Catalyticleader 2013 presentation

Problem Solving Negotiation for the Catalytic Leader

CSAC Institute for Excellence in County

Government

David Landis

Definition

A negotiation is a trade

- “I’ll do Y, if you’ll do X.”

“Stimulating a productive group process requires a strong set of

negotiation skills...”

- Jeff Luke

“Catalytic Leadership”

Two Strategy Options

• Seeking Advantage

• Seeking Joint Gain

Advantage Seeking

• Good short term results

• Hard to exploit

• Relatively easy to do

Advantage Seeking

• Hard on relationships

• Misses joint gain

• Breeds reciprocity

Joint Gain Seeking

• Expands the pie

• Benefits grow over time

• Builds relationships

Joint Gain Seeking

• Risks exploitation

• Takes more time and preparation

• Requires skill to be effective

Plan B

Taming the Advantage Seeker

• Align your incentives

• Cooperation on terms is reciprocal, not

individual

• Lift the horizon

• Develop “walk away” alternative

David Landis

[email protected]

Trust

“Trust is a fundamental ingredient in

public leadership.”

“Facilitation and negotiation of

agreements are especially hard to

forge when distrust prevails.”

- Jeff Luke

“Catalytic Leadership”

Being Trustworthy

• Say what you mean, mean what you say

• Does not require full disclosure

• Worth its weight in gold

Trusting

• Operate independent of trust

• Reciprocal consequences

3 Characteristics of Negotiation

• Asymmetrical information

•Tension

•Recurring Dynamics

Recurring Pattern

• Preparation/Aspiration

Introduction

Information exchange

Offer

Counters

Stalemate/Settlement

• Post-negotiation

Tension

• Predictable at offer stage

• Predictable with counters

• Often grows as difference narrows

Asymmetrical Information

• Information affects aspiration

• Shared Information

• Discoverable information

• Secrets

• Leakage

Role #5 - Observer

• Don’t give away information or reactions

– just watch.

• Watch for exaggerations, threats, offers

and counter-offers.

• Notice questions particularly.

Role #1

Your mother says, “Go to the store. Bring

me an orange. You come home without

an orange and you’ll be in trouble.”

Role #2

Your mother says, “Go to the store. Bring

me an orange. You come home without

an orange and you’ll be in trouble.”

Role #3

Your mother says, “Go to the store and

bring me an orange. Family is coming

over tomorrow, I’m going to peel the

orange and cut up the pulp for a fruit

salad. Bring me an orange or you’ll be in

trouble.”

Role #4

Your mother says, “Go to the store, bring

me an orange. Family is coming over

tomorrow. I’m going to peel the orange

and grate the peel to flavor some orange

bread I’m making. Bring me an orange

or you’re in trouble.”

5 into 2

• No division of items

• No side deals

• Must divide all five between you

• Divide in 2 minutes or get nothing

• Item:

– 5 crisp $1,000 bills

5 into 2

• All the same rules

• Items:

– 2 tickets, great concert

– Designer jacket

– Glider flight over Grand Canyon

– Elegant fine French meal and wine for 2

– Martha Stewart cooks and cleans

Worker’s Comp Deal

Business Labor

Dr. Choice

Managed Care

Indexed Benefits

Safety Comm./ Inspectors

Worker’s Comp Deal

Business Labor

Dr. Choice Yes

Managed Care Yes

Indexed Benefits No

Safety Comm./ Inspectors

No

Worker’s Comp Deal

Business Labor

Dr. Choice Yes No

Managed Care Yes No

Indexed Benefits No Yes

Safety Comm./ Inspectors

No Yes

Worker’s Comp Deal

Business Labor

Dr. Choice Yes 1 No

Managed Care Yes 2 No

Indexed Benefits No 3 Yes

Safety Comm./ Inspectors

No 4 Yes

Worker’s Comp Deal

Business Labor

Dr. Choice Yes 1 No 3

Managed Care Yes 2 No 4

Indexed Benefits No 3 Yes 1

Safety Comm./ Inspectors

No 4 Yes 2

Shared Interests – valued alike

• An 800 phone number for workers’ rights.

• Better enforcement against companies without work comp.

• Informal dispute resolution method.

• Higher contribution from unsafe businesses.

Tools for Mutual Gain

• Interests before positions

• Priorities traded across differences

• Fair process norms

• Objective criteria

• Trust through authentic communication

“Strategic thinking requires the capacity to recognize shared, complementary and

conflicting interests.”

- Jeff Luke

“Catalytic Leadership”

Conflicting Interests

• Definition:

– Valued alike, in opposition (money is the

most common

• Strategy

– Use objective criteria to insure fair results

Complementary Interests

• Definition:

– Elements valued differently

– Need at least two to link

• Strategy

– discover, link, maximize

Shared Interests

• Definition:

– Valued alike, good for both

• Strategy

– Discover, maximize

– No need to link

Focus on Interests before Positions

• Interests = underlying motivations

– The answer to “why?”

• Positions = “yes or no” options

– The answer to “how much?”

• Focusing on interests induces problem solving

because they are flexible and create

satisfaction.

Invent Options for Mutual Gain

• Brainstorm method of advancing parties’

interests

• Invent first, then decide

• Link differences, priorities

• Maximize shared interests

Use Objective Criteria

• Learn marketplace

• Frame dispute as a joint search for fair

standards

• Adjust standards for unique circumstances

• Open with an offer you can justify

Separate People from the Problem

Be unconditionally cooperative on process

– Good listening

– Fair characterizations

– Symbolic gestures

Separate Problem from the People

Be firm on fair outcomes

– Trade cooperation

– Reason, be open to reason

– Results need a fair, reasonable basis

Advantage Seeking comes from…

• High aspiration

• Stingy asymmetrical concessions

• Insistent counteroffers

• Information manipulation & leveraging

The 7 Rules of Hard Bargaining

• Don’t make the first offer

• Don’t accept the first offer

• Don’t make the first concession

• Don’t concede the same size

The 7 Rules of Hard Bargaining

• Don’t concede at the same rate

• Ignore their deadlines, create your own

• Ask for something extra for agreement

Preferred Group Practices…

1. Identify and agree on process norms

7. Visual display of information, options, etc

2. Facilitation, hear everyone 8. Listening for threads of agreement

3. Create problem statement 9. Recasting solutions in search of broad consensus

4. Learn interests and priorities 10. Late commitments, broad consensus

5. Develop multiple options 11. Careful review of agreement

6. Link differences for joint gain 12. Celebrate the agreement

Problem Solving Negotiation

“Good luck and good negotiating,

Dave Landis

[email protected]