Negotiation 101:
The Art and the Science
Patullo Conference
October 8, 2013
Negotiation 101
The art and science
Framework
The science: improve outcomes
The art: know thyself!
Practice makes perfect
Negotiation 101
The art and science
Framework
The science: improve outcomes
The art: know thyself!
Practice makes perfect
Framework
What’s to negotiate?
The science
The art
Practice
In the beginning was choice,
and all history can be seen
as an unending effort to manage it
Framework
The science
The art
Practice
What’s to negotiate?
Framework
The science
The art
Practice
What’s to negotiate?
Framework
What’s to negotiate?
The science
The art
Practice
Businessas-usual
√
?
Decision
Point
Convergent Zone
Divergent Zone
Groan Zone
Kaner, 1996
Framework
What’s to negotiate?
The science
The art
Practice
Prospect Theory
Classic Attitude Equation
Positive
Value
w1 = ∑ (z1-y1) x1
z1 is an emphasis frame (nominal values)
x1 relates to priming (0-1)
y1 is an equivalence frame (quantify gain/loss)
Losses
Gains
Negative
where
v1 is belief content
w1 is belief importance
Outcome
A = ∑ v1w1 ,
• Reflects status quo bias and loss
aversion
Negotiation 101
The art and science
Framework
The science: improve outcomes
The art: know thyself!
Practice makes perfect
Framework
The science
The art
Four-step process
Five things you have to identify
First choice
Practice
•Data gathering
•Definition of the problem
•Developing options
•Bargaining/Problem-solving
Framework
Four-step process
Five things you have to identify
First choice
The science
The art
Practice
Inventing Options
•
Broadening the Pie
–
•
Nonspecific Compensation
–
•
Each party makes concessions on low-priority issues in exchange for
concessions on issues that it values more highly
Cost Cutting
–
•
One side gets what it wants and the other is compensated on another
issue
Logrolling
–
•
Create additional resources so that both sides can obtain their major
goals
One party gets what it wants; the costs to the other are reduced or
eliminated
Bridging
–
Neither party gets its initial demands but a new option that satisfies the
major interests of both sides are developed.
Framework
The science
The art
Practice
Four-step process
Five things you have to identify
First choice
Framework
The science
The art
Four-step process
Five things you have to identify
First choice
Practice
• Aspiration point: dream outcome
• BATNA: what’s left if a negotiation breaks
down or doesn’t happen
• Resistance point: worst outcome that’s
still acceptable
• ZOPA: the space where the negotiation
happens
• First offer
Framework
The science
The art
Four-step process
Five things you have to identify
First choice
Practice
BATNA what?
• Best Alternative To a Negotiated Agreement
–
–
BATNA is the choice you can make if you conclude
that negotiating with a particular party is not likely
to yield a favorable result.
You can walk away from a negotiation if your
BATNA is better than the likely outcome of that
negotiation.
• Establishes: Resistance points (worst case
scenario that’s acceptable in a negotiation)
Framework
The science
The art
Five-step process
Six things you have to identify
First choice
Practice
Zone of Potential Agreement
Framework
The science
The art
Four-step process
Five things you have to identify
First choice
Practice
Integrative
Distributive
(collaborative, win-win)
(competitive, zero sum, win-lose)
• there is a variable amount of
resources to be divided and both
sides can "win."
• dominant concern here is to
maximize joint outcomes.
• dominant strategies include
cooperation, sharing information,
and mutual problem solving. This
type is also called "creating value"
since the goal here is to have both
sides leave the negotiating feeling
they have greater value than before.
• one side "wins" and one side
"loses."
• there are fixed resources to be
divided so that the more one gets,
the less the other gets.
• one person's interests oppose the
others.
• the dominant concern in this type of
bargaining is usually maximizing
one's own interests.
• dominant strategies in this mode
include manipulation, forcing, and
withholding information.
Framework
The science
The art
Four-step process
Five things you have to identify
First choice
Practice
Concessions
• Small concessions give the impression that the bottom
line is not far off.
• Large concessions indicate that a lot more can still be
conceded before the bottom line is reached.
• Rapid or large concessions undermine the credibility of
the initial offer.
• All concessions teach the lesson that more concessions
will be made.
• Never split the difference!
Negotiation 101
The art and science
Framework
The science: improve outcomes
The art: know thyself!
Practice makes perfect
Framework
The science
The art
The K-MIF way
Who am I?
How do I figure you out?
Practice
• Know
• Monitor
• Inject resources
• Follow up
Framework
The K-MIF way
Who am I?
How do I figure you out?
Injecting resources
The science
The art
Importance of Personal Goals
Practice
Forcing
Collaborating
Shark
Owl
“my way or the high way”
“I would prefer x, but what do
you want?”
Avoiding
Accommodating
Turtle
Teddy Bear
“Conflict? What conflict?”
“Whatever you say…”
Importance of Relationships
Adapted from Anthony Falikowski's 2002 book, Mastering Human Relations
Framework
The K-MIF way
Who am I?
How do I figure you out?
Injecting resources
The science
The art
Assertiveness
Practice
Forcing
Collaborating
Win-lose
Win-win
•authoritarian
•focuses on process
•reactive
•energized by differences
Avoiding
Accommodating
Lose-lose
Lose-win some
•timid
•wishy-washy
•weathers the storm
•need to please
Cooperativeness
Adapted from Anthony Falikowski's 2002 book, Mastering Human Relations
Framework
The science
The art
Practice
The K-MIF way
Who am I?
How do I figure you out?
Injecting resources
Framework
The science
The art
The K-MIF way
Who am I?
How do I figure you out?
Injecting resources
Practice
High Culture…
…Underlying social contract is most
Low Culture…
…The preeminence of the individual
important
• Collectivist societies
– Maintaining face
– Group harmony
• Talk is more about preserving
social harmony than
transmitting information
• Inaccuracy and evasion are
preferred to painful precision,
especially in the culturally
loaded use of ‘no’
• Meaning is explicit in the text
• Language is informational
rather than a social lubricant
Framework
The science
The art
The K-MIF way
Who am I?
How do I figure you out?
Injecting resources
Practice
If all else fails, ask a question
•Exploring positions
–
–
Ask, why not?
Allow them to correct you
•
–
What I hear you saying is x, is that correct?
Build trust by showing some of your hand
•Finding interests
–
–
Ask, what if?
Ask for their advice
•
What would you do in my shoes?
Framework
The science
The art
The K-MIF way
Who am I?
How do I figure you out?
Injecting resources
Practice
And watch the response…
•Emblems
–specific gestures with specific meaning that are consciously used and consciously
understood.
–used as substitutes for words and are closer to sign language than everyday body
language.
•Iconic gestures
–closely related to speech, illustrating what is being said
•Metaphoric gestures
–Used to explain a concept
•Regulators
–used to control turn-taking in conversation
•Affect displays
–used to display emotion
•Beat gestures
–plays to primitive feelings of basic patterning
–used to create emphasis and grab attention.
Framework
The science
The art
The K-MIF way
Who am I?
How do I figure you out?
Injecting resources
Practice
•
•
•
•
•
•
•
•
•
Non-Verbal Behavior
Brisk, erect walk
Hands on hips
Arms crossed on chest
Hand to cheek
Rubbing eyes
Hands clasped behind
back
Fondling hair
Tilted head
Stroking chin
•
•
•
•
•
•
Interpretation
Confidence
Aggressiveness, readiness
Defensiveness, relaxed
Evaluation
Disbelief, tiredness
Anger, frustration
• Insecurity, flirting
• Taking an interest
• Trying to make a decision,
taking over the world
Framework
The science
The art
The K-MIF way
Who am I?
How do I figure you out?
Injecting resources
Practice
Patterns
• Moving away
• Closing
• Preening
•Lowering the head, with chin down
•Straightening
the head
tie orinother
clothes.
•
Pulling
back
the
fear,
(protecting the neck).
•Looking
in aor
mirror.
confusion
surprise.
•Closing
mouth
and
eyes, lowering eyebrows
•Curling
lips
toand
even
outshoulders.
lipstick.
refusing
speech
sight.
• Pulling
back
arms
or
•Crossing arms
or legs, pulling
shoulders,
•Brushing
imaginary
lint offin arms
or
• Hollowing
thetochest,
pulling
it back.
elbows
and
knees
protecting
organs
and
legs.
vulnerable
parts.
• Turningdown
awayhair
theor
head
and, init with
•Patting
combing
•Turning
hands
to palms the
facing
down.
extreme,
showing
back.
the fingers.
•Curling fingers into the palm, protecting
• Stepping
them
(and alsoback.
making a fist).
•Turning feet to point toes inwards.
•Hunching down, with any or all of the
above, making the body less threatening and
a smaller target.
Framework
The science
The art
The K-MIF way
Who am I?
How do I figure you out?
Injecting resources
Practice
Injecting Resources
Negotiation 101
The art and science
Framework
The science: improve outcomes
The art: know thyself!
Practice makes perfect