Win-Win Negotiation

00:01 Hi and welcome to finding a win-win solution.

00:04 Today we're going to focus on inter space negotiations.

00:08 During this lecture, you will be able to develop a step-by-step approach to finding a win-win solution.

00:15 You will also be able to assess the relationships within in interest-based negotiations situation.

00:22 You will learn to distinguish between interest and positions and you will also understand what is important in generating creative options.

00:31 Lastly, you'll be able to identify the five golden rules in inter space negotiations.

00:39 Now imagine that three friends are invited to a harvest party in the middle of autumn at the University.

00:47 To go to this party, You need to have something edible related to the theme then you get to get in for free and you get some drinks.

00:56 Now three imaginary friends go shopping together.

00:59 All of them have the same idea, to buy a pumpkin and bring a pumpkin dish.

01:06 Pumpkins are very plentiful in Autumn.

01:08 They end up, in front of the pumpkin stand all staring at the same pumpkin.

01:15 The three of them get into an argument about who should buy a pumpkin and who should bring a pumpkin to the party.

01:22 None of the three want to give up their pumpkin.

01:26 They all want to be the one with the unique pumpkin dish.

01:30 With no solution in sight, the three leave the store without pumpkins and in a very bad mood, the friendship is strained.

01:40 What day did not ask is why they wanted to buy a pumpkin and what did they intend to bring.

01:47 One friend had in mind a pumpkin soup.

01:51 He needed the Flesh of the pumpkin.

01:54 The other was thinking of making a pumpkin seed bread so that everybody could try a piece.

02:01 Wanted actually the seeds of the pumpkin.

02:04 And the third friend actually just had this idea of creating a bowl out of the pumpkin.

02:09 You and make it look very harvesting.

02:12 What they all wanted to do was to avoid a disaster fighting over the pumpkin and smashing it on the ground.

02:20 What they needed to do was to stop and do what we call go to the balcony.

02:28 Going to the balcony is to have an overview of the situation to almost go above everything to a different level and to look down and say wait a minute, What is going on here.

02:42 The goal of any negotiation should be to move away from confrontation and to move towards cooperation.

02:50 This is done by what we call expanding the pie.

02:55 It's a little bit of a joke because we like pumpkin pies.

02:58 But the idea behind it is that most people think that we have limited resources and that we need to get our piece of the pie before everybody else gets a piece of the pie and if we can expand the pie we can have more pieces.

03:13 That's the basis of Integrative negotiation.

03:17 Now, how do we achieve that? What we need is a step-by-step approach that will make sure that we'll keep our emotions in check and will actually focus on interest and not positions.

03:29 But before we do that we have to do a couple of things.

03:32 The first thing we have to do is we have to assess the relationship.

03:37 Now before you even get to the table to sit down to negotiate you want to understand the relationship, not only how the relationship is right now, but what was it in the past? And how is it going to look in the future? What we need to understand is these three friends actually have a great relationship right.

03:58 Now to little irritable, but actually they want to continue being friends studying together possibly even being roommates.

04:07 What we want to do with checking the relationship is to check our assumptions.

04:12 We also want to understand what kind of emotions are there and to validate those emotions.

04:18 More importantly we want to understand, what is the perception of the three sides and in any negotiation where interest or involve we want to make sure that we're building trust.

04:33 Once you understand what kind of relationship is involved and what kind of relationship you would like to have but you're ready for step two.

04:42 Preparing the negotiations.

04:44 What you want to do under preparing the negotiation is A. have good communications B. have good analysis and C. have good understanding.

04:54 What do we mean by this? Well under good communication, we want to have active listening.

04:59 We want to use the four ears of communication to make sure that we understood what are the needs interests and wishes of the other side.

05:09 Under good analysis, we want to make sure we understand who's involved.

05:14 Why are they involved? And what is their outcome that most fits their needs.

05:20 Lastly, on the good understanding we want to make sure we have understood all of that dynamics, the perceptions, and assumptions involved in the negotiation.

05:31 Once you've assessed the relationship and prepare the negotiations, you ready to sit down at the table and begin identifying the problem, not by yourself and not in your office, but actually at the table with the other people in jointly identifying the problem, asking why people want? For example the pumpkin, we know now from the story that they actually wanted different parts of the pumpkin and they could have shared the pumpkin had they just spent a little more time asking questions to have a deeper meaning of the interest and not just fighting over who gets the pumpkin.

06:08 Understanding the difference between positions which are concrete, explicit, and limited and interest on the other side, which are the reasons we hind the positions which fulfill those needs will help us to understand how to create win-win situations.

06:25 Now a much more complex situations.

06:28 What you want to do is to create what we call a problem statement.

06:33 Problem statements have to satisfy the interests of all sides.

06:38 They explore Mutual interests, they fulfill basic needs and they're created by engaging the other side in a discussion over interest and needs.

06:50 In this discussion, people will talk about the future and not the past.

06:56 Now in order to understand a little more how to identify the problem and what the next step is going to be let's look at one of our case studies which you can find in the download section of this course, it's called the OR Construction Company.

07:12 It's a negotiation between a construction company and community leaders over the building of a new residential project.

07:21 Some of you may recognize this from other lectures.

07:24 The OR construction company is the largest company in the region building housing.

07:30 It has a stellar reputation but it has been losing money in a couple of its projects.

07:36 It has also invested in a controversial project and it really needs a win in order to regain its reputation.

07:44 As a modern urban living construction company, the protesters on the other side come from the local community.

07:52 They're angry at the construction company because they think the company has mismanaged several projects, they fear gentrification and they want to prevent point the project at all cost.

08:05 They are kind of manning the barricades if you will, what they want is to be heard and they want more traditional homes at affordable prices.

08:16 The owners are the people who have already invested in the construction company who actually are middle-class looking for modern conveniences, safe neighborhoods, and they also think that it's time to find a solution to the problem.

08:33 If we look at some of the issues involved it's what to do with the construction? What to do about safety? What to do about the cost of the damages inflicted by the protest? How to integrate infrastructure into the community project and how to generate acceptance for the new community residents who will be moving in once the project is completed.

08:59 Now if we look at the problem and identifying the problem.

09:03 What do we think could be a joint problem statement? Could it be that we need to develop a residential project that is integrated in the local community and respects local values and at the same time for fills a progressive understanding of the community.

09:25 Once we have a joint statement created by A. the owners B. the protesters.

09:32 And C. the construction company, we can move to step for how to develop options how to generate options, creative options that meet the needs of all sides.

09:44 In doing so, here are a couple of tips you can use.

09:48 Number one, look for low cost high value solutions.

09:54 For example, could the construction company keep the area where the monument is as a park and I'm part where everybody can come and enjoy a Sunday afternoon.

10:07 A second tip would be how to lower the overall cost for everybody involved.

10:14 Could the construction company actually outsourced the maintenance of the park to a local organization that will make sure that everyone is able to get involved at lower cost.

10:26 A third tip you can use is to improve the options on the table.

10:31 Is it possible that we can find a way to provide space within the new residential building that actually can be used for community purposes.

10:41 Bringing different options together.

10:44 And lastly, creating new resources.

10:48 Every single family moving into the new residential neighborhood.

10:52 What welcome having a local kindergarten, community center or spaces where everybody can meet, if everybody could come together and educate some space in the residential project to community building, we will all be better off.

11:09 Now once we've developed some options that we can all use step 5 involves taking responsibility.

11:17 Taking responsibility for creating value.

11:21 Not just claiming value.

11:23 What's mine, no no, that's yours.

11:25 Actually it's about can we create something more.

11:30 We need to use objective criteria have realistic commitments and also accept the consequences of whatever were we agree.

11:39 How do we do that? Well, we can go out and look to see how other sustainable projects are being built.

11:47 What is actually the possibility that the construction company can invest in community building or do we need to bring in some outside people, the people at the table must take responsibility for the outcomes.

12:02 Once you've assessed the relationship, repair the negotiation, identify the problem, develop options and made realistic commitments, we want to take a break and we want to stop and we want to consult ourselves and our supporters and ask what are the alternatives we have.

12:20 This is what we call the famous BATNA: the Best Alternative To a Negotiated Agreement.

12:27 That means that every single person sitting at the table needs to think what is their option which they have in their pocket.

12:38 If no agreement is reached what will the protesters do if the construction company just continues to build.

12:46 What will the construction company do if the protesters don't go away? And what will the owners do if the construction company in the protesters cannot get along you're going to have to ask yourself these questions and here's a secret, most people never ask what happens if the negotiations collapse.

13:08 The last thing you want to ask yourself is how can I legitimate discourage the other side from walking away.

13:17 So how does BATNA look in the practice? Well, imagine the three friends walk away and nobody buys a pumpkin.

13:24 What will they do? In reality, one of them will probably think of a plastic bowl instead of the real pumpkin bowl.

13:33 The other one might abandon the whole entire pumpkin seed bread and buy a banana bread.

13:39 And the last one might not make a soup and might end up making a fresh lemon pie.

13:45 Actually, they could have thought of this on their own but they just didn't think about it.

13:49 They were so caught up in the emotion that they actually abandoned the whole thing.

13:56 Now if we look again at the OR construction company, we can ask ourselves, What would the OR Construction Company do if no agreement is reached.

14:07 The reality is they will raise the walls up defend themselves and try to weather the storm.

14:15 We know from protest that often they just Peter out on their own.

14:21 What would the community do if the OR Construction Company continues to build they might continue protesting they might take legal action, they might find higher politicians who can intervene on their behalf.

14:36 And lastly, we ask ourselves what could the owners do if no agreement is reached? They can start charging for example, the OR Construction Group, they can abandon the project, they can sue in court, all these things will feed into the calculation of whether they're going to reach agreement or not.

14:57 Once we have assessed, that the BATNA's are not very strong.

15:01 They might be even what we call a WATNA: a Worst Alternative To a Negotiated Agreement.

15:09 Who wants to protest in the winter who wants to have a long drawn-out court case and who wants to put the safety of their team in danger when protests are going on outside.

15:22 Actually these three actors have more in common and have more of a possibility of reaching an agreement that is a win-win option for all of them.

15:33 Once we know that our BATNA's are not very good, we can move to the last step integrating the results.

15:42 What do we mean by integrating results? Well, no agreement is a real agreement until it's implemented and we want to give it the best chance possible.

15:52 We want to make sure that it is sustaining the value created in the negotiation.

15:57 We want to ask ourselves who needs to be informed to make sure the agreement is implemented.

16:05 Who can support the agreement.

16:08 What kind of resources are needed in order to make sure we have success.

16:14 And lastly, how do we monitor and evaluate the agreement made? These are the seven steps in finding an integrated solution in strategic negotiations.

16:27 Number one, assess the relationship.

16:30 Number, to prepare those negotiations for success.

16:34 Once you've done these two things you want to make sure that you sit at the table. Jointly with the other side and you identify the problem.

16:43 Together you will develop options generate new and creative ideas and you will evaluate those options to make sure you take responsibility for realistic commitments and legitimate outcomes.

16:57 Once you've done all that, you're going to assess your alternatives to make sure that your agreement is better than the alternatives of walking away.

17:06 And finally you will integrate the results into your local community.

17:10 Now, what we would like to do is to look at the five golden rules of negotiation.

17:16 Number one, separate the people from the problem.

17:21 The people are not the problem, the problem is the problem.

17:25 Negotiate with the people how to solve the problem.

17:29 Number two.

17:30 Any agreement reach has to improve the relationship.

17:35 It cannot hurt the relationship.

17:37 Nobody will Implement an agreement when they're in pain.

17:41 Number three, anything you agree to has to be the best amongst all the available ideas and options at the table because when you go home people will measure it against everything you didn't agree to.

17:59 Number four, the agreement has to be better than every other BATNA sitting at the table, and number five, you want to make sure that the agreement stands firmly on its own two feet to by having legitimate criteria.

18:18 When people go home people will ask why did you agree to this and you have to have some objective way of measuring your agreement.

18:30 If you don't follow these five golden rules, you can escalate the conflict create a satisfaction leave unclaimed value at the table and you might actually ruin good relationships.

18:47 In summary, I hope you have been able to understand.

18:50 What is the step by step approach to finding a win-win solution.

18:56 I hope you will also be able to assess relationships when you sit down at a negotiation table.

19:02 That you are able to distinguish between your interest and your positions and that you understand what is important in generating as many options as possible.

19:14 Now that you know the five main golden rules in interest-based negotiations, you are ready for success.

19:23 And finally, interest-based negotiation is one of the most successful ways of approaching negotiations.

19:29 No doubt about it.

19:31 However, it is not easy.

19:34 It takes time and dedication.

19:36 You need to invest in a negotiation in order to get the maximum output.

19:42 With this step-by-step approach, you will be able to design, prepare and execute, a successful negotiation that meets your interest fully, where possible, acceptably, where necessary, and taller be in difficult situations.

19:59 I wish you all the best in your next integrative negotiation.

20:04 Thank you very much.