Catalytic leader 2012

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Catalytic leader 2012

  1. 1. Problem Solving Negotiation for the Catalytic Leader Chinook Institute 2012 David Landis
  2. 2. Definition A negotiation is a trade - “I’ll do Y, if you’ll do X.”
  3. 3. <ul><li>“ Stimulating a productive group process requires a strong set of negotiation skills...” </li></ul><ul><li>Jeff Luke </li></ul><ul><li>“ Catalytic Leadership” </li></ul>
  4. 4. Two Strategy Options <ul><li>Seeking Advantage </li></ul><ul><li>Seeking Joint Gain </li></ul>
  5. 5. Advantage Seeking <ul><li>Good short term results </li></ul><ul><li>Hard to exploit </li></ul><ul><li>Relatively easy to do </li></ul>
  6. 6. Advantage Seeking <ul><li>Hard on relationships </li></ul><ul><li>Misses joint gain </li></ul><ul><li>Breeds reciprocity </li></ul>
  7. 7. Joint Gain Seeking <ul><li>Expands the pie </li></ul><ul><li>Benefits grow over time </li></ul><ul><li>Builds relationships </li></ul>
  8. 8. Joint Gain Seeking <ul><li>Risks exploitation </li></ul><ul><li>Takes more time and preparation </li></ul><ul><li>Requires skill to be effective </li></ul>
  9. 9. Taming the Advantage Seeker <ul><li>Align your incentives </li></ul><ul><li>Cooperation on terms is reciprocal, not individual </li></ul><ul><li>Lift the horizon </li></ul><ul><li>Develop “walk away” alternative </li></ul>
  10. 10. Trust <ul><li>“ Trust is a fundamental ingredient in public leadership.” </li></ul><ul><li>“ Facilitation and negotiation of agreements are especially hard to forge when distrust prevails.” </li></ul><ul><li>Jeff Luke </li></ul><ul><li>“ Catalytic Leadership” </li></ul>
  11. 11. Being Trustworthy <ul><li>Say what you mean, mean what you say </li></ul><ul><li>Does not require full disclosure </li></ul><ul><li>Worth its weight in gold </li></ul>
  12. 12. Trusting <ul><li>Operate independent of trust </li></ul><ul><li>Reciprocal consequences </li></ul>
  13. 13. 3 Characteristics of Negotiation <ul><li>Asymmetrical information </li></ul><ul><li>Tension </li></ul><ul><li>Recurring Dynamics </li></ul>
  14. 14. Recurring Pattern <ul><li>Preparation/Aspiration </li></ul><ul><li>Introduction </li></ul><ul><li>Information exchange </li></ul><ul><li>Offer </li></ul><ul><li>Counters </li></ul><ul><li>Stalemate/Settlement </li></ul><ul><li>Post-negotiation </li></ul>
  15. 15. Tension <ul><li>Predictable at offer stage </li></ul><ul><li>Predictable with counters </li></ul><ul><li>Often grows as difference narrows </li></ul>
  16. 16. Asymmetrical Information <ul><li>Information affects aspiration </li></ul><ul><li>Shared Information </li></ul><ul><li>Discoverable information </li></ul><ul><li>Secrets </li></ul><ul><li>Leakage </li></ul>
  17. 18. Role #5 - Observer <ul><li>Don’t give away information or reactions – just watch. </li></ul><ul><li>Watch for exaggerations, threats, offers and counter-offers. </li></ul><ul><li>Notice questions particularly. </li></ul>
  18. 20. Role #1 <ul><li>Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.” </li></ul>
  19. 22. Role #2 <ul><li>Your mother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.” </li></ul>
  20. 24. Role #3 <ul><li>Your 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.” </li></ul>
  21. 26. Role #4 <ul><li>Your 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.” </li></ul>
  22. 28. 5 into 2 <ul><li>No division of items </li></ul><ul><li>No side deals </li></ul><ul><li>Must divide all five between you </li></ul><ul><li>Divide in 2 minutes or get nothing </li></ul><ul><li>Item: </li></ul><ul><ul><li>5 crisp $1,000 bills </li></ul></ul>
  23. 29. 5 into 2 <ul><li>All the same rules </li></ul><ul><li>Items: </li></ul><ul><ul><li>2 tickets, great concert </li></ul></ul><ul><ul><li>Designer jacket </li></ul></ul><ul><ul><li>Glider flight over Grand Canyon </li></ul></ul><ul><ul><li>Elegant fine French meal and wine for 2 </li></ul></ul><ul><ul><li>Martha Stewart cooks and cleans </li></ul></ul>
  24. 30. Worker’s Comp Deal Business Labor Dr. Choice Managed Care Indexed Benefits Safety Comm./ Inspectors
  25. 31. Worker’s Comp Deal Business Labor Dr. Choice Yes Managed Care Yes Indexed Benefits No Safety Comm./ Inspectors No
  26. 32. Worker’s Comp Deal Business Labor Dr. Choice Yes No Managed Care Yes No Indexed Benefits No Yes Safety Comm./ Inspectors No Yes
  27. 33. Worker’s Comp Deal Business Labor Dr. Choice Yes 1 No Managed Care Yes 2 No Indexed Benefits No 3 Yes Safety Comm./ Inspectors No 4 Yes
  28. 34. Worker’s Comp Deal Business Labor Dr. Choice Yes 1 No 3 Managed Care Yes 2 No 4 Indexed Benefits No 3 Yes 1 Safety Comm./ Inspectors No 4 Yes 2
  29. 35. Shared Interests – valued alike <ul><li>An 800 phone number for workers’ rights. </li></ul><ul><li>Better enforcement against companies without work comp. </li></ul><ul><li>Informal dispute resolution method. </li></ul><ul><li>Higher contribution from unsafe businesses. </li></ul>
  30. 36. Tools for Mutual Gain <ul><li>Interests before positions </li></ul><ul><li>Priorities traded across differences </li></ul><ul><li>Fair process norms </li></ul><ul><li>Objective criteria </li></ul><ul><li>Trust through authentic communication </li></ul>
  31. 37. <ul><li>“ Strategic thinking requires the capacity to recognize shared, complementary and conflicting interests.” </li></ul><ul><li>- Jeff Luke </li></ul><ul><li>“ Catalytic Leadership” </li></ul>
  32. 38. Conflicting Interests <ul><li>Definition: </li></ul><ul><ul><li>Valued alike, in opposition (money is the most common </li></ul></ul><ul><li>Strategy </li></ul><ul><ul><li>Use objective criteria to insure fair results </li></ul></ul>
  33. 39. Complementary Interests <ul><li>Definition: </li></ul><ul><ul><li>Elements valued differently </li></ul></ul><ul><ul><li>Need at least two to link </li></ul></ul><ul><li>Strategy </li></ul><ul><ul><li>discover, link, maximize </li></ul></ul>
  34. 40. Shared Interests <ul><li>Definition: </li></ul><ul><ul><li>Valued alike, good for both </li></ul></ul><ul><li>Strategy </li></ul><ul><ul><li>Discover, maximize </li></ul></ul><ul><ul><li>No need to link </li></ul></ul>
  35. 41. Focus on Interests before Positions <ul><li>Interests = underlying motivations </li></ul><ul><ul><li>The answer to “why?” </li></ul></ul><ul><li>Positions = “yes or no” options </li></ul><ul><ul><li>The answer to “how much?” </li></ul></ul><ul><li>Focusing on interests induces problem solving because they are flexible and create satisfaction. </li></ul>
  36. 42. Invent Options for Mutual Gain <ul><li>Brainstorm method of advancing parties’ interests </li></ul><ul><li>Invent first, then decide </li></ul><ul><li>Link differences, priorities </li></ul><ul><li>Maximize shared interests </li></ul>
  37. 43. Use Objective Criteria <ul><li>Learn marketplace </li></ul><ul><li>Frame dispute as a joint search for fair standards </li></ul><ul><li>Adjust standards for unique circumstances </li></ul><ul><li>Open with an offer you can justify </li></ul>
  38. 44. Separate People from the Problem <ul><li>Be unconditionally cooperative on process </li></ul><ul><ul><li>Good listening </li></ul></ul><ul><ul><li>Fair characterizations </li></ul></ul><ul><ul><li>Symbolic gestures </li></ul></ul>
  39. 45. Separate Problem from the People <ul><li>Be firm on fair outcomes </li></ul><ul><ul><li>Trade cooperation </li></ul></ul><ul><ul><li>Reason, be open to reason </li></ul></ul><ul><ul><li>Results need a fair, reasonable basis </li></ul></ul>
  40. 46. Advantage Seeking comes from… <ul><li>High aspiration </li></ul><ul><li>Stingy asymmetrical concessions </li></ul><ul><li>Insistent counteroffers </li></ul><ul><li>Information manipulation & leveraging </li></ul>
  41. 47. The 7 Rules of Hard Bargaining <ul><li>Don’t make the first offer </li></ul><ul><li>Don’t accept the first offer </li></ul><ul><li>Don’t make the first concession </li></ul><ul><li>Don’t concede the same size </li></ul>
  42. 48. The 7 Rules of Hard Bargaining <ul><li>Don’t concede at the same rate </li></ul><ul><li>Ignore their deadlines, create your own </li></ul><ul><li>Ask for something extra for agreement </li></ul>
  43. 49. Preferred Group Practices… 1. Identify and agree on process norms 7. Visual display of information, options, etc 2. Facilitation, hear everyone 8. Listening for threads of agreement 3. Create problem statement 9. Recasting solutions in search of broad consensus 4. Learn interests and priorities 10. Late commitments, broad consensus 5. Develop multiple options 11. Careful review of agreement 6. Link differences for joint gain 12. Celebrate the agreement
  44. 50. Problem Solving Negotiation <ul><li>“ Good luck and good negotiating, </li></ul><ul><li>Dave Landis </li></ul><ul><li>[email_address] </li></ul>

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