L7 Principled Negotiation (II)

Question 1

What is positional bargaining?

Answer 1

When each side takes a position, argues for it and makes concessions to reach compromise.

Question 2

Why is positional bargaining often NOT a good idea?

Answer 2

Because positional bargaining can produce unwise outcomes, be inefficient, and endanger an ongoing relationship.

Question 3

Principle #2 Focus on interest, not positions

What is the difference between position and interest?

Answer 3

• Position is what you decided upon

- Interest is what caused you to decide the position

Question 4

Principle #2 Focus on interest, not positions

How do you indentify interests? (normally they are unexpressed, intangible and inconsistent)

Answer 4

1. Ask “Why does the other take their position?”
   - Put yourself in their shoes
   - Ask them directly
   - Not about justification, but understanding
2. Ask “Why not?”
   - Think about the decision do you want them to make and why have they not made it.
3. Realize each side has multiple interests
4. Most powerful interests are basic human needs (security, control, recognition…)

Question 5

Principle #2 Focus on interest, not positions
In a negotiation, each side has multiple interests and these interests are not monolithic.

True / False

Answer 5

True

Each side has many interests during a negotiation because the interests on the table normally represent more people that are not there and a common error is to assume that each person on the other side has the same interests (e.g., the salesman wants to sell and get their bonus while the production manager of the same company just wants to make sure that the products will be delivered correctly)

Question 6

Principle #2 Focus on interest, not positions

Can basic human needs be the interest behind a declared position?

Answer 6

Yes, basic human needs (security, economic well-being, sense of belonging, recognition, control…) are powerful interests. It is not all about money.

Question 7

Principle #2 Focus on interest, not positions

How can you talk about your interests and the other party’s interests during a negotiation?

Answer 7

• Be specific on your interests
• Acknowledge their interests as part of the problem
• Put the problem before your answer (start with “why?”, not “what?”)
• Be concrete but flexible
• Be hard on the problem, but soft on the people

Question 8

Principle #3 Invent options for mutual gain

Why do you need options?

Answer 8

Before a negotiation you don’t know the right answer, so generating several options might reveal a win-win and you might be able to “expand the pie”

Question 9

Principle #2 Focus on interest, not positions

Which are the 4 main obstacles when generating options?

Answer 9

1. Premature judgement (which hinders imagination)
2. Searching for single answer (people tend to focus on narrowing the gap between positions instead of broadening possible options because of fear of delaying or confusing the process)
3. Fixed-pie assumption (fixed sum game, “either/or”, “your gain is my loss”)
4. “Solving their problem is their problem” (concerning for own interests only, which leads to one-sided solutions)

Question 10

Principle #2 Focus on interest, not positions

How should you deal with the obstacle 1 (premature judgement)?

Answer 10

Invent and brainstorm (without constraints) all ideas first, and judge and evaluate later (you can do it together with the other side)

Question 11

Principle #2 Focus on interest, not positions

How should you deal with obstacle 2 (searching for a single answer)?

Answer 11

Do not look for one magic bullet and broad your options by looking through eyes of different experts, inventing agreements of different strenghts, and changing the scope of the proposed agreement.

Question 12

Principle #2 Focus on interest, not positions

How should you deal with obstacle 3 (fixed-pie assumption)?

Answer 12

• Look for mutual gain agreements (win-win) by getting insight in interests
• Try to expand the pie (integrative agreement): it can be multiple issues, possibility to add issues, and also different preferences.

Question 13

Principle #2 Focus on interest, not positions

How should you deal with obstacle 4 (“solving their problem is their problem”)?

Answer 13

Try to make their decision easy (“yesable” proposition) by providing the other side with an answer, not a problem.
- What would be attractive terms to them?
- Can you reduce the number of people involved in the process?
- Can you make it easy to implement the result?
…

Question 14

Principle #4 Insist on using objective criteria

Why is objective criteria needed in negotiations?

Answer 14

Objective criteria help to split the pie farily and it is more efficient than positional bargaining.

Question 15

Principle #4 Insist on using objective criteria

What is the difference between fair standards and fair procedures?

Answer 15

• Fair standards: independent of will, legitimate and practical
• Fair

Question 16

Principle #4 Insist on using objective criteria

Which type of objective criteria is used in negotiations?

Answer 16

• Fair standards: independent of will, legitimate and practical
• Fair procedures: how the cake is divided (“you cut, I choose”, taking turns, drawing lots, letting a 3rd party decide). The result may be unequal, but both had equal opportunity.

Question 17

Principle #4 Insist on using objective criteria

How to discuss using objective criteria with the other side?

Answer 17

• Frame each issue as joint search for objective criteria
• Be open to reason
• Never yield (ceder) to pressure, only to principle