1. Interest-Based Negotiation Training
Nick Tomb, Izumi Wakugawa Global Majority
Promoting Peace Through Dialogue Amman, Jordan
July 21, 2008

2. 2 Negotiation Approaches
Interest-
based
Competitive

3. Competitive (Distributive)
Relies on “Positional Bargaining”
Parties stake out a position and engage in a contest of wills/egos
Seek concessions from other party
Pursue one (single) solution to the problem
Develop a single “bottom line” as part of the single solution sought

4. Interest-based (Principled)
1. Hard on problem, soft on PEOPLE
2. Identify INTERESTS that compel various positions
3. Brainstorm multiple OPTIONS to find best solution(s)
4. Develop BATNA (Best Alternative to a Negotiated Agreement)
5. Rely on OBJECTIVE CRITERIA (Fair standards)

5. 1. People (the parties) Research/Investigation:
Who are your counterparts?
What are their fears, ambitions, goals, and preferred outcomes?
Who is their constituency? To whom must they defend the agreement?

6. People (cont’d) What is their AUTHORITY? Power to make a deal
Power to “bind” their government, company, organization
Is it limited? Who has ultimate authority?
How to determine? ASK!!!

7. People (cont’d) What is your AUTHORITY?
Do you have power to enter agreement?
To whom do you report?
Use of “limited authority” to your advantage.

8. People (cont’d) Build the Relationship Future Dealings
Reputation (honesty, ethics, implementation of agreements)
Multiple Parties, Interest Groups & Constituencies

9. 2. Identify Interests Interests are what lie behind positions
Often related to security, sovereignty, legitimacy, reputation, economic security, justice, survival needs, moral commitment, etc.
What are your INTERESTS?

10. Identify Interests (cont’d)
What are their INTERESTS?
To determine interests, ask “Why” or:
“What is it about this price, solution, or offer that you consider most important?”
What are other parties’ INTERESTS?
govt. agencies, organizations, consumers, clients, voters, media, competitors, etc.

11. 3. Invent Options
A. Create atmosphere of open BRAINSTORMING, to develop MULTIPLE OPTIONS
B. Be Creative - Invent Multiple Options/Solutions
C. Expand the “Pie”
D. By understanding the parties’ real INTERESTS you can fashion creative options/solutions that they may not have considered

12. Invent Options (cont’d)
E. Use flip charts, butcher paper, black boards, white boards, etc.
F. Create a JOINT PROBLEM SOLVING relationship.
G. Invite wild, extreme, unorthodox, ideas and options.
H. Create a LIST
I. DO NOT reject or select any proposal during a brainstorming session.

13. Invent Options (cont’d)
J. Prioritize the list by eliminating, amending, selecting, and ranking potential options/solutions.
K. Introduce a SINGLE TEXT DOCUMENT
You present a written draft
You INVITE critique, amendments, and edits
Obtain signatures/initials on single text documents - interim agreements, procedural agreements (=Confidence boosters.)

14. 4. Develop “BATNA”
“Best Alternative to a Negotiated Agreement” in three steps:
Step #1. Develop your “Walk Away Alternative” (OPTION)
Market place example
Employment example

15. Develop BATNA (cont’d)
Step#2. Build your BATNA
Research/investigation
Use of “objective criteria” or evidence to support your positions
Increases your negotiating power
Step#3 Reduce power of their BATNA
Research/investigation/use of evidence, objective criteria
They gain more if they stay in the negotiation

16. 5. Use Objective Criteria
Use of “Fair Standards” to assist in the resolution of disputes/conflicts
Introduce a non-controversial authority or standard:
Precedent decisions (legal, administrative, WTO, NAFTA, etc.)
Industry practice and standards (example: prevailing wage rates)
Scientific Studies
Expert testimony or analysis

17. Objective Criteria (cont’d)
Easier to accept an “outside authority” or established standard as a “fair means” of dispute resolution
Useful phrases:
“All we want is an agreement that is fair…”
“Show me why you consider this to be a fair offer?”
“How did you arrive at this amount, proposal, position, etc.?”

18. Interest-based Negotiation: Summary
1. Focus on
People
Interest-based Negotiation: Summary
2. Identify
Interests
5. Objective
Criteria
3. Invent Options
4. Develop BATNA

19. Developing Your Negotiation Strategy (5 Steps)
1. Problem Identification
What is the nature of the problem?
2. Determine your Preferred Outcome
Remember, there may be multiple options or solutions that will satisfy your interests.
Can you describe what you want? Can you put it in writing? Are your team members in agreement? Can you speak with “one voice”

20. Developing Your Negotiation Strategy (cont’d)
3. What is your Counterpart’s Preferred Outcome?
4. Reverse Roles
Can you articulate your counterpart’s interests, goals, and BATNA?
Engage in active role-playing with your
negotiating team members.

21. Developing Your Negotiation Strategy (cont’d)
5. Make a Chart
People
Interests
Options
BATNA
Criteria

22. Six Negotiation Techniques
1. Use of time, place, & environment

23. Negotiation Techniques (cont’d)
2. Active Listening
Reframe what you have heard
“Let me see if I understand you correctly…”
“What I understand you to be saying is…”
“Correct me if I am wrong, but what I hear you saying is...”
Tells your counterpart that you are listening; you are hearing what they are trying to express
You don’t have to agree with them, you are just establishing the fact that they are being heard

24. Negotiation Techniques (cont’d)
Ask Questions
“What if we did x, y, or z ...?”
“How do you arrive at that position?”
“What information do you rely upon..?”
“How do you feel about…?”
“Do you think it would work if we tried...? Why not? How could we make it work better? What would you recommend? What would be acceptable to you?”

25. Negotiation Techniques (cont’d)
3. Take Breaks (go to the balcony)
DON’T be pressured into a hasty, unwise, or rapid decision
“Example: “You have made an interesting proposal. Let me take five minutes to discuss it with my colleagues (team members).”

26. Negotiation Techniques (cont’d)
DON’T be pressured into a “TAKE IT OR LEAVE IT ULTIMATUM”
“I realize you have put much time and thought into the development of this proposal. I would like to review it with the same care and consideration with which you prepared it. Let’s meet again tomorrow at the same time.”

27. Negotiation Techniques (cont’d)
4. Use “SINGLE TEXT DOCUMENTS
Write down your proposals as to procedural agreements, timetables, substantive terms and conditions, etc.
5. Identify DIRTY TRICKS, STRONG ARM TACTICS & RUDE BEHAVIOR
6. Build your REPUTATION
… for fairness, follow-through, and reliable implementation of agreements.

28. Negotiation Skills Application
Group Exercises