The Shadow Negotiation: Using Strategic Moves To Even The Odds

The Shadow Negotiation: Using
Strategic Moves to Even the Odds
theshadownegotiation.com
Why are Negotiation Skills So Critical
Now?
Organizations are flatter and more networked
responsibilities exceed authority
Organizations are more matrixed and team-based
deal with conflicts at their source
Organizations need to be more flexible in the face
of changing environments
deal with resistance to change
Organizations are more diverse
deal with different styles, values, etc.
Organizations expect more from employees
negotiate conditions for success
Why are Negotiation Skills So Critical Now:
The HR Story
Negotiate for resources -- $$$, people, time

Negotiate for interests -- compliance, consistency, value of
the human resource
Negotiate to solve problems -- complaints, crises,
downsizing
Negotiate to promote equity and fairness-- learning from
diversity
Negotiate to enhance systems and practices --
succession, compensation, recruitment, etc.
Negotiate to enhance organizational conflict
handling capacity
Workshop Program
Basic Elements of Dealmaking -- what should agreements

look like?
The Shadow Negotiation

how do we get in a good position to negotiate for HR
interests and goals?
how do we create a legitimate space for others to
collaborate with us to solve problems?
Applications
Vacation Negotiation
What are my interests?
Exotic; $$$$; shopping; eating out
What are husband’s interests?
Proximity; backwoods; -$; fishing; meals in
What are the priority issues?
Me: $$$$; shopping
Husband: fishing; meals in
Packages that build on differences
Timing: fishing in Montana one year--Paris shopping the next
Bridging: luxurious all-inclusive hotel near fishing/shopping
Pay in other currency: fishing in backwoods; new car
Best Practices in Dealmaking
Be Prepared
Figure out what you really need -- your interests
Find out about what is important to them--their
interests
Create proposals that take both interests into account
It’s rarely just about a single issue -- $$
Look for Creative Options

Talk in terms of priorities -- what matters most to each
Look for areas of difference -- preferences, time, risk
Create package deals -- gains from trades
Don’t focus on common ground--look for differences
Carl’s Constraints
What are Carl’s interests?
What are Don’s interests?
What proposals would satisfy their interests?
What’s a good package deal?
Carl’s Constraints
What are Carl’s interests?
Do high quality work; stay within budget; not overwork staff; not set a
precedent; others?
What are Don’s interests?

Get high quality competent people; get it done quickly; stay within
budget; others?
What proposals would satisfy their interests?

Agree to do it; Don commits resources to Carl’s group
Agree to do it; Don’s staff helps with interviewing
Agree to go to CEO for more funds
Slow down the process (trade time for resources)
Others?
Why a ‘Good Deal’ is Not Enough
Assumes that others are willing to negotiate -- encounter
resistance
Assumes that negotiators are clear about what they want --

situations are complex
Assumes that bargainers are rational about deals -- hidden

agendas can drive the process
Assumes that the problem is the problem -- learning can reframe

the situation
Dealmaking ignores the processes that make
it possible
Negotiation: Working Out Deals
& Relationships
Dealmaking -- Negotiate the issues
Task: Work out elements of the agreement
Strategy: Uncover interests & propose creative options
Shadow Negotiation - Negotiate (tacitly) how to negotiate

Task: Create structure and process to work on issues
Strategy: Position self (and others) to negotiate creatively
A parallel negotiation to dealmaking
Focus on (at and away from the table):

getting into a good position to negotiate
managing structure and process
shaping perceptions of need and interdependence
promoting participation and buy-in
managing hidden agendas
Key Challenge:
positioning yourself (and the other party) to create
the conditions for effective problem solving
Challenges in the Shadow
Negotiation
Get in Your Own Way -- hard to focus on needs
Encounter resistance to negotiating -- hard to get

negotiations off the ground
Offensive Moves that Make You Defensive -- hard

to get proposals heard
Self Focused Frame --hard to figure out what others want
Engage in Telling and Selling -- hard to engage them in

a process that leads to creating good agreements
Some Common Ways We Get
In Our Own Way
• Fail to recognize negotiation opportunities
• Don’t like to be seen as confrontational
• See only our own weakness
• Bargain ourselves down
• Overconfidence becomes arrogance
• Take responsibility for ensuring everybody’s satisfaction
• Confuse toughness with effectiveness
Get Yourself into a Good Bargaining
Position
The Problem: Getting in your own way
Goal: Focus on what you need

Take stock -- your value; your vulnerabilities
Learn as much as you can -- benchmarking;
knowing what you know
Develop alternatives -- what happens if no deal (to
you? to them?)
Translate into moves that shape perceptions of you/deal

Application
How Do I Get in My Way?
What Can I Do About it?
Problems Getting People to
‘The Table’
Refuse to meet
Stall or postpone
Passive resistance
Hold out for concessions
Dominate the agenda
Encounter Resistance to
Negotiating
The Problem: They don’t want to negotiate
Goal: Use Strategic Moves to get them to

negotiate
Incentives -- make your value visible
Power --raise costs of status quo
Support -- enlist allies
Process -- frame agenda
Use strategic moves to get negotiations going
Application: Resources
: for HRD
You are VP for Human Resources in a manufacturing firm. Your plan, to consolidate and
strengthen the HRD departments, was given the go ahead by the CEO although no budge
has yet been allocated. The plan will require an 18% increase over last years
budget.You are convinced that this change will significantly increase productivity in the
firm.
Budget season is here. Even though revenues in the firm have grown, costs have
outpaced them. You think your plan will help control costs but you need to invest in new
staffing and systems to make that happen. You will need at least two new senior
management positions. You just received a memo from the CFO concerning up-coming
budget negotiations stating that, “under no circumstances will I entertain a proposal for an
increase of more than 5% over the current budget; the average increase will be
considerably less.”
You have pared the budget to the bone, but are quite sure that the CFO will not agree to it
just on its merits. He has a reputation for holding the line and he is worried about the
precedent if he gives in to you. How can you get him to the table to seriously consider
your proposal?.
Application: Resources for HRD
What can you do to make your value visible to the CFO?
(incentive moves)
What can you do to raise the costs of his saying ‘no’?
(power moves)
What other support (allies) can you enlist to help bring
the CFO to the table?
(support moves)
What can you do to manage the process so that he
entertains your proposal?
(process moves)
What can you do to make your value visible to the CFO?
Filled two positions in finance in record time in competitive
market
What can you do to raise the costs of his saying ‘no’?
Explore consequences of blocking change; memo of support from CEO
What other support (allies) can you enlist to help bring
the CFO to the table?
Enlist other departments to lobby for the plan
What can you do to manage the process so that he
entertains your proposal?
Frame the discussion on benefits; have options to propose
Offensive Moves that Make Your
Defensive
The Problem: Hard to advocate effectively from a
defensive stance
Goal: Anticipate moves and ‘turn’ them
Question your competency/expertise
Criticize your style
Demean your ideas
Appeal for sympathy/support
Make threats
Dealmaking: Working on the
Issues
Figure out what you want--keep client; maintain/increase revenues;
precedent; willing to share some risk
Think about what they want -- reduce costs; decrease liability;

accomplish something
Look for differences in priorities-- Grace (not cut fee; get compensated
for extra work); Mark (extended guarantee; change timing of payment)
Propose packages that build on differences--sliding scale on

guarantee; 45 days on payment schedule; 25% on fee with clear criteria for
what is covered
Resist Challenges to Your Position
The Problem: Moves that put them in a good
position can put you at a disadvantage
Anticipate Moves:
Your fees are way out of line with what you deliver
We are not getting value for our money
You are being unreasonable
Demean your ideas
You can’t be serious about charging us for every little thing
I need your help on this
I’m really being squeezed here
Make threats
We have other low cost alternatives
Resist Challenges
The Goal: Turn moves that put you on the
defensive
Turns:
Interrupt the Move--stop action
Name the Move--show you know it’s a tactic
Correct the Move -- offer an alternative version
Divert the Move-- jump to the problem

Turn moves to even the playing field
Resist Challenges to Your Position
Your fees are way out of line with what you deliver
Correct: I checked the fee schedules of other firms
Name: You and I know that’s not what’s going on
We are not getting value for our money
Divert: That’s a problem; let’s talk about what you mean
Name: I’m surprised; you’ve never mentioned it before
You are being unreasonable
Correct: I am trying to find a way to meet your needs and mine
Divert: What would you see as reasonable?
You can’t be serious about charging us for every little thing
Name: I am. You and I both know you have been getting a free ride
Divert: Let me show you the breakdown on the services
I need your help on this
Name: I want to help
Correct: I’ve always tried to accommodate you when possible
Divert: Let’s look at what the problem is
We have other low cost alternatives
Name: You and I both know that will mean more work for you
Turning moves:
Demean your ideas
Make threats
Turning moves:
Question your competency/expertise--this is a boondoggle for
your people; it will never pay off
Criticize your style--you’re being selfish and greedy; not taking the
firm’s needs into account
Demean your ideas--this will never work
Appeal for sympathy/support--I really need your help on this;

everyone will be coming to me for $$
Make threats--if this doesn’t produce results, forget next year’s

budget theshadownegotiation.com
Self Focused Frame
The Problem: Hard to hear what others want
Skill: Ability to Empathize with Others
Look at your story -- What is your explanation?

Look at your partner’s story -- What are the
5 good reasons your partner would give to explain
his/her actions?
Open negotiations to legitimate their story

Partisan Perceptions
We tend to evaluate the other person and ourselves differently
and in ways that almost inevitably give ourselves the benefit
of the doubt
Our own conciliatory behavior we attribute to being

truly nice people; the other person’s similar behavior we
attribute to manipulative intent.
Our own intransigent behavior we attribute to situation

causes -- a bad mood, constraints over which we have no
control; the other’s similar intransigence we attribute to them
being a difficult person.
Attributions
Us Them
Deserve what we get Free rider
Strategic Opportunistic
Long term perspective Short term thinker
See the big picture Narrow vision
Act in organization’s best interests Out for themselves
Reasonable Stubborn
Easy to deal with Difficult
Self Focused Frame
The Problem: Hard to hear what others want
Skill: Ability to Empathize with Others
Look at your story -- What is your explanation?

Look at your partner’s story -- What are the
5 good reasons your partner would give to explain
his/her actions?
Open negotiations to legitimate their story

Resources for HRD
1. How would you describe what what is happening?
2. What are 5 good reasons that the CFO would use to

explain his actions?
Resources for HRD
1. How would you describe what is happening?
Great opportunity
Focused only on costs
Can’t see the big picture
Blocker
Difficult to deal with
Other?
2. What are 5 good reasons that the CFO would use to

explain his actions?
Not consistent with current strategic issues
Has a mandate to stay within 5%
Set a bad precedent
It won’t work
Job is to hold the line
Opening Gambits in Negotiation
How you open sets the context for what follows
Make space for building rapport-- role of rituals
Try to foster interdependence-- shared fate; poor choices
Demonstrate appreciation for their situation--space to
voice concerns
Frame the Agenda -- negotiate how you’ll negotiate
Adopt a learning stance -- talk less, listen more
Engage in Telling and Selling
Problem: Hard to do problem solving
Practices: Appreciative moves
Structure to promote participation -- legitimate
different perceptions;hold open multiple
possibilities
Strive to get joint understanding of the issues
question assumptions; review histories
Help them save face -- graceful retreats; collective
solutions
Keep the dialogue going; ‘no’ may be only the beginning
Iris’ Initiative
What is Iris’ story? What are the 5 good reasons
the Director has to reject her initiative?
How can Iris open the conversation to get the Director to

engage with her on the problem?
What appreciative moves can she use to get a new joint

understanding of the issues?
How can she help the Director save face?
What can she do to keep the dialogue going?

Promoting Collaborative Problem
Solving
Dealmaking:
Do not assume you are dealing with a fixed pie and that the challenge is to compromise
Consider ways you can reframe the problem
Look for differences in interests, consider possible trades/packages
Shadow Negotiation
Do not assume that people are committed to working on a problem
Consider ways you can get them to reconsider
Talk in ways that highlight interdependence
Do not assume that because substantive needs are met that they will agree
Consider ways you can help them back down without losing face
Think about how they will justify their actions to important constituencies
Ask each other about the consequences to no agreement

Your Negotiation & Conflict
Resolution Crib Sheet
1.
2.
3.
4.
5. theshadownegotiation.com
Suggested Reading
Dealmaking:
Getting to Yes (Fisher, Ury, Patton
The Art and Science of Negotiation (Raiffa)

The Shadow Negotiation (Kolb and Williams)
“Breakthrough Bargaining” (Kolb and Williams)
Harvard Business Review, February, 2001
“Getting What You Are Worth”
on-line training at theshadownegotiation.com

The Shadow Negotiation: Using Strategic Moves To Even The Odds

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The Shadow Negotiation: Using

Strategic Moves to Even the Odds

Negotiate for resources -- $$$, people, time

Basic Elements of Dealmaking -- what should agreements

The Shadow Negotiation

Look for Creative Options

What are Don’s interests?

What proposals would satisfy their interests?

What’s a good package deal?

What are Don’s interests?

What proposals would satisfy their interests?

Assumes that negotiators are clear about what they want --

Assumes that bargainers are rational about deals -- hidden

Assumes that the problem is the problem -- learning can reframe

Shadow Negotiation - Negotiate (tacitly) how to negotiate

Focus on (at and away from the table):

Encounter resistance to negotiating -- hard to get

Offensive Moves that Make You Defensive -- hard

Self Focused Frame --hard to figure out what others want

Engage in Telling and Selling -- hard to engage them in

Goal: Focus on what you need

Translate into moves that shape perceptions of you/deal

How Do I Get in My Way?

What Can I Do About it?

Goal: Use Strategic Moves to get them to

Think about what they want -- reduce costs; decrease liability;

Propose packages that build on differences--sliding scale on

Name the Move--show you know it’s a tactic

Correct the Move -- offer an alternative version

Divert the Move-- jump to the problem

Criticize your style

Demean your ideas

Appeal for sympathy/support

Demean your ideas--this will never work

Appeal for sympathy/support--I really need your help on this;

Make threats--if this doesn’t produce results, forget next year’s

Skill: Ability to Empathize with Others

Look at your story -- What is your explanation?

Open negotiations to legitimate their story

Our own conciliatory behavior we attribute to being

Our own intransigent behavior we attribute to situation

Skill: Ability to Empathize with Others

Look at your story -- What is your explanation?

Open negotiations to legitimate their story

1. How would you describe what what is happening?

2. What are 5 good reasons that the CFO would use to

2. What are 5 good reasons that the CFO would use to

How can Iris open the conversation to get the Director to

What appreciative moves can she use to get a new joint

How can she help the Director save face?

What can she do to keep the dialogue going?

Ask each other about the consequences to no agreement

The Shadow Negotiation

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