the art and science of negotiation

THE ART AND SCIENCE
OF NEGOTIATION
Julie Payne-Kirchmeier, PhD, CASP
AVP for Student Auxiliary Services
Northwestern University
NACAS West – June 2, 2014
My Background
NEGOTIATION
Scary, Win/Lose, Fight, Tense, Uncomfortable,
Political, Conflict, Manipulative, Frustrating
NEGOTIATION
A process by which two parties communicate
with each other in order to reach an outcome
on which they mutually agree.
MY LENS
Respect for Negotiating Partners
Ethical Approach
Mutually-Beneficial Outcomes
WE NEGOTIATE
EVERY DAY!
We negotiate work, fun, time, with family and
friends.
DISCOVER YOUR
STYLE
SELF-ASSESSMENT
• Review the definition of negotiation
• Read through the instructions and take the assessment
• Score the assessment with the instructions provided (yes,
there is math)
• Stop on page 5 (filling in the last chart with total scores)
Who Scored Moderate to High or High In:
• Competing
• Avoiding
• Collaborating
• Accommodating
• Compromising
TWO APPROACHES
• Distributive
• Negotiation as a win-lose exercise
• Gains of one come at expense of the other
• Sole focus: maximize your own outcomes
• Assertiveness
• Integrative
• Negotiation as mutual problem-solving exercise
• Relies on open communication, trust, mutual respect
• Sole focus: fulfilling mutual interest of both parties
• Cooperativeness
HOW TO IMPROVE?
• Observation
• Informational Interviews
• Mentor
• Workshop
• Institutes
• Class
• Practice
• Practice
• Oh yeah, and did I say
practice?
PREPARING FOR
NEGOTIATION
FOUR THINGS
PreWork
Prep
Work
Plan
Practice
PRE-WORK
PRE-WORK
• Know the Business
Partners
• As people, not products
• Campus Needs
• Campus Policies and
Practices
• Your Style
PREP WORK
“Luck is preparation meeting opportunity.”
- Oprah Winfrey
HOMEWORK
• Your Needs
• Vendor Needs
• Data! Data! Data!
• Key Points –
• Negotiables
• Non-negotiables
• Alternatives
PLAN
“Failing to plan, is planning to fail.” –
Benjamin Franklin
• Review Approach
• Revisit Problems
• Environment
• Appearance
• Body
Language/Know your
Tells
ENVIRONMENT
APPEARANCE
BODY LANGUAGE/TELLS
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Mirror Actions
Nod Your Head
Controlled Hands
Plant Your Feet
Relax Your Body
Smile!
Open Posture
Hide Nerves
Poker Face
Show Patience
Eye Contact
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Connected
Positive Affirmation
Indication of Nerves
Grounded
Comfortable
Positive Affirmation
Open to Ideas
Confident
In Control
Calm
Respectful; Present
PRACTICE
NEGOTIATION TACTICS
(from Karrass Effective Negotiation)
• The Bogey (“I love the proposal, but only have $XX dollars”)
• The Crunch (“You’ve got to do better than that!”)
• The Nibble (“What tie are you giving me with this suit?”)
• Garbage on the Lawn (Listing all past service issues)
• The Flinch (Showing shock on price and waiting for response)
• Tying a String (Added concession for agreement)
PRACTICE!
• Divide into groups of 3 or 4
• Roles:
• Person 1 – the Vendor
• Person 2 – the Institution/College
• Person 3 (and 4) - Observers
SCENARIO
• You need an adjustment to an existing bookstore contract.
There has been a change, and the bookstore can no
longer gain access to key course packs one of your
largest majors requires. However, the current bookstore
contract grants them exclusivity over all course materials,
including course packs.
PERSON 1
PERSON 1
• You are the bookstore.
• You are in year 8 of a 10 year contract, and have enjoyed
a 20-plus year history with the campus.
• You provide a guarantee annually of $600,000 to the
university as part of the contract.
• Loss of this business may cost you $50,000 in direct
sales, and $10,000 in ancillary sales (notebooks, impulse
buys, spirit wear, etc.).
• You do not have a current solution, but are interested in
solving the issue.
PERSON 2
PERSON 2
• You are the institution.
• You are in year 8 of a 10 year contract, and have a 20
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plus year relationship with the bookstore company.
You know loss of course pack business will hurt the
bottom line to the bookstore, but are not sure how much.
Contract gives bookstore exclusivity – but the section on
course packs is vaguely written and subject to
interpretation.
The school has to have the course packs for the majors –
it’s the only resource available.
You do not have a current solution, but are interested in
solving the issue.
SCENARIO
• The current bookstore business partner can no longer
gain access to key course packs one of your largest
majors requires. However, the current bookstore contract
grants them exclusivity over all course materials, including
course packs.
• Both parties need a change to the existing contract in
order to move forward.
FEEDBACK AND
DEBRIEF
OTHER FACTORS
OTHER FACTORS
• Ethics
• Cultural Impact
• Gender
• External Factors
• Multi-Stakeholder
Dialogue
• Time
• Deadlock Strategies
• Others?
ONE MORE TIME
• Four P’s
• Pre-Work
• Prep-Work
• Plan
• Practice
• Negotiate
• Sign Contract
• Debrief
QUESTIONS AND
DISCUSSION
THANK YOU!
Email: [email protected]
Twitter: @jpkirchmeier
Phone: 847-467-2113