SISCo Study Tour Mutual Gains Approach 27 10-10


Published on

Published in: Business, Economy & Finance
  • 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

No notes for slide

SISCo Study Tour Mutual Gains Approach 27 10-10

  1. 1. Workshop Mutual Gains Approach Marjolein Stamsnijder, Nirov 27 oktober 2010
  2. 2. Succesfull negotiation 1. Good outcome -- for all parties • interests met • Seen as fair 2. Efficiently reached • time not wasted • nothing left on table 3. Amicably ended • relationship enhanced • future dealings easier
  3. 3. Conventional wisdom on negotiaton • Bid high • Trade concessions for concessions-grudgingly • Do not reveal anything – ‘pokerface’ • Show no empathy - undermine the legitimacy of their claims • Dirty tricks - undermine them psychologically
  4. 4. Erodes trust: • You make yourself a liar from the beginning; what you say you need isn’t what you actually need Undermines accuracy of information (on both sides): • Hoard information instead of sharing it • Attempt to devalue and undermine the other side’s information Problems with this appraoch
  5. 5. Assumptions behind the conventional wisdom Win/Lose - Zero-sum situation: Their gain is my loss The size of the pie is fixed Negotiation is a test of will - this model applies (maybe) to: Strangers People you hope never to see again
  6. 6. BATNA Five key principles Know your BATNA (Best Alternative to a Negotiated Agreement) Focus on Interests, not Positions Invent Options for Mutual Gains Use Objective Criteria Build Relationships Along with Agreements
  7. 7. What’s a BATNA? • BATNA: Best Alternative to a Negotiated Agreement • Best alternative action you are able to pursue away from the table • When you know your BATNA, you know the minimum you should accept at the table
  8. 8. Use Your BATNA • Analyze your BATNA • Improve your BATNA • Don’t blab your BATNA • Analyze their BATNA • Help them reality-check their BATNA
  9. 9. Focus on Interests, Not Positions Position = What you want Interest = Why you want it • In preparation, analyze your interests, and theirs • At the table, explain your interests • Ask questions & listen to discover their interests
  10. 10. How to Explore Interests? Ask and be ready to answer: • “What are the key things you need from an agreement?” • “Why is that important to you?” • “Is it really something else that concerns you?” • “Would we be moving in the right direction if...?”
  11. 11. Invent Options For Mutual Gains Conventional Wisdom: – Trade positions, not information – Assume you’re only dividing the pie Mutual Gains Approach: – Explore interests on both sides – Suspend criticism – Invent without committing – Generate options and packages that “make the pie larger” – Use a neutral party to exchange ideas
  12. 12. Use Objective Criteria Problem: How to choose among options? Risk: Revert to positional bargaining Strategy: Find mutually acceptable criteria or procedures: • Cost effectiveness • Reciprocity • Equal treatment • Implement ability • Market value • Precedent • Risk • Advice of respected or expert third party
  13. 13. Getting to Criteria • Ask Questions: • How did you arrive at that? • What is the theory behind this? • What makes that fair? • How are others (people, organizations) handling this problem? • Maintain creative mode • Behave to build trust
  14. 14. Build Relationships Along with Agreement • Be trustworthy: say what you mean and mean what you say • Recognize legitimacy of their interests • Balance empathy and assertiveness • Address difficult behavior, don’t escalate it • Recognize that to “separate the people from the problem” you may have to deal with: history, perceptions, emotions, communication • Knowing your BATNA is your protection
  15. 15. Exercise: Getting to know each others interests instead of positions Groups of three people 1. ask for interest 2. give answers 3. observe Switch after 10 minutes
  16. 16. -What did you see and hear? -How was it to do this? -Dit you get to intrests? Evaluation
  17. 17. • Thank you for your attention