Win Win Negotiations


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Negotiations are part of life

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Win Win Negotiations

  1. 1. Win Win Negotiations <ul><li>Negotiation is a part of our life </li></ul><ul><li>Everyone is negotiating something with some one everyday. </li></ul><ul><li>Negotiation is a back and forth communication when you and other side is trying to get into some agreement on something that both have interest </li></ul><ul><li>Negotiations are required when differences are there to iron out. </li></ul><ul><li>Conventional negotiations makes parties feel that they have not got the real bargain that they wanted. </li></ul>
  2. 2. Two traditional types of negotiators <ul><li>Soft and Hard </li></ul><ul><li>The soft negotiator wants to avoid personal conflict and makes concessions readily to reach agreement. He wants and amicable solution but at the end he feels exploited and bitter </li></ul><ul><li>Hard negotiator sees any situation as a contest of wills. Takes the extreme position. He often exhaust his resources and harms his relationship with the other side. </li></ul><ul><li>Both of these types finally settle by giving up some demands or giving trade offs – Compromising is the name of the game. </li></ul>
  3. 3. Two type of Bargaining – Positional and Merit base <ul><li>Soft and Hard bargainers are found in Positional Bargaining </li></ul><ul><li>A typical positional bargaining could go on for many rounds. </li></ul><ul><li>They will dig on to their positions and mere ego may prevent them coming to an agreement. </li></ul><ul><li>It is very likely that the relationship between the parties get sour and unpleasant </li></ul><ul><li>They will stand on positions that are far apart from what they are really going to agree and waste so much of time and energy. </li></ul>
  4. 4. <ul><li>When you dig more into positions less attention will be given to understanding the real underlying issues </li></ul><ul><li>The more you clarify and defend your position from attack, you become more committed to your position </li></ul><ul><li>The more you argue about the impossibility of accepting others offer, it becomes more difficult for you to change your position even if you are enlightened about the reality </li></ul>
  5. 5. <ul><li>Your ego become identified with your position and as result a new interest of “saving face” in reconciling future action with past positions. </li></ul><ul><li>One or both parties may put many reasons to delaying discussions </li></ul>
  6. 6. Typical positioning bargaining <ul><li>We need a 20% increase in our salary </li></ul><ul><li>Oh come on. You are making so much of profit from the operations </li></ul><ul><li>Well our minimum is 17.5% </li></ul><ul><li>No way it is not acceptable. We cant settle from 20% to 7.5%. It is a shame </li></ul><ul><li>If you can give 12.5% after six months why not give it now and increase it to 17.5% after </li></ul><ul><li>Increase our salary now we will give you increased production </li></ul><ul><li>No! it is very unrealistic </li></ul><ul><li>OK! Quote a realistic figure </li></ul><ul><li>No it is not a realistic figure. How about 7.5% </li></ul><ul><li>You are very hard on your demand. Lets be flexible. We will give you 7.5% for the first six months and if you do well we will increase it to 12.5% after </li></ul><ul><li>No we want to see whether you will give us an increase production </li></ul>
  7. 7. <ul><li>Last time also you promised like that and you never increased </li></ul><ul><li>You the management. You did not do anything but wanted us to do everything </li></ul><ul><li>It is not us that were lazy. </li></ul><ul><li>We were positive from the beginning but you were the negative lot. </li></ul><ul><li>You showed that by not providing us the new machines and tools. </li></ul><ul><li>We have a legal right to have a trade union. </li></ul><ul><li>It was not our fault. You did not increase the production </li></ul><ul><li>You were lazy and did not work hard </li></ul><ul><li>You do not cooperate, your negative attitude is the biggest problem </li></ul><ul><li>You do not have any idea of your responsibilities. You always want to take out the maximum from the company. Trade Unions should be abolished. </li></ul>
  8. 8. Multi party negotiations <ul><li>When there are more than two parties, positional bargaining becomes more difficult </li></ul><ul><li>Different parties may have different agendas ( open or hidden) </li></ul><ul><li>There could be problems inside the parties </li></ul><ul><li>They may get into different groups and blocks and will have new demands on such common fronts </li></ul>
  9. 9. New Method of Negotiations <ul><li>Method of Principled Negotiation – (MPN) or Negotiation on Merit -Developed at Harvard Negotiation Project- Harvard University - USA </li></ul><ul><li>It does not want party to become hard or soft but it wants both parties to become hard on facts and soft on people </li></ul>
  10. 10. Comparative Analysis soft and Hard in positional bargaining and the MPN method Goal is wise outcome reached efficiently and amicably Goal is victory The goal is agreement Parties are problem solvers Parties are adversaries Parties are friends MPN Hard Soft
  11. 11. Focus on interest not on positions Dig on to your position Change your position easily Proceed independent of trust Distrust others Trust others Be soft on people and hard on problem Be hard on problem and people Soft on people and problem
  12. 12. Soft- Hard - MPN Invent options for mutual gain Demand one sided gains Accept one sided losses Avoid having a bottom line Mislead as to bottom line Disclose your bottom line Explore interest Make threats Make offers
  13. 13. Soft- Hard - MPN Insists on using objective criteria Insists on position Insists on agreement Develop multiple answers to choose from Search for single answer – the one you will accept Search for single answer- one they will accept Yield to principle not to pressure Apply pressure Yield to pressure
  14. 14. There are five basic tenets in MPN <ul><li>Do not bargain over positions ( Already discussed) </li></ul><ul><li>Separate People from the problem </li></ul><ul><li>Focus on interest Not on positions </li></ul><ul><li>Invent options for mutual gain </li></ul><ul><li>Insists on using objective ( fair) criteria </li></ul>
  15. 15. Separating People from the problem <ul><li>Before separating People from the problem, try and understand people - The first of all we need to understand that human beings are not machines or computers. We are creatures of strong emotions who often have different perceptions. </li></ul><ul><li>Emotions get mixed up with facts of the problem </li></ul><ul><li>When positions are taken it becomes worse as peoples egos become identified with the position. </li></ul><ul><li>Therefore: </li></ul><ul><li>Make emotions explicit and acknowledge them </li></ul><ul><ul><li>Eg. You know people on our side feel that we have been discriminated. We are very upset over it. Do you feel the same. </li></ul></ul><ul><li>. </li></ul>
  16. 16. <ul><li>Allow other side to let off steam </li></ul><ul><li>let other party blame you or make an angry speech listen patiently and let them release their frustration or anger. Do not react or Do not argue or go out of the room </li></ul><ul><li>Use symbolic gestures </li></ul><ul><li>A note of sympathy, statement of regret, small gift could take a long way </li></ul>
  17. 17. <ul><li>Communication problems of people </li></ul><ul><li>Misunderstanding and misinterpretation </li></ul><ul><li>Language barrier </li></ul><ul><li>Interest in listening to other side </li></ul><ul><li>Overly busy about framing your argument </li></ul><ul><li>Listen actively, reiterate to indicate that you have understood what they say, get clarifications </li></ul><ul><li>Face the problem, not the people, </li></ul>
  18. 18. Focus on interest not positions <ul><li>Problem in a negotiation does not lie in the conflicting positions but in the interest. </li></ul><ul><li>Conflict is in the interest - between each sides needs, desires, concerns and fears, security. </li></ul><ul><li>Positions – Separate State- Unitary State </li></ul><ul><li>Strike – foreclose mortgage-closing the work place </li></ul><ul><li>Conflict - economic rights, language rights, loosing land, resources, violence </li></ul><ul><li>Salary , Drop in motivation, attitudes, effective use of resources, management style, approach to collecting the loan and interest </li></ul>
  19. 19. <ul><li>Reconcile interests rather than compromising between positions </li></ul><ul><li>Behind opposed positions lie shared and compatible interest </li></ul><ul><li>Eg. Both Tamils and Sinhalese wants to develop the economy, live all over the country, have no bombs, spend less on military, use their language to do their day to day work, educate their children, be proud as a nation, good relations with each other. </li></ul>
  20. 20. <ul><li>Take more time and care in identifying each others interest </li></ul><ul><li>Each side may have multiple interest not just one. </li></ul><ul><li>Security, economic well being, a sense of belongingness, recognition, control over ones self ( Maslows Hierarchy) </li></ul><ul><li>What is true for an individual is equally true for groups and nations </li></ul>
  21. 21. <ul><li>Make your own list of interest </li></ul><ul><li>Acknowledge their interest as a part of the problem </li></ul><ul><li>Put the problem before your answer </li></ul><ul><li>Look forward not backwards </li></ul><ul><li>Be firm but open to fresh ideas </li></ul>
  22. 22. Invent options for mutual gain <ul><li>Two kids quarreled over an orange and finally agreed to divide the orange in half, </li></ul><ul><li>The first child took one half, ate the fruit and threw away the peel. </li></ul><ul><li>The other child took the other half and threw away the fruit and used the peel for making candid peel for a cake. </li></ul><ul><li>Many negotiators go home with half of the orange when they could have had more. </li></ul>
  23. 23. “ solving their problem is their responsibility” <ul><li>Most of the negotiators are concerned about their own immediate problems </li></ul><ul><li>We have got enough problems of our own let them think of their problems </li></ul><ul><li>This lets negotiators to develop partisan positions, partisan arguments and one sided solutions. </li></ul><ul><li>They tend to think that I cannot satisfy you without loosing my own position </li></ul>
  24. 24. Invent creative options for the problem <ul><li>Invent ideas that could be considered in general </li></ul><ul><ul><li>Inventing new ideas is something that you do not have in mind currently. Have a brain storming session with your group or colleagues </li></ul></ul><ul><ul><li>If possible consider brainstorming with the other side??? </li></ul></ul><ul><ul><li>A lot of ideas will help to find answers that you did not see before that </li></ul></ul>
  25. 25. Look through the eyes of different experts Look for mutual gain Identify shared interest Differences between two parties may not always create problems but instead they could lead to an answer ( orange story) Make or facilitate to make their decisions easy
  26. 26. Insists on using objective ( fair) criteria <ul><li>Whatever you understand or agree on the reconciling interest, importance of relationship of the other side you always face the harsh reality of interest that conflict </li></ul><ul><li>Eg. You want the salary to be increased, you want the areas to be exclusively for you, you do not want to give up an area of land etc. </li></ul>
  27. 27. Negotition logistics <ul><li>Have an independent venue </li></ul><ul><li>If possible have an independent facilitator </li></ul><ul><li>Sit as problems solvers and not as opposing parties. </li></ul><ul><li>Talks before talks to discuss what to include in discussions or to include in the in the agenda </li></ul><ul><li>Have an agenda </li></ul>
  28. 28. <ul><li>Include a summary of the whole case in the agenda </li></ul><ul><li>Allocate times in the agenda for different topics/matters </li></ul><ul><li>Read the agenda and give a copy of agenda to both parties </li></ul><ul><li>Use your mother tongue or a language you are very fluent for negotiations </li></ul>
  29. 29. <ul><li>Do not be in a hurry to finish matters within the time frames given. </li></ul><ul><li>If time is not enough agree to disagree on a specific area and go to the other topic. </li></ul><ul><li>Make a list of areas that you agreed and disagreed </li></ul><ul><li>Have another round of talks to deal with the matters disagreed. </li></ul>
  30. 30. <ul><li>Talks may fail at once but do not give up </li></ul><ul><li>Have many rounds of talks until you come to an acceptable solution. </li></ul><ul><li>Keep up the spirits and momentum that you are jointly involved in solving a problem common to both. </li></ul><ul><li>Decide jointly what you are going to give it to the media. </li></ul><ul><li>Do not let everybody make statements to the media. Have one spokesperson. </li></ul><ul><li>Do not talk against what you decided to talk or what you decided not to talk. </li></ul>
  31. 31. <ul><li>Have a friendly attitude. Talk, make jokes, dine and dance together </li></ul><ul><li>Celebrate success achieved together. </li></ul><ul><li>Find out the competitive advantage for the mutual benefit. </li></ul><ul><li>Tortoise and hare story </li></ul>
  32. 32. How to be a good negotiator <ul><li>Get involved </li></ul><ul><li>It is a skill that you have to develop by doing it. No other way! </li></ul><ul><li>Thanks and good luck. </li></ul><ul><li>Take this idea, read more, involve in negotiations, develop skills and teach friends, colleagues and others about this important subject. We all have a responsibility to create a better society- Maxwell Ranasinghe </li></ul>