Session 3.2: Principled Negotiation

1. Session 3.2:Principled Negotiation Module 3:Persuasive Communication & Resource Development Leadership and Management Course for ZHRC Coordinators and HTI Principals, and ZHRC/HTI Management Teams

2. Learning Objectives By the end of the session, participants will be able to: • Define negotiation. • Identify three criteria for assessing the effectiveness of a negotiation method. • Describe the four principles of negotiation on the merits. • Describe strategies for overcoming common barriers to principled negotiation.

3. What is negotiation? • A discussion intended to accomplish one or more of the following: • Resolve disputes • Reach an agreement on a course of action • Bargain for individual or collective advantage • Craft outcomes to satisfy various interests. • Negotiation can happen between two or more parties/sides.

4. When does negotiation happen? • Work Situations • Project deliverables & deadlines • Contracts • Delegating work, assignments • Employment offers • Personal situations • Marriage/relationships • Parenting • Day-to-day life • Government proceedings

5. Competition vs. Cooperation • Competition pits people against one another • Cooperation brings people together to reach shared goals Successful negotiation begins with cooperation.

6. Negotiation Philosophies • Win/Win • Cooperative, all parties feel good and are committed to the plan of action • Win/Lose • Authoritarian, adversarial, competitive • Lose/Win • Capitulation, no standards or expectations • Lose/Lose • Focused on the other party as “enemy” regardless of cost to self • No Deal • Agree to Disagree

7. Win/Win Approaches Win/Win is a frame of mind and heart that constantly seeks mutual benefit in all human interactions. - Steven R. Covey Win/Win is a belief that it’s not your way or my way; it’s a better way. - Steven R. Covey

8. Two Levels of Negotiation • Negotiation involves substance and process. • Parties must engage with both levels. • Substance • What are the issue(s) or problem(s) at hand? • What are the interests? • Process • How do we choose to deal with the substance? • What are the “rules of engagement”? • What is the relationship between the parties? • How will we communicate with each other?

9. Assessing Methods of Negotiation • There are many different approaches and methods to negotiation. • Any method of negotiation can be fairly judged by three criteria. • Criteria for Effective Negotiation • Produces a Wise Agreement • If agreement is possible • Is Efficient • Improves the Relationship between parties • At minimum, does not damage relationship

10. What is a “Wise Agreement”? • Meets the legitimate interests of each side (to the extent possible) • Resolves conflicting agreements fairly • Is durable (long-lasting and sustainable) • Takes community interests into account

11. Phases of Negotiation • Analysis • Diagnose the problem, Consider the people, Identify interests, Consider objective agreement criteria • Planning • Prioritize your interests, Generate ideas for agreements/solutions, Create plans for addressing perception, emotions, & communication differences • Discussion • Acknowledge and address differences, challenges • Jointly develop mutually beneficial options

12. Positional Bargaining & Principled Negotiation • Most approaches to negotiation fall into one of these categories: • Positional Bargaining • Principled Negotiation • Each category is based on different “rules” for the game

13. Positional Bargaining • Hard Positional Bargaining • Contest of will, adversarial battle • Starts with an extreme position, and holds to it • Ignores underlying concerns/interests • Difficult, time-consuming • Hard on relationships – breeds anger, resentment • Soft Positional Bargaining • Rarely produces wise agreements • Usually quick; leaves very little time for thoughtful consideration • Emphasizes relationships, avoids confrontation • Vulnerable to hard bargaining

14. Principled Negotiation • Separate the people from the problem • Focus on the real issue(s) at hand, not character • Focus on interests, not positions • Consider needs and priorities of all parties • Create options for mutual gain • Common ground, win/win • Create several possibilities before selecting one • Use objective assessment criteria • Standards that all parties can buy into to define a good agreement

15. Principled Negotiation: Separate People from Problem • Parties to a negotiation are people first. • Don’t let your relationship with the person become entangled with the problem itself. • Consider the other party’s perspective. • How do they see the issues? • Do not blame them for the problem. • Acknowledge that emotion is present. • Express emotions, but avoid outbursts. • Communicate clearly, and listen actively to the other party.

16. Principled Negotiation: Focus on Interests, not positions • Interests define the problem. • The problem is usually not conflicting positions, but is the conflict between the needs, desires, concerns, and fears of each side. • Identify all parties’ interests. • Ask “why?” and “why not?” • Most parties have many interests. • Don’t assume the other side shares your interests. • Discuss interests with all parties present. • Explain your interests clearly. Listen to theirs. • Focus on future solutions, not on past events. • Remain open to proposals and ideas.

17. Principled Negotiation: Create Options for Mutual Gain • Consider many ideas before agreeing to one. • There is no single answer! • Invent options now, evaluate and decide later. • Hold creative, joint brainstorming sessions • Broaden your options. • Consider partial solutions. Refine and improve ideas. • Only evaluate after many ideas are proposed. • Aim for shared goals, common interests, and mutual benefit. • Make their decision easy. • Try to appeal to the other side with your solutions.

18. Principled Negotiation: Use Objective Criteria • Use legitimate and practical criteria. • Professional standards, scientific findings, legal precedents, etc. • Approach each issue as a shared search for objective criteria. • Explore the other party’s reasoning. • Keep an open mind. • Reconsider your position, when reasonable. • Do not give in to pressure, threats, or bribes.

19. Aim for Win/Win Solutions • See the problem from another point of view. • Identify key issues and concerns. • Determine what makes a fully acceptable solution. • Mutually beneficial • Identify options to achieve those results.

20. Preparing for a Substantive Negotiation • Select the team. • Who should be at the table? • Strive for the right mix of expertise, experience, relationships, skills, and authority • Develop your team. • Minimize internal conflict prior to negotiating. • Clarify roles, responsibilities, decision-making protocols, and lines of communication. • Jointly set goals & process with all parties. • Set goals for relationship, substance, & agreement. • Agree on objective assessment criteria.

21. Know Your BATNA • BATNA: Best Alternative to a Negotiated Agreement • You should not decide to accept a negotiated agreement unless you know your alternative(s). • Your BATNA sets a standard that protects you from: • Accepting terms that are unfavourable • Rejecting terms it would be in your interest to accept. The reason you negotiate is to produce something better than the results you can obtain without negotiating. - Roger Fisher & William Ury

22. Determining Your BATNA • Create a list of actions you can take if no agreement is reached. • Review the list, and refine promising ideas into practical options. • Tentatively select the option that seems best. This is your BATNA. • Keep your BATNA in mind during the negotiation process.

23. Overcoming Barriers • Power Dynamics • Concentrate on BATNA • Refusing Principled Negotiation • Stick to technique, focus on problem, Use 3rd party • Using “Dirty Tricks” • Establish procedural rules, raise the issue • When the people are the problem • Build a working relationship independent of agreement/disagreement • Differences in Culture, Gender, Personality, etc. • Listen actively, avoid assumptions, be sensitive

24. Practicing Principled Negotiation • Start small. • Experiment in low-risk situations. • Make an investment in improving your skills. • Remember to focus on long-term potential. • Review your performance. • Self-evaluate your performance. • What worked? What didn’t? What could you have done differently? • Prepare and plan ahead! • Allow enough time. • Explore interests, facts, arguments, etc.

25. Activity: Principled Negotiation Scenario • You serve on a task force at a health training institution. • The task force must agree on oneTsch 5,000,000 capital improvement project. • Use the principled negotiation method to discuss interests and reach a shared solution. • Principled Negotiation Method • Separate the people from problem. • Focus on interests, not positions. • Generate options before settling on an agreement. • Insist that agreement be based on objective criteria.

26. Key Points • Successful negotiation begins with cooperation. • Negotiations are concerned with substance and process. • Effective negotiation produces wise agreements in an efficient manner, and does not damage a relationship. • Principled negotiation separates people from problems, focuses on interests, strives for mutual benefit, and uses objective assessment criteria.