1. June 13, 2008 Neos Mini-Conference Kathryn Arbuckle John A. Weir Memorial Law Library/ Association of Academic Staff University of Alberta Let’s Make a Deal: Negotiating in Everyday Life & Work

2. June 13, 2008 Neos Mini-Conference Negotiating: Everybody does it Negotiations are a part of everyday life: –Family members –Friends & neighbors –Co-workers & employers –Commercial transactions Some negotiations are formal – Many are informal – Some are not recognized

3. June 13, 2008 Neos Mini-Conference Before You Begin What do you value? What outcome do you want? –Is there more than one way to fulfill your objective? Know your interests. What is the relationship between the parties? Is it in itself an interest of value? –How much harm to the relationship would you accept in order to get what you want?

4. June 13, 2008 Neos Mini-Conference Negotiating Strategies High Relationship High Relationship Low Outcome High Outcome ACCOMMODATING COLLABORATIVE Lose to win Win – win COMPROMISE Split the Difference AVOIDING COMPETITIVE Lose-lose Win at all costs Win – lose Low Relationship Low Relationship Low Outcome High Outcome

5. June 13, 2008 Neos Mini-Conference Avoidance Lack of interest in the outcome or in the relationship – is there a counter-proposal? If no counter-proposal –possibly a negative attitude to the outcome and/or the relationship May also imply a conflicting commitment

6. June 13, 2008 Neos Mini-Conference Accommodation Accommodation as a choice Patterns in relationships may reflect implicit negotiations: –E.g., Alternating turns Social Exchange Theory (the fast version) –Continuing relationship over time –Exchanges balance over time –Not always equal – status can matter

7. June 13, 2008 Neos Mini-Conference Competition Approach negotiation as if a zero-sum game: a winner and a loser Ignores shared interests “Hard Ball” Negotiating: win at any cost Can be appropriate in some circumstances Consider the relationship factor before starting a competition

8. June 13, 2008 Neos Mini-Conference Compromise Split the Difference How do you know what the “Difference” is? –Use of Fair, External Standards, e.g., valuations or appraisals –First slice, Second pick Is it a satisfactory outcome? All the time?

9. June 13, 2008 Neos Mini-Conference Collaborative Negotiations Invests in the outcome and in the relationship Takes time Requires creativity and open-mindedness Approaches negotiation as shared problem-solving exercise Harvard Negotiation Project & Principled Negotiation

10. June 13, 2008 Neos Mini-Conference Getting to Yes Getting to Yes: Negotiating Agreement Without Giving In, (2 nd ed.) Fisher, Ury & Patton Four Principles for Collaborative Negotiation Method Applied in wide range of negotiations: personal matters, business matters, international politics & diplomacy

11. June 13, 2008 Neos Mini-Conference 1. Separate the People from the Problem ‘Hard on the problem, soft on the people’ The emphasis is on building, strengthening and preserving ongoing relationships. Importance of respect Deal with perceptions and emotions Critical: Clear Communication & Listening

12. June 13, 2008 Neos Mini-Conference Perceptions & Emotions Filling in the blanks –What you know about someone –What you think you know about someone Emotions escalate rapidly – Be wary Check your baggage at the door Don’t pick up someone else’s baggage Focus on interests & relationships

13. June 13, 2008 Neos Mini-Conference Communication Active listening techniques Paraphrasing & repeating back Work at building shared meaning Talking takes time & energy

14. June 13, 2008 Neos Mini-Conference 2. Focus on Interests, Not Positions A position is something you have already decided. The interest is why you made that decision. Often more than one way to address the interest. There are often compatible or shared interests as well as opposing ones.

15. June 13, 2008 Neos Mini-Conference 3. Invent Options for Mutual Gain “Expand the pie before dividing it” –Brainstorming to invent options –Avoid premature criticism and premature closure –Need for solutions that appeal to self-interest of both sides Look for areas of shared interest Look for mutual gains

16. June 13, 2008 Neos Mini-Conference 4. Fair Standards to Resolve Conflict Use of fair measures and process Independent criteria or measures –Market value- Precedent –What a court would decide- Efficiency –Professional standards- Tradition –Scientific judgment- Reciprocity –Equal treatment- Costs –Moral standards- Etc.

17. June 13, 2008 Neos Mini-Conference Procedure as Fairness Importance of fair procedures to resolve conflicts –First Slice, Second Pick Options include: –Taking turns –Drawing lots (equal opportunity / chance) –Letting someone else decide (arbitration)

18. June 13, 2008 Neos Mini-Conference Power & Negotiating Power imbalance makes negotiating more challenging – not impossible Power as authority Power as resources Power as information Power as moral / social justice

19. June 13, 2008 Neos Mini-Conference Setting a Limit – the BATNA Using a “Bottom Line” –Fixed or flexible? –Closed or creative? BATNA – Best Alternative to a Negotiated Agreement What is the best available alternative that you have? Your BATNA has to be known, not speculative

20. June 13, 2008 Neos Mini-Conference BATNA The better your BATNA, the less dependent you are on reaching agreement To develop your BATNA: –Invent a list of actions to take if no deal is reached –Convert best ideas into practical alternatives –Select the one that seems best Judge the deal by your BATNA

21. June 13, 2008 Neos Mini-Conference Moving to Merit How to get the other party to focus on interests, not positions Three basic approaches: –You concentrate on merits (what you can do) –Negotiation “jujitsu” Do not reject – deflect: ask what the interests are Look behind their position to the principles Invite criticism and advice, rather than acceptance or rejection

22. June 13, 2008 Neos Mini-Conference Dirty Tricks Several ways to respond: –Ignore it –Response in kind –Turn it into a negotiation over the process Recognize it Raise it explicitly Question it’s legitimacy & desirability, i.e., make them negotiate the rules of the game

23. June 13, 2008 Neos Mini-Conference Remember the Principles: Separate the people from the problem Focus on interests, not positions Invent options for mutual gain Insist on using objective criteria

24. June 13, 2008 Neos Mini-Conference Questions