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NEGOTIATIONS

NEGOTIATIONS. WIN/WIN. Presented by: Dave Kaczmarek, CMRP, FAHRMM Senior Director, Huron Healthcare 312-718-6031 Dkaczmarek@huronconsultinggroup.com. A New Car. List price $25,000 Your target $22,000 For commission $20,000 Your first offer $19,000 Final price $21,000.

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NEGOTIATIONS

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  1. NEGOTIATIONS WIN/WIN Presented by: Dave Kaczmarek, CMRP, FAHRMM Senior Director, Huron Healthcare 312-718-6031 Dkaczmarek@huronconsultinggroup.com

  2. A New Car List price $25,000 Your target $22,000 For commission $20,000 Your first offer $19,000 Final price $21,000 Win/Win????

  3. When do YOU negotiate?

  4. SHOULD I NEGOTIATE? Questions to Ask • Can I live with the current offer? • What’s the probability of a better solution? • Do I have the time to invest? • Do I have the necessary knowledge? • Do I have the power to impose my solution?

  5. WHO IS YOUR AUDIENCE?

  6. NORMAL NEGOTIATION STYLES • Adversarial (Hard) • Take positions • Clarify and defend • Convince • Concessionary (Soft) • Worry about relationship • Sloppy agreements • Vulnerable

  7. WIN - WIN WIN - LOSE CONTRASTING STYLES

  8. WIN/WIN PRINCIPLES Cooperation People & Problems Interests Not Positions Creative Options Objective Standards

  9. COOPERATION • Partners in finding a solution • View as an opportunity to problem solve • Both outcome AND process are important • The relationship should be enhanced

  10. PEOPLE & PROBLEMS Failing to deal with others sensitively as human beings prone to human reactions can be disastrous for a negotiation. - from Getting to Yes

  11. PEOPLE & PROBLEMS • Negotiation happens at two levels • Substantive • Interpersonal • Egos become involved • Parties draw unfounded inferences

  12. PEOPLE & PROBLEMS • Accurate perceptions • Appropriate emotions • Clear communication • Forward-looking, purposive outlook Base the relationship on:

  13. INTERESTS NOT POSITIONS Interests: - the silent movers behind the positions Composed of - desires - needs - concerns - fears

  14. INTERESTS NOT POSITIONS Reconciling interests works because For every interest Several possible positions Behind opposed positions More shared interests

  15. INTERESTS NOT POSITIONS How do you identify interests? • Ask “why” • Ask “why not” • Realize there are multiple interests • Focus on basic human needs

  16. INTERESTS NOT POSITIONS Explain What Your Interests Are: • Make your interests come alive • Acknowledge their interests • Put the problem before your answer • Look forward not back • Be concrete but flexible

  17. CREATIVE OPTIONS To invent creative options you must: • Brainstorm with colleagues • Brainstorm with other side • 1. Separate inventing from judging

  18. CREATIVE OPTIONS To invent creative options you must: • 2. Broaden the options on the table • Don’t look for the single answer • Use facilitation techniques • Change the scope • Invent different strengths

  19. BROADEN THE OPTIONS Stronger Weaker Substantive Procedural Permanent Provisional Comprehensive Partial Final In principle Unconditional Contingent Binding Nonbinding

  20. CREATIVE OPTIONS Let’s Divide a Pie

  21. Let’s Divide a Pie This Kathi Kathi Dave Dave Kathi Dave This

  22. CREATIVE OPTIONS To invent creative options you must: 3. Search for mutual gains • Make the pie bigger • Identify shared interests • Dovetail differing interests • Ask for preferences

  23. CREATIVE OPTIONS To invent creative options you must: 4. Make their decision easy • See through their eyes • Look for legitimacy • What are the consequences • Do a “yesable proposition” Sufficient Realistic Operational

  24. OBJECTIVE STANDARDS Market value Precedent Fair Standards: Efficiency Tradition Equal Treatment Reciprocity Scientific judgment Costs Professional/moral standards What a court would decide

  25. OBJECTIVE STANDARDS One divide, the other choose Fair Procedures: Take turns Use arbitrator Develop solution before you decide who will do which Last best offer arbitration

  26. OBJECTIVE STANDARDS • Frame each issue as a joint search • Reason and be open to reason • Never yield to pressure - only principle Negotiating With Objective Criteria:

  27. WIN/WIN PRINCIPLES Cooperation People & Problems Interests Not Positions Creative Options Objective Standards

  28. DON’T REACT Go to the Balcony • What is a • B • A • T • N • A est lternative o a egotiated greement

  29. DEVELOP YOUR BATNA • See your alternative in the aggregate • Be unduly pessimistic • Agree or not agree unwisely Without One It Is Easy To:

  30. DEVELOP YOUR BATNA • Invent a list of actions • Improve some of the more promising • Select, tentatively, the best one

  31. A WIN/WIN RESULT Destroy Your Adversary By making him your partner in problem-solving negotiation

  32. WIN/WIN PRINCIPLES Cooperation People & Problems Interests Not Positions Creative Options Objective Standards

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