Negotiation principles

1. Negotiation Principles

Managing Technical People

2.

Topics and Agenda
What is Negotiation?
Negotiation Styles
Preparing for Negotiations
Conducting Negotiations
Influencing Factors
Exercise 11: Negotiation
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3.

Course Progress
Module 0: Factors Influencing Human Interaction
Module 01: Communication
Module 02: Decision Making
Module 03: Negotiation
Class 13: Negotiation Principles
• Class 16: Capstone Project: Part 02
• Class 14: Video Analysis 03
• Class 17: Case Study 02
• Class 15: Role Play 03
Module 04: Conflict Management
Module 05: Relationship Management
Module 06: Leadership
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4.

What Is Negotiation?
“You can get much farther with a kind word and a gun than
you can with a kind word alone.”
Al Capone
American Gangster
“If you can't go around it, over it, or through it, you had
better negotiate with it.”
Ashleigh Brilliant
Artist and Writer
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5.

What Is Negotiation?
• Occurs when goals are potentially:
• Interdependent
• Incompatible
• What is the purpose in a negotiation?
• Deal making
• Decision making
• Dispute resolution
• Others?
Negotiating Globally: How to Negotiate Deal, Resolve Disputes, and Make Decisions across Cultural Boundaries. Jeanne M. Brett
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6.

What Is Negotiation?
• Small or large in scale
• Deal with mundane tasks or global issues
• Can take place between:
• Two individuals
• Designated agents
• Coalitions or groups
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7.

Influencing Factors
Why is negotiation sometimes hard for “techies”?
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8.

Negotiation Styles
High
Competitive
Win at all cost
Win-lose
Assertiveness
Collaborative
Win-win
Compromise
Split the difference
Avoiding
Lose-lose
Accommodating
Lose to win
Low
Low
Cooperativeness
High
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9. Competitive

When quick, decisive action is vital—for example, in an
emergency
On important issues when unpopular courses of action need
implementing—for example, cost cutting, enforcing
unpopular rules, discipline
On issues vital to company welfare when you know you’re
right
When you need to protect yourself from people who take
advantage of noncompetitive behavior
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10. Collaborative

When you need to find an integrative solution and the
concerns of both parties are too important to be
compromised
When your objective is to learn and you wish to test your
assumptions and understand others' views
When you want to merge insights from people with different
perspectives on a problem
When you want to gain commitment by incorporating others’
concerns into a consensual decision
When you need to work through hard feelings that have been
interfering with a relationship
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11. Avoiding

When an issue is unimportant or when other, more important issues are
pressing
When you perceive no chance of satisfying your concerns—for example,
when you have low power or you are frustrated by something that would
be very difficult to change
When the potential costs of confronting a conflict outweigh the benefits
of its resolution
When you need to let people cool down—to reduce tensions to a
productive level and to regain perspective and composure
When gathering more information outweighs the advantages of an
immediate decision
When others can resolve the issue more effectively
When the issue seems tangential or symptomatic of another, more basic
issue
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12. Accommodating

When you realize that you are wrong—to allow a better
solution to be considered, to learn from others, and to show
that you are reasonable
When the issue is much more important to the other person
than it is to you—to satisfy the needs of others and as a
goodwill gesture to help maintain a cooperative relationship
When you want to build up social credits for later issues that
are important to you
When you are outmatched and losing and more competition
would only damage your cause
When preserving harmony and avoiding disruption are
especially important
When you want to help your employees develop by allowing
them to learn from their mistakes
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13. Compromise

When goals are moderately important but not worth the
effort or the potential disruption involved in using more
assertive modes
When two opponents with equal power are strongly
committed to mutually exclusive goals—as in labor–
management bargaining
When you want to achieve a temporary settlement of a
complex issue
When you need to arrive at an expedient solution under time
pressure
As a backup mode when collaboration or competition fails
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14.

Preparing For Negotiations
Factors that influence parties’ rigidity or flexibility:
BATNA: Best Alternative To Negotiating an Agreement
Aspiration: This is what I am really hoping to get
Reservation: This is where my bottom line is
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15.

Example: Purchasing A House
Factors
Examples
BATNA
• Buy another house
• Remodel or upgrade
current house
• Continue to rent
Aspiration
• Preferred or target price
buyer would like to pay
Reservation
• Highest price buyer will pay
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16.

Example: Selling A House
Factors
Examples
BATNA
• Look for another potential
buyer
• Take house off the market
• Convert house into rental
unit
Aspiration
• Preferred or target price
seller would like to receive
Reservation
• Lowest price seller will
accept
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17.

Example: Job Offer
Factors
Examples
BATNA
Aspiration
• Preferred or target salary
potential employee would
like to receive
Reservation
• Lowest salary potential
employee will accept
Consider another job offer
Look for another job offer
Keep current job
Retire
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18.

Example: Software Requirements
Factors
Examples
BATNA
?
Aspiration
?
Reservation
?
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19.

Example: Software Requirements
Factors
Examples
BATNA
Aspiration
Preferred or target set of requirements
that:
• Developers would like to develop
• Customer would like to have
developed
• Most extensive and complicated set of
requirements to which the developers
will agree
• Least extensive and complicated set of
requirements to which the
client/customer will agree
Reservation
Trade-off other requirements
Decline contract
Find another client/customer
Find another product/service provider
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20.

Bargaining Power
Bargaining Power: Ability to achieve good outcomes
Sources of Bargaining Power
• Preparation for negotiations
• Capability to persuade others
• Good BATNA
• Creativity
• Opportunity and willingness to
create value for others
• Strong relationships
• Knowledge about other side
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21.

Conduction Negotiations: Getting To Yes
The Problem
People bargain over positions
The Method
Separate the people from the problem
Focus on interests not positions
Invent options for mutual gain
Insist on using objective criteria
Getting to Yes: Negotiating Agreement Without Giving In: Roger Fisher and William Ury
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22.

Conducting Negotiations: Inventing Options For Mutual Gain
What’s wrong
in theory?
What’s wrong
in the real
world?
Step 2
Analysis
Step 1
The
Problem
Step 3
Approaches
Step 4
Action
Ideas
Getting to Yes: Negotiating Agreement Without Giving In: Roger Fisher and William Ury
What might
be done in
theory?
What might
be done in
the real
world?
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23.

Influencing Factors: Context
• Principals vs. agents
• Do you have a direct stake in the negotiation?
• Trust
• Do you believe in the other party’s words, actions, and decisions?
• Emotions
• Are your emotions helping or hurting the negotiation?
• Justice
• Do you think you are being treated fairly or unfairly?
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24.

Influencing Factors: Culture
Interests
and
Priorities
Potential for
Integrative
Agreement
Interests
and
Priorities
Culture A
Negotiator
Type of
Agreement
Culture B
Negotiator
Strategies
Pattern
of
Interaction
Strategies
Adapted from Culture and Negotiation: Jeanne M. Brett
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25.

Influencing Factors: Medium
• How might negotiations be affected by the medium that’s used?
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26.

Influencing Factors: Communication
Skilled Negotiators:
Avoid:
Use:
• Irritators
• Testing Understanding and Summarizing
• Counterproposals
• Asking Questions
• Defend/Attack Spirals
• Feelings Commentary
The Effective Negotiator — Part I: The Behaviour of Successful Negotiators : Neil Rackham and John Carlisle
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Influencing Factors: Personality
Study included looking at four elements:
Two negotiation scenarios were presented:
Extroversion, Agreeableness, Conscientiousness and Intelligence
Win-Lose / Distributive
Win-Win / Integrative
Predictions?
Win-Lose
Win-Win
“Should You Be a Negotiator”: Ray Friedman and Bruce Barry
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28.

Influencing Factors: Personality
Results:
Win-Lose - Conscientiousness and intelligence had no effects.
Win-Win – Extroversion or agreeableness had no effects.
Do you think the results of the Friedman and
Barry study seem reasonable?
“Should You Be a Negotiator”: Ray Friedman and Bruce Barry
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29.

Influencing Factors: Personality
Relater
Thinker
Socializer
Director
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30.

You have 30 minutes
Complete
Exercise 13
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