1. Principled Negotiation
Maureen Gauci
29 Sept 2013

2. What is Negotiation?
The parties in conflict attempt to resolve their issues on their own, without third party assistance
Queen's Fall M. Gauci

3. When to Negotiate: Trust levels between parties are decent
Current or relatively untroubled history
Low or manageable power imbalance
Phase of escalation is at productive level (or slightly higher)
able to strategically think through the matters that will arise during the negotiation, and the potential outcomes of the negotiation
Queen's Fall M. Gauci

4. Negotiation Styles Soft (Co-operative) Hard (Competitive)
Principled (IBN)
Avoid conflict
Friends
Change positions easily
Concede generously
Avoid contests of will
Make concessions for the relationship
Back down to ultimatums
Win at all costs
Adversaries
Dig in to your position
Concede stubbornly
Win contests of will
Demand concessions to have a relationship
Make threats, ultimatums
Problem solve
Professionals
Focus on interests
Invent options
Use objective criteria
Separate people from the problem
Know each side’s best walkaway alternative
Queen's Fall 2012 M. Gauci

5. Understanding Interests
Substantive
Interests
Psychological
Interests
Procedural Interests

6. Principled Negotiator Assumptions:
Common interests are valued and sought
Interdependence is seen as positive
Resources can be expanded through cooperation
The goal is a mutually agreeable solution that is fair
Negotiation takes place at two levels. At one level, negotiation addresses the substance; at another, it focuses— usually implicitly — on the procedure for dealing with the substance. The first negotiation may concern your salary, the terms of a lease, or a price to be paid.
The first point responds to the fact that human beings are not computers. We are creatures of strong emotions who often have radically different perceptions and have difficulty communicating clearly. Emotions typically become entangled with the objective merits of the problem. Taking positions just makes this worse because people's egos become identified with their positions. Hence, before working on the substantive problem, the "people problem" should be disentangled from it and dealt with separately. Figuratively if not literally, the participants should come to see themselves as working side by side, attacking the problem, not each other.
Hence the first proposition: Separate the people from the problem.
The second point is designed to overcome the drawback of focusing on people's stated positions when the object of a negotiation is to satisfy their underlying interests. A negotiating position often obscures what you really want. The second basic element of the method is: Focus on interests, not positions.
The third point responds to the difficulty of designing optimal solutions while under pressure. Trying to decide in the presence of an adversary narrows your vision. You can offset these constraints by setting aside a designated time within which to think up a wide range of possible solutions that advance shared interests and creatively reconcile differing interests. Hence the third basic point: Before trying to reach agreement, invent options for mutual gain.
Where interests are directly opposed, a negotiator may be able to obtain a favorable result simply by being stubborn. That method tends to reward inflexibility and produce arbitrary results. However, you can counter such a negotiator by insisting that his single say-so is not enough and that the agreement must reflect some fair standard independent of the naked will of either side. This does not mean insisting that the terms be based on the standard you select, but only that some fair standard such as market value, expert opinion, custom, or law, determine the outcome. By discussing such criteria rather than what the parties are willing or unwilling to do, neither party need give in to the other; both can defer to a fair solution. Hence the fourth basic point: Insist on using objective criteria.
The four propositions of principled negotiation are relevant from the time you begin to think about negotiating until the time either an agreement is reached or you decide to break off the effort. That period can be divided into three stages: analysis, planning, and discussion.
GIVE EXAMPLE OF BATNA/WATNA using one of the examples given.
Queen's Fall M. Gauci

7. Negotiation Essentials
Prepare your BATNA/WATNA and objective criteria
Distinguish between the person and the problem (what are the issues?)
Move from positions to interests
Develop multiple and creative options
Craft a thorough agreement-fair, wise, enduring
Queen's Fall M. Gauci

8. Separating people from the problem:
Human beings first and foremost with:
Emotions, deeply held values and beliefs, different backgrounds and viewpoints
Make working relationships work by:
Building trust, understanding, and respect

9. Common Interests
Queen's Fall M. Gauci

10. The Differences Between…
Talking about Positions:
Fail to listen – restate your position
Focus on the past
Focus on who to blame, who is right, wrong
Identify the other person as part of the problem
Go for the win
Talking about Interests:
Actively listen to the other point of view
Focus on the future
Identify the problem and discuss what has to be done
Tackle the problem together
Clarify interests
Use creative problem solving and option generation
Queen's Fall M. Gauci

11. FOCUS ON INTERESTS; NOT POSITIONS
The ideal outcome from MY point of view
Usually stated as a demand
One party is advantaged over the other
Position is thrust on the other party with little or no opportunity or desire for understanding
Limits options – but very important to hear
Positions

12. FOCUS ON INTERESTS; NOT POSITIONS
Closely connected to values and priorities
Expressed as underlying wants, needs, fears, etc.
Qualities that motivate our position
Fundamental reasons behind positions not generally discussed - unless someone asks!
Concerns, Hopes, Expectations, Assumptions, Perceptions, Priorities, Values, Impacts, Consequences (CHEAPP VIC)
Positions
Interests

13. FOCUS ON INTERESTS; NOT POSITIONS
Basic Human Needs*:
Have fun, relax, play, be happy, peace
Survive: physical, financial, emotional
Power: respect, dignity, consultation,
Success: competent, capable, recognition, purpose/meaning, important, autonomy
Contribute: co-operate, collaborate
Belonging: friends, family, workplace, social connection*
Positions
Interests
Needs
Physical safety
Emotional safety
Self-worth
Autonomy
Freedom
Social connection
Security (things will be OK)
Contribution
Important
Purpose/meaning
Competent
Belonging
Have fun – be happy
Peace
*As per Dr. William Glasser 13

14. Some common interests:
To be heard
To be consulted
To be respected
To co-operate, collaborate
To be treated fairly, equitably
To have stability
To trust, be trusted
To have flexibility

15. Queen's Fall M. Gauci

16. Stage 1 - Preparation
Think through the (potential) difficult conversation
Identify the issues you believe need to be resolved
What are your interests?
Develop your BATNA/WATNA
Determine applicable objective criteria
What are the interests for the other side?
Who (authority), How, Where?
Queen's Fall M. Gauci

17. BATNA Best Alternative to a Negotiated Agreement:
Invent a list of actions you might conceivably take if no agreement is reached.
Improve some of the more promising ideas and convert them into practical options
Select, tentatively, the one option that seems best (the better your BATNA, the better your negotiating strength is)
Queen's Fall M. Gauci

18. WATNA
Worst Alternative to a Negotiated Agreement
WATNA is the worst case scenario against which any proposal should be measured
WATNA is used to aid in decision-making when searching for solutions
Queen's Fall M. Gauci

19. Examples of Fair Standards
OBJECTIVE CRITERIA
Examples of Fair Standards
Examples of Fair Procedures
Precedent
Scientific judgment
Professional standards
Efficiency
Costs
What a court would likely decide
Moral standards
Equal treatment
Tradition
Reciprocity
Fair standards. You will usually find more than one objective criterion available as a
basis for agreement. Suppose, for example, your car is demolished and you file a claim with an
insurance company. In your discussion with the adjuster, you might take into account such
measures of the car's value as (1) the original cost of the car less depreciation; (2) what the car
could have been sold for; (3) the standard "blue book" value for a car of that year and model; (4) 45
what it would cost to replace that car with a comparable one; and (5) what a court might
award as the value of the car
Coin toss
Taking turns
Drawing straws, cards etc.

20. Stage 1 –Set the Stage Some common ground rules:
All relevant information will be disclosed
All information will be kept confidential
Good faith will be demonstrated throughout the process
Parties will demonstrate active and respectful listening
Parties will use non-judgmental communication (no accusing, blaming, name-calling etc.)
Agree on method for breaks and caucus (if necessary to use this)
Settlement discussions are on a “without prejudice” basis
Queen's Fall M. Gauci

21. Stage 2: Stories Each person gives their perspective on:
The “what happened” conversation
Use “I” messages to remove blame and maximize the opportunity to be heard.
Frame in neutral, non-blaming language.
Use CHEAPP VIC to frame your interests
From this stage will come the identification of issues
Queen's Fall M. Gauci

22. Stage 2 - Issues Focus on the subject matter of the problem
Separating People from the Problem:
Focus on the subject matter of the problem
Put yourself in their “shoes” to try and understand their perceptions
Be empathic and non-judgmental
Look for opportunities to act inconsistently with their perception of you
Expect to determine differences of opinion/value/expectation, etc.
Use neutral framing– don’t make it personal!
Queen's Fall M. Gauci

23. Stage 3 - Discussion
When the parties communicate back and forth, looking toward agreement, the same four elements are the best subjects to discuss:
Problems (people & other) can be acknowledged and addressed.
Each side comes to understand the interests of the other.
Both can then jointly generate options that are mutually advantageous
Together they seek agreement on objective standards for resolving opposed interests.
ASK: How are you going to start that conversation? (Problem to be solved – underlying issues leading to the problem;

24. Generating Options
Only when interests have been identified, should the search for solutions/options begin. Otherwise, the danger is what you are trying to “fix” may not actually be the problem…
Avoid the assumption of the “fixed pie”
Reality-check options to ensure they will stand the test of time and wisdom!
Queen's Fall M. Gauci

25. Fair, wise and enduring Agreements
Any resulting agreement should always answer the questions:
Who
What
How
When
Where, and
What if
Queen's Fall M. Gauci

26. Obstacles Time Environment Expectations of others History
Competitive party
“Un-enlightened” i.e lack of training
Unclear expectations of process and parties
Lack of preparation
Power imbalances
Unaddressed Cultural Differences
Queen's Fall M. Gauci