09 Multiple Party Negotiation

Question 1

Dynamics of multiparty negotiations

Answer 1

• Number of parties
• Social complexity
• Procedural complexity
• Strategic complexity
• Informational and computational complexity

Question 2

What should effective groups do?

Answer 2

1. Test assumptions and inferences
2. Share all relevant information
3. Focus on interests, not positions
4. Explain the reasons behind one’s statements, questions, and answers
5. Be specific - use examples
6. Agree on what important words mean
7. Disagree openly with any member of the group
8. Make statements, then invite questions and comments
9. Jointly design ways to test disagreements and solutions
10. Discuss undiscussable issues
11. Keep the discussion focused
12. Do not take cheap shots or otherwise distract the group
13. Expect to have all members participate in all phases of the process
14. Exchange relevant information with nongroup members
15. Make decisions by consensus
16. Conduct self-critique

Question 3

Key stages of multilateral negotiations

Answer 3

1. Prenegotiation stage
   
   • characterized by many informal contacts among the parties
2. Formal negotiation stage
   
   • structures a group discussion to achieve an effective and endorsed result
3. Agreement phase
   
   • parties select among the alternatives on the table

Question 4

Prenegotiation Stage

Answer 4

• establish participants
  
  • who is to be included/excluded
  • who is likely to help parties achieve/miss their goal
• form coalitions
  
  • identify common objective
  • determine own scope of influence
  • will you lead the charge or are others willing to trumpet the common cause?
  • will you recognize if other participants have retreated behind you?
  • how will you control the communication of information?
  • appreciate the coalition as a fragile and imperfect design
• define group member roles
  
  • task/relationship/self-oriented
• understand the costs and consequences of no agreement
  
  • knowing your BATNA, perceptions, and biases
• learn the issues and construct an agenda

Question 5

Formal Negotiation Stage

Answer 5

• appoint an appropriate chair/facilitator
  
  • neutral and objective
• use and restructure the agenda
• ensure diversity of information and perspectives
  
  • Key process steps
    
    • collect thoughts and composure before speaking
    • understand the other person’s position
    • think of ways both parties can win
    • consider the importance of the issue
    • remember parties will likely work together in the future
• ensure consideration of all available information
  
  • The Delphi Technique
    
    • an initial questionnaire, sent to all parties, asking for input
  • Brainstorming
    
    • define a problem and generate as many solutions as possible without criticizing any of them
  • Nominal group technique
    
    • Brainstormed list of solutions ranked, rated, or evaluated
• manage conflict effectively
• review and manage decision rules
• strive for a first agreement
  
  • it is difficult to achieve everything all at once
• manage problem team members
  
  • be specific about problem behaviors
  • describe problems as team problems
  • focus on behaviors the other can control
  • wait to give constructive criticism
  • keep feedback professional
  • verify the other has heard and understood

Question 6

Agreement Stage

Answer 6

• select the best solution
  
  • single alternative or combined alternatives in a package
• develop an action plan
  
  • including steps, objectives, timelines, resources, responsibilities
• implement the action plan
  
  • Important: it needs to follow the established guidelines
• evaluate outcomes and the processes
  
  • critical to examine the effectiveness
• group chair or facilitators steps in moving toward successful completion:
  
  • move the group toward selecting one or more of the options
  • shape and draft the tentative agreement
  • discuss whatever implementation and follow-up needs to occur
  • thank the group for their participation, hard work, and efforts
  • organize and facilitate the postmortem

Question 7

Reasons to use a third party

Answer 7

• emotional level between parties is high
• communication between parties is poor or has broken down
• stereotypic views of each other’s position and motives
• behavior is negative
• parties have serious disagreements about what information is necessary, available, or required
• parties disagree on the number, order, or combination of issues
• differences in interests appear to be irreconcilable
• values differ greatly and there is disagreement about what is right
• there are no established procedures or have not been followed
• there is an impasse

Question 8

Use of third party help

Answer 8

• Arbitration
  
  • arbitrator takes control of shaping and determining the outcome
  • often used in business conflicts (labor relations, contracts)
• Mediation
  
  • a mediator does not solve the problem or impose a solution; just helps the parties to negotiate more effectively
  • provides a procedure and rules of conduct
• Process consultation
  
  • counselors help parties improve, communication, reduce emotionality and increase negotiation skills

Question 9

Advantages and disadvantages of third party help

Answer 9

Advantages

• parties gain time to cool off
• communication can be improved
• asks parties to prioritize issues
• emotional climate can be improved
• time frame can be reestablished
• escalating costs can be controlled
• parties may learn from third party’s actions and use them in the future
• may actually lead to resolution and disclosure

Disadvantages

• parties may lose face (incompetence or incapable) if someone is called in
• loss of control of the process, outcome, or both