The four stages of Negotiations

1. Game Plan
Course Overview
Introduction to the University of Michigan
The Four-Stage Negotiation Process:
1.0 Prepare: Plan Your Negotiation Strategy
2.0 Negotiate: Use Key Tactics for Success
3.0 Close: Create a Contract
4.0 Perform and Evaluate: Finish the End Game
Apply Your Negotiation Skills: “The House on Elm Street” Negotiation

2. Importance of ADR
You negotiate ADR contract clauses
Alternative Dispute Resolution
You act as a 3rd party in resolving
work disputes
You participate in ADR processes

3. 32 percent [of lawyers surveyed] never
advised their clients to try mediation or
arbitration.
Dispute Resolution Magazine

4. [Firm revenues dropped because of unpaid
legal bills. Making the matter worse,] early this
year, a World Trade Center case settled within
weeks of two other big matters, punching a
$35 million hole in the firm’s projected total
revenue for the year.
“DC Law firm Tightens Its Belt,” Wall Street Journal, August 9, 2013

5. 4.0 Perform and Evaluate:
The End Game
4.1 Dispute Prevention
4.2 ADR Concepts
4.3 ADR Tools
4.4 Arbitration
4.5 Mediation
4.6 Review and Evaluation

6. Preventive Law
The first principle of preventive law is that it
is often more important to predict what
people will do than to predict what a court
will do…. Winning a lawsuit can be ruinous.
Corporate Dispute Management

7. Voltaire
“I was ruined twice in my life:
once when I lost a lawsuit and
once when I won one.”

9. I never received so much as a note
from Howard Johnson’s saying
“We’re sorry it happened.” After
being shocked, I was very angry.

10. Traditional Response to Malpractice Claims
“Most lawyers… were telling doctors ‘for
God’s sakes, don’t talk about things’ for fear
that a stray comment would somehow
compromise our defense in court.”
Michigan Daily, January 11. 2013

11. University of Michigan Health System:
Michigan Claims Management Model
Based on “disclosure, apology and offer” and three
principles:
• Compensate patients quickly and fairly if
unreasonable care
• Support hospital staff when care was reasonable
• Learn from patients’ experiences

12. • Lawsuit rate dropped from 2.13 per
100,000 patients to .75 per 100,000
patients
• Median resolution time dropped from
1.36 to .95 years
• “But the real goal … was to improve
patient safety” and “to do what’s right.”
Sources: Ann Arbor Observer and Michigan Daily

13. Comcast’s Twitter Man
Frank Eliason: “The most famous customer service
manager in the U.S., possibly in the
world.” (Business Week)
Early 2008: Searched for “Comcast” (or “Comcrap”)
By end of year: Handled 22,000 tweets

14. “We have the Comcast service guy out,
and he tries to charge us for new cable,
leaves, and now not only is cable out
but the Internet.”
Technophile

15. • Frank (from Comcast) asks for Technophile’s phone
number.
• Frank calls Technophile, who is agitated. Frank
discovers that problem is probably exterior.
• Frank sends technician.
• Customer now friendly.

16. Domino’s Facebook Apology
Domino’s customer (August 7, 2013):
“Best Pizza Ever! :) Keep up the good work guys.”
__________________________
Domino’s response:
“So sorry about that! Please share some additional
information with us … and please reference
#1409193 so we can have this addressed.”
Daily Mail, August 13, 2013