Negotiation Principles Managing Technical People Topics and

Negotiation Principles Managing Technical People

Topics and Agenda l What is Negotiation? l Negotiation Styles l Preparing for Negotiations l Conducting Negotiations l Influencing Factors l Exercise 11: Negotiation 2

Course Progress l Module 0: Factors Influencing Human Interaction l Module 01: Communication l Module 02: Decision Making Ø Module 03: Negotiation Ø Class 13: Negotiation Principles • Class 16: Capstone Project: Part 02 • Class 14: Video Analysis 03 • Class 17: Case Study 02 • Class 15: Role Play 03 l Module 04: Conflict Management l Module 05: Relationship Management l Module 06: Leadership 3

What Is Negotiation? “You can get much farther with a kind word and a gun than you can with a kind word alone. ” Al Capone American Gangster “If you can't go around it, over it, or through it, you had better negotiate with it. ” Ashleigh Brilliant Artist and Writer 4

What Is Negotiation? • Occurs when goals are potentially: • Interdependent • Incompatible • What is the purpose in a negotiation? • Deal making • Decision making • Dispute resolution • Others? Negotiating Globally: How to Negotiate Deal, Resolve Disputes, and Make Decisions across Cultural Boundaries. Jeanne M. Brett 5

What Is Negotiation? • Small or large in scale • Deal with mundane tasks or global issues • Can take place between: • Two individuals • Designated agents • Coalitions or groups 6

Influencing Factors l Why is negotiation sometimes hard for “techies”? 7

Negotiation Styles High Competitive Win at all cost Win-lose Assertiveness Collaborative Win-win Compromise Split the difference Avoiding Lose-lose Accommodating Lose to win Low Cooperativeness High 8

Competitive l l When quick, decisive action is vital—for example, in an emergency On important issues when unpopular courses of action need implementing—for example, cost cutting, enforcing unpopular rules, discipline On issues vital to company welfare when you know you’re right When you need to protect yourself from people who take advantage of noncompetitive behavior 9

Collaborative l l l When you need to find an integrative solution and the concerns of both parties are too important to be compromised When your objective is to learn and you wish to test your assumptions and understand others' views When you want to merge insights from people with different perspectives on a problem When you want to gain commitment by incorporating others’ concerns into a consensual decision When you need to work through hard feelings that have been interfering with a relationship 10

Avoiding l l l l When an issue is unimportant or when other, more important issues are pressing When you perceive no chance of satisfying your concerns—for example, when you have low power or you are frustrated by something that would be very difficult to change When the potential costs of confronting a conflict outweigh the benefits of its resolution When you need to let people cool down—to reduce tensions to a productive level and to regain perspective and composure When gathering more information outweighs the advantages of an immediate decision When others can resolve the issue more effectively When the issue seems tangential or symptomatic of another, more basic issue 11

Accommodating l l l When you realize that you are wrong—to allow a better solution to be considered, to learn from others, and to show that you are reasonable When the issue is much more important to the other person than it is to you—to satisfy the needs of others and as a goodwill gesture to help maintain a cooperative relationship When you want to build up social credits for later issues that are important to you When you are outmatched and losing and more competition would only damage your cause When preserving harmony and avoiding disruption are especially important When you want to help your employees develop by allowing them to learn from their mistakes 12

Compromise l l l When goals are moderately important but not worth the effort or the potential disruption involved in using more assertive modes When two opponents with equal power are strongly committed to mutually exclusive goals—as in labor– management bargaining When you want to achieve a temporary settlement of a complex issue When you need to arrive at an expedient solution under time pressure As a backup mode when collaboration or competition fails 13

Preparing For Negotiations Factors that influence parties’ rigidity or flexibility: l BATNA: Best Alternative To Negotiating an Agreement l Aspiration: This is what I am really hoping to get l Reservation: This is where my bottom line is 14

Example: Purchasing A House Factors Examples BATNA • Buy another house • Remodel or upgrade current house • Continue to rent Aspiration • Preferred or target price buyer would like to pay Reservation • Highest price buyer will pay 15

Example: Selling A House Factors Examples BATNA • Look for another potential buyer • Take house off the market • Convert house into rental unit Aspiration • Preferred or target price seller would like to receive Reservation • Lowest price seller will accept 16

Example: Job Offer Factors Examples BATNA • • Aspiration • Preferred or target salary potential employee would like to receive Reservation • Lowest salary potential employee will accept Consider another job offer Look for another job offer Keep current job Retire 17

Example: Software Requirements Factors BATNA Aspiration Reservation Examples ? ? ? 18

Example: Software Requirements Factors Examples BATNA • • Aspiration Preferred or target set of requirements that: • Developers would like to develop • Customer would like to have developed • Most extensive and complicated set of requirements to which the developers will agree • Least extensive and complicated set of requirements to which the client/customer will agree Reservation Trade-off other requirements Decline contract Find another client/customer Find another product/service provider 19

Bargaining Power: Ability to achieve good outcomes Sources of Bargaining Power • Preparation for negotiations • Capability to persuade others • Good BATNA • Creativity • Opportunity and willingness to create value for others • Strong relationships • Knowledge about other side 20

Conduction Negotiations: Getting To Yes l The Problem l l People bargain over positions The Method l Separate the people from the problem l Focus on interests not positions l Invent options for mutual gain l Insist on using objective criteria Getting to Yes: Negotiating Agreement Without Giving In: Roger Fisher and William Ury 21

Conducting Negotiations: Inventing Options For Mutual Gain What’s wrong in theory? What’s wrong in the real world? Step 2 Analysis Step 1 The Problem Step 3 Approaches Step 4 Action Ideas Getting to Yes: Negotiating Agreement Without Giving In: Roger Fisher and William Ury What might be done in theory? What might be done in the real world? 22

Influencing Factors: Context • Principals vs. agents • Do you have a direct stake in the negotiation? • Trust • Do you believe in the other party’s words, actions, and decisions? • Emotions • Are your emotions helping or hurting the negotiation? • Justice • Do you think you are being treated fairly or unfairly? 23

Influencing Factors: Culture Interests and Priorities Potential for Integrative Agreement Interests and Priorities Culture A Negotiator Type of Agreement Culture B Negotiator Strategies Pattern of Interaction Strategies Adapted from Culture and Negotiation: Jeanne M. Brett 24

Influencing Factors: Medium • How might negotiations be affected by the medium that’s used? 25

Influencing Factors: Communication Skilled Negotiators: Avoid: Use: • Irritators • Testing Understanding and Summarizing • Counterproposals • Asking Questions • Defend/Attack Spirals • Feelings Commentary The Effective Negotiator — Part I: The Behaviour of Successful Negotiators : Neil Rackham and John Carlisle 26

Influencing Factors: Personality l Study included looking at four elements: l l Two negotiation scenarios were presented: l l l Extroversion, Agreeableness, Conscientiousness and Intelligence Win-Lose / Distributive Win-Win / Integrative Predictions? l l Win-Lose Win-Win “Should You Be a Negotiator”: Ray Friedman and Bruce Barry 27

Influencing Factors: Personality l Results: l Win-Lose - Conscientiousness and intelligence had no effects. l Win-Win – Extroversion or agreeableness had no effects. Do you think the results of the Friedman and Barry study seem reasonable? “Should You Be a Negotiator”: Ray Friedman and Bruce Barry 28

Influencing Factors: Personality Relater Thinker Socializer Director 29

You have 30 minutes Complete Exercise 13 30