Negotiation Skills

R.J.Monson, Ph.D.

Summary

• The Need for Negotiations

• The Eight Step Process

• The Process Diagram

• Collaborative Bargaining

• Persuasion and Rhetoric

• Getting to Yes

Why negotiations for Project Managers?

• As project managers, we focus on the ability to:– Understand customer needs– Plan an approach to meet those needs– Execute on the plan– Evaluate how the plan is going– Evaluate how the project went

• But who decides if we succeed?Copyright 2011 RJMonson

Negotiations as a Life Skill

• We will find ourselves confronted with challenges and contradictions

• We will not be able to satisfy all the stakeholders

• We will need our team to pull together at times to make up some ground or get us back on track

Copyright 2011 RJMonson

Negotiations as a Life Skill

• We will need to create an environment where people are compelled to help us succeed

• We need to create an environment where they will choose to support our needs

• We call this the creation of an influence environment

Copyright 2011 RJMonson

Influence

• Creating influence is the focus of a negotiator

• We must set the stage and communicate in such a way as to help the other party understand– Our interests– Our needs– How our perspective aligns with their

interests and needs Copyright 2011 RJMonson

However, this is not a trivial skill to develop…

Copyright 2011 RJMonson

We will make use of a variety of expertise areas:

• Communications

• Motivation Theory

• Understanding Leverage

• Intelligence Gathering

• Rhetoric

• Conveying our Influence

Copyright 2011 RJMonson

We are dealing with people• Logical and Rational?• Predictable and Understandable?• Typically brought about by their

personal lenses (biases)– Communication style– Perceptions– Perspectives– Attitudes

• Negotiation is fundamentally about relationship building with the other parties

Positional and Personal Authority

• Position– Your title– Your office– Your ability to reward– Your ability to cause pain– Your ability to direct work consuming

resources that have been assigned to your area through orders

– This is a common military approach

Personal Authority

• Team approach often abdicates positional authority, then are relying more on personal authority

• Based upon relationships and intimacy with the group– Smaller groups –> more intimacy

• Bank account of credit– Making deposits and withdrawals

• You can have anything in life, just help others get what they want

Motivation Theories

• Goal Setting Theory– Setting goals gets more accomplished

– Making lists of tasks or objectives

• Attribution Theory– We tell stories based on what we can see

– We attribute things to people

• Equity Theory– My input should be equal to Your input if we

get the same output

– Fairness in treatment of people is perceived

Motivation Theories• Reinforcement Theory

– Events immediately following a behavior choice reinforce that choice

– Gamblers fallacy

• Expectancy Theory– Behavior to Performance Link – If I practice I

will get better at playing basketball

– Performance to Reward Link – If I get better then I can get more playing time

– Desire for the reward – I want more time, it may lead to scholarships

CAUSAL Method

• Context

• Attitude

• Unspoken Messages

• Spoken Messages

• Assumptions

• Likely Outcome

An Eight Step Process

• Do your Homework• Estimate your Ap, Rp, and BATNA• Discover Information• Estimate Your Opponents Position• Find the Common Ground• Brainstorm for Solutions• Mutually Select the Optimal Solution• Sign The Contract

The Process Diagram

Buyer Seller

The Process Diagram

Buyer SellerApb Aps

The Process Diagram

Buyer SellerApb Aps

Rps

The Process Diagram

Buyer SellerApb Aps

RpbRps

The Process Diagram

Buyer Seller

B.A.T.N.A. B.A.T.N.A.

Apb Aps

RpbRps

The Process Diagram

Buyer SellerB.A.T.N.A. B.A.T.N.A.

Apb Aps

RpbRps

Buyer SellerB.A.T.N.A. B.A.T.N.A.

Apb Aps

RpbRps

Buyer SellerB.A.T.N.A. B.A.T.N.A.

Apb Aps

RpbRps

Buyer SellerB.A.T.N.A. B.A.T.N.A.

Apb Aps

RpbRps

An Eight Step Process

• Do your Homework• Estimate your Ap, Rp, and BATNA• Discover Information• Estimate Your Opponents Position• Find the Common Ground• Brainstorm for Solutions• Mutually Select the Optimal Solution• Sign The Contract

Effective Negotiations

• Start with relationships• Make yourself the priority

– Be prepared

– Think on your feet

– Strategically align your deal for the customer

– Make the common ground abundantly clear

• Understand why the other person is here at the table

• Get their commitment to the deal

Closing the Deal

• This is the hardest part• Time is your enemy, get to the finish• Create a sense of urgency, make them want

to get to the finish as well• Mention the competition, they have some

leverage but you have some as well• Keep the news coming, keep the deal sold• Be prepared to walk away

The Art of the Deal

• The closing must be organic– It should seem natural and obvious

– The deal happens before the deal• Relationships are the key

– Be a great listener

– Don’t use tricks, use honesty and integrity to teach the other party the right solution to their problem

• Strategic focus

• Lead them to the right conclusion through trust

Collaborative Bargaining

• Generally possible to have a positive sum game– Mutual good for both parties– A negation of the old mentality

• My job is to get you to make concessions• Get a better deal than you do• “It is not enough to win, others must lose”

• Collaborative Bargaining– Negotiate without making concessions to each other– Look for joint gain options– If there is a range of possible acceptable outcomes, then

there is always a set of outcomes that will make both of us more satisfied than the minimally acceptable outcome.

Ask Yourself…• How can I make sure the opposition achieves their

outcomes?• How can I satisfy their needs and minimal cost to

myself?• Is there no way for me to ‘sweeten the deal’ to make it

better for the other party?• Is there more that I could do at minimal cost?• Would I be satisfied with the deal they are receiving?• What would I like to them to do for me in the same

position?• Even though we have an agreement, is there a way to

make it better?

Persuasion and Rhetoric

• Aristotle and communicating– Logos

• Logical understanding of the argument

– Pathos• The sympathetic or emotional

understanding of the argument

– Ethos• The ethics or ‘rightness’ of the argument

• Understand the other parties tack, and establish your preferred direction

Dealing with Difficult People

• Several typical types, demonstrating a variety of behaviors we recognize and find challenging

• Everyone exhibits some of these in varying amounts, we need to understand how to address them in others and ourselves

Tank• Overrides, but may do so because they feel powerless or

inadequate• Never considers other ideas• Maybe low self-esteem• Fails to relate to people• Sometimes degrading• Attention seeking• Rude• Really struggles to listen• Hard shelled as a response mechanism• Closed to other views• May start power struggles• Insecure

Tank

• Be consistent, set ground rules, expect respectful interaction with others

• Exposure to negative impact of other tanks• Stand up to them• One-on-one informal meeting• Find their motivation• Ask to support their position with valid

data

Sniper

• Sarastic

• Sweet on the outside, poison on the inside

• Mean, Rude, Intimidating

• Back-stabbers

• Plan / Idea killer

Sniper• Set clear ground rules at meeting• Set a clear expectation of constructive

participation• Call them out on behavior• Don’t tolerate rudeness -> disarm them• Confront in private• Model the behaviors as an expectation• Neutralize them• Zero tolerance policy

Grenade• Silent -> Explode• Passive aggressive• Resentful• Unpredictable• Emotional• High highs, low lows• Plotting / Scheming• Absent at meetings• See themselves as victims• Could be triggered without you knowing

Grenade• Help them become responsible for their feelings and actions• Talk!• Communicate before explosion – Regular• Control• Regular briefings, Informal get-togethers• Address them assertively and respectfully• Don’t buy into their emotion• Watch for signs of frustration• Address identified issues before they escalate• Try regular coaching – Address proactively• Quickly change focus away from outburst

Know it all, Think they know it all

• Bulldozing• Outspoken• Insecure• Arrogant• Hard time understanding / Accepting those who don’t know

something• Impatient• Like the sound of their own voice• Egotistical• Good ideas may be lost or ignored due to poor communication• Might offer good contributions – frustrates group if out of

control• Don’t listen to their staff

Know it all, Think they know it all

• Ask for background, source of info• Give opportunity to perform / shine• Remind them to listen to others• Redirect their tendency to blame others

and focus on the issue• Use facilitation techniques to avoid

derailing a meeting• Get people skill training• Help them slow down and recognize the

value in learning from others

Yes, No, Maybe, Nothing• One dimensional• Ask to write down ideas• Failure to make a ‘true’ commitment• Simply not interested• No/Nothing: Want someone else to be

accountable for decisions• Could be an unengaged dreamer• Doesn’t offer personal contributions• Maybe: Might not care / Be a stakeholder• Can’t take risks• Yes: Afraid of disappointing anyone

Yes, No, Maybe, Nothing• Yes: Encourage to believe in ideas/oneself• Nothing: Be patient, change the process• Model the value of options / Brainstorming• Try to draw out the other side• No: Ask Why?• Ask for decisions and give deadlines• Investigate their history/story• One to One discussions• Maybe: Ask for specific points of view from them• Approach with different scenarios to get to

opinion

Whiner

• Complaining

• Never their fault

• Always the victim

• Can be gossipy

• Never gets anything done

• Glass half empty

• Judgmental

Whiner• Don’t reward• Ask for ‘their’ plan• Buy them a beer, tell them to relax• Don’t buy in• Don’t reinforce by giving more attention• Listen; ask for them to provide menu of solution• Refocus topic onto solutions, actions to take• Set deadlines• Redirect• Encourage perspective taking• Engage them and involve them• Ignore the whining and encourage productive discussion

instead

Getting to Yes • Don’t bargain over positions

– Tend to lock-in, to get committed• It becomes about your ego satisfaction

– Damages the long term relationship– More people involved makes it worse– The goal is agreement, not just winning

• Focus on the people, not the problem– Two interests – the relationship, the substance– Positional bargaining puts these into conflict– Separate these two, deal with the people– Understand perceptions, emotions, etc– Communications is the key

Getting to Yes • Focus on the interests, not the positions

– Reconcile interests, not positions– Interests define the real problem– Ask ‘why’ , ask ‘why not’– Basic human needs are powerful interests– Look forward and not back– Acknowledge the interests to find common ground

• Brainstorm options for mutual gain– Solving the problem is not just their problem– Search for multiple answers– Understand it is not just a fixed-pie solution– Separate innovation from decision making– Look for mutual gain in the options generated– Make the decision easy for the other party

Getting to Yes

• Use Objective Criteria– Deciding on will or ego can be costly– Fair standards – What is fair?– Frame the issues with respect to the objective

criteria– What is the basis used for the logical

conclusions put forth?

• Use your BATNA rationally– Be able to exercise your options– Keep one hand on the side of the pool– Recognize the big picture – step back at times

Summary

• The Need for Negotiations

• The Eight Step Process

• The Process Diagram

• Collaborative Bargaining

• Persuasion and Rhetoric

• Getting to Yes

References

• Goleman, D. (1995). Emotional intelligence. New York: Bantam Books.

• Honeycutt, L (2003) Website: Aristotles Rhetoric. http://www.public.iastate.edu/~honeyl/Rhetoric/

• Robbins, (1999) Essentials of Human Behavior. Houghton Mifflin, New York.

• Seward, D (1998) Website: http://www.cwrl.utexas.edu/~dseward/classes/E306/Spring1998/UnitI/b.htm

• Various (1998) The Managers Guide to Negotiation and Conflict Resolution. Harvard Management Communication Letter, Harvard Business School Publishing. Boston, MA.

• Fisher, et al (1991) Getting to Yes. Penguin Group. USA.