00:01
Hi and welcome to finding
a win-win solution.
00:04
Today we're going to focus
on inter space negotiations.
00:08
During this lecture, you will be able
to develop a step-by-step approach
to finding a win-win solution.
00:15
You will also be able to
assess the relationships within
in interest-based
negotiations situation.
00:22
You will learn to distinguish
between interest and positions
and you will also understand
what is important in
generating creative options.
00:31
Lastly,
you'll be able to identify
the five golden rules in
inter space negotiations.
00:39
Now imagine that three friends
are invited to a harvest party
in the middle of autumn
at the University.
00:47
To go to this party,
You need to have something
edible related to the theme
then you get to get in for
free and you get some drinks.
00:56
Now three imaginary friends
go shopping together.
00:59
All of them have the same idea,
to buy a pumpkin
and bring a pumpkin dish.
01:06
Pumpkins are very
plentiful in Autumn.
01:08
They end up,
in front of the pumpkin stand
all staring at the same pumpkin.
01:15
The three of them get into an argument
about who should buy a pumpkin
and who should bring a
pumpkin to the party.
01:22
None of the three want
to give up their pumpkin.
01:26
They all want to be the one
with the unique pumpkin dish.
01:30
With no solution in sight,
the three leave the
store without pumpkins
and in a very bad mood,
the friendship is strained.
01:40
What day did not ask is
why they wanted to buy a pumpkin
and what did they
intend to bring.
01:47
One friend had in
mind a pumpkin soup.
01:51
He needed the Flesh
of the pumpkin.
01:54
The other was thinking of
making a pumpkin seed bread
so that everybody
could try a piece.
02:01
Wanted actually the
seeds of the pumpkin.
02:04
And the third friend
actually just had this idea
of creating a bowl
out of the pumpkin.
02:09
You and make it look
very harvesting.
02:12
What they all wanted to
do was to avoid a disaster
fighting over the pumpkin and
smashing it on the ground.
02:20
What they needed
to do was to stop
and do what we call
go to the balcony.
02:28
Going to the balcony
is to have an overview
of the situation
to almost go above everything
to a different level
and to look down and
say wait a minute,
What is going on here.
02:42
The goal
of any negotiation should be
to move away from confrontation
and to move towards cooperation.
02:50
This is done by what we
call expanding the pie.
02:55
It's a little bit of a joke
because we like pumpkin pies.
02:58
But the idea behind it
is that most people think
that we have limited resources
and that we need to get
our piece of the pie
before everybody else
gets a piece of the pie
and if we can expand the
pie we can have more pieces.
03:13
That's the basis of
Integrative negotiation.
03:17
Now, how do we achieve that?
What we need is a
step-by-step approach
that will make sure that we'll
keep our emotions in check
and will actually focus on
interest and not positions.
03:29
But before we do that we have
to do a couple of things.
03:32
The first thing we have to do is
we have to assess the relationship.
03:37
Now before you even get to the
table to sit down to negotiate
you want to understand
the relationship,
not only how the
relationship is right now,
but what was it in the past?
And how is it going
to look in the future?
What we need to understand
is these three friends
actually have a great
relationship right.
03:58
Now to little irritable,
but actually they want
to continue being friends
studying together possibly
even being roommates.
04:07
What we want to do with checking the
relationship is to check our assumptions.
04:12
We also want to understand
what kind of emotions are there
and to validate those emotions.
04:18
More importantly we
want to understand,
what is the perception
of the three sides
and in any negotiation
where interest or involve
we want to make sure that
we're building trust.
04:33
Once you understand what kind
of relationship is involved
and what kind of relationship
you would like to have
but you're ready for step two.
04:42
Preparing the negotiations.
04:44
What you want to do under
preparing the negotiation is
A. have good communications
B. have good analysis
and C. have good understanding.
04:54
What do we mean by this?
Well under good communication,
we want to have active listening.
04:59
We want to use the four
ears of communication
to make sure that we understood
what are the needs interests
and wishes of the other side.
05:09
Under good analysis,
we want to make sure we
understand who's involved.
05:14
Why are they involved?
And what is their outcome
that most fits their needs.
05:20
Lastly,
on the good understanding
we want to make sure
we have understood
all of that dynamics,
the perceptions,
and assumptions involved
in the negotiation.
05:31
Once you've assessed the relationship
and prepare the negotiations,
you ready to sit down at the table
and begin identifying the problem,
not by yourself
and not in your office,
but actually at the table
with the other people
in jointly identifying
the problem,
asking why people want?
For example the pumpkin,
we know now from the story
that they actually wanted
different parts of the pumpkin
and they could have
shared the pumpkin
had they just spent
a little more time
asking questions to have a
deeper meaning of the interest
and not just fighting
over who gets the pumpkin.
06:08
Understanding the
difference between positions
which are concrete,
explicit, and limited
and interest on the other side,
which are the reasons
we hind the positions
which fulfill those needs
will help us to understand
how to create
win-win situations.
06:25
Now a much more
complex situations.
06:28
What you want to do is to create
what we call a problem statement.
06:33
Problem statements have to satisfy
the interests of all sides.
06:38
They explore Mutual interests,
they fulfill basic needs
and they're created by
engaging the other side
in a discussion over
interest and needs.
06:50
In this discussion,
people will talk about the future
and not the past.
06:56
Now in order to
understand a little more
how to identify the problem
and what the next
step is going to be
let's look at one
of our case studies
which you can find in the
download section of this course,
it's called the OR
Construction Company.
07:12
It's a negotiation between
a construction company
and community leaders
over the building
of a new residential project.
07:21
Some of you may recognize
this from other lectures.
07:24
The OR construction company
is the largest company in
the region building housing.
07:30
It has a stellar reputation
but it has been losing money
in a couple of its projects.
07:36
It has also invested in
a controversial project
and it really needs a win
in order to regain
its reputation.
07:44
As a modern urban living
construction company,
the protesters on the other side
come from the local community.
07:52
They're angry at the
construction company
because they think the company
has mismanaged several projects,
they fear gentrification
and they want to prevent
point the project at all cost.
08:05
They are kind of manning
the barricades if you will,
what they want is to be heard
and they want more traditional
homes at affordable prices.
08:16
The owners are the people
who have already invested
in the construction company
who actually are middle-class
looking for modern conveniences,
safe neighborhoods,
and they also think that it's time
to find a solution to the problem.
08:33
If we look at some of
the issues involved it's
what to do with
the construction?
What to do about safety?
What to do about the cost
of the damages inflicted
by the protest?
How to integrate infrastructure
into the community project
and how to generate acceptance
for the new community
residents who will be moving in
once the project is completed.
08:59
Now if we look at the problem
and identifying the problem.
09:03
What do we think could be
a joint problem statement?
Could it be that
we need to develop
a residential project
that is integrated in
the local community
and respects local values
and at the same time
for fills a progressive
understanding of the community.
09:25
Once we have a joint statement
created by A. the owners
B. the protesters.
09:32
And C. the construction company,
we can move to step for
how to develop options
how to generate options,
creative options that meet
the needs of all sides.
09:44
In doing so,
here are a couple of tips you can use.
09:48
Number one, look for low
cost high value solutions.
09:54
For example,
could the construction
company keep the area
where the monument is as a park
and I'm part where
everybody can come
and enjoy a Sunday afternoon.
10:07
A second tip would be
how to lower the overall
cost for everybody involved.
10:14
Could the construction
company actually outsourced
the maintenance of the park
to a local organization
that will make sure
that everyone is able to
get involved at lower cost.
10:26
A third tip you can use is to
improve the options on the table.
10:31
Is it possible
that we can find a way
to provide space within the
new residential building
that actually can be used
for community purposes.
10:41
Bringing different
options together.
10:44
And lastly,
creating new resources.
10:48
Every single family moving into
the new residential neighborhood.
10:52
What welcome having
a local kindergarten,
community center or spaces
where everybody can meet,
if everybody could come together
and educate some space in
the residential project
to community building,
we will all be better off.
11:09
Now once we've
developed some options
that we can all use
step 5 involves
taking responsibility.
11:17
Taking responsibility
for creating value.
11:21
Not just claiming value.
11:23
What's mine, no
no, that's yours.
11:25
Actually it's about can
we create something more.
11:30
We need to use
objective criteria
have realistic commitments
and also accept the consequences
of whatever were we agree.
11:39
How do we do that?
Well, we can go out and
look to see how other
sustainable projects
are being built.
11:47
What is actually the possibility
that the construction company
can invest in community building
or do we need to bring
in some outside people,
the people at the table must take
responsibility for the outcomes.
12:02
Once you've assessed
the relationship,
repair the negotiation,
identify the problem,
develop options and made
realistic commitments,
we want to take a break and we
want to stop and we want to consult
ourselves and our
supporters and ask
what are the
alternatives we have.
12:20
This is what we call
the famous BATNA:
the Best Alternative To
a Negotiated Agreement.
12:27
That means that every single
person sitting at the table
needs to think what is their option
which they have in their pocket.
12:38
If no agreement is reached
what will the protesters do
if the construction company
just continues to build.
12:46
What will the
construction company do
if the protesters don't go away?
And what will the owners do
if the construction company in
the protesters cannot get along
you're going to have to ask
yourself these questions
and here's a secret,
most people never
ask what happens
if the negotiations collapse.
13:08
The last thing you
want to ask yourself is
how can I legitimate discourage
the other side
from walking away.
13:17
So how does BATNA
look in the practice?
Well, imagine the
three friends walk away
and nobody buys a pumpkin.
13:24
What will they do?
In reality, one of them will
probably think of a plastic bowl
instead of the
real pumpkin bowl.
13:33
The other one might abandon the
whole entire pumpkin seed bread
and buy a banana bread.
13:39
And the last one
might not make a soup
and might end up making
a fresh lemon pie.
13:45
Actually, they could have
thought of this on their own
but they just didn't
think about it.
13:49
They were so caught
up in the emotion
that they actually
abandoned the whole thing.
13:56
Now if we look again at the
OR construction company,
we can ask ourselves,
What would the OR
Construction Company do
if no agreement is reached.
14:07
The reality is they
will raise the walls up
defend themselves and
try to weather the storm.
14:15
We know from protest that often
they just Peter out on their own.
14:21
What would the community do
if the OR Construction
Company continues to build
they might continue protesting
they might take legal action,
they might find
higher politicians
who can intervene
on their behalf.
14:36
And lastly, we ask ourselves
what could the owners do
if no agreement is reached?
They can start charging for
example, the OR Construction Group,
they can abandon the project,
they can sue in court,
all these things will
feed into the calculation
of whether they're going
to reach agreement or not.
14:57
Once we have assessed,
that the BATNA's
are not very strong.
15:01
They might be even
what we call a WATNA:
a Worst Alternative To
a Negotiated Agreement.
15:09
Who wants to protest
in the winter
who wants to have a long
drawn-out court case
and who wants to put the
safety of their team in danger
when protests are
going on outside.
15:22
Actually these three
actors have more in common
and have more of a possibility
of reaching an agreement
that is a win-win
option for all of them.
15:33
Once we know that our
BATNA's are not very good,
we can move to the last step
integrating the results.
15:42
What do we mean by
integrating results?
Well, no agreement is a real
agreement until it's implemented
and we want to give it
the best chance possible.
15:52
We want to make sure that it is sustaining
the value created in the negotiation.
15:57
We want to ask ourselves
who needs to be informed to make
sure the agreement is implemented.
16:05
Who can support the agreement.
16:08
What kind of
resources are needed
in order to make
sure we have success.
16:14
And lastly, how do we monitor
and evaluate the agreement made?
These are the seven steps in
finding an integrated solution
in strategic negotiations.
16:27
Number one,
assess the relationship.
16:30
Number, to prepare those
negotiations for success.
16:34
Once you've done these two
things you want to make sure
that you sit at the table.
Jointly with the other side
and you identify the problem.
16:43
Together you will
develop options
generate new and creative ideas
and you will evaluate those options
to make sure you take responsibility
for realistic commitments
and legitimate outcomes.
16:57
Once you've done all that,
you're going to assess your
alternatives to make sure
that your agreement is better than
the alternatives of walking away.
17:06
And finally you will
integrate the results
into your local community.
17:10
Now, what we would
like to do is to look
at the five golden
rules of negotiation.
17:16
Number one,
separate the people from the problem.
17:21
The people are not the problem,
the problem is the problem.
17:25
Negotiate with the people
how to solve the problem.
17:29
Number two.
17:30
Any agreement reach has to
improve the relationship.
17:35
It cannot hurt the relationship.
17:37
Nobody will Implement an
agreement when they're in pain.
17:41
Number three,
anything you agree to
has to be the best amongst all the
available ideas and options at the table
because when you go home
people will measure it
against everything
you didn't agree to.
17:59
Number four,
the agreement has to be better
than every other BATNA
sitting at the table,
and number five,
you want to make sure
that the agreement stands
firmly on its own two feet
to by having
legitimate criteria.
18:18
When people go home people will
ask why did you agree to this
and you have to have
some objective way
of measuring your agreement.
18:30
If you don't follow
these five golden rules,
you can escalate the conflict
create a satisfaction
leave unclaimed
value at the table
and you might actually
ruin good relationships.
18:47
In summary,
I hope you have been
able to understand.
18:50
What is the step
by step approach
to finding a win-win solution.
18:56
I hope you will also be
able to assess relationships
when you sit down at
a negotiation table.
19:02
That you are able to distinguish
between your interest
and your positions
and that you understand
what is important
in generating as many
options as possible.
19:14
Now that you know the
five main golden rules
in interest-based negotiations,
you are ready for success.
19:23
And finally,
interest-based negotiation
is one of the most successful
ways of approaching negotiations.
19:29
No doubt about it.
19:31
However, it is not easy.
19:34
It takes time and dedication.
19:36
You need to invest
in a negotiation
in order to get
the maximum output.
19:42
With this step-by-step approach,
you will be able to design,
prepare and execute,
a successful negotiation
that meets your interest fully,
where possible,
acceptably, where necessary,
and taller be in
difficult situations.
19:59
I wish you all the best in your
next integrative negotiation.
20:04
Thank you very much.