Getting to Yes Negotiating Agreement Without Giving In (Chapters 5-7)

1. Getting to YesNegotiating Agreement Without Giving In(Chapters 5-7) Group #5 Colleen Doyle Shayna Pearson Jonathan Sell Jerry Smith

2. Four points for principled negotiations • People: separate the people from the problem • Interests: focus on interests, not positions • Options: generate a variety of possibilities before deciding what to do • Criteria: insists that the results be based on some objective standard

3. Agenda • Insist on using objective criteria. • What if they are more powerful? • What if they won’t play? • Recommendations

4. Using Objective Criteria

5. Using the Basis of Will • Positional bargaining • Focuses on what parties are willing or unwilling to accept • Very costly • Inefficient and time consuming • Can create animosity between parties • Results in a winner and a loser • Example: ego becomes identified with position so it must be defended

6. Using Objective Criteria • All parties need to be on the same page • Principled negotiation • Use standard terms, precedence • More efficient – less time wasted • Parties can defer to a fair solution without giving in • Example: contracting to have a house built and using agreed-to safety standards

7. Developing Objective Criteria • Prepare in advance • Develop alternative standards beforehand • Think through their application to your case • Fair standards • Independent of each side’s will • ideally also legitimate and practical • Apply to both sides • test of reciprocal application

8. Developing Objective Criteria • Fair Procedures • “One cuts and the other chooses” • Cake dividing example • Parties negotiate fair agreement before determining their role • Divorce negotiation: before custody decided, both parties decide visitation rights of other parent • Other • Taking turns • Dividing heirlooms • Letting someone else decide • Mediation, arbitration (last best offer arbitration)

9. Objective Criteria in Negotiation • Frame each issue as a mutual search for objective criteria. • “You want a high price, I want a low price. Lets figure out what a fair price would be.” • Be reasonable and open to reason concerning use and application of standards. • Don’t be biased towards the standards that you advance, others can have legitimate obj. criteria. • Never bend to pressure, only to principle. • Bribes, threats, manipulative appeals to trust, or simple refusal to budge.

10. What If They Are More Powerful?Develop Your BATNA – Best Alternative To a Negotiated Agreement

11. Protecting Yourself • The cost of using a bottom line • Bottom line = Resistance point (ex: the maximum price you are willing to pay); it is a position that is not to be changed • Bottom line makes it easier to resist pressure • Limits ability to benefit from what you learn during negotiation • Inhibits imagination and reduces incentive to invent a tailor-made solution • Almost certain to be too rigid • Likely to be set too high or too low • Adopting a bottom line may protect you from accepting a very bad agreement but it may keep both parties from inventing and agreeing to a solution that would be wise to accept.

12. Protecting Yourself • Know your BATNA • Standard against which any proposed agreement should be measured • Flexible enough to permit the exploration of imaginative solutions • The insecurity of an unknown BATNA • Makes you overly pessimistic about what would happen if the negotiation broke off • Having at least a tentative answer to what you would do if no agreement is reached is essential to conducting negotiations wisely. • Formulate a trip wire • Identify one far from perfect agreement that is better than your BATNA • Can limit authority of an agent • Should provide some margin in reserve • Always keep your BATNA in mind • Be careful about disclosing your BATNA

13. Making the Most of Your Assets • The better BATNA, the more powerful you are • Relative negotiating power of 2 parties depends on how attractive the option of not reaching an agreement is to each party • Develop your BATNA • Invent a list of actions to take if no agreement is reached • Improve some more promising ideas and convert to practical alternatives • Tentatively select the alternative that seems best • The better the BATNA, the greater the ability to improve terms of any negotiated agreement • Consider the other side’s BATNA • The more you can learn about their alternatives the better prepared you are for negotiation • Consider what you can do to change their BATNA • If attractive BATNA for both sides, best option may be to not reach an agreement

14. When the Other Side is Stronger • Don’t turn a negotiation into a gun fight • Negotiate on merits • Having a good BATNA can help to negotiate on merits • The more easily and happily you can walk away from a negotiation, the greater your capacity to affect its outcome • Developing your BATNA is perhaps the most effective course of action you can take in dealing with a seemingly more powerful negotiator

15. What if they won’t play?Use negotiation jujitsu.

16. Getting Them to Play • What if they won’t negotiate? • Other party might focus on “bargaining” and not negotiating • Three basic approaches • First, focus on what you can do • Principled negotiation, concentrate on the issues • Then, focus on what they may do • Redirect attacks and use Negotiation Jujitsu • Third, focus on what a third-party can do • Third party focuses on interests, options, and criteria for both parties involved. • Example

17. Jujitsu • What if they still won’t negotiate?

18. Negotiation Jujitsu • Resort to Negotiation Jujitsu • Four methods to using Negotiation Jujitsu • Typical attack might include: • Asserting their own position • Attacking your ideas • Attacking you

19. Negotiation Jujitsu • Don’t attack their position, look behind it • Neither reject nor accept their position • Example • Don’t defend your ideas, invite criticism and advice • Ask for their opinions and make them feel as though you care • Example

20. Negotiation Jujitsu • Recast an attack on you as an attack on the problem • Accept criticism and ask for more feedback • Ask questions and pause • Questions and silences can be used to draw the other party out • Refocus the “bargaining” on problem solving, and try to bring the other party into this approach.

21. Money Phrases • 3 important money phrases • Trust is a separate issue • Let me get back to you… • One fair solution might be…

22. Recommendations • Insist on using objective criteria. • Develop your BATNA. • Use negotiation techniques such as jujitsu.