Organizational Processes for TPP: Session 6

1. Organizational Processes for TPP:Session 6 Negotiations and Dispute Resolution

2. Welcome and Overview (5 min.) Mango Systems Negotiation and Discussion (90 min.) Break (10 min.) Strategic Negotiations and Interest-Based Bargaining (60 min.) April 2nd Simulation Logistics (15 min.) Session Design (3 hours)

3. A Five Step Negotiations Model I. Prepare • What does the • word “negotiations” • mean to you? • What are examples • of negotiations • situations relevant • to technology • policy? II. Open III. Explore IV. Focus V. Agree Note: This model is from the seminar on “Negotiating Labor Agreements” offered through the Program on Negotiation at the Harvard Law School in co-sponsorship with MIT – program co-chairs: Joel Cutcher–Gershenfeld and Robert McKersie

4. Mango Systems Simulation • Process Overview: –Step 1 (before class): • Prepare for negotiations – Step 2 (10 – 15 min.): • Meet in groups of people all with the same role – clustered in small groups of 2-3 people for final preparation focused on your opening statements • Assignments to pairs for negotiations – Step 3 (30 – 45 min.): • Negotiate in pairs – reach agreements if you can – Step 4 (30 – 45 min.): • Discussion

5. Mango Systems Discussion • Negotiations Substance • Agreements reached • Open issues • Nature of the issues • Compare and Contrast Experience in Sub-Groups A, B and C

6. Mango Systems Discussion (cont.) • Negotiations Process • Five phases • Preparation • Technical preparation; Social preparation • Opening • Framing, including last-minute mandates • Exploring • Understanding interests and generating options • Focusing • Establishing linkages, ranges and architecture • Agreeing • Recording agreement; Anticipating implementation • Communications dynamics throughout

7. Thinking About Conflict As conflict -- difference -- is here in the world, as we cannot avoid it, we should, I think, use it. Instead of condemning it, we should set it to work for us. why not? What does the mechanical engineer do with friction? Of course his chief job is to eliminate friction, but it is true that he also capitalizes friction. The transmission of power by belts depends on friction between the belt and the pulley. The friction between the driving wheel of the locomotive on the track is necessary to haul the train. All polishing is done by friction. The music of the violin we get by friction. We left the savage state mind on mind as a good thing. So in business, too, we have to know when to try to eliminate friction and when to try to capitalize it, when to see what work we can make it do. That is what I wish to consider here, whether we can set conflict to work and make it do something for us. • Mary Parker Follett (Bureau of Personnel Administration Conference, 1925)

8. Conflict Resolution Systems • What are examples of conflict resolution processes in organization? • How are they inter-related with one another? • Key principle: Multiple Redundant Systems

9. Conflict Styles • Competitors • Accommodators • Avoiders • Quick fixers • Problem Solvers

10. Traditional bargaining tactics • Overstate your opening position • Always have a fall-back position • Commit to your position early and publicly • If you are a group, always use a single spokesperson • Give as little as possible for what your get • Never bargain against yourself • Mobilize support from your constituents • Exploit weaknesses in the other side • An agreement reluctantly accepted is a sign of success

11. Core assumption Common interests Competing interests

12. Positional and interest-based bargaining My Positions Others’ Positions Zone of Possible Agreement Based on Positions Range of Options Based on Interests

13. Distinguishing interests and positions Sample statements: Which are interest-based and which are positional? Statement A: We are launching a new quality program and we expect the union to be a full partner Statement B: We are implementing a new quality initiative, which is part of the ISO 9000:2000 international quality standard. We know that the input of the workforce – your members – is essential to any quality initiative. So, we really want your full participation. Also, active union participation in the ISO 9000:2000 efforts will send an important signal to our customers. What can we do to work together on this issue? What do you notice when you compare these statements?

14. Issue analysis worksheet Issue: My/Our Interests: What is important to the me/us on this issue? Other’s Interests: What is important to other parties/stakeholders on this issue? Power: What are some of the power realities in this scenario? What are the best alternatives to an agreement (BATNA) for each party? Options: What are some options to consider on this issue?

15. Strategic negotiations What are examples of forcing, fostering and escape that You have been in organizations? How are they related to each other?

16. Sequencing Forcing and Fostering Strategies What happens when forcing comes first? What happens when fostering comes first? What happens when both are going on at the same time?

17. Negotiation Strategy andOrganizational Change • Change strategies and negotiation blind sides • Top-down re-engineering • Forcing process makes recovery afterwards difficult • Bottom-up process improvement • Fostering process makes subsequent conflict difficult • Pilot-experiment and diffusion • Diffusion depends on a combination of forcing and fostering