Negotiations Final
Tacit Coordination Concession Strategies
ACcomodation
Opening offer should be _ in a relationship situation and _ in a transaction if you have leverage (best possible you can support)
Accommodating/fair Optimistic
Relationships
Accomodation
Strategies for Effective Mediation (11)
Acknowledgement of Emotions Effective Questioning Reframing Reality testing BATNA Silence Brainstorming Flip Side Neutralizing language Avoiding and Moving on/intentional Deletion
Goals of Initial Exploration of Perspectives 1. Identify issues to be _ 2. Develop a _ of the situation 3. Help the parties feel _ 4. Help the parties express their _ productively and acknowledge them 5. Identify parties' _ 6. Help parties to understand and respect each others' _ 7. Shift focus from past _ to future-oriented _
Addressed Picture Heard Feelings Interests Perceptions and needs Adversaries, problem solvers
Clarify their Agreement 1. Summarize the _ terms 2. _ with each party their understanding 3. Ask whether other _ need to be discussed 4. Help them specify the _ of their agreement 5. State each person's _ in the agreement 6. Recheck with each party _ they are to do certain things, _ , and _ 7. Explain the process of _ 8. Emphasize that the agreement is _ , not yours 9. Establish a _ to follow up with each party 10. Congratulate the parties on their _ and the workability of their resolution
Agreement Recheck Issues Terms Role When, where, how Follow up Theirs Time Reasonableness
Help the Parties Negotiate 1. Ask each party to list _ for a settlement 2. _ and _ each alternative 3. Check with each party on the _ of each alternative 4. Restate whether the alternative is _ 5. In an impasse, suggest the general form of other _ 6. Note the amount of _ already made to show success is likely 7. If the impasse continues, suggest a _ or _ 8. Encourage them to select the _ that appears to both as workable 9. Increase their understanding by _ the alternative 10. Help them plan a course of action to _ the alternative
Alternative possibilities Restate, summarize Workability Workable Alternatives Progress Break, second mediation session Alternative Rephrasing Implement
Make sure parties are aware of their _
Alternatives
Closing 1. Provide _ - different final offers 2. Use a _ date- exploding offers 3. Use _ : throw in something extra eg. a future discount
Alternatives Drop dead Sweeteners
A cognitive bias that explains why a negotiator may want to make the first offer as it anchors the negotiation Effective if the other side isn't prepared especially
Anchoring
Parties often bring strong feelings of _ and _ into mediation which can prevent them from talking productively. A mediator should try to gain their _ for you and the process and help them feel comfortable
Anger, frustration Trust
Third party decides who is right or wrong, controls outcome and not the process Final decision is binding
Arbitration
Arbitration hearing with a sealed decision followed by mediation then, if needed, ruling phase
Arbitration-Mediation
Mediation should change each party's _ toward each other Act, feel, and think differently
Attitude
Shape the _ others will make of your concessions to ensure you encourage reciprocity rather than exploitation
Attributions
Instances that come readily to mind are overestimated/seen as more credible
Availability Bias
If parties are at an impasse on an issue, move to another one that might be easier to agree upon
Avoiding and Moving On
IEP Steps 1. Select a party to _ 2. Ask an _ question and give some _ for what the party should talk about and for long on 3. _ and _ and _ and _ 4. _ issue and confirm _ 5. Ask if the party wants to _
Begin Open ended, guidance Listen, summarize, probe, clarify Summarize, interests Add anything else
External controls settlement terms Parties control discussion process
Binding Arbitration
Mediation is inappropriate when... 1. There is an _ that needs to be established 2. A decision maker refuses to _ 3. A party cannot effectively _ his or her best interests 4. A person important to the case isn't _ 5. There is a threat of _ 6. _ is needed 7. One party won't negotiate in _ and sees mediation as a stalling technique 8. A case involves _ or _ issues
Case law participate represent present criminal action Discovery Good faith Gov, political
Traditional arbitration has a _ effect on the parties- it's calming, and neither one gets what they want
Chilling
Ways to create scarcity
Competition Deadlines (esp if out of your control) Walkouts
Why should you not make big concessions in the early stages of a distributive negotiation?
Confuse the other side Think you really want it then you don't Think you don't care about what you conceded on and you don't get credit for it
Mediation skills can be used by managers as part of _ , _ or to resolve _
Consensus building Brainstorming Workplace disputes
Concessions.... 1. Send a _ (flexibility or firmness?) 2. _ your pattern of concessions (trade low priority for high) 3. The final offer and making a _ (finality, specificity, and consequences)
Consistent message Logrolling Commitment
Mediation is appropriate when... 1. Parties want to _ and _ the relationship 2. Going to court would adversely affect _ and _ 3. _ is important 4. There is a need for _ solutions with _ assessments 5. They want to reach _ solutions 6. There are concerns about future _ or repetitive ) 7. No novel _ or a desire to make _ 8. The cost of litigation is likely to exceed the _ 9. Neither party's case is a _
Continue, preserve Morale, productivity Confidentiality Creative, realistic Mutually satisfactory Litigation, claims Legal issues, case law Value of the dispute Clear winner
The good/bad guy routine takes advantage of the _ principle and the best way to fight it is _
Contrast To point it out
_ is needed for negotiation that lead to agreement and requires a stable setting setting
Cooperation
Acknowledgement of Emotions: naming emotions may help _ it
Diffuse
Research suggests that hearing a very high or low number causes us to _ and unconsciously adjust our expectations in the direction of the opening number
Doubt ourselves
The Process 1. Negotiations are about _ 2. Want to appear _ 3. Goal should be to make a _
Ego/power/being right Strong/not weak Deal
When you own something, you feel that it is more valuable than if you don't own it Eg. family heirloom
Endowment Effect
2 Parts of Prep
Espionage (facts) Empathy (bond)
Once you make an offer, set an _ to make your real offer seem reasonable
Extreme anchor
Reality Testing 1. Help the parties expose the _ of their ideas 2. May be better done in _
Feasibility Caucus
Arbitrator must choose one of the submitted proposals Eg. MLB
Final offer arbitration
Transactions
Firm
Flip Side is asking one party to see the dispute _ , but you must be careful to avoid being seen as taking sides
From the other perspective
When managers mediate, it is important to... 1. Identify _ and _ 2. Uncover _ 3. Establish a _ and _ for discussion 4. Level the _ 5. Open _ channels 6. _ building
Goals and interests Priorities Framework, groundrules Playing field Communication Consensus
Stabilize the Setting 1. _ the parties 2. Indicate where each of them is to _ 3. _ yourself and each party by name 4. Offer _, _ , and _ 5. State the _ of mediation 6. Confirm your _ 7. Get their commitment that only one party at a time will _ 8. Get their commitment to speak directly to _ 9. Get their commitment to _ 10. Use _ as needed
Greet Sit Identify Water, paper and pencil, patience Purpose Neutrality Speak You Proceed Calming techniques
A recent summary of 34 experiments proved that a _ bargaining strategy works best in transactional (price only) situations, especially if direct communication between the parties is limited
Hardline (open high, concede slowly)
What should you do if you know you are negotiating with a nibbler?
Hold something back to give away at the end
BC 1. Should you open? 2. How to open? 3. Concession strategy?
If you have good info Fairly (solid argument) Logrolling, packaging, brainstorm several options
How does the contrast principle apply to optimistic offers?
If you open high, your final offer will look reasonable by comparison
Research suggest that managers who do more mediation as a means of solving problems get more _ incomes that stay in place _ and the parties involved are more _
Integrative Long term Satisfied
If a party has asked for something that may be a deal breaker, don't bring it back up unless they do
Intentional Deletion
Effective Questioning 1. Using _ helps you avoid taking a position 2. Open-ended questions elicit _ 3. Close-ended questions help provide _ 4. Avoid _ questions- lead to defensive responses 5. Ask _ or _ questions- elicit explanation, not defense
Interrogative Info Focus Why How or what
Opening Remarks 1. _ 2. _ of mediation 3. What mediation _ and _ : voluntary, provides you control, confidential 4. Mediator's _ : neutral, facilitator, not a judge 5. Parties' Role 6. Overview of the _ 7. Explain _ : confidential comments, breaks 8. Commitment to _
Intros Goal Is, isn't Role process Caucuses Begin
External control over settlement terms and discussion process
Legal system
Concessions tell the other negotiator you accept the _ of their demands and recognize the need for _ on your part to secure a joint decision
Legitimacy Sacrifice
An optimistic offer doesn't work when... 1. You lack _ 2. The other side won't _ 3. In the _ situation
Leverage Negotiate Balanced concerns (hurts their pride)
_ can account for framing effect
Loss aversion
Before you make an offer, what should you do?
Lower their expectations by saying how it might not be able to meet all of their demands but you wanted to give them a chance before you took it to someone else
The rule of thumb for concessions in integrative bargaining is to
Make big moves on your less important issues and little moves on your important issues Package issues
Facilitation by a 3rd party of the substantially informed consensual management of a dispute
Mediation
Parties control settlement terms External controls discussion process
Mediation
Third party works to facilitate an agreement and controls the process but not the outcome Results in outcome 60-80% of the time
Mediation
Mediation followed by arbitration if no settlement reached Same third party does both
Mediation-Arbitration
Parties control settlement terms and discussion process
Negotiation
Reframing 1. Turn negative statements into _ ones 2. Shift the energy in the statement to create _ rather than letting it stall the negotiation
Neutral Movement
Draft Day showed what?
Nibbling (add in whole teams) Exploding offers- that offer expired a few minutes ago Sweeteners
Neutralizing Language 1. Using _ , _ , _ words 2. Translate an attack into a statement both parties can _
Non-inflammatory, Non-biased, Non-adversarial Negotiate
Why did car dealerships drop their no haggling policies?
Not as many people hated bargaining as they thought People wanted the satisfaction of negotiating a great deal
Rules for Parties 1. Nothing is ever _ 2. Everything is _ - can you do better? 3. Final/no doesn't mean _ - consider context 4. _ is part of the process (yell at each other) 5. Negotiation is 50% _ and 50% _ - explain your proposal 6. Be _ 7. Don't _ , mediate 8. Be _ : negotiations are full of ups and downs 9. _ is in favor of an agreement 10. You don't have to make a _ deal
Off the table Negotiable Final/no Noise Psych, sales Persistent Negotiate Patient Momentum Bad
Bargaining begins when?
One side opens with a concrete and plausible offer
_ explains nibbling
Overcommitment
When making concessions, be careful of _ , like making 2 in a row and the same dollar amount at each time
Patterns
Brainstorming helps explore _ and there should be no _ when generating
Possible solutions Evaluation
Steps of Mediation 1. _ 2. _ : buy in to the process 3. Initial exploration of _ 4. _ of issues and development of _ 5. _ and _ the issues 6. _ 7. Reaching _ 8. _ the agreement
Preparation Opening remarks Perspectives Summary, agenda Probing and framing Problem solving final agreement Writing
Preparation 1. Know your _ 2. Set priorities- separate _ (shorter) vs _ (longer) 3. If it's an ongoing relationship, leave something _ (don't burn bridges)
Principles Gottas, wannas On the table
Suggests that a bargaining proposal framed in terms of what the other negotiator stands to lose if they say no will be more effective
Prospect Theory
Use Prospect Theory to Your Advantage 1. Establish a _ and make what you actually want the bottom 2. Pivot to _ terms 3. Offer things _ to you that may be to them 4. Use _ numbers to make it seem like you did careful research and calculation 5. Respond to a nibble by _
Range Non monetary Unimportant Weird Surprising them w a gift
Help the Parties Communicate 1. Explain the _ for who speaks first 2. Reassure them that both will speak without _ , for as long as is needed 3. Ask the first speaker to tell what has _ : take notes, respond actively, calm as needed, clarify, summarize, thank them both 4. Second speaker: same stuff 5. Ask each party to clarify in turn the _ 6. Inquire into basic issues, probing to see if something may be at the _ of the complaints 7. Define the problem by _ and _ 8. Conduct _ if needed 9. Summarize areas of _ and _ 10. Help the parties set _ on the issues and demands
Rationale Interruption Happened Major issues to be resolved Root Restating, summarizing Private meetings Agreement, disagreement Priorities
A process of devaluing contributions others make
Reactive Devaluation
Optimistic openings allow the person making it to trigger the norm of _ , bc as you make more reasonable concessions, they will make some as well
Reciprocity
Goals of a mediation 1. Build _ , _ and _ 2. Build parties' _ and mutual _ 3. Help people be their _ - articulate, clear, creative, compassionate 4. Shift the focus from _ to _ 5. To help people find their _ , create _ , and make _ 6. To help put the conflict behind them through _ or _ about an issue
Relationship, trust, confidence Self awareness, understanding Best selves Past, future Answers, solutions, choices Reconciliation, decisions
The right tactic or strategy for one situation may not be _ for another situation
Right
Pros of opening
Set the range Anchoring and adjustment effect
Mediators... 1. Maintain control over _ and _ 2. Control _ 3. Allow the parties to be _ 4. Help search for _ solutions 5. Motivate the parties to settle through _ and discussions about the parties' _
Setting, process Emotions Heard Acceptable Reality checks, alternatives (BATNAs)
Momentum is gained by making _ and clearing the table of throwaway proposals
Small agreements
Steps of Mediation 1. _ the setting 2. Help the parties _ 3. Help the parties _ 4. _ their agreement
Stabilize Communicate Negotiate Clarify
What concession strategy is the most successful?
Start high, then gradually concede to moderate
parties' role in mediation 1. _ about your concerns 2. _ to others 3. Willingness to be responsible for thinking about _ 4. Express any _ you have about the mediator's neutrality or ability
Talk Listen Possible Solutions Doubts
What were Patrick Cleary's 5 Similar Patterns he sees in every negotiation?
The process Preparation Basics of Conflict Resolution Negotiation itself Rules (for parties)
Silence gives parties time to _ to create new movement and hands the _ back to the parties
Think Decision
Basics of Conflict Resolution 1. Set the _ - be nice, appreciate honesty 2. Establish _ 3. Ignore _ 4. _ back and _ 5. Don't impute _ 6. Remove from the table issues _ eg. CEO pay in labor disputes
Tone Common ground Rhetoric Repeat, emphasize Bad motives You can't control
Asking Questions in Mediation 1. Be aware of how people interpret your _ and _ 2. Be _ 3. Be _ 4. Be _ 5. Be _ : watch for plausibly-sounding answers 6. Be _
Tone, intensity of words Empathetic Inquiring Respectful Patient Persistent
Each side submits a proposal and the arbitrator chooses a solution he/she finds appropriate
Traditional arbitration
Common Mistakes in Mediation 1. Leave _ between the participants 2. Jump in without talking about the _ 3. Fail to give _ to other party- keep them in check 4. Let party 2 _ rather than present their perspective 5. _ vs. acknowledging an option 6. Not properly _ voice or emotions 7. Going too quickly to interests and not letting them be _ 8. Going too quickly to _ 9. Failing to use _ 10. Misuing _ 11. Not addressing _ comment directed to mediator
Unnecessary space Process Eye contact Rebuttal Endorsing Pacing Heard Solutions Visuals Caucuses Partisan
After the setting is stable, both parties must _ their statements which helps calm their emotions and build a basis for trust between them
Vent
The parties do need to _ and often times need a reality check about the _ of their ideas
Vent Workability
Negotiation Itself 1. Compromise _ for _ and make sure you get the points for doing so 2. Test depth of _ on each issue 3. Take _ view 4. _ counts- avoid artificial deadlines 5. _ : it's the parties' job to find solutions
Wannas for gottas Commitment LT Credibility Brainstorm
Mediators help the parties focus on their interests - _ vs "us and them"
We
Concession devaluation
We tell ourselves their concession isn't worth as much as ours
When should you open?
Well informed about how the other side values the deal You can trust them to look out for you (good relationship) You know the market value as well as or better than they do
Transactional 1. Should you open? 2. How to open? 3. Concession strategy?
When in doubt, don't. But if you have good info, yes Optimistically (presentable argument) Firmness, concede slowly
What happened in The Office clip?
Win-win-win (including Michael the mediator) Makes poster into a t-shirt Oscar wears a few times a week
Tacit Coordination 1. Open? 2. How? 3. Concessions
Yes, avoid conflict Do whatever it takes Accommodation
Advantages to never opening
You can find out what the other side is thinking, especially if you are uninformed or unexperienced Eg. Beatles' manager
Relationships 1. Open? 2. How? 3. Concessions?
yes Generously Accommodation, fair compromise