negotiation and conflict resolution - mars best practices

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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.


  • 1.11-12-21 1

2. Negotiation and Conflict Resolution MaRS Discovery District Best Practices Series December 8, 2011 Presentation by Michael Erdle, Co-Founder Practical Resolutions Inc. 3. Introduction 4. Introduction vNegotiation vConflict 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 Negotiation vPower vRights vInterests 7. Escalation 8. 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 9. 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? 10. Interests Interests Strategies: Identify whats 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 11. 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 12. The Golden Rule 13. De-escalation 14. 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) 15. Duty to Negotiate in Good Faith Spectrum of contractual duties Selfish Selfless Unconscionability ! Good Faith Fiduciary Duty 16. 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 17. 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 18. 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 19. 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. 20. 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. 21. The Prisoners Dilemma Scenario: v Adam and Bob arrested near the scene of a robbery. v Victim, badly injured, says one person hit him but cant 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. 22. The Prisoners 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 doesnt, the collaborator will go free, and the other will go to prison for 20 years. 23. Prisoners Dilemma Adam confess silent Bob confess 10 10 0 20 silent 20 0 1 1 The Prisoners Dilemma 24. The Prisoners 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. 25. 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 theres a series of negotiations? 26. Multiple Negotiations Payoff Matrix Player 2 cooperates Player 2 retaliates Player 1 cooperates 3, 3 0, 5 Player 1 retaliates 5, 0 -2, -2 27. Multiple Negotiations v Tit-for-Tat strategy is most successful. v Four key conditions: v Nice v Retaliate v Forgiving v Generous 28. 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 opponents behaviour. 29. 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 30. 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 Dont be afraid to walk away. 31. Ways to Respond v Unreciprocated offers v Dont negotiate against yourself. v Wait for a serious counter offer. v Threats and warnings v Dont make a counter-treat. v Challenge the underlying assumptions . 32. 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. 33. 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). 34. Understanding Interests Complementary Interests v Parties want different things, but they dont conflict. v E.g. company wants to increase productivity & profits; workers want better pensions. 35. 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. 36. 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 37. Negotiation Styles v Assertiveness vs. Empathy v Three common negotiation styles v Competitive v Accommodating v Avoidance v Effective negotiator is assertive and empathetic. 38. 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 39. 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. 40. Negotiation Skills v Listening v Develop active listening. v Understanding v Acknowledge the other persons perspective. v Flexibility v Be open to other options. v Pragmatism v Accept the best available option. 41. 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. 42. 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. 43. 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 44. 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) 45. Questions?