Negotiation & Conflict Resolution. Keith Allred
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1 Negotiation & Conflict Resolution Keith Allred 1
2 Three Dimensions of Performance Claiming Value: Seeing to it that your own interests are served Mine Yours 2
3 Three Dimensions of Performance Claiming Value: Seeing to it that your own interests are served Mine Yours Creating Value: Finding resolutions that satisfy both parties interests to the extent possible Mine Yours 3
4 Three Dimensions of Performance Claiming Value: Seeing to it that your own interests are served Creating Value: Finding resolutions that satisfy both parties interests to the extent possible Mine Yours Mine Yours 4
5 Three Dimensions of Performance Claiming Value: Seeing to it that your own interests are served Creating Value: Finding resolutions that satisfy both parties interests to the extent possible Mine Yours Mine Yours Enhancing the On- Going Relationship 5
6 Tensions Among the Three Performance Dimensions Competitive moves to claim value are frequently at odds with cooperative moves to create value and to maintain the relationship 6
7 Claiming Value Concept #1: BATNAs Best Alternative To a Negotiated Agreement Defines the minimally acceptable threshold for an agreement Any agreement which is less attractive to you than your best alternative is necessarily not in your best interest BATNAs are the primary source of negotiation power 7
8 Claiming Value Concept #2: ZOPA s ZOPA Zone of Possible Agreement Employee s BATNA Employer s BATNA 8
9 Best Practices for Claiming Value Get an accurate read on your own BATNA Get as accurate a read on the other party s BATNA as possible Work to improve your BATNA Be at least assertive enough to check if there are solutions that meet your interests Use good persuasion practices 9
10 EMPLOYEE S PREFERENCES Salary Medical Vacation Start Date $68,000 (660) 100% (100) 3 weeks (240) Mar 15 (300) $66,000 (495) 90% (75) 2 1/2 (180) Mar 1 (225) $64,000 (330) 80% (50) 2 weeks (120) Feb 15 (150) $62,000 (165) 70% (25) 1 1/2 (60) Feb 1 (75) $60,000 (0) 60% (0) 1 week (0) Jan 15 (0) EMPLOYER S PREFERENCES Salary Medical Vacation Start Date $68,000 (0) 100% (0) 3 weeks (0) Jan 15 (0) $66,000 (25) 90% (165) 2 1/2 (60) Feb 1 (75) $64,000 (50) 80% (330) 2 weeks (120) Feb 15 (150) $62,000 (75) 70% (495) 1 1/2 (180) Mar 1 (225) $60,000 (100) 60% (660) 1 week (240) Mar 15 (300) 10
11 Sources of Value Creation Logroll: Concede on issues of lesser importance in order to gain on issues of greater importance Seek to have both parties interests served, not to defend your positions There are usually more ways to serve your interests than just the position you ve staked out 11
12 Interests over Positions Example: Sinai Peninsula Conflict Intractable conflict over the Sinai Peninsula Then come the Camp David Accords and the focus on interests over positions
13 Best Practices for Creating Value Be other minded seek to understand the other side s: Relative priorities on the issues Interests underlying their positions Ask the why question Multiple Simultaneous Offers Mediator 13
14 Developing & Sustaining Cooperative & Trusting Relationships The most fundamental negotiation and conflict resolution skill The relationship often matters more to you than the outcomes of a given interaction By developing a cooperative and trusting relationship, you ease the most challenging dilemmas between claiming & creating value 14
15 Self-Perpetuating Relationship Cycles Human relationships have something of a tendency to fall into either virtuous or vicious cycles There are biases and misperceptions that can create vicious cycles of conflict, distrust, and recrimination There are processes that can create virtuous cycles of mutual cooperation, trust, and respect Suspicion Trust Recrimination Cooperation 15
16 Vicious Cycle Trigger #1: Naïve Realism If I see it that way, that must be the way it really is: I m an objective and reasonable person Other reasonable and objective people should reach the same conclusions that I have If others reach a different conclusion, it must be because they are unreasonable and/or have suspect motives 16
17 Vicious Cycle Trigger #2: Confirmatory Bias Confirmation Bias We tend to seek out information that confirms pre-existing preferences or beliefs and ignore contradictory information Example of Stanford study on capital punishment 17 17
18 Vicious Cycle Trigger #3: Blaming Dynamics Our reaction to other people s behavior is the result not only of what they did......but also why we think they did it. 18
19 Vicious Cycle Trigger #3: Blaming Dynamics Judgments of Responsibility for a Harmful Behavior Resentment & Anger Retaliation: - Overt - Covert 19
20 Vicious Cycle Trigger #3: The Biases of Blaming Dynamics Accuser Bias: The tendency to: Blame another party s negative behavior on factors within their control Not recognize factors beyond their control Excuser Bias: The tendency to: Blame our own negative behavior on factors beyond our control Not recognize factors within our control 20
21 Trigger #3: Blaming Dynamics Lead to Conflict Spirals Party B Accuser Bias Judg.of Resp. For Harmful Behavior Anger Retaliate Harmful Behavior Counter- Retaliate Anger Judg.of Resp. for Unjust Retaliation Excuser Bias/ Accuser Bias Party A 21
22 Vicious Cycle Trigger #4: The Lone Moderate Illusion When our group is in conflict with another group, we often think: That the average person on the other side is more extreme than they really are That the average person on our own side is more extreme in the other direction than we are ourselves 22
23 Best Practices for Maintaining Relationships: Overcoming Vicious Cycles Recognize that reasonable people can come to different conclusions than you When blaming someone else, look for circumstances that explain; ask before pulling the trigger on blame To manage justified anger, think of a time when others forgave you When excusing yourself, look for factors within your control Recognize that your moderate views are likely close to the majority view, despite indications to the contrary 23
24 Best Practices for Maintaining Relationships: Overcoming Vicious Cycles Don t try to de-bias the other side yourself Use a third party to bring in an additional, objective view Use Mirroring: The exercise of having each side express as accurately as they can the other side s views and then correcting each other 24
25 Causes of Virtuous Cycles: Having A Sense of Fair Process People feel a process is fair when they participate in the process: Selection of procedures: rules of the game Voice: The opportunity to voice one s side or perspective Feeling like one s view has been heard and considered 25
26 Causes & Consequences of Procedural Justice Satisfaction with Outcomes Processes: Provide Participation & Voice Perceptions of Fair Processes Willingness to Settle Compliance with Agreements Trust, Commitment, & Loyalty 26
27 Best Practices for Creating Virtuous Cycles of Trust and Cooperation Actively listen to the perspective of the other side, even when you don t agree with it Try harder to find the merit than the flaw in what they re saying Treat them with consideration and respect, even when they re not treating you that way Invite them to help craft the process for addressing the issue 27
28 Abraham Lincoln In the 1854 Lincoln orchestrates election of a narrow majority of anti-slavery Whigs and independent Democrats in the Illinois legislature He becomes a candidate for the US Senate 28
29 First Ballot for US Senator in Illinois Legislature in 1855 Lincoln 45 votes James Shields Incumbent, Pro-Nebraska Act Democrat 41votes Lyman Trumball Anti-Nebraska Act Democrat 5 votes 29
30 Ninth Ballot for US Senator in Illinois Legislature in 1855 Lincoln James Shields Incumbent, Pro-Nebraska Act Democrat Lyman Trumball Anti-Nebraska Act Democrat 30
31 Ninth Ballot for US Senator in Illinois Legislature in 1855 Lincoln Joel Matteson Governor, Democrat Lyman Trumball Anti-Nebraska Act Democrat 15 votes 47 votes 35 votes 31
32 Tenth Ballot for US Senator in Illinois Legislature in 1855 Lincoln Joel Matteson Governor, Lyman Trumball Anti-Nebraska Act Democrat Democrat 0 votes 51 votes 32
33 McCormick v. Manny Patent Dispute Originally to be tried in Chicago Lincoln retained as local counsel Venue change to Cincinnati National team no longer wants Lincoln, but they don t tell him 33
34 McCormick v. Manny Why did you bring that damned long armed Ape here he does not know anything. Edwin Stanton to George Harding, 1855 See Doris Kearns Goodwin, Team of Rivals: The Political Genius of Abraham Lincoln (pp ) 34
35 Trumbull at the Republican Nominating Convention in 1860 The Republicans in Nominating Convention, in their Wigwam at Chicago Harper s Weekly, May 19,
36 Abraham Lincoln At their next encounter six years later, Lincoln would offer Stanton the most powerful civilian post within his gift the post of secretary of war. Lincoln s choice of Stanton would reveal, as would his subsequent dealings with Trumbull a singular ability to transcend personal vendetta, humiliation, or bitterness. As for Stanton, despite his initial contempt for the longarmed Ape, he would not only accept the offer but come to respect and love Lincoln more than any person outside of his immediate family. Doris Kearns Goodwin, Team of Rivals: The Political Genius of Abraham Lincoln (p. 175) 36
37 Abraham Lincoln Lincoln s treatment of Trumbull & Stanton not only reflects the largeness of his soul It also reflects the practical effectiveness of his leadership By treating them generously he avoided the costs of a vicious cycle and realized historychanging benefits of virtuous cycles 37
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