PRINCIPLED NEGOTIATION

Negotiating is something we do every day.

Negotiating is about producing wise and
stable outcomes in situations of conflict.
The ability to negotiate can make the
difference between success and failure.

PRINCIPLED NEGOTIATION
KEY IDEA

Never negotiate over positions
EXAMPLES OF POSITIONS
I want 375 000 for the sale of this
business and I wont take a penny less.
The rent on this flat is 500 a month take
it or leave it.
I am entitled to take next week as
holiday

ALTERNATIVES TO POSITIONAL
BARGAINING
Separate the people from the problem.
Focus upon interests, not positions.
Invent options for mutual gain.
Insist upon objective criteria.
SEPERATING THE PEOPLE FROM
THE PROBLEM
Negotiating can involve dealing with
emotion.
Emotion can be a destructive influence.
Emotions may be stirred by fear of loosing.

HANDLING EMOTION
Perception is the key to handling emotion.
PERCEPTION
Try and see the issues from the other partys point
of view
Never deduce their intentions from your worst
fears
Avoid blaming the other party for the problem
Try and act inconsistently with the other partys
perceptions
Involve the other party give them a stake in the
outcome
Allow the other party to save face
EMOTION
Recognise and understand emotions of all
partys
Allow people to express emotion
Never react to an emotional response
COMMUNICATION
Is the key to achieving understanding


GOOD COMMUNICATION
Generous listening listen actively and
show you have listened by asking questions.
Speak for a purpose get your message
across
Build relationships
FOCUS ON INTERESTS NOT
POSITIONS
EXAMPLE

Naming a rent is a position
Seeking a good tenant is an interest
FOCUS ON INTERESTS NOT
POSITIONS
ANOTHER EXAMPLE:

Naming a price is a position.
Obtaining good and reliable supplies is an
interest.
(You can always get something cheaper!)
INTERESTS
The task of negotiating is to reconcile
interests
Interests define the problem
Interests may conflict but there often
multiple shared interests
SHARED INTERESTS
EXAMPLE

Both landlord and tenant may want stability,
a safe, comfortable and attractive property.
INTERESTS
Make a list:

They want
You want
You both want
INTERESTS
Discuss interests openly
Acknowledge each others interests as part
of the problem
Be clear about your interests but flexible
about how you might achieve them
Be hard on the problem soft on the people
INTERESTS
Different interests can
be reconciled.
Customer wants to be
supplied on time, no
matter what happens.
Seller wants to be paid
promptly.
Entrepreneur wants a
quiet life. So, actually
does the taxman!


INVENT OPTIONS FOR MUTUAL
GAIN
This is the most creative part of the
negotiations process
It is generative scope for lateral thinking,
parallel thinking and brainstorming
Broaden options, multiply options
Search for mutual gain
BLOCKAGES TO INVENTING
OPTIONS
Premature closure
Single answer mentality
Fixed pie assumption
Refusing to deal with the other partys
problem as part of the problem.
OBJECTIVE CRITERIA
GENERIC EXAMPLES
Market value
Equal treatment
Professional standards
Efficiency
Costs
OBJECTIVE CRITERIA
EXAMPLES:

Compare price of equipment with similar
machines
Base rent on market rates for comparable
properties
Wage rises linked to a cost of living index



OBJECTIVE CRITERIA
The cost of NOT negotiating on the basis of
objective criteria is to become involved in a
contest of wills.
Yield to reason but not pressure.
Where possible develop and agree objective
criteria with the other party

POWER DIFFERENTIALS
WHAT IF?

They are more powerful than you?
They refuse to negotiate?
You simply dont trust the other party to
keep their promises?
The other party makes extreme demands?
POWER DIFFERENTIALS
Dont attack their position explore the
interests and emotions that lie behind it
Dont take up a fixed position invite
criticism and advice
Reframe personal attacks as an attack on
the problem
Ask questions
Institute a pause

POWER DIFFERENTIALS
Finally if all else fails.
POWER DIFFERENTIALS
INVOKE Best alternative to a negotiated
agreement. (BATNA)
POWER DIFFERENTIALS
To prepare best alternative consider:

- costs to you of not reaching agreement,
- costs to other party of not reaching an
agreement.

The scope for negotiation lies in the space
between

POWER DIFFERENTIALS
No matter how powerful the stronger party
is, the weaker party always has some
power.
SURPRISES IN NEGOTIATION
The best alternative might actually be the
better option! Remember: green hat
thinking.
The other partys power reflects your need
for what they control.
Note: there are few if any must haves in
this life!
PRINCIPLED NEGOTIATION
SUMMARY
The aim of principled negotiation is to avoid
getting into a contest of wills that often
leads to conflict or an inefficient mechanical
splitting of the difference.
PRINCIPLED NEGOTIATION
SUMMARY
Separate the people from the problem.
Focus upon interests not positions.
Invent options for mutual gain.
Insist upon objective criteria.
Prepare a best alternative to a negotiated
agreement.