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Interest Based Negotiation

Interest Based Negotiation

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Interest Based Negotiation

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  1. Interest Based Negotiation Principled Negotiation for Moving Forward

  2. Overview • Why interest-based negotiation (IBN)? • Five principles of IBN • Separate the people and the problem • Focus on interests • Create options for mutual gain • Know your alternatives (BATNA) • Determine objective criteria • Applying IBN

  3. Why is this Important? • Conflict is everywhere • Increasing knowledge and skills in negotiation can save time and money • Teams who work well together are more productive

  4. Conflict Happens in the interaction of interdependent people • Who perceive incompatible goals • And experience interference from the other in reaching those goals

  5. Conflict is like chaos • It is complex – there are many parts and they way they evolve and impact each other is unpredictable • Conflict is dynamic – change is the only constant • People can feel out of control in conflict

  6. Understanding Conflict • There is an order to conflict – the way that we identify it and respond to it • As we understand conflict better, we begin to see patterns emerge • The more we understand individuals in conflict, the better we are able to respond thoughtfully

  7. Understanding People in Conflict Thomas-Killman Conflict Mode Instrument • Compete • Accommodate • Avoid • Compromise • Collaborate

  8. Compete Collaborate Compromise Avoid Accommodate

  9. Interest-Based Negotiation A more effective and more lasting way to resolve conflict

  10. Separate the people from the problem Create options for mutual gain Develop your BATNA Focus on interests not positions Define objective criteria

  11. Separate the people from the problem

  12. Separating People and Problem • Negotiators have the ability to separate the substantive problem and their relationship with others • People & problems get entangled by: • Perceptions • Assumptions • Emotions • Communication

  13. Perceptions and Assumptions • Place yourself in their shoes • Do not interpret their motives by your fears • Discuss the perceptions I You It

  14. Emotions • Recognize they exist and they contribute to conflict • Acknowledge them and allow for time to express– listening to emotion gives you clues about what is important to others • Do not react to them

  15. Communication • Listen to understand • Frame your message • Consider delivery mechanism

  16. Separate the people from the problem Focus on interests not positions

  17. Positions • Positions are “what you want” • They are your pre-determined goals • They are often based on power and/or rights • The goal in a positional negotiation is to persuade • They are win-lose

  18. Interests • If positions are “what you want”, interests are ”why do you want them?” • They are your hopes, fears, concerns and priorities • There are three types • Substantive • Procedural • Psychological

  19. Focus on Interests Positions Solutions to problems Specific & definite Basis for argument Require justification End discussion Interests Why a particular solution is preferred Reasons underlying positions Require explanation not justification Start discussion

  20. Why Focus on Interests? • Interests define the problem • Interests allow for a variety of possible solutions • Interests allow for a solution that may not involve compromise • Interests help us evaluate a possible solution • Focusing on interests provides increased understanding between people in conflict

  21. Position Position Interests

  22. Separate the people from the problem Create options for mutual gain Focus on interests not positions

  23. Interests Lead to Options • Examining and evaluating the interests highlights areas of mutual gain • How do participants prioritize their interests? • How do they fit together?

  24. Options for Mutual Gain • There is always more than one option • Think outside the box • Expand the pie

  25. Options for Mutual Gain Brainstorm possible solutions together Consider options for joint benefit Create what neither of you could do on your own Look for possible trade-offs that can turn potential into reality

  26. Overcoming Barriers to Developing Mutual Options • Premature judgment • Searching for the SINGLE answer • Assuming a “fixed pie” • Solving their problem is THEIR problem

  27. Separate the people from the problem Create options for mutual gain Develop your BATNA Focus on interests not positions

  28. Best Alternative to Negotiated Agreement • What will you do if you are unable to reach agreement in the negotiation? • These alternatives are outside the negotiation and are typically implemented without the buy in of the other.

  29. Identify and Use your BATNA • Know your BATNA • Focus on what you want to achieve and the different ways to accomplish this • Strengthen your BATNA • Construct your BATNA to be more achievable, probable, or satisfying more of your interests • Improves your confidence during the negotiation • Consider other side’s BATNA • Make their BATNA less attractive to them

  30. Options and BATNA • Note the difference • Options • “Inside” the negotiation • Created with counterpart • Brainstorming session • Potential solution(s) • BOTH you and counterpart receive benefit • BATNA • “Outside” the negotiation • Fall back position if negotiation fails • Can be implemented unilaterally

  31. Separate the people from the problem Create options for mutual gain Develop your BATNA Focus on interests not positions Define objective criteria

  32. Objective Criteria • “Others in the industry do….” (What is customary) • “The last time this happened we….” (Precedent) • “The standard contract says…” (Law) • “If you were me would you….?” (Reciprocity)

  33. The Process of Negotiation • Set the Stage • Gather Information – explore interests • Frame and prioritize issues • Generate and Evaluate Options • Finalize Agreement

  34. Prepare to Negotiate • Know your interests and anticipate those of others • Assess your relationships and it’s impact on the negotiation. • Think about (without settling on) possible options for mutual gain • Determine your BATNA • Understand your standards of fairness and anticipate others’

  35. Culturally Competent Dispute Resolution Cultural Considerations in Negotiation

  36. Cross Cultural Training in the Past • Cookbook approach • Recipes perpetuate stereotypes • Continues narrow definition of culture as ethnic • Focus is on “those” people • Understanding and skills remain underdeveloped and can be counterproductive

  37. Evolution of Negotiation • Has been historically culture neutral • Developed from the perspective of one culture without accounting for differences or ambiguity

  38. Definition of Culture • Way of life that includes values, beliefs and behaviors • Passed down from one generation to another • It is learned

  39. The Iceberg Theory of Culture

  40. Dimensions of Culture • Core Dimensions – aspects that are the most personal and virtually unchangeable (ethnicity, gender) • Internal Dimensions – Aspects that apply through our development (language, family constellation) • Peripheral Dimensions – Aspects that apply through choice (education, marital status) • External Factors – Aspects from our environments (community, politics)

  41. Generalizations and Stereotypes • Generalization • Never applies to everyone in every situation • Only a first “guess” • Discard when no longer useful • Stereotype • Applies to everyone in every situation • No exceptions • Retained even when no longer accurate or useful

  42. Primary and Secondary Cultures • Primary culture is your individual culture • Secondary is one within which you live/work • Each organization has a set of assumptions, practices, beliefs, and values. • We bring our primary cultures into the secondary culture • A health organizational culture will allow for members to manage primary cultural differences

  43. Culture and Conflict • Culture affects negotiations • The way we identify a conflict • The way we respond to conflict • The outcome we desire in negotiation

  44. Cultural Continuums • To Do • Earned status • Achievement • Individual Action • Equality • Immediate Family • Self Reliance • Independence • Competition • Guilt • Future • Class Mobility • To Be • Ascribed Status • Affiliations • Stability • Inequality • Extended Family • Rely on others • Interdependence • Cooperation • Shame • Past/Heritage

  45. Cultural Considerations in Negotiation • Direct and in-direct communication and conflict resolution • Saving face and solving the problem • Linear and circular thinking and communicating

  46. What can you do? • Know yourself in conflict • Work to understand individuals as unique cultural beings • Make an effort to understand the interests of others • Remember that negotiation is a constant process of introspection and change

  47. Thank You Elizabeth Z. Waetzig, JD Change Matrix, LLC 485 Maylin St. Pasadena, CA 91105 626-696-3227 ewaetzig@changematrix.org