Proactive Negotiation: Leading the Conversation with Confidence

Charles Doran Mediation Works Incorporated

2003 Debt Management Conference

A Negotiation Example
What follows is a transcript of a radio conversation between a U.S. naval ship and Canadian authorities off the coast of Newfoundland. Canadians: Please divert your course 15 degrees to the south to avoid a collision. Americans: Recommend you divert your course 15 degrees to the north to avoid a collision. Canadians: Negative. You will have to divert your course 15 degrees to the south to avoid a collision. Americans: This is the Captain of a U.S. Navy ship. I say again, divert YOUR course. Canadians: No. I say again, you divert YOUR course. Americans: THIS IS THE AIRCRAFT CARRIER U.S.S. LINCOLN, THE SECOND- LARGEST SHIP IN THE UNITED STATES' ATLANTIC FLEET. WE ARE ACCOMPANIED BY THREE DESTROYERS, THREE CRUISERS AND NUMEROUS SUPPORT VESSELS. I DEMAND THAT YOU CHANGE YOUR COURSE 15 DEGREES NORTH. I SAY AGAIN, THAT'S ONE FIVE DEGREES NORTH, OR COUNTERMEASURES WILL BE UNDERTAKEN TO ENSURE THE SAFETY OF THIS SHIP . Canadians: This is a lighthouse. Your call.

2003 NCHELP Debt Management Conference

What Is Wrong

What Might Be Done

In Theory

Step II. Analysis

Step III. Approaches

In The Real World

Step I. Problem

Step IV. Action

Q u a d r a n t C h a r t O v e r v i e w

2003 NCHELP Debt Management Conference

Conflict can
  

Be constructive or destructive Be energizing or unnerving Produce higher quality results or stifle a project Lead to original thinking or cause destructive power struggles
2003 NCHELP Debt Management Conference

Conflict can be Constructive

Taps creativity and problem solving  Generates new solutions  Increases involvement  Improves communication  Releases pent-up emotion  Builds cohesiveness  Helps individuals and teams grow

2003 NCHELP Debt Management Conference

Conflict can be Destructive

      

Reduces productivity Destroys morale Spawns additional conflict Polarizes groups Produces regrettable behavior Diverts energy Deepens differences

2003 NCHELP Debt Management Conference

Negotiation Styles
high

Interest in achieving OUR goals

low Interest in seeing the other achieve THEIR goals

high

2003 NCHELP Debt Management Conference

Avoiding
high

Interest in achieving OUR goals

Useful for: Issues of low importance Reducing tensions Buying time Low power

Ill think about it tomorrow

x
low Interest in seeing the other achieve THEIR goals high

2003 NCHELP Debt Management Conference

Competing
high

x
Interest in achieving OUR goals

My way or the highway

Useful for: Quick action Unpopular decisions Vital issues Protection
low Interest in seeing the other achieve THEIR goals high

2003 NCHELP Debt Management Conference

Accommodating
high

Interest in achieving OUR goals

Useful for: Creating good will Keeping the peace Retreating Low importance

It would be my pleasure

x
low Interest in seeing the other achieve THEIR goals high

2003 NCHELP Debt Management Conference

Compromising
high

Interest in achieving OUR goals

Lets split the difference

Useful for: Moderate importance Time constraints Temporary solutions Equal power & strong commitment
high

low Interest in seeing the other achieve THEIR goals

2003 NCHELP Debt Management Conference

Collaborating
high

x
Interest in achieving OUR goals

Two heads are better than one

Useful for: Integrating solutions Learning Merging perspectives Gaining commitment Improving relationships
low Interest in seeing the other achieve THEIR goals high

2003 NCHELP Debt Management Conference

Negotiation Styles
high

Competing
Interest in achieving OUR goals

Collaborating

Compromising

Avoiding
low

Accommodating
high

Interest in seeing the other achieve THEIR goals

2003 NCHELP Debt Management Conference

Positional Haggling
Offer/Position Final Offer Last Offer Last & Final Offer Last & Final Offer Last Offer Final Offer Threat/BATNA Offer/Position
2003 NCHELP Debt Management Conference

Threat/BATNA

A Framework for Success

COMMUNICATION RELATIONSHIP

INTERESTS OPTIONS LEGITIMACY

If Yes If No

COMMITMENT

ALTERNATIVE

2003 NCHELP Debt Management Conference

Interests


Definition  Needs, concerns, goals, desires and fears that motivate us to negotiate. Measure  Satisfies both parties interests to make durable outcome Note  Interests Are Different From Positions  Positions are not the only way to meet our interests

2003 NCHELP Debt Management Conference

Options
 

Definition  Range of possibilities on which the parties might agree. Measure  Maximizes creative potential  Leaves no joint gains on the table  Minimal waste Note  Options are different from Alternatives  Options are created On the table  Separate option generation from option selection

2003 NCHELP Debt Management Conference

Alternatives & BATNA



Definition  Things we can do, either by ourselves or with a third party, without the other sides agreement. Our BATNA is our Best Alternative To a Negotiated Agreement. Measure  Any outcome should be better than our BATNA Note  Alternatives are created Away from the table  Develop or improve your BATNA

2003 NCHELP Debt Management Conference

Legitimacy


Definition  The perception of fairness by the parties as determined by outside standards or criteria. Measure  Result perceived as fair; no one feels taken. Note  Sources of legitimacy include: law, precedent, community standards, expert opinion, industry practices, and market prices.  Be open to persuasion

2003 NCHELP Debt Management Conference

Communication


Definition  The medium through which we negotiate. Communication is the exchange of thoughts, messages, or information by speech, signals, writing, physical cues, or other actions. Measure  Effective, Efficient and Authentic  Message sent = message received  Speaker feels heard, and the listener feels involved Note  Dont assume we understand or are understood
2003 NCHELP Debt Management Conference

Relationship


Definition  The quality of interaction between the negotiators. Measure  The process we use today improves our ability to negotiate tomorrow. Note  Treat every relationship as long term  Having a good working relationship does not mean we always agree.
2003 NCHELP Debt Management Conference

Commitment


Definition  An agreement about what each party will or will not do. Measure  Sufficient / Realistic / Operational  Aligned with readiness of the parties Note  Many possible degrees of commitment Drafts, joint recommendations, agreement in principle, binding contract.

2003 NCHELP Debt Management Conference

Proposed Definition of Success

An optimal agreement is one that:
      

Is better than our Best Alternative To a Negotiated Agreement, our BATNA Meets both sides Interests Is the best of many Options Is Legitimate, supported by criteria that is objectively fair Improves, supports, or at least does not damage, the Relationship Is based on clear Communication Identifies Commitments that are operational
2003 NCHELP Debt Management Conference

CONCLUSION - An Unconditionally Constructive Strategy for Leading Negotiations

       

Balance inquiry and advocacy Question to understand Separate the people from the problem Encourage two-way communication Be reliable and expect reliability Use persuasion, not coercion Take the time to define the value of collaboration Work together to find a mutually beneficial solution
2003 NCHELP Debt Management Conference

Learning Cycle

CONSCIOUS INCOMPETENCE

CONSCIOUS COMPETENCE

UNCONSCIOUS INCOMPETENCE

UNCONSCIOUS COMPETENCE

2003 NCHELP Debt Management Conference

Negotiation Bibliography page 1 of 3

Books by Roger Fisher Roger Fisher and William L. Ury, Bruce Patton (Editor), Getting to YES, New York: Penguin Books, 2nd Edition, 1991. Roger Fisher and Scott Brown, Getting Together: Building Relationships as We Negotiate, Boston: Houghton Mifflin, 1988. Roger Fisher Alan Sharp, Getting It Done: How to Lead When You're Not in Charge, New York: Harper Collins, 1998. Roger Fisher and Danny Ertel, Getting Ready to Negotiate: The Getting to Yes Workbook, New York: Penguin Books, 1995. Roger Fisher, Elizabeth Kopelman and Andrea Kupfer Schneider, Beyond Machiavelli: Coping with Conflict, Cambridge: Harvard University Press, 1994. Roger Fisher, Improved Compliance With International Law, William S. Hein & Co., Inc., January 1981. Roger Fisher and William L. Ury, International Mediation: A Working Guide - Ideas for the Practitioner, Cambridge: Harvard Negotiation Project, 1978.

2003 NCHELP Debt Management Conference

Negotiation Bibliography page 2 of 3

Lawrence S. Bacow and Michael Wheeler, Environmental Dispute Resolution, Cambridge: Perseus Books, 1984. J. William Breslin and Jeffrey Z. Rubin, Negotiation Theory and Practice, Cambridge: Program on Negotiation Books, 1995. Herb Cohen, You Can Negotiate Anything, New York: Bantam Books, 1980. Lavina Hall, Negotiation Strategies for Mutual Gain, Newbury Park: Sage Publications Inc., 1993. Deborah M. Kolb, Ph. d. And Judith Williams, Ph. d., The Shadow Negotiation, New York: Simon & Schuster, 2000. Arthur Lall, Modern International Negotiation, New York: Columbia University Press, 1966. David A. Lax, and James K. Sebenius, The Manager as Negotiator: Bargaining for Cooperation and Competitive Gain, New York: Simon & Schuster Trade, 1986. Roy J. Lewicki (Editor), David M. Saunders (Editor) and John W. Minton (Editor), Negotiation: Readings, Cases, and Exercises, New York: McGraw-Hill Companies, 1998.

2003 NCHELP Debt Management Conference

Negotiation Bibliography page 3 of 3

Bruce Patton, Douglas Stone, Sheila Heen, Difficult Conversations: How to Discuss What Matters Most, New York: Viking, 1999. Howard Raiffa, John S. Hammond, Ralph L. Keeney, Smart Choices: A Practical Guide to Making Better Decisions, Cambridge: Harvard Business School Press, 1999. Jeffrey Z. Rubin and Dean G. Pruitt, Social Conflict: Escalation, Stalemate and Settlement, New York: McGraw-Hill Companies, 1993. Jeffrey Z. Rubin and Dean G. Pruitt, Sung Hee Kim, Social Conflict: Escalation, Stalemate and Settlement, New York: McGraw-Hill Companies, second edition 1994. Eric Rasmusen, Games and Information: An Introduction to Game Theory, Blackwell Publishers, 1994. Thomas C. Schelling, The Strategy of Conflict, Cambridge: Harvard University Press, 1990. G. Richard Shell, Bargaining for Advantage, New York: Penguin Books, 1999. Timothy J. Sullivan, Resolving Development Disputes through Negotiations, Cambridge: Perseus Books, 1984. William L. Ury, Getting Past No: Negotiating Your Way from Confrontation to Cooperation, New York: Bantam Books, 1993. I. William Zartman and Maureen Burman, The Practical Negotiator, New Haven: Yale University Press, 1983.

2003 NCHELP Debt Management Conference

About Mediation Works Incorporated

MEDIATION WORKS INCORPORATED www.mwi.org Mission Statement: Mediation Works Incorporated is dedicated to providing innovative dispute resolution services and training to clients seeking to resolve difficult disputes. Training Programs and Workshops y Negotiation Skills Workshops y Mediation Training y Dispute Resolution Seminars Dispute Resolution Services y Business and Workplace Mediation Services y Divorce and Family Mediation Services y Organizational Ombuds Services y Facilitation Services Please call 800-348-4888 or visit <www.mwi.org> for more information and a free quote.

2003 NCHELP Debt Management Conference

MWI Negotiation Skills Workshops page 1 of 4

Mediation Works Incorporated offers Customized On-site Negotiation Skills Workshops for groups within a particular organization. Customized On-site Negotiation Skills Workshops enable organizations to:

Provide individuals and groups across the organization with a shared vocabulary and common set of skills and tools to help them negotiate more effectively; Address organization-specific negotiation challenges by using customized role-plays and cases based on participants realworld scenarios ; Focus on particular areas of negotiation effectiveness such as:
dealing with difficult people and tactics building long-term, strategic relationships communicating effectively influencing and persuading others managing differences in perceptions managing roles in multi-party negotiations

Maximize resources by offering local workshops for groups of employees rather than sending them individually to public workshops Decide on a convenient time and location for the workshops which complements the schedule of the employees/organization

In addition, MWIs Negotiation Skills Workshops build each participants capacity to transform adversarial approaches to negotiation into problem-solving collaborations, producing better outcomes for all parties while enhancing long-term working relationships. Each training workshop is designed to:
   

Stimulate participants awareness of the complexities of negotiation Equip participants with a framework for understanding, diagnosing and leading the negotiation process Enhance participants skills through hands-on experience and feedback Provide participants with a process for continued improvement and learning

2003 NCHELP Debt Management Conference

MWI Negotiation Skills Workshops page 2 of 4

Conceptual Foundation of MWIs Negotiation Skills Workshops MWI's Negotiation Skills Workshops build on the ideas and frameworks developed by Professor Roger Fisher and his colleagues at the Harvard Negotiation Project at Harvard Law School. Based on the best-selling book Getting to Yes, the training workshops feature the key elements of Fisher's model, widely known in the field as integrative bargaining or principled negotiation. Representing a landmark shift in how negotiation is understood and conducted, Fisher's ideas have been implemented throughout the world in all sectors of society, from community-based disputes to intra-organizational conflict to public policy debates. For years, experienced practitioners have reported that training in principled negotiation has increased their confidence and competence. WORKSHOP METHODOLOGY Following the teaching model of the Harvard Negotiation Project, MWI uses a hands-on, interactive, skill-centered method of teaching negotiation. Each day of the workshop, core concepts and frameworks are presented in an interactive style to the participants. Building on the interactive presentations, each day centers on case simulations in which participants actually negotiate and apply the theory they are learning. Case simulations are drawn from the teaching materials developed and used by the Program on Negotiation at Harvard Law School. After completing each case, instructors lead participants through a systematic analysis of the negotiation. During the analysis portion, emphasis is placed on bringing out the experience and expertise of the group and organizing their ideas into a useful set of guidelines for negotiating in the future. Portions of the training workshop will be spent: learning a new systematic framework for preparing for, conducting and reviewing negotiations; participating in exercises designed to enhance and highlight particular skills; watching demonstrations of new techniques; and debriefing exercises in small group discussions.

2003 NCHELP Debt Management Conference

MWI Negotiation Skills Workshops page 3 of 4

PREPARATION FOR THE WORKSHOP: DIAGNOSTIC PHASE In order to provide the most relevant training possible for participants in a given organization, MWI conducts diagnostic interviews by phone and/or in person prior to the Negotiation Skills Workshop with a cross-section of employees who will be participating in the workshop. The goal of conducting the diagnostic interviews is for MWI to gain a better understanding of the internal and external negotiation challenges the workshop participants are facing and gain a broader understanding of the structure, business and purpose of the organization in order to: Effectively address organization specific negotiation challenges in the workshop; and create organization specific case studies and role-plays for the participants in the workshop. All information provided to MWI will be held in strict confidence. STRUCTURE OF CUSTOMIZED ON-SITE NEGOTIATION SKILLS WORKSHOPS Typical on-site programs vary from one to five days in length. The shorter programs (one-day workshops) provide participants with a basic awareness of their current assumptions about negotiation and a conceptual understanding of the Seven Elements of Negotiation framework. The longer programs (three- to five-day workshops) enable participants to improve skills by preparing, conducting and reviewing multiple simulated cases, in addition to learning the theory of negotiation effectiveness. Shorter programs focus largely on simple frameworks for preparing for and conducting transactional negotiations. Longer programs expand to include a range of modules depending on client needs, including but not limited to: dealing with difficult people and tactics; communicating effectively; influencing and persuading others; managing differences in perceptions; and managing roles in multi-party negotiations. PRAISE FOR MWI'S NEGOTIATION SKILLS WORKSHOPS The trainers were very involved. They were very interested in our particular situation here at [our company]. I have learned a vast wealth of knowledge on, and a practical appreciation for, the art and theory of negotiation in all of its capacities. The trainers were excellent they were very well organized and worked well as a team. I attend a lot of presentations and this is one of the best. The cases were very interesting and realistic and made us want to learn the techniques needed. The teaching staff was superb very good at demonstrating ideas and leading us in developing them for ourselves. I found it valuable to get to the underlying interests behind positions, as this can bring up options that are mutually beneficial but not inherently obvious.

2003 NCHELP Debt Management Conference

MWI Negotiation Skills Workshops page 4 of 4

For more information about MWIs Negotiation Skills Workshops, including a detailed proposal, please contact me at 800-348-4888 x22 or <chuckdoran@mwi.org> with questions. Thank you. Sincerely,

Charles Doran Executive Director Mediation Works Incorporated 9 Park Street - Sixth Floor Boston, MA 02108-4807 Phone: 617-973-9739 x22 / 800-348-4888 Fax: 617-973-9532 E-mail: chuckdoran@mwi.org Web: http://www.mwi.org/

2003 NCHELP Debt Management Conference