Principled Negotiation Negotiation is neither the first nor the last step in any endeavor - it’s never an end in itself, but a means. The key is to use it to add value in thechain of events and decisions leading to your mission. Improperly used, powerful negotiation instruments can be overkill. They can also propel a frivolous issue to the top of a corporate agenda. Thus, it is very important to use a framework that helps advance real substantive issues and find a graceful exit for trivial ones. In learning any new methodology, consumer beware! With effective negotiations, you can build lasting relationships, uncover untapped opportunities, prevent and resolve conflicts, head-off disputes, disarm aggressors, face hostile audiences and lay a foundation for smooth sailing to a high-value future. As a mediator or negotiator, you can help protagonists see each others’ points of view, understand even conflicting interests, validate their objectives, formulate innovative strategies focusing on lasting agreements and improve their working relationships. Preparation is vital for coming to better decisions in any negotiation, in terms of both quality and delivery time. Do your homework ahead of time to crystallize a number of elements:
Your next step is to draft the Negotiation Mandate; then, to repeat the above preparation exercise for each party with a vested interest in the outcome. Learn about the interests and values of all stakeholders, particularly the movers and shakers on all sides. Gather relevant intelligence about their perceptions in a dignified, ethical and discreet way. Find out who can derive direct and indirect benefits from the negotiation. Try to anticipate everyone’s needs, but don’t believe that your projections are correct until you make your assumptions explicit and objectively verifiable. Finally, tie it all together: define the stakeholders’ relationships by mapping out a web of interactions that includes power dynamics, players’ positions on the need spectrum, their business acumen and their willingness to use - or abuse - power with their constituencies. Develop several options for creating or sustaining high value and for securing the commitment and motivation of both sides. The Strategy Grid or Strategy Checkerboard[ii] can spark and speed up your creativity. This process includes finding ways of making it easier for the other parties to reach your goals. Benchmark the value of each option from substantive and relationship-building perspectives against the best practices, and also against each side’s expectations and past performance. Once you have drafted and validated the options at hand, consider different and coherent ways of communicating each option and its respective value to the stakeholders on each side. The best way is to discuss the advantages and disadvantages of each option brought by each negotiator without commitment. This communication is yet another opportunity to enhance each option and to foster relationship building and innovation. Consider all stakeholders, i.e. anyone with a vested interest in the deal being negotiated. Think of your current and potential allies who can contribute to your mission, even indirectly. In addition to people with common or related interests, consider those who are not perceived as natural allies on first analysis. Even foes can be potential allies since many are territorial, situational or temporary adversaries rather than endemic ones. With unconditional goodwill, an olive branch can weather many a storm and encourage intelligent discussion from all sides. During negotiation, be open to reconsidering your stance (if feasible). Be ready to build synergy on whatever approach they use, be it stratagem, compromise, collaboration, defense, attack or a graceful exit... just don’t be distracted by their moves! If you reach a deadlock for which no creative resolution exists, stick to your mission but compromise on secondary issues. When in doubt, solicit an explanation. Then, be constructive by acknowledging the positive merits of each option and everyone’s ideas. Encourage self-critique before collective critique; it should focus on means of overcoming flaws. To set an example, make an extra effort to find ways to resolve your own objections to their ideas. Be empathetic and try to communicate your understanding of each other’s interests, points of view and concerns. What if the past comes up? A negotiator is not a judge and should neither ignore the past nor focus on its negative side. This attitude only draws you away from the purpose of negotiation. The same holds for leveling blame and trying to score points. Instead, try to build durable trust by focusing on the present and future. After each negotiation, invest time in a review of the session. Assess the substantive outcome and quality of the interactions. Make a note of the circumstantial, contextual and latent sources of productive, counterproductive and irrelevant behavior on both sides of the table. Evaluate the knowledge, skills and power available to each party away from the negotiation table. Compare and contrast these factors with what was brought in, discarded and neglected during the session. Finally, pool your experience, training, research and business acumen. Reviewing every negotiation helps you build new skills. It is a basis for continually learning the best principles, practices and tools available, using a disciplined approach focused on innovation and continuous improvement. Twice a year, take the time to see just how far you have come; and what further skills you can master to create opportunities beyond your wildest dreams! [i] Prepared as Advanced Written Assignment for Prof. Roger Fisher, Harvard Law School, June 1996 [ii] 2004 Post-Scriptum: The The Strategy Checkerboard is now an integral part of PDI Seminar Strategy, Risk, Principled Negotiation & Leadership. For details, call 1-800-HARVARD or (819) 772-7777.
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