Welcome to Negotiation &

Contract Management - NVIT

By: Gayle Bedard

Lax Kw’Alaams
 N.V.I.T.
(Nicola Valley Institute of Technology)
• Negotiation and Contract Management – 3 credit course
• Both negotiations and contract management are examined
in this course through experiential models and practices,
focusing particularly on applications with a First Nations
setting.
• The learning process is based on a combination of lecture
inputs to introduce core concepts, individual and class
exercises organizational skills, and allows students to
monitor their own progress in the course.
• The students will be introduced to the concept of anchoring
their learning with S.M.A.R.T. goal setting.
• This course is targeted for those who are employed and/or
have administrative experience.
 Course Summary
This course deals with negotiation and
bargaining as methods of advancing and
protecting your own interests, and of resolving
disagreements and conflicts. Throughout the
week, students will have the opportunity to
learn terms and concepts, acquire information,
and develop skills, which experienced
negotiators have found to be useful. These
opportunities will be presented in at least five
different ways.
Resources for Course
 Negotiations
Table Talk – What do we understand by the term
“negotiation”?
 Negotiation Means . . .
“Negotiation involves two (or more) parties with
competing or conflicting interests or needs,
working towards an agreement on how they will
co-operate” Dr. Gregory Tillett Resolving Conflict (Sydney: Sydney University
Press, 1991) p. 46.
 Recent Negotiations . . .
Think of some recent negotiations in which you
have been involved. What are they?
 We Negotiate For . . .
• Buying a car, a house or an appliance
• Negotiating salary
• Negotiating different roles & responsibilities at
work
• Arranging a fair division of household chores
• Making divorce settlements and custody
arrangements
• Agreeing with child on video games, etc.
 Why Do We Negotiate In These
Settings?
• Variety of reasons depending on the situation
• There seems to be no alternative (people may
not otherwise be willing to shift)
• To reach an agreement
• To maintain or strengthen the relationship
• To be fair: to take account of both parties’
perspectives, needs and concerns
• To get the best deal possible
 Simulation Activity

• Human Resources Director / Prospective Employee

• Position: Computer Programmer Position
Negotiation Practise . . .
Negotiation / Conflict
Negotiation styles . . .
 Negotiation / Conflict
• Negotiation often involves some degree of
conflict, whether you’re hashing out a potentially
profitable deal or trying to resolve a nasty
dispute.
• By nipping in the bud the impulse to become
agitated, rapport between negotiators works as a
kind of social tranquilizer.
• Rapport determines whether negotiators develop
the trust necessary to understand each other’s
interests and reach a strong agreement.
How the Body Responds to
Stress / Conflict
The Brain’s response . . .
Neuroscience and the Brain
The Brain
Trauma / Stress & Brain Development
• The brain develops from brainstem to the cortex.
• Infancy and childhood extremely important in brain
development – use it or lose it.
• By shaping the developing brain, experiences of childhood
define the adult.
• Simply stated, children reflect the world in which they are
raised. If that world is characterized by threat, chaos,
unpredictability, fear and trauma, the brain will reflect that
by altering the development.

• With the history of Aboriginal peoples of Canada – how

effective are we at negotiations?
When stressed…
• The Amygdala acts as the
brains “security guard”,
protecting us from threats.

• This blocks the ability to use

the highest, reflective brain to
determine behavior and
decision making.

• The behavioral responses are

limited to
• fight/flight/freeze (acting out
or zoning out).
Judy Willis, MD,M.Ed
(www.RADteach.com)
 What is conflict?
How would you describe it?
 4 Classifications
• Intrapersonal conflict - a conflict that occurs solely in
the psychological dynamics of the person's own mind.
• Interpersonal conflict refers to a conflict between two
individuals.
• Intragroup conflict is a type of conflict that happens
among individuals within a team. The incompatibilities
and misunderstandings among these individuals lead
to an intragroup conflict.
• Intergroup conflict takes place when a
misunderstanding arises among different teams within
an organization.
 How do people deal with conflict?
(individual / group / community)

How do you or people around you deal with conflict?

How do you respond to conflict . . .?

Describe a conflict situation and end result . . .

Describe a successful conflict situation - end result . . .
 Reflection . . .
• How often do I face conflict?
• When conflict occurs, do I prefer to avoid dealing with it or
give in to others?
• Do I come off too aggressively at times?
• Do I take time to listen to other people’s thoughts on an
issue?
• When conflict emerges, am I aware of my feelings and
those of others?
• Do I rush to solve problems before I’m sure of what the
issues are?
• Do I collaborate with others to come up with solutions, or
do I make most of the decisions on my own?
Discovering your conflict styles . . .
in relationships
Complete the Thomas Killman Instrument
Questionnaire
What is your style?
Advantages / Disadvantages
Score your conflict assessment . . .
Take the hot buttons assessment . . .
Negotiation styles . . .
When do you negotiate?
 The problem with negotiation . . .
Don’t bargain over positions

Positional bargaining:

Each side takes a position, argues for it and it alone

Regardless of any underlying issues.

Share an experience of . . .
 Positional bargaining consequences:
• Arguing over positions produce unwise
outcomes – your ego becomes identified with
the position.
• Arguing over positions is inefficient.
• Arguing over positions endangers an ongoing
relationship.
• When they are many parties, positional
bargaining is even worse.
• Being nice is no answer.
Positional Bargaining: What game
should you play?
Soft Hard
Participants are friends Participants are adversaries
The goal is agreement The goal is victory
Make concessions to cultivate a Demand concessions as a condition of the
relationship relationship
Be soft on the people and problem Be hard on the problem and the people
Trust others Distrust others
Change your position easily Dig in your position
Make offers Make threats
Disclose your bottom line Mislead as your bottom line
Accept one sided offers to reach Demand one-sided gains as the price of
agreement agreement
Search for single answers: one they will Search for the single answer: the one you
accept will accept
Insist on agreement Insist on your position
Try to avoid contest of wills Try to win a contest of will
Yield to pressure Apply pressure
Getting to Yes, Fisher & Ury
Soft Hard Principled
Participants are friends Participants are adversaries Participants are problem solvers

The goal is agreement The goal is victory The goal is a wise outcome

Make concessions to cultivate a Demand concessions as a condition Separate people from the problem
relationship of the relationship
Be soft on the people and Be hard on the problem and the Be soft on the people; hard on the
problem people problem
Trust others Distrust others Proceed independent of trust

Change your position easily Dig in your position Focus on interests not positions

Make offers Make threats Explore interests

Disclose your bottom line Mislead as your bottom line Avoid having a bottom line

Accept one sided offers to reach Demand one-sided gains as the Invent options for mutual gain
agreement price of agreement
Search for single answers: one Search for the single answer: the Develop multiple options to choose
they will accept one you will accept from, decide later
Insist on agreement Insist on your position Insist on using objective criteria

Try to avoid contest of wills Try to win a contest of will Try to reach a result based on
standards independent of will
Yield to pressure Apply pressure Reason and be open to reasons;
yield to principle not pressure

Getting to Yes, Fisher & Ury

 Negotiating Success Model
(Jim Hornickel)
Based on 3 Principles:

Mutuality
(win / win)

Proactivity
(creative)
Respect
• R – responsiveness (to their and your needs)
• E – empathy (put yourself in their shoes)
• S – being of service to each other (think of customer
service)
• P – perspectives (point of view, belief, or opinion)
• E – esteem (the state of one’s self-worth)
• C – courage – (the ability to move through discomfort
and uncertainty on behalf of a win-win negotiation
• T – truth telling (avoidance of lying, deception,
misrepresentation, and nondisclosure
 Activity
• Using the S.M.A.R.T. acronym – develop a goal.
– Specific
• Measurable
–Attainable / Achievable
»Relevant
• Timely
There is an alternative to positional
bargaining . . .
Separate people from the problem . . .
• Negotiators are people first
• They have emotions, deeply held values, and
different backgrounds and viewpoints; and
they are unpredictable.
• Every negotiator wants to reach an agreement
that satisfies his substantive interests.
• A negotiator wants to maintain a working
relationship good enough to produce an
acceptable agreement.
How Good Are Your Listening Skills?
The Power of Listening – Ury
https://www.youtube.com/watch?v=saXfavo1OQo
 Analyze Their Perceptions
• Understand the other person’s thinking – because
their thinking is the problem.
• Put yourself in their shoes.
• The ability to see the situation as the other side
sees it, as difficult as it may be, is one of the most
important skills a negotiator can possess!
• Don’t blame them for your problem.
• Discuss each other’s perceptions.
• Effective communication
 Focus on interests, not positions
• Interests define the problem.
• The basic problem in a negotiation lies not in
the conflicting positions, but in the conflict
between each sides needs, desires, concerns,
and fears.
• Behind opposed positions lie shared and
compatible interests, as well as conflicting
ones.
• How do you identify interests?
Invent multiple options . . .
 Insist that the result . . .
• Be based on some objective standard.
• Principled negotiation produces wise
agreements amicably and efficiently.
• The more you bring standards of fairness and
efficiency, the more likely you will reach a fair
and acceptable agreement.
 BATNA
• Best
• Alternative
• To
• A
• Negotiated
• Agreement

• This is the only standard that can protect you

from both accepting terms that are unfavorable.
• In negotiation, it’s important to have high
aspirations and to fight hard for a good
outcome. But it’s just as critical to establish a
walkaway point that is firmly grounded in
reality.
• Assessing your BATNA. To determine your BATNA in a
given negotiation, follow these four steps:
• List your alternatives. Think about all the alternatives
available to you if the current negotiation ends in an
impasse. What are your no-deal options?
• Evaluate your alternatives. Examine each option and
calculate the value of pursuing each one.
• Establish your BATNA. Choose a course of action that
would have the high- est expected value for you. This is
your BATNA—the course you should pursue if the
current negotiation fails.
• Calculate your reservation value. Now that you
know your BATNA, calculate your reservation
value—the lowest-valued deal you are willing to
accept.
• If the value of the deal proposed to you is lower
than your reservation value, you’ll be better off
rejecting the offer and pursuing your BATNA.
• If the final offer is higher than your reservation
value, you should accept it.
 Taking your BATNA to the next level
• and gain a critical advantage in upcoming
deals.
• 1. Translate your BATNA to the current deal.
 Generating BATNA’s
• Inventing a list of actions you might
conceivably take if no agreement is reached.
• Improving some of the more promising ideas
and converting them into practical
alternatives; and
• Selecting, tentatively, the one alternative that
seems best.
 Summary of today’s class . . .
• How does the body respond to conflict?
• The definition of conflict?
• Why is it important for self-awareness in
conflict?
• The 5 conflict styles of Thomas Killman are . . .
• Negotiation means . . .
• Positional bargaining means
• What does BATNA mean?
Covey – One of the 7 Habits of Highly Effective
People

• “Seek first to understand”: We (as educators) typically seek

first to be understood. Most people do not listen with the
intent to understand; they listen with the intent to reply.”
They’re either speaking or preparing to speak. They’re
filtering everything through their own paradigms, reading their
own autobiography into other people’s lives.”
• Empathic listening (the highest form of listening). Listening
with intent to understand. I mean seeking first to understand;
to really understand.