CSG auction3

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CSG auction3

  1. 1. Problem Solving Negotiation David Landis Director, Urban Development Lincoln, NE
  2. 2. Auction Rules <ul><li>Real money is exchanged </li></ul><ul><li>No bid more than 10 cents </li></ul><ul><li>Bids divisible by 5 </li></ul><ul><li>No talking but bidding </li></ul><ul><li>High bid pays and gets item, second high bid pays and does not get item. </li></ul>
  3. 3. Definition A negotiation is a trade -”I’ll do Y, if you’ll do X.”
  4. 4. 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>
  5. 6. 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>
  6. 8. 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>
  7. 10. 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>
  8. 12. 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>
  9. 13. 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>-5 crisp $ 1,000 bills
  10. 14. 5 into 2 <ul><li>2 tickets, great concert </li></ul><ul><li>Designer jacket </li></ul><ul><li>Glider flight over Grand Canyon </li></ul><ul><li>Elegant, fine French meal for 2 </li></ul><ul><li>Martha Stewart cooks and cleans </li></ul><ul><li>All the same rules </li></ul><ul><li>Items: </li></ul>
  11. 15. Worker’s Comp Deal Business Labor Dr. Choice Managed Care Indexed Benefits Safety Comm./ Inspectors
  12. 16. Worker’s Comp Deal Business Labor Dr. Choice Yes Managed Care Yes Indexed Benefits No Safety Comm./ Inspectors No
  13. 17. Worker’s Comp Deal Business Labor Dr. Choice Yes No Managed Care Yes No Indexed Benefits No Yes Safety Comm./ Inspectors No Yes
  14. 18. 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
  15. 19. 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
  16. 20. 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>
  17. 21. 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>
  18. 22. 3 Characteristics of Negotiation <ul><li>Recurring pattern </li></ul><ul><li>Tension </li></ul><ul><li>Asymmetrical information </li></ul>
  19. 23. 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>
  20. 24. Focus on Interests, Not 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>
  21. 25. 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>
  22. 26. 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>
  23. 27. 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>
  24. 28. 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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