GETTING READY TO NEGOTIATE A STEP-BY-STEP GUIDE TO PREPARING FOR ANY NEGOTIATION 0Roger Fisher and Danny Ertel Gelling Ready to Negotiate THE GETTING TO YES™ WORKBOOK PENGUIN BOOKS5 % ALTERNATIVES: What Will Do If We Do Not Agree? Forms ALTERNATIVES 1+ Think of My Alternatives to a Negotiated Agreement ALTERNATIVES 2: Select and Improve My BATNA ALTERNATIVES 5: Ilentify Alternatives Open to the Other Side ALTERNATIVES 4: Estimate Their BATA LEGITIMAGE Wht Criteria WA Use wo Persuade Bac of Us ‘That We Are Not Being Ripped Of? Forms LEGITIMACY 1: Use Kxternal Standards as a Sword dad as a Shield LEGITIMACY 2: Use the Fairness of the Process to Persuade LEGITIMACY 5: Offer Them au Attractive Way to Explain Thebr Decision ‘COMMUNICATION: Am ! Ready to Usten and Talk ifectvey? Forms COMMUNICATION 1: Question My Assumptions and Identify Things 10 Listen For COMMUNICATION 2: Reframe to Help Then Understand RELATIONSHIP: Am 1 Ready to Deal wih the Relationship? Forms RELATIONSHIP 1: Separate People Issues from Substantive Issues RELATIONSHIP 2: Prepare to Bulld « Good Working Relationship COMMITMENT What Commitments Should 1 Sek or Make? Forms COMMITMENT 1: Identify the Issues to Be Included in the Agreement COMMITMENT 2: Plan the Steps to Agreement 45 49 50 31 2 on 6 o7 76 86 » 100 worUsing This WorkbookInirove People don't know bow to prepare tell Many people fee! prepared i they know what they want and what chey'l seule for. But if ou preparation corsists of creating a wish ist with a minimum fl hack postion, the only thing we will be ready 10 do in the negetiation is to state demands and make concessions. Positional preparation leads to positional negotiation. By focusing on what we will sk for and what we will give up, wwe set ourselves up for an adverssial, 2er0 um kind of negotiation. But this kind of preparation offen prevents us [tom Finding creative solutions that ex- pnd the pre before spliting &, oF from working side by side 10 sohe some joint problem Positional preparation the greatest source of stress and anxiety during ne [goiations. We might think that swe invest time and energy planning our de ‘mands and concessiors we will fel more confident as we make them. But the realty of the matter is that a positional negotiator, even one who has thought about what positions to take and what concessions to make, has litle basis for ‘deciding when to make a concession. Making a concession when the other side ‘von’ simply rewards their bad behavior. Yet not making one can preciptate 3 comtest as to who can be more stubborn, Preparing only by making a ist of de ‘mands and concessions is preparation fora bad negation A systematic approach to preparation Experience demonstrates that preparation benefits ftom a systematic approach “That is where this workbook comes in. To be evell prepared, we want to get ‘our hancls around the enire negotiation, use a checklist identify those areas “where preparation 6 Mkely 1 be most helpfil, and then get to work. Here is a system we suggest you use uni you develop one that works bewes for you “There is no singe right way to organize Meas, We have developed over the years what we ell "theory for prcttioners"—concepts and tools that help busy people organize and clarify their thinking about negotiation. Goal: good outcome ‘A good resuk of a negotiation can be seen as involving seven elements. The beter we handle each element, the better the outcomeTnioduction a building blocks of a negotiation—we can get our “arms around the problem.” ‘That will enable us to go into a negotiation well equipped to produce a good ‘outcome, oF if we can", know when to walk away’ (0 Something Deter How to use this book “The more familiar you become with this book, and with your upcoming negoti ation, the easier will be 10 make good use of the concepss and tools, Even if You ate @ stranger to buth, the book should quickly become a comforting uide. To get you stated, here are four suggested ways t0 proceed, 41. First, read straight through Finish reading this inrackctory material and then continue straight on through the baste seven chapters without sopping t0 fill out any foems. This will give you a good ide oF what is here and how i might prove helpful. Then come back t0 the Priority Prep cection beginning on page 12, dentify some key el fements for your preparation, and il out the forsns for the etements that match those priorities, 2. Suddon prep Ir time before an upcoming negetiaion short ifthe substance is of Himited nporance, an if you would like « litle quick help in geting wad, tum to she Sudden Prep form on page 1 5 Prionty prep Jump right in anatying your upcoming negotiation sah the Prtority Prep ‘questions in the scion beginning on page 14. Inthe light of that chagnosis, decide which elements are those to which you should give prionty attention, and flout those forms Prepartion isnot simply a one-step precess. Between meetings or during breaks, you may want to revit this worRbvok, especially if new of unforecen diicubies have come up. The tool inthis workbook can telp you organize your thinking teach sage of a negotiationCHAPTER 2 In a Hurry? cod preparation need not take a lot of time, Clear thinking and a few ninutes of focused attention will dramatically improve your effectiveness Jn negotiation. When you are expecting your negotiations 10 be shor and ‘iraightforward, when the stakes do not jusify a big investment of time and ef for, or even when you would like to take a first Sep toward a more thorough preparation, we suggest you do 2 quick sketch of the negotiation temain, This ‘will leave you better prepared than simply winging tor preparing a lis! of de~ mands and fallback postions For some negotiations, a quick sketch will not be enough, while working through every form in this workbook may seem like too much, To prioritize Your preparation time for these situations, you shoukl spend a Few minutes di agnosing your upcoming negotiation, much as a doctor would check sone bar sic vital signs before proceeding to invest significant time and effor preparing ‘One basic premise behind all the work sheets and tools included in this ‘workbook i that having a structure or a system will help you prepare beiter Better may not always mean in more detail or taking more time Better wll sean whatever Is appropriate for the negotiation. A systematic approach will sake you more efficient ia those cases where you do not have enough time. It will organize your thinking and claify what ‘s going on in messy anc! compli cated situations, It will help you cover all the bases where you might have overlooked something, In this chapter we introduce two ways to use the veven element of negot ation described in the traduction as a structured and systematic approach 10 getting ready to negate. With Sudden Prep, you will undertake a quick scan¢ Ceeéee ¢ ‘his form is tended 10 provide quick bop Jor a npconng negottarion.) ‘SUDDEN PREP ‘Things I should be ready to put “on the table” My interests Options Legitimacy What fealty exe osible agreements External sandards or about. My wanes, that we might reach, precedents that might reed, concems, Convince one or both hopes, and fears. ‘of us that 4 proposed fapreement sf. rm My walkaway alternative What can T do if walk away without agreement? Which is the best’ What ‘would really do? ewe reach agreement. we ‘commit to some option “Their interests ‘What F think they really cite shout Thee ‘wns, concerns, hopes, and fearsna hares - pice of preparation. Your thinking about the mos Importne challenges may ‘change as you get further into the negotiation. Consider the following clusters of questions. They represent some typical ‘questions or probtems that arise in negotiation. Recognize that not every ques: tion within a cluster will be directly applicable; nonetheless, as a place wo sta, ‘choose the cluster that intrigues you the most. The question in this cluster de fine the principal challenges you face in this negotiation. To prepare to over. ‘come these challenges, turn to the dhapter indicated by the cluster you have chosen, Bbrir PRIORITY PREP (continued Do | feel thar they are more powerful? That I am moce powerful? Do I know what they will do if they dont make an agreement? IF these questions seem cental to your negotition, go to Chapter 5, Alternatives, page 45, and work on those forms Legitimacy ‘Am I concei 1c that I may get ipped ef Am I treated unfaiey? Would it help to give them convincing arguments 28 te why my propos fair for them? Will have to explain to others why | agreed to whatever it is we agree on? Will hey? Are there critics who are likely to go after one or both of us? HF these questions seem central 10 your negotiation, go 10 Chapter 6, Legitimacy, page 61, and work on those forms. Communication Do I know what { want to isten fo? ‘Am I ready to listen actively and empathetically 10 whatever they say? Are the messages 1 want to deliver clear? Have [thought about how to speak in ways that will make them want 6 licen? UF these questions seem central to your negotiation, go to Chapter 7, Communication, page 76, and work on those forms. Relationship 1s our working relationship likely to be dificule ‘Am 1 likely 1 be defensive or antagonistic with this person?Dua hrs? Some examples Ken, a produce manager at a supermarket, is up for 8 promotion as assistant manager forte store. When negeiating his Silay, he wants 2 $5,000 ruse. Hee feels that his salary shoud be higher for the adltional work, an he needs the ‘money. Ken fools that he i stuck in his position and that he may have to malce 28 concession from the $5,000, He thinks tha if he “wns” his boss will lose Ken has ranked the Interests cer as most important, and the Options cluser {as his next priory. Ken should turn to Chapter 3, Interests, t0 help him get ‘out of is “position” and to avoid a battle of “concessions” Ken has looked at ‘only one solution on which he can agiee. I'uime permits, he may also wank ro ‘urn to Chapter 4, Options, to figure out more approaches to the deal for both panies. liz, an executive at Wholesale Foods (a national produce distributer), will be negotiating with Terry, 2 local fruit orchard owner, over this year's terms of agreement: quantities, prices, delivery des, transportation, ett She recalls that she and Tery ofien have different interests and preferences as far as the terms are concerned. She also believes there isthe potential of doing more 10 be mu: tually profitable. Liz should work on Chapter 4, Options, to consider how 10 ‘reate more possibilities and to look at potential trade-offs and gains ‘Seve and Cathy are contemplating buying a new car foe themselves from a lo- ‘al used-car dealership. They have put together a st of thei interests and are ready to get a deal at Your Neighbor Drove Ii—Used Cars. They are a litle wor ried about the dealer saying “no,” and they don't want fo fee! tripped into ac- cepting something that doesn’ fit theie needs. Steve and Cathy should star with Chapter 5, Alternatives, 1 think about what they will do ifthe deal does not ‘tify thelt fterests. This chapter will alo help them think abot what the dealer will do if he thinks their tems are Unreasonable. Because they don't ‘want to be ripped off, they might also work on Chapter 6, Legitimacy, 10 de termine stancards of faimess for the deal KidWorld Mig. Co. and the Ascembly Workers of America will be negotiating the health-care aspect af a new three-year contract. Ths ise has been a prob Jem in the past, with both sides getting stuck in their positions. Bosh sides want tw be able to explain to their constituents why they agreed to a deal. The pa ties also want a far deal and do not want t be enticizd for whatever decisionsThe Seven Elements of Negotiation© i £.¢ é Interests 23 et, Keep probing for more basic underlying interests by asking "why?" and “for what purpose?” Prioritize your interests Afier thinking about our interests, 8 useful {0 prtontine them, This will help us evaluate ard compare proposed options more quickly and efficient also may help us achieve the optimal result—we can rework a proposed agreement to address ovr most important interests Ifa deadline is imminent, priontizing| ‘ur interests will highligh the issues on which we should spend ove time Consider the eter sides merous Yul yourself on Other's Shoe “This isa difficult aspect of negotiation. We often expect others to see the woekd as we do, Yet we need to understand the other side's interests #f we want to propose an acceptable option. Once 2 negotiation is under way, we can inquite about the other side's interests by asking the sine questions that we ask our. selves: "why?" and “for what purpose” We can explore theie interests by sug: ‘gesting proposals and asking “What would he wrong with thay” We might also think hard about why they're saying “a0" to 2 current proposal, and why “no” might make sense from their perspective But before a neyoxtation begins, we should axspase. We m attend a prenegotition meeting to discuss interests only. We might call and ask ‘questions, taking care to frame the questions ina way that sputes a helpful re sponse: “Am I correct in thinking that you are quite concered about this issue but not that issue" “Please help me undersand your major concerns.” Alterna. tively, we might consul with people who are inthe Same profession oF indus: try as our counterpart, oF with people in our own organization who hold @ similar job. Or we might read amictes about ther oF thete business. No mater which approach we use, it will be useful to have some idea of their interests before we go ito a negotiation ‘The following forms are designed to help you kéentify and weigh the rele Galler ot Radio. Sabon buyer 80 onner ship Als. inority Management gartiigation Coenkve Freedom Alongplemm Conback —— Shork= um enh ack Lock behind we underlying, pe taterec Pa why?! ad ‘why HA? Like @ new wadow options 7 Eftechve janteno g~ PeparetronFTF Mine ‘Theirs Others ‘Whar do I care bow? ft were in thete shoes, what | What are the concems of would Tare or worry abou? | others who may be significantly affected? Personal Personal Other 25 masiness business Other 3: DATE PREPARED:Interete An example Ken is the produce manager at “Saneway," a large supermarket that is par of 2 rational chain. affer completing a few management courses offered by his em- ployer, as well as five years of service at the supermarket, he is up for a pro: ‘motion to assistant manager. He i$ about to negetiate his new salary and the ers of his new pestion Ken wants to be promoted to the assistant manager position because it [pays more and requires a greater varery of responsibilties, He wants 2 raise of at least five thousand dollars because: (1) he needs the money; @) he thinks the job requites more work, responsibilty, and headaches, s0 should pay more; (3) he's heard a rumor that Wayne, who held this postion before relocat: ing to another store, was paid five thousand dollars more than Ken's current salary; and (4) he thinks he deserves it Ken is twenty-cight years old and has a bachelor's degree in English litera ture, He has aleays had an interest in going back to scheol and geting a mas: ter's degree (although he's not sure what subject ro pursue). Money has been an obstacle to a graduate level education. His only source of funds is what he makes at Saneway, and he really doesnt want and cant afford t0 take out any ore loans. Ken lives ina modest but conaforable studio apariment with his fat cat, Margo. The apartment is at least forty-five minutes anay by car from the Saneway store where he is curently working, and there is no easily accessible public transpomation He has recently traded in his beatup Volkswagen bug for 2 new Toyota pickup truckINTERESTS 2: Clarify’ the Interests seooraron: | count: LOU surer, Promotion Mine Theirs Others ‘What do I care about? If.were in theieshoes.what | What are some of the concerns} ‘would Ieare ce worry about? | of others who may be signifi ‘cantly affected? Personal Personal ouner ts Short-term 1. tock good ther empoyees 1. Boer 2, Be perceived a0 fair “a. acod, far, ard consistent rat get taten manager 2. enough money for ret, cat feca and care, car payments, ate. vacation aye 4 health care Longeterm |. opportunity to grow and aaance 2 goback to schoo! osiness ‘Shorter 1. prometed to acclstant store ‘manager 2. reopact from employe, leagues, and subordinates 3 setting a good precedent 4 incentwes and bonuses Long-term 1. mayke get transferred to Closer atone 2, be promoted to manager ‘DATE prspansns Basiness Shoct-term 1 pay lowest salary (har he realy cares about is prot) 2. need someone osMelable to ‘adapt to charging ra rrompalises 2 Satist customers 1. sasietant etare manager reed 2: a) re accurate eles projec: one & ealan predistine 1) ete memoo to cstrct maragers & depariment heads long-term 1 relacioncnp wth vendors 2 3. rocedent 4. Groom alloyal & conmisted employee ‘good working relaticrship “done want Ken 0 get more than he desene ther 2 Consumers cheapest price stresh produce quality food aot & treraly service “sore bok rice 6 clean omner 5 Vendors longterm rlationshio access to display opace sel ao much as possible ot highest price steady market stream INTERESTS 2i Titerosts Sesparing forthe slary negotiation with Lou, Ken obviously needs to think honk what he warts. He has sated w fil n some preparation forms for hi ‘upcoming meeting. sion tas Begun his preparation by Klenlfying some ofthe people imcived Wt nustion, We Want 10 be clear about wih whom we ae nepotatber, ie 8 th Intel we wil be facing® Wheat organizations are tnvohedr we, ize ie People Who arent at the negotiation tke but who may sl be ines sper afecied by this deal As shown on the fist fom, INTERESTS talun ‘On the second form, INTERESTS 2: Cardy the Interests, Ken has stated ean Somme of is ser: and long-erm personal and business intereos, Rear, Tex impulse Was 0 write "$5,000" athe top ofthe form He then croc ting fecoure he thought that maybe "65,000" sounded more tke a postion shan wasn pimen he though funher about wby he wanted $5,000, he reaBsed Ione ta grmeanse he ranted to be weated Fiy, Ken warted to be par ms tess than Wayne, the previous asixant manager. was paid He believed dna re Shou east 3 aualifid as Wayne. He also thought that whut he realy eoned rene On CINE enough mney to pay his base living coats and cer yore tha OF use, he would also tke eat moncy ht 1 spend on pareacd things. the pone etek’ shes to enerat some of the tems on the I Cespecly ie Personal one). Because Ken docant know all the consains Lou ees i oul make only his best guess at Lou's key interests Bron aR OOk ito account the interes of thd panies who muy be af eres egorition These thitt-pany introns wil ree toe neta, Fe gtraby, because they ate afected and they may alec the negmrera et GH Rech 9 great deal but could be so controveetal ooCHAPTER 4 Options ‘What Are Possible Agreements or Bits of an Agreement? 0: of diversty—of perspectives, resources, oF inerexs—comes the op Portuity to create value. Negotiation is nx about papering over dill ences or persuading others to want what we want. li about recognizing hoot those differences can help make each of us eter off han we would have been without dea tn Chapter 3: Interests we considered interestthe wants, needs, fess, and concerns—of negotiators and those wom they represent. Those imetests axe the building blocks of a possible agreement. Options, on the eter hand ate posible sohtions 10 4 negotiation ways 10 ft thoce bulding blocks GGometimes staped a bi Ike pleces of 4 igs puzale) together to satty the negotiators and create val “The best negotiations are those in which & numberof potsible options have bbeen explore. just because a paricular resoaton ts the fst that occurred cone of you, and the fist tha you could bod accept, docs not mean the best one. The more options that are generate, the grater the chance that one of them will effecively reconcile the dering teres of the pats. To achicve an agscement on such an option, it helps to goin well prepared, ‘Common mistakes Taking a narrow; one-sided focus ‘Often negotiators prepare for 2 negotiation by uying 10 figure cut what they ‘want, and perhaps by going so far as 0 outline as many as three variations on Ophens Erp tom optans: bem morning any deci oren as : tm OP cpron 21S wot a womponest conpnitment Uh tent¢ f ¢ Opiions and creative than simple bargaining positions. The tools and suggestions in Chapter 3: Interests are designed to help you understand the iteress of the parties. in this chapter we try 10 go one step futher—to help you prepare to ‘create more value for each negotiator Clssijing the interests by how impor- tut they are to each of you serves 2s a guide for how to proceed to expand the pie before dividing st Look for ways to work togotbor 10 make more [Negotiators often quarrel over interests that are of high imponance to both. ‘This reflects the common, often-reinforced assumption that if we both value it, then the only thing left to do is divide it up berween us, in an adversarial, zero- ‘sum way: more for you means less for me. This assumption ignores the power ‘of svorking together to expand the pe. If wo negotiators both want something, the first question that comes to mind should not be “How can I ge the bigger “hae? but "How might we make more? ‘with an eye on the real purpose of negotiation—satisfying the interests of the parties—it is insinuctive 10 look at the skills and resources you each have and look for ways to combine them or collaborate ia their application to en Inance the value each will receive. In particular, consider the following ways to create value: + With similar salle and resources, the panies cin work together 10 Achieve economies of scale. i may be cheaper for one of you to produce ‘enough for wa, than for you exch to produce enough for one. Or pet~ haps by combining purchasing power, you can get a bette discount than cach of you could separately. That is value that is now going somewhere else (perhaps even up in smoke), and which by collaborating, you can [put on the table + With differnt skills and resources, you may be able to work together to create what acther of you could do on your own. What better example do se need than tno toddlers at the beach, one of whom has a bucket land the othera shovel Together, there nothing they can build + Regardless of whether your resources are the same or different, consider ‘options for joint benefit, as opposed to separate or independent benefit, “There are some pies you can make that do not lter require spiiting. be- cause you can both enjoy them together. For example, 2 donation to a Jointly chosen chanty allows you both © benefit without having 10 divwy 35Bal 6 8 iF ib 5 Marginal value of the same item Many people find that when they have several of something, they value the last one somewhat less than. those that ‘came before, To borrow a classic example from economics textbooks, i al ready have throe bananas, 1am less likely to value a fourth one as highly as 1 ‘might value an orange, of which 1 have only one. IF you, on the other hand, have five oranges and no bananas, we may both be better off by trading some of our fut. Diferences in the marginal value to each pany af some of the ‘goods under negotiation can thus create oppostunities (0 improve the overall valve they each receive, None of these value-creating trade-offs i guaranteed to work, however. Easy-to-follow recipes for suecess in negotiation do not exist. Good options «an often be invented joinly during a nege But advance preparation and the systematic consideration of opportunites o create valve will enable you 10 Identify the possiblities, dhink about them ahead of time, and take some initia~ tive in trying to create value instead of just quarreling over it "The following, forms should help. aOPTIONS 2: Find Ways to consrom Maccinize Joint Gains poe Consider ways to combine skils and resources to satisfy Key interests on both sides. Inventory of skills and | Combine similar Combine different resources resources £0 Fesourees £0 produce value produce value Me Dre paeanen; ©. ‘orrions 2€ fC € ( OPTIONS 1: Create Options to Meet Interests Look at your INTERESTS 3 form, then lit possible ways to meet the interests on both sides. (ust interess in order of their relative importance.) Possible options Their interests My interests 1. Revenue fay premium price fer promis | 1. Revenue quality 2 auainy Fay bonso or ontine detvery | 2 Guality 3. Retabiy Share cot of ereting 3. Rekabity 4 Crating ‘Advance coch at parting time, | 4. Crating 5. Competitive advantage over ta risk on rew products, ‘Bxcucive deal in exchange for Quick sr etecsive hervest other wholesalers ‘quaranteed contract to uy all hat Tery produces that meets minimum quatty stardaras 6. Access to other products © Liquaey aseng plancing 7. Brand image | 7 Shipping surance = = ‘are pmupanes prions 1z PEURPIP ALLE £1. € « € Options (Using OFFIONS 1: Create Options to Meet Interests, Liz has developed some ideas for possible pieces of a deal. at the top of both lists, we can see those things that Liz expects are important to hath of them. if only because she knows that they have expressed intereste about them in. prior acgotiations, ‘These are revenue (how much will Liz pay out and how such will Tery ee ceive for a sason’s hares), what quality prochice will Terry provide Liz; reli. Dilty (of Teny’s supply to Liz, and of Liz as a customer for Terry), aad what ‘ype of erating, any, will be used (Terry tends to prefer wo deliver his fruit in bulls filing his open-bed truck as fast a8 possible at harvest time, in order 10 ‘ct cach load delivered and the truck back to the farm to pick up more. Liz prefers (0 receive fruit already packed invo the fifty pou! crates she uses for ‘wholesale disinbution; these crates also stack better in her Warehouses, while waiting to be delivered). Collectively, these sre the things about which she and ‘Terry ypically bargain After the first few items in the “My Interesi” column, Liz has noved some ‘additional interests she has, which she expects Terry docs nct share or even think much about. These have not generally been subjects of negotiation; they. are just of interest 10 Liz. Similarly, moving down the “Theis Interests” column, iz has noted some things she assumes are important 0 Terry. from what she knows about farmers in general and hien in particular “ferry s not one to share 4 lot of information about things he considers to be “his business,” so Lie’s [Preparation in this regard is mostly educated guesswork In the center column, Liz has listed some possible opttans to satisfy each of their interests, These will take further work 10 make them more precise, but they suggest some avennes to explore with Terry In OPTIONS 2: Find Ways to Maximize Joint Gains, Lit has ied to stretch her thinkiag and look for previously unexplored opportunites. Lis has ‘dentified some skills and resources she and Tery each have. By working with these; she considers how she and Terry might cooperate 1 create mone value For each of them, with respect to those intezesis she listed at the top of both ccolurnns in OPTIONS 1: Create Options to Meet Interests—the things that they both value highly and tradnionally have spent most of thcir energy bar ‘gaining over, While her responses in these boxes will no eliminate the need 10 ‘negotiate constructively over such things as price and quality standards, they do suggest some other avenues 10 explore with Tetry to help each of them satisfy their inerests more effectively For example, Liz and Terry might consider whether and how 10 pool their different tracks, to use each for what it is best suited—Tetry might count on liz’s cloved-bed trucks 10 haul his produce from the nonheast amer of the BCHAPTER 5 Alternatives What Will ] Do If We Do Not Agree? foe every negotiation conchides with an agreement. Nor shoukl it, These Jae times when you can do beter by walking away, because the costs of the proposed agreement exceed its benefits or because someone else iS in 2 postion to offer you a better deal |Alternatives, as the name sugeess, are eter ways of accomplishing some thing, In negeiation, that something is satisfying your interests. Your interests can be stitied in two diferent ways: through a negotiated solution—that is, an ‘option, using the vocabulary of this workbook—or through some kind of sel help alernative—that i, some action you take independently or an arrange- iment you make with someone other than the perion with whom you are negotiating. n every negotiation, if you stop to think about it, you will be able to come up with several possible alematives (aoc all of tem may be atuactve, but its important to know that they exit). The best of these is what we call your BATNA-your Best Alternative To a Negotisted Agreement. For the out come of 4 negotiation to be tuly considered a success, you shoul come up ‘with an option that is better for you than your BATNA, or you should walk away. Preparing your BATNA before the negotiation 4s absolutely essential to hejping you decide when to walk or when 10 sty and talk. Many negotiators ‘come up with a“botom line" before they start negotation—but if that botom line is a umber you have pulled out of the ai it does not really help you make decisions. If you get pushed 1o your bottom line, should you wall away? “You should do so only i your bottom line fs based on what you could get else ‘where, your akernatives; and only if the best of those, your BATNA, is better ssFE c Alernatives The well-prepared negotiator ‘not your BATNA Never underestimate the power of knowing what you will do if you do not reach agreement. twill give you much greater confidence during the negotia- tion, whether you reach agreement or not. I will keep you from making mis takes by accepting something that is not good enough—compuared not to some arbitrary notion of what you or ethers want, o think you can get, but 0 some= thing concrete and feasible. 11 will help you decide when to walk away and when to stay, nithout all the anxiety that such a decision tens to provoke, In= vesting tine 10 think about not just one alternative, but several ways to satily ‘your interests, and determining which akemative is best will pay off, even When you never have (0 use your BATINA. Remember that your BATNA is not just another way to pressure them t0 give in, Iisa powerful concept to help ‘you focus on what you really want to accomplish, and the diferent ways in ‘which you can do 90, without having to accept a deal with terms that donot well suisy your imerests Strengeben your BATNA Aliernatives are rarely fied in stone. ‘Taking @ moment to step bck and think about how to make your BATNA easier, more probable, or bewer at stsfying {your ntetess can improve the outcome of 1y of your negotiations. Think about it. If you will only accept a deal that is beter than your BATNA, by im proving your BSTNA you guarantee yourseif 4 better result: if you reach an agreement, it will be better and if you do nes, your BATNA will be better 100, Having a sttong BATNA, and knowing so, will also boost your confidence du ing the negotiation Consider their BATNA All negotiators have a BATNA, whether they have though! about & OF not. AS You prepare to negotiate with someone, « would be useful to know ot what point they should wall out of the negotiation. While you may never be able £0 figure out such a subjective thing wah any degree of confidence, you may be able to make a pretty good guess at what they might do if you do not reach aALTERNATIVES 1: Think of My Alternatives to a Negotiated Agreement My key interests: ‘What could I do to satisfy my Interests If we do not reach an agreement? Possible alternatives Pros Cons DATE PREPARED: Arremverives 1eS ALTERNATIVES 3: Identify Alternatives Open to the Other Side ‘Their key interests: What could they do to satisfy their interests if we do not reach an agreement? Alternatives: Pros Cons Dare paepanen: Acreenarives 3ce ernanes An example we Steve and Cathy ae thinking of buying a new car They have looked around a bit a cars their friends and neighbors are driving and have chechec! the local . paper for adverisements. They think they wil want to trade in their current jalopy, a twelve year-old gas guzzler with over 100,000 miles. Steve and Cathy have done some advance preparation, thinking hard about their icerests in this transaction. "They care a lot about the car's gas mileage, both because of the cost and because they worry ahout the environmental € damage that buming fuel causes. Steve and Cathy are expecting to have a child ‘sometime in the next couple of years, and they woul Hike @ practical and safe & cca in which they could put the legally required infant restraints when the tine comes, Because they commute to work togeiher (Cathy drops Steve off and parks at an uncovered lot near her office) and use that time to chat, they don't L ‘much care about the car's sound system, but they do care about the car's ape x pearance and is ability 10 stand up 10 the westher year-round. Finally. being u relatively ignorant about automotive mechanics, they would prefer a car that, \would not give them much trouble and a reliable, convenient service center to take it to when necessary. The dealership closest to their home, and therefore \ the most convenient, is called Your Neighbor Drove It—Used Cars.ALTERNATIVES 2: Select and Improve My BAINA Of my alternatives, what will I really do if no agreement Is reached (my BATNAY? Why? #4: Another dealership—mects mast of the same Interests as buying free Your Neighbor Orove i except comerience cf lcatien ‘What can I do to improve my BATNA? (White down concrete steps you coull take to improve your BATNA even before you go into the negotiation ) 1) Call Better Busincos Bureau and ask for references: 2) Find ost local mechanic could come wth us. im excrange for prom 3) Visi the ocher dealership to see what they have is to bring car to he for servicALTERNATIVES: Estimate Their BAINA wana Sessa ay counmmananr, Seieopeteon seoner, 5 ‘What would I do in their shoes? (Which oftheir selthelp alternatives looks best for them?) 14 fr out tow much | could sel to Rent-A-Bargain tor but keep trying to cell to anther customer ‘How might I legitimately make their BATNA less attractive? ‘By making i harder to pursue ? By influencing their perception of how lunavse oF costly might be? Leave an offer with 2 small deposit gcad for one | Find out what Rent-A-Bargaln might pay for a week aru tet his bove know: (IF he knows iis ‘siilar car. Comment on number ct simiar care "bold" he leve ely to put eftor or publty | advertised in the paper Into improving tre offer) Dre paeraweD; ‘AETERNATIVES 4Mleratioes “This helps them decide that their BATNA is probably to buy a car from a differ- ‘ent deslership—mest likely a used.car lot in a neighboring town. If they think that & their BATNA, they should think about how to improve 1 Afterall, Steve and Cathy will only accept a deal fiom Your Neighbor Drove It that is at least a5 good as thot they can get from the dealership in the next town, Knowing this, they are more certain about what kind of deal they can get ‘at the new dealership, The better this akernative deal meets theie interests, the ‘more confident they will feel in negotiating with the salesperson at Your Neigh- bor Drove It In order to improve their BATINA, Steve and Cathy will make some phone calls and then take a drive out to the other dealership 10 check out ‘models and prices before they do any serious negotiating at Your Neighbor Drove It You should consider a number of possible alternatives, evaluate them, and think about how to make thera real. Even though there may be one alternative that seems obvious, dont stop there. Think about three or four different ‘ways—outside your current negotiation—io satisfy your interests. Then think about how well each one meets your interess and about what you would do if you wanted to pureve that alternative instead of accepting an offer i the nego tiation. Choose the alternative that best meets your key interests, This is your BATNA. Can you improve 1? The bewer your BATNA, the moze confident you will feel in the negotiation, because you know you will not have to accept an offer that not atleast as good for you as your BATNA ‘Whether they cal it that or nat, the person with whom you are negotiating also has @ BATNA. They will do a deal with you only if shat you offer is better than theit walk-away alternative Steve and Cathy tried (0 get Into the shoes of the salesperson from Your [Neighbor Drove It (as much as they might be able 1 do without actually meet- {ing him) and invested 4 bit of time in thinking about what seme of bis alterna tives might be. They filled out form ALTERNATIVES 3: Identify Alternatives Open to the Other Side. “They stared, of course, by thinking about his possible interests and came ‘up with four likely ones: (1) earn commissions from sales; (2) et referral bus'- ness; G) generate future business for service department; and (4) look good t0 his boss, ‘Based on those interests, it seemed to them that the salesperson's most likely alternatives sould be: (1) to try to soll the same car toa different customer, (2) to ty to sell the car to a nearby carrental outfit that specializes in olds, used ‘cas (Rent-A-Bargain); or () co sell dhe car o another dealer or 2 wholesaler.CHAPTER 6 Legitimacy What Criteria Will I Use to Persuade Each of Us That We Are Not Being Ripped Off? H-= ‘well we understand the interests of the other skle and however ingeniously we invent ways of reconciling interes, we will almost al ‘ways face the harsh realy of nterests that conf. Some negotiator Uy WF solve these isues on the huss of willpower. am more stthborn than you ae, so give me what [ want” of “I demand fifty dollars, and that’s that." But effe. sive negotiators persuade tei counterpans. They understand that is usally more persuasive to convince the ether side that a given resuit would be far rather than to convince by stubbornnes. Arguing about wha they sl or wont do creates cones in which te eter sie knows tha subkomness nll be re svarded, That is not an incentive we would lke (0 create for either side. We ‘sould ike both pares to be open to new ideas We are not saying “Be fir to be nice” or even “Be far to produce a fae ‘gscement.” These ae possible by-products. We are sgaesting that crtena of faimess are vahiale af a sword 0 persiade others and as a shill to protect ourselves fom being unfny trcte To protect me from being ripped I woul like to know tha proposed outcome is fair as measured by some extemal standard nd to convince the cre side that they ae not being nipped ff, would like to persuade them that ‘uat am asking them to doi egitimate—it ithe sgh thing oo. IFT am gor ing to persuade myself and the other side that a given agreement i it, Il ‘want to nave on hand some external standards, precedents, or ober obecive ctiteria of legitimacy. Such principles and standards help ‘negotiators choote among the options they have generated and give both sides something to point to shen explaining why they accepted negotted agreement on‘convinced that there is only one right answer is recipe for a tense, adversarial negotiation in which someone wins and someone loses. A well-prepared nego- tiator bas at his or her fingertips a collection of possible principles or erkeria that might be used to define a range ef reasonable solutions to the issue being negotiated, and several points within that range ‘The well-prepared negotiator Develop a range of fairness Very few negotiations have only one right answer. The element of legtimacy helps 10 natrow the range of possibilities to thoae that treat each side fairy, Note that fairly does not always mean equally —fair not always spliting everything down the middle "There are often. good reasons why some other arrangement may be appropriate. To be well prepared, you should consider @ broad yatlety of objective criteria that might help you and your counterpan fig- lure out what is appropdate under the circumstances. By looking outside the will of the parties, 1 external standards oF principles, you cin avoid getting Into a battle over what you will or will not do and discuss what you should do, Having a variey of standards available 10 you during the negotiation wil help you avoid geting locked into 4 positenal bute over standards. Preparing before the negeriation several possible sianclads or entena that might be per suasive to an outsider will also help you become more anace of how your ounterpart may be thinking about the situation. And the beter you undersand where he oF she is coming from, the more effective you can be. By being well prepared on a number of eifferent standards, you can also put forward those that are most advantageous 0 You, yer do so constnucsvely and persuasively Consider “fair” processes ney to find a principle or a standard that helps you and your counterpart reach agreement. Often, even after using objective criteria to define some ctitside hourdaries fo the possile agreement, you 2re left needing some ‘way to make the final leap from possibilities 1o a deal. In those situations it pays off to invest time thinking abou procedures you might follow that will feet fair. Think about ways of deciding, as opposed to actual decisions, that have in- trinsic appeal to both sides, because they feel reasonable or because they areLEGITIMACY 1 Use External Standards as ee a Sword and as a Shield What specific substantive question has to be answered in this negotiation? Possible standards (precedents, benchmarks, prior practice, accepted principles, etc} Place exch standard along a range from least favorable to you to mos each standard, indicate what that standard would mean in this case favorable to you. Below east Standards: Nest sorable SS See to ts Other standards that may be relevant or that require research: DATE raEraneD: uermscr 1LEGITIMACY 3: Offer Them an Attractive Way =om° to Explain Their Decision = If they had to explain the result of this negotiation ro someone important to them, chey could convince their constisuents with the following few points: Dre Pepawen: Lscerimncy 5secomaron: Union tear LEGITIMACY 1: Use External Standards as ME @ Sword and as a Shield eee oak aaa ‘What specific substantive question has to be answered in this negotiation? How much of total cose should company pay? Possible standards (precedents, benchmarks, prior practice, accepted principles, ete Place each standad along a rane from least favorable to you t most favorable t you. Below teach standard; indicate wal that standard would mean in this case. Fortign fer “KidNond US. KidHaer compeitore mig. co. Current eel toy: teas soe a ee ee Other standards that may be relevant or that require research: Infaton = Slyr teat care hflation = 12t/yr Saared workers at KiaNoria= 7 Pension plan matching centsoution = 100% Percentage of total wages employees must devote ta neslth care =? Conpared to: Salariea workra? Foreign competitors? Kicsuen Stores? acrimaey 1LEGITIMACY 3: Offer Them an Attractive Way _“#otaten: Yen team ___ ‘covsrenrart: Korld tear to Explain Their Decision upuer, Heath care bending IF they had to explain the result of this negotstion to someone important to them, dhey could ‘convince their consizuents with the following few pois 1, “Mio io ne with other tenets a KidNov and wth industry practice? 2, “Wee holding the neat level that keeps ve compete” 3. “Wo ony far to gue employees a chance to participate in dcideg how health care dota are spent for ‘their own benoit. Ne want the save thing when ttalers pend cur money on averting” Dave Peepanep: tecrracy 3« o¢ ¢ Pink ws uk ak whe ae dak Mee Oe enehee tLe ¢ ¢ ‘with the salaried workers at KidWorld? With assembl-line workers at the dreaded foreign competitors? With KidHaven Stores employees? So fir, the preparation has been focused primarily on coming up with ob fective criteria and quaniffable standards that the KidWorld negotiators might find persuasive as a way to set the percentage of oti healh-reated expenses that the company will pay. These numbers and standards should focus discus ion more on the merts and on what the parties should agree to, than on what ‘each is or is nt willing to-do or to demand from the other There are also other ‘useful principles thar the Assembly Workers’ negotiaing team could consid “applying. Ne tum to those next on the second form, LEGITIMACY 2: Use the Fairness of the Process to Persuade. ‘One avenue for persuasion iste think about the process of deciding. Instead of trying to come up with an ansnver, we look for agreement on 2 way of reac {ng an aecepsable answer. As kids we sometimes cid this inuiively: "You cut choose" was & common way of ensuring the fair distuibution ofa tasty treat. "When there was no way to split or compromise benveen two possibilities, flipping a coin sometimes helped leave ito chance as to who would prevail, “These and other processes felt fair because they depended on something other than who could bang the table the loudest. They appealed to seme fundamen- tal sense of what was far. What worked then can stll work today. Part of good. preparation for 2 dificult negotiation that & likely 10 get positional around some very concrete issue is to consider what process might seem sufficiently ir to both, that it might serve to overcome an impacce on the substance “The Assembly Workers found no equivalent (0 “Teut, you choose” oF flip~ ping a coin, but they did thin that “Final offer arbivation” might be appealing 26 4 las tes0n. Final offer arbstaticn isa process by which each side submits 10 4 neutral arbitrator Gomeone both sides can accepd its final, binding offer to resolve 2 negotiation isue along with an explanation of why that offer is ap- propriate. The arbitrator then is required to choose one of the two, rather than =plt the diference. This process is designed to encourage the panes 10 submit reasonable final offers, or else run te risk that one side's offer sill seem more “reasonable” than a more extreme offer. The Assembly Workers also found another potential persuasive process for agreement: the parties might agice to 4 panicular health care cost contribution bt also agree that the Ascembly Workers will be entitled 0 “most favored ma- Won” status—that is, sf Kid World, in negotiations with other unions Cranspor, office workers, maintenance workers, etc), gives anyone else a better health cate paceage, the Assembly Workers package will be adjusted 3Legitimacy 3 petitiveness. Working to come up with these explanations suggested 10 the As- sembly Workers that the deal itself will have to include some element of pro . ductivity gain or some other tie-in 10 the: competitiveness of the company. ‘Without ths, the KidWosld negotiators sre unlikely 10 be able to sell it to their‘Common mistakes Focusing on rebearsing lines When negotiators spend most of ther energy thinking about what they are go- ing to say’ to the orler side, they are most ikely 10 say the weong thing. One of the most common prepaiton mistakes 4 to focus on rehearsing lines. Com- forting as it may be, such rehearsal tends to limit our ability 10 do something, ‘much more important: to listen and to understand, The problem is not so much ‘one of rigilty—stcking to the preparcd text even after itis discovered to be i= relevant or obsolete—Dut one of perspective and atention. If you wet ready by thinking about what you will say, you will end to be unprepared for what they have to say of for how they might interpret what you do say. Ienoring blind spots Atany given time, a negotiator can perceive only a part ofthe whole puzzle of interactions, perccptions, and intentions. As we ac, we tend to be aware of our own inentions and our ow petceptons. Bae we simply cannot know how our Our words of actions will be percened by them or what impact they wil have. Similarly, when we liten and observe, we can ty to be aware of what they say and do, how we perceive that, and what impact « has on us. Dut ty a8 me ni \8e cannox know their intentions or their perceptions. ‘These limitations do noe themselves keep us from being effective negotia- tors. But ignoring them andl acing as if we could! be cemtain abour their inten tions, oF cenain how our actions have an impact on them, sill interfere with ur ably 10 work effectively together ‘The well-prepared negotiator Prepare for teo-way communication ‘The traditional advice t0 negotiators is 0 listen carefully. Regardless of inten= tions or Favored tactics, listening to the other side, so that you can then make {good choices about what to do and how to do i, is universlly important. What cgotiators often neglect, however, preparing to listen. Extensive research into how people communicate demonstraes thatthe ability to listen can be m= 7COMMUNICATION 1: Question My Assumptions and _*sorsrom: Identify Things to Listen For Ne The fis step in dealing with your blind spots 's 1 become awate of them the lefchana columa, list your wwtite down key ph assumptions mptions about their intentions and perceptions. ses your countess ye right-hand cohama, wight say that should lead you! to question your My assumptions ‘Things to listen for CLassume that. are a comwestesriox 1é OF 8 £6 048 5 ‘Communication An example Because both communication and relationship are elements that focus on the process of the interaction between negotiators, we will use the same example in the Communication and Relationship chapters, Doris has had a sunning argument with her landlord, Pedro, forthe last few months. She wants him to paint her apartment and make some minor cosmetic repairs, and he refuses, Doris is quite unhappy about the situation—enough so {0 consider moving out That would be a tremendous hassle right now, given ‘everything else that is going on at work and with her family Doris has bea living in this apartment for about two years, The apartment is great in almost every respect—good neighborhood, conveniently located, spacious. She was quite pleased with herself when she found it, and she ack ‘cepted what was for her a relatively high rent, deciding it was worth it 10 have aa hiome she realy liked. Recause Pedro had painted the apartment the year be fore, Doris did not insist on the usual between tenants paint job, it was also ‘more convenient to take the apartment as sooa as it became available. But iis ‘now two years lates, and a couple of rooms are really showing wear. In fact Doris tas had 10 rearrange some bookshelves and move some framed prin’s around (0 Uy to hide peeling paint in places where apparently moisture and temperature changes (the building seems not to be very well insulated, and the windows are old and a bit drafty) have done the worst damage: The first time she asked Pedio if he would have the apartment painted, Pe- ‘dro gave her the brushvoff. When she insisted a few weeks later, he became quite agitated, complaining that he wasn made of money and telling Dons not 0 be'so fussy. Surprised by the reaction from her normally pleasant and polite landlord, Doris backed off In fact, whenever she had previously asked Pedro to fix bile things (bad light switch, stopped up sink) he had done 50 without argument. But she continued to be unhappy by the look of hier apartment, and after one of her frends commented on the peeling, Doris went back to Pedro, This me he was even more emotional and became verbally abusive, suggest- ing that if there was anything wrong, it was probably her own fault and that she should not expect him to fix what she had damaged Doris has decided that she does not just want to leave thing as they are. She ‘wants her apartment painted, and she wants to be able to get along well with her landlord for the future, She has decided that before approuching Pedro again, however, she wants to prepare more carefully to deal wth the surprisingly emc- ‘onal reaction she has gotten so far and to improve their communication¢ «6 626 6 6.8 ¢ ¢ ec ty COMMUNICATION 2: Reframe to Help secorieron: Doris ‘couvrennynrs F620 ‘sunpecrs Paintna/ repairs Them Understand Your perspective How might they hear i (ist 3-5 statements you ‘or each statement, list your might make to clearly put | counterpart’ possible forth your interests.) response, e.g, "Yes, but Sa (| ect | eas as |. Lam embarrassed by peeing paint. 2. Ipay alot of ront. 2 We ved hete 2 years and | avert asked for much 4 | gave you a break when | rroved inwithout nsiotng you repaine DATE PRERARED: 2 Weroc co bad, be Doris is probably responsiole for the damage, 2 Marke rate tin not getting rch from this |. Standard is 5 years bebween pair jobs. Tim a good lanclond—fue always Fued anything ohe asked for 2. Ie didnt need i 1 Apt in general is greats but condition ofa few rooms to Quite bad, possibly because of moisture. 2. Aphis mmoderate to high rd of market: snout’ ‘that mean mod. to high end of maintenance? . Nowmsl peactze ie 5 years or change of tenant in thie cace it has been 3 years and change of ten ‘nt, and an unusual winter moisture problem that hae darseged sore room ‘more than normal near ard tear. How shoud we deal wih that? 4 Ive never been one to) Inst on techncalties: when 3 paint joD wasn't necessary, | agreed to do without. But new | thine ‘the apartment needs ‘some work. ‘conmuxrearion 2Communteaiton ait - as she thinks about it, it occurs to her that perhaps he has signaled other inten: tions by asking about the nature of the damage. He might do that by asking to sce it or offer some guess as to the cost of repairing it As to Pedro's percep- e tions, she really draws a blank—how might Pedro actif he doesnt think she's tying to take advantage of hin?oe" ¢ f ¢ ‘elationsbip with those of subsiance—numbers, dates, serms, and conditions Paling 0 dis tinguish between the two as we get ready to negotiate i Ukely to leave us try. ing to fix a relationship by making substantive concessions, and vive wor Neither will work. If we have a relationship problem—for example, lack of must oF respect—iying to deal with it by dropping our price or agreeing to ac: cept their conditions on some substantive term will not remedy that problem (On the contiary, t may well each them that t get concessions from us, all they need to do is act hur or distrust Assuming that the reationsbip isa “given” ‘and that “Its thet fault” Perhaps because we spend the First years of our lives in relationships over Which we have lle contol, many negota‘ors tend to treat their welationship With the other negaiator as something that "just occurs,” 4 product ofthe situs tion. Ifthe relationship sours, our usual response may be to blame the other side. In ether case, we may assume that there i de we can do to improve the sation, If there is litle we can do anywy, then why prepate? that lie of thinking creates a selling prophecy and we do, indeed, exercse litle con trol over the quality of our relationships. ‘The well-prepared negotiator Prepare to address relationship and subsiance independently ‘You cannot cure hurt feelings with substantive concessions, any more than you ‘can make up fora significant less of money with an apology. Not should yeu attempt to do so, I you allow substantive and relationship problems to become mixed up, you confse matters and undermine beth your reltionship—teating it as if it were for sale, or allowing i to be held hostage to some substantive term—and your ability to negotiate a deal on the ments. In order to keep relationship and substantive issues separate during a ne ‘gotiation and to deal with each of them well, you'l need to identify which are “substantive” issues or problems and which ate “relaionship” or “people” prob- lems. Substantive problems perain to the content of the negotiation —price, terms, conditions, dates, and so forth. Substantive issues tend to be those that ‘we think should “be resolved” by the end of the negotiation. On the other hand, relationship issues tend to affect the negotiation itself we may feel weRELATIONSHIP 1: Separate People Issues from Substantive Issues Describe your relationship. (Use adjectives) ‘inch Separate the relationship from the substance Substantive issues and problems (avoney terms dates, and conditions) Substantive options and remedies Relationship issues and problems (eeiabliy mutual acceptance, emotions, et) ‘Ways to improve the reladonship (take sire these are not substantive concessions) avr pRenansRelationsbip An example Because both communication and relationship ate elements that focus on the process of the interaction beiween negotiators, we will use the same example in the Communication andi Relationship chapters Doris has had a running argument with her landlord, Pedro, for the last few months. She wants him to paint her apastment and make some minor cosmetic repairs, and he refuses. Doris is quite unhappy about the situ Yon—enough so to consider moving out. Thar would he a tremenclons has- sle right now, given everything else that is going on at work and with her family Doris has been living in this apartment for about two years. The apart- ment is great in almost every respect—good neighborhood, conveniently located, spacious. She was quite pleased with herself when she found it and she accepted what was for her 2 relatively high rent, deciding it was ‘worth it fo have a home she really liked, Because Pedro had painted the apartment the year before, Doris did not insist on the usual between- tenants paint job, it was also more conyenient to take the apartment a soon as it became available. But itis now wo years later, and 2 couple of, rooms are really showing Wear. In fact, Doris has had t0 rearrange some bookshelves and move some framed prints around to try to hide peeling, Paint in places where apparently. moisture and temperature changes (the building seems not to be very well insulated, and the windows are old and 4 bit drafty) have done the worst damage ‘The first time she asked Pedio if he would have the apartment painted, Pedro gave her the brust-off. When she insisted a few weeks later, he be- ‘came quite agitated, complaining that he wasn't made of money and telling Doris not to be so fussy. Surprised by the reaction from her normally pleas ant and polite landlord, Doris backed off. Infact, whenever she hac! previ= ously asked Pedro to fix litle things (bad light switch, stopped-up sink) he hhad done so without argument. But she continued to be unhappy by the look of her apartment, and after one of her friends commented on the peeling, Doris went back to Pedro. ‘This time he was even more emotional and became verbally abusive, suggesting that if there was anything wrong, it was probably her owa fault and that she should not expect him 10 fix ‘what she had damaged Doris has decided that she does not just want to leave things as they6 NE 6 RELATIONSHIP 1: Separate People Issues from Substantive Issues stonron: Doi counenmanr: Pedro simpecr: Faintivafrepairs Describe your relationship. (Use adjectives ) Dficule, emovional about this tesue, Separate the relationship from the substance Substantive issues and problems ‘ney, terms, dates, and conditions) Cost of paint Labor Nuriber of years between paint jobs Amount of rent Relationship Issues and problems etinbity, mutual acceptance, emotions, ete) Foor communication Personal attack Blaming Substantive options and remedies Consider referring to the chapters on Interests and Options.) Prat only problen area Paints now. and sign a longer lease (2-3 years?) Fv windows, et. that caused damage Share cost Do the work together orer a meshed ‘Ways to improve the relationship (Make sure these ae not substantive ‘concessions ) Meco to talk about other things Fosus on Future instead of past Ask questions Listen ard paraphrase back Invite Fedro to look end ack for help figuring out ‘the cause ofthe problem ‘DATE PREPARED: — RELATIONSHIP 136 HAPTER 9 Commitment What Commitments Should I Seek or Make? O« se prepare for a negotiation by thinking about where 1 bepin Good negodators begin by thinking about where they would like to end up. This undetstanding enables them 10 char ut a pa fr geting ther A the condusion of nepotation, unless they decide to walk anay, the pares anake conmuiments. These are axicentents about what each pat wll ly do, For 2 negotiation to be considered successful should be clear, well planned, and durable. Only by having a clear notion of what kinds of commitments would be de- sirable as the end product of each meeting anc! of the negote tors be fully proactive and purposive. Knowing like 10 end up 48 not the sume as having a negotiation position fixed in your sible hettom line, But understanding. whether the purpose of the next meeting isto ere you would mind, nor should mean having an in! uch a final agree to explore some possible options will make a hig difference in what you dis cuss and how you discuss i, Similarly, knowing that a workable deal must ad. dress not only price, but also delivery and pay-ment terms, and that & must set ntrolling quality and managing the inevitable disagreements that will rice, will make it more likely that when you ate ready to reach a final or simply cout a process for agreement you will have adequately discussed all the terms ‘whether oF not your negotiation realy is a success, oop ee ee e@eoeeeeCommiimost Common mistakes Not knowing what “done” looks like Many negotiations begin by having the parties name an ise or ‘wo they need to resolve—price and delivery date, for example. Over the course of the nego- tiation, they discover Gf they are lucky) a number of other issues that, if ig- ored, could undermine their agreemeni—such as form of shipment, insurance, {quality assurance, payment terms, etc If they fail 10 discuss how they will ad- ess some of these issues and, perhaps, some contingencies like unavoidable delays or even the need to cancel the order, each side will simply do as they sce ft. The consequences may be a damaged relationship and 2 deal that is not very durable. Assuming everyone knows what the meeting is about ‘Another common mistake in preparation is to assume that “everyone know ‘what the mecting is about and that, therefore, they are in agreement about shat should be accomplished. A common assumption that a negotistion is (0 be about "how to deal with this problem” may not mean that everyone agrees. that the product of the meeting should be an acion plan. For some, a good re- sult of the negoti ily be that information is shased and that a date and time are set for a future meeting. Although there is no “right answer" about ‘what the product of each meeting should be, phinging, ahead with uetested as. sumptions can leave everyone frustrated Failing to determine actions needed to reach agreement Negotiators sometimes fail 10 think carefully through the sequence of events thar will be required to reach an agreement that is ready for implemencation Just because you have authority to commit your side, and you are meeting with ‘Someone who also seems to have that capacity, does not mean ether that the ‘meeting should result in a final accord or that if you do reach one, it can be ‘smoothly Gif at all) put into action. We often fail © remember that a “decision” does not always translate into acion—if the necessary steps have not been thought through and if those whose collaboration is required have nex been ‘considered or consulted. *Domece vise e CULE CeCe ee rece ee tem x Commitment fagenda, some ground rules, even a sense of the kind of space or equipment you might need. ‘lan the process forgetting to a commitment Some negotiations start ancl end in one meeting, aad the negotiators themselves ‘can and do make all the relevant decisions and commitments, Others, particu lally in the worlds of business and public policy, are much more Complex. Reaching a good outcome requires not only a sexes of mestings at which the 'ssues can be discussed but also a number of activites before an after exch ‘meeting. to ensure thatthe necessary information is collected, the righ people are consulked, and potential pitfalls are explored. Managing that sequence of in- feraetions, some on our side, some on theirs, requies the kindof coordination and communication that can be achieved only with good advance preparation. ‘As you get ready for 4 negotiation or for subsequent meeting in an ex ‘ended negotiation, ts often useful to prepare a one-sided drat of a possible ‘inal agreement. This may not be complete. It may not be a proposal that you ‘ill make tothe other side, It wil, however, stimulate clea thinking about the kind of commaments you might like and can realisically expect, Also, take some time to think not only about what will have to be included in your deal for the commitment to be durable and operational, bc bow you willbe able to pot together that commitment. What steps will be requised? Who wil have to agree in ordes to move fiom one stage of the process to the next” Who will make the final decision? What kind of faformarton, tools, peopl, or resources vill be necessary to accomplish the varus task —inchiding communicating et {ectively with the other side and with imerested bystanders, brainstorming p= sible creative solutions, vesearching objective standards to help us resolve ifcult issues, and exploring our walk-away alternative Its offen useful to tempt to draw a diagram of the various activities or events that will be required for the negotiation to be successful, and attempt to list what may be required for each activity. f you can put all this on a realstic tiling, you are moce likely fo be able to tackle the complexity ofthe negetistion headeon and man age the process constructively, Use the forms that follow to help plan your commitmentsCOMMITMENT 2: Plan the Steps to Agreement “snsron: Decision makers: names of those who will ‘sign” the agreement Implementation: information that the agreement should include about what happens next Implementors who should perhaps be consulted before agreement is final Possible obstacles to implementation ‘Ways to deal with obsiaces: Steps necessary to get to a binding agreement Target date 1. Tentative agreement on issies to be included Pa 2. Clarification of interests on each issue 3, Discussion of options for handling each issue: 4, My draft of a Framework agreement 5. Joint working draft of possible agreement ae 6 Final text ready for signature: en Dare raeraneD: coNMETMENT 25 yeah stconaon: Ma COMMITMENT 1: identify the Issues to Be common TS Included in the Agreement semucr, Joint vente Overall purpose of negotiation Eetablah jot venuure wth MAantage Software Expected product of negotiation (Draft a table of contents for 8 final agreement that would be operational aod duraite ) 1. Name of jist venture 5. Action plan for integration 2) bmerable 2. Joint venture purpose, busiees defiition. pate ‘and limits 2) location 3. Contebtions of each partner A) budactoa tala Souitaes 2) rasta ug ang nv san 4) eqaty shares 1) board of rectors } management precees Specific purpose of next meeting \Whop up open iscues ond reach agreement ‘Tangible product of next meeting {af you could imagine the piece of paper you would proxivce during ris meting, what would it __Atist of options for further consideration? — Am action plan for Further work necessary before an agreement would be possible? delegate to 2. Accurate eoles projecticrs 4. Someone to tate care of writing memos to headquarters 5: Semeone exile Happy customers Contrued sales 7. Good reputatienOPTIONS 2: Find Ways to Maximize Joint Gains Consider ways 10 combine skils and resources 10 satisfy Key interests on bosh sides. Inventory of skills and Combine similar resources to produce value Combine different resources to produce value Management sis Dedication Enthusiaem S years experience Wweting ability Monay Trainin programs Advancement opportunities Dedication vo customer Par! +4 power for benefits Work on a plan to increase customer satisfaction and make store a showcase Work on plan to have me help vain rew staff Develop a traning and advancement plan For me ‘thar keeps me productive ‘and growing my mrtg oll to work for Sanewas: marketing now trabing materiale Give me more beneice & ese ay, $0 better for me ans cheaper for nowy ornoss 2ALTERNATIVES 2: Select and Improve ea My BATNA suxgecr: romotion (Of my alternatives, what will I really do if no agreement is reached (my BATNA)? Why? #3: Look for other posticrs nih Sancway, combines opporturity for growth with wer ik. ‘What can I do to improve my BATNA? (Wie down concrete seeps you could take to improve ‘your BATNA even before you go into the negotiation ) ‘Ast Peon Dept. about postions that \ would be terested iniqualiied for and tkelhoed of thee opening up DATE PaEPaneD: — suregarivas 2oe ALTERNATIVES 4: Estimate Their BATNA ‘What would I do in their shoes? (Which of thei seithelp alternatives looks best for them?) 3; Shift responsiliteo and ebminace positon How might I legitimately make thelr BATNA less attractive? ‘By making it harder to pursue? Eiplan vo colleagues how important the acct. ‘manager position ie and how it helpe them do ‘their obs (20 that they' resins clminatirg It) By influencing their percepeion of how unwise or cost it might he? Remind Lu of everything Wayne dd to make things function smoothly AcreRNarIVES 4LEGITIMACY Use the Fairness of the Vn Process to Persuade ‘suypcr, Promotion Persuasive processes 1 you cannot agree on an answer, you might agree on the process to find 2m agreeable answer one of the following looks interesting, how might you apply it to this case? Teut, you choose" Flip a coin Get an expen opinion ‘Ack an employment corvice what the gong rate wold be Let an arbstrator decide ‘The test of reciprocity In some cases, eciprocity can be very persuasive, Ate there some negotiations in which your ‘counterpan is in position similar to yours? ‘Yea when regotiatig his onn salary It so, what standards or arguments does he or she we in the skuation? Probably the value of his experience How could you apply those standards or arguments here? Focuo on what ve learned and sccompliched in years Dare pmeranzp; nsrromncy 2COMMUNICATION 1: Question My Assumptions and s*eonsrom fe Identify Things to Listen For cousenranr: LOU sumpeor, Pomotion “The firs step in dealing wieh your blind spets i to become aware of them. In the left-hand ‘column, lit your assumptions about their intentions and percepsions. In the righc-hand column, write down key phrases your counterpart might say that should lead you to question your assumptions. My assumptions, (assume that, Louwon't want to ive me the position Louwont want to gue me the raise I art. Lou doesnt think thave enouah experience for the job ou thinks am perect for tne jos Dare paePaneo: ‘Things to listen for Lou eave, “Tm pleased that you are ntereatza n the pootion”| Lou says “Inant to be fale about eslary™ Loa says, “Youve been work here quite some ‘ime, ard | row you area qualified canddate” Lu docsrit ook me in che aye and neie ares when alg about me ard Se job CConmenteTtON 1rr RELATIONSHIP : Separate People Issues _from Substantive Issues Describe your relationship (Use adjectives) Separate the relationship from the substance Substantive issucs and problems Cooney. terms dates, and conditions) Salary incresce Responsible Relationship issues and problems (otabitcy, mutual acceptance, emotions. ete) Relaie formation (eg, about what Wayne or ethers mate) Substantive options and remedies (Consider referring tothe chapters on Interests ate! Options) Petter benefits (neath package, vacation ome) Paying for education Bera training ‘Ways wo improve the relationship (Make sure these are not substentve concessions) Use objective standards ‘Ack Personnel Dept for data on average salaries for certain roles RELATIONSHIP 1RELATIONSHIP 2: Prepare to Build a Good Working Relationship ‘What might be wrong now? “What can T do What might be causing any present mis- understanding? Rumor mil What might be causing a lack of trust? Lack of rable information ‘What might be causing one or both of us 10 feel coceeed? Lou's need to get the rele fled ‘What might be causing one or both of us «0 feel disrespected? ‘What might be causing one oF both of us £0 get upset? ere prepsnev: — + to try €© waderstand them better? Spene directly and et aside goselp 10 demonstrate my rellablity? Don't make aozertiers or claims about things | don't know 10 put the focus on persuasion instead of coercionz Otter to etare fing in on some aset. manager tasks fora week, nile we work things out +10 show acceptance and respect? to balance emotion and reason? RELATIONSHIP 2ee — ——_—_— _ —— COMMITMENT 1: identify the Issues to Be seconaron Key Included in the Agreement sapon Rost Overall purpose of negotiation recuse promoscn ar salary opportunity Expected product of negotiation (Draft a table of content fora final agreement that would be operational and durable) eb reoponsibiies Salary Train plan Stare date Schodde Specific purpose of next meeting Renew specie rabong tor position Tangible product of next meeting, Lf you could imagine the piece of paper you would prochice during rots meeting, wht would & contain?) x A list of options for farther consideration? An ton plan for further work necessary before an agreement would be possible? ‘join recommendation to your respective organizations? An agreement in principle? A signed contract Commitments toward the next eps? Other ‘conmerment t(Getting Biter at Preparation An example liz isa regional manager with Wholesale Foods, large and growing national produce distributor She is responsible for managing. relationships wiih supp ‘rs, mostly small farmers in the sate, as well as customers of Wholesale Fool ‘who range from small comer grocers to the stores ofthe largest regional super- ‘marieet chain. One of the suppliers with whom she must negotiate is Tecry, the owner of a small frst orchard at the northeast corner of the state As the manager of a lange territcry, Liz has to wory about her profitability, ‘which in tum is a function of the price at which she buys and sells produce Bux her proftabiliy i also affected by the amount of effort i takes her to get the produce to market and how much she has to spend to overcome glitches in her delivery system. For example, if farmer is late with his deliveries, Liz has 'o spend money to get produce from somewhere elbe, usually ata higher price, to meet her obligations to her customer; o fa farmer delivers fruit in bulk, Lia has to spend money (0 crate it propery. Simularly, her profitability s related to the price she can get for the produce from her customers. If she can develop 2 reputation for being a source of “quality” produce, she can get an extra few ‘eens per pound over average market prices, which rapidly adds up to big prof 4s. To manage some of these risks, Liz maintains a small lect of clased-bed tucks capable of trveling around the state and employs a few more workers than is absolucely necessary in her warehouses. Tery i his own boss, running 2 fash that bas been in his family for thee senerations. Over his lifetime he has seen the farm experiment ah a number of cliferent crops, but at significant risk: a bac harvest with a supposedly im- proved strain of one of his traditional crops could wipe him out. Similarly, the "isk of planting something diferent and not being able to sell tata good price could mean nex being able 1 pay off the season's debis at harvest time, which jn tum would mean not being able to buy needed stocks and supplies at plant ing ime. Tery has one open-bed pickup truck he uses to bring in supplies anc ‘deliver fruit, He hites only seasonal help, a planting and harvest times, Each year, iz and Terry get together and discuss terms: quantities and Dries for his faut, the dates on which dativery should be made, how the fruit wil be rated, ete. although they get along, Liz has the sense that there is more they could do that would he mausaly profkabveINTERESTS 2: Clarify the Interests secon (= —_ SEES couse Zery seysens Fruit deal Others ‘What are the concems of oth- 18 who may be significantly aulectea? Personal Personal Other bs Cascomers Look good to bose Keopfamiyfed/napry Guaticy produce Continue good working relation Detvery on tine hip Good price Other 2: cher suppers Good terms for ther produce Business Husiness ee {Good reputation for quaity | Good price on crops produce Farm curva Peo from buying ard sein qusiey | Good harvest produce other 5 Loweriek crops effclent time spent on get ing produce to martet | Staying out of debt—low over- hese No deverygtchee Having rough etocksleuppliee Fropety crated produce for planting Fair deal vith yore DATE PREPARED: