Everyday Negotiation Skills Michael D. Rust, J.D. Executive Director

How do people resolve conflict? AvoidanceNegotiationMediationArbitrationLitigationViolence 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 Acceptance Offer Acceptance

Tool #1 Interest 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 #2 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 #3 Talk 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 Dominance Person places emphasis on accomplishing results, the bottom line, confidence Speak in bullet points! Focus on the solution, not the problem Influence Person places emphasis on influencing or persuading others, openness, relationships Start with a story! Don’t overload with details

Recognizable Communication Types Steadiness Person places emphasis on cooperation, sincerity, dependability Give them time! Be amiable and personal Conscientiousness Person 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 #4 Recognize Differences, Not Wrongs

Actual Example

Tool #5 Good Communication

Communication Word choice Exceptionally important Nonverbal Body language Appearance Tone Pace Location

Electronic Communication 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 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 you Any questions?