Negotiation 101

Report
Negotiation 101
Lisa M. Walke, MD
Yale University
Cynthia J. Brown, MD, MSPH
University of Alabama at Birmingham
Objectives
1. Recognize negotiation is a key component of
most personal and professional interactions.
2. Knowledge of the 5 most common
negotiation styles.
3. Understand personal negotiation styles, how
to utilize them effectively, and benefits of
mastering more than one style.
4. Practice negotiation
Defining Negotiation
An interactive communication process that may
take place whenever you want something from
someone else or they want something from you.
- Teenager wants the car keys
- Couple deciding where to go out to dinner
- Family deciding where to go for vacation
- You want to change your percent effort
Who appears more confident?
Importance of knowing your
bargaining style
“Everyone has his or her
own negotiating style, and
the worst thing you can do
is to adopt a negotiating
technique that does not feel
comfortable because
credibility, based on an
evident sincerity, is the
most important single asset
of a good negotiator.”
G. Richard Shell, JD
Bargaining Styles Assessment Tool
• Take 5 minutes to complete the bargaining
styles assessment tool
• Select 1 statement per pair that most reflects
your position, follow your 1st impression
• Record the letter (A, B, C, D or E) in the box to
the right of each pair of statements
• Tally all of your As, Bs, etc. in the score sheet
at the bottom of the 2nd page
Assessment Tool Scoring
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•
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A = Competing
B = Collaborating
C = Compromising
D = Avoiding
E = Accommodating
• Strong inclination to use that type of behavior when
negotiating
– Score ≥ 7 (Competing, Avoiding, Accommodating)
– Score ≥ 8 (Collaborating, Compromising)
• Weak Inclination to use that type of behavior
– Score ≤ 5 (Compromising)
– Score ≤ 4 (Collaborating)
– Score ≤ 3 (Competing, Avoiding, Accommodating)
Bargaining Styles
Classification
Also Known As
Description
Competing
Sportsman
Loves negotiating; Great at positioning &
gaining leverage
Collaborating
Problem Solver
Generates creative solutions; Great for
complex issues, if time is flexible
Compromising
Closer
Seeks quick, fair resolutions; Great for
straightforward issues or if time is limited
Avoiding
Diplomat
Tactful; Peacekeeper; Prefers harmony
Accommodating
Relationship Manager
Strives to maintain relationships; Seeks to
be helpful
Balance Concerns
• Perceived conflict over stakes & importance
of relationship b/w parties both high
• Ex: Acquisition, Parent-Child relationship
• Best Strategies
– Collaboration
– Compromise
Relationships
• Perceived conflict over stakes is low but
perceived importance of relationship b/w
parties is high
• Ex: Job offer, Research or Clinic team
• Best Strategies
– Accommodation
– Collaboration
– Compromise
Transactions
• Perceived conflict over stakes is high but
perceived importance of relationship b/w
parties is low
• Ex: House Sale, Political Election
• Best Strategies
– Competition
– Collaboration
– Compromise
Implied Coordination
• Perceived conflict over stakes & perceived
importance of relationship b/w parties are
both low
• Ex: Airplane seating
• Best Strategies
– Avoidance
– Accommodation
– Compromise
Four Stages of Negotiation
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•
•
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Preparation
Information Exchange
Bargaining
Commitment
Four Stages of Negotiation
• Preparation
– Assess situation, transaction or relationship
– Adjust style to situation
– Take other side’s point of view
– Determine goals
• Information Exchange
• Bargaining
• Commitment
Four Stages of Negotiation
• Preparation
• Information Exchange
– Build rapport
– Uncover underlying interests, issues and
perceptions
– Test expectations
• Bargaining
• Commitment
Four Stages of Negotiation
• Preparation
• Information Exchange
• Bargaining
– Opening
– Making concessions
• Commitment
Four Stages of Negotiation
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•
•
•
Preparation
Information Exchange
Bargaining
Commitment
– Do both sides have something to lose if they break
their promise?
BATNAs and ZOPAs
• Best Alternative to a Negotiated Agreement
(BATNA)
 Determines course of action if agreement not
reached within certain time frame.



prohibits negotiator from accepting unfavorable
agreement as it provides better option outside the
negotiation.
permits greater flexibility /allows room for innovation.
If have strong BATNA, have more power as possess
attractive alternative if acceptable agreement is not
achieved.
• Zone of Possible Agreement (ZOPA)
 Agreement acceptable to both parties
http://www.negotiationtraining.com.au/articles/next-best-option/
Leverage
• Whichever party thinks have least to lose from
‘no deal’ has most leverage and vice versa.
• Leverage based on perception as much as
reality.
• Leverage is comparative across the table.
– Do not compare your situation with ideal or
worst-case scenario; Compare with theirs.
• Leverage is dynamic, can change in an instant
as perceptions, conditions and players change.
Time to Negotiate!
• “There is no substitute for practice in negotiation. No
one ever got better at public speaking just by reading a
book and the same is true for bargaining. You must
learn from doing.”
– G. Richard Shell, JD
• Select a partner; decide who will be A & who will be B
• On the table are 2 piles of envelopes, select the
envelope with your letter
• Take 2 minutes to read your instruction sheet
• You have 8 minutes to complete the exercise
Let’s debrief
• What price did you agree upon for the car?
• Did the buyer/seller disclose their true motivation
for this purchase/sale?
• What bargaining styles did each of you use?
• Which style was most effective?
• What aspect of this negotiations exercise made
the greatest impression upon you?
Summary
Bargaining Styles
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A = Competing
B = Collaborating
C = Compromising
D = Avoiding
E = Accommodating
Four Stages of Negotiation
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Preparation
Information Exchange
Bargaining
Commitment

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