Everyday Negotiation Skills Michael D. Rust, J.D. Executive Director How do people resolve conflict? Avoidance Negotiation Mediation Lower cost of resolution More control of outcome by parties Arbitration Litigation Violence Higher cost of resolution Less control of outcome by parties Negotiation • All of us are negotiating at all times • We should learn how to Question • If I told you that there was a nut that I needed taken off a bolt, what tool would you use? • Wrench • Fingers • WD40 • The right tool at the wrong time is the wrong tool What does a negotiation look like? Offer Counter Offer Offer Counter Offer Acceptance Counter Offer Acceptance Tool #1 Interest Based Negotiation Distributive vs. Interest Based • • • • Win – Lose vs. Win – Win No sharing info vs. Sharing Info Get the pie vs. Expand the pie Positions vs. Interests Interest Based Negotiation • Expand the pie • More than “win-lose” • Not mere compromise • Example • Looks to parties’ interests • Not positions • “Why?” • Getting to Yes • Fisher & Ury • Patton • 200 pages Tool #2 Listening Listening • Mia: "When other people talk, do you listen, or do you wait to talk?" • Vincent: "I wait to talk." Active Listening • Take a breath • Studies show people listen at only a 25% effectiveness level • Remove distractions • Focus on listening as your first priority • Not simply Parroting what they said • Not a Bobblehead Tool #3 Talk to Them (not yourself) Communication Preferences • There is no “right way” to communicate • People will find you more interesting if you communicate with them the way that they prefer to communicate • More believable • More persuasive Communication Example • Communicate in the way the listener is listening • Not the way you want to communicate Recognizable Communication Types • Dominance Person places emphasis on accomplishing results, the bottom line, confidence • Speak in bullet points! • Focus on the solution, not the problem • Influence Person places emphasis on influencing or persuading others, openness, relationships • Start with a story! • Don’t overload with details Recognizable Communication Types • Steadiness Person places emphasis on cooperation, sincerity, dependability • Give them time! • Be amiable and personal • Conscientiousness Person places emphasis on quality and accuracy, expertise, competency • Data, data, data, data, data! • Leave out emotional appeal This Presentation is a Negotiation • I try to talk to all styles in one presentation • Bullet points • Stories • Cartoons • Utilizing experts Tool #4 Recognize Differences, Not Wrongs Actual Example Tool #5 Good Communication Communication • Word choice • Exceptionally important • Nonverbal • Body language • Appearance • Tone • Pace • Location Electronic Communication • Email is fantastic tool • Txting is gr8 2 • We are excluding 93%! • :-) • Not very professional Tool #6 (The BIG One) Preparation Biggest Tip • Prepare for Negotiation • Why would you prepare for a business pitch and not a negotiation? • Know your BATNA/WATNA • “Know” their BATNA/WATNA • Know what you will accept • Plan your concession strategy BATNA/WATNA/MLATNA • Must consider your and their BATNA and WATNA • Best Alternative To a Negotiated Agreement • Provides a “best case scenario” to compare settlement offers • Worst Alternative To a Negotiated Agreement • Provides a “worst- Decision Tree Analysis Don’t Get Caught in a Negotiation You Aren’t Ready For • Martin Latz – Former White House negotiator • Never answer the phone and negotiate. Find an excuse to call them back, prepare, and then call them back and negotiate. Plan Your Concession Strategy Offer Counter Offer Counter Offer Counter Offer Acceptance Recap • Tool 1 • Interest Based Negotiation • Tool 2 • Listen • Tool 3 • Talk to Them (not yourself) • Tool 4 • Recognize Differences, Not Wrongs • Tool 5 • Good Communication • Tool 6 (The BIG One) • Always be Prepared Thank you Any questions?