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WHAT WE KNOW

WHAT WE KNOW. TIT for TAT. The most effective negotiation strategy is very simple. “Dancing” is inevitable. Some rules of thumb. Who should blink first?. The anchoring effect Is the population of Iraq more or less than 5M? What is the population of Iraq?. Who should blink first?.

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WHAT WE KNOW

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  1. WHAT WE KNOW

  2. TIT for TAT The most effective negotiation strategy is very simple

  3. “Dancing” is inevitable Some rules of thumb

  4. Who should blink first? The anchoring effect • Is the population of Iraq more or less than 5M? • What is the population of Iraq?

  5. Who should blink first? The anchoring effect • Is the population of Iraq more or less than 100M? • What is the population of Iraq?

  6. What level of offer to make? ZOPA

  7. What level of offer to make? The Insult Zone First Offer

  8. What level of offer to make? Credible Zone First Offer

  9. Making more than 1 offer Cons: • Decision deferral • Avoidance • Option devaluation • Non-compensatory decision making • Dissatisfaction/regret

  10. Making more than 1 offer Pros: • Contrasts – allows comparisons to be made • Extreme aversion – people avoid the extremes

  11. Aspiration level • The higher the better • Women do worse

  12. Flexibility with numbers • Global – specific • % • Ranges • Beginning with a particular digit • As a measure of progress • Splitting the difference

  13. Flexibility with numbers

  14. Creating vs Claiming Value Creating value: • Similarities and differences • Co-operative/interest based approaches • Power of empathy - demonstrating understanding without agreeing

  15. Creating vs Claiming Value Claiming value: • Positional approaches • Power of assertiveness - being robust when appropriate to challenge or encourage reflection

  16. Loss Aversion • Losses loom larger in people’s minds than do gains • If a party considers that they are losing something, more is required to compensate them/persuade them • Change a party’s reference point - demonstrate gains that will be made from the proposal

  17. Loss Aversion Which proposal do you prefer? • Plan (1) will lead to a loss of 2 out of 3 jobs at the plant • Plan (2) will have a 70% chance that 1 of the 3 jobs at the plant will be saved

  18. Reasons for impasse • Information • Relationships • Values • Structural inequality • Rights

  19. Creating the right “emotional environment” • Express appreciation • Build affiliation • Respect autonomy • Acknowledge status • Identify fulfilling roles

  20. BATNA and WATNA • Assess offers on the table • Be open to reason – closed to pressure

  21. Be creative! • Analogy - concepts/ideas from other fields • “Role reversal” (put yourself in their shoes) • Challenging assumptions • Brainstorming alternatives • Reframing the problem • Taking the perspective of the wholly unconstrained actor • De Bono’s “six hats” technique

  22. Beware of “Negotiation Bias” • Over-confidence • test openness to disconfirming info • Over-commitment • avoid extreme opening positions • ignore “sunk costs” • Narrow/short-term focus • consider long-term implications • Reactive devaluation • test reactions before offers are placed on table

  23. Old DilemmaDealing with tactics • Don't panic! • Recognise the tactic • Name the strategy being used • Pre-empt tactics e.g. check authority before negotiation starts • Identifying common goals in an attempt to engage in problem solving • Reality test to identify weaknesses • Ask for reasoning - “why..?”

  24. How do QLD lawyers negotiate? The Legal Negotiation Project: • Launch February/March 2008 • Negotiation simulations late March-May 2008 • Invitations to all QLD solicitors and barristers • Work in teams of 2 - against another pair • Interaction with clients, teamwork and preparation

  25. How do QLD barristers negotiate? The Legal Negotiation Project: • An interactive IT component – lawyers can seek instructions, provide client with legal advice and seek settlement instructions • Case study will include an ethical issue – Ian Hanger QC will settle • Compare with “documents only” arbitrated decision – Ian Callinan QC will give

  26. How do QLD barristers negotiate? The Legal Negotiation Project: • Each simulated negotiation will be followed by a personal debrief - 3 hours • Anonymised results will be published • Awards will be given • CLE points applied for!

  27. WHAT WILL WE KNOW?

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