Collaboration. Michael J. Hostetler

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1 Collaboration Michael J. Hostetler

2 Consider a recent disagreement or conflict situation at work How did you feel as you worked through the disagreement? Was it successfully resolved? If so, how? If not, why not? What, if anything, did you learn from the experience?

3 Conflict Management Negotiation Collaboration

4 Conflict Management as a Key Leadership Skill Make a persuasive case for your point of view Marshal the resources (including the people!) necessary to carry out your strategy Find creative solutions to the challenges your unit/department faces Establish productive collaborative relationships with subordinates (as well as clients, vendors, and customers)

5 Planning Step 1: Who Am I? What do I care about? What can I not live without? What can I trade away?

6 Planning Step 2: Who Am I Dealing With? What do they care about? What can they not live without? What low-cost goods or services can they provide me that meet my interests?

7 Planning Step 3: What Are the Norms and Rules? What are the rules? Will you see each other again? Do you care about your own reputation? Are there time pressures? Where are you negotiating?

8 Planning Step 4: Set Parameters Reservation Point (RP): The bottom line; the point at which a negotiator is indifferent between a negotiated agreement and an impasse. Target: Each side's goals or aspirations; the most each party reasonably hopes to achieve in the negotiation. BATNA: Best Alternative to a Negotiated Agreement (i.e., what do you do if no deal?)

9 Texoil Diagnosing Deals and Impasses

10 Tough Talk: Win-Lose Tactics Flatter Make inflated opening offers Highlight constraints Stall Rely on limited authority Allude to other offers Unexpectedly lose temper Threaten Use Boulwarism Employ 11 th hour tactics

11 Parties Interests Station owner s interests Texoil s interests

12 Collaboration Interests: the big things you need Positions: what you ask for to meet your interests

13 Win-Win Tactics Ask questions about interests Why? Why not? Frame your perspective Interested in buying the station, but have constraints Are there other issues you can add to the mix?

14 Major Mistakes in Negotiation Assuming prematurely that the pie is fixed, or Relying on aggressive tactics that push people away (relationship problem) and that fix, or even shrink, the size of the pie (resources problem)

15 Lessons Hold firm to your interests Look for creative ways of meeting them Try to understand the other s interests and constraints Listen to what the other is saying Remain calm Get better negotiated agreements Avoid making faulty assumptions Correct faulty assumptions Understand perspectives and interests Honor differences of opinion When life gives you an orange, take what you need and deal the rest.

16 Advanced Tactic: Make Multiple, Simultaneous Offers Advantages Anchor the negotiation Collect information about the other side, especially about priorities Allows you to be aggressive signal cooperation through the fact that you are offering a menu Test what the other side is telling you Allows you to be more persistent Make concessions that do not cost you anything Highlight your own value-added

17 Creating Integrative Agreements Trading Issues (Logrolling) Compensation over Time (I owe you one) Know yourself Know the other side

18 Tactic: Post-Settlement Settlements Definition: After hard bargaining, there is a package on the table acceptable to both sides Both sides promise to agree on this package as a default Talks continue with each side having unilateral veto power over any subsequent package Advantages: Leverages prospect theory by placing both sides in certain gains Promotes sharing of truthful information Facilitates creative problem solving atmosphere

19 Sharing information leads to more successful deals. Sharing information also puts one at risk for being exploited.

20 Managing the Dilemma The greater the trust, the less risky it is to divulge information Reveal a bit of information at a time (unilaterally, if necessary). Is it reciprocated? Tackle the negotiation in phases Be sure to remember that you are looking to meet your own interests

21 What if the Other Party Won t Play? 1. Go to the Balcony Focus on controlling yourself, not the other party Don t counterattack Remember your own interests and your BATNA Don t get mad; don t get even; don t react Go to the Balcony

22 2. Step to Their Side To diffuse anger and suspicion, don t attack - listen Acknowledge their points and agree whenever you can Acknowledge their authority and competence whenever you can Don t argue Step to Their Side

23 3. Build a Golden Bridge Don t push or insist they negotiate this usually makes people dig in Involve them in the process, incorporating their ideas Try to identify and meet their unmet needs Help them save face and make the outcome appear as a victory for them Go slow to go fast Don t push Build Them a Bridge

24 4. Use Power to Educate If the other side still resists, don t threaten or use force this usually backfires Educate them on the costs of not agreeing. Warn rather than threaten and demonstrate your BATNA. Minimize their resistance by exercising restraint and reassuring them your goal is mutual satisfaction, not victory. Don t escalate Use Power to Educate