The Art and Science of Win-Win Negotiating for Effective Communication

Transcription

1 The Art and Science of Win-Win Negotiating for Effective Communication 2013 Joint Spring Conference Kentucky March 20, 2013 Juanita Richardson

2 2 Introduction Juanita Richardson - MLIS, MBA Juanita is an Associate with Dysart & Jones and a Professor at Seneca College in Toronto, Canada. Her areas of expertise include strategic planning for clients who want to deliver information services that have an impact. Prior to her consulting career, Juanita held positions on both the supplier and user sides of the information industry. juanita@dysartjones.com

3 3 Agenda Definitions 3 Phases of Negotiating Negotiating Pitfalls Learn Discussion of case of your choice Implementation Mentality Deal-Minded VS. Implementation-Minded Negotiator s Tactics Transitioning to Implementation Mentality The Spirit of the Deal Social Contract Close: Win-Win Q&A Bibliography

4 4 What can be negotiated? Anything! Including Sales agreement Job offer Business partnership Compensation bonus, salary increase Performance goals Etc!

5 5 Negotiation Defined: Negotiation is the process whereby interested parties resolve disputes, agree upon courses of action, bargain for individual or collective advantage, and / or attempt to craft outcomes which serve their mutual interests Traditional negotiating is sometimes called win-lose because of the hard-ball style of the negotiators whose motive is to get as much as they can for their side In the 70 s, practitioners and researchers began to develop win-win approaches to negotiation This approach is referred to as Principaled Negotiation.

6 6 Principled Negotiation Principled negotiation is a win-win approach where the goal is to reach a lasting agreement, rather than traditional positional (win-lose) bargaining. Elements of Principled Negotiation: Separate the people from the problem; Focus on interests rather than positions; Generate a variety of options before settling on an agreement; Insist that the agreement be based on objective criteria.

7 7 Best Alternative to a Negotiated Agreement (BATNA) In negotiation theory, the best alternative to a negotiated agreement or BATNA is the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached If current negotiations are giving you less value than your BATNA, there is no point in proceeding.

8 8 Overview: 3 Phases of Negotiating Phase 1: Before the Negotiation Step 1: Prepare and plan: Gather the facts Do the math Review SWOT Consider the other party s negotiating style / interests / issues Prepare your BATNA Prepare their BATNA Identify your dealbreakers You can t win if you don t play

9 9 Overview cont. Phase 2: During the Negotiation Step 2: Set the tone: Fair, honest, creative, collaborative but, be prepared for:

10 10 TACTICS Presenting demands / don t show your cards first Deadlines (artificial) Good cop / bad cop Limited authority Concessions High-ball / Low-ball Intimidation Getting it in your hands Fait accompli Take it or leave it Walking out

11 11 Overview Phase 2 cont. Step 3: Exploring underlying needs ACTIVELY listen for facts and reasons behind the other party s interests. Try to develop creative alternatives without losing win-win focus. Scan widely. Step 4: Selecting, refining and crafting an agreement Both parties discuss the starting proposal. Listen for new ideas, think creatively to handle conflict, create cooperative environment. Step 5: Reviewing and recapping the agreement Formalize the agreement in a written contract. You won t get what you don t ask for.

12 12 Overview cont. Phase 3 Step 6: After the negotiation: Review the negotiation to identify lessons learned on how to achieve a better outcome. Take the time to review each element, asking what went well? and what could be improved next time? Whatever you negotiate, you re going to have to live with

13 13 6 Pitfalls to Avoid 1. Neglecting the other side s problem 2. Letting price bulldoze other interests 3. Letting positions drive out interests 4. Searching too hard for common ground 5. Neglecting BATNA

14 Learning

15 15 Negotiating as if implementation mattered When the deal looks good on paper but doesn t work. What went wrong?: Negotiators too focused on closing the deal and squeezing the best terms out of one another and not focused on implementation. Bargainers never ask how or whether their agreement will work in practice. Need to: Define negotiation not as closing the deal but as setting the stage for a successful long-term relationship. Ensure that both sides stakeholders support the deal. Communicate a consistent message about the terms and spirit.

16 16 Negotiator s Tactic: SURPRISE Deal Minded Introduce new actors or information at strategic points in negotiation. Raise new issues at the end. Implementation Minded Propose agendas in advance so both parties can prepare. Suggest questions to be discussed and provide relevant data. Raise issues early.

17 17 Negotiator s Tactic: INFO SHARING Deal Minded Withhold information. Fail to correct mistaken impressions. Implementation Minded Create a joint fact-gathering group. Commission third-party research and analysis. Question everyone s assumptions openly.

18 18 Negotiator s Tactic: CLOSING TECHNIQUES Deal Minded Create artificial deadlines. Threaten escalation. Make this day only offers. Implementation Minded Define interests that need to be considered for the deal to be successful. Define joint communication strategy.

19 19 Negotiator s Tactic: REALISTIC COMMITMENTS Deal Minded Focus on documenting commitments rather than on testing the practicality of those commitments. Rely on penalty clauses for protection. Implementation Minded Ask tough questions about both parties ability to deliver. Make implementation a shared concern. Establish early warning systems and contingency plans.

20 20 Negotiator s Tactic: STAKEHOLDERS Deal Minded Limit participation in discussions to decision makers. Keep outsiders in the dark until it is too late for them to derail things. Implementation Minded Repeatedly ask about stakeholders. Whose approval is needed? Whose cooperation is required? Who might interfere with implementation?

21 21 5 Steps to Transition to Implementation Mentality 1. Start with the end in mind. 2. Help them prepare too. 3. Treat alignment as a shared responsibility. 4. Send one message. 5. Manage negotiation like a business process.

22 22 The Spirit of the Deal Even when parties agree on the terms of the deal, they may have contrasting expectations about how their agreement will work in practice. How do you address the spirit of the deal? The Social Contract

23 23 Social Contract Discussion Points Underlying social contract Real nature and purpose of the agreement Scope and duration Ongoing social contract Consultation Decision making Dispute resolution Reevaluation and renegotiation Meeting of the minds Alignment Shared perceptions

24 24 Win-Win The product of a negotiation isn t a document; it s the value produced once the parties have done what they agreed to do. Negotiators who understand that prepare differently than deal makers do. They don t ask: What might they be willing to accept? but rather, How do we create value together?

25 25 Bibliography 3-D negotiation: playing the whole game by David A. Lax and James K. Sebenius. Harvard Business Review, Nov Six habits of merely effective negotiators by James K. Sebenius. Harvard Business Review, Apr Getting past yes: negotiating as if implementation mattered by Danny Ertel. Harvard Business Review, Nov Negotiating the spirit of the deal by Ron S. Fortgang, et al. Harvard Business Review, Feb William Ury, et al. Getting to Yes: Negotiating Agreement Without Giving In. Houghton Miffin: William Ury, et al. Getting Past No: Negotiating Your Way from Confrontation to Cooperation. Bantam: Harvard Law School Program on Negotiation: Wikipedia: