WIN/WIN
NEGOTIATIONS
Presented by:
Dave Kaczmarek, CMRP, FAHRMM
Senior Director, Huron Healthcare
312-718-6031
Dkaczmarek@huronconsultinggroup.com
A New Car
List price
$25,000
Your target
$22,000
For commission $20,000
Your first offer
$19,000
Final price
$21,000
Win/Win????
When do YOU
negotiate?
SHOULD I NEGOTIATE?
Questions to Ask
• Can I live with the current offer?
• What’s the probability of a better solution?
• Do I have the time to invest?
• Do I have the necessary knowledge?
• Do I have the power to impose my solution?
WHO IS YOUR AUDIENCE?
NORMAL NEGOTIATION STYLES
Adversarial (Hard)
• Take positions
• Clarify and defend
• Convince
Concessionary (Soft)
• Worry about relationship
• Sloppy agreements
• Vulnerable
CONTRASTING STYLES
WIN - WIN
WIN - LOSE
WIN/WIN PRINCIPLES
Cooperation
People & Problems
Interests Not Positions
Creative Options
Objective Standards
COOPERATION
•
Partners in finding a solution
•
View as an opportunity to problem solve
•
Both outcome AND process are important
•
The relationship should be enhanced
PEOPLE & PROBLEMS
Failing to deal with others sensitively as
human beings prone to human reactions
can be disastrous for a negotiation.
- from Getting to Yes
PEOPLE & PROBLEMS
Negotiation happens at two levels
• Substantive
• Interpersonal
Egos become involved
Parties draw unfounded inferences
PEOPLE & PROBLEMS
Base the relationship on:
•
Accurate perceptions
•
Appropriate emotions
•
Clear communication
•
Forward-looking, purposive outlook
INTERESTS NOT POSITIONS
Interests:
- the silent movers behind the positions
Composed of
- needs
- concerns
- desires
- fears
INTERESTS NOT POSITIONS
Reconciling interests works because
For every interest
Several possible
positions
Behind opposed
positions
More shared
interests
INTERESTS NOT POSITIONS
How do you identify interests?
•
Ask “why”
•
Ask “why not”
•
Realize there are multiple interests
•
Focus on basic human needs
INTERESTS NOT POSITIONS
Explain What Your Interests Are:
•
Make your interests come alive
•
Acknowledge their interests
•
Put the problem before your answer
•
Look forward not back
•
Be concrete but flexible
CREATIVE OPTIONS
To invent creative options you must:
1. Separate inventing from judging
•
Brainstorm with colleagues
•
Brainstorm with other side
CREATIVE OPTIONS
To invent creative options you must:
2. Broaden the options on the table
•
Don’t look for the single answer
•
Use facilitation techniques
•
Change the scope
•
Invent different strengths
BROADEN THE OPTIONS
Stronger
Weaker
Substantive
Permanent
Comprehensive
Final
Unconditional
Binding
Procedural
Provisional
Partial
In principle
Contingent
Nonbinding
CREATIVE OPTIONS
Let’s Divide a Pie
Let’s Divide a Pie
This
Kathi
Dave
Kathi
This
Kathi
Dave
Dave
CREATIVE OPTIONS
To invent creative options you must:
3. Search for mutual gains
•
Make the pie bigger
•
Identify shared interests
•
Dovetail differing interests
•
Ask for preferences
CREATIVE OPTIONS
To invent creative options you must:
4. Make their decision easy
•
See through their eyes
•
Look for legitimacy
•
What are the consequences
•
Do a “yesable proposition”
Sufficient
Realistic
Operational
OBJECTIVE STANDARDS
Fair
Standards:
Market value
Precedent
Efficiency
Tradition
Equal Treatment
Reciprocity
Scientific judgment
Costs
Professional/moral standards
What a court would decide
OBJECTIVE STANDARDS
Fair
Procedures:
One divide, the other choose
Take turns
Use arbitrator
Develop solution before you decide
who will do which
Last best offer arbitration
OBJECTIVE STANDARDS
Negotiating With Objective Criteria:
•
Frame each issue as a joint search
•
Reason and be open to reason
•
Never yield to pressure - only principle
WIN/WIN PRINCIPLES
Cooperation
People & Problems
Interests Not Positions
Creative Options
Objective Standards
DON’T REACT
Go to the Balcony
What is a
B est
A lternative
To a
N egotiated
A greement
DEVELOP YOUR BATNA
Without One It Is Easy To:
•
See your alternative in the aggregate
•
Be unduly pessimistic
•
Agree or not agree unwisely
DEVELOP YOUR BATNA
•
Invent a list of actions
•
Improve some of the more promising
•
Select, tentatively, the best one
A WIN/WIN
RESULT
Destroy Your Adversary
By making him your partner
in problem-solving negotiation
WIN/WIN PRINCIPLES
Cooperation
People & Problems
Interests Not Positions
Creative Options
Objective Standards