Aspects of NEGOTIATION: Principles & Practices

Dr. Paul E. Guise
CultureConsult.ca
What is Negotiation?
“An act of dealing with another person; a private or business transaction.” (OED)
Alternative Methods for   Decision Making
Say ‘no’
Use persuasion
Problem solve
Use chance - flip a coin!
Use arbitration
Use coercion
Postpone (until… later)
Instruct - pull rank
Say ‘yes’ 
NEGOTIATE
Sources of Power
Reward power
Coercive power
Legitimate power
Referent power
Expert power
Subtleties (not Subtitles)

What is being negotiated?
The difference between pay and compensation

One can only negotiate positions, not issues, principles, or interests
The Process of Negotiation
Prepare
Debate
Propose
Bargain
The Process of Negotiation
Ranges of Negotiation

Tangible & Intangible Negotiables
The Process - Prepare
Know the issues, circumstances, precedents, and options (this gives you power)

Chart your priorities into HIGH, Medium, low; assess the likely priorities of your opposite
The Process - Prepare
Issues, interests, and positions are all distinct terms. We aim to satisfy our interests by negotiating specific positions on any number of issues.
Interests
These are the core needs one tries to satisfy via negotiation

Example: My position on the issue of a salary increase will serve to satisfy my interest in being able to afford daycare, or healthcare, or tuition, or…
Issues
A salary increase is an issue; an increase of 3.2% is a position

Issues always relate back to interests; thus, one can often avoid contentious issues (like a salary increase) by finding creative solutions to satisfying interests
Positions

Positions are specific targets (or ranges), such as a pay raise of $4300/yr, a reduction in sick leave of 20%, or a 15-minute limit on use of a public computer
The Process - Debate
Direct (in person, via telephone) or indirect (email, post)
Not a formal “be it resolved” debate, more like an open and engaged discussion
Fine tune your homework, send signals
Consider all perspectives, including the humbling idea that you may be wrong
Listen more than you speak
The Process - Debate
Speak only in order to:
Present statements of “fact”
Offer assurances
Ask questions
Summarize
Send signals
Destructive vs. Constructive Debate (an aside)
Assertions and assumptions
Irritation and interruption
Point scoring
Attacking/blaming
Issuing threats
Neutral statements
Offering assurance
Posing questions
Summarizing what you hear
The Process - Propose
Note that NOTHING IS DECIDED UNTIL EVERYTHING IS DECIDED!
The Process - Propose
An effective proposal should contain two parts: the condition and the offer, in the form, “if you…, then I…”

The condition always comes first, and can be specific or non-specific

The offer is always non-specific
The Process - Bargain
Bargaining is all about specifics, such as:
1) $50/hr
2) billed by the half-hour
3) pre-paid quarterly
4) cash only
5) receipt issued
6) no refunds under any circumstances (etc.)
The Process - Bargain
A formal bargain marries a specific condition to a specific offer

Once ALL bargaining is complete, the negotiation is made official via a written, jointly signed agreement
Tactics of Negotiation
Two styles of negotiation:

Red / hot / confrontational
			•I win when you lose
			•More for me = less for you

Blue / cool / collaborative
			•Success means no one loses
			•More means more for all
Confrontational Tactics
Good cop, bad cop
Over-valuing features
Setting pre-conditions
Making high initial demands
Issuing threats
Setting hasty deadlines
Collaborative Tactics
Measuring risk on small items
Linking issues
Making realistic offers
Seeking interests, not positions
Hiring? Why???
Vacant position
Increased funding
Meeting future demand
The Joneses
The Job Ad
Does the ad accurately reflect the institution?
Is the job clearly defined?
Too clearly?
Does a qualified candidate exist?!
Why should they choose you?
Negotiable points
Hidden (and not-so-hidden) signals
The CV & Cover Letter
What is the story behind the details?
Gaps in qualifications can indicate an opportunity to negotiate
Is the cover letter aligned with the CV?
Does the cover letter present negotiable points?
Does it offer signals?
The Applicant
Who is the individual who is applying?
What interests are they trying to satisfy by working for you/your organization?
The Applicant
Is there room to negotiate?
Which tangibles & intangibles can be negotiated?
Is the applicant too good for the job? Is the job too poorly defined?
Hire people: don’t fill positions!
The Interview
The careful use of language can help you guide the interview
Speak only in order to present statements of “fact”, offer assurances, ask (relevant) questions, summarize, send signals)
Who is doing the choosing?
Do the applicant’s crazy ideas have merit? Do you have all the answers?
The Job Offer
A suitable offer is found between an acceptable offer and an appealing offer
Don’t promise if you can’t deliver  retention problems
There is little value in an undocumented agreement
Negotiating Organizational Renewal
Retirement = Recruiting (?) 
Baby Boomers
Gen X, Y (Slackers & Hackers)
How are they different?
Hiring people, filling positions
We Have a Plan!
Having no plan is no good, but…
Top-down plans rarely work
When you retire, what happens to your power?
Issues of agency
Needs Assessment: the basics
The satisfaction of needs drives human behaviour
Needs are plural - people strive to satisfy multiple needs simultaneously
A specific need can often be satisfied; needs (pl.) cannot
Needs Assessment: types of needs
Social interaction
Association
Short-term task refinement
Long-term task refinement
Satisfaction of external requirements
Needs Assessment: your organization
What basic interests is the institution trying to satisfy?
What basic interests are the current employees trying to satisfy?
Shared vs. individual interests
Needs Assessment: new individuals
What basic interests are prospective employees trying to satisfy?
Are any basic interests shared with current staff? Are there conflicts?
Do their individual interests gel with institutional needs?
Aligning Needs
Determine which needs are most frequently stated & focus on them
As needs become harder to address directly, ensure policies don’t block creative ways of meeting them
Aligning Needs
Try not to over-specify the details
Flexibility allows individuals to find personal paths to satisfy personal needs
A detailed plan may be a rigid plan
After The Plan?
The plan is never finished: it should be a living document
Aim to be flexible, dynamic
Don’t close off possibilities just to be tidy
Summary
Negotiation is:

	- the process of “conferring, discussing, or bargaining to reach agreement”

	- one of many approaches to decision making
Summary
Prepare your homework
Debate to learn more & send signals
Propose general terms
Bargain every last detail
NOTHING is decided until EVERYTHING is decided!
Summary
There are many different pathways to a successful negotiation

There is a difference between interests, issues, and positions

Know when to use specific terms, and when to remain non-specific
Summary
When hiring, try to understand the interests of the applicant
Look for an applicant who meets your interests - keep your positions flexible!
Focus on areas of common interest, where there is room to negotiate
Summary
An imposed plan is easily ignored - when the cat’s away… 
Group negotiation balances individual needs and group effects
Leave the Bargain flexible, as needs change over time
BLATANT SELF-PROMOTION (Courses offered)
Negotiation - an Introduction
The Language of Negotiation
Non-verbal Aspects of Negotiation 
Negotiation for Job Seekers
Negotiation for Job Providers
Negotiation and Organizational Renewal
But wait! There’s more!
Marketing - an Introduction
Marketing - Methods of Delivery
Marketing Cultural Events
Careers in Culture
Aspects of Cultural Enterprise (series)

Customized consulting
Visit CultureConsult.ca
Dr. Paul E. Guise
	BMus, MMus, MBA, PhD

	637 Oxford Street
	Winnipeg, Canada, R3M 3J3
	Tel: +1-204-487-1461
	Email: pg@cultureconsult.ca
	
				All contents © 2010 Culture Consult