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•...
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 of Negotiation• Recurring Dynamics• Tension• Asymmetrical information
Recurring Pattern• Preparation/Aspiration            Introduction            Information exchange            Offer        ...
Tension• Predictable at offer stage• Predictable with counters• Often grows as difference narrows
Asymmetrical Information• Information affects aspiration• Shared Information• Discoverable information• Secrets• Leakage
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:  – 2 tickets, great concert  – Designer jacket  – Glider flight over Grand Canyon  – ...
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    ...
Shared Interests – valued alike• An 800 phone number for workers’ rights.• Better enforcement against companies  without w...
Tools for Mutual Gain• Interests before positions• Priorities traded across differences• Fair process norms• Objective cri...
Conflicting Interests• Definition:  – Valued alike, in opposition (money is the    most common• Strategy  – Use objective ...
Complementary Interests• Definition:  – Elements valued differently  – Need at least two to link• Strategy  – discover, li...
Shared Interests• Definition:  – Valued alike, good for both• Strategy  – Discover, maximize  – No need to link
Focus on Interests before Positions • Interests = underlying motivations    – The answer to “why?” • Positions = “yes or n...
Invent Options for Mutual Gain• Brainstorm method of advancing parties’  interests• Invent first, then decide• Link differ...
Use Objective Criteria• Learn marketplace• Frame dispute as a joint search for fair  standards• Adjust standards for uniqu...
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...
Advantage Seeking comesfrom…• High aspiration• Stingy asymmetrical concessions• Insistent counteroffers• Information manip...
The 7 Rules of Hard Bargaining•   Don’t make the first offer•   Don’t accept the first offer•   Don’t make the first conce...
The 7 Rules of Hard Bargaining•   Don’t concede at the same rate•   Ignore their deadlines, create your own•   Ask for som...
Preferred Group Practices…1. Identify and agree on            7. Visual display of information,process norms              ...
Problem Solving Negotiation   “Good luck and good negotiating,            Dave Landis       dlandis@lincoln.ne.gov
Basic psn 2012
Basic psn 2012
Basic psn 2012
Basic psn 2012
Basic psn 2012
Basic psn 2012
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Basic psn 2012

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Basic psn 2012

  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. Being Trustworthy• Say what you mean, mean what you say• Does not require full disclosure• Worth its weight in gold
  10. 10. Trusting• Operate independent of trust• Reciprocal consequences
  11. 11. 3 Characteristics of Negotiation• Recurring Dynamics• Tension• Asymmetrical information
  12. 12. Recurring Pattern• Preparation/Aspiration Introduction Information exchange Offer Counters Stalemate/Settlement • Post-negotiation
  13. 13. Tension• Predictable at offer stage• Predictable with counters• Often grows as difference narrows
  14. 14. Asymmetrical Information• Information affects aspiration• Shared Information• Discoverable information• Secrets• Leakage
  15. 15. Role #5 - Observer• Don’t give away information or reactions – just watch.• Watch for exaggerations, threats, offers and counter-offers.• Notice questions particularly.
  16. 16. Role #1Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”
  17. 17. Role #2Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”
  18. 18. 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.”
  19. 19. 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.”
  20. 20. 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
  21. 21. 5 into 2• All the same rules• Items: – 2 tickets, great concert – Designer jacket – Glider flight over Grand Canyon – Elegant fine French meal and wine for 2 – Martha Stewart cooks and cleans
  22. 22. Worker’s Comp Deal Business LaborDr. ChoiceManaged CareIndexed BenefitsSafety Comm./Inspectors
  23. 23. Worker’s Comp Deal Business LaborDr. Choice YesManaged Care YesIndexed Benefits NoSafety Comm./ NoInspectors
  24. 24. Worker’s Comp Deal Business LaborDr. Choice Yes NoManaged Care Yes NoIndexed Benefits No YesSafety Comm./ No YesInspectors
  25. 25. Worker’s Comp Deal Business LaborDr. Choice Yes 1 NoManaged Care Yes 2 NoIndexed Benefits No 3 YesSafety Comm./ No 4 YesInspectors
  26. 26. 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
  27. 27. Shared Interests – valued alike• An 800 phone number for workers’ rights.• Better enforcement against companies without work comp.• Informal dispute resolution method.• Higher contribution from unsafe businesses.
  28. 28. Tools for Mutual Gain• Interests before positions• Priorities traded across differences• Fair process norms• Objective criteria• Trust through authentic communication
  29. 29. Conflicting Interests• Definition: – Valued alike, in opposition (money is the most common• Strategy – Use objective criteria to insure fair results
  30. 30. Complementary Interests• Definition: – Elements valued differently – Need at least two to link• Strategy – discover, link, maximize
  31. 31. Shared Interests• Definition: – Valued alike, good for both• Strategy – Discover, maximize – No need to link
  32. 32. Focus on Interests before Positions • 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.
  33. 33. Invent Options for Mutual Gain• Brainstorm method of advancing parties’ interests• Invent first, then decide• Link differences, priorities• Maximize shared interests
  34. 34. 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
  35. 35. Separate People from the ProblemBe unconditionally cooperative on process – Good listening – Fair characterizations – Symbolic gestures
  36. 36. Separate Problem from the PeopleBe firm on fair outcomes – Trade cooperation – Reason, be open to reason – Results need a fair, reasonable basis
  37. 37. Advantage Seeking comesfrom…• High aspiration• Stingy asymmetrical concessions• Insistent counteroffers• Information manipulation & leveraging
  38. 38. The 7 Rules of Hard Bargaining• Don’t make the first offer• Don’t accept the first offer• Don’t make the first concession• Don’t concede the same size
  39. 39. The 7 Rules of Hard Bargaining• Don’t concede at the same rate• Ignore their deadlines, create your own• Ask for something extra for agreement
  40. 40. Preferred Group Practices…1. Identify and agree on 7. Visual display of information,process norms options, etc2. Facilitation, hear everyone 8. Listening for threads of agreement3. Create problem statement 9. Recasting solutions in search of broad consensus4. Learn interests and priorities 10. Late commitments, broad consensus5. Develop multiple options 11. Careful review of agreement6. Link differences for joint gain 12. Celebrate the agreement
  41. 41. Problem Solving Negotiation “Good luck and good negotiating, Dave Landis dlandis@lincoln.ne.gov

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