Negotiation and Consensus Building -

Negotiation and Consensus Building -

Dr. Jonathan Raab, Raab Associates (and MIT) Chicago EIPCSSC Meeting July 15, 2010 Negotiation Exercise Agenda 8:00 8:10 Introduction Oil Pricing Exercise preparation play debrief

9:40 Negotiation Theory and Practice 10:00 Adjourn 2 Oil Pricing GameSet Up and Logistics Oil ministries from A and B set their own oil price each month $10, $20, or $30 Profit for each dependent on price selected by both A and B

Game played for 8 rounds (3 minutes per roundif fail to come up w/price--$20) Bids simultaneously revealed Goal is to maximize profits for 3 4 Oil Pricing Game Scoring Matrix 5

Oil Pricing Game Debrief NOTE: Show excel spreadsheet w/bids for both teams for all 8 rounds, plus final score for each team 6 Key Debriefing Questions What was your goal? What was your strategy, and did it change over time?

How did you respond to breach of trust by other team (if it occurred)? How did you deal with disagreement within your own group on which price to bid? What was it like to represent your group in the face-to-face negotiations? What would happen if we now made you play 4 more rounds? What did you learnwhat guidelines would you recommend for facilitating wise and efficient group decision-making? 7 Axelrods Computer Simulations on Prisoners DilemmaWinning Strategy

Be Be Clear Nice Be Provokable Be Forgiving 8 Negotiation and Consensus Seeking: The Conventional Wisdom Negotiation is Win/lose - Zero-sum situation:

Their gain is my loss (tug-of-war) The size of the pie is fixed Negotiation is a Test of Will You get what you want by ensuring others dont get what they want 9 Mutual Gains vs. Conventional Wisdom The Mutual Gains approach assumes you get what you want by making sure that the other sides needs are met -- at the lowest possible cost to

you Pie is not fixed, but can be expanded providing opportunity for everyone to benefit 10 Key Elements of the Mutual Gains Approach

Know your BATNA and assess theirs (Best Alternative to a Negotiated Agreement) Focus on Interests, Not Positions Invent Options for Mutual Gains Insist on Objective Criteria Separate the People from the Problem From Getting to YesFisher and Ury 11

Invent Options for Mutual Ga D A F Gains to Party A As BATNA G E

C Gains to Party B Bs BATNA B Doing the Dance to the Pareto Possibilities Frontier Curve 12 Focus on Interests, Not Positions Interests are needs, concerns, desires -- Whats truly important to you. Analyze your interests and theirs

Communicate Share your interests and concerns clearly Listen and ask probing questions Dont make offers until you explore interests 13 Create Mutual Gains Explore ways to expand the pie before focusing on how to split it Recognize that almost all negotiations have multiple

issues Remember that parties usually value issues differentially allowing for mutually beneficial trades Split the pie by using objective 14 Negotiating Styles A s s e r t

i v e n e s s Avoiding Competing The Effective Negotiator Accommodating Empathy


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