Navigating Negotiations

1. Loren, what inspired you to specialize in high-performance negotiations? What have been some of your career highlights to date? 

I have been a professor with the Haskayne School of Business for over 30 years, and I initiated and developed the negotiation programs in Haskayne.  Through my research and teaching I developed a framework that is relevant for both novice and skilled negotiators; both in terms of planning for a negotiation and optimizing the negotiated outcomes.  In partnership with Executive Education, I have collaborated with many public and private organizations to develop programs that advance their capacity to engage in constructive negotiations.  It is rewarding to hear back from participants about the confidence and success they have in their negotiations after taking the program.

I have also advanced my own skills by facilitating strategic planning sessions for multiple organizations, including leading the University of Calgary strategic planning processes in 2011, and again in 2016.  
 

2. Why do you believe that confident negotiators are more effective in reaching agreements?  How can one increase their confidence in this space?

Confidence facilitates the application of skills and strategy. Many individuals are good negotiators but lack the confidence to develop a communication strategy for complex negotiations or to push back when   pressured to engage in competitive tactics.  Skilled negotiators gain confidence by being prepared for a negotiation.  Prior to starting a negotiation, they identify the information needed to create a good agreement, and build a strategy for exchanging information with their counterparts. 

The High Performance Negotiation courses offered by Haskayne Executive Education build the knowledge and skills needed to navigate a range of negotiation situations.  Preparation and communication skills are reviewed, and then reinforced via case studies and simulations.  Preparation involves more than analyzing high volumes of numerical data, it requires understanding the context of the negotiation and identifying missing information that can be obtained through good communication skills.    
 

3. How has the pandemic impacted the way we negotiate? Where do you think the future of negotiations will go?

Prior to the pandemic, skilled negotiators were able to reach agreements through email. With email, everything is in print, and parties have time to absorb, and reply accordingly. During the pandemic negotiators rapidly adopted virtual platforms, combining both printed and verbal discussions, and often the number of participants in a negotiation.  The use of platforms, such as Zoom, opens the process to easy inclusion of more group members and multiple interpretations of a given statement. 

Use of online platforms increases the dependency on good communication skills.  Nonverbal communication is just as important in virtual as in face-to-face negotiations, however the online environment can increase the probability of misinterpretations.  It requires the integration of facial expressions, verbal statements, and printed messages to obtain accurate interpretations of other negotiators’ interests. 

Going forward, complex negotiations will occur through a blended environment where face-to-face and virtual discussions occur inter-changeably.  Negotiations may begin in person to form the relationship and transition to virtual to enable a variety of efficiencies. Virtual negotiations are better when completed in shorter and more frequent sessions.  Effectiveness is increased through platforms that allow both non-visible communications amongst group members and the visible sharing of documents.  For example in complex negotiations, platforms like Slack, increase efficiency by providing multiple, easily accessed channels, for exploring different topics.
 

4. How much does persuasion play into the effectiveness of negotiating?

A common misconception is persuasion is a core negotiation skill.  This is an erroneous perception because persuasion reduces the information exchanged between negotiators.  Individuals who focus on persuasion rarely learn about the other parties’ interests.  They focus on defending positions rather than identifying what they don’t know.  They fail to ask questions and listen to answers in order to obtain more information.  Preparation is about understanding what you don't know. With the application of a strategic framework, preparation becomes consistent with the context and the type and consequences of the agreement.  Eventually, the application of the framework becomes so implicit individuals can frame, prepare, and evaluate their negotiation seamlessly. 
 

5. We often hear that finding a ‘win-win’ for both parties makes for an optimal negotiation. Is this true?

Yes, there is some truth to this description of an effective negotiation.  However, it also implies negotiations are competitive and focused on persuasion rather than an effective information exchange that leads to all parties satisfying their interests.  Agreements fall apart when the interests of each party are not satisfied.   Effective negotiations are about finding an agreement that satisfies both parties interests. Not winning.
 

6. How does Unconscious bias play into negotiations?

Common pitfalls and cognitive biases, which have the potential to limit the accuracy of interpretations, are explored in class discussions.  Negotiators can never eliminate unconscious biases, as they are basic human nature. However, skilled negotiators understand where they occur, their potential impact on the process, and adjust to reduce any negative impact on the outcomes of a negotiation.
 

7. What differentiates a skilled negotiator?

Skilled negotiators are curious. They constantly seek to learn more about the other negotiator. They ask a lot of questions, listen, and adapt their strategy as needed. Another common misperception is skilled negotiators protect information and give very little away.  However, information is valuable and should be exchanged through reciprocity, give some and take some.  Skilled negotiators prepare by identifying relevant information, and potential frames, to improve the accuracy of its interpretation.   Rarely do skilled negotiators release information without receiving relevant information in return.  At the same time, less skilled negotiators often talk too much.  A rule of thumb is that if a negotiator talks more than 50 percent of the time, they are giving away information, instead of gathering it.

Negotiations become sub-optimal when one or more negotiators are misinterpreting statements and not understanding the interests of the other party.  Listening to the messages in a negotiation is difficult and requires constant practice.  Negotiated agreements based on misinformation or misinterpretations are weak, difficult to manage over time and lead to conflict.  Skilled negotiators recognize when their messages have been misinterpreted, and find ways to nudge the other negotiators towards agreements that satisfy all parties’ interests.  They also recognize that flexibility is required as disruptions to normalcy can occur at any time.  Their goal is to create agreements that are responsive to interests, and not based on positions.   
 

8. What is the most frequently asked question you receive from others regarding negotiations?

Two of the most common questions are “how can I become a more confident negotiator” and “how do I know if I can trust the other negotiator”.  These two questions are inter-related – if a negotiator knows what information is needed to reach an effective agreement and identifies the questions that need to be asked during the negotiation, they can be confident in their understanding of whether they should reach an agreement or walk away.  A good rule of thumb is “fool me once shame on you – fool me twice shame on me”.  In terms of negotiations, lie to me once shame on you, lie to me twice (without me questioning the accuracy) shame on me. 
 

9. Your course, High-Performance Negotiations, is taking place in September. Who would benefit most?

Learners taking the Haskayne courses come from a variety of backgrounds including professionals involved in complex stakeholder discussions, those in the middle of merger and acquisition activity, managers leading cross-functional teams, as well as entrepreneurs, account, and procurement managers.  Managers of functional areas also gain from taking the courses.  The focus of the course is applying a strategic framework that leads to effective preparation, communication skills, and building of relationships.  Eventually, individuals implicitly apply the framework to prepare, execute and evaluate their negotiations seamlessly.

Negotiations are ubiquitous in work relationships. Skilled negotiators successfully communicate their interests, while learning more about what others need.  During a given day, individuals could be negotiating their contribution to a group project, obtaining additional resources for their teams or finalizing the next step in their career paths.   Skilled negotiators move confidently through these discussions and optimize the trade-offs made to satisfy interests.  They apply the appropriate strategies for maintaining relationships and creating mutually satisfactory agreements.