Principled Negotiation

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Gervase Ray
5 years ago
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1 Principled Negotiation Reaching Agreements that Work for Both Parties Presenter: Gord Gibben, PMP Principled Negotiation Agenda Distinguish between positional negotiation and principled negotiation Apply the four principles of negotiation to reach a collaborative agreement Use strategies to surmount obstacles presented by obstinate negotiators Q&A 1

designed to reach an agreement When do we negotiate? Major purchase (house, car, etc.

2 What is Negotiation? Bartering over positions Trying to win (at all costs?) Give and take to arrive at a deal Getting what you want from others Back and forth communication designed to reach an agreement When do we negotiate? Major purchase (house, car, etc.) Delivery dates with suppliers Estimates and resources on projects Requirements with business Etc. We negotiate something every day! 2

3 Positional Negotiation Also know as Competitive Negotiation Often results in: Win-lose result Or worse no result at all Positional negotiation: Produces unwise agreements Is inefficient Endangers relationships Principled Negotiation Also known as Collaborative Negotiation Based on four principles: 1. Separate the people from the problem 2. Focus on interests, not positions 3. Generate options for mutual gain 4. Use objective criteria 3

1. Separate the people from the problem Be hard on the problem, soft on the people Focus on issues, not personalities Avoid personalizing the negotiation Establish rapport before you negotiate 2.

4 1. Separate the people from the problem Be hard on the problem, soft on the people Focus on issues, not personalities Avoid personalizing the negotiation Establish rapport before you negotiate 2. Focus on interests, not positions Prevent initial posturing and statement of positions Seek first to understand, then to be understood Identify & communicate interests Look for shared & compatible interests 4

5 3. Generate options for mutual gain Separate inventing from deciding Collaborative brainstorming to generate options Define & analyze the problem Generate & analyze alternatives Focus on ideas with greatest possibilities 4. Use objective criteria Use recognized standards or criteria to settle disagreements Base agreements on objective criteria, not pressure Agree to criteria or standards at beginning of negotiation 5

6 Using Principled Negotiation Never state your position Look for common ground Don t make it personal Explore options Find the ZOPA (Zone of Potential Agreement) Your Needs ZOPA Other Party Needs What if they won t play nice? The other party is uncooperative The other party is stuck on their position You should work where I work! 6

7 Negotiation Strategies 1. Develop your BATNA 2. Negotiation Jujitsu 3. Don t react: Buy time to think 4. Don t argue: Step to their side 5. Don t reject: Reframe 6. Don t push: Build a golden bridge What s my BATNA? Best Alternative To a Negotiated Agreement Establish your BATNA prior to negotiating Use to measure proposed agreements and protect yourself The better your BATNA, the greater your power in negotiating Consider your WATNA Worst Alternative To a Negotiated Agreement! 7

attack on you as an attack on the problem (re-focus) Ask questions instead of making statements Don t React, Buy Time to Think Natural reactions to

8 Negotiation Jujitsu What if the other party is using positional negotiation? Don t attack their position, look behind it (for their interest) Don t defend your ideas, accept criticism and advice (generates options) Recast an attack on you as an attack on the problem (re-focus) Ask questions instead of making statements Don t React, Buy Time to Think Natural reactions to attack: Striking back Giving in Breaking off Instead buy time to think Pause and say nothing Review the discussion up to that point Take a break Don t make decisions under pressure Don t get mad. Don t get even. Get what you want. 8

Don t Argue, Step to Their Side Disarm hostile emotions Do the opposite of what they expect Listen actively Paraphrase and ask for corrections Acknowledge their point Don t say But, say Yes And Agree

9 Don t Argue, Step to Their Side Disarm hostile emotions Do the opposite of what they expect Listen actively Paraphrase and ask for corrections Acknowledge their point Don t say But, say Yes And Agree whenever you can Agree without conceding Accumulate yeses Don t Reject, Reframe Re-direct the other side s attention away from positions Ask problem solving questions: Why? Why not? What if? Ask for their advice Ask open-ended questions 9

10 Don t Push, Build a Golden Bridge Positions become entrenched the line in the sand Help the other party save face Offer choices Explain how circumstances have changed Identify and satisfy unmet interests Go slow to go fast Build your opponent a golden bridge to retreat across Sun Tzu Principled Negotiation Summary Disadvantages of positional negotiation Four principles of Principled Negotiation: 1. Separate the people from the problem 2. Focus on interests, not positions 3. Generate options for mutual gain 4. Use objective criteria Six negotiation strategies to deal with positional negotiators: 1. Develop your BATNA 2. Negotiation Jujitsu 3. Don t react: Buy time to think 4. Don t argue: Step to their side 5. Don t reject: Reframe 6. Don t push: Build a golden bridge 10

11 Questions? 11

Interests based negotiation

Interests based negotiation The principled negotiation method developed by Harvard University Negotiation Project. (now called the Program on Negotiation http://www.pon.harvard.edu/):- People Interests