Why Interest-Based Negotiation Will Get You What You Really Want | Dan Shapiro | Big Think
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- Опубликовано: 16 июл 2017
- Why Interest-Based Negotiation Will Get You What You Really Want
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Negotiation is part of life. Whether we're talking about something as grandiose as healthcare or as personal as buying a car, we often spend the vast majority of the negotiation process haggling over the numbers. This is often a bad way to look at it, says Dan Shapiro. And he should know: he's head of the Harvard International Negotiation Project and knows an awful lot about getting two opposing sides to see eye to eye. So what's the best way to do so? Perhaps talking about why each party wants what they want and negotiating from there. When polarized debates come to a head over "use vs them" mentalities, looking at it from this angle-i.e. the nuts and bolts of a position and less so the end result-can humanize each side to the other. Dan Shapiro's latest book is
"Negotiating the Nonnegotiable: How to Resolve Your Most Emotionally Charged Conflicts".
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DAN SHAPIRO:
Daniel Shapiro, Ph.D., is a world-renowned expert on negotiation and conflict resolution. He founded and directs the Harvard International Negotiation Program, which has pioneered innovative strategies and teaching methodologies to address the human dimensions of conflict resolution. Dr. Shapiro also is an associate professor in psychology at Harvard Medical School/McLean Hospital and affiliated faculty at Harvard Law School’s Program on Negotiation, where he serves as the associate director of the Harvard Negotiation Project. For three years, he chaired the World Economic Forum’s Global Agenda Council on Conflict Prevention.
He has launched back-channel negotiations to help revitalize formal peace negotiations in a major Middle East conflict, and regularly conducts negotiation trainings for government leaders around the world-including Middle East negotiators, Chinese officials, Serbian members of parliament, and senior U.S. officials. Through nonprofit funding, he developed a conflict management program that now reaches one million youth across more than thirty countries.
He has appeared on dozens of radio and television shows and has contributed to The New York Times, O, The Oprah Magazine, and other popular publications. Dr. Shapiro is the recipient of numerous awards, including the American Psychological Association’s Early Career Award and the Cloke-Millen Peacemaker of the Year Award. The World Economic Forum named him a “Young Global Leader.” In his spare time, he plays blues guitar and enjoys playing baseball with his three sports-loving sons.
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TRANSCRIPT:
Dan Shapiro: So the classic approach to negotiation is positional bargaining. In positional bargaining I have a position, you have a position, and we each haggle over those positions.
Now the rules to positional bargaining are very clear: You start with an extreme demand but not so extreme that the other side thinks that you’re crazy or bluffing. You can concede stubbornly, and you demonstrate a greater willingness in the other side to walk away from the negotiation table.
So you go to the car dealer. You want to buy a Corvette. The car salesperson says, “$80,000 take it or leave it.”
You say “80? I’ll tell you what: 40, take it or leave it.”
And you start arguing and haggling, crossing your arms. Threatening to leave. An hour later the car salesperson brings that number down to 70. You’ve gone up to 50. You each then demonstrate a greater willingness to walk away from the negotiation table. You say, “You know what? There’s actually another Corvette dealer down the street. Maybe I’ll just go there.”
And the car dealer says, “Well, you know what. You see all these people standing in line here. They all want to buy this Corvette.” You each threaten to walk. But if you don’t walk you might end up typically somewhere in the middle of those two other numbers: 40, 80, you might end up around 60.
However, this probably isn’t the best agreement that you could have come to. All this is doing is arguing over one single factor: a number. And that’s the problem of positional bargaining, is that I might have a lot of other interests at stake but none of them are getting shared within this very strict form of positional bargaining.
There’s another form of negotiation that at the Harvard Negotiation Project some of my colleagues have developed, we call it “Interest Based” negotiation. The idea here is let’s not argue over positions, let’s argue over underlying interests....
For the full transcript, check out bigthink.com/videos/dan-shapi...
Buying a car is probably not the best example here, because there is little other interest on the sellers side than to move cars and make money. There are a lot of examples of interest-based negotiation in business though (almost anytime you hear "win-win"). I'm taking this as more of a reminder that it's not all about price. "Make the pie bigger" was one thing I heard that has always stuck.
I'm shocked that out of the top comments, no one bothered to mention that cars for the next year come onto the lot in summer, not January.
Interest-based (integrative) negotiations works well when the importance of the relationship is high. For a one-off negotiation (eg buying a car) most will take the positional approach becasue the relationship is not important. (Not to say you shouldn't try and understand the interests of the other side in ANY situation). Negotiating with your spouse over where to go on holidays, for example, requires a more interest-based approach than selling your car on Craigslist...
Makes sense.
For complex multidimensional issues I can see this being useful. Just leveraging timing and location for a better output is basic negotiation tactics.
Yeah, but how do you get to know about the real underlying interest of the other party?
Corvettes don't have backseats, there was a problem before negotiations started. haha
Small car lots(~8-10cars) KNOW their cars. The options(used) which you gain from the bargain price itself.
They are never referred to as "sharks", and normally send you on your way with a detailed wash, a mechanical restoration, and honest financing options.
December 31st isn't when car models change. Yes, the calendar year does, but not the car model years.
There needs to be at least one full example of interest based negotiation in action described in this video.
I liked the concept but explanation was lacking, please elaborate further
Focus on needs. What does both party need? This is actually old psychology. Read a book called "50 Psychology Classics" and one of the stories was about negotiation based on the actual needs of the two parties.
Please tell me you guys are digging deeper than this at Harvard
IOW, if you buy an icecream based only on price you may end up not even likeing it, if you ask for the flavor it might be more expensive. Depends on your priorities whats important for you, I used to sell so I ask generally, if the person does not want to answer, then it's on them. No refunds. Works great!
The problem after is what to do when complaints are made bc bottom line always seem that the customer is always right no matter what, has cost me every job I have had in the past, bc a customer can just walk away and get away with it every time and never fear of any regret of my dismissal, so I think that grey area is the one they should tackle. Looking for job at the moment.
if I say I want a car for my 3 kids, safety and because I like the look of the car, then there is no reason for the dealer to care. Atleast in positional negotiation, the dealer knows what kind of money he will be making based on the price I am agreeing to pay. I don't really understand how talking about your interests is going to make the deal more beneficial for me.
Maybe he could redirect you to a better suited model with all the desired characteristics for a lower price...
Too simple and logical you need more magic and conspiracy. People don't like logic.
On the other hand:
You are a cat, you want to enslave all of mankind. No wonder you try to troll the comment section.
See? Conspiracy! that's appealing!
If you can find out more information about the other side's interests, you can draw the topic of conversation toward why a deal as such is good for them in terms unrelated to your own interests.
If you can frame the discussion in a way that veers away from your primary concerns toward theirs, you can gain leverage over the other side and get what you want without ever explicitly stating it.
But blurting out your own interests may be... really stupid.
It's quite straightforward, if you are honest, you speak honestly, if you are not... then you hide your goals !
I think everybody's knows what the dealers want 1. make money 2. (maybe) make the client happy to earn a loyal customer
What the client wants, only the client knows, so he has no reason to hide it ! of course he needs to be smart enough to check what the dealer is saying and selling.
But of course, smart and honest people are a tiny minority...
I suppose that may work in a car negotiation where price is the primary object of concern. However, while it may be good to say some of the things you want, blurting out your goals in, say, a hostage negotiation is not a productive way to begin a conversation.
If you get on the phone with someone who has your mom hostage and just start saying, "Listen, I just want my mom back, please!" That is not a great way to start the negotiation. You might say that is honest, but I would not say it is smart.
Therefore, a realistic assessment of the character and motives of your negotiation partner is required before you decide what information to share and when. That assessment requires you to get info about them before they get it about you.
So if you begin by saying "My mom means so much to me, her safety is beyond any price," then by mentioning that, you are steering the conversation away from info gathering like "how do I even know she is safe?" to "how much are you demanding?" That's a bad move.
By oversharing your own goals without gathering info about your interlocutor, you place more cards in their hands and deprive yourself the knowledge to make informed and thoughtful offers. You will probs end up with an empty bank account and your mom dead in a ditch somewhere.
That said, where you share goals with a political opponent on a particular issue, say, then beginning from common ground and being honest about the principles you share/do not share is a great place to start. Then perhaps simply being "smart and honest" might be a decent heuristic.
3 kids in a Corvette?
And how do you negotiate to not have to negotiate as most negotiations lead nowhere and change nothing structurally?
That's what I want.
a bit disappointed to be honest.
When you tell someone why, their motivation, normally they are then fucked, as the other part may not have heared about this type of negotiation or if so may not like it.
Interest Based to me is my motivation, telling this soemone is handing over my balls or did i miss something. This soudns good in theory, but i doubt it is usable in every negotiation, even less so i would suspect in diplomacy. Then again i don't know shit, so who could convince me otherwise?
I don't think I learned anything useful here...
sounds good, doesn't work😂
this is stupid. I've been negotiating for almost 20 years now and I can tell you from my experience that this will get you a worse deal. Remember concessions? How can you make smart concessions if the other party knows what's important to you and what not. Also most of the time at least one of the parties involved has a nefarious underlying interest. Most companies what to squeeze you for all they can, not make a good deal for you.
Yeah, it's only valid for those who want a win-win deal. If you have a party that doesn't really care, they are not likely to share their interests any more than you yours. It's the proverbial "what's your budget" question in which a direct answer is unlikely.
sebastep he states immediately that he is talking specifically about positional bargaining.
+ Furion
So you wanna you for your own healtcare by your self.
Let´s say you get cancer and need medication for about 150k a year.
Are you still sure you wanna pay it by your self?
If not I have a new deal for you:
You pay the healthcare for the others :p
mcgeufer so glad i live in england
sebastep If you had any idea what you're talking about then why aren't you featured in one of these videos?