Published on April 15, 2014
This ppt shows the essentials characteristics of the Harvard Negotiation Method.
1 ADVANCED NEGOTIATION The Harvard Method 7 Elements of Negotiation
Negociación Avanzada. www.eficax.com 2 Introduction
Negociación Avanzada. www.eficax.com 3 What is TO NEGOTIATE ? “Negotiation is a process of potentially opportunistic interaction by wich two or more parties, with some apparent conflict, seek to do bettel through jointly decided action than they could otherwise” David Lax & Jim Sebenius Harvard Business School "Negotiation is a basic means of getting what you want from others. It is back-and-forth communication designed to reach agreement when you and the other side have some interests that are shared and others that are opposed." Roger Fisher Harvard Business School “Sex apart, negotiation is the most common and problematic involvement of one person with another, and the two activities are not unrelated” J.K Galbraith Harvard Business School “Negotiation is a process in wich interested parties try to reach a mutually satisfactory agreement…” Howard Raiffa Kennedy School of Government Harvard University “Negotiatio is a basic means of getting what you want from others. It is back-and-forth communication designed to reach agreement when you and the other side have some interests that are shared and others that are oppsed…” William Ury Harvard Law School
Negociación Avanzada. Reclamar Valor. www.eficax.com Uncertain (simple) Complicated Complex Chaotic Realities?
Negociación Avanzada. Reclamar Valor. www.eficax.com I have only one objective my target 5 COMPLICATED Problem COMPLEX Problem NEGOTIATION The negotiation round itself can be seen as a complex or complicated problem. Expand my vision of the objectives at stake
Negociación Avanzada. Reclamar Valor. www.eficax.com 6 THE FACT TO NEGOTIATE A B H E D I M C F L A B E C A B
Negociación Avanzada. Reclamar Valor. www.eficax.com Synthesis: Complicated versus Complex COMPLICATED COMPLEX Closed system Open system Space limits / Set times Space limits / Indefinite time Costs / Clear benefits Costs / Hidden benefits 7
Negociación Avanzada. www.eficax.com 8 SPHERE OF INFLUENCE OF THE NEGOTIATOR Sphere of influence Sphere of involvement (results zone)
Negociación Avanzada. www.eficax.com 9 Minimum impact on the results Sphere of influence Sphere of involvement REAGENT NEGOTIATOR
Negociación Avanzada. www.eficax.com 10 PROACTIVE NEGOTIATOR Sphere of influence Sphere of involvement Maximum impact on the results
Negociación Avanzada. www.eficax.com 11 Vision of the problem and the sphere of influenceSPHERE OF INVOLVEMENT Simple reading Complex reading SPHERE OF INVOLVEMENT VISION
Negociación Avanzada. www.eficax.com 12 Negotiation style? •Is one whose target is victory at any cost. Doesn't mind the claims of the other party or the future consequences of their actions. Braves negotiations from the perspective of short term. Tough Negotiator •Belive that with a good relationship it is possible negotiations in wich everyone benefits. Bases its negotiating strategy in using a friendly communication as the main weapon. Soft or relational Negotiator •Faces the negotiation from a objective postulates, knows how to adapt his natural tendency depending on the particular characteristics of the negotiation. It focuses on the interests separating people from the problem. Principled Negotiator
Negociación Avanzada. www.eficax.com 13 Characteristics of a Good Negotiator Be Impersonal Think Fast and Clear Easily and good expressed Capacity Analysis and Synthesis Be PatientFocussed on objectives Great Empathy Have Good Humor Know how to control himself
Negociación Avanzada. www.eficax.com 14 Strategy Types Distributive strategies Cooperative strategies Positional strategies Método Harvard Winning at all costs Win to Win Anchored to the starting points Create value Claim value Manage the Dilemma
Negociación Avanzada. www.eficax.com 15 Negotiation process Phases
Negociación Avanzada. Reclamar Valor. www.eficax.com ContentRelationship Negotiation preparation and bargaining process analysis techniques Communication skills development techniques Negotiation: Two skills in wich we operate
Negociación Avanzada. www.eficax.com 17 The Harvard Program 7 Elements of Negotiation
Negociación Avanzada. Reclamar Valor. www.eficax.com Communication BATNA Relationship Positions Differences Commons InterestsAims Stakeholders Short term Medium term Long term Sections The 7 Elements of Harvard. Rules of legitimacy Commitment
Negociación Avanzada. www.eficax.com 19 1. BATNA. Best Alternative to a Negotiation Agreement BATNA (Best Alternative to a Negotiated Agreement) They are the resources available to each part if no agreement is reached. E.g. “We reserve the right to take legal actions” Aim.- Identify and develop the best alternatives that each part has if ther is no agreement. My BATNA will tell me if I should continue with the negotiation or not.
Negociación Avanzada. www.eficax.com 20 Enumerate possible alternatives WE + - THEY + - 1. 2. 3. 1. 2. 3. Best BATNA WE THEY
Negociación Avanzada. www.eficax.com 21 • Our best BATNA – 1. – 2. – 3. – 4. – 5 • Get worse their BATNA – 1. – 2. – 3. – 4. – 5 ► If my BATNA is BETTER than the expected result than I can obtain with the negotiation, the most appropiate is to break the negotiation and execute my BATNA. ► If the BATNA of the other party is WORSE than the results that may be expected in the negotiation, they will make every effort to reach an agreement .
Negociación Avanzada. www.eficax.com 22 • Interests vs. Positions • Positions: – Starting poit, first motivations – They must be become in interests • Interests: – Real motivations Pragmatic Internal 2. INTERESTS - POSITIONS
Negociación Avanzada. Reclamar Valor. www.eficax.com Negotiation is a conflict of interests Sometimes we sacrify an important interest because we are not willing to give in another with less importance
Negociación Avanzada. www.eficax.com 24 “Interests are the raw material of the negotiation. The game of the negotiation is based on their exchange”. Roger Fisher. Harvard Business School • Different • Common List • For me • For the other part Prioritization • Give in one interest in exchange of another Exchange
Negociación Avanzada. www.eficax.com 25 Focus on INTERESTS forgetting the positions makes easier VALUE CREATION and achieving AGREEMENTS Subtle Interests: reputation, justice, strategy, precedents Worst and best result in each case before I offer as exchange Get away from the points of conflict EMPATHY. Opposite role All interests are not opposed
Negociación Avanzada. www.eficax.com 26 Different interests We They 1. 2. 3. 1. 2. 3. Shared interests We They 1. 2. 3. 1. 2. 3.
Negociación Avanzada. www.eficax.com 27 3. OPTIONS a) Definition ► Points on which agreement might be possible. ► Different ways to satisfy the interests of both parties ► They are the physical translation of the interests b) Premises to generate options ► It is always possible to enlarge the pie ► The pursued values are in the differences ► Separate the process of generating ideas from the making of decisions. ► Adapt the appeared ideas to the chosen strategy.
Negociación Avanzada. www.eficax.com 28 CAMP DAVID AGREEMENTS Egypt interests Possible options Israel interests 1.Maximum interest: SOVEREIGNTY 1. Differences interchangeable: - Egypt desmilitarize the area - Israel transfer the sovereignty. 1. Maximum interest: SECURITY 2. Medium interest: - Obtein Peace - Prestige of the leaders 2. Differences interchangeable: 2. Medium interest: -- Obtein Peace - Prestige of the leaders 3. Minimum interest: Having armed forces in Sinai 3. Differences interchangeable: 3. Minimum interest: Sovereignty in Sinai
Negociación Avanzada. www.eficax.com 29 4. RULES OF LEGITIMACY It is necessary to pursue the LEGITIMACY of the agreement. Each part shall have the FEELING of having achieved their expectations The agreement must be FAIR External and IMPARTIAL models: law, precedents, international treaties, habits. Write the Victory Speech Treaty of Versailles
Negociación Avanzada. www.eficax.com 30 5. RELATIONSHIP The State borns when political organization ceases to be based on personal relationships and based on territorial and institutional relationships. An agreement last in time when it is based on the object and not on the subjects.
Negociación Avanzada. www.eficax.com Elements of a good relationship Reason Converse Convince Confidence Influence Acceptance Emotion Preach Impose Mistrust Pressure Negation
Negociación Avanzada. www.eficax.com 32 • The efficient negotiation requires effective bilateral communication • Define a communication system dominated by both parts. • Consider cultural differences • No hurry. Deliberate and clear messages. • Form and substance. 6. COMMUNICATION
33 METHODOLOGY My suppositions What could understand them New approach 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5.
Negociación Avanzada. www.eficax.com 34 Verbal or written approaches which specify what is going to do or not each part. APPROACH STRUCTURE EXECUTION COMMITMENT 7. COMMITMENT
Negociación Avanzada. www.eficax.com 35 METHODOLOGY 1. Last commitment draft 2. Last commitment A. Previous steps: ¿Authority?, ¿Who and what will do everyone?, ¿Incentives for compliance? B. Documentary and reliable composition of the responsabilities of each part.
Negociación Avanzada. Reclamar Valor. www.eficax.com 36 NEGOTIATION STRATEGY • 1. OBJECTIVES OF THE PARTS – SHORT, MEDIUM AND LONG TERM – VISIBLE AND HIDDEN – STAKEHOLDERS • 2. THE PROCESS. THE SEVEN ELEMENTS • 3. TO MANAGE THE DILEMMA OF THE NEGOTIATOR – THE SECTIONS INTEREST OPTIONS GUIDELINE RELATIONSHIP AND COMMUNICATION BATNACOMMITMENT
Negociación Avanzada. www.eficax.com “The good negotiator is one who knows CREATE VALUE without becoming vulnerable to those who CLAIM and identify the right time TO CLAIM”
Negociación Avanzada. www.eficax.com 38 Executive Education Plan C/ Calendula 93. Miniparc III. Edificio E. El Soto de la Moraleja. 28109- Alcobendas (Madrid). EFICAX www.eficax.com [email protected] Tel. 91 116 58 16 Fax. 91 829 84 39