Introduction & Purposes
Substance / Relationship Tension
Our Goal
Substance
Relationship
Workshop Purposes
Increase awareness:
Prevalence of negotiation Process, and different styles Your strengths and weaknesses For preparation, conduct, and review
Provide a framework:
Improve skills Help you keep improving
Workshop Methods
Exercises Cases and role-play Theory lectures Group discussions and debriefs Application to current situations
Focus of Our Efforts
What we control:
What we influence:
How we behave How we allow others to persuade us
The behaviour of others The process Our relationship The results
Our Focus
The Pepulator Pricing Exercise
Pepulator Instructions
You will be a Board Member for either Pulsar Pepulator or Consolidated Pepulator Your job is to set your company's Pepulator prices on a month-bymonth basis You have three price points to choose from: $10, $20, or $30 per unit Your goal is to make as much money as possible for your team Profits are determined by the Pepulator Profit Matrix to be explained shortly Pricing slips will be collected and exchanged
Pepulator Instructions (contd)
All forms of communication with your counterparts, other than through your price, are prohibited Pepulator prices were $20/$20 last month Before the first month: you have 10 minutes to discuss additional goals and your strategy and decide your price You will have 2 to 3 minutes between subsequent months You will be divided into groups independent universes Please record prices and profits on the profit ledger
Profit Matrix
Our Price 30 110 110 20 20 180 80 20 150 150 20 180 20 80 30 30 50 50 150 10 150
30 Their Price 20
10
Round
1 10 10 10 10 10 10 10 10
4 20 10 10 10 10 10 20 10
2 30 30 30 30 30 30 30 20
5 30 30 30 30 30 30 20 30
3 10 10 10 20 10 10 30 10
6 30 10 10 30 10 10 10 10
A 30 30 30 30 30 30 30 20
AA 30 30 30 30 30 30 20 30
1 2 3 4 5 6 7 8 Total SUM
1100 410 1510 1510 840 1510 3020
910 1510 1510 3020
1750
Learning Pathways
Results
Actions
Mindset
(Assumptions & Thinking)
Two Models for the Negotiator
Low value outcome Be aggressive Push hard Use force Competitive Claim value
Results
High value outcome Hard on problem, respectful of people Look for joint gains Collaborative Create value, and claim fairly Maximize total benefits available Pie can be expanded This is a puzzle to solve together
Actions Strategy
Beat them
Goal Assumptions
Pie is fixed This is a battle
Possible Assumptions
Debilitating:
Empowering:
Resources are scarce This is a battle They are my opponent The goal is to beat them This is a one-time negotiation Best to see what they do first Rules of the game are fixed Poor communication is their problem They are stupid, crazy, or evil
We can create resources This is a puzzle They can be a teammate The goal is to maximize value This has future impact I can lead and set the tone I can change the game Good communication is in my interest People do what they believe is in their best interest
Other Key Lessons
Communication:
Message sent message received Intent not same as impact
Relationship:
Consider the power of trustworthiness Trust = balance of risk and return Strong relationships help produce good substantive outcomes
Process:
Be proactive and purposeful Act with the end goal in mind
Defining Success
Process Overview
CONDUCT
PREPARATION
GOAL
REVIEW
Common Measures of Success
Winning:
Not Losing:
Got better result than other party did Made fewer concessions Got as much as possible They look bad They hurt more
Did not get taken Did not lose face Will not be criticized Equally unhappy with outcome No confrontation
Components of Negotiation
Multiple Issues Repeat Over Time Multiple Parties
Intangible Factors
Tangible Factors
Internal and
Trust, Reputation, Precedent & Relationship
External Factors
8-Element Framework
Defining Success
1.
Process
Measure:
Process felt fair and efficient to all parties How the parties interact and make decisions
Definition:
Two Functions for a Negotiator
Process
Substance
8-Element Framework
Defining Success
1. 2.
Process Alternatives (BATNA)
Measure:
Any agreement must be better than your Best Alternative To a Negotiated Agreement How you will meet interests and concerns if no agreement reached BATNA Bottom Line
Definition:
Note:
8-Element Framework
Defining Success
1. 2. 3.
Process Alternatives (BATNA) Interests and Concerns
Measure:
Parties interests and concerns are well met. Third parties interests at least tolerably met. Needs, wants, fears, objectives, goals, motivations Interests Positions
Definition:
Note:
Categories of Interests
Common Differing (but not in conflict) Conflicting
8-Element Framework
Defining Success
1. 2. 3. 4.
Process Alternatives (BATNA) Interests and Concerns Options
Measure:
Options selected create value for all parties and meet their interests and concerns Possible solutions Options Alternatives
Definition:
Note:
The Pareto Frontier
Wasted Value
Your Units of Satisfaction X
Other Partys Units of Satisfaction
8-Element Framework
Defining Success
1. 2. 3. 4. 5.
Process Alternatives (BATNA) Interests and Concerns Options Benchmarks
Measure:
Agreement is seen as fair based on agreed benchmarks Precedents, market practice, custom, law, usual procedures, comparables
Definition:
8-Element Framework
Defining Success
1. 2. 3. 4. 5. 6.
Process Alternatives (BATNA) Interests and Concerns Options Benchmarks Commitment
Measure:
The commitment is clear and operational Oral or written summary of what you will and will not do
Definition:
8-Element Framework
Defining Success
1. 2. 3. 4. 5. 6. 7.
Process Alternatives (BATNA) Interests and Concerns Options Benchmarks Commitment Communication
Measure:
We understand each others intended messages, and the flow of information is reciprocal (two-way) Verbal and non-verbal signals we send to each other
Definition:
8-Element Framework
Defining Success
1. 2. 3. 4. 5. 6. 7. 8.
Process Alternatives (BATNA) Interests and Concerns Options Benchmarks Commitment Communication Relationship
Measure:
Quality of relationship is maintained or improved The quality of the interpersonal dynamics i.e. trust, respect, goodwill
Definition:
8-Element Framework
Defining Success - Summary
The outcome is successful if:
Parties feel the process is efficient and fair The deal (if any) is better than your BATNA The interests and concerns of the parties are well met Options in the agreement create value for the parties If relevant, benchmarks are available to demonstrate the fairness of the outcome The commitment is clear and operational Communication among the parties is two-way and clear The relationship has been maintained or improved
Adapted from The Harvard Negotiation Project
Preparation Questions
Preparation
Questions to Consider
INTERESTS and CONCERNS:
What are our wants, needs, concerns, fears, objectives, and hopes that underlie our position? What are theirs? What is the priority of these interests and concerns? How certain are we of theirs? What third-party concerns should we consider?
OPTIONS:
What are possible solutions based on our interests and concerns? Where can we trade options based on differing interests? What benchmarks can we use to handle conflicting interests? What have others done to solve similar problems? Is there an ideal solution that we do not know how to implement yet?
Preparation
Questions to Consider
BENCHMARKS:
Are there precedents, market practices, norms, customs, professional guidelines, law etc that we can use to decide? What would a mediator or judge do (about the substance and the process)? What standard seems fairest to me?
WALK-AWAY ALTERNATIVES (BATNA):
What can I do on my own or with a third party to meet my interests and concerns if we do not reach agreement? Which single course of action is best? (My Best Alternative To a Negotiated Agreement) How can I improve my walk-away alternatives? What can they do on their own or with a third party to meet their goals and concerns? What can I do to reality-test or worsen their alternatives?
Preparation
Questions to Consider
RELATIONSHIP:
What is current state of relationship? Preferred? If gap exists, what are possible causes? Plan steps to address deficiencies in relationship: Apology? Explanation? New protocols?
COMMITMENT:
Which topics should be contained in the agreement? What steps need to be taken for successful implementation
Roles, responsibilities, timelines
What will we do if things go wrong?
Dispute resolution clause?
What is our level of authority to make decisions? Theirs?
Preparation
Questions to Consider
PROCESS:
How much time to allocate What order to address items in How many meetings? Purpose of each? Who should and should not participate in negotiation Should we use a facilitator, mediator, etc? Venue: where should we meet (their site, ours, neutral location?) How to open and close discussions What information should we gather? Share? What assumptions should we test? How can we manage anticipated communication problems? Are there issues we dont feel we adequately understand? Has the communication flow been reciprocal (two-way)?
COMMUNICATION:
Negotiation Groundrules
Role play, not acting No need to agree Confidential instructions Extra facts:
Immaterial: OK Material: Caution
If you finish early, review or improve Locations Pairings
Welcome to Day 2
Substance / Relationship Tension
Our Goal
Substance
Relationship
Two Models for the Negotiator
Low value outcome Be aggressive Push hard Use force Competitive Claim value
Results
High value outcome Hard on problem, respectful of people Look for joint gains Collaborative Create value, and claim fairly Maximize total benefits available Pie can be expanded This is a puzzle to solve together
Actions Strategy
Beat them
Goal Assumptions
Pie is fixed This is a battle
Possible Assumptions
Debilitating:
Empowering:
Resources are scarce This is a battle They are my opponent The goal is to beat them This is a one-time negotiation Best to see what they do first Rules of the game are fixed Poor communication is their problem They are stupid, crazy, or evil
We can create resources This is a puzzle They can be a teammate The goal is to maximize value This has future impact I can lead and set the tone I can change the game Good communication is in my interest People do what they believe is in their best interest
Process Overview
CONDUCT
PREPARATION
GOAL
REVIEW
8-Element Framework
Defining Success - Summary
The outcome is successful if:
Parties feel the process is efficient and fair The deal (if any) is better than your BATNA The interests and concerns of the parties are well met Options in the agreement create value for the parties If relevant, benchmarks are available to demonstrate the fairness of the outcome The commitment is clear and operational Communication among the parties is two-way and clear The relationship has been maintained or improved
Adapted from The Harvard Negotiation Project
Two Functions for a Negotiator
Process
Substance
The Pareto Frontier
Wasted Value
Your Units of Satisfaction X
Other Partys Units of Satisfaction
Advice for Effective Negotiations
Process Overview
CONDUCT
PREPARATION
GOAL
REVIEW
Traditional Positional Bargaining
Threat
Extreme Position
Small Concession Concession
Possible Deal
Concession Small Concession Extreme Position Threat
Orchestrating the 8 Elements
Adapted from The Harvard Negotiation Project
Process
Relationship
Interests & Concerns Options
Communication
Benchmarks
If No BATNA
(Best Alternative To A Negotiated Agreement)
If Yes Commitment
Advice: Process
Negotiate process before substance Inquire about one anothers process protocols and expectations
Surface assumptions about roles and responsibilities negotiate differences Share work style preferences e.g. frequency and mode of communication
Negotiate scope management approach early Balance your roles as facilitator and advocate Take a break when things heat up
Advice: Communication
Dont just collect information, give it as well Balance inquiry and advocacy Check your understanding
Use paraphrasing to clarify their message
Consider the medium in person, by phone, email, letter?
Advice: Relationship
Address relationship issues (e.g. strong emotions) before addressing the substance Manage relationship and substance on their own merits, parallel:
in
Dont make inappropriate concessions on the substance to buy a good relationship Dont reward bad behaviour with concessions
Be wary of blame, and give people the benefit of the doubt (but do test this assumption) Model the behaviour you want to see from others.
Advice: Interests and Concerns
Use preparation time to step into their shoes Focus on understanding stakeholder interests
Dig behind their positions Establish clear priorities among their interests
How to uncover interests and concerns:
Ask why, what is your core objective etc. Share some of your interests, then ask for theirs Share your understanding of their interests and ask whats missing Suggest possible options and solicit feedback
Use reciprocal disclosure to build trust and momentum
Advice: Options
Look for low-cost, high-gain trades Brainstorm as many ideas as possible Guidelines for brainstorming: remove commitment and evaluation
Negotiate a no commitment ground rule, or brainstorm without the other side present Invent options first, then evaluate them Remember, some of the best ideas are crazy at first
Draw upon shared experiences Use tentative commitments on options until you know the whole package
Advice: Benchmarks
Negotiate the benchmarks, as with options Use benchmarks that cannot be manipulated by either party Use benchmarks to say heres why or to ask show me why Consider the test of reciprocity Use industry and RBC Project Management best practices as benchmarks Use lessons from other projects as a guide Be open to persuasion
Advice: Commitment
Commit on process early, substance late Know all pieces of the deal before committing Revisit your BATNA before committing Ensure that parties understand what they are committing to, and by when Include operational details in the agreement Clearly define roles and responsibilities Use process commitments for issues that require more work
Advice: Alternatives
Use caution when discussing BATNA
It is generally heard as a threat and is counterproductive
If either party walks, dont burn bridges Instead of escalating unilaterally, try to negotiate a joint escalation Do not cave into scope change or timing demands based on pressure or threats
Decide on the merits based on benchmarks
Advice: Alternatives (contd)
Discussing their BATNA
When
They mention it; or You feel they are overestimating or overstating it First, acknowledge it as a choice Then, ask openly how it would meet their interests better than your proposal. Be curious and open to learning. Be open to being wrong
How
Disclosing your BATNA:
When
Its better than they think and their offer is inferior As a warning, not a threat. Emphasize your preference to reach agreement they are willing to work with you.
How
Orchestrating the 8 Elements
Adapted from The Harvard Negotiation Project
Process
Relationship
Interests & Concerns Options
Communication
Benchmarks
If No BATNA
(Best Alternative To A Negotiated Agreement)
If Yes Commitment
Communication Skills
Brief your partner on your personal case
1. Who are the parties? 2. What is the subject? 3. What were your key interests and concerns? 4. What, if anything, are you upset about? 5. What was your goal in the conversation? 6. What made it difficult?
Effective Communication: Four Skills
Inquiry:
Asking questions to learn information Summarizing what you think they said Of their view or feelings (without agreeing, per se) Explaining your point of view
Paraphrasing:
Acknowledgement:
Advocacy:
Exercise: Your Personal Case
Review the dialogue and label it:
A beside dialogue that is Advocacy I beside Inquiry P beside Paraphrasing Ack beside Acknowledgement
Having reviewed your dialogue, what do you notice?
Words to be Cautious With
But vs And I understand how you feel vs I imagine you feel (etc.)
Stages of Conflict
(or response to bad news)
1. Denial
I cant believe this is happening Blaming others and/or self
1. Anger
1. Bargaining
Can begin working out a solution Implementation and closure
1. Acceptance
Adapted from the Kbler-Ross Model: Five Stages of Grief
Managing Differing Views
Differing Perceptions
Some Useful Assumptions
I may not have all the relevant information There may be more than one right answer If they see it differently, there must be a logical explanation Theyre probably not stupid, crazy, or evil Its in my interest to be curious:
If I want to change their mind, I need to know what theyre thinking
Understanding without agreeing is still valuable
Explore Each Others Reasoning
Use the Ladder of Inference
SHARE
From Argyris & Schon
My Conclusions
ASK
Their Conclusions
SHARE
My Interpretations
ASK
Their Interpretations
SHARE
Data I noticed
ASK
Data they noticed
DATA POOL
Differing Perceptions
How to Discuss
Acknowledge:
That you may be missing info That there may be more than one valid conclusion
Signal your desire to understand, even though you may still not agree later Ask what data they see, discuss their interpretation of it Share the data you see, discuss your interpretation of it Be open to changing your view
Dealing with Difficult Negotiators
Dealing with Difficult Negotiators
Typical Choices
Play their game Give in Walk
Dealing with Difficult Negotiators
A General Approach
Regain your balance:
Pause Ask a question Take a break (10 minutes, a day, a week) Why might they be acting this way? Cause/Purpose? How might I be contributing? What might an observer say about whats happening?
Diagnose:
Act purposefully with the end goal in mind
Dealing with Difficult Negotiators
A Hierarchy of Strategies
Just play your game:
Use same element differently, or move to another element Reframe to interests, options, benchmarks
(Name the game) and negotiate the process Add or change players Walk to your BATNA; consider leaving door open
Dealing with Others Strong Feelings: Empathy
Inquire about their feelings Acknowledge their emotions (without necessarily agreeing)
E.g. It sounds like youre disappointed, and maybe angry too.
Dealing With Others Strong Feelings
Allowing them to vent may be enough Acknowledgement goes a long way:
It diffuses strong feelings It meets their interest in being heard You can demonstrate understanding and still disagree with their feelings or their viewpoint
Empathy with feelings is not agreement:
Discussing feelings productively builds a strong working relationship
Best Practices for Project Professionals
Best Practices: Process
Build in regular scope checks and health checks throughout the project Hold a project kick off event that clarifies the roles and responsibilities, AND includes informal social time Take joint responsibility for monitoring scope Agree to joint escalation protocols (use form) Establish methods for managing conflict (e.g. mediation, arbitration)
Best Practices: Process
In the Project Management Framework, define roles, frequency, and who is on different governance bodies Recognize that circumstances will change be prepared to adapt Incorporate the use of the 8-Element Negotiation Preparation in project documentation and start-up processes
Best Practices: Relationship
Include time and budget for relationship building and milestone celebration
Bring people together at key points (e.g. big decisions), or when a new team member has joined.
Do things to build the relationship that are unconnected to the substance of the project Position yourself as a collaborative partner Remember that your identity/reputation and theirs are both implicated Take responsibility for building a team dynamic among all three partners in the project
Best Practices: Relationship (contd)
Remember that the business sees IT and Enterprise Ops as one GTO team serving them (as client) Put the challenge of managing the relationship on the table as a shared task Think long term Walk your talk Identify and be sensitive to external influences that may affect team member performance
Best Practices: Relationship (contd)
Be clear on who the key parties are Take the time to really understand the goals of team members
Best Practices: Commitment
Include conflict management protocols in the agreement (e.g. escalation, mediation, etc) Assume you will have to renegotiate certain commitments, based on new information
Build in processes for managing broken commitments, requests for more resources, scope creep, etc.
To maximize follow-through, secure executive buy-in Incorporate governance considerations into the project management framework. Recognize that there are constant negotiations and renegotiations
Best Practices: Commitment
Consider your authority: who the players and decisionmakers are Consider writing out the intention behind complex deal terms
Best Practices: Alternatives
Always know and develop your BATNA Have a BATNA buddy
Someone to encourage you and to brainstorm with
Be sure the whole team understands the BATNA Your BATNA must be viable before you choose to exercise it
In addition, be sure to have organizational permission to walk to your BATNA
Use PAC (Project Action Committee) as a vehicle for soliciting help and key decisions
Maximizing The Value Going Forward
Immediate next steps
Identify new actions you want to implement Identify at least one situation within the next week where you will use that new skill or idea Check in with your learning partner every 2-4 weeks Share successes and challenges, coach each other
Select a Learning Partner
Electronic version of preparation tool Tips via email
Arm Exercise
Pair Up Objective:
Get as much money for yourself as possible No talking You earn $1 Million each time their hand touches the table (or plane of the table) 10 second time limit
Rules:
Golden Nugget Game
Get into small groups Objective:
Get as many nuggets for yourself as possible No talking You can grab all the nuggets you can get at the beginning of each round If any nuggets are left at the end of a round, they will double, but: There will never be more than the initial amount of nuggets No punching, eye gouging, etc.
Rules:
