The document discusses various concepts related to negotiation including that everything can be negotiated, identifying interests versus positions, and considering alternative options. It also discusses the prisoner's dilemma scenario and how cooperation is more successful when the game is repeated and there is the ability to retaliate and forgive. Effective listening, understanding other perspectives, flexibility, and pragmatism are presented as keys to negotiation.
4. Everything can be negotiated.
Business Relationships
• “I want a raise.”
• “I thought we were partners!”
Personal Relationships
• “What movie to you want to see?”
• “Can I borrow the car?”
5. Distributing Value vs. Creating Value
Opportunistic
Problem-solving
Identify Issues
What does each side want and need?
Consider Interests
Mutual
Complementary
Conflicting
6. Interests vs. Positions
“Needs” vs. “wants”
“Separate the People from the Problem.”
Soft on the person
Hard on the problem
Consider other Options
7. Use Objective Alternatives
Determine BATNA and WATNA
Best Alternative to Negotiated Agreement
Worst Alternative to Negotiated Agreement
Look for a “win-win” solution
8. Successful relationships are built on
communication and trust.
Lack of trust leads to “win-lose” or
“lose-lose” result.
Negotiation is one way of creating trust –
or deciding whether trust is justified.
Example: “The Prisoner’s Dilemma” a classic
risk strategy game
9. Scenario:
Bob and Alice are arrested near the scene of a
robbery where victim was badly injured.
Both are carrying stolen property.
They are questioned separately by the police.
There is enough evidence to convict both of theft,
but not enough to convict either one of assault.
Each has to choose whether to confess and
implicate the other.
10. Simple dilemma: confess or don't confess.
If neither one confesses, both will serve one year
(possession of stolen property).
If each confesses and implicates the other, both will go
to prison for 10 years.
But, if one confesses and implicates the other, and the
other does not confess, the collaborator will go free,
and the other will go to prison for 20 years.
The penalties are shown in the following
"payoff table”.
11. Payoff table for the Prisoners' Dilemma:
Alice
confess silent
confess 10 10 0 20
Bob
silent 20 0 11
12. Lack of trust is fatal – neither can trust the
other to remain silent.
So the only rational action is to confess.
That produces the best result no matter what
the other person does.
13. This is true for a “winner take all” game.
Life is rarely like that.
Most negotiations are based on a continuing
relationship.
What happens if there’s a series of games?
14. Series Player 2 Player 2
Payoff Matrix cooperates retaliates
Player 1
cooperates
3, 3 0, 5
Player 1
retaliates
5, 0 -1, -1
15. “Tit-for-Tat” strategy is most successful.
Four key conditions:
Nice
Retaliate
Forgiving
Generous
16. 1. The player will always cooperate, unless
provoked.
2. The player will retaliate, if provoked.
3. The player is quick to forgive.
4. The game must continue long enough for
the ‘retaliation and forgiveness’ pattern to
affect opponent’s behaviour.
17. Assertiveness vs. Empathy
Three common negotiation styles
Competitive
Accommodating
Avoidance
Effective negotiator is assertive and
empathetic
18. Communication is the key to effective
negotiation.
What you say is often less important
than how you say it.
Tone
Body language
19. Understanding and recognition do not
mean compromise and concession.
“I understand” vs. “I agree”.
Your own emotions and subconscious
brain can hinder your ability to
negotiate effectively.
20.
21. The automatic processing of words interferes
with the task of naming the colors.
Selecting an appropriate response involves
conflict between the right and left halves of
the brain.
This conflict is involved in a wide range of
thought processes and emotional responses.
Source: PBS Online
http://www.pbs.org/wgbh/nova/everest/exposure/stroopdesc.html
22. Listening
Develop “active listening”.
Understanding
Acknowledge the other person’s perspective.
Flexibility
Be open to other options.
Pragmatism
Be ready to accept the best available option.
23. Classic “Hard Bargaining” Ploys
Extreme claims, small concessions
“Take or leave it.”
Unreciprocated offers
Threats and warnings
Attacking the alternatives
Good cop, bad cop
24. Extreme claims, small concessions
Tit for Tat – make equally small concessions
“Take or leave it.”
Make a counter offer
Offer an alternative
Don’t be afraid to walk away.
25. Unreciprocated offers
Don’t negotiate against yourself.
Wait for a counter offer.
Threats and warnings
Don’t make a counter-treat.
Challenge the underlying assumptions .
26. Attacking the alternatives
Askfor an explanation.
“Why do you have a problem with…?”
Good cop, bad cop
Negotiate with the boss.
Use the “good cop” to your advantage.
29. Interest-based Mediation
Mediator is a facilitator
Focus on interests, not legal rights or
obligations
Options for creative solutions
Evaluative Mediation
Neutralevaluation
Based on legal rights & obligations
30. Qualities of a successful mediator:
Subject area knowledge
Negotiation & mediation process skills
Lets parties make key decisions
Creative approach to the problem
Patience
31. Effective alternative to a law suit, especially
for commercial disputes
Quicker
Less expensive
Private
Especially good for international disputes
Avoid uncertain court systems
Easier to enforce an award
32. Cohen: You Can Negotiate Anything,
Bantam, 1980
Fischer, Ury and Patton: Getting to Yes,
Penguin, 1991
Ury: Getting Past No, Bantam, 1993
Mnookin, Peppet and Tulumello: Beyond
Winning, Harvard University Press, 2000