negotiation and conflict resolution - mars best practices
DESCRIPTION
All technology ventures eventually run into conflicts and disputes. Companies survive and thrive by managing and resolving these disagreements quickly and effectively. Join us and learn practical skills for successful negotiation, conflict management and dispute resolution. And find out how to recognize and respond effectively to different negotiation styles and strategies.TRANSCRIPT
11-12-21 1
Negotiation and Conflict Resolution
MaRS Discovery District Best Practices Series December 8, 2011
Presentation by
Michael Erdle, Co-Founder Practical Resolutions Inc.
Introduction
Introduction
v Negotiation
v Conflict Resolution
What is Negotiation?
v Negotiation is: v a process.
v a structured conversation.
v a means to an end (agreement about something).
v We do it all the time, without really thinking about it.
Basis for Negotiation
v Power
v Rights
v Interests
Escalation
Power
Power Strategies: • Take action unilaterally. • Win at all costs • Attack/Defend • Threaten • Coerce • Withdraw (Take the Ball and Go
Home) • Physical (or verbal) violence
Characteristics of Power: • Adversarial • “Win/Lose” at best • Usually “Lose/Lose” • Extremely expensive • Negative impact on future
relationships
Rights
Rights Strategies: • Contracts (guarantee the
minimum) • Policies, procedures, rules • Precedent • Past practice • Legal action • Third-party decisions
(e.g. arbitration)
Characteristics of Rights: • Adversarial • “Win/Lose” at best • Often “Lose/Lose” • Extremely expensive • Time-consuming • Impact on future relationships?
Interests
Interests Strategies: • Identify what’s really important • Dialogue about needs and wants • Honest sharing of information • Maximize results for all parties • Help everyone explore and
understand their own interests, and interests of other parties
• Needs an ongoing relationship
Characteristics of Interests: • “Win/win” process • Collaborative • Interdependent • Builds trust • Positive impact on future
relationship
Costs Go Up
Control Goes Up
Litigation
Arbitration Investigation/Fact Finding
Conciliation Mediation
Negotiation Problem Solving
Prevention
All out “War” Unilateral Action
Threats, Coercion Power
Rights
Interests
Power, Rights, Interests
The “Golden Rule”
De-escalation
Duty to Negotiate in Good Faith
v Obligation to respect the legitimate interests of other party and to deal promptly, honestly, fairly and reasonably with them. v Shelanu Inc. v. Print Three Franchising Corp. (Ontario Court of
Appeal)
v Implied in negotiation where there is an imbalance. v Wallace v. Grain Growers (Supreme Court of Canada)
Duty to Negotiate in Good Faith
Spectrum of contractual duties
Selfish Selfless
Unconscionability ! Good Faith Fiduciary Duty �
Duty to Negotiate in Good Faith
v Fiduciary: v Trustee v Corporate Director v Lawyer
v Good Faith: v Professional Code of Ethics v Contract v Employee/Employer
Negotiation Steps
v Distributing Value vs. Creating Value v Opportunistic v Problem-solving
v Identify Issues v What does each side want and need?
v Consider Interests v Common v Complementary v Conflicting
Effective Negotiation
v Interests vs. Positions
v “Needs” vs. “wants”
v “Separate the People from the Problem.”
v Soft on the person
v Hard on the problem
v Consider other Options
Effective Negotiation
v Seek Objective Alternatives
v Determine BATNA and WATNA
v Best Alternative to Negotiated Agreement
v Worst Alternative to Negotiated Agreement
v Look for a “win-win” solution.
Effective Negotiation
v Successful relationships are built on communication and trust.
v Lack of trust leads to “win-lose” or “lose-lose”.
v Negotiation is one way of creating trust – or deciding whether trust is justified.
The Prisoner’s Dilemma
Scenario:
v Adam and Bob arrested near the scene of a robbery.
v Victim, badly injured, says one person hit him but can’t say who.
v Both are carrying stolen property; no weapon.
v Questioned separately by the police.
v Enough evidence to convict both of theft, but not to convict either one of assault.
v Each prisoner must choose whether to confess and implicate the other.
The Prisoner’s Dilemma
v Simple problem: confess or don't confess. v If neither one confesses, both will serve
one year (possession of stolen property). v If each confesses and implicates the
other, both will go to prison for 10 years. v If one confesses and the other doesn’t, the
collaborator will go free, and the other will go to prison for 20 years.
Prisoner’s Dilemma
Adam
confess silent
Bob confess 10 10 0 20 silent 20 0 1 1
The Prisoner’s Dilemma
The Prisoner’s Dilemma
v Lack of trust is fatal – neither can trust the other to remain silent.
v So the only rational action is to confess.
v That produces the best result no matter what the other person does.
v Other is silent – you go free
v Other confesses – both go to jail.
Multiple Negotiations
v Selfish strategy works in a “winner take all” game.
v Life is rarely like that.
v Most negotiations are based on a continuing relationship.
v What happens if there’s a series of negotiations?
Multiple Negotiations
Payoff Matrix
Player 2 cooperates
Player 2 retaliates
Player 1 cooperates 3, 3 0, 5
Player 1 retaliates 5, 0 -2, -2
Multiple Negotiations
v “Tit-for-Tat” strategy is most successful.
v Four key conditions:
v Nice
v Retaliate
v Forgiving
v Generous
Multiple Negotiations
1. The player always cooperates, unless provoked.
2. The player always retaliates, if provoked.
3. The player is quick to forgive –co-operate next time.
4. The game must continue long enough for the ‘retaliation and forgiveness’ pattern to affect opponent’s behaviour.
Power Ploys
v Classic “Hard Bargaining” Ploys v Extreme claims, small concessions
v “Take or leave it.”
v Unreciprocated offers
v Threats and warnings
v Attacking the alternatives v Good cop, bad cop
Ways to Respond
v Extreme claims, small concessions v Tit for Tat – make equally small concessions.
v “Take or leave it.”
v Make a counter offer.
v Offer an alternative. v Don’t be afraid to walk away.
Ways to Respond
v Unreciprocated offers v Don’t negotiate against yourself.
v Wait for a serious counter offer.
v Threats and warnings
v Don’t make a counter-treat. v Challenge the underlying assumptions .
Ways to Respond
v Attacking the alternatives v Ask for an explanation.
v “Why do you have a problem with…?”
v Good cop, bad cop
v Negotiate with the boss. v Use the “good cop” to your advantage.
Understanding Interests
Common Interests
v Parties want the same things.
v E.g. company and workers both want to avoid strikes and workplace grievances (costs them both money).
Understanding Interests
Complementary Interests
v Parties want different things, but they don’t conflict.
v E.g. company wants to increase productivity & profits; workers want better pensions.
Understanding Interests
Conflicting Interests
v Parties want different and incompatible things.
v E.g. company wants to reduce labour costs; workers want to be paid more.
Triangle of Satisfied Interests
EMOTION (Psychological)
Three Types of Interests:!!Results (Substantive Interests): This is the “what”. Getting to a deal is the result or substantive interest.!!Process (Procedural Interests): This is the “how”. The process -- how long it takes, how fair it is – are process, or procedural interests.!!Emotion (Psychological Interests): This is the “why”. Wanting to “win”, to save face, gain respect, are psychological interests.!!
Note: Triangle adapted with permission from CDR Associates, Boulder, Colorado
Understanding Interests
Negotiation Styles
v Assertiveness vs. Empathy
v Three common negotiation styles
v Competitive
v Accommodating
v Avoidance
v Effective negotiator is assertive and empathetic.
Negotiation Skills
v Communication is the key to effective negotiation.
v What you say is often less important than how you say it.
v Tone
v Body language
Negotiation Skills
v Understanding and recognition do not mean compromise and concession.
v “I understand” vs. “I agree”.
v Your own emotions and subconscious brain can hinder your ability to negotiate effectively.
Negotiation Skills
v Listening v Develop “active listening”.
v Understanding v Acknowledge the other person’s perspective.
v Flexibility v Be open to other options.
v Pragmatism v Accept the best available option.
Conflict Management
Mediation v Mediation is a form of facilitated negotiation.
v The Mediator guides the process and helps the parties negotiate more effectively.
v The Mediator does not decide who is right or wrong.
Mediation
v Interest-based Mediation v Mediator is a facilitator. v Focus on interests, not legal rights or obligations. v Options for creative solutions.
v Evaluative Mediation v Neutral evaluation. v Based on legal rights & obligations.
Mediation
v Qualities of an effective mediator: v Subject area knowledge
v Negotiation & mediation process skills
v Lets parties make key decisions
v Creative approach to the problem
v Patience
Resources
v Cohen: You Can Negotiate Anything, Bantam, 1980
v Fischer, Ury and Patton: Getting to Yes, Penguin, 1991
v Ury: Getting Past No, Bantam, 1993
v Mnookin, Peppet and Tulumello: Beyond Winning, Harvard University Press, 2000
v ADR Institute of Ontario (ADRIO) http://www.adrontario.ca/
Questions?