Collaboration

Michael J. Hostetler

Consider a recent disagreement or conflict situation at work

How did you feel as you worked through the disagreement?

Was it successfully resolved? If so, how? If not, why not?

What, if anything, did you learn from the experience?

Conflict Management Negotiation Collaboration

Conflict Management as a Key Leadership Skill

Make a persuasive case for your point of view

Marshal the resources (including the people!) necessary to carry out your strategy

Find creative solutions to the challenges your unit/department faces

Establish productive collaborative relationships with subordinates (as well as clients, vendors, and customers)

PlanningStep 1: Who Am I?

• What do I care about?

• What can I not live without?

• What can I trade away?

PlanningStep 2: Who Am I Dealing With?

• What do they care about?

• What can they not live without?

• What low-cost goods or services can they provide me that

meet my interests?

PlanningStep 3: What Are the Norms and Rules?

• What are the rules?

• Will you see each other again?

• Do you care about your own reputation?

• Are there time pressures?

• Where are you negotiating?

PlanningStep 4: Set Parameters

• Reservation Point (RP): The bottom line; the point at which a negotiator is indifferent between a negotiated agreement and an impasse.

• Target: Each side's goals or aspirations; the most each party reasonably hopes to achieve in the negotiation.

• BATNA: Best Alternative to a Negotiated Agreement (i.e., what do you do if no deal?)

TexoilDiagnosing Deals and Impasses

Tough Talk: Win-Lose Tactics

• Allude to other offers• Unexpectedly lose temper• Threaten• Use Boulwarism• Employ 11th hour tactics

• Flatter

• Make inflated opening offers

• Highlight constraints

• Stall

• Rely on limited authority

Parties’ Interests

• Station owner’s interests • Texoil’s interests

Collaboration

• Interests: the big things you need

• Positions: what you ask for to meet your interests

Win-Win Tactics

Ask questions about interests “Why?” “Why not?”

Frame your perspective Interested in buying the

station, but have constraints Are there other issues you

can add to the mix?

Major Mistakes in Negotiation

Assuming prematurely that the pie is fixed, or

Relying on aggressive tactics that push people away (relationship problem) and that fix, or even shrink, the size of the pie (resources problem)

Lessons

Hold firm to your interests Look for creative ways of

meeting them Try to understand the other’s

interests and constraints Listen to what the other is

saying Remain calm

Get better negotiated agreements

Avoid making faulty assumptions

Correct faulty assumptions Understand perspectives and

interests Honor differences of opinion

When life gives you an orange, take what you need and deal the rest.

Advanced Tactic: Make Multiple, Simultaneous OffersAdvantages

• Anchor the negotiation• Collect information about the other side, especially about

priorities• Allows you to be aggressive – signal cooperation

through the fact that you are offering a menu• Test what the other side is telling you• Allows you to be more persistent• Make “concessions” that do not cost you anything• Highlight your own value-added

Creating Integrative Agreements

Trading Issues (Logrolling) Compensation over Time (I owe

you one)

Know yourselfKnow the other side

Tactic: Post-Settlement Settlements

Definition: After hard bargaining, there is a package on the table acceptable

to both sides Both sides promise to agree on this package as a default Talks continue with each side having unilateral veto power over

any subsequent package

Advantages: Leverages prospect theory by placing both sides in certain gains Promotes sharing of truthful information Facilitates creative problem solving atmosphere

Sharing information leads to more successful deals.

Sharing information also puts one at risk for being exploited.

Managing the Dilemma

• The greater the trust, the less risky it is to divulge information

• Reveal a bit of information at a time (unilaterally, if necessary). Is it reciprocated?

• Tackle the negotiation in phases

• Be sure to remember that you are looking to meet your own interests

What if the Other Party Won’t Play?

• Focus on controlling yourself, not the other party

• Don’t counterattack

• Remember your own interests and your BATNA

• Don’t get mad; don’t get even; don’t “react” – “Go to the Balcony”

1. Go to the Balcony

• To diffuse anger and suspicion, don’t attack - listen

• Acknowledge their points and agree whenever you can

• Acknowledge their authority and competence whenever you can

• Don’t argue – “Step to Their Side”

2. Step to Their Side

• Don’t push or insist they negotiate – this usually makes people dig in

• Involve them in the process, incorporating their ideas

• Try to identify and meet their unmet needs

• Help them save face and make the outcome appear as a victory for them

• Go slow to go fast

• Don’t push – “Build Them a Bridge”

3. Build a Golden Bridge

• If the other side still resists, don’t threaten or use force – this usually backfires

• Educate them on the costs of not agreeing. Warn rather than threaten and demonstrate your BATNA.

• Minimize their resistance by exercising restraint and reassuring them your goal is mutual satisfaction, not victory.

• Don’t escalate – “Use Power to Educate”

4. Use Power to Educate