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Effective Win/Win Negotiation Strategies for Lasting Relationships

Join Dave Kaczmarek, a seasoned expert in negotiations, as he delves into effective strategies for achieving win/win outcomes. This presentation emphasizes the importance of cooperation over competition, focusing on understanding interests rather than positions. Key elements include recognizing the human aspect of negotiations, generating creative options, and establishing objective standards to guide discussions. Learn to ask the right questions and develop your Best Alternative to a Negotiated Agreement (BATNA) to enhance your negotiating power and foster sustainable relationships.

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Effective Win/Win Negotiation Strategies for Lasting Relationships

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Presentation Transcript

  1. NEGOTIATIONS WIN/WIN Presented by: Dave Kaczmarek, CMRP, FAHRMM Senior Director, Huron Healthcare 312-718-6031 Dkaczmarek@huronconsultinggroup.com

  2. A New Car List price $25,000 Your target $22,000 For commission $20,000 Your first offer $19,000 Final price $21,000 Win/Win????

  3. When do YOU negotiate?

  4. SHOULD I NEGOTIATE? Questions to Ask • Can I live with the current offer? • What’s the probability of a better solution? • Do I have the time to invest? • Do I have the necessary knowledge? • Do I have the power to impose my solution?

  5. WHO IS YOUR AUDIENCE?

  6. NORMAL NEGOTIATION STYLES • Adversarial (Hard) • Take positions • Clarify and defend • Convince • Concessionary (Soft) • Worry about relationship • Sloppy agreements • Vulnerable

  7. WIN - WIN WIN - LOSE CONTRASTING STYLES

  8. WIN/WIN PRINCIPLES Cooperation People & Problems Interests Not Positions Creative Options Objective Standards

  9. COOPERATION • Partners in finding a solution • View as an opportunity to problem solve • Both outcome AND process are important • The relationship should be enhanced

  10. PEOPLE & PROBLEMS Failing to deal with others sensitively as human beings prone to human reactions can be disastrous for a negotiation. - from Getting to Yes

  11. PEOPLE & PROBLEMS • Negotiation happens at two levels • Substantive • Interpersonal • Egos become involved • Parties draw unfounded inferences

  12. PEOPLE & PROBLEMS • Accurate perceptions • Appropriate emotions • Clear communication • Forward-looking, purposive outlook Base the relationship on:

  13. INTERESTS NOT POSITIONS Interests: - the silent movers behind the positions Composed of - desires - needs - concerns - fears

  14. INTERESTS NOT POSITIONS Reconciling interests works because For every interest Several possible positions Behind opposed positions More shared interests

  15. INTERESTS NOT POSITIONS How do you identify interests? • Ask “why” • Ask “why not” • Realize there are multiple interests • Focus on basic human needs

  16. INTERESTS NOT POSITIONS Explain What Your Interests Are: • Make your interests come alive • Acknowledge their interests • Put the problem before your answer • Look forward not back • Be concrete but flexible

  17. CREATIVE OPTIONS To invent creative options you must: • Brainstorm with colleagues • Brainstorm with other side • 1. Separate inventing from judging

  18. CREATIVE OPTIONS To invent creative options you must: • 2. Broaden the options on the table • Don’t look for the single answer • Use facilitation techniques • Change the scope • Invent different strengths

  19. BROADEN THE OPTIONS Stronger Weaker Substantive Procedural Permanent Provisional Comprehensive Partial Final In principle Unconditional Contingent Binding Nonbinding

  20. CREATIVE OPTIONS Let’s Divide a Pie

  21. Let’s Divide a Pie This Kathi Kathi Dave Dave Kathi Dave This

  22. CREATIVE OPTIONS To invent creative options you must: 3. Search for mutual gains • Make the pie bigger • Identify shared interests • Dovetail differing interests • Ask for preferences

  23. CREATIVE OPTIONS To invent creative options you must: 4. Make their decision easy • See through their eyes • Look for legitimacy • What are the consequences • Do a “yesable proposition” Sufficient Realistic Operational

  24. OBJECTIVE STANDARDS Market value Precedent Fair Standards: Efficiency Tradition Equal Treatment Reciprocity Scientific judgment Costs Professional/moral standards What a court would decide

  25. OBJECTIVE STANDARDS One divide, the other choose Fair Procedures: Take turns Use arbitrator Develop solution before you decide who will do which Last best offer arbitration

  26. OBJECTIVE STANDARDS • Frame each issue as a joint search • Reason and be open to reason • Never yield to pressure - only principle Negotiating With Objective Criteria:

  27. WIN/WIN PRINCIPLES Cooperation People & Problems Interests Not Positions Creative Options Objective Standards

  28. DON’T REACT Go to the Balcony • What is a • B • A • T • N • A est lternative o a egotiated greement

  29. DEVELOP YOUR BATNA • See your alternative in the aggregate • Be unduly pessimistic • Agree or not agree unwisely Without One It Is Easy To:

  30. DEVELOP YOUR BATNA • Invent a list of actions • Improve some of the more promising • Select, tentatively, the best one

  31. A WIN/WIN RESULT Destroy Your Adversary By making him your partner in problem-solving negotiation

  32. WIN/WIN PRINCIPLES Cooperation People & Problems Interests Not Positions Creative Options Objective Standards

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