1. NEGOTIATIONS WIN/WIN Presented by: Dave Kaczmarek, CMRP, FAHRMM Senior Director, Huron Healthcare 312-718-6031 Dkaczmarek@huronconsultinggroup.com

2. A New Car List price$25,000 Your target$22,000 For commission$20,000 Your first offer$19,000 Final price$21,000 Win/Win????

3. When do YOU negotiate? negotiate?

4. SHOULD I NEGOTIATE? Questions to Ask Can I live with the current offer? Can I live with the current offer? What’s the probability of a better solution? What’s the probability of a better solution? Do I have the time to invest? Do I have the time to invest? Do I have the necessary knowledge? Do I have the necessary knowledge? Do I have the power to impose my solution? Do I have the power to impose my solution?

5. WHO IS YOUR AUDIENCE?

6. NORMAL NEGOTIATION STYLES Concessionary (Soft) Worry about relationshipWorry about relationship Sloppy agreementsSloppy agreements VulnerableVulnerable Adversarial (Hard) Take positionsTake positions Clarify and defendClarify and defend ConvinceConvince

7. CONTRASTING STYLES WIN - WIN WIN - LOSE

8. WIN/WIN PRINCIPLES Cooperation People & Problems Interests Not Positions Creative Options Objective Standards

9. COOPERATION Partners in finding a solution Partners in finding a solution View as an opportunity to problem solve View as an opportunity to problem solve Both outcome AND process are important Both outcome AND process are important The relationship should be enhanced The relationship should be enhanced

10. Failing to deal with others sensitively as human beings prone to human reactions can be disastrous for a negotiation. - from Getting to Yes PEOPLE & PROBLEMS

11. Negotiation happens at two levels SubstantiveSubstantive InterpersonalInterpersonal Egos become involved Parties draw unfounded inferences

12. PEOPLE & PROBLEMS Accurate perceptions Accurate perceptions Appropriate emotions Appropriate emotions Clear communication Clear communication Forward-looking, purposive outlook Forward-looking, purposive outlook Base the relationship on:

13. Interests: - the silent movers behind the positions - the silent movers behind the positions Composed of - needs - desires - concerns - fears INTERESTS NOT POSITIONS

14. Reconciling interests works because For every interest Several possible positions Behind opposed positions More shared interests

15. Ask “why” Ask “why” Ask “why not” Ask “why not” Realize there are multiple interests Realize there are multiple interests Focus on basic human needs Focus on basic human needs INTERESTS NOT POSITIONS How do you identify interests?

16. Make your interests come alive Make your interests come alive Acknowledge their interests Acknowledge their interests Put the problem before your answer Put the problem before your answer Look forward not back Look forward not back Be concrete but flexible Be concrete but flexible INTERESTS NOT POSITIONS Explain What Your Interests Are:

17. To invent creative options you must: Brainstorm with colleagues Brainstorm with colleagues Brainstorm with other side Brainstorm with other side 1. Separate inventing from judging CREATIVE OPTIONS

18. Don’t look for the single answer Don’t look for the single answer Use facilitation techniques Use facilitation techniques Change the scope Change the scope Invent different strengths Invent different strengths To invent creative options you must: 2. Broaden the options on the table CREATIVE OPTIONS

19. StrongerWeaker SubstantiveProcedural PermanentProvisional ComprehensivePartial FinalIn principle UnconditionalContingent BindingNonbinding BROADEN THE OPTIONS

20. Let’s Divide a Pie CREATIVE OPTIONS

21. KathiDave Kathi Let’s Divide a Pie KathiDave This

22. Make the pie bigger Make the pie bigger Identify shared interests Identify shared interests Dovetail differing interests Dovetail differing interests Ask for preferences Ask for preferences 3. Search for mutual gains To invent creative options you must: CREATIVE OPTIONS

23. See through their eyes See through their eyes Look for legitimacy Look for legitimacy What are the consequences What are the consequences Do a “yesable proposition” Do a “yesable proposition” 4. Make their decision easy To invent creative options you must: SufficientRealisticOperational CREATIVE OPTIONS

24. FairStandards: EfficiencyTradition Equal TreatmentReciprocity Scientific judgmentCosts Professional/moral standards What a court would decide Market valuePrecedent OBJECTIVE STANDARDS

25. FairProcedures: Take turnsUse arbitrator Develop solution before you decide who will do which Last best offer arbitration One divide, the other choose OBJECTIVE STANDARDS

26. Frame each issue as a joint search Frame each issue as a joint search Reason and be open to reason Reason and be open to reason Never yield to pressure - only principle Never yield to pressure - only principle OBJECTIVE STANDARDS Negotiating With Objective Criteria:

27. Cooperation People & Problems Interests Not Positions Creative Options Objective Standards WIN/WIN PRINCIPLES

28. What is a BATNA est lternative o a egotiatedgreement DON’T REACT Go to the Balcony

29. DEVELOP YOUR BATNA See your alternative in the aggregate See your alternative in the aggregate Be unduly pessimistic Be unduly pessimistic Agree or not agree unwisely Agree or not agree unwisely Without One It Is Easy To:

30. Invent a list of actions Invent a list of actions Improve some of the more promising Improve some of the more promising Select, tentatively, the best one Select, tentatively, the best one DEVELOP YOUR BATNA

31. A WIN/WIN RESULT Destroy Your Adversary By making him your partner in problem-solving negotiation

32. Cooperation People & Problems Interests Not Positions Creative Options Objective Standards WIN/WIN PRINCIPLES