1. Negotiating Effectively

2. Building Negotiation Leadership
Awareness
Increase awareness and understanding of the negotiation process and negotiation tendencies
Framework
Use of framework and tool for preparing, conducting, reviewing and improving negotiations and negotiated results
Action skills
Improve real-time negotiation skills through practice

3. Conflict Process

4. Conflict: Resolution Modes

5. Negotiation
Negotiation is a process of two or more parties working together to arrive at mutually acceptable resolution of one or more issues
Negotiation is back-and-forth communication designed to reach an agreement when you and the other side have some interests that are shared and others that are opposed.
Negotiation refers to a process of seeking to influence others

6. What Negotiation is Not?
To respect the order of boss and act accordingly
Making a decision between parties using arbitration where the parties are legally bound to follow the arbitrator’s decision
Negotiation is not a competitive sport (we are contesting but not competing to opposition with the aim of crushing them)

7. Negotiation Operational Definition
Negotiation is a process of two parties working together to arrive at mutually acceptable resolution of one or more issues dealing with the conflicting situation mostly in an organizational/ workplace setting.
Conciliation, Mediation, Arbitration, Litigation don't fall under the scope of today’s discussion.

8. Negotiation Styles
Accommodating- seeks to accommodate the interests of the other side
Avoiding- seeks to avoid outcomes, common in bureaucracy
Collaborating- tries to find synergy among interests
Competing- views negotiators as competitors
Compromising- concedes easily
(Each style can be used depending upon circumstances)
(A combination of these styles can be applied)

9. Negotiation Styles Dimensions Characteristics Outcome Avoiding
Desire to withdraw or suppress a conflict.
Lose-Lose
Accommodating
willingness to place opponent’s interests above own.
Build friendly relationships
Lose-Win
Compromising
Willingness to give up something.
Some Win-some Lose
Competing
Desire to satisfy one’s interest regardless of impact of other party to the conflict.
Win-Lose
Collaborating
Creatively solves problems so both parties win
Win-Win

10. Imagine the Following:
As chief of the planning unit of the Ministry of Health and Population, you are responsible for leading the recently established health reform team. Donor agencies fund a major portion of your budget. They and GoN are putting pressure on you to reduce the health inequalities that exist between rich and poor. To address this problem, you hope to reallocate public expenditure to the currently poorly-funded maternal and child health and childhood infectious disease programs that will benefit the poor. To make this financially sustainable, you know you must decrease allocations to the hospital sector, a move that will be vigorously opposed by your colleagues in the medical profession. What will you do?

11. Health Development Negotiation Process
The Road to Health Outcomes
Prepare for informed decision-making
Select priorities and strategic options
Create conditions for successful implementation
Implement for results and learning

12. Negotiation in Bureaucracy
Increasingly complex environment
Requirement of “trouble-shooter” role
Conflicting interests of peers, supervisor and juniors
Stakeholder and beneficiary pressure
Increasing availability of facts and figures
Media chase
Political influence /politicization
Involvement in diplomatic negotiations
Pressure to deliver outputs

13. Standard Ways to Negotiate
Wants to avoid personal conflict
Makes concessions readily in order to reach agreement
Wants an friendly resolution
Ends up exploited and feeling bitter
Sees any situation as a competition
Wants to win
Ends up producing response that exhausts him and his resources and harms the relationship
Soft Negotiator
Hard
Negotiator

14. Principled Ways to Negotiate
Focuses on both parties’ merits
If interests conflict, insists that the result be based on some fair standards
Be empathetic
Hard on the merits but soft on the people
No tricks and no posturing
Shows how to obtain what you are entitled and still be decent
Be innovative and creatively solve the problem
Neither Soft Nor Hard

15. Using the Elements Alternatives Communication Relationship Interests
Commitment
Alternatives
If “No”
If “Yes”
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Interests
Options
Legitimacy

16. Key Elements in Negotiation
Interests
The concerns, wants, needs, hopes and fears that underlie and motivate our positions, demands and disagreements
Options
All possibilities on which we might reach agreement; an agreement is best if it explores all potential solutions for mutual gain
Legitimacy
The fairness of an agreement as measured by criteria, benchmarks, principles, laws, regulations, standards, practices, market price, relevant precedents

17. Key Elements in Negotiation
Alternatives
Available walk-away possibilities in case we do not reach an agreement; neither party should agree to a deal that is worse than its Best Alternative to a Negotiated Agreement (BATNA)
Commitments
Statements about what we will or won’t do; good agreements are well planned and crafted to be practical, durable, easily understood and verifiable

18. Key Elements in Negotiation
Communication
The message and media through which we convey information; we understand each other even if we disagree, and we minimize resources spent in coming to agreement
Relationship
The overall pattern of interaction among the other parties within and outside the negotiation and us; interactions should improve, not damage, our relationships.

19. Strategic Guidelines for Skilled Advocacy
Make statements and invite discussion
Be sensitive to the impact of words and body language
Reduce emotion

20. Strategic Guidelines for Skilled Inquiry
Cultivate curiosity
Practice strategic listening
Earn the right to inquire
Facilitate two-way communication
Deal separately with the relationship between the parties and the substance issue – each on their own merits
Rather than react to positions, probe for underlying needs

21. Circle of Value
Circle of value as a guide in creating value in a negotiation
When we are in the circle of value, our inquiry skills become very important then that of our advocacy.

22. Orange Story
Two sisters are quarrelling over an orange Both sisters are implicitly claiming the orange for themselves “I absolutely want this!” What should they do?

23. Orange Story
They finally agreed to divide the orange in half

24. Orange Story
Are you with the agreement made by the two sisters?

25. Orange Story
The first sister took her half, ate the fruit, and threw away the peel, while the other threw away the fruit and used the peel from her half in baking a cake.

26. Orange Story
What the two sisters could have done to produce a better outcome?
Please share your views regarding the solutions?
Too often negotiators ‘leave money on
the table’. Why?

27. Circle of Value Rather than react to positions, probe for INTERESTS
Ask ‘why’, ‘what else’ and ‘in what order’
Share some of your interests
Share your understanding of theirs; ask for feedback
Ask for criticisms, not concessions

28. Circle of Value
Rather than focus on what concessions to make, generate OPTIONS for mutual gain
Jointly brainstorm multiple options
Positional negotiations limit optimal solutions
Separate inventing from deciding
Consider informal processes for brainstorming
Creative thinking expands the range of possible options and promotes better solutions

29. Circle of Value Use LEGITIMACY to ‘build a golden bridge’
Negotiation is not giving in, or bowing to the will of another party
Explain your reasoning, inquire into theirs
Consider how they will explain their results to their constituents
Focus on why an option is ‘fair’ or ‘appropriate’

30. Motorcycle Example
A teacher wants to buy a motorcycle. The reasons and needs for doing so is INTEREST.

31. Motorcycle Example INTEREST need for transportation
transportation that is reliable
easy to park
not too expensive …

32. Motorcycle Example
Since, he does not have the money to buy a bike today, what can be the options?

33. Motorcycle Example OPTIONS
Rent/lease until having the sufficient funds
Loan and pay back interest
Take a job at the shop and pay off with the hours/time he works
Buy a used bike …

34. Motorcycle Example LEGITIMACY Website showing comparative prices
Visit another shop selling bikes
Visit another shop selling the same used motorcycle with similar
mileage …

35. Alternatives/BATNA Acknowledge AlTERNATIVES/BATNA as a choice
Reality test theirs – how well does it satisfy their interest?
Use discussions about BATNA as an opportunity to learn about interest and to invite options that exceeds all BATNAs
If useful, explain yours
Can we present them with a fading opportunity?
Are there other decision makers we can deal with

36. Commitments Make COMMITMENTS with care, after learning all you can
Commit early to process, late on substance
Break up ‘decision making’
Inventing options
Evaluating options
Refining options
Committing to options
Design appropriate interim products at different stages
Verify parties know exactly what they are committing to

37. Relationship
Deal separately with the RELATIONSHIP and the substance – each on its own merits
Be friendly on relationship, firm on substance
Use people techniques to deal with people problems
Do not try to threaten or buy the relationship

38. Communication Facilitate two-way communication
Explicitly discuss/negotiate the process
Communicate meeting purpose/products/process
Listen actively and inquire
Frame what we say in light of what they will hear

39. Case
The Grant

41. Strategic Inquiry Guidelines: INTERESTS
What are you trying to accomplish in these negotiations?
What are your key motivations in these negotiations?
What are you concerned about?
Do you feel we “must” do a deal here?
I would prefer to work something out jointly. Would you?
What interests would be better met if we don’t agree?

42. Strategic Inquiry Guidelines: OPTIONS
What would be wrong with…?
What other ideas might we brainstorm on this problem?
If we work together, how might we make this better for both of us?
Do you have the authority to make a decision on this?
Do others need to be here to get this done?
What would be your reaction to a possible offer like…?
If I were able to offer you “x,” could you say “yes” today?

43. Strategic Inquiry Guidelines: LEGITIMACY
Why do you think we ought to do that?
What benchmarks do you see in our field of work that make this appropriate?
If you were I, how would you justify that to others?

44. Strategic Guidelines for Achieving LEGITIMACY
Identify relevant benchmarks, precedents, researched evidence, objective criteria, fair or established practices
Consider fairness and relevance from our perspective, theirs, and that of a neutral third party
Consider steps to gain and share data before or at the table.
Legitimacy can be used to persuade or defend

45. Strategic AGREEMENT Guidelines
Agree early on process, late on substance
Create a sequence: for example, delegate roles, invent options, evaluate, refine, then seek agreement
Verify that parties know what they are agreeing to, how they will keep their agreements, and how implementation can be verified

46. Strategic BATNA Guidelines
Develop our Best Alternative to a Negotiated Agreement
Assess its probability and attractiveness given our interests
Consider ways to improve our BATNA
Estimate their BATNA
Assess if it is operational and attractive given their interests
Consider ways to weaken their BATNA

47. Finally,
Strategic negotiation is not to “make a deal.” It is to make wise decisions. So,
Clarify interest
Consider options with no commitments
Test legitimacy
Consider walk-away alternatives
Sequence commitment
Plan communication
Develop a relationship strategy

49. Thank You