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Lessons from Gary Kildall Case

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Negotiation opportunities are not always obvious -Having an understanding of negotiation allows you to use it as a lens to evaluate complex social reality Negotiation is not just hard bargaining tactics, but it is managing people and relationships -Evaluate the tie between individuals Even non-professional negotiators can learn to take advantage of the negotiation lens!

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Why take a negotiation class?

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Employment Productivity Leadership Knowledge creation

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Top 10 myths about negotiation

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1. Good negotiators are born, not made 2. Experience is the best teacher 3. There is one right way to negotiate 4. In every negotiation there is a winner and a loser 5. Good negotiators are tough 6. Men are better negotiators 7. It's better to negotiate with people you know well 8. Negotiation is about the bottom line 9. You will know when you've had a successful negotiation 10. Always go with your gut

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What is a negotiation?

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Interactive communication process that happens whenever we want something from someone else or another person wants something from us

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Negotiation Analysis

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A lens through which the complex social world can be better understood

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How to avoid anchoring on the first offer

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Ask them how they arrived at that figure Request a more reasonable offer Make a counter offer

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Takeaway from Biopharm-Seltek Negotiation

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Satisfaction is not a reliable indicator of performance

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Distributive Negotiation

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Trade-off of value -Goals of both parties are in direct opposition -Resources are fixed and limited -A gain by one party is a commensurate loss by the other party

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Integrative Negotiation

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Synergies of value -Goals may be in alignment with each other -Growing the pie as much as possible -A gain by one party may also be a gain by the other; same with loss

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Reservation Point

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Bottom line - the point at which you walk away

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Target Point

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Goal - the outcome you realistically want to make happen

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Aspiration Point

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Dream - the best you could hope for (and justify)

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Zone of Possible Agreement

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Overlap between reservation points Impasse is sub-optimal when positive zone Reach agreement is a mistake for somebody when negative zone In reality, its extent is hard to determine a priori

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Key issues in developing the three key figures

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How can you calculate your reservation point? -BATNA How can you set a target point or an aspiration point without knowing the other party's reservation point? -Preparation + Information

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BATNA

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Best Alternative To a Negotiated Agreement The most advantageous course of action a party can take if negotiations fail and an agreement cannot be reached

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From BATNA to Reservation Point

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BATNA is a possible behavior - your next best option Reservation Point is a number - the highest (lowest) dollar amount that you must get to make the deal worthwhile for you Turning a possible behavior into a number is tricky

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Four Steps of Distributive Negotiation

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1. Preparation 2. Information Exchange 3. Explicit Bargaining 4. Negotiated Agreement

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Explicit Bargaining

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Resources -Leverage: use your situational advantage -Types of leverage: positive, negative, normative Strategies -Influence your counterpart's perceptions to claim value Tactics -Concession patterns and tough techniques to implement your strategy

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Positive Leverage

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You have something the counterpart wants

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Negative Leverage

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You can take away something counterpart values

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BATNA =/= Leverage

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BATNA = your alternatives if you don't reach an agreement Leverage: Which side, at any given moment, has the most to lose if they don't reach an agreement? But remember what really matters is the other party's perception of your leverage. You have the leverage the other party thinks you have

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Power =/= Leverage

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Power = control over resources Leverage: Capacity to cause serious damage to, or inflict a huge cost on, the other party -You can have little or no power in terms of resources yet negative leverage (example: "I thought we were here to negotiate" clip)

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Normative Leverage

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Frame negotiation based on standards of conducts and norms -Negotiate off the Kelly Blue Book Value -Will not discuss price until all other aspects have been discussed (Many of these are cultural - national, organizational, etc.) Provides authority, consistency, shared meaning -e.g., Beware of "consistency traps" Justice Norms: equity, equality, need

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Strategies to Claim Value

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Influence perception of ZOPA Influence counterpart's perceived alternatives Get counterpart to move closer to reservation point Get counterpart to feel this is the best settlement -ego satisfaction and feelings matter; they don't know your RP; subjective value

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Tactics: Influence Perception of ZOPA

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Anchor with an extreme offer (lowball), use shrinking concessions

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Tactics: Influence counterpart's perceived alternatives and RP

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This house is very overpriced" Offer reason, be persuasive; ask for a rationale and point out flaws

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Tactics: Get counterpart to move closer to RP

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Reduce their perceived leverage (convince them you have great alternatives, are in no hurry, etc.) Make them think you are in a strong leverage position (their alternatives are much worse if no deal) *Hardball tactics (Lewicki reading)

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Tactics: Get counterpart to feel this is the best settlement

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Make them feel that they've received a great deal (bogey) Congratulate them on the deal

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Responding to Hardball Tactics

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Ignore them Discuss them Respond in kind *Co-opt the other party

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Sealing the Deal

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Provide two final offers; let them pick Assume the close, get out the paperwork Split the difference, simple and effective Exploding offers, deals that expire quickly Sweeteners: "If we close, I'll throw in..."

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Summary: Distributive Negotiations

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Preparation is mandatory! Info = Power Identify BATNA, RP, TP, ; AP Shape counterpart's perception of ZOPA, BATNAs, and leverage positions Invoke standards and norms strategically Make your counterpart believe they got the best deal possible

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Signs of Integrative Potential

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Does the negotiation have multiple issues? Can you unbundle one issue into multiple issues? Can other issues be brought in? Can side deals be made? Do parties have different preferences across issues?

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The Negotiator's Dilemma

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How do you create value and claim value at the same time? Have to identify which issues can help you create value (integrative) and which can help you claim value (distributive) Value creation is determined by whether or not the negotiation is efficient

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Pareto Efficiency

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Achieved when no one party can do better without the other party doing commensurately worse The pie is as big as possible

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Nash's Bargaining Solution

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Max (U(partyA) - U(partyA's BATNA)) X (U(partyB) - U(partyB's BATNA)) The fairest solution is one that maximizes the product of the differences between the utility of the agreement and the utility of non agreement for party A and for party B

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Chance of reaching efficiency

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<25% of executives reach efficient agreements Half of those reach efficiency by chance

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Fixed Pie Bias

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Assumption that counterpart's payoffs are same as yours "Win/Lose" bias End up leaving value on the table

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Key Takeaways from New Recruit Negotiation

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Identify Issues and where both parties stand Negotiate on the issues that will allow you to grow the pie Claim your part of the pie Negotiate with integrity for a good implementation

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How can you identify and take advantage of integrative opportunities in a negotiation?

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Resources Strategies Tactics

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Resources

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Perspective Taking -asking questions -doing your resources Trust -sharing information -act honestly -find commonalities Differences -do you value the same things?

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Strategies

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Separate the person from the problem -don't let emotions drive the discussions Focus on interests, not positions -interests: fears, concerns, unmet needs Invent options for mutual gain -get creative and don't dismiss new ideas too quickly Use objective criteria to evaluate options -legal requirements, norms, market prices, professional standards

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Tactics

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Avoid focusing on one issue at a time -look for relationships between issues to capitalize on different interests *-i.e., Logrolling Make multiple equivalent offers simultaneously Capitalize on different preferences!

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Integrative Bargaining: Resources

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Recognizing the value of differences Perspective taking Trust

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Integrative Bargaining: Strategies

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Focus on interests, look for opportunities in different interests Invent Mutual Gain Separate the person from the problem

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Integrative Bargaining: Tactics

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Make multiple offers simultaneously Share appropriate information Don't let your assumptions get in the way!

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Power

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Asymmetric control over another person's valued resources Power as a property of the relationship; not of the individual -social power Coercive Power vs. Influence Power -negative sanctions vs. positive

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Power vs. Leverage

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Power is a source of leverage but it is a broader concept You can have little power and a lot of leverage in a specific situation/negotiation (and vice versa)

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Key sources of power

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BATNA -Improve your own BATNA -Influence the other party's BATNA Role Power -Role/title/position Relationships -Coalitions Psychological Power -Feeling in control/confident

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Rights

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Standards of legitimacy E.g., reciprocity, precedent, ethics, fairness -Contractually established (most concrete) -Legally established through precedent -Best practices in industry -Socially recognized norms (most abstract) Can be invoked even (especially) by the powerless -Influence by rights =/= Coercion by power

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Interests

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Needs, desires, and concerns underlying the negotiation process Have to ask questions and do research to understand the interests -Humble inquiry Interests provide opportunities for creative agreements

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When to use Rights and Power

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When the other party refuses to come to the table When negotiations have broken down and parties are at an impasse When someone violates a rule or breaks a law

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How to use Rights and Power

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Make sure the threat is credible Be ready to follow through with the threat if necessary to preserve your credibility Combine threats and interests based approaches When making a threat, give a chance to the other party to turn off your threat without losing face

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Cost of using rights/power

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Results in winner/lose, and losers tend to not give up Acting on a threat takes away your power Using power can result in higher resource consumption and/or opportunities lost -escalation of commitment Power contests can injure people/relationships and can lead to the desire for revenge Rights are usually less costly, but can still impose costs

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Breaking the reciprocity cycle

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Stop reciprocating -do not return rights for rights or power for power -instead, redirect towards problem solving No unilateral concessions -essentially is rewarding bad behavior Combining Communication Types -"If you do x, I could do y, but why don't we do z?" Label the process -"We both know how contract disputes work. The's move on..."

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Benefits of using interests when possible

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Results in higher satisfaction with outcomes, better working relationships, and may lower transaction costs

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Key takeaways from Disney's expansion attempt

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Must be able to identify interested parties and anticipate what their positions and tactics might be -Are the public interests aligned with the organization's interests? Despite power advantages, rights-based opposition can be quite potent -Rights-based moves focus from a power struggle to normative expectations Coalitions can neutralize power advantages -they can generate and enhance OR neutralize power One size does not fit all -Just because something worked in one context does not mean it can be applied blindly in another

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Neoclassical Economics

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How individuals act within an economy Based on three assumptions But, neoclassical economics is not representative of how people actually behave

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Three Assumptions of Neoclassical Economics

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People have rational preferences Individuals maximize utility and maximize profits People act on the basis of relevant information

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Bounded Rationality

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Humans are limited biological systems with constraints -Limitations in access to information -Limitations in information processing (calculating) -Limitations in motivation to optimize (satisficing) Systematic cognitive biases emerge: not just noise

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Cognitive Bias

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Systematic decision making error that can occur without the awareness of the decision maker Systematic - we can predict directionality Error - departure from accurate judgement Lack of Awareness - unintended decision making error

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Anchoring and Adjustment

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Easy to get hung up (anchored) on reference points, even when the reference point is totally irrelevant to the problem at hand -Last two digits of your social security number.... -Is the population of Indonesia greater than or less than 50 million? Then they fail to adjust their scaling properly -Making offers/concessions within the constricted zone

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Anchoring in Practice

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Make the first offer or use your aspiration point as a counter-offer (and have convincing arguments ready) Question your counterpart's offers and ask them to explain their rationale for those key figures Plot out the pattern of offers and concessions

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Framing/Loss Aversion

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Choices are impacted by how information is presented Avoid risk when problems framed positively (gains) Seek risk when problems framed negatively (losses) Losses loom larger than gains (by ~2 times)

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Escalation of Commitment

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Escalation: continue commitment to bad choices -Done to justify prior commitment to that behavior -Both self-justification (self-image) and others -There is a cultural bias towards consistency -Don't want to be a "flip flopper" (think politics)

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Escalation of Commitment in Practice

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Get counterpart to spend more time/resources in negotiation: ultimatum at the end is more effective Foot-in-the-door technique: start with a small request, makes a bigger one more likely Recognize your own level of commitment. Stop and ask yourself whether the sunk costs are worth moving forward

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Status quo Bias

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Preference for the current state of affairs Natural inclination to go with the current or previous decision Example: organ donors

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Status Quo Bias in Practice

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Provide the "boilerplate" contract; default option Ask yourself what your options are; don't let the status quo be your only option

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Confirmation Bias

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Seeking only information that confirms what you already believe is true or what you want to be true Irrationally filtering out disconfirming information Leads to overconfidence, which is problematic -impedes information sharing, creative problem -leads to more impasses

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Confirmation Bias in Practice

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Be mindful: identify your assumptions Have humility: your partner may hold unique information Gain Perspective: ask others to play devil's advocate

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Self-Serving Evaluations and Overconfidence Bias

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Tendency to be too optimistic in formulating probability judgements When a person's subjective confidence in his or her judgements is reliably greater than the objective accuracy of those judgements

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Self-Serving Evaluations and Overconfidence Bias in Practice

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Use objective information to overcome biases Use third parties to help establish facts

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Texoil Takeaway

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When there is no ZOPA, try to incorporate other items

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Paris Peace Conference ; Treaty of Versailles

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One of the biggest negotiation failures in history All parties were disappointed Raised resentment in Germany and other countries that didn't obtain desired territories

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Stereotypes

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A simplified and standardized conception or image held in common by members of a group about another group, a situation, or an object ("a picture inside our head") Prone to error due to the fact that our experience and knowledge is limited Shapes information to be confirmatory Leads to overconfidence, assumptions, and blind spots

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War Guilt Clause

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Simply seen by the Allies as a necessary legal basis to extract compensation from Germany, Germans viewed this clause as a national humiliation

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Confirmation Bias and the German Reaction to the War Guilt Clause

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When the Germans received the treaty and read article 123, they found what they were looking for and already convinced to find: a conviction and a request to admit guilty - a "violation of honor"

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Stopping of the German train in Verdun

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Done to show them the damages suffered by France, which Clemenceau wanted repaid Aggravated the situation because it was interpreted as an accusation that Germany was the only country responsible for the evil of the war

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Violations of Procedural Justice during the Paris Peace Conference

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Germans had no chance to take part in the talks German headquarters was in the hotel basement - with hidden microphones Germans were left to wait without a reason

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Procedural Justice

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Perceived fairness of the negotiation process

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Distributive Justice

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Perceived fairness of the outcome of that process

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Relationship between Procedural and Distributive Justice

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When people feel that they didn't have a chance to influence the negotiation process, they didn't have a voice in the process, usually they are also dissatisfied with the outcome, and they perceive the outcome as unfair

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How did Emotions affect the Paris negotiations and the implementation of the treaty?

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French Prime Minister's hatred for Germany, desire for revenge, but also ultimately fear Made them incapable of assessing the situation objectively, which led to unreasonable sanctions German delegation's anger at the way they had been treated and at the supposed "war guilt clause" German national sense of humiliation, which would then lead to nationalistic sentiments as well as an acute desire for revenge

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Lessons from the Paris Peace Conference Case: Be Aware of Stereotypes

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Get to know your counterpart - do not rely on stereotypes! Don't assume your conceptions are correct or the only existing Be aware of the stereotypes the other party may have about you and what you can do to alter those perceptions

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Lessons from the Paris Peace Conference Case: Beware of Emotions

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Don't let your anger/emotions dictate your decisions Cool off and reappraise the situation Think long-term: people may not forget and harbor resentment for a long time

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Gender Stereotypes and Negotiation

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The traits ranked as most important for a successful negotiator are all male stereotypes The traits ranked as least important for a successful negotiator are all female stereotypes

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Why do women negotiate less than men?

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Women are more reluctant to negotiate Women are less aggressive/competitive

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Evidence of a Gender Gap

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1% advantage in performance evaluations, accumulated over the length of a career, produces a senior leadership team with 65% men Initial differences in salary negotiations between men and women yield $500K in accumulated wealth over the course of a career

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Why are there gender differences in negotiation in the first place?

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Role violation issues -women who gain more in distributive negotiations are more negatively evaluated -women who initiate a salary conversation with their managers are viewed as less likable than men who do the same Stereotype threat -women perform worse on math tests when they are subtly primed with a negative stereotype about women's math performance Stereotype Reactance -on the contrary, women outperform men when they are explicitly reminded of a negative stereotype

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Strategies for overcoming stereotypes

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Work to improve your BATNA before the negotiation Carefully craft your language so that it seems like a conversation and not a threat Think about the people outside the negotiation whom you are representing Research what male colleagues in a similar position are making; use it as a target price Know the norms - is negotiating acceptable?

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Nixon's Madman Theory

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"I want the North Vietnamese to believe I've reached the point where I might do anything to stop the war. We'll just slip the word to them that 'for God's sake, you know Nixon is obsessed about Communism. We can't restrain him when he's angry--and he has his hand on the nuclear button' and Ho Chi Minh himself will be in Paris in two days begging for peace."

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Anger and Concessions

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Some disparate findings around whether or not people make concessions in response to an angry counterpart Depends on power dynamics and appropriateness of anger (think tactical usage)

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An angry opponent leads you to

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Develop a negative impression of that opponent Become angry yourself (genuinely) Be unwilling to act with that opponent again Make enemies

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Blowback Effect

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An angry opponent can cause you to become genuinely angry yourself

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Managing your own anger

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Recognize your own feelings -tense body, agitated, higher heart rate Take a Break -do not ruminate on the incident -think about a pleasant situation Avoid negotiator bias (view our intentions as pure and theirs as hostile) -are our motives really that pure? -think of possible explanations for their behavior

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Diffusing your counterpart's anger

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Acknowledge his/her anger Assess whether it's genuine or strategic If genuine, determine the source Either way, never concede to satiate anger! Apologize if your fault Help them to save face Involve a mediator if necessary

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Why is silence an effective tactic to diffuse anger?

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Anger is a costly emotional response - con't go on and on forever - have to stop at a certain point Silence makes them realize that they look ridiculous or that you feel sorry for them It deprives them of arguments to use against you

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Emotions

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An organism's adaptive response to its environment Short-lived and intense reaction to a stimulus

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Emotional Appraisal Process

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Stimulus (externally visible) Emotional Registration (internally experienced) Emotional Experience (internally experienced) Expressive Cues (externally visible)

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Stimulus

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Something that exists in the external environment

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Emotional Registration

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Stimulus captures your attention Registration can run from subconscious to explicit

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Emotional Experience

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How the stimulus makes you feel Two dimensions: Valence (good/bad) and activation (high/low energy)

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Expressive Cues

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How you express the way you feel Both verbal and non-verbal Expressive Cues become the stimulus for the counterpart

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Empathy

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Being able to interpret the emotions experienced based on expressive cues (using the externally visible to determine the internally experienced)

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Cognitive Empathy

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Ability to understand another person's inner experiences and feelings and a capability to view the outside world from the other person's perspective

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Affective Empathy

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Capacity to enter into or join the experiences of another

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Mismatch of Verbal and Nonverbal Cues

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If a counterpart's body language, tone of voice, and choice of words do not match, they may be either trying to hide their emotions or fake them Ask Questions -"You are telling me you like this outcome, but you seem uneasy. Is something making you uncomfortable?" -"You say you're angry, but you seem somewhat pleased. Are you truly upset about something? Or are you trying to intimidate me?"

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Emotional Intelligence

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Self Awareness - understanding emotion Other Awareness - perceiving emotion Using Emotions - facilitating emotion Regulating Emotion - managing emotions

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How to improve Empathy

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Practice mindfulness

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Importance of Mindfulness in Negotiation

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Mindfulness is helpful for understanding the perspective of others Understanding their motives, cognition, and emotions can enhance your position Slowing thinking down and being more aware will help you avoid falling victim to biases and stereotypes Helps build trust between you and your counterpart

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Humble Inquiry

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The fine art of drawing someone out, of asking questions to which you do not already know the answer, of building a relationship based on curiosity and interest in the other person

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Confrontational Inquiry

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Leading questions Examples: Did that make you angry? Why didn't you say something to the group?

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Diagnostic Inquiry

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Help person see cause and effect Examples: How did you feel about that? What are you going to do next?

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Process-Oriented Inquiry

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Help understand where we are in the process Example: What is happening right her, right now, between us?

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Humble or Pure Inquiry

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You don't know the answer Examples: What's going on here? Can you give me an example?

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Passive Listening

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Listener receives the message without any need to respond Listener does not give any cue nor looks for any cues

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Active Listening

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Reflects the content of your messaging back to the speaker Tests your understanding of what they are saying (verbal content) Shows your sensitivity to how they are saying it (non-verbal cues)

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Blocks to Inquiry/Listening

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"Why" questions Quick reassurance Advising Digging for information Patronizing Preaching Interrupting

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Luna Pen Case: Key takeaways

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Culture shapes tactical choices and their interpretation -fundamental notions of bargaining, what is expected, what is acceptable, etc. is in part determined by culture Culture exists on many levels -country -gender -level in an organization -organizational culture

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Culture

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A pattern of shared basic assumptions learned by a group as its solved problems of external adaptation and internal integration - a product of joint learning A way of thinking, behaving, or working that exists in a particular society

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Culture as an Iceberg

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Behavior and Artifacts of a culture are just the visible tip of the iceberg Values, beliefs, and norms lie much deeper Assumptions come from an even deeper part of the culture iceberg

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Culture as a Double-Edged Sword

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Cultural differences create enormous integrative potential because they parties have differential resources and knowledge of their respective markets At the same time, because there are cultural differences, it may be very difficult to tap that potential

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Individualism vs. Collectivism

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Individualists: -Priority given to the self (i.e., assertive) -Organizations reward individuals -Preference for more formal dispute resolution Collectivists: -Priority given to the group (i.e., cooperative) -Organizations reward groups -Preference for more informal dispute resolution Implications for negotiation: -Identification of the parties involved -Duration of the negotiation process -In-group favoritism

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High/Low Power Distance

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High power distance: -People treated according to social status -Superiors have power in resolving conflicts Low power distance: -People generally are treated equally, regardless of social status -People are empowered to solve conflicts together Implications for negotiation: -Choosing representatives -Negotiation conduct -Finalizing the deal

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High/Low Context Cultures

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Low-context (direct communication): -Information is communicated directly and explicitly -The message holds the meaning High-context (indirect communication): -Information is communicated implicitly, thorough the context and behavioral cues -Meaning may need to be inferred Implications for negotiation: -Difference in information-exchange strategies -Integrative agreements

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Three Dimensions of Culture that Matter for Negotiation

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Individualism vs. Collectivism High power distance vs. Low power distance High-context vs. Low-context

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Lessons from Moms.com Case

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Look to increase value by identifying trade offs Look for side issues that could be added to the deal Search for differences in the parties' perceptions that could be capitalized on by a contingent contract

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Contingent Contracts

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Offering insurance against an external circumstance that makes the deal unprofitable in exchange for a profit sharing agreement -an if/then agreement -utilizes parties' different forecasts or preferences -specifies the actions negotiation parties are to take if a certain circumstance (a contingency) materializes Based on differences in expectations of outcomes

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Why to Use Contingent Contracts

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Betting on biases and thereby circumventing them Leveling the playing field Diagnosing deceit Reducing risk Motivating performance

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Betting on Biases

answer

Overconfidence -Each of two companies is confident that it can sell 50M of the other's product in the first year Contingent Contract -Each side's ownership hinges on first year sales -If both achieve targets or miss by same amount, they each own half of the venture -If one side misses more than the other, it will forfeit its equity

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Leveling the Playing Field

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The problem of asymmetric information: How does a big company know what to pay for a small company? A contingent contract with a baseline payment and a sliding scale of payments based on post-acquisition performance allows the sale to go forward but delays the determination of terms until the information has become symmetrical

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Diagnosing Deceit

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Information asymmetry can lead to deceit Contingent contracts are particularly useful because they allow a negotiator to test the other side's veracity in a nonconfrontational matter

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Reducing Risk

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Contingent contracts are a way to share risk Example: A retailer is making a purchase from a vendor. Demand is uncertain. -If demand is higher than expected, vendor receives a share of profits -If demand is lower than expected, vendor takes back merchandise and reimburses buyer

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Motivating Performance

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Motivating parties to perform above contractual obligation Firm/employee: -salary based on productivity -sales commissions -CEO compensation based on stock performance -Athlete salary based on field performance Firm/client: -Consultancy fee based on the actual success of the project or performance after the intervention; not flat fee

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Potential Risks of Contingency Contracts

answer

Delay conflict without resolving it May signal distrust if not presented and discussed openly Could create perverse incentives

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Additional Requirements for Contingency Contracts

answer

Continuing interaction -ongoing relationships Enforceability -deferred value Transparency -need to observe and measure both sides' performance

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Can we change the SCOPE of the negotiation?

answer

Negotiating about the right issues? -think about both perspectives -Ground yourself in context of neg Negotiating with the right parties? -who else involved? need to bring people in to fix issues? -who else has a stake? -what relationships exist among parties? -who can I bring on my side? who might join the other side?

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Can we change the SEQUENCE of the negotiation?

answer

Approaching the parties in the right order? -whom should I talk to first? -whom should I contact simultaneously? Approaching the parties at the right time? -strengthen BATNA enough beforehand What information to provide to each of the parties? -let them know I have other options without scaring or threatening them

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Three types of Multiparty Negotiations

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Multiparty Negotiations - all parties interact with one another Third party dispute intervention - each party interacts with the mediator/arbitrator Principal-Agent Negotiation - Agents interact with one another on behalf of their respective principals

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Multiparty Negotiation

answer

3+ parties, each representing their own interests, who attempt to resolve perceived differences of interest

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Coalition Game: Key Takeaways

answer

If there was no agenda control; any individual could suggest a move at any point - then the results would have been completely unpredictable Agenda Control does induce some stability and predictability Coalitions help agenda setters to achieve goal People tend to have "coalitional integrity"

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Coalitions

answer

Provide an opportunity to enhance resources and power in negotiation Can provide an opportunity to reduce competition by finding common interests among traditionally competitive parties Bind people together, even in non-rational ways

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Purpose of Coalitions

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Parties join behind a mutual interest Work together for common effectiveness and results

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What Makes Coalitions Work

answer

Single responsible leader who is committed and has time Members have group-interest, not self interest Practical knowledge of relevant environment (i.e. lobbying, finding allies, effective talking points, media/PR)

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What Makes Coalitions Fail

answer

One (larger, more powerful) member dominates Conflicting goals (what to do) and strategies (how to do it) Jealousy between members, minor disagreements Too much time required, formality, etc. (by definition, coalitions are secondary to their organizations)

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Coalition Considerations

answer

Too large - hard to satisfy interests Too small - low power How to divide pie within the coalition? (Think norms!)

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Limitations of the Legal System

answer

Litigation is lengthy and costly Litigation limits the involvement of represented parties Litigation puts a decision in the hands of a judge or jury (remember that we're all prone to cognitive biases! Litigation is often more distributive in nature even though the dispute in question likely has non-legal issues at stake

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Characteristics of Third-Party Intervention

answer

Mediation -Voice: high -Process Control: low -Outcome Control: high -Satisfaction: high Arbitration -Voice: high -Process Control: high -Outcome Control: low -Satisfaction: medium Litigation -Voice: low -Process Control: low -Outcome Control: low -Satisfaction: low

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Arbitration

answer

Most common form of third party dispute intervention The parties retain control over the process, but a third party is given control of the outcome -each party presents position -arbitrator makes decision -can be voluntary or binding -can rule in favor of one party of suggest a split

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Benefits of Arbitration

answer

Always results in settlement Motivates parties to make settlement before arbitration Saves face because disputants can blame the arbitration process -gives voice to participants Keeps disputants out of court system

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Limitations of Arbitration

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Parties relinquish control of outcome Not public (unlike litigation) Not under auspices of legal system Not available for all disputes

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Mediation

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A third party assists disputing parties in resolving conflict through the use of specialized communication and negotiation techniques The parties retain control of the outcome, but a third party guides the process -Each party explains the facts to help a mediator identify and understand the issues -The mediator does not impose or recommend a solution, but works with the parties to achieve a negotiated agreement

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Benefits of Mediation

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Gives disputants voice (unlike court) -Let them vent, then cool off, then get to work Motivate parties to find a solution before litigation Gives disputants control over the outcome, which must be agreed to by both sides -Parties are satisfied and committed to the solution Restore civility and trust into the relationship

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Limitations of Mediation

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Time consuming Non binding When parties refuse to cooperate/emotions are high/parties don't want to be involved in the problem solving process Parties are not able to talk face-to-face No legal counsel present; if issue deserves legal attention this could be a problem

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How might you use mediation at work?

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Mediating disputes between employees Performance issues Harassment Complaints Termination

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ADR Spectrum

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Ranges from Informal/Consensual processes where parties retain control and decide the outcome to Formal/Adjudicative processes where parties cede control and a Neutral decides outcomes Ombudz Negotiation Facilitation Mediation Early Neutral Evaluation Arbitration Litigation

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Arbitration and Mediation Differ in Which Ways?

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Who controls the process and decides the outcome Formality Attorney/Client Centricity Focus (factual/legal issues vs. problem resolution) Split the Baby vs. Creative solutions Contractually obligated vs. Voluntary Binding vs. non-binding

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Purpose of an Ombudz is fourfold

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Facilitate Navigate Illuminate Educate

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Lessons from Bullard Houses

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Agents do not always share the same interests It is necessary to think clearly about how much information you are authorized to reveal Lying and half truths can get you into trouble Bias towards agreements: if your BATNA is better - walk away!

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