# Presentation: 188297

## Interest Based Negotiation

- Principled Negotiation for Moving Forward

## Overview

- Why interest-based negotiation (IBN)?
- Five principles of IBN
- Separate the people and the problem
- Focus on interests
- Create options for mutual gain
- Know your alternatives (BATNA)
- Determine objective criteria
- Applying IBN

## Why is this Important?

- Conflict is everywhere
- Increasing knowledge and skills in negotiation can save time and money
- Teams who work well together are more productive

## Conflict

- Happens in the interaction of interdependent people
- Who perceive incompatible goals
- And experience interference from the other in reaching those goals

## Conflict is like chaos

- It is complex – there are many parts and they way they evolve and impact each other is unpredictable
- Conflict is dynamic – change is the only constant
- People can feel out of control in conflict

## Understanding Conflict

- There is an order to conflict – the way that we identify it and respond to it
- As we understand conflict better, we begin to see patterns emerge
- The more we understand individuals in conflict, the better we are able to respond thoughtfully

**Notes:**
So this presentation is an opportunity to gain more knowledge about conflict and more tools to understand the people in conflict

## Understanding People in Conflict

- Thomas-Killman Conflict Mode Instrument
- Compete
- Accommodate
- Avoid
- Compromise
- Collaborate

## Compete

- Accommodate

- Avoid

- Compromise

- Collaborate

## Interest-Based Negotiation

- A more effective and more lasting way to resolve conflict

## Slide 10

## Slide 11

## Separating People and Problem

- Negotiators have the ability to separate the substantive problem and their relationship with others
- People & problems get entangled by:
- Perceptions
- Assumptions
- Emotions
- Communication

## Perceptions and Assumptions

- Place yourself in their shoes
- Do not interpret their motives by your fears
- Discuss the perceptions

- I

- You

- It

**Notes:**
Perceptions:  Remember that conflict happens in large part because of perceptions and the assumptions we make about ourselves, others and the substance of the problem.  putting yourself in another’s shoes (but don’t assume, check it out)—easy to say, sometimes hard to do.  What are we talking about here?  We are really talking about cognitive empathy—understanding how the other side thinks and feels about things.  Why do you need to be able to do this?  Because the reality that you need to deal with in a negotiation is not necessarily objective reality—whatever that is.  The course of the negotiation is going to be determined by how you deal with reality as each side perceives it.  

## Emotions

- Recognize they exist and they contribute to conflict
- Acknowledge them and allow for time to express– listening to emotion gives you clues about what is important to others
- Do not react to them

**Notes:**
Emotions are what makes conflict so hard.  Especially in the work place, we don’t know how much to acknowledge emotion and what to do with our own and those of others.

## Communication

- Listen to understand
- Frame your message
- Consider delivery mechanism

**Notes:**
Talk about both communication skills and communication technology.  Can also refer to cross culture communication and it’s effect.

## Slide 16

## Positions

- Positions are “what you want”
- They are your pre-determined goals
- They are often based on power and/or rights
- The goal in a positional negotiation is to persuade
- They are win-lose

## Interests

- If positions are “what you want”, interests are ”why do you want them?”
- They are your hopes, fears, concerns and priorities
- There are three types
- Substantive
- Procedural
- Psychological

## Focus on Interests

- Positions
- Solutions to problems
- Specific & definite
- Basis for argument
- Require justification
- End discussion

- Interests
- Why a particular solution is preferred
- Reasons underlying positions
- Require explanation not justification
- Start discussion

## Why Focus on Interests?

- Interests define the problem
- Interests allow for a variety of possible solutions
- Interests allow for a solution that may not involve compromise
- Interests help us evaluate a possible solution
- Focusing on interests provides increased understanding between people in conflict

## Interests

- Position

- Position

## Slide 22

## Interests Lead to Options

- Examining and evaluating the interests highlights areas of mutual gain
- How do participants prioritize their interests?
- How do they fit together?

## Options for Mutual Gain

- There is always more than one option
- Think outside the box
- Expand the pie

## Options for Mutual Gain

- Brainstorm possible solutions together
- Consider options for joint benefit
- Create what neither of you could do on your own
- Look for possible trade-offs that can turn potential into reality

## Overcoming Barriers to Developing Mutual Options

- Premature judgment
- Searching for the SINGLE answer
- Assuming a “fixed pie”
- Solving their problem is THEIR problem

**Notes:**
Can talk a little about distribution vs. integration

## Slide 27

## Best Alternative to  Negotiated Agreement

- What will you do if you are unable to reach agreement in the negotiation?
- These alternatives are outside the negotiation and are typically implemented without the buy in of the other.

## Identify and Use your BATNA

-  Know your BATNA
- Focus on what you want to achieve and the different ways to accomplish this
-  Strengthen your BATNA
- Construct your BATNA to be more achievable, probable, or satisfying more of your interests
- Improves your confidence during the negotiation
-  Consider other side’s BATNA
- Make their BATNA less attractive to them

## Options and BATNA

**Note the difference**

_**Options**_
**“****Inside” the negotiation**
**Created with counterpart**
**Brainstorming session**
**Potential solution(s)**
**BOTH you and counterpart receive benefit**

_**BATNA**_
**“****Outside” the negotiation**
**Fall back position if   negotiation fails**
**Can be implemented unilaterally**

## Slide 31

## Objective Criteria

- “Others in the industry do....” (What is customary)
- “The last time this happened we....”  (Precedent)
- “The standard contract says...”  (Law)
- “If you were me would you....?”  (Reciprocity)

## The Process of Negotiation

- Set the Stage
- Gather Information – explore interests
- Frame and prioritize issues
- Generate and Evaluate Options
- Finalize Agreement

## Prepare to Negotiate

- Know your interests and anticipate those of others
- Assess your relationships and it’s impact on the negotiation.
- Think about (without settling on) possible options for mutual gain
- Determine your BATNA
- Understand your standards of fairness and anticipate others’

## Culturally Competent Dispute Resolution

**Cultural Considerations in Negotiation**

## Cross Cultural Training in the Past

- Cookbook approach
- Recipes perpetuate stereotypes
- Continues narrow definition of culture as ethnic
- Focus is on “those” people
- Understanding and skills remain underdeveloped and can be counterproductive

## Evolution of Negotiation

- Has been historically culture neutral
- Developed from the perspective of one culture without accounting for differences or ambiguity

## Definition of Culture

- Way of life that includes values, beliefs and behaviors
- Passed down from one generation to another
- It is learned

## The Iceberg Theory of Culture

**Notes:**
None of the visible elements can ever make real sense without understanding the drivers behind them  So, when thinking about culture, the bottom side of the iceberg will include things such as religious beliefs, worldviews, rules of relationships, approach to the family, motivations, tolerance for change, attitudes to rules, communication styles, modes of thinking, comfort with risk, the difference between public and private, gender differences and more.

## Dimensions of Culture

- Core Dimensions – aspects that are the most personal and virtually unchangeable (ethnicity, gender)
- Internal  Dimensions – Aspects that apply through our development (language, family constellation)
- Peripheral Dimensions – Aspects that apply through choice (education, marital status)
- External Factors – Aspects from our environments (community, politics)

## Generalizations and  Stereotypes

- Generalization
- Never applies to everyone in every situation
- Only a first “guess”
- Discard when no longer useful

- Stereotype
- Applies to everyone in every situation
- No exceptions
- Retained even when no longer accurate or useful

## Primary and Secondary Cultures

- Primary culture is your individual culture
- Secondary is one within which you live/work
- Each organization has a set of assumptions, practices, beliefs, and values.
- We bring our primary cultures into the secondary culture
-  A health organizational culture will allow for members to manage primary cultural differences

## Culture and Conflict

- Culture affects negotiations
- The way we identify a conflict
- The way we respond to conflict
- The outcome we desire in negotiation

## Cultural Continuums

- To Do
- Earned status
- Achievement
- Individual Action
- Equality
- Immediate Family
- Self Reliance
- Independence
- Competition
- Guilt
- Future
- Class Mobility

- To Be
- Ascribed Status
- Affiliations
- Stability
- Inequality
- Extended Family
- Rely on others
- Interdependence
- Cooperation
- Shame
- Past/Heritage

## Cultural Considerations in Negotiation

- Direct and in-direct communication and conflict resolution
- Saving face and solving the problem
- Linear and circular thinking and communicating

## What can you do?

- Know yourself in conflict
- Work to understand individuals as unique cultural beings
- Make an effort to understand the interests of others
- Remember that negotiation is a constant process of introspection and change

## Thank You

- Elizabeth Z. Waetzig, JD
- Change Matrix, LLC
- 485 Maylin St.
- Pasadena, CA 91105
- 626-696-3227
- ewaetzig@changematrix.org