Problem Solving Negotiation David Landis Director, Urban Development Lincoln, NE
Definition A negotiation is a trade -”I’ll do Y, if you’ll do X.”
Auction Rules Real money is exchanged No bid more than 10 cents Bids divisible by 5 No talking but bidding High bid pays and gets item, second high bid pays and does not get item.
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 Develop “walk away” alternative
Trust: A two-sided coin: trusting, being trusted A shared problem Some assume trustworthiness Some assume untrustworthiness
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 pattern Tension Asymmetrical information
Role #5 - Observer Don’t give away information or reactions – just watch.  Watch for exaggerations, threats, offers and counter-offers.  Notice questions particularly.
 
Role #1 Your mother says, “Go to the store.  Bring me an orange.  You come home without an orange and you’ll be in trouble.”
 
Role #2 Your mother says, “Go to the store.  Bring me an orange.  You come home without an orange and you’ll be in trouble.”
 
Role #3 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.”
 
Role #4 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.”
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
5 into 2  2 tickets, great concert Designer jacket Glider flight over Grand Canyon Elegant, fine French meal for 2 Martha Stewart cooks and cleans All the same rules Items:
Worker’s Comp Deal Business Labor Dr. Choice Managed Care Indexed Benefits Safety Comm./ Inspectors
Worker’s Comp Deal Business Labor Dr. Choice Yes  Managed Care Yes  Indexed Benefits No  Safety Comm./ Inspectors No
Worker’s Comp Deal Business Labor Dr. Choice Yes  No  Managed Care Yes  No  Indexed Benefits No  Yes  Safety Comm./ Inspectors No  Yes
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
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
Tools for Mutual Gain Interests before positions Priorities traded across differences Fair process norms Objective criteria Trust through authentic communication
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
Focus on Interests, Not 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.
Invent Options for Mutual Gain Brainstorm method of advancing parties’ interests Invent first, then decide Link differences, priorities Maximize shared interests
Separate People from the Problem Be unconditionally cooperative on process Good listening Fair characterizations Symbolic gestures
Separate Problem from the People Be firm on fair outcomes Trade cooperation Reason, be open to reason Results need a fair, reasonable basis
Problem Solving Negotiation “ Good luck and good negotiating, Dave Landis [email_address]

Csg auction2

  • 1.
    Problem Solving NegotiationDavid Landis Director, Urban Development Lincoln, NE
  • 2.
    Definition A negotiationis a trade -”I’ll do Y, if you’ll do X.”
  • 3.
    Auction Rules Realmoney is exchanged No bid more than 10 cents Bids divisible by 5 No talking but bidding High bid pays and gets item, second high bid pays and does not get item.
  • 4.
    Two Strategy OptionsSeeking Advantage Seeking Joint Gain
  • 5.
    Advantage Seeking Goodshort term results Hard to exploit Relatively easy to do
  • 6.
    Advantage Seeking Hardon relationships Misses joint gain Breeds reciprocity
  • 7.
    Joint Gain SeekingExpands the pie Benefits grow over time Builds relationships
  • 8.
    Joint Gain SeekingRisks exploitation Takes more time and preparation Requires skill to be effective
  • 9.
    Taming the AdvantageSeeker Align your incentives Cooperation on terms is reciprocal, not individual Lift the horizon Develop “walk away” alternative
  • 10.
    Trust: A two-sidedcoin: trusting, being trusted A shared problem Some assume trustworthiness Some assume untrustworthiness
  • 11.
    Being Trustworthy Say what you mean, mean what you say Does not require full disclosure Worth its weight in gold
  • 12.
    Trusting Operate independentof trust Reciprocal consequences
  • 13.
    3 Characteristics ofNegotiation Recurring pattern Tension Asymmetrical information
  • 14.
    Role #5 -Observer Don’t give away information or reactions – just watch. Watch for exaggerations, threats, offers and counter-offers. Notice questions particularly.
  • 15.
  • 16.
    Role #1 Yourmother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”
  • 17.
  • 18.
    Role #2 Yourmother says, “Go to the store. Bring me an orange. You come home without an orange and you’ll be in trouble.”
  • 19.
  • 20.
    Role #3 Yourmother 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.”
  • 21.
  • 22.
    Role #4 Yourmother 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.”
  • 23.
    5 into 2No 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
  • 24.
    5 into 2 2 tickets, great concert Designer jacket Glider flight over Grand Canyon Elegant, fine French meal for 2 Martha Stewart cooks and cleans All the same rules Items:
  • 25.
    Worker’s Comp DealBusiness Labor Dr. Choice Managed Care Indexed Benefits Safety Comm./ Inspectors
  • 26.
    Worker’s Comp DealBusiness Labor Dr. Choice Yes Managed Care Yes Indexed Benefits No Safety Comm./ Inspectors No
  • 27.
    Worker’s Comp DealBusiness Labor Dr. Choice Yes No Managed Care Yes No Indexed Benefits No Yes Safety Comm./ Inspectors No Yes
  • 28.
    Worker’s Comp DealBusiness Labor Dr. Choice Yes 1 No Managed Care Yes 2 No Indexed Benefits No 3 Yes Safety Comm./ Inspectors No 4 Yes
  • 29.
    Worker’s Comp DealBusiness 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
  • 30.
    Tools for MutualGain Interests before positions Priorities traded across differences Fair process norms Objective criteria Trust through authentic communication
  • 31.
    Use Objective CriteriaLearn marketplace Frame dispute as a joint search for fair standards Adjust standards for unique circumstances Open with an offer you can justify
  • 32.
    Focus on Interests,Not 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.
    Invent Options forMutual Gain Brainstorm method of advancing parties’ interests Invent first, then decide Link differences, priorities Maximize shared interests
  • 34.
    Separate People fromthe Problem Be unconditionally cooperative on process Good listening Fair characterizations Symbolic gestures
  • 35.
    Separate Problem fromthe People Be firm on fair outcomes Trade cooperation Reason, be open to reason Results need a fair, reasonable basis
  • 36.
    Problem Solving Negotiation“ Good luck and good negotiating, Dave Landis [email_address]