NegotiationPreparation & Planning

Negotiation & Conflict Management

Class 5 Part 1

John D. Blair, PhDGeorgie G. & William B. Snyder Professor in Management

2

Why Plan? Critical to successful negotiations Provides the ability to set the tone and

direction of the negotiation

Individuals with higher levels of planning inclinations will have more successful negotiation outcomes than those who are less preparation-inclined.

3

Information Needs

Negotiators should know: Other parties’ needs & interests Available resources of the other party Reputation and styles of the other parties Ability and authority of other party to make

agreements Strategies & tactics the other party might utilize Understanding of when the other party might

walk away from the negotiations

4

Negotiation Game Plan

Important to be prepared for any situation – competitive or cooperative

OrganizeThoughts

Identify IdealOutcomes

Develop Contingencies & BATNA

Steps to Prepare for Negotiation

5

Negotiation Game Plan continued Identify communication elements

Tone for negotiation (e.g. apologetic, determined, concerned)

Frames for describing positions (e.g. metaphors, analogies)

Body language to maximize effectiveness Claims, data, objective criteria Questions Persuasion strategies Methods to ensure commitments

6

Intelligence Gathering

Skilled negotiator gathers intelligence: Interests – mutual & divergent Concerns – mutual & divergent Emotional issues Primary claims Evidentiary support – strengths & weaknesses Potential avenues around resistance Style compatibility considerations

7

ICE Model: Three Key Perspective-Shaping Factors

Before beginning any negotiation, the three key perspective-shaping factors (interests, concerns & emotions) must be assessed – not assumed!

Concerns

Interests Emotions

8

Identifying Interests Skilled negotiators must elicit information regarding

the others’ interests – both mutual and divergent Utilize self-disclosure to encourage openness Share a story of a previous negotiation Place interests in continuum from mutual-to-divergent

When interests are mutual, cooperative or integrative negotiation is likely

When interests are divergent, antagonistic, distributive forms of negotiation emerge

9

Identifying Concerns

All parties have concerns or worries Failure to address or identify concerns

may hinder successful negotiations

10

Identifying Emotions

Individuals may become emotionally involved with issues or positions

Emotions may be as important as rational or cognitive arguments

If emotions are ignored, negotiations may fail

11

Identifying Primary Claims

Defined: Statements about interests that each negotiator is likely to make

Argument development Claim – outcome or position for which you’re arguing Data – evidence or reasoning supporting the claim Warrant – general statement that indicates why the

data are supportive of the claim Dissect reasoning to identify potential weaknesses and

develop stronger arguments Lead with the strongest claims and ones that the other

party may care about or are likely to believe

12

Argument – Claim Development

Toulmin’s Model

Issue: ___________

Therefore

Data: Claim:

Backing:

Because

Since

Warrant:

13

Using a Logical Vocabulary Proposition – True or false statement within an

argument but not alone Premise – Proposition used as evidence in an

argument Conclusion – Proposition used as a thesis in an

argument Argument – A group of propositions from which one

follows from another Induction – Process through which premises provide

some basis for the conclusion Deduction – Process through which premises provide

conclusive proof for the conclusion

14

Listen for Indicators Argument indicators: should, must, ought,

necessarily Premise indicators: since, because, for, as,

in as much as, for the reason that, first Conclusion indicators: therefore, hence,

thus, so, consequently, it follows that, one may infer, one may conclude

15

Prepare & Anticipate Counterclaims Anticipate the possible ways in which your

counterpart might respond Seek to understand

Acknowledge counterclaim Assess counterclaim to gain better

understanding of their position Respond – utilize other forms of substantive

evidence or data Confirm agreement that you’ve addressed their

counterclaim

16

Identify Fallacies

Fallacies of relevance – occur when premises are irrelevant to the conclusion

Fallacies of ambiguity – occur when ambiguous, changeable wording in propositions lead to more than one meaning in an argument

17

Utilize Mind Maps

Brainstorm possible outcomes – areas of disagreement

Think beyond simplistic outcomes Visualize and rehearse the many

possible outcomes at various negotiation choice points

18

Goals – The Focus That Drives Negotiation Strategy

Determining goals is the first step in the negotiation process

Negotiators should specify goals and objectives clearly

The goals set have direct and indirect effects on the negotiator’s strategy

19

The Direct and Indirect Effects of Goals on Strategy

Direct effects Wishes are not goals Goals are often linked to the other party’s

goals There are limits to what goals can be Effective goals must be concrete/specific

Indirect effects Forging an ongoing relationship

20

Strategy versus Tactics

Strategy: The overall plan to achieve one’s goals in a negotiation

Tactics: Short-term, adaptive moves designed to enact or pursue broad strategies Tactics are subordinate to strategy Tactics are driven by strategy

Planning: The “action” component of the strategy process; i.e. how will I implement the strategy?

21

Approaches to Strategy

Unilateral: One that is made without active involvement of the other party

Bilateral: One that considers the impact of the other’s strategy on one’s own

22

Strategic Options

Per Dual Concerns Model, choice of strategy is reflected in the answers to two questions: How much concern do I have in achieving

my desired outcomes at stake in the negotiation?

How much concern do I have for the current and future quality of the relationship with the other party?

23

The Dual Concerns Model

Avoidance: Don’t negotiateCompetition: I gain, ignore relationshipCollaboration: I gain, you gain, enhance relationshipAccommodation: I let you win, enhance relationship

Subordination

Subordination

very

very

24

The Nonengagement Strategy: Avoidance

If one is able to meet one’s needs without negotiating at all, it may make sense to use an avoidance strategy

It simply may not be worth the time and effort to negotiate

The decision to negotiate is closely related to the desirability of available alternatives

25

Active-Engagement Strategies

Competition – distributive, win-lose bargaining

Collaboration – integrative, win-win negotiation

Subordination – involves an imbalance of outcomes (“I lose, you win”)

26

Understanding the Flow of Negotiations: Stages and Phases

How does the interaction between parties change over time?

How do the interaction structures relate to inputs and outcomes over time?

How do the tactics affect the development of the negotiation?

27

Understanding the Flow of Negotiations: Stages and Phases

Negotiation proceeds through distinct phases or stages

Beginning phase (initiation)

Middle phase (problem solving)

Ending phase (resolution)

28

Key Steps to anIdeal Negotiation Process

Preparation What are the goals? How will I work with the other party?

Relationship building Understanding differences and similarities Building commitment toward a mutually beneficial

set of outcomes Information gathering

Learn what you need to know about the issues

29

Key Steps to an Ideal Negotiation Process

30

Key Steps to anIdeal Negotiation Process

Information using Assemble your case

Bidding Each party states their “opening offer” Each party engages in “give and take”

Closing the deal Build commitment

Implementing the agreement

31

Getting Ready to Implement the Strategy: The Planning Process

Define the issues Assemble the issues and define the

bargaining mix The bargaining mix is the combined list of

issues Define your interests

Why you want what you want

32

Getting Ready to Implement the Strategy: The Planning Process

Know your limits and alternatives Set your objectives (targets) and

opening bids (where to start) Target is the outcome realistically

expected Opening is the best that can be achieved

Assess constituents and the social context of the negotiation

33

The Social Context of Negotiation: “Field” Analysis

34

Getting Ready to Implement the Strategy: The Planning Process

Analyze the other party Why do they want what they want? How can I present my case clearly and

refute the other party’s arguments?

Present the issues to the other party

35

Getting Ready to Implement the Strategy: The Planning Process

Define the protocol to be followed in the negotiation Where and when will the negotiation

occur? Who will be there? What is the agenda?

36

Summary on the Planning Process

“...planning is the most important activity in negotiation.”