1. Use Negotiation to Manage Conflict
Win-Win Tactics (integrative bargaining)

2. Integrative vs. Distributive Negotiation

3. Pemberton Payoff Matrix
Country Market
Close Sunday
Open Sunday
+20,000
-40,000
Corner
Close Sunday
Corner
Country
+20,000
Country
+40,000
Corner
Store
Corner
+40,000
Corner
-20,000
Open Sunday
-40,000
Country
Country
-20,000
**THE GOAL IS TO MAXIMIZE PROFITS OVER THE
NEXT 12-WEEK PERIOD

4. Win-Win vs. Win-Lose Process
Cooperative gains exceed competitive gains
Win-Win Settles More Quickly
Win-Win Is Friendlier
Win-Win Shares Information Earlier
Win-Win Uses More Positive Body Language
Win-Win Is Quieter, Less Confrontational
Win-Win increases credibility and trust 11

5. Key Stages in Win-Win Process
Identify and define the problem
Separate the people from the problem
Understand the problem fully--identify interests and needs
Focus on interests, not positions
Generate multiple alternative solutions
Consider BATNA
Evaluate and select alternatives
Use objective standards for evaluation 2

6. Negotiation Preparation
Interests: People want?
ID Relevant parties, clarify interests, probe for underlying interests
YOUR interests and theirs
Options
Options to meet interests, Maximize joint gain
Alternatives (BATNA)
My alternate, select and improve, Their alternates, Their BATNA
Legitimacy
External standards, Fairness of process, Attractive explanation
Communication
My assumptions, Reframe to help them understand
Relationship
Separate people/problem, Build good relationship
Commitment
ID issues to be included, plan steps to agreement 19

7. Focus on Interests, not Positions
Some distinctions:
Issue: Topic of negotiation.
Position: One party’s solution to an issue.
Interest: One party’s concern about an issue.
For a wise solution
Reconcile interests, not positions.
How do you identify interests?
Ask!
Talk about interests
Mutual, conflicting, unmatched. 21

8. Invent Options for Mutual Gain
Separate inventing from deciding
Brainstorm, nominal groups, surveys
Broaden your options
Expand the pie (more for everyone)
Log-roll (tradeoff where your desires differ)
Use nonspecific compensation
Cut costs for compliance
Bridge solution
Look for mutual gain
Make their decision easy 24

9. Options Look for ways to work together to make more
Similar skills and resources:
Economies of scale, cheaper to produce for two, combine purchase power for better discount
Different skills and resources
Create what neither of you can on own.
Options for joint benefit
Rather than separate or independent benefit, joint sponsorship
Value in differences
Risk: some like, others hate. One side more easily bear or insure against
Timing: different clocks, what is impossible this month is ok next, or unaffordable next year is ok this.
Perceptions: what others think. Third parties, public victory if needed, other get something they really want.
Marginal value: have some, want less, so trade.

10. Options Forms 1. Create options to meet interests
Your interests
Their interests
Possible options
2. Find ways to maximize joint gains
Inventory of skills and resources: me and them
Combine similar resources to produce value
Combine different resources to produce value

11. Alternatives Forms 3. Identify alternatives open to the other side
Their key interests
What could they do to satisfy their interests if we do not reach agreement?
Alternatives, pros, cons
4. Estimate their BATNA
What would I do in their shoes?
How legitimately make their BATNA less attractive?
Harder to pursue?
Influencing perceptions of unwise or costly?
1. Think of my alternatives to a negotiated agreement
My key interests
What could I do to satisfy my interests if we do not reach an agreement?
Alternatives, Pros, Cons
2. Select and improve my BATNA
Really?
Do to improve BATNA

12. Legitimacy External (Objective) standards Fairness of process
Attractive explanation

13. Insist on Using Objective Criteria
Deciding on the basis of will is costly
The case focusing objective criteria
Developing objective criteria
Negotiating with objective criteria
It’s company policy 26

14. BATNA Brainstorm options Improve on options Select the best
Improve it again
Select a tripwire
Their BATNA ?
Diminish in negotiation? 28

15. Separate the People from the Problem
Negotiators are people first
Two kinds of interests: Substance, Relationship
Separate the relationship from the substance; deal directly with the people problem
Perception
Emotion
Communication
Prevention 20

16. Communication Forms
1. Question my assumptions and identify things to listen for
Intentions and perceptions
Phrases that question assumptions.
2. Reframe to help them understand
Your perspective
How might they hear it?
Reframing

17. Relationship Forms 1. Separate people issues from substantive issues
Describe your relationship
Substantive issues and problems
Substantive options and remedies
Relationship issues and problems
Ways to improve relationship
2. Prepare to build a good working relationship
What might be wrong now?
Cause?
Lack of trust?
Feel coerced?
Disrespected?
Get upset?
What can I do?
Understand them
Demonstrate reliability
Focus on persuasion
Show acceptance and respect
Balance emotion and reason

18. Commitment Forms
1. Identify the issues to be included in the agreement
Overall purpose of negotiation
Expected product
Specific purpose of next meeting
Tangible product of next meeting
Plan the steps to agreement
Decision makers: names of those who will sign
Implementation: Info agreement should include about what happens next
Steps to get binding agreement