Documente Academic
Documente Profesional
Documente Cultură
OPTEON
Philip Mendes Level 3, 33 Queen St
Brisbane QLD, Australia
Ph + 61 7 3211 9033
Fax + 61 7 3211 9025
philip@opteon.com.au
Negotiation: A Counter-Intuitive
Process
Something of a provocative title
Title comes from remarks made by participants at some of my
negotiation workshops
“that’s the opposite of what I do”
“I know I should do that, but I find myself doing exactly the
opposite”
“Its counter-intuitive”
What are
some of the intuitive things we do in a negotiation
the counter-intuitive thing we might consider as an alternative ?
Main theme:
Focus on interests instead of
positions
Position is a proposal
Likely to be rejected
Interest is the why of the proposal
– what is sought to be achieved
There may be multiple ways
of achieving that interest
This perspective in a negotiation
is counter-intuitive
Focus on interests instead of positions
Natural therefore for the parties in their negotiation to state and restate
positions
Challenge is to look beyond the position, recognise the interest, and explore
how it can be addressed
Focus on interests instead of positions
Pathway 1
Pathway 2
Interest Pathway 3
Pathway 4
Pathway n
Focus on interests instead of positions
A position Solution
identifies
only one
pathway
forward
Acceptable to one party Pathway 1
An interest
usually
identifies Pathway 2
several
pathways
forward Pathway 3
Pathway in Pathway 4
common is
the Acceptable to other party Pathway n
solution
Focus on interests instead of positions
“We’re open to
“What’s doing this in any “Can you think of any
important to number of ways ways, without downside
us is…(your that achieves… for you, in which we can
interest – …(your interest … (your interest – not
not your – not your your position)”
position)” position)”
Focus on interests instead of positions
Our proposals
To us are self evidently fair and reasonable
We make the proposal, and sit back and expect the “I agree”
response
We are then taken aback when the “I agree” response doesn’t come
“How can they
We expect proposals to be made in a negotiation possibly disagree
with this ?”
Making proposals is what a negotiation is all about
Diving into a negotiation
First step
start haggling
royalty terms, milestone payments, upfront payments
or a price of products
But may that be premature ?
Do both parties share a common understanding / expectation
Establish rapport
Rapport facilitates communication
When people know each other they can more quickly
Communicate information
Identify options for solutions
Converge on a solution or an outcome
Establish rapport
Liking
People like those who like them
If we are liked by someone, they will
listen to us
register what we say
want to explore ways to help us achieve our needs and interests
be receptive to accommodating our needs and interests
Antipathy – the opposite of liking
Results in the opposite behaviour
Other person will not
listen to us
register what we say
want to explore ways to help us achieve our needs and interests
be receptive to accommodating our needs and interests
Diving into a negotiation
Results: Results:
In rapport group: In non-rapport group:
Majority felt that they could Majority felt that they could not
trust the other person trust the other person
Majority felt satisfied with their Majority felt dissatisfied with their
deal deal
Majority felt that they had done Majority felt that they had done a
a good deal bad deal
Majority would do another deal Majority would not do another
with that person
deal with that person
A small number felt “ripped off”
A large number felt “ripped off”
The group which did not have that rapport opportunity were 4 times more
likely to have their negotiation fail
Diving into a negotiation
Find out
more about the other party
their interests and needs
the extent to which they know or appreciate our interests and needs
The more we know about how to help the other party, the better equipped we
are to make proposals that achieve our own needs and interests as well as theirs
Diving into a negotiation
“What would be
“How would you
your thinking on
feel about us “How would it this…?’
looking at it from work if we were to
this perspective…” consider…?”
Diving into a negotiation
Case study
Proposed license of a novel more efficient delivery system for a drug already
on the market, and off patent
Second phone call with the interested licensee
First point made by the interested licensee
“What are the royalties and other terms you expect?”
Licensee’s perspective:
that we were a desperate licensor
Commitment on financial terms at such an early stage likely to be when
licensor’s resistance was lowest, and when it was most likely that licensor
would proposed modest package of financial terms, which the licensor
could then negotiate down
Licensor’s perspective
Value of the IP dependent on exactly what the clinical pathway would be
Diving into a negotiation
When a proposal is made to us that doesn’t work for us, we reject it,
and make a counter proposal.
“That won’t work.
I suggest that…”
With information
That we might gather about the other party
That we might choose to share with the other
party about ourselves
we have an increased likelihood our proposals will
hit the bulls eye