Negotiation Reflection

Positions/Intetersts

Today’s Agenda Reading Quiz 1 Interests and Positions Debrief Texoil Closed note, closed book – AT THE END OF CLASS ( you are welcome) Interests and Positions Debrief Texoil

Texoil What were the BATNAs for each party? What were the reservation values for each party? What were the aspiration values for each party? What was each party’s position? What were each party’s interests?

Did a Deal Get Made? Buyer Seller $500 $580 How did you get a deal?

Did a Deal Get Made? 7 did not come to an agreement Buyer Seller $500 $580 7 did not come to an agreement How did you get a deal? Enlarge the pie (job, health care, oil and gas, advertising) Trust? Vulnerability?

BATNA vs. Bottom Line(RP)? Texoil Batna: $650K Build a New Station: $500K Why the difference? 37% of you exceeded your bottom line

Sale Money Plus other things…..

Integrative Negotiations Recall: Effective negotiations: Produce wise agreement Be efficient Improve the Relationship between parties

Conflict: preferences oppose Conflict vs. differ Conflict: preferences oppose Differ issues opposes On issues that conflict versus differ Conflict means that people’s preferences are opposed Differ means that people’s issues oppose See getting to yes pg. 47

Recall Effective negotiations: Produce wise agreement Be efficient Improve the Relationship between parties

Soft vs. Hard Negotiation Soft negotiation: Emphasize goal of reaching agreement! Friendly, concessions made for relationship Change position easily, make offers, disclose your bottom line One-sided losses, aimed at reaching agreement Single Answer Hard Negotiation: Adversarial Goal is victory Hard on problem and on people: demand concessions, distrust others, threaten, mislead, Insist on your position

Choice between Hard and Soft

Choice between Hard and Soft

Choice between Hard and Soft There is another alternative: Change the Game

Principled Negotiation Separate people from the problem Focus on interests not positions Generate a variety of options before deciding on one Insist that the results be based on some objective standards

Separate the People from the Probelm Hard on Problems, soft on People Clear the air first: deal with people problems upfront so that they don’t cloud issue Walk a mile in the shoes of the other Don’t assume the worst because its “safe” Don’t play the blame game (even when deserved). Give people a stake in the outcome

Positions vs Interests https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwi6uc61oaTPAhVI2SYKHV1_DNgQ3ywIHTAA&url=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DmTTwcCVajAc&usg=AFQjCNHxiJBWc3R2ReIGL_V6Hl4evb6m9A&bvm=bv.133700528,d.eWE

Positions versus Interests Identifies what you want Acts as an anchor Commits you to your initial goal Harms relationships Interests Motivation behind positions Identifies which issues conflict and which simply differ Allows for flexibility in initial goal Maintains relationship On issues that conflict versus differ Conflict means that people’s preferences are opposed Differ means that people’s issues oppose See getting to yes pg. 47

Pitfalls of Position-Based Negotiation Creates unwise agreements that do not meet underlying needs Inefficiency: extreme positions and holding on to them increase length, number of concessions and probability of not reaching a settlement Endangers relationships

The importance of asking “why” Reveals interests in the negotiation Helps you understand the other party’s reason for participating in the negotiation Allows you to identify the motivations of the other party Gives both parties the opportunity to generate creative solutions Pulled from 4th edition, pg 27 On instrumental concerns, note that they don’t care about the relationship with the other party

Focusing on Interests In an integrative negotiation, we can push beyond substantial interests Relationship interests Process interests: Fairness Principle interests: Values We have discussed the idea that in integrative negotiations, we primarily focus on interests, which allows us to generate creative and mutually appealing agreements. But not only is there a greater focus on interests in integrative outcomes, we also focus on a broader selection of interests than in a distributive negotiation. When we have talked about distributive negotiations in previous classes, I have tried to emphasize that in a distributive negotiation, you don’t really care about the relationship. In an integrative negotiaion, you often do care about the relationship, which is why you want mutually beneficial outcomes. These are focused on the quality of your relationship with the other person. Process interests are about the procedures that lead to the decision. Usually these have to do with how fair the procedures were during the negotiation. Rsearch on procedural fairness and how that makes people percieve the outcome as more fair Principle interests have to do with an individuals values and beliefs. You want to be aware of the other party’s principle interests since these are a main source of contention is violated. And they are difficult to repair.