negotiation and conflict resolution - mars best practices
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DESCRIPTIONAll 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.
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2. Negotiation andConflict Resolution MaRS Discovery DistrictBest Practices Series December 8, 2011 Presentation byMichael Erdle, Co-FounderPractical Resolutions Inc. 3. Introduction 4. Introductionv Negotiationv Conflict Resolution 5. 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. 6. Basis for Negotiationv Powerv Rightsv Interests 7. Escalation 8. PowerPower Strategies: Characteristics of Power: Take action unilaterally. Adversarial Win at all costs Win/Lose at best Attack/Defend Usually Lose/Lose Threaten Extremely expensive Coerce Negative impact on future Withdraw (Take the Ball and Gorelationships Home) Physical (or verbal) violence 9. RightsRights Strategies:Characteristics of Rights: Contracts (guarantee the Adversarial minimum) Win/Lose at best Policies, procedures, rules Often Lose/Lose Precedent Extremely expensive Past practice Time-consuming Legal action Impact on future relationships? Third-party decisions (e.g. arbitration) 10. InterestsInterests Strategies: Characteristics of Interests: Identify whats really important Win/win process Dialogue about needs and wants Collaborative Honest sharing of information Interdependent Maximize results for all parties Builds trust Help everyone explore and Positive impact on future understand their own interests, relationship and interests of other parties Needs an ongoing relationship 11. Power, Rights, InterestsAll out WarUnilateral Action Power Threats, CoercionLitigationArbitrationRightsCosts Investigation/Fact Finding Go UpConciliation Interests MediationNegotiation Problem Solving PreventionControl Goes Up 12. The Golden Rule 13. De-escalation 14. Duty to Negotiate in Good Faithv Obligation to respect the legitimate interests of otherparty and to deal promptly, honestly, fairly andreasonably 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) 15. Duty to Negotiate in Good Faith Spectrum of contractual dutiesSelfishSelflessUnconscionability ! Good Faith Fiduciary Duty 16. Duty to Negotiate in Good Faithv Fiduciary:v Trusteev Corporate Directorv Lawyerv Good Faith:v Professional Code of Ethicsv Contractv Employee/Employer 17. Negotiation Stepsv Distributing Value vs. Creating Valuev Opportunisticv Problem-solvingv Identify Issuesv What does each side want and need?v Consider Interestsv Commonv Complementaryv Conflicting 18. Effective Negotiationv Interests vs. Positionsv Needs vs. wantsv Separate the People from the Problem.v Soft on the personv Hard on the problemv Consider other Options 19. Effective Negotiationv Seek Objective Alternativesv Determine BATNA and WATNAv Best Alternative to Negotiated Agreementv Worst Alternative to Negotiated Agreementv Look for a win-win solution. 20. Effective Negotiationv Successful relationships are built on communicationand trust.v Lack of trust leads to win-lose or lose-lose.v Negotiation is one way of creating trust or decidingwhether trust is justified. 21. The Prisoners DilemmaScenario:v Adam and Bob arrested near the scene of a robbery.v Victim, badly injured, says one person hit him but cantsay 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 toconvict either one of assault.v Each prisoner must choose whether toconfess and implicate the other. 22. The Prisoners Dilemmav Simple problem: confess or dont confess.v If neither one confesses, both will serveone year (possession of stolen property).v If each confesses and implicates theother, both will go to prison for 10 years.v If one confesses and the other doesnt, thecollaborator will go free, and the otherwill go to prison for 20 years. 23. The Prisoners Dilemma PrisonersAdam Dilemmaconfess silentconfess 10 100 20Bob silent20 0 11 24. The Prisoners Dilemmav Lack of trust is fatal neither can trust the other toremain silent.v So the only rational action is to confess.v That produces the best result no matter what the otherperson does.v Other is silent you go freev Other confesses both go to jail. 25. Multiple Negotiationsv 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 theres a series of negotiations? 26. Multiple NegotiationsPayoff MatrixPlayer 2Player 2cooperates retaliatesPlayer 1 cooperates 3, 3 0, 5Player 1retaliates 5, 0-2, -2 27. Multiple Negotiationsv Tit-for-Tat strategy is most successful.v Four key conditions:v Nicev Retaliatev Forgivingv Generous 28. Multiple Negotiations1. 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 theretaliation and forgiveness pattern to affectopponents behaviour. 29. Power Ploysv Classic Hard Bargaining Ploysv Extreme claims, small concessionsv Take or leave it.v Unreciprocated offersv Threats and warningsv Attacking the alternativesv Good cop, bad cop 30. Ways to Respondv Extreme claims, small concessionsv Tit for Tat make equally small concessions.v Take or leave it.v Make a counter offer.v Offer an alternative.v Dont be afraid to walk away. 31. Ways to Respondv Unreciprocated offersv Dont negotiate against yourself.v Wait for a serious counter offer.v Threats and warningsv Dont make a counter-treat.v Challenge the underlying assumptions . 32. Ways to Respondv Attacking the alternativesv Ask for an explanation.v Why do you have a problem with?v Good cop, bad copv Negotiate with the boss.v Use the good cop to your advantage. 33. Understanding InterestsCommon Interestsv Parties want the same things.v E.g. company and workers both want to avoid strikesand workplace grievances (costs them both money). 34. Understanding InterestsComplementary Interestsv Parties want different things, but they dont conflict.v E.g. company wants to increase productivity & profits;workers want better pensions. 35. Understanding InterestsConflicting Interestsv Parties want different and incompatible things.v E.g. company wants to reduce labour costs; workerswant to be paid more. 36. Understanding Interests Triangle of Satisfied Interests 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 withpermission from CDREMOTIONAssociates, Boulder, Colorado(Psychological) 37. Negotiation Stylesv Assertiveness vs. Empathyv Three common negotiation stylesv Competitivev Accommodatingv Avoidancev Effective negotiator is assertive and empathetic. 38. Negotiation Skillsv Communication is the key to effective negotiation.v What you say is often less important than how you sayit.v Tonev Body language 39. Negotiation Skillsv Understanding and recognition do not meancompromise and concession.v I understand vs. I agree.v Your own emotions and subconscious brain can hinderyour ability to negotiate effectively. 40. Negotiation Skillsv Listeningv Develop active listening.v Understandingv Acknowledge the other persons perspective.v Flexibilityv Be open to other options.v Pragmatismv Accept the best available option. 41. Conflict ManagementMediationv Mediation is a form of facilitated negotiation.v The Mediator guides the process and helps theparties negotiate more effectively.v The Mediator does not decide who is right orwrong. 42. Mediationv Interest-based Mediationv Mediator is a facilitator.v Focus on interests, not legal rights or obligations.v Options for creative solutions.v Evaluative Mediationv Neutral evaluation.v Based on legal rights & obligations. 43. Mediationv Qualities of an effective mediator:v Subject area knowledgev Negotiation & mediation process skillsv Lets parties make key decisionsv Creative approach to the problemv Patience 44. Resourcesv Cohen: You Can Negotiate Anything, Bantam, 1980v Fischer, Ury and Patton: Getting to Yes, Penguin, 1991v Ury: Getting Past No, Bantam, 1993v Mnookin, Peppet and Tulumello: Beyond Winning, Harvard University Press, 2000v ADR Institute of Ontario (ADRIO) http://www.adrontario.ca/ 45. Questions?