Caf a la Fikr Negotiation Muhamad Aly Rifai

ﺑﺴﻢ ﺍﻟﻠﻪ ﺍﻟﺮﺣﻤﻦ ﺍﻟﺮﺣﻴﻢ Café a la Fikr Negotiation Muhamad Aly Rifai, MD, CPE, FACP, FAPM, FAPA Chairman , Department of Psychiatry Blue Mountain Health System Professor of Clinical Psychiatry and Medicine The Commonwealth Medical College

Negotiation is a process by which parties move from divergent positions to a point where agreement can be reached. Negotiation is both reason and emotion

Negotiation is not. . . War or Competition

We negotiate every day. . . at home. Negotiation means dialogue.

Negotiation v Everyday we are expected to make decisions that may have lasting effects: v Do I negotiate with the customer that is obnoxious, demanding and unreasonable? v Do I end a business relationship when the other party injures me financially? v Do I negotiate with my life partner who has betrayed me about how much time I get to spend with our child ?

We negotiate every day. . . at work. Negotiation means justifying and persuading the other person

We negotiate every day for many things. Negotiation means bargaining

Negotiation Framework v Alternatives to negotiated agreement v Are contracts binding v Is there linkage v Costs or benefits to delay v Uncertainty v Third party intervention v Principals or agents v Are the parties monolithic

Negotiation Framework v Are negotiations private or public v Precedent/history v Context v People v Parties: number of sides v Issues: factors to be resolved v Options: possibilities for each issue v Position: stated options v Interests: underlying objectives

Negotiation; definitions v Parties: number of sides v Issues: factors to be resolved v Options: possibilities for each issue v Position: stated options v Interests: underlying objectives

Negotiation parameters v BATNA: v Best Alternative to Negotiated Agreement v Reservation value: v maximum amount willing to pay (buyer), v minimum amount willing to accept (seller) v Contract zone: v difference between buyer’s and seller’s RVs v Aspiration value: goal or target

Strategy; Distributive Bargaining v Preparation v Negotiation framework v Negotiation parameters (yours and theirs) v Identify sources of bargaining power v Focus on your target, not on RV v Influence the perceptions of the other side v Anchoring

Strategy; Distributive Bargaining v Offers v Who should make the first offer? v What should your first offer be? v Counteroffers v Concessions v What information should I keep and what information should I share ?

Strategy; Integrative Bargaining v Integrative, or “win/win” negotiation can exist when there is more than one issue and v Negotiators differs from one another v Differences in preferences v Differences in beliefs about the future

Obstacles to Finding a Win/Win Agreement v Assumption of a fixed-pie v Pre-mature judgment v Ignoring the interests of the other side v Resolving each issue independently

Strategy: integrative bargaining v Negotiate over interests not positions v For every interest, there may be several positions that satisfy it v Behind opposed positions lie shared and v compatible interests as well as conflicting ones v Negotiating over positions commits you to a v particular position, not a particular interest

Strategy: integrative bargaining v Separate the process of thinking up possible solutions from the process of deciding among them v Conduct a brainstorming session v Broaden the options on the table rather than v look for a single answer v Generate a variety of possibilities before v deciding what to do

Strategy: integrative bargaining v Build trust and share information v Ask questions v Be creative v Separate the people from the problem v Logrolling v Cost-cutting v Bridging v Negotiate over package, not issueby-issue v Initial agreements and Post-Settlement v Mediation

The Negotiator’s Dilemma Tension between competitive and cooperative tactics How do you know what balance will be most successful?

The Nitty Gritty Details v In person? On the phone? Email? v When is the best time to negotiate? v Location v Bluffing v Pace

Closing the Deal v How does the agreement meet their interests? v How can precedents be used to justify the deal? v What are their intangible motivations? v Who might be blocking a deal? v How can they save face?

Rifai ‘ top ten 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Recognize opportunities to negotiate Preparation Match tactics to situation Understand the other side’s perspective Keep your target in mind during negotiation Be strategic about what information to share Look for win/win opportunities Role play Get yourself psyched up Go to the “Negotiation Gym”

Emotions v Impact of positive emotions v encourage creativity v enhance problem solving v can lead to better agreements for both sides v help to preserve or enhance relationship v are contagious

Impact of negative emotions v Lose focus on objectives v Limits ability to listen v Refuse concessions v Harms your reputation v Inhibit creativity v Damage relationship v Are contagious

Role Playing 101: Anticipate Surprises v Write down your plan v Identify flash points v Decide what to say v Get help v Brief your partner v Rehearse several times v Debrief v Repeat

Recommended Reading v Negotiation Genius (Malhotra and Bazerman) v Getting to Yes (Fisher, Ury, and Patton) v Getting Past No (Ury) v Bargaining for Advantage (Shell) v The Art and Science of Negotiation (Raiffa) v Women Don’t Ask (Babcock and Laschever) v Ask for It (Babcock and Laschever)