All technology ventures eventually run into conflicts and disputes. Companies survive and thrive by managing and resolving these disagreements quickly and effectively. Join us and learn practical skills for successful negotiation, conflict management and dispute resolution. And find out how to recognize and respond effectively to different negotiation styles and strategies.

1. 11-12-21 1

2. Negotiation and
Conflict Resolution
MaRS Discovery District
Best Practices Series
December 8, 2011
Presentation by
Michael Erdle, Co-Founder
Practical Resolutions Inc.

3. Introduction

4. Introduction
v Negotiation
v Conflict Resolution

5. What is Negotiation?
v Negotiation is:
v a process.
v a structured conversation.
v a means to an end (agreement about something).
v We do it all the time, without really thinking about it.

6. Basis for Negotiation
v Power
v Rights
v Interests

7. Escalation

8. Power
Power Strategies:
• Take action unilaterally.
• Win at all costs
• Attack/Defend
• Threaten
• Coerce
• Withdraw (Take the Ball and Go
Home)
• Physical (or verbal) violence
Characteristics of Power:
• Adversarial
• “Win/Lose” at best
• Usually “Lose/Lose”
• Extremely expensive
• Negative impact on future
relationships

9. Rights
Rights Strategies:
• Contracts (guarantee the
minimum)
• Policies, procedures, rules
• Precedent
• Past practice
• Legal action
• Third-party decisions
(e.g. arbitration)
Characteristics of Rights:
• Adversarial
• “Win/Lose” at best
• Often “Lose/Lose”
• Extremely expensive
• Time-consuming
• Impact on future relationships?

10. Interests
Interests Strategies:
• Identify what’s really important
• Dialogue about needs and wants
• Honest sharing of information
• Maximize results for all parties
• Help everyone explore and
understand their own interests,
and interests of other parties
• Needs an ongoing relationship
Characteristics of Interests:
• “Win/win” process
• Collaborative
• Interdependent
• Builds trust
• Positive impact on future
relationship

11. Costs
Go
Up
Control Goes Up
Litigation
Arbitration
Investigation/Fact Finding
Conciliation
Mediation
Negotiation
Problem Solving
Prevention
All out “War”
Unilateral Action
Threats, Coercion
Power
Rights
Interests
Power, Rights, Interests

12. The “Golden Rule”

13. De-escalation

14. Duty to Negotiate
in Good Faith
v Obligation to respect the legitimate interests of other
party and to deal promptly, honestly, fairly and
reasonably with them.
v Shelanu Inc. v. Print Three Franchising Corp. (Ontario Court of
Appeal)
v Implied in negotiation where there is an imbalance.
v Wallace v. Grain Growers (Supreme Court of Canada)

15. Duty to Negotiate
in Good Faith
Spectrum of contractual duties
Selfish Selfless
Unconscionability ! Good Faith Fiduciary Duty

16. Duty to Negotiate
in Good Faith
v Fiduciary:
v Trustee
v Corporate Director
v Lawyer
v Good Faith:
v Professional Code of Ethics
v Contract
v Employee/Employer

17. Negotiation Steps
v Distributing Value vs. Creating Value
v Opportunistic
v Problem-solving
v Identify Issues
v What does each side want and need?
v Consider Interests
v Common
v Complementary
v Conflicting

18. Effective Negotiation
v Interests vs. Positions
v “Needs” vs. “wants”
v “Separate the People from the Problem.”
v Soft on the person
v Hard on the problem
v Consider other Options

19. Effective Negotiation
v Seek Objective Alternatives
v Determine BATNA and WATNA
v Best Alternative to Negotiated Agreement
v Worst Alternative to Negotiated Agreement
v Look for a “win-win” solution.

20. Effective Negotiation
v Successful relationships are built on communication
and trust.
v Lack of trust leads to “win-lose” or “lose-lose”.
v Negotiation is one way of creating trust – or deciding
whether trust is justified.

21. The Prisoner’s Dilemma
Scenario:
v Adam and Bob arrested near the scene of a robbery.
v Victim, badly injured, says one person hit him but can’t
say who.
v Both are carrying stolen property; no weapon.
v Questioned separately by the police.
v Enough evidence to convict both of theft, but not to
convict either one of assault.
v Each prisoner must choose whether to
confess and implicate the other.

22. The Prisoner’s Dilemma
v Simple problem: confess or don't confess.
v If neither one confesses, both will serve
one year (possession of stolen property).
v If each confesses and implicates the
other, both will go to prison for 10 years.
v If one confesses and the other doesn’t, the
collaborator will go free, and the other
will go to prison for 20 years.

23. Prisoner’s
Dilemma
Adam
confess silent
Bob
confess 10 10 0 20
silent 20 0 1 1
The Prisoner’s Dilemma

24. The Prisoner’s Dilemma
v Lack of trust is fatal – neither can trust the other to
remain silent.
v So the only rational action is to confess.
v That produces the best result no matter what the other
person does.
v Other is silent – you go free
v Other confesses – both go to jail.

25. Multiple Negotiations
v Selfish strategy works in a “winner take all” game.
v Life is rarely like that.
v Most negotiations are based on a continuing
relationship.
v What happens if there’s a series of negotiations?

26. Multiple Negotiations
Payoff Matrix Player 2
cooperates
Player 2
retaliates
Player 1
cooperates
3, 3 0, 5
Player 1
retaliates
5, 0 -2, -2

27. Multiple Negotiations
v “Tit-for-Tat” strategy is most successful.
v Four key conditions:
v Nice
v Retaliate
v Forgiving
v Generous

28. Multiple Negotiations
1. The player always cooperates, unless provoked.
2. The player always retaliates, if provoked.
3. The player is quick to forgive –co-operate next time.
4. The game must continue long enough for the
‘retaliation and forgiveness’ pattern to affect
opponent’s behaviour.

29. Power Ploys
v Classic “Hard Bargaining” Ploys
v Extreme claims, small concessions
v “Take or leave it.”
v Unreciprocated offers
v Threats and warnings
v Attacking the alternatives
v Good cop, bad cop

30. Ways to Respond
v Extreme claims, small concessions
v Tit for Tat – make equally small concessions.
v “Take or leave it.”
v Make a counter offer.
v Offer an alternative.
v Don’t be afraid to walk away.

31. Ways to Respond
v Unreciprocated offers
v Don’t negotiate against yourself.
v Wait for a serious counter offer.
v Threats and warnings
v Don’t make a counter-treat.
v Challenge the underlying assumptions .

32. Ways to Respond
v Attacking the alternatives
v Ask for an explanation.
v “Why do you have a problem with…?”
v Good cop, bad cop
v Negotiate with the boss.
v Use the “good cop” to your advantage.

33. Understanding Interests
Common Interests
v Parties want the same things.
v E.g. company and workers both want to avoid strikes
and workplace grievances (costs them both money).

34. Understanding Interests
Complementary Interests
v Parties want different things, but they don’t conflict.
v E.g. company wants to increase productivity & profits;
workers want better pensions.

35. Understanding Interests
Conflicting Interests
v Parties want different and incompatible things.
v E.g. company wants to reduce labour costs; workers
want to be paid more.

36. Triangle of Satisfied Interests
EMOTION
(Psychological)
Three Types of Interests:!
!
Results (Substantive Interests): This is
the “what”. Getting to a deal is the
result or substantive interest.!
!
Process (Procedural Interests): This is
the “how”. The process -- how long it
takes, how fair it is – are process, or
procedural interests.!
!
Emotion (Psychological Interests):
This is the “why”. Wanting to “win”,
to save face, gain respect, are
psychological interests.!
!
Note: Triangle adapted with
permission from CDR
Associates, Boulder, Colorado
Understanding Interests

37. Negotiation Styles
v Assertiveness vs. Empathy
v Three common negotiation styles
v Competitive
v Accommodating
v Avoidance
v Effective negotiator is assertive and empathetic.

38. Negotiation Skills
v Communication is the key to effective negotiation.
v What you say is often less important than how you say
it.
v Tone
v Body language

39. Negotiation Skills
v Understanding and recognition do not mean
compromise and concession.
v “I understand” vs. “I agree”.
v Your own emotions and subconscious brain can hinder
your ability to negotiate effectively.

40. Negotiation Skills
v Listening
v Develop “active listening”.
v Understanding
v Acknowledge the other person’s perspective.
v Flexibility
v Be open to other options.
v Pragmatism
v Accept the best available option.

41. Conflict Management
Mediation
v Mediation is a form of facilitated negotiation.
v The Mediator guides the process and helps the
parties negotiate more effectively.
v The Mediator does not decide who is right or
wrong.

42. Mediation
v Interest-based Mediation
v Mediator is a facilitator.
v Focus on interests, not legal rights or obligations.
v Options for creative solutions.
v Evaluative Mediation
v Neutral evaluation.
v Based on legal rights & obligations.

43. Mediation
v Qualities of an effective mediator:
v Subject area knowledge
v Negotiation & mediation process skills
v Lets parties make key decisions
v Creative approach to the problem
v Patience

44. Resources
v Cohen: You Can Negotiate Anything, Bantam, 1980
v Fischer, Ury and Patton: Getting to Yes, Penguin, 1991
v Ury: Getting Past No, Bantam, 1993
v Mnookin, Peppet and Tulumello: Beyond Winning, Harvard
University Press, 2000
v ADR Institute of Ontario (ADRIO)
http://www.adrontario.ca/

45. Questions?