Short Negotiation Guide Based On Harvard Methodology

The
agenda
! NEGOTIATION STYLES
! HARVARD METHODOLOGY
! The Six Principles of coopera?ve neogo?a?on (Harvard Methodology)
! Main concepts
! Keys to prepare for nego?a?on considering each of them
! The Stages
! Lets experience it!: the Ugly Orange Case Study
Guadalupe de la Mata

1
www.innova1onforsocialchange.org
Nego1a1on Styles
HIGH COLLABORATE
ACCOMODATE Problem solved creatively, aiming for win-win
Characteristics:
Build friendly relationship
Search for common interests
Characteristics:
Problem-solving behaviours
Promote harmony
Recognising both parties’ needs
Avoid substantive differences
Synergistic solutions
Give into pressure to save relationship
COMPROMISE Win-win becomes the main purpose of the
CONCERN FOR RELATIONSHIP
Place relationship above fairness of negotiator

the outcomes Split the difference
Characteristics:
Meeting half way
AVOID Look for trade offs DEFEAT
Take whatever you can get/Inaction Accept half-way measures Be a winner at any cost/Competitive
Characteristics: Aims to reduce conflict rather than problem solve Characteristics:
Feeling of powerlessness synergistically
Win-Lose competition
Indifference to the result
Pressure/Intimidation
Resignation, surrender
Adversarial relationships
Take what the other party is willing to
Defeating the other becomes a goal for the
concede
negotiator
Withdraw & remove = behaviour of
negotiator
CONCERN FOR SUBSTANCE

LOW HIGH
Source: Rollin & Christine Glaser

Harvard Nego?a?on Project
•  Began in 1983
•  In conjunc1on with
MIT and TuCs
•  Nego1a1on art and a

science

GeDng to Yes Authors

Roger Fisher
Bruce Patton
William Ury
GeOng to Yes: 6 PRINCIPLES
What do you really care about?

The needs, concerns, goals, hopes and fears that
motivate the parties
INTERESTS:
Ideas about how the parties might meet
Promises made to build or their interests together.
finalise agreement.
COMMITMENT OPTIONS
Basic building
blocks of negotiation
How do you deal with Steps each party could take to satisfy
people issues? COMUNICATION their own interests outside the current
and ALTERNATIVES
RELATIONSHIP negotiation (BATNA)

Prepare to communicate efficiently
during the nego1a1on
CRITERIA
How can I persuade them they are being fairly treated?

Criteria that the parties use to legitimise their perspectives.
5
INTERESTS
INTERESTS: OPTIONS ALTERNATIVES CRITERIA COMUNICATION RELATIONSHIP COMMITMENTS
Star?ng point
•  Don’t Bargain Over Posi1ons
–  Arguing over posi1ons produces unwise outcomes
–  Arguing over posi1ons is inefficient
–  Arguing over posi1ons endangers an ongoing rela1onship
–  When there are many par1es, posi1onal bargaining is even
worse
–  Being nice is no answer
–  There is an alterna1ve…

7
1.  Interests
The purpose of a negotiation is to satisfy your interest and the other party´s
interests

. POSITIONS
• “WHAT YOU SAY YOU
WANT” (DEMANDS, TERMS
AND CONDITIONS, etc.)
• A posi1on is a way to sa1sfy
interest, a mean to an end.
INTERESTS
• UNDERLYING
MOTIVATIONS, NEEDS AND
CONCERNS, FEARS AND
ASPIRATIONS
• The WHY we want
something
Nego1ate the WHY….not the WHAT


8
Cooperative negotiation: Negotiating is not Compromising
! The purpose of a nego1a1on is to

sa1sfy your interest and the other
par1es interests
! Joint problem solving: Both
par1es share the problem of trying to
find an agreement that both can live
with
! Finding a good agreement, that
does not leave poten1al joint gains
on the table

1.  Interests prepara?on
UNDERTANDING Your interests:
• Why do I want what I want? Am I sure?

• My needs, concerns, goals, hopes and fears
• Have I assigned priori1es to what is really important for me?
• Prepare yourself to communicate your interests clearly
UNDERSTANDING Their interests
• Make sure you understand the interests of the other side
• Ask why? What is the purpose?
• Their needs, concerns, goals, hopes and fears
• Focus on interest throughout the nego1a1on: please, help me
to understand your main concerns?
• Put yourself on the other persons shoes, see what drives them

10
OPTIONS
INTERESTS: OPTIONS ALTERNATIVES CRITERIA RELATIONSHIP COMMITMENTS
2. Op?ons
The range of possibi?es among which par?es can reach

an agreement

! Create op1ons to sa1sfy interests.
! An agreement is beeer if it incorporates many op1ons
! Brainstorming to come up with ideas and op1ons that
can meet the interests of both sides
! Do not evaluate them during brainstorming

12
2. Op?ons prepara?on
! Find ways to work together to maximize common benefits

! Broaden the op1ons on the table, rather than look for a
single answer.
! BE CREATIVE!
! Search for mutual gains.
! Invent ways to make their decision easy.

13
AVOID ENCOURAGE
• Premature judgment • Separate inven1ng

• Searching for the single from deciding
answer • (brainstorming)
• The assump1on of a • Consider
fixed pie brainstorming with
• Thinking that ‘solving the other side
their problem is their
problem’
14
Look for mutual gain
•  Iden1fy shared interests

•  Dovetail different interests
•  Any difference in interests?
•  Different beliefs?
•  Different values placed on 1me?
•  Different forecasts?
•  Differences in aversion to risk?
•  Ask for their preferences
15
ALTERNATIVES

3. Alterna?ves
What I am going to do if we don't reach an agreement?
! Deals I can take outside of the possible agreement

! Look at all your alternatives and select the BEST
! Know your BATNA

You are going to negotiate with more
Best CONFIDENCE if you know what you
Alternative can do if the negotiation fails
To
a
Negotiated
Agreement
17
3. Alterna?ves Prepara?on
YOUR BATNA THEIR BATNA

• Before going into the nego1a1on explore • Think about their BATNA: What about
other possibili1es outside of it THEIR alterna1ves if you do not reach an
• Once you have all poten1al alterna1ves, agreement?
select one that is the Best Alterna1ve • Prepare arguments to their BATNA: why a
(BATNA) deal will be beeer for them than their
• What can you do to improve your BATNA? BATNA

18
3. Alterna?ves
Another Example:
http://www.youtube.com/watch?v=Ghk9jM80g7g&feature=related
Minute 3.28
Notice the resistance to think about their BATNA
How to help an account team to get ready for a sale?
Know your walkaway alternative
Would you accept any deal whatsoever?

See the results of having prepared BATNA
VIDEO: minute 0:28 to
http://www.youtube.com/watch?v=6UEdEaiVnPo&feature=related

19
CRITERIA
INTERESTS: OPTIONS ALTERNATIVES CRITERIA RELATIONSHIP COMPROMISE
4. Criteria
When interests are directly opposed, the par1es should use

objec1ve criteria to resolve their differences.
.

Allowing such differences to spark a baele of wills will
destroy rela?onships, is inefficient, and is not likely to
produce wise agreements.

Decisions based on reasonable standards makes it easier for
the par1es to agree and preserve their good rela1onship

21
4. Criteria

! Ex. You are nego1a1ng your rent with the landlord and
cannot reach an agreement. You are trying to apply a
win-‐win solu1on but:
! You want a low price
! The landword wants a high price
! Bargaining is not the answer
! Proposal: nego1ate on the basis of objec1ve criteria,
independent fron the par1es will

22
4. Criteria

! What are the standards to convince each other that what we propose is
fair?
! To resolve conflic1ng interest use independent standards: (Scientific
findings, professional standards, or legal precedent,market value,
precedent or industry prac1ce)
! Is an argument based on objec1ve criteria, independent of the par1es will.
! Standars should be relevant and widely accepted
! The parties must agree which criteria is best for their situation.
Criteria should be both legitimate and practical
! There are more than one objec1ve criteria for an agreement


23
4. Criteria: 3 key points to keep in mind
First each issue should be

each party must keep an Don´t give in to pressure,
approached as a shared
open mind. threats, or bribes.
search for objec1ve criteria.
• Ask for the reasoning •  They must be reasonable, • When the other party
behind the other party's and be willing to stubbornly refuses to be
sugges1ons. reconsider their posi1ons reasonable, the first party
•  Using the other par1es' when there is reason to. may shiC the discussion
reasoning to support your from a search for
own posi1on can be a substan1ve criteria to a
powerful way to nego1ate. search for procedural
criteria.

24
4. Criteria: things to keep in mind

• How will they explain the agrement to other par1es?

• Prepare to help them expain the result
• Think of impar1al processes to find an objec1ve criteria (obtaining an expert
opinion, arbitra1on…)


25
INTERESTS: OPTIONS ALTERNATIVES CRITERIA COMUNICATION RELATIONSHIP COMPROMISE
4. Criteria Prepara?on
! ASK YOURSELF: What are the standards to convince each other that what
we propose is fair?
! To resolve conflic1ng interest use independent standards:
! Find a range of objec1ve criteria to persuade the other party (and yourself)
that what you propose is fair and makes sense (market value, precedent or
industry prac1ce)
! Standars should be relevant and widely accepted
! There are more than one objec1ve criteria for an agreement
! Prepare to help them expain the result
! Think of impar1al processes to find an objec1ve criteria (obtaining an
expert opinion, arbitra1on…)

26

4. Criteria Prepara?on (summary)
Frame each issue as a joint search for objec1ve criteria
Ask “What’s your theory?”
Reason and be open to reason
Never yield to pressure

27
RELATIONSHIP and
COMUNICATION

6. Rela?onship: Separate the People from the Problem

§ “A basic fact about negotiation, easy to forget in corporate
and international business transactions, is that you are
dealing not with abstract representatives of the ‘other side,’
but with human beings”. Getting to Yes, page 18-19
§ Negotiations always have two components.

§ First, you have the substance of the negotiation- in
essence, what you’re trying to resolve.
§ As importantly, negotiations also address the long term
relationship of the person with whom you are negotiating.

29
6. Rela?onship: Separate the People from the Problem

§ Ex., a salesperson wants not only to make the sale but to keep the
customer for a long period of time.
§ The reality is that, in most cases, it’s more important to maintain

the long term relationship than to “win” the negotiation
.
§ The ‘people’ and the ‘problem’ often become entangled to the
point where we are treating them as one.

30
6. Rela?onship:
§ To find your way through the jungle

of people problems, it is useful to
think in terms of three basic
categories:
§ Perception,
§ Emotion, and
§ Communication.

31
First source of “people problems”: Percep1ons
•  As useful as looking for objec1ve reality can be, it is ul1mately the reality
as each side sees it that cons1tutes the problem in a nego1a1on and
opens the way to a solu1on.
•  Put yourself in their shoes. How you see the world depends on where you
sit. People tend to see what they want to see. Out of a mass of detailed
informa1on, they tend to pick out and focus on those facts that confirm
their prior percep1ons and to disregard or misinterpret those that call
their percep1ons into ques1on.
•  Each side in a nego1a1on may see only the merits of its case, and only the
faults of the other side's.

32
First source of “people problems”: Percep1ons
The first “people problem” are differences on percep1on among the par1es.
Since most conflicts are based in differing interpreta1ons of the facts, it is crucial for both sides to understand
the other's viewpoint.
The par1es should try to put themselves in the other's place.
The par1es should not simply assume that their worst fears will become the ac1ons of the other party.
Nor should one side blame the other for the problem.
Each side should try to make proposals which would be appealing to the other side. The more that the par1es
are involved in the process, the more likely they are to be involved in and to support the outcome.

33
Percep1ons
•  The ability to see the situa1on as the other side sees it, as difficult as it
may be, is one of the most important skills a nego1ator can possess.
•  It is not enough to know that they see things differently.
•  If you want to influence them, you also need to understand
empathe?cally the power of their point of view and to feel the
emo?onal force with which they believe in it.
•  It is not enough to study them like beetles under a microscope; you need
to know what it feels like to be a beetle. To accomplish this task you
should be prepared to withhold judgment for a while as you "try on" their
views. They may well believe that their views are "right" as strongly as you
believe yours are. You may see on the table a glass half full of cool water .

34
Second source of people problems: Emo1ons
Nego1a1on can be a frustra1ng process.
People oCen react with fear or anger when they feel that their interests are threatened.
The first step in dealing with emo1ons is to acknowledge them, and to try to understand
their source.
The par1es must acknowledge the fact that certain emo1ons are present, even when they
don't see those feelings as reasonable.
Dismissing another's feelings as unreasonable is likely to provoke an even more intense
emo1onal response. The par1es must allow the other side to express their emo1ons.
They must not react emo1onally to emo1onal outbursts. Symbolic gestures such as
apologies or an expression of sympathy can help to defuse strong emo1ons

35
Third source of people problems: Comunica?on
¿Am I ready to listen and talk in an efficient way?
Both side communica1on

ACTIVE LISTENING:
In a respec1ve way, clarifying ambigui1es and making
sure you have understand.

SPEAK WITH INTENT:
Clearly and with the objec1ve of making yourself understood
and with a purpose linked to your interests.


36
Preparare for good Comunica?on
SPEAK WITH INTENT ACTIVE LISTENING
• Ques1on my supposions and • Make sure you understand

iden1fy what I should be what they say
listening to • Refrasing
• How can I beeer explain my • Prepare to deal with difficult
perspec1ve? emo1ons: be ready to give
• How can they understand it? the other side the
• Find other ways to refrase it opportunity to let off steam
when needed, listen and be
pa1ent

37

Listening is the most powerful nego1a1ng
skill
•  It begins with effec1ve communica1on…
understanding your preferred method and learning
the method of the other party.
•  Communicate with them in a way that will be most
effec4ve with their style
•  This helps to eliminate the possibility of
misunderstanding, as we communicate in many
ways
38
Listening is your most powerful nego1a1ng tool

But before you can listen, you
have to be skilled at asking
questions:
Three critical questioning skills

1.  Know where your questions
are going
2.  Ask for permission to ask
questions
3.  State why you want to ask
questions

39
Ac1ve Listening Techniques (1)

Centre for Conflict Resolution, Cape Town, South Africa, 1999 40



Summary Rela?onship
§ Disentangle the people and the problem

§ Ask yourself: ¿Am I ready to deal with the rela1onship?
§ Use people techniques for people problems
§ Acknowledge your emo1ons and theirs without blame
§ Listen ac1vely
§ Put yourself in their shoes
§ Turn a face-‐to face confronta1on into a side by side problem solving
§ Your are both siDng at the same side of the table
dealing with the problem jointly
§ Be uncondi1onally construc1ve

44
COMMITMENT
6. Commitments
Think carefully about the kind of commitments you should be
prepared to make.
Are you capable of honoring them?
How broad should commitments be?
When will each party be expected to make good on their
promises

46
7. Commitments prepara?on
One way to build trust is to create a commitment structure that can
be implemented in stages.
Par1es may be more willing to make a deal with an opponent when
there is an opportunity to demonstrate that each side is honoring
their commitments along the way.
Once trust is broken, how can par1es recover?
Gestures are one way through which a party who has lost integrity
with another party due to past bad-‐faith ac1ons may begin to
compensate for earlier grievances.

47
APPLYING THE MODEL
Applying the model
Focus on VALUE CREATION
COMBINING THE RESOURCES

TO SATISFY MUTUAL NEEDS
CLARIFYING INTEREST
COMUNICATION AND RELATIONSHIP

49
MEASURING SUCCESS
BATNA
Sa?sfy interests
The BEST of various op?ons
The results are considered

legi?mate
The compromises are clear

and opera?ve
Comunica?on is efec?ve
Improves the working

Guadalupe de la Mata rela?onship 50
ANNEXES
•  Videos:
•  GeDng to YES Video (part 1 of 3)
–  hep://www.youtube.com/watch?
v=rYGJNh8wFRc&feature=relmfu
v=Cchpf7IK5nY&feature=relmfu
v=ILeXnpPZfrw&feature=relmfu
51
Stages in nego1a1on
The stages in the nego1a1on
•  It is important to understand that nego1a1on

is a process that begins before we sit down at
the table and does not end if we do not know
how to make the agreements reached
effec1ve.

53
Three stages can be dis?nguished in the
nego?a?on

PRE-‐ POST-‐
NEGOTIATION
NEGOTIATION NEGOTIATION

54
1. Pre-‐nego1a1on
Organisa1onal
Spa1al context Time context
context
• Where am I • How long am • Procedural
going to I going to rules.
nego1ate? nego1ate? Formal/
• How do I informal.
structure the • Agenda
1me of the • Interlocutors
nego1a1on? • Nego1a1on
team

55
1. Pre-‐nego1a1on-‐ Prepare
•  Research
•  LIST your objec1ves and their objec1ves
•  Those you INTEND to get
•  Those you MUST get

56
2. Nego1a1on
This stage includes the nego1a1on process in

the strict sense of the word:
• Interests
• Alterna1ves
• Opening the nego1a1on: Ini1al offer
• Proposals
• Claims and concessions
• Search for joint benefits
• Etc.

57
2. Nego1a1on
•  Listen carefully
•  Ask ques1ons
•  Clarify
•  Summarise
•  Don’t argue, interrupt or assume
...BUT

58
2. Nego?a?on-‐ Propose
•  Make proposals
•  State condi1ons
•  Express concerns
•  Search for common interests
•  Use posi1ve body language

59
2. Nego1a1on-‐ Bargain
•  Key words are IF and THEN
•  Start making concession:
–  Every concession should have a condi1on
(IF you … THEN I will … )
–  Conserve your concessions -‐ don’t give
everything away too soon
–  You don’t have to share every piece of
informa1on with the opposing side!
–  Don’t be afraid to say no
60
3. Post-‐nego1a1on
How do we formalize the agreements?
Adop1on of minutes, draCing of documents?
Public documents or private documents?
Signing off the agreements?
Interpreta1on of the agreements reached?
Resolu1on of conflicts with the interpreta1on or implementa1on of the agreements
reached?

61
3. Post Agreement-‐ Agree
•  Usually final concession :
“IF you do that, THEN we have a deal!”
•  Gain commitment
•  Record and agree results
•  Leave sa1sfied

62
3. Closing the nego?a?on
•  Evaluate the closing proposal, comparing it with the

BATNA
•  Conclusion phase
ü Reconsidera1on of the agreements reached
ü Prepara1on of documents
ü Discussion of the content of the documents
ü Corresponding reviews and modifica1ons
ü Final document showing the agreement

63
3. Closing the nego?a?on
•  Forming the commitment

ü Signing a private document
ü Eleva1ng it to public document status
ü Registra1on

64
7 Deadly Sins of Nego1a1ng
•  Pride -‐ Be prepared to compromise

•  Glueony -‐ Don’t bite off more than you can chew
•  Anger -‐ Handle objec1ons calmly
•  Covetousness -‐ Priori1se needs/wants
•  Envy -‐ Know compe1tors strengths & weaknesses… AND
your own
•  Sloth -‐ Do your homework
•  Lust -‐ Don’t look desperate to seele

65
An Uncondi1onally Construc1ve Strategy
Do only those things that are both good for the relationship and good for us
- whether or not they reciprocate
RATIONALITY Even if they are acting emotionally, balance emotions with reason
UNDERSTANDING Even if they misunderstand us, try to understand them
COMMUNICATION Even if they are not listening, consult them before deciding on matters that
affect them
RELIABILITY Even if they are trying to deceive us, neither trust them nor deceive them:
be reliable
NON-COERCIVE MODES OF Even if they are trying to coerce us, neither yield to that coercion nor try to
INFLUENCES coerce them, be open to persuasion and try to persuade them
ACCEPTANCE Even if they reject us and our concerns as unworthy of their consideration,
accept them as worthy of consideration, care about them and be open to
learning from them
www.innova1onforsocialchange.org "Getting Together"66
Fisher
42
Nego1a1on Check List
Good Practice Avoid
ü  Actively listen × Interrupting

ü  Question for clarification × Attacking
ü  Summarising × Blaming
ü  Test commitment × Talking too much
ü  Seeking & giving information × Sarcasm
ü  Encourage two way conversation × Threats
ü  State and plan your proposal – then summarise × Taking it personally
ü  Use the ‘if you ….then we’ll’ principle × Closed body language
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The

! The Six Principles of coopera?ve neogo?a?on (Harvard Methodology)

! Keys to prepare for nego?a?on considering each of them

! Lets experience it!: the Ugly Orange Case Study

Guadalupe de la Mata

Place relationship above fairness of negotiator

CONCERN FOR SUBSTANCE

Source: Rollin & Christine Glaser

• Began in 1983

• Nego1a1on art and a

What do you really care about?

How can I persuade them they are being fairly treated?

Guadalupe de la Mata

Guadalupe de la Mata

! The purpose of a nego1a1on is to

UNDERTANDING Your interests:

• Why do I want what I want? Am I sure?

UNDERSTANDING Their interests

Guadalupe de la Mata

The range of possibi?es among which par?es can reach

Guadalupe de la Mata

! Find ways to work together to maximize common beneﬁts

Guadalupe de la Mata

• Premature judgment • Separate inven1ng

Look for mutual gain

• Iden1fy shared interests

What I am going to do if we don't reach an agreement?

! Deals I can take outside of the possible agreement

YOUR BATNA THEIR BATNA

Guadalupe de la Mata

Notice the resistance to think about their BATNA

How to help an account team to get ready for a sale?

Know your walkaway alternative

Would you accept any deal whatsoever?

Guadalupe de la Mata

When interests are directly opposed, the par1es should use

Guadalupe de la Mata

Guadalupe de la Mata

Guadalupe de la Mata

4. Criteria: 3 key points to keep in mind

First each issue should be

Guadalupe de la Mata

4. Criteria: things to keep in mind

Guadalupe de la Mata

4. Criteria Prepara?on (summary)

Frame each issue as a joint search for objec1ve criteria

Ask “What’s your theory?”

Reason and be open to reason

Never yield to pressure

Guadalupe de la Mata

6. Rela?onship: Separate the People from the Problem

§ Negotiations always have two components.

Guadalupe de la Mata

6. Rela?onship: Separate the People from the Problem

§ The reality is that, in most cases, it’s more important to maintain

Guadalupe de la Mata

§ To find your way through the jungle

Guadalupe de la Mata

Guadalupe de la Mata

Guadalupe de la Mata

Guadalupe de la Mata

Nego1a1on can be a frustra1ng process.

•  Began in 1983

•  Nego1a1on art and a

• Why do I want what I want? Am I sure?

• Premature judgment • Separate inven1ng

•  Iden1fy shared interests

§ Negotiations always have two components.

§ The reality is that, in most cases, it’s more important to maintain

§ To find your way through the jungle

• Ques1on my supposions and • Make sure you understand

§ Disentangle the people and the problem

•  It is important to understand that nego1a1on

•  Evaluate the closing proposal, comparing it with the

•  Forming the commitment

•  Pride -‐ Be prepared to compromise

ü  Actively listen × Interrupting