everyday negotiation skills michael d. rust, j.d. executive director
TRANSCRIPT
Everyday Negotiation Skills
Michael D. Rust, J.D.Executive Director
How do people resolve conflict?
Avoidance Negotiation Mediation Arbitration Litigation Violence
Lower cost of resolution
More control of outcome by parties
Higher cost of resolution
Less control of outcome by parties
Negotiation
•All of us are negotiating at all times
•We should learn how to negotiate
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
Counter Offer
Counter Offer
Acceptance
Offer
Acceptance
Tool #1Interest 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 #2Listening
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 Bobble-head
Tool #3Talk 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
• DominancePerson places emphasis on accomplishing results, the bottom line, confidence
• Speak in bullet points!
• Focus on the solution, not the problem
• InfluencePerson places emphasis on influencing or persuading others, openness, relationships
• Start with a story!• Don’t overload with
details
Recognizable Communication Types
• SteadinessPerson places emphasis on cooperation, sincerity, dependability
• Give them time!• Be amiable and
personal
• ConscientiousnessPerson 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 #4Recognize Differences, Not Wrongs
Actual Example
Tool #5Good 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-case
scenario”
•BATNA and WATNA (and MLATNA) can lead to probability analyses
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 youAny questions?