Principled Negotiation
Maureen Gauci
29 Sept 2013
What is Negotiation?
•The parties in conflict attempt to resolvetheir issues on their own, without thirdparty assistance
Queen's Fall 2012 M. Gauci
When to Negotiate:
Trust levels between parties are decent
Current or relatively untroubled history
Low or manageable power imbalance
Phase of escalation is at productive level (orslightly higher)
able to strategically think through thematters that will arise during thenegotiation, and the potential outcomes ofthe negotiation
Queen's Fall 2012 M. Gauci
Negotiation Styles
Soft (Co-operative)
Hard (Competitive)
Principled (IBN)
Avoid conflict
Friends
Change positionseasily
Concede generously
Avoid contests of will
Make concessions forthe relationship
Back down toultimatums
Win at all costs
Adversaries
Dig in to your position
Concede stubbornly
Win contests of will
Demand concessions tohave a relationship
Make threats,ultimatums
Problem solve
Professionals
Focus on interests
Invent options
Use objective criteria
Separate people from theproblem
Know each side’s bestwalkaway alternative
Queen's Fall 2012 M. Gauci
Understanding Interests
Interests
Substantive
Interests
ProceduralInterests
Psychological
Interests
Principled Negotiator Assumptions:
Common interests are valued andsought
Interdependence is seen as positive
Resources can be expanded throughcooperation
The goal is a mutually agreeablesolution that is fair
Queen's Fall 2012 M. Gauci
Negotiation Essentials
•Prepare your BATNA/WATNA andobjective criteria
•Distinguish between the person and theproblem (what are the issues?)
•Move from positions to interests
•Develop multiple and creative options
•Craft a thorough agreement-fair, wise,enduring
Queen's Fall 2012 M. Gauci
Separating people from theproblem:
Human beings first and foremost with:
Emotions, deeply held values and beliefs,different backgrounds and viewpoints
Make working relationships work by:
Building trust, understanding, and respect
Common Interests
Queen's Fall 2012 M. Gauci
The Differences Between…
Talking about Positions:
•Fail to listen – restate yourposition
•Focus on the past
•Focus on who to blame,who is right, wrong
•Identify the other person aspart of the problem
•Go for the win
Talking about Interests:
•Actively listen to the otherpoint of view
•Focus on the future
•Identify the problem anddiscuss what has to be done
•Tackle the problem together
•Clarify interests
•Use creative problem solvingand option generation
Queen's Fall 2012 M. Gauci
Positions
FOCUS ON INTERESTS; NOT POSITIONS
POSITIONS:
•The ideal outcome from MY pointof view
•Usually stated as a demand
•One party is advantaged over theother
•Position is thrust on the otherparty with little or no opportunityor desire for understanding
•Limits options – but veryimportant to hear
Interests
INTERESTS:
•Closely connected to values andpriorities
•Expressed as underlying wants,needs, fears, etc.
•Qualities that motivate ourposition
•Fundamental reasons behindpositions not generally discussed- unless someone asks!
•Concerns, Hopes, Expectations,Assumptions, Perceptions,Priorities, Values, Impacts,Consequences (CHEAPP VIC)
FOCUS ON INTERESTS; NOT POSITIONS
Positions
Needs
Basic Human Needs*:
•Have fun, relax, play, be happy, peace
• Survive: physical, financial, emotional
• Power: respect, dignity, consultation,
• Success: competent, capable, recognition,purpose/meaning, important, autonomy
• Contribute: co-operate, collaborate
• Belonging: friends, family, workplace,social connection*
*As per Dr. William Glasser
Positions
Interests
FOCUS ON INTERESTS; NOT POSITIONS
Some common interests:
•To be heard
•To be consulted
•To be respected
•To co-operate, collaborate
•To be treated fairly, equitably
•To have stability
•To trust, be trusted
•To have flexibility
Queen's Fall 2012 M. Gauci
Stage 1 - Preparation
•Think through the (potential) difficultconversation
•Identify the issues you believe need to beresolved
•What are your interests?
•Develop your BATNA/WATNA
•Determine applicable objective criteria
•What are the interests for the other side?
•Who (authority), How, Where?
Queen's Fall 2012 M. Gauci
BATNA
Best Alternative to a Negotiated Agreement:
•Invent a list of actions you might conceivably take if noagreement is reached.
•Improve some of the more promising ideas andconvert them into practical options
•Select, tentatively, the one option that seems best (thebetter your BATNA, the better your negotiatingstrength is)
Queen's Fall 2012 M. Gauci
WATNA
Worst Alternative to a Negotiated Agreement
•WATNA is the worst case scenarioagainst which any proposal should bemeasured
•WATNA is used to aid in decision-making when searching for solutions
Queen's Fall 2012 M. Gauci
OBJECTIVE CRITERIA
• Examples of Fair Standards
• Examples of Fair Procedures
• Precedent
• Scientific judgment
• Professional standards
• Efficiency
• Costs
• What a court would likely decide
• Moral standards
• Equal treatment
• Tradition
• Reciprocity
• Coin toss
•Taking turns
•Drawing straws, cards etc.
Stage 1 –Set the Stage
Some common ground rules:
•All relevant information will be disclosed
•All information will be kept confidential
•Good faith will be demonstrated throughout the process
•Parties will demonstrate active and respectful listening
•Parties will use non-judgmental communication (noaccusing, blaming, name-calling etc.)
•Agree on method for breaks and caucus (if necessary touse this)
•Settlement discussions are on a “without prejudice”basis
Queen's Fall 2012 M. Gauci
Stage 2: Stories
Each person gives their perspective on:
•The “what happened” conversation
•Use “I” messages to remove blame andmaximize the opportunity to be heard.
•Frame in neutral, non-blaming language.
•Use CHEAPP VIC to frame your interests
From this stage will come the identification of issues
Queen's Fall 2012 M. Gauci
Stage 2 - Issues
Separating People from the Problem:
Focus on the subject matter of the problem
Put yourself in their “shoes” to try andunderstand their perceptions
Be empathic and non-judgmental
Look for opportunities to act inconsistentlywith their perception of you
Expect to determine differences ofopinion/value/expectation, etc.
Use neutral framing– don’t make it personal!
Queen's Fall 2012 M. Gauci
Stage 3 - Discussion
•When the parties communicate back and forth,looking toward agreement, the same four elementsare the best subjects to discuss:
•Problems (people & other) can be acknowledgedand addressed.
•Each side comes to understand the interests of theother.
•Both can then jointly generate options that aremutually advantageous
•Together they seek agreement on objectivestandards for resolving opposed interests.
Generating Options
•Only when interests have been identified,should the search for solutions/options begin.Otherwise, the danger is what you are tryingto “fix” may not actually be the problem…
•Avoid the assumption of the “fixed pie”
•Reality-check options to ensure they will standthe test of time and wisdom!
Queen's Fall 2012 M. Gauci
Fair, wise and enduringAgreements
Any resulting agreement shouldalways answer the questions:
? Who
? What
? How
? When
? Where, and
? What if
Queen's Fall 2012 M. Gauci
Queen's Fall 2012 M. Gauci
Obstacles
•Time
•Environment
•Expectations of others
•History
•Competitive party
•“Un-enlightened” i.e lack of training
•Unclear expectations of process and parties
•Lack of preparation
•Power imbalances
•Unaddressed Cultural Differences