
Taming the Advantage Seeker• Align your incentives• Cooperation on terms is reciprocal, not  individual• Lift the horizon•...
Trust:• A two-sided coin: trusting, being trusted• A shared problem• Some assume trustworthiness• Some assume untrustworth...
Being Trustworthy• Say what you mean, mean what you say• Does not require full disclosure• Worth its weight in gold
Trusting• Operate independent of trust• Reciprocal consequences
3 Characteristics ofNegotiation• Recurring pattern• Tension• Asymmetrical information
Role #5 - Observer• Don’t give away information or reactions  – just watch.• Watch for exaggerations, threats, offers  and...
Role #1Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”
Role #2Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”
Role #3Your mother says, “Go to the store and bring me an orange. Family is coming over tomorrow, I’m going to peel the or...
Role #4Your mother says, “Go to the store, bring me an orange. Family is coming over tomorrow. I’m going to peel the orang...
5 into 2• No division of items• No side deals• Must divide all five between you• Divide in 2 minutes or get nothing• Item:...
5 into 2• All the same rules• Items:
5 into 2• All the same rules• Items: • 2 tickets, great concert • Designer jacket • Glider flight over Grand Canyon • Eleg...
Worker’s Comp Deal                   Business   LaborDr. ChoiceManaged CareIndexed BenefitsSafety Comm./Inspectors
Worker’s Comp Deal                   Business   LaborDr. Choice         YesManaged Care       YesIndexed Benefits   NoSafe...
Worker’s Comp Deal                   Business   LaborDr. Choice         Yes        NoManaged Care       Yes        NoIndex...
Worker’s Comp Deal                   Business   LaborDr. Choice         Yes   1    NoManaged Care       Yes   2    NoIndex...
Worker’s Comp Deal                   Business   LaborDr. Choice         Yes   1    No      3Managed Care       Yes   2    ...
5 Tools for Mutual Gain• Interests before positions• Priorities traded across differences• Fair process norms• Objective c...
Use Objective Criteria• Learn marketplace• Frame dispute as a joint search for fair  standards• Adjust standards for uniqu...
Focus on Interests, NotPositions• Interests=underlying motivations   – The answer to “why?”• Positions=“yes or no” options...
Invent Options for Mutual Gain• Brainstorm method of advancing parties’  interests• Invent first, then decide• Link differ...
Separate People from the ProblemBe unconditionally cooperative on process  – Good listening  – Fair characterizations  – S...
Separate Problem from the PeopleBe firm on fair outcomes  – Trade cooperation  – Reason, be open to reason  – Results need...
Problem Solving Negotiation   “Good luck and good negotiating,            Dave Landis          dlandis2@unl.edu
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Prob solvingnegotiationgeneric
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Prob solvingnegotiationgeneric

  1. 1. Problem Solving NegotiationDavid Landis
  2. 2. DefinitionA negotiation is a trade -”I’ll do Y, if you’ll do X.”
  3. 3. Two Strategy Options• Seeking Advantage• Seeking Joint Gain
  4. 4. Advantage Seeking• Good short term results• Hard to exploit• Relatively easy to do
  5. 5. Advantage Seeking• Hard on relationships• Misses joint gain• Breeds reciprocity
  6. 6. Joint Gain Seeking• Expands the pie• Benefits grow over time• Builds relationships
  7. 7. Joint Gain Seeking• Risks exploitation• Takes more time and preparation• Requires skill to be effective
  8. 8. Taming the Advantage Seeker• Align your incentives• Cooperation on terms is reciprocal, not individual• Lift the horizon• Develop “walk away” alternative
  9. 9. Trust:• A two-sided coin: trusting, being trusted• A shared problem• Some assume trustworthiness• Some assume untrustworthiness
  10. 10. Being Trustworthy• Say what you mean, mean what you say• Does not require full disclosure• Worth its weight in gold
  11. 11. Trusting• Operate independent of trust• Reciprocal consequences
  12. 12. 3 Characteristics ofNegotiation• Recurring pattern• Tension• Asymmetrical information
  13. 13. Role #5 - Observer• Don’t give away information or reactions – just watch.• Watch for exaggerations, threats, offers and counter-offers.• Notice questions particularly.
  14. 14. Role #1Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”
  15. 15. Role #2Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”
  16. 16. Role #3Your 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.”
  17. 17. Role #4Your 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.”
  18. 18. 5 into 2• No division of items• No side deals• Must divide all five between you• Divide in 2 minutes or get nothing• Item: –5 crisp $1,000 bills
  19. 19. 5 into 2• All the same rules• Items:
  20. 20. 5 into 2• All the same rules• Items: • 2 tickets, great concert • Designer jacket • Glider flight over Grand Canyon • Elegant, fine French meal for 2 • Martha Stewart cooks and cleans
  21. 21. Worker’s Comp Deal Business LaborDr. ChoiceManaged CareIndexed BenefitsSafety Comm./Inspectors
  22. 22. Worker’s Comp Deal Business LaborDr. Choice YesManaged Care YesIndexed Benefits NoSafety Comm./ NoInspectors
  23. 23. Worker’s Comp Deal Business LaborDr. Choice Yes NoManaged Care Yes NoIndexed Benefits No YesSafety Comm./ No YesInspectors
  24. 24. Worker’s Comp Deal Business LaborDr. Choice Yes 1 NoManaged Care Yes 2 NoIndexed Benefits No 3 YesSafety Comm./ No 4 YesInspectors
  25. 25. Worker’s Comp Deal Business LaborDr. Choice Yes 1 No 3Managed Care Yes 2 No 4Indexed Benefits No 3 Yes 1Safety Comm./ No 4 Yes 2Inspectors
  26. 26. 5 Tools for Mutual Gain• Interests before positions• Priorities traded across differences• Fair process norms• Objective criteria• Trust through authentic communication
  27. 27. Use Objective Criteria• Learn marketplace• Frame dispute as a joint search for fair standards• Adjust standards for unique circumstances• Open with an offer you can justify
  28. 28. Focus on Interests, NotPositions• Interests=underlying motivations – The answer to “why?”• Positions=“yes or no” options – The answer to “how much?”• Focusing on interests induces problem solving because they are flexible and create satisfaction.
  29. 29. Invent Options for Mutual Gain• Brainstorm method of advancing parties’ interests• Invent first, then decide• Link differences, priorities• Maximize shared interests
  30. 30. Separate People from the ProblemBe unconditionally cooperative on process – Good listening – Fair characterizations – Symbolic gestures
  31. 31. Separate Problem from the PeopleBe firm on fair outcomes – Trade cooperation – Reason, be open to reason – Results need a fair, reasonable basis
  32. 32. Problem Solving Negotiation “Good luck and good negotiating, Dave Landis dlandis2@unl.edu

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