Win-Win (Integrative) Negotiation Strategies

Transcription

1 Win-Win (Integrative) Negotiation Strategies Roger Fisher and William Ury, Getting to Yes, Penguin Books, 2012

2 Types of Negotiations Type Distributive Negotiation Integrative Negotiation Nature Win-lose Zero-sum game Benefit Distribute fixed gains Competition to maximize our portion of distributed gains Win-win Positive-sum game Expand gains Cooperation to increase total gains Competition to secure our fair portion of increased gains Process Conceal information, or use it selectively or strategically Bargaining based on positions Focus on satisfying their own interests Strategies to maximize our own gains Free & open flow; share information openly Negotiation based on interests Focus on producing mutually beneficial solutions Strategies to maximize mutual gains e.g. One-time bargaining Bargaining over salary (labor and management) Frequent Bargaining (regular buyers and sellers) Most negotiations that value relationship

3 Win-Win Strategies 1. Don t Bargain over Positions 2. Separate the People from the Problem 3. Focus on Interests, Not Positions 4. Invent Options for Mutual Gain 5. Insist on Using Objective Criteria 6. Develop Your BATNA

4 1. Don t Bargain Over Positions Criteria for Evaluating Negotiation Strategies: Produce a wise agreement Should be efficient (to increase gains) Should improve or at least not damage the relationship Arguing over positions produces unwise agreements (e.g.) Breakdown of the talks under Kennedy for a comprehensive ban on nuclear testing Inefficient: Bargaining over positions creates incentives that stall settlement Endangers an ongoing relationship The more parties, the more difficult and worse

5 Positional Bargaining Soft Participants are friends. Goal is agreement Make concessions to maintain relationship. Be soft on the people and the problem. Trust others. Change your position easily. Make offers. Disclose your bottom line. Accept one-sided losses to reach agreement. The single answer: the one they will accept. Insist on agreement. Try to avoid a contest of wills. Yield to pressure. Hard Participant as adversaries. The goal is victory. Demand concessions as a condition of relationship. Be hard on the problem and the people. Distrust others. Dig in to your position. Make threats. Mislead as to your bottom line. Demand one-sided gains as the price of agreement. The single answer: the one you will accept. Insist on your position. Try to win a contest of wills. Apply pressure.

6 2. Separate the People from the Problem 1) Negotiators are people first 2) Every negotiator has two kinds of interests: In the substance and in the relationship a.ongoing relations is far more important that the outcome of any particular negotiation b.the relationship tends to become entangled with the problem a. (e.g.) The kitchen is a mess b. Why can t he do anything right? Who does he take after? c.positional bargaining puts relationship and substance in conflict 3) Separate the relationship from the substance: Deal directly with the people problem Perception; Emotion; Communication

7 2. Separate the People from the Problem Dimension of Perception 1) Differences in subjective perceptions of an objective reality Debate, dispute (see p. 24) 2) Put yourself in their shoes 3) Don't deduce their intentions from your fears 4) Don't blame them for your problem 5) Discuss each other's perceptions 6) Look for opportunities to act inconsistently with their perceptions (e.g.) Visit of Sadat to Jerusalem in Nov ) Give them a stake in the outcome by making sure they participate in the process 8) Face-saving: Make your proposals consistent with their values

8 2. Separate the People from the Problem Dimension of Emotion 1) First recognize and understand emotions, theirs and yours 2) Make emotions explicit and acknowledge them as legitimate 3) Allow the other side to let off steam 4) Don't react to emotional outbursts immediately 5) Use symbolic gestures

9 2. Separate the People from the Problem Dimension of Communication 1) Negotiation is a process of communicating for the purpose of reaching a joint decision 2) Three big problems in communication Negotiators may not be talking to each other, or at least not in such a way as to be understood Even if you are talking directly and clearly to them, they may not be hearing you Misunderstanding 3) Solutions Listen actively and acknowledge Speak to be understood Speak about yourself, not about them Speak for a purpose Prevention works best: Build a working relationship before

10 3. Focus on INTERESTS, Not Positions For a wise solution reconcile interests, not positions 1) Story of two men quarreling in a library 2) Interests define the problem (e.g.) Egyptian-Israeli peace negotiations in 1978 Reconciling interests rather than positions for two reasons 1 For every interest there usually exist several possible positions that could satisfy it 2 Behind opposed positions lie many more interests than conflicting ones 3) Behind opposed positions lie shared and compatible interests, as well as conflicting Agreement is often made possible precisely because interests differ Shared interests and differing but complementary interests can both serve as the building blocks for a wise agreement

11 3. Focus on INTERESTS, Not Positions How do you identify interests? 1) Ask why? 2) Ask "Why not?" Think about their choice 3) Realize that each side has multiple interests In almost every negotiation each side will have many interests, not just one Every negotiator has a constituency to whose interests he is sensitive 4) The most powerful interests are basic human needs Security; economic well-being; a sense of belonging; recognition; control over one's life 5) Make a list

12 3. Focus on INTERESTS, Not Positions Talking about Interests 1) Make your interests come alive 2) Acknowledge their interests as part of the problem It helps to acknowledge that their interests are part of the overall problem you are trying to solve 3) Put the problem before your answer If you want someone to listen and understand your reasoning, give your interests and reasoning first and your conclusions or proposals later 4) Look forward, not back 5) Be concrete but flexible Think in terms of more than one option that meets your interests 6) Be hard on the problem, soft on the people Successful negotiation requires being both firm and open

13 4. Invent Options for Mutual Gain Four major obstacles to inventing an abundance of options 1) Premature judgment 2) Searching for the single answer 3) The assumption of a fixed pie 4) Thinking that "solving their problem is their problem"

14 Prescriptions 4. Invent Options for Mutual Gain 1) Separate inventing from deciding arranging a brainstorming session with a few colleagues or friends Consider brainstorming with the other side 2) Broaden your options a. Multiply options by shuttling between the specific and the general: the Circle Chart b. Look through the eyes of different experts c. Invent agreements of different strengths d. Change the scope of a proposed agreement

15 4. Invent Options for Mutual Gain

16 Prescriptions 4. Invent Options for Mutual Gain 3) Look for mutual gain a. Identify shared interests Shared interests lie latent in every negotiation make it concrete and future oriented stressing your shared interests can make the negotiation smoother and more amicable b. Dovetail differing interests Differences can also lead to a solution: p. 74 c. Ask for their preferences to invent several options all equally acceptable to you and ask the other side which one they prefer

17 5. Insist on Using Objective Criteria Deciding on the basis of will is costly 1) Try to resolve conflicting interests by positional bargaining 2) The solution is to negotiate on some basis, independent of the will of either side Using objective criteria The case for using objective criteria 1) Commit yourself to reaching a solution based on principle, not pressure 2) Principled negotiation produces wise agreements amicably and efficiently 3) The more you bring standards of fairness, efficiency, or scientific merit to bear on your particular problem, the more likely you are to produce a final package that is wise and fair

18 5. Insist on Using Objective Criteria Developing Objective Criteria 1) Fair standards market value precedent scientific judgment professional standards efficiency costs what a court would decide moral standards equal treatment tradition reciprocity 2) Fair Procedures one cuts and the other chooses taking turns drawing lots flipping a coin A mediator to help them reach a decision Submit the matter to an arbitrator for an authoritative and binding decision Results may be unequal, but each side had an equal opportunity

19 5. Insist on Using Objective Criteria Negotiating with objective criteria 1) Frame each issue as a joint search for objective criteria You might begin by suggesting one or more criteria, and then invite the other's suggestions Ask "What's your theory? Agree first on objective criteria 2) Reason and be open to reason 3) Never yield to pressure many forms of pressure: a bribe, a threat, a manipulative appeal to trust, or a simple refusal to budge Never yield to pressure, only to principle

20 6. Develop Your BATNA Protecting yourself 1) Costs of using a bottom line Commonly try to protect themselves by establishing in advance the worst acceptable outcome: a bottom line Reduces the incentive to invent a creative solution Keep you from accepting a solution it would be wise to accept An arbitrarily selected figure is no measure of what you should accept 2) Know your BATNA The reason you negotiate is to produce something better than the results you can obtain without negotiating Only standard which can protect you both from accepting terms that are too unfavorable and from rejecting terms it would be in your interest to accept

21 6. Develop Your BATNA Protecting yourself - cont d 3) The insecurity of an unknown BATNA You may be too optimistic and assume that you have many other choices If you fail to reach agreement, you will have to choose just one 4) Formulate a trip wire In order to give you early warning, identify one far from perfect agreement that is better than your BATNA Before accepting any agreement worse than this trip-wire package, you should take a break and reexamine the situation

22 6. Develop Your BATNA Maximize your BATNA 1) The better your BATNA, the greater your power Relative negotiating power of two parties depends primarily upon how attractive to each is the option of not reaching agreement 2) Develop your BATNA (1) inventing a list of actions you might conceivably take if no agreement is reached (2) Improving some of the more promising ideas and converting them into practical alternatives (3) Selecting, tentatively, the one option that seems best 3) Consider the other side's BATNA The more you can learn of their options, the better prepared you are for negotiation