Negotiation Skills for the HR Professional
AK State HR Conference 2017FrankJeffries
A Quick Little Peek
Everyone’s first QuestionNegotiationApproaches and issuesWhat is possible?How do we get there?
What’s in it for Me?
You want to advance yourinterests (so do they)You want the other side to agree and be happy about itOr as DanieleVaresaid “Negotiation is the art of letting them have your way”
Common Approaches to Negotiation
Concern for the other’s outcomeConcern for one’s own outcomeFour modes (and compromising)accommodateinactioncontendingproblem solving
Dual Concern Model
Concern for Other
Low
Inaction
Compromise
Problem Solving
Contending
Accommodate
Low
Concern for Self
High
High
It is Not Just AboutYou
If you are not in tune with whatthe other side wants you are going to be hard pressed to meet their needsIt is important to see things from their point ofview (WIIFM?)Framing offers in a way that they look attractive to your opponent requires understanding what they want
Relax the Focus onDollars and Tangible Outcomes
There are usually more things on the line thanmoneyThe relationship: are you going to see this person again?Social contract: behavior, changes, shared expectationsProcess: needs to be personable, reasonable, and fairInterests of stakeholders and constituents: who cares about the deal and has powerEconomics are necessary but not always sufficient to close a deal
Common Barriers to Objectivity
Self-serving bias:seeing you position more favorably than is realistic (think arbitration)Partisan perception:we see our side as morally superior, talented, honest and basically vilify the other side (same as groupthink) intensifying the conflictThis can create a self-fulfilling prophesy (if you think they are a jerk….)
What is Really Possible?
Much of the time we create just adequate solutionsBoth sides work so hard to protect themselves they bothlose out on better outcomesOther times we don’t do the workPareto superior solutions are what we want
The Potential is Real:ParetoSuperior Solutions
ValueforYou
Value for Me
Pareto Optimal Frontier
UnrealizedPotentialValue
Typical Settlement Point
Low
High
High
Low
How toCreate Pareto Superior Solutions
SuperordinategoalTrustPlanDevelop supporting argumentsChoose an integrative approach to negotiation
Develop a SuperordinateGoal
It is important and necessaryEstablishesthat you have mutual goalsYou work for the sameorganization (value chain)You have the same missionYou have the same visionYou have the same valuesLays the foundation for success
Trust
It is foundational to risk takingRisk taking is foundational to Pareto superior solutionsIt starts with the second you meetTake time to establishrapportevery single meetingRemember the superordinate goal
Knowing What You Wantand Why: Planning
Planning is critical to successKnow yourBATNA (Best Alternative to a Negotiated Solution)Set goals and limitsIt is about total value,not absolutes on single issuesIt needs to make sense for both sides – DON’TFORGET ITThe rationale must be convincing
Be ClearAbout Your Expectations
Mutual gains approach /Interest-based bargainingTelling the truthExercising restraintExpect cynicismBe persistentBe the leader by example
Integrative Negotiation
The basic idea is that both sides can achieve their objectivesSome important ideas:Create a free flow of informationUnderstand the otherUnderstand not only what they wantWhy do they want it?What problem are they trying to solve?
Seek Mutually Beneficial Tradeoffs
Preferences are not the same for both partiesTalk about your relative prioritiesInviteyour opponent to talk about theirsDiscover the differencesExplore different ways to logrollRisk, Expectations, Time PreferencesMake mutually beneficial tradeoffs and both sides win
Negotiating
Offer informationAsk for what you wantExplain why you want itBe objective, show both sidesUse objective data and share your sourcesShow the benefit to bothsidesGive them the tools to help them sway their constituency
Don’t ExpectImmediateAgreement
Be mindful of your opponent’s constituency and theirexpectations/demandsRemember WIIFM?A good deal for you must also be a good deal for them
Expect the Unexpected
No matter what happens, keep yourcoolDon’t respond to attacksTake breaksTo cool off tension between sidesJust let things gobut get firm if you need to
What Happens if You Get Stuck?
It happens so:Don’t spin your wheels,move on and circle back laterBe clear about why you are stuckLack of good dataIneffective presentationHard line constituencyInsufficient concession
If at First You Don’t Succeed…
Try something differentAsk what it will take to get agreementIf you need to give something up to move on finda way to recoup it somewhere else
Be Adaptable to Meet Your Overall Goals
Setting limits on each issue can createproblemsLook for overall value of all issues combined insteadYou will learn things in the negotiation that require flexibility to resolve
Closing the Deal
All agreements on all issues are tentative until the deal is doneExpect it togo to the deadlineBelieve in the validity of your positionBe patient and firmBe willing to make trades to close the deal but respect your limit
Only by Meeting Your Mutual Goals Will You Create the GreatestValue
Both sides need a “win”Cooperationand collaboration create valueUnderstanding their real needscreates opportunities for mutual gainDiscovering the real needs requires communication and risk-taking
Be a Team
The best assurance that everyonekeeps their job is efficient use of resourcesThe negotiation is really about priorities and preferencesSubordinating ego for the good of the whole worksDone well, mutual gains bargaining lets both sides look like heroes
CelebrateYour Success
It is ok to be happy with the dealIt is ok for them to be happy with the deal tooSetthe stage for the next negotiation by parting on great terms
Relax and Have a Good Time!
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