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Chapter 2 A Versatile Frame of Mind Outline  Approaches to Negotiation • Distributive negotiation • Integrative negotiation  Dangers of Assumptions • Importance of sensemaking • Identifying rules of engagement     Use of Questions Awareness of the Environment Importance of Language Identifying “Moves” of Interaction Negotiation Continuum Versatile Distributive Negotiation s Desire to WIN Negotiation s Integrative Negotiation s Achieve Mutual Gain Which approach is best?  Those using cooperative strategies achieve high mutual gain  Those relying on competitive strategies achieve less  Thus, negotiators should focus mainly on establishing cooperation Which approach is best?  Negotiators who believe they have influence, assume a position of strength and hold firm on issues of importance  Those who believe they have little influence are more likely to make greater concessions  Thus, a cooperative, win-win approach is generally useful but a negotiator must also identify how much they are willing to concede in order to achieve the winwin The Versatile Negotiator  Adopt a flexible negotiating approach – moving toward an integrative or distributive stance when necessary  Prioritizes goals in order to protect the most important points but make appropriate concessions  Not committed to a win-win or win-lose  Win-win is preferable but sometimes will engage in a win-lose in order to achieve goals  Does not measure their progress in comparison to some endpoint but stay focused in their next move and how it will affect each subsequent move Avoid Assumptions  Be careful in making faulty assumptions • Myth of commonality • We assume people are like us • Myth of disparity • We assume others are different from us  Skilled negotiator is a detective – skeptical of easy generalizations & alert to limitations of assumptions Sensemaking  Balance between observation and action  Staying in touch with context  Sensemakers “act their way into an understanding of where they are, who they are and what they are doing.” Rules of Engagement  Knowledge of one’s expectations guiding choices  Negotiations make sense when the dialogue is bounded by what is expected  Failure to meet expectations may lead to perceptions of irrelevance or offensiveness Identifying Expectations  Use of Questions • Critical in identifying assumptions & expectations • Assist in ensuring understanding – possible discrepancy between what was said and what was heard • Useful in testing the progression of negotiations • Involves the other party more in the discussion SPIN Questioning Adapted from SPIN Selling by Neil Rackham How have you been affected by their inability to meet your emergency inventory levels? What supplier are you currently using? NEED If we guaranteed next day delivery on specific products, would you be interested in learning more about our capabilities? IMPLICATION PROBLEM SITUATION How satisfied have you been with your supplier’s ability to meet your needs for “emergency shipments? Negotiation as a Learning Process  Importance of a learning perspective  Enables negotiator to understand the other party Versatility in Actions  Repertoire of verbal and nonverbal responses  Communication in negotiations like a game of chess • More skillful players influence the other player to make a desired move • Amateurs are easily led and react to the moves of others – leading to greater chances for concessions  Knowledge of scripts Direction of Interaction  One-up moves • When both use one-up statements, the interaction is competitive  One-down moves • When both use one-down statements, very little progression is achieved  Sidestep moves or one-across moves • Useful in negotiations because they buy you time and give you a chance to think about how to proceed (e.g. silence, I see) Summary  Best negotiators less concerned with who’s right  But…concerned about who thinks what and why  They mold perception and are masters of discernment  Do not use firm statements of positions but questions designed to understand assumptions