1. Negotiation Reflection

3. Positions/Intetersts

4. 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

5. 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?

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

7. 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?

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

9. Sale
Money Plus other things…..

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

11. 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

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

13. 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

14. Choice between Hard and Soft

15. Choice between Hard and Soft

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

17. 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

18. 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

19. Positions vs Interests

20. 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

21. 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

22. 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

23. 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.