This is a one-day negotiation training that I recently presented to Qwest Communications in Denver, over a two-day period (50 people is the maximum number that exercise-based negotiation training can be effective)
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Negotiation And The Anatomy Of Conflict
1. Negotiation and the Anatomy of Conflict with a word on gender and negotiation and negotiation ethics May 11-12, 2009 Victoria Pynchon, J.D., LL.M ADR Services, Inc. Century City, California
15. Conflict is a Perceived divergence of interests or the belief that the current aspirations of the parties cannot be simultaneously met
16. Relative deprivation Injurious Event Perceptions Self interest/desire Other interest/desire Conflict’s Source Resources Values Dispute = Immediate Manifestation of Conflict Naming Blaming Claiming Tactics Yielding Avoiding Contending Problem Solving Tit for Tat Start nice Be Provokable Be Forgiving
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21. Tactics Malcolm Gladwell, Outliers Yielding/Avoiding Negative for yielder Nothing changes for other in a blind approach for landing through clouds where the first officer is convinced that the plane is heading against solid mountain rock all he says is “I am not sure if we have established our gliding path with necessary precision”.
42. confirmation bias we search for and interpret information in a way that confirms our preconceptions
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44. so how can we reach a mutually beneficial and durable agreement? By ascertaining their interests, preferences, priorities, needs, desires, constraints, strengths, and weaknesses, as well as our own
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46. Negotiating Women May 11-12, 2009 Victoria Pynchon, J.D., LL.M ADR Services, Inc. Century City, California
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51. Distributive and Interest Based Bargaining May 11-12, 2009 Victoria Pynchon, J.D., LL.M ADR Services, Inc. Century City, California
54. Book Sale Exercise Zone of Potential Agreement (“ZOPA”) SELLER’S WALK AWAY POSITION $4,500 BUYER’S WALK AWAY POSITION $5,000 $0 $7,000
55. Why We Don’t Enjoy Negotiating Well, he never done this before, but seein' as it's special circumstances and all, he says I can knock one hunnert off that TruCoat.
63. ANCHORING The party making the first reasonable offer should prevail over his bargaining partner who must respond in the range set by that party.
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68. Negotiate from Strength "When others sense your willingness to walk away, your hand is strengthened. Sometimes you are better off not getting to yes.“ Robert Rubin, Chairman of Citigroup Executive Committee, former Secretary of the Treasury
70. The Cash Register Exercise & The Persuasion Exercise Distributive vs. Integrative Bargaining Dividing Fisher and Ury’s Famous Orange Distributive Solution Interest Based Solution
87. “ They won’t use our form!” “They say ‘yes’ but they mean ‘no’.” “They don’t do what they say they will” “They don’t do their homework” “They don’t think of the big picture” “They don’t plan ahead” “It’s all or nothing” “They don’t use their discretion” “They’re not decisive” “They blind-side me” “They act like they’re playing for the other team” “They won’t close the deal”
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92. Don’t say “yes yes yes” when what you really mean is “no no no”
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97. Name Where Focus Moves Tactics “ at the table” People, process Improved communication, build trust, counter hardball ploys, bridge interests Deal design “ on the drawing board” Value, substance, outcomes Invent and structure agreements to create greater value, better meet objectives, are more sustainable Set Up “ away from the table” Architecture Ensure most favorable scope (right parties, interests, no-deal options, sequence
98. Party Interests: Apparent Interests: Hidden Sequence Customer Price, terms, external events, history, current corporate events, public statements internal goals, pressures, priorities, fears Sales, business representatives, legal, management Qwest Price, terms, competition, history, current corporate goals, concerns Internal goals, pressures, priorities, fears Sales, CD&S, Offer Management, Regulatory, Legal, etc. Competitors Price, terms, etc. Same as above
99. Scope Sequence Process Interests Goals Type of deal: procurement, sale, service Product, service, price, terms, parties, approval internal and external, press Aligning interests, dove-tailing differences, problem solving, distributive/integrative strategy/tactics Qwes t: Profit, growth, reputation, limitation of liability Right deal at right time with right parties at right price Parties to deal : Qwest, customer, suppliers Customer/Provider: profit, growth, reputation, limitation of liability Moves Qwest in desired corporate direction; forwards interests of stakeholders Non-parties: Government, shareholders, public, competition Avoids potential liabilities, reputational damages
100. Apparent/Ascertainable Interests Hidden Interests/Constraints Price, terms, timing Corporate Relation to other goals, plans, concerns, priorities, preferences History, orientation to the future, threats to survival, profitability, stock price, mergers (planned or in process) Personal: financial, power, reputation, fears, constraints, priorities People whose interests are at stake if deal goes south Third parties : stock market, analysts, bankers, government, customers, shareholders, competitors, adversaries, allies