You are on page 1of 12

Principled Negotiation is Setting a New StandardPart One: An Introduction to Principled Negotiation By Linda Bower Human Performance Strategies May

14, 2005 There is growing interest worldwide in adopting principled negotiation as a standard means of operating. This is the first of a four-part series. The most popular book on negotiating, Getting To Yes: Negotiating Agreement Without Giving In, by Dr. William Ury and Dr. Roger Fisher has sold over 5 million copies in thirty-five languages. Thirty-percent were sold outside of the U.S. Principled negotiation is what Harvard University teaches Americas future leaders. Dr. Ury Co-founded Harvards Program on Negotiation; where he currently directs the Global Negotiation Project. Dr. Ury has been a consultant to the Crisis Management Center at the U.S. White House and has worked to mitigate ethnic wars in the Middle East, the Balkans and the former Soviet Union. He literally uses principled negotiation to work for world peace. He has negotiated corporate mergers and acquisitions and helped corporations improve relationships with their key clients. Wilson Learning Worldwide has collaborated closely with Dr. Ury for almost 20 years to bring his principled negotiation process into an adult education workshop for businesses. AT&T alone sent 20,000 employees through the workshop while I was consulting with it. However, I have no idea how many thousands more have attended or in how many countries and languagesa lot. Wilson Learning and Dr. Ury recently redesigned the workshop to be more encompassing of global complex environments. A new wave of learning is beginning. What is this principled negotiation process that seems to be growing in steady popularity? The core of the process is expressed in five steps: 1. 2. 3. 4. Separate the People from the Problem Focus on Interests behind Positions Invent Options for Mutual Gain Encourage Using Independent Standards

5. Create a Best Alternative to a Negotiated Agreement (BATNA) Before using the five steps, it is important to understand where most people are coming from when they think they are negotiating. Many people have learned to bargain instead of negotiate. Bargaining can be, Soft or Hard. Soft bargainers try to please others, but they start from fear. They accommodate other people and if they say, No, it is feeble. In the end, they compromise and dont get what they want and they set a precedent for being a door mat. Hard bargainers start from anger or aggression and will demean others to get what they want. They attack and say, No, as they refuse to negotiate. In the end, they may get what they want, but at great sacrifice to relationships with others and to credibility for themselves. Bargaining stops any chance of creating a collaborative environment for employees. It also stops the flow of information necessary to solve customer problems and develop customer relationships. The principled negotiation process assumes that there is a shared interest between parties, which is why they want to negotiate. It also assumes that there is an opposed interest, which is why they have to negotiate. Principled negotiation is soft on the people and hard on the problem. The process respects others and builds ones personal credibility. Principled negotiators start from, Yes and use the word, No in positive terms; they are assertive, not passive or aggressive. The first time I went through Wilson Learnings Negotiating To Yes workshop was in 1987. I remember staring at the participant guide thinking, This will change my life. It has. It certainly helped that I attended the workshop over a dozen more times and saw Dr. Ury speak over a half dozen times and personally negotiated with him. Plus, I was mentored by the best Wilson Learning facilitators. But thats not what made the process a part of my very being. For the first couple of years I used the planning tool that Wilson Learning provided. I planned the five steps with every negotiation, internal or external, in writing. Eventually I could do it in my mind without even realising it. If my clients hadnt been to the workshop, I taught them the process. Teaching others is important to learning anything really well. I watched the

process ease building client and internal relationships over and over and over again. An adage for principled negotiators is, Reflective negotiators are effective negotiators. An important concept in preparing for a negotiation is to, Go to the balcony. Dr. Ury talks about this in his book, Getting Past No, for dealing with difficult people and situations. In the next three articles we will gain perspective by, Going to the balcony, and applying the five step process to one of your current negotiations. Get ready to sit down next week to learn how principled negotiation might work for you.

Principled Negotiation is Setting a New StandardPart Two: Understanding the Situation and the People Involved By Linda Bower Human Performance Strategies May 14, 2005 824 Words This second article in a series of four gives you the opportunity to begin considering a current negotiation and how a principled approach may help you achieve better results. Part One discussed the difference between bargaining and principled negotiation and introduced Dr. Ury and Dr. Fishers five step process for principled negotiation: 1. 2. 3. 4. 5. Separate the People from the Problem Focus on Interests behind Positions Invent Options for Mutual Gain Encourage Using Independent Standards Create a Best Alternative to a Negotiated Agreement (BATNA)

Before we begin applying the steps to your situation, jot some notes down to start a worksheet about the issue you need to resolve. An example of an issue might be: The client has set a one-week deadline for a salesperson to write a 50-page proposal. The consequences of not reaching agreement are, Loss of business, loss of credibility and loss of future opportunities. On your worksheet, answer the question, What are the consequences of not reaching agreement? Identify the key stakeholders in your situation: With whom are you negotiating, externally and internally? Note the stakeholders in your situation. Choose the most important one for applying the five step process. To keep the example simple, we will focus on the salesperson and the client. In a real situation, other stakeholders would include additional clients and internal support resources. Remember, our goal is to create an efficiently reached, satisfying, optimal agreement that enhances relationships. Step One: Separate the People from the Problem:

The first step is a mindset and a skill-set. The mindset is easy to visualise by picturing yourself at the side of your counterpart with the problem in front of you both. Dont let people be the problem. As negative emotion increases, negotiation effectiveness decreases. Developing ones emotional intelligence provides the skills to do this and the other steps effectively. Essentially this step requires a negotiator to step to his or her counterparts side and manage the people perceptions on both sides. Now look at the perceptions and possible approaches in your situation. In one column, write your name and in another column, write your counterparts name. In the column with your name, write how your counterpart may perceive you. In the other column, write how you perceive your counterpart. In our example, the salesperson may write in the left column, My client perceives me as responsive and dedicated. In the right column, I perceive my client as demanding and unreasonable. An immediate result is that the salesperson sees an opportunity to negotiate future expectations while addressing the current deadline. The salesperson can begin to consider how to step to the clients side to establish a more mutually agreeable working relationship. What are the people challenges in your situation and how might you approach them to separate the people from the problem? Step Two: Focus on Interests Behind Positions: In my experience, the whole process revolves around this step. A position is a statement of what you or other stakeholders want. In our example, the clients position is, I want this proposal in one week. It usually appears to be the only option; it is stated in a way that excludes other options. Write in the column under your name, your stated position and in the other column, your counterparts stated position. Principled negotiation is about getting to the interests behind positions to invent options for mutual gain. An interest is what people really want in a negotiation. It is the, Why? behind a position statement.

Write the interests behind the positions you have written in both columns. Dont be alarmed if you dont come up with a lot at first. You will develop an, Ear for them as you become familiar with the whole process. There are three kinds of interests to look for: Shared, Opposed and Differing. Shared interests are the reasons you want to negotiate. In our example, both the client and salesperson want to do a quality job and impress their management. Opposed interests are the reasons you have to negotiate. The salespersons and clients interests are opposed because if one is satisfied with a deadline, the other one isnt. Differing interests are the ones to listen for to invent the most creative options. A differing interest is something that is more important to one party than the other. For example, it is more important to the client that he reviews the presentation in advance than it is to the salesperson. Whereby, the salesperson is interested in having enough time to write the proposal. How can these differing interests be brought into the negotiation to create a more satisfying agreement? The next article will answer this question and more as it walks you through the last three steps of the principled negotiation process. The final article will discuss the art of reaching an agreement. In the meantime, discover more interests in your situation and begin identifying if they are Shared, Opposed or Differing.

Principled Negotiation is Setting a New Standard Part Three: Inventing Options and Empowering Yourself By Linda Bower Human Performance Strategies May 14, 2005 785 Words This third article in a series gives you the opportunity to continue considering a current negotiation and how a principled approach may help you achieve better results. Part One introduced Dr. Ury and Dr. Fishers five step process for principled negotiation: 1. 2. 3. 4. 5. Separate the People from the Problem Focus on Interests behind Positions Invent Options for Mutual Gain Encourage Using Independent Standards Create a Best Alternative to a Negotiated Agreement (BATNA)

Part Two helped you identify a current negotiation situation and work through the first two steps. You will have written a brief overview of your situation, consequences for not reaching agreement, the stakeholders involved and chosen one key stakeholder. With that stakeholder in mind, you will have already identified perceptions and approaches that may influence the negotiation process and outcome. You will also have identified your position and at least one of all three types of interests and the positions and interests of your counterpart. Step Three: Invent Options for Mutual Gain An option is a possible agreement that does not exclude other options. Options are negotiable. The more interests you have identified, the more options you will see. The more options you see, the more opportunities there are to reach an optimal, satisfying agreement for both parties. Lets return to our previous example of a client requesting a one-week deadline to submit a 50-page proposal. Shared Interests: Impressing management and doing a quality job. Opposed Interests: One-week is not enough time for the salesperson to respond to corporate quality standards.

Differing Interests: The client wants to review before submission; the salesperson wants more time or help to write the proposal.

Immediately two options come to mind, 1) the salesperson could send early draft material to the client and 2) the client could help write the proposal or both. In addition, the salesperson can request that future deadlines be more considerate of resource allocation pressure. Some guidelines for creating options include: Invent before you judge. Invent a wide range of options. Use imaginative procedures. Look for ways to intersect interests.

Consider your options and your counterparts options and note them on your worksheet. If the tension in the relationship is high or unsteady, the next step can put you back on the same side of the table. Step Four: Encourage Using Independent Standards. Probably most importantly, Independent Standards help generate more options to reach a satisfying, optimal agreement. Independent Standards are objective criteria, independent of the will of either side. They can be used to choose among conflicting options and resolve conflicts before they escalate. They provide a fair, agreed upon measurementalways jointly agree to each standard.

In our example we might explore internal labor estimates for proposal writing. Other examples of Independent Standards include historical contracts and proposals, bids, legal case histories or past settlements, industry benchmarks and so on. Note on your worksheet which Independent Standards may be relevant to your situation. Remember to mutually agree on standards before using them. Step Five: Create a Best Alternative to a Negotiated Agreement (BATNA): A BATNA is what you will do if you do not reach agreement that satisfies your interests. It is the alternative plan against which you compare any proposed

agreement. A BATNA exists outside of a negotiation, otherwise it may be perceived as a threat. A BATNA is a back-up plan, a boundary and empowerment for you. It gives you the strength to walk away from an agreement that is not mutually beneficial. Remember, mutual gain is an important mindset and goal in principled negotiation. A BATNA is not a least acceptable option, a bottom line or punishment for your counterpart. To create a BATNA, ask yourself, If we both walk away, what could I do to address my interests? Then invent a range of alternatives; discuss alternatives with a colleague or mentor. Also consider what your counterparts BATNA may be. In our example, a BATNA for the salesperson may be to escalate the deadline to his manager to shift other client priorities. It isnt the best option; it may be the best alternative. With your situation in mind, write your BATNA and a BATNA your counterpart may choose. The five steps are not really used in a linear fashion as described in this series of articles. It is back and forth communication between all of the stakeholders involved, which is why planning and reflection are so important. To this day, I write the whole negotiation scenario for complex situations in the same way I am leading you through your own negotiation. In the final article in this series we will explore how to reach agreement by never yielding to pressure, only reason.

Principled Negotiation is Setting a New StandardPart Four: Reaching Agreement By Linda Bower Human Performance Strategies May 14, 2005 757 Words This final article in a series of four gives you the opportunity to finish considering a current negotiation and how a principled approach may help you achieve better results. Part One introduced Dr. Ury and Dr. Fishers five step process for principled negotiation: 1. 2. 3. 4. 5. Separate the People from the Problem Focus on Interests behind Positions Invent Options for Mutual Gain Encourage Using Independent Standards Create a Best Alternative to a Negotiated Agreement (BATNA)

Part Two helped you identify a current negotiation situation and work through the first two steps. Part Three walked you through the final three steps. This article is about how to reach agreement and how to begin a principled negotiation conversation. After identifying as many options as possible, it is time to start putting them together into a mutually beneficial offer for your counterpart to consider and agree. Continue with your worksheet by prioritising your interests and your counterparts interests to generate options. Begin to identify which options are most agreeable to both parties. In Wilson Learnings workshop, Negotiating To Yes, a range of offers is considered. How might you combine different options to define a range of offers? Consider the following: Maximum Supportable Offer (MSO) Addresses all priority interests and usually some less important interests for both parties. Content withAddresses the high priority interests and may address less important interests for both parties. Live with Addresses only the top priority interests and may address less important interests for both parties.

10

In our example from previous articles, the salesperson needs to engage the client in further discovery of interests before options can be tested and an agreement positioned. Are you ready to come up with an offer in your situation? Do not prematurely advocate an offer. Wait until you feel you can gain a positive response. Be cautious of two things when creating your offer. Be sure your offer is realistic. An unrealistic offer is a dream that would be desirable to one party but not the other; this is not principled negotiation. Secondly, do not offer something unacceptable, which is below the minimum either party can accept. Your BATNA should be better than an unacceptable offer. Remember, never yield to pressure, only reason. In reality, offers should be made as a series of smaller offers, each related to one or more interests. This approach makes it easy for your counterpart to see the benefits for them and for you to build trust in the relationship. One of Wilson Learnings all-time greatest tools is the, PPP or Purpose, Process and Payoff tool. It is used to begin meetings with a collaborative tone and is essential to beginning an offer conversation. The Purpose statement expresses why the meeting is taking place. The Process statement briefly describes the agenda and the Payoff statement is the benefit or outcome of the meeting. Following is an example of a PPP to begin an offer conversation, from Negotiating To Yes. PurposeToday our goal is to build on our earlier conversations, I would like to provide the information youll need to make a decision about how to proceed. ProcessId like to explain each part of our recommendation, one at a time, so you can see how each addresses the issues we discussed earlier. We can determine if any of those issues have changed and address the implications. After Ive explained all the components, Ill ask how the complete package works for you. How does that sound? PayoffAt the end of our conversation, youll have a clear understanding of how well help you achieve the goals youve set and youll have the information you need to make a decision and move forward. Will that work for you?

11

Try writing a PPP for every meeting you have this week and youll be good at it before you know it. For now, write a PPP to begin an offer conversation with your counterpart. You might consider using an assumptive close to reach a final agreement. Instead of asking if your counterpart wants to move forward, ask how. If you have done your homework and followed the principled negotiation process, an assumptive close is appropriate and the client doesnt even notice that you have asked for agreement. One of my favorite client comments was, Id like to buy from you because its easier to do business with you than the current supplier. It was easy to do business with me. In the end, Im not sure anything else matters in business today.

12

You might also like