1. Leaders as Negotiators: Lessons in Conflict Resolution
A Workshop for the EMBA Program, Koc University
Dr. Mark Young
Istanbul, 3 to 7 August 2012
 Rational Games, Inc, 2009

2. What is negotiation? Terms can be varied Resources are scarce
Interests are both in conflict and in common
INTERESTS:
Ours/Theirs
Ours
Theirs
Ours
Theirs
 Rational Games, Inc, 2009

3. Negotiating is NOT selling.
TYPICAL SELLING
BEHAVIORS:
TYPICAL NEGOTIATING
BEHAVIORS:
To place my product or service with a customer
To discover and fulfill key buying factors
To persuade a buyer to place an order (through good arguments)
To maximize the price paid
To search jointly for a mutually acceptable solution to a common problem
To understand and consider the interests of the other side
To offer concessions (when necessary)
To creatively vary the terms of the deal
 Rational Games, Inc, 2009

4. Goals of this Workshop
TO UNDERSTAND why Win/Win Negotiation is the best way to achieve long-term success, especially for business leaders setting an example
TO BECOME AWARE of our own „natural“ negotiating style, and to evaluate that style in terms of negotiation success
TO BUILD SKILLS and practice techniques which will bring better negotiation results in the future
TO APPLY these concepts and skills successfully to situations of conflict in our everyday life.
 Rational Games, Inc, 2009

5. What is a „good“ negotiation result?
My interests are met
So are those of my negotiating partner (from his perspective)
The result is legitimate and fair
The result is „yessable“ (can be implemented)
Our relationship remains unencumbered
The result is better than all alternatives.
No money left on the table!
Rational Games, Inc, 2009

6. We should not negotiate like this!
The spiral of positional bargaining
POSITION
COUNTERPOSITION
ARGUMENT
COUNTERARGUMENT
ATTACK
DEFENSE
NEGOTIATION FAILURE
 Rational Games, Inc, 2009

7. Negotiating positions are usually founded on interests and, ultimately, perceptions.
Solving Problems by Asking Questions
Position
Position
WHY?
Interest
Interest
Perception
Perception
 Rational Games, Inc, 2009

8. Objectives and alternatives are the foundation of a good negotiation strategy.
Planning Worksheet (1):
Ours:
Theirs:
Negotiation Objective:
Best Alternative:
 Rational Games, Inc, 2009

9. Negotiators must also plan strategies by individual issues.
Planning Worksheet (2)
Negotiation Issue:
Priority:
Limits:
Illustrative:
Ours:
Theirs:
Maximum:
Target:
Minimum:
1. Price 1 2
100 80 55
2. Volume
3.....
5.....
(First offer)
(Walk away)
 Rational Games, Inc, 2009

10. Negotiating a successful outcome – in substance and in the relationship.
ISSUES
SUCCESSFUL
OUTCOME
Hard
RELATIONSHIP
Soft
 Rational Games, Inc, 2009

11. „Horsetrading“ is not negotiations.
Single issue bargaining is a zero-sum game
Haggle over price in the bazaar, not at the negotiation table
Create value, don‘t give it away!
 Rational Games, Inc, 2009

12. Four Principles of „Bargaining“
Concessions are to be traded, not give away
Learn to offer „Packages“
Find and use levers in order to create value
Proper planning is essential
 Rational Games, Inc, 2009

13. Sources of Deal Value Common Ground Differences (Levers)
 Rational Games, Inc, 2009

14. Use levers to increase the value of the deal.
OUR PRIORITIES
Low
Throwaways
Levers
High
Dealbreakers
THEIR
PRIORITIES
Low
High
 Rational Games, Inc, 2009

15. The Negotiator‘s Dilemma
INTEGRATIVE
BARGAINING requires:
DISTRIBUTIVE
BARGAINING
requires:
„Open“ Behavior
Trust
Communication, free exchange of information
Interactive problem solving
Jockeying for position
Tactical behavior
Protecting confidential information
Winning a zero-sum game!
 Rational Games, Inc, 2009

16. The negotiation literature is rich and varied.
Tips for further reading:
Bazerman, Max and Neale, Margaret, 1992: Negotiating Rationally
Fisher, Roger, and Ury, William, 1991: Getting to Yes, (Third Edition)
Glasel, Friedrich, 1997: Konfliktmanagement
Luce, Duncan, with Howard Raiffa, 1957: Games and Decisions
Raiffa, Howard, 1982: The Art and Science of Negotiation
Stone, Doug, 1999: Difficult Conversations
Young, Mark, 2001: Rational Games
 Rational Games, Inc, 2009