ADR_Waetzig

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					  Interest Based
    Negotiation
Principled Negotiation for Moving Forward




                                            2/19/2010
                     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



                                            2
      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




                                                   3
                  Conflict
Happens in the interaction of interdependent
 people
 Who perceive incompatible goals
 And experience interference from the other in
  reaching those goals




                                                  4
         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




                                                           5
      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




                                                    6
Understanding People in
        Conflict
 Thomas-Killman Conflict Mode Instrument

                Compete
             Accommodate
                 Avoid
              Compromise
              Collaborate




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Compete                Collaborate




          Compromise




 Avoid                 Accommodate




                                     8
         Interest-Based
           Negotiation
A more effective and more lasting way to resolve conflict




                                                    2/19/2010
 Separate the
                          Create options
 people from
                          for mutual gain
 the problem

                Develop
                your
                BATNA

Focus on                  Define
interests                 objective
not positions             criteria




                                            10
Separate the
people from the
problem




                  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




                                                             12
Perceptions and Assumptions
 Place yourself in their shoes
 Do not interpret their motives by your fears
 Discuss the perceptions

                  I




          You          It




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              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




                                                  14
             Communication
 Listen to understand
 Frame your message
 Consider delivery mechanism




                                15
 Separate the
 people from
 the problem




Focus on
interests not
positions




                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



                                                17
                     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




                                                            18
            Focus on Interests
Positions                 Interests

 Solutions to problems    Why a particular solution
                            is preferred
 Specific & definite
                           Reasons underlying
 Basis for argument        positions
 Require justification    Require explanation not
 End discussion            justification

                           Start discussion


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     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




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Position               Position




           Interests




                                  21
 Separate the
                     Create options
 people from
                     for mutual gain
 the problem




Focus on interests
not positions




                                       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?




                                                            23
     Options for Mutual Gain
 There is always more than one option
 Think outside the box
 Expand the pie




                                         24
      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




                                                              25
    Overcoming Barriers to
   Developing Mutual Options
 Premature judgment
 Searching for the SINGLE answer
 Assuming a “fixed pie”
 Solving their problem is THEIR problem




                                           26
 Separate the
                          Create options
 people from
                          for mutual gain
 the problem

                Develop
                your
                BATNA

Focus on
interests
not positions




                                            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.




                                                           28
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



                                                            29
             Options and BATNA
 Note the difference
    Options                        BATNA
    “Inside” the negotiation       “Outside” the negotiation
       Created with counterpart    Fall back position if
                                     negotiation fails
       Brainstorming session
                                    Can be implemented
       Potential solution(s)
                                     unilaterally
       BOTH you and
        counterpart receive
        benefit




                                                               30
 Separate the
                          Create options
 people from
                          for mutual gain
 the problem

                Develop
                your
                BATNA

Focus on                  Define
interests                 objective
not positions             criteria




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            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)




                                                      32
  The Process of Negotiation
 Set the Stage
 Gather Information – explore interests
 Frame and prioritize issues
 Generate and Evaluate Options
 Finalize Agreement




                                           33
         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’



                                                           34
Culturally Competent Dispute
          Resolution
     Cultural Considerations in Negotiation




                                              35
 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




                                                       36
     Evolution of Negotiation
 Has been historically culture neutral
 Developed from the perspective of one culture
  without accounting for differences or ambiguity




                                                    37
          Definition of Culture
 Way of life that includes values, beliefs and behaviors
 Passed down from one generation to another
 It is learned




                                                            38
The Iceberg Theory of Culture




                                39
         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)




                                                                 40
          Generalizations and
             Stereotypes
 Generalization                 Stereotype
   Never applies to everyone      Applies to everyone in
    in every situation              every situation
   Only a first “guess”           No exceptions
   Discard when no longer         Retained even when no
    useful                          longer accurate or useful




                                                                41
         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




                                                                               42
         Culture and Conflict
 Culture affects negotiations
   The way we identify a conflict
   The way we respond to conflict
   The outcome we desire in negotiation




                                           43
               Cultural Continuums
 To Do                    To Be
     Earned status            Ascribed Status
     Achievement              Affiliations
     Individual Action        Stability
     Equality                 Inequality
     Immediate Family         Extended Family
     Self Reliance            Rely on others
     Independence             Interdependence
     Competition              Cooperation
     Guilt                    Shame
     Future                   Past/Heritage
     Class Mobility




                                                  44
    Cultural Considerations in
           Negotiation
 Direct and in-direct communication and conflict
  resolution

 Saving face and solving the problem
 Linear and circular thinking and communicating




                                                    45
           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




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   Thank You
 Elizabeth Z. Waetzig, JD

   Change Matrix, LLC

      485 Maylin St.

   Pasadena, CA 91105

      626-696-3227

ewaetzig@changematrix.org




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