Presentation: Interest Based Negotiations

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INTRODUCTIONArmenda Daye, Procurement Analyst, Acquisition Career Manager, DOI Overview of the new “Interest-Based Negotiations” course Personal Background Information

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2007 & 2008 Contracting Competency SurveysContracting personnel need improvement in negotiating skills 2-Day interactive IBN course developed to encourage employees to negotiate in a “fearless” manner

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IBN Course Schedule and Registration2010 Schedule Wednesday, March 24 – Thursday, March 25 Tuesday, April 20 – Wednesday, April 21 Wednesday, May 12 – Thursday, May 13 Wednesday, August 11 – Thursday, August 12 Registration Federal Acquisition Institute Training Application System https://www.atrrs.army.mil/channels/faitas

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Difference between my Position-Based Negotiation course with DoD and the new Interest-based Negotiation Concept -40 hour course -Emphasis on WINNING -Two Groups – 50% students represented contractor, 50% Government -Worked on math-laden proposal for 4 days and conducted the negotiation on 5th day -Negotiations were Emotional (apprehension, anger, tears)

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Three ObjectivesDistinguish between position-based and interest-based negotiation Identify the interest-based negotiation process Explain the elements of an interest-based approach to negotiating

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Discussion of:Definition of Negotiation Types of Negotiation Methods The Interest-based Negotiation Process

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What is Negotiation?Back-and-forth communication to reach an agreement A means of getting what you want from others An attempt to resolve differences

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Why Do We Negotiate?Because we want or need: Something others have Someone to do something

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When Do We First Learn to Negotiate?

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What Do We Negotiate Over in Government Acquisition? Price Delivery Quality

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Two Types Of NegotiationPosition Based (The What) Interest Based (The Why)

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Position-Based NegotiationFocuses on pre-determined solutions Attacks the opposing parties’ positions Produces unsatisfactory agreements

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Interest-Based Negotiation (IBN)Focuses on all parties: Individual needs Organizational needs

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Five Elements of IBNSeparate the people from the problem Focus on interests, not positions Create options for mutual gain Define objective criteria Develop your BATNA

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1. Separate the People from the ProblemPeople and problems get entangled by: Emotions Communications Perceptions

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2. Focus On InterestsPositions Involve a Predetermined solution Require justification (defense) End discussionsInterests Examine “Why” a solution is preferred Require explanation (reason) Start discussions

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3. Options for Mutual GainRecognize there can be > 1 option Expand the pie thru Brainstorming

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4. Objective Criteria (Mutually Acceptable Yardsticks) “Others in the industry do…” “The last time this happened we…” “The standard contract says…” What is customary Precedent Law

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5. BATNABest Alternative to a Negotiated Agreement (Walk Away Position) Consider what you will do if an agreement is NOT reached Is Activated when Alternatives are OUTSIDE the negotiation Must be real and concrete

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Options vs. BATNAOptions “Inside” the negotiation Created with counterpart Potential solution(s)/ brainstorming BOTH you and counterpart receive benefitBATNA “Outside” the negotiation Created alone Fall back position if negotiation fails ONLY impacts you/your organization

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The IBN Process

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Wife “I want a vacation in Las Vegas”Husband “I want a vacation at the beach”Vacation Problem

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Vacation SolutionWife “I want a vacation in Las Vegas”Husband “I want a vacation at the beach”

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Understand your position and theirs Recognize your interests and theirs Explore options for mutual gain Use objective criteria Identify your BATNA and theirsIBN CONCEPTS SUMMARY

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Government Example of IBN Process: Negotiation with Program OfficeProgram Office wants a sole-source contract

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1. UNDERSTAND YOUR POSITION AND THEIRS Your Position: Legally Sufficient Contract Their Position: Assured Quality Contractor

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Last Updated: 8th March 2018

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