Negotiation Rules & Strategy
What is Negotiation? UQLS Negotiation Seminar The process of reaching an agreement Between multiple parties With the objective of putting them in a better position than had they not negotiated.
YOUR Negotiation Strategy Be wary of any strategy that claims to be best all the time. Consider the different circumstances in which you would negotiate. Reflect in the competition and in your life on what strategy you used and why. Think about what you are doing and why.
Principled negotiation From the Harvard Program on Negotiation
Assumptions of Principled Negotiations The negotiation is complex. The relationship between the parties matters. The reputation of the negotiators matters. There is time and resources to negotiate face-to-face and in writing.
Hard and Soft Negotiators I always get screwed over. Nobody wants to deal with me. That offer is pure nonsense! Lets not argue, we’ve been friends for too long. You’re at fault here! You’re going to lose. I don’t want to go to court. Lets settle this here. We’ve got a much stronger case. You don’t want to go to court on this. My client’s very happy to do all that for you. Hard Principled Soft
Principled Negotiators Principled Separate the people from the problem. Focus on interests, not positions. Invent options for mutual gain. Insist on using objective criteria.
READ!!!! Roger Fisher and William Ury, “Getting To Yes” (any edition).
1. Separate the people from the problem. Negotiation is a social and psychological activity. Separate the substance of the negotiation from the relationship between the two humans. Address the people problem first. Return to the merits of the negotiation.
1. Separate the people from the problem. Negotiation Issues People Issues • To get a raise of 20% a year plus inflation. • To have the title of Senior Vice President. • To take five weeks annual leave a year. • To have a window office. • To have unlimited donut supplies at my desk. • If I don’t get what I want, I’ll feel like I’ve lost. • I don’t like my boss. He earns too much money. I deserve some. • My wife and I could really use the money for the kids.
1. Separate the people from the problem. Did you pick the kids up from school? Issue It’s just like you to get in an argument over nothing. Negotiation abandoned No I didn’t! I have work 8 until 7 remember? Personal attack Oh yes, because you’re the only one who works! Retaliation
1. Separate the people from the problem. Did you pick the kids up from school? Issue No I didn’t! I have work 8 until 7 remember? Personal attack No, I forgot. I’ll pick them up today and you write your late nights up on the fridge. Return to the issue
1. Separate the people from the problem. Tips Consider apologising or conceding early if you’ve acted unfairly. You’re not here for moral adjudication. Focus on the future, not the past. Be professional, but not too rigid. If the people problem is too intense, reconsider your need to negotiate.
2. Focus on interests, not positions Positions are our end proposal that are always based one something deeper. Consider your need to drive an expensive sports car, complete a law degree, go to the gym etc. By delving deeper, you can create more satisfying and effective agreements. Ask why?
2. Focus on interests, not positions Boss, I want a free gym membership. Position No, that’s not company policy. Position
2. Focus on interests, not positions Boss, I want a free gym membership. Issue Oh? How about I give some money for inter-firm drinks once a fortnight? That’s cheaper and probably more effective. Why? Uncovering interests Umm, all the corporate types do it. It’s where I can be seen and network with other lawyers. Interest
2. Focus on interests, not positions Tips Write down all of your opponent’s issues and include a “why” column. Probe, but don’t fish. Remember, they can’t disclose everything and neither can you – interests may not always be noble. Acknowledge every interest as important (and usually legitimate). Think beyond cash.
3. Invent options for mutual gain Brainstorming may seem like an uncomfortable think to do, but do it! Try to “dovetail” the interests once discovered. Think laterally and creatively. Delay judgment until all options are on the table.
3. Invent options for mutual gain How about we do A, it screws you over but it satisfies all of my interests! Option No thanks. I think it’s in both our interests to do B. Well, it’s in my interests. I don’t really know what yours are. Counter Option Ooh, that’s tempting but no. Rejection
3. Invent options for mutual gain I’ve got a great idea boss! The team and I did some research late last night and I think there is potential to mine a lot of precious metals in Mongolia. The government’s fairly stable and the law’s established. Can I send you a proposal? Option No. Too risky. Blanket rejection
3. Invent options for mutual gain I’ve got a great idea boss! The team and I did some research late last night and I think there is potential to mine a lot of precious metals in Mongolia. The government’s fairly stable and the law’s established. Can I send you a proposal? You’ve just rejected: Having ideas Approaching me with ideas Working well with the team Doing research and working hard Mining precious metals Mining in Mongolia The government being stable The law being established Creating proposals
3. Invent options for mutual gain Ah, great work! Looks like you’ve been working hard. Mongolia does have a lot of good resources as you know and the government is encouraging foreign investment. I’m uncertain about the political risk though. Can you include that in your proposal and send it through? I’ve got a great idea boss! The team and I did some research late last night and I think there is potential to mine a lot of precious metals in Mongolia. The government’s fairly stable and the law’s established. Can I send you a proposal? Option
3. Invent options for mutual gain Tips Make your suggestions options, not positions. Use what if we… Use yes, and… don’t use but Be genuine, not every suggestion is a wise one.
4. Insist on using objective criteria The pie once baked must be cut. Use a method that’s independent of the will of either party. This is the main strategy of principled negotiation which will produce wise, predictable and fair agreements.
4. Insist on using objective criteria I haven’t prepared. We want $525,000 for the house. Why? Because that’s how much it’s worth! Look at it, it’s gorgeous!
4. Insist on using objective criteria Winning. We want $525,000 for the house. Why? Houses around this area have recently sold for $550,000 but this one has a slightly smaller backyard. (Market value)
4. Insist on using objective criteria Objective criteria: Market value Replacement value Insurance value Historical value Comparable value Expert opinion Purchase value Accounting value Production capacity
A note on POWER Most people assume money and resources = negotiating power. Incorrect. Your power is your Best Alternative to a Negotiated Agreement (BATNA) This is your best course of action if you don’t reach an agreement. Which party needs the agreement more? To improve your negotiating power, improve your BATNA.
Prepare, prepare, prepare! Think of likely interests both common and conflicting Prepare some figures and come with proposals Think about your BANTA Meet with your team mate Think about your strategy.
Rules of the UQLS Competition Common facts, secret facts. 50 mins with the option of a 5 min break. Reflection with the judge immediately after the negotiation. No time warnings. Check your email and the UQLS website. Please attend your negotiation. Dress in corporate clothing.
Contact – How To Negotiate email@example.com 12 – 1, Monday, UQLS Office