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  1. 1. ORANGE 2 Harvard Negotiation Styles Cooperative Negotiation The 6 principles of Harvard Negotiation Metholodogy PRESENTATION VIDEO 1 Guadalupe de la Mata
  2. 2. TODAY’S CLASS NEGOTIATION STYLES HARVARD METHODOLOGY The Six Principles of cooperative neogotiation (Harvard Methodology)  Main concepts  Keys to prepare for negotiation considering each of them  Real Examples (short videos) Lets experience it!: the Ugly Orange Case Study Guadalupe de la Mata 2
  3. 3. Negotiation Styles HIGH COLLABORATE ACCOMODATE Problem solved creatively, aiming for win-win Characteristics: Build friendly relationship Search for common interests Characteristics: Problem-solving behaviours Promote harmony Recognising both parties’ needs Avoid substantive differences Synergistic solutions Give into pressure to save relationship COMPROMISE Win-win becomes the main purpose of theCONCERN FOR RELATIONSHIP Place relationship above fairness of negotiator the outcomes Split the difference Characteristics: Meeting half way AVOID Look for trade offs DEFEAT Take whatever you can get/Inaction Accept half-way measures Be a winner at any cost/Competitive Characteristics: Aims to reduce conflict rather than problem solve Characteristics: Feeling of powerlessness synergistically Win-Lose competition Indifference to the result Pressure/Intimidation Resignation, surrender Adversarial relationships Take what the other party is willing to Defeating the other becomes a goal for the concede negotiator Withdraw & remove = behaviour of negotiator CONCERN FOR SUBSTANCE LOW HIGH Source: Rollin & Christine Glaser
  4. 4. Harvard Negotiation Project • Began in 1983 • In conjunction with MIT and Tufts • Negotiation art and a science
  5. 5. Getting to Yes AuthorsRoger Fisher Bruce Patton William Ury
  6. 6. Getting to Yes: 6 PRINCIPLES What do you really care about? The needs, concerns, goals, hopes and fears that motivate the parties INTERESTS: Ideas about how the parties might meet Promises made to build or their interests together. finalise agreement. COMMITMENT OPTIONS Basic building blocks of negotiation How do you deal with Steps each party could take to satisfy people issues? COMUNICATION ALTERNATIVES their own interests outside the current and RELATIONSHIP negotiation (BATNA)Prepare to communicate efficiently during the negotiation CRITERIA How can I persuade them they are being fairly treated? Criteria that the parties use to legitimise their perspectives. Guadalupe de la Mata 6
  8. 8. INTERESTS: OPTIONS ALTERNATIVES CRITERIA COMUNICATION RELATIONSHIP COMMITMENTSStarting point• Don’t Bargain Over Positions  Arguing over positions produces unwise outcomes  Arguing over positions is inefficient  Arguing over positions endangers an ongoing relationship  When there are many parties, positional bargaining is even worse  Being nice is no answer  There is an alternative… Guadalupe de la Mata 8
  9. 9. INTERESTS: OPTIONS ALTERNATIVES CRITERIA COMUNICATION RELATIONSHIP COMMITMENTSPrinciple 1. Interests The purpose of a negotiation is to satisfy your interest and the other party´s interests . POSITIONS • “WHAT YOU SAY YOU WANT” (DEMANDS, TERMS AND CONDITIONS, etc.) • A position is a way to satisfy interest, a mean to an end. INTERESTS • UNDERLYING MOTIVATIONS, NEEDS AND CONCERNS, FEARS AND ASPIRATIONS • The WHY we want something Negotiate the WHY….not the WHAT Guadalupe de la Mata 9
  10. 10. • First example of negotiation style.• FRc&feature=relmfu in this video 3.09’ al 4.17’• Watched it! Continue Guadalupe’s video Guadalupe de la Mata 10
  11. 11. Principle 1. Interest vs. positions Positional vs. Cooperative Negotiations Focusing on positions can lead to sub-optimal agreements Position B  Positions A and B are too far away for a mutually beneficial agreement Interests A Interests B  Interests A and B, as a Position A broader concept, allow for a common ground for Zone of agreement potential agreement Cooperative negotiations Fisher and Ury define negotiations as “Back and forth communication to reach agreement where some interests are shared and some interests are opposed. “Getting to Yes” Guadalupe de la Mata 11
  12. 12. Cooperative negotiation: Negotiating is not Compromising  The purpose of a negotiation is to satisfy your interest and the other parties interests  Joint problem solving: Both parties share the problem of trying to find an agreement that both can live with  Finding a good agreement, that does not leave potential joint gains on the table
  13. 13. Principle 1. Interests preparation UNDERTANDING Your interests: • Why do I want what I want? Am I sure? • My needs, concerns, goals, hopes and fears • Have I assigned priorities to what is really important for me? • Prepare yourself to communicate your interests clearly UNDERSTANDING Their interests • Make sure you understand the interests of the other side • Ask why? What is the purpose? • Their needs, concerns, goals, hopes and fears • Focus on interest throughout the negotiation: please, help me to understand your main concerns? • Put yourself on the other persons shoes, see what drives them Guadalupe de la Mata 13
  14. 14. OPTIONS
  15. 15. INTERESTS: OPTIONS ALTERNATIVES CRITERIA RELATIONSHIP COMMITMENTS Principle 2. OptionsThe range of possibities among which parties can reach anagreement Create options to satisfy interests. An agreement is better if it incorporates many options Brainstorming to come up with ideas and options that can meet the interests of both sides Do not evaluate them during brainstorming Guadalupe de la Mata 15
  16. 16. INTERESTS: OPTIONS ALTERNATIVES CRITERIA RELATIONSHIP COMMITMENTSPrinciple 2. Options preparation A Find ways to work together to maximize common benefits Broaden the options on the table, rather than look for a single answer. BE CREATIVE! Search for mutual gains. Invent ways to make their decision easy. Guadalupe de la Mata 16
  17. 17. INTERESTS: OPTIONS ALTERNATIVES CRITERIA RELATIONSHIP COMMITMENTSPrinciple 2. Options preparation B AVOID ENCOURAGE• Premature judgedment • Separate inventing from• Searching for the single deciding answer • (brainstorming)• The assumption of a • Consider fixed pie brainstorming with the• Thinking that ‘solving other side their problem is their problem’ Guadalupe de la Mata 17
  18. 18. INTERESTS: OPTIONS ALTERNATIVES CRITERIA RELATIONSHIP COMMITMENTSPrinciple 2. Options preparation C Look for mutual gain• Identify shared interests• Dovetail different interests • Any difference in interests? • Different beliefs? • Different values placed on time? • Different forecasts? • Differences in aversion to risk?• Ask for their preferences Guadalupe de la Mata 18
  20. 20. INTERESTS: OPTIONS ALTERNATIVES CRITERIA RELATIONSHIP COMMITMENTSPrinciple 3. AlternativesWhat I am going to do if we dont reach an agreement?• Deals I can take outside of the possible agreement• Look at all your alternatives and select the BEST• Know your BATNA You are going to negotiate with more Best CONFIDENCE if you know what you Alternative can do if the negotiation fails To a Negotiated Agreement Guadalupe de la Mata 20
  21. 21. BATNA. An example. 1In the first scenario, lets say that you are a buyer whogoes to a supplier to purchase some badly needed parts tocomplete a project.The supplier senses your urgency; his eyes begin to gleamwith anticipation. You want the lowest price possiblewhile he wants the higher price.You have no fallback position. You are both on the sameboat but the supplier is holding the oars, so guess whodecides where the boat makes land? Guadalupe de la Mata 21
  22. 22. BATNA. An example. 2On the other hand, say you go to the meeting prepared. Beforearranging the meet, you set up talks with 2 other suppliers whoare ready and able to handle all your needs.When you meet with the first supplier in this second scenario,you can calmly sit back in your chair, and allow the supplier tofinish his spiel.Now, watch how the supplier´s attitude changes when herealizes his competitors willingness to solve your problem. Youhave BATNA! The talks suddenly become more amenable. Guadalupe de la Mata 22
  23. 23. Principle 3. Alternatives PreparationYOUR BATNA THEIR BATNA• Before going into the negotiation explore • Think about their BATNA: What about other possibilities outside of it THEIR alternatives if you do not reach an• Once you have all potential alternatives, agreement? select one that is the Best Alternative • Prepare arguments to their BATNA: why a (BATNA) deal will be better for them than their• What can you do to improve your BATNA? BATNA Guadalupe de la Mata 23
  24. 24. INTERESTS: OPTIONS ALTERNATIVES CRITERIA RELATIONSHIP COMMITMENTSPrinciple 3. AlternativesPause video and watch video below, a second example of negotiation style. 3.28 – 9.18Watched it!Notice the resistance to think about their BATNAHow to help an account team to get ready for a sale?Know your walkaway alternativeWould you accept any deal whatsoever?We have finished it!See the results of having prepared BATNA in this third example 0:28 – 06.30Coment in the wall Guadalupe de la Mata 24