Young ICCA-HK45 Skills Training Workshop: Beyond Bargaining: Understanding Human Behaviour in Negotiation

Young ICCA and HK45 invited Dr. Claudia Winkler from The Negotiation Academy to lead a skills training workshop during the 26th ICCA Congress in Hong Kong. Participants explored the fascinating intersection of negotiation and human behavior, immersing themselves in the psychological underpinnings of negotiation strategy and decision-making.

Through interactive exercises and role-playing simulations, attendees analysed how to leverage negotiation psychology to their advantage in their negotiations. Topics included:

• Interest-based negotiation and its persuasive power;
• Game theory in win-win negotiation;
• Anchoring in competitive bargaining; and

• Framing and other unconscious biases.

   

A video recording of the workshop will be available soon. Watch this space. 

Post event report

By Ha My Linh (Clerk, ADR Vietnam Chambers LLC/ Young ICCA member)

On 8 May 2024, Young ICCA and HK45 co-hosted a Skills Training Workshop titled “Beyond Bargaining: Understanding Human Behaviour in Negotiation” as part of the ICCA Congress 2024 in Hong Kong. The event commenced with Shirin Gurdova, Co-Chair of Young ICCA, providing an overview of Young ICCA and its programs. Following this, Rohit Bhat announced the winner of The Young Arbitrator Research Competition, a contest co-hosted by Young ICCA and Wolters Kluwer. This set the stage for an insightful session led by Dr. Claudia Winkler, Founder and CEO of The Negotiation Academy.

Negotiation, as Dr. Winkler explained, is less about the amount of experience one possesses and more about the quality of training received. Her lecture delved into the psychological foundations of negotiation strategies and decision-making processes. Participants were introduced to the intricate world of negotiation psychology through interactive exercises and role-playing simulations. The workshop explored four core topics: Interest-based negotiation and its persuasive power, Game Theory in Win-Win Negotiation, Anchoring in Competitive Bargaining, and Framing along with other unconscious biases.

Interest-based negotiation and its persuasive power

Dr. Winkler defined the differences between arguing and negotiating. She emphasized that persuasion involves understanding what the other side wants and finding ways to meet those needs. In negotiation, people act based on their reasons, not yours; thus, identifying their reasons is key to persuasion.

Game Theory in Win-Win Negotiation

Dr. Winkler explored the enjoyment derived from negotiation and the comparative skills of lawyers and other business professionals. She emphasized that negotiation is fundamentally different from arguing—a skill in which lawyers are typically well-versed. Instead, successful negotiation hinges on understanding the other party’s reasons and motivations. Dr. Winkler highlighted that trust is the bedrock of any negotiation, advocating for the sharing of information to build this trust. She outlined key strategies for win-win negotiation, including (i) Build trust, (ii) Share information, (iii) the importance of preparation, (iv) asking open-ended questions, and (v) comprehending the interests of all parties involved.

Anchoring in Competitive Bargaining

Dr. Winkler utilized concepts from behavioral economics and game theory to explain the negotiator's dilemma—a situation where deciding between cooperation and competition is crucial. She then indicated five way to crack the negotiation’s dilemma: 

• use conscious trust-building. Engage in actions like arriving early, having small talk, and sharing information to build trust

• give a trust advantage. You can’t expect people to trust you if you are not trust them. If you can manage to show the other side that you give them the trust advantage trust will come back.

• work with their reciprocity & use mirror neurons. Be friendly and cooperative to elicit the same behavior from the other side.

• set the right tone and energy in the room. The stronger energy in the room is more than who is more senior. Don’t fall in the mirror neurons that other give to you. If someone come in with negative try to pull that out of the cycle. Try to let other people be more collative with you. As the main problem is when one person is aggressive and the other follow immediately. Try to be conscious about the energy that you bring to the room

• build a reputation for win-win. Cultivate a reputation for fair and collaborative negotiations to facilitate trust and cooperation.

Framing along with other unconscious biases

Dr. Winkler emphasized the importance of understanding both your own limits (Best Alternative to a Negotiated Agreement - BATNA) and those of the other party in negotiation, highlighting the need to create subjective satisfaction through well-planned concessions. She discussed the psychological nuances of framing offers to influence perceptions and outcomes, cautioning against the bias of fairness perception. Addressing psychological challenges like selective perception, overconfidence, and the impact of values and beliefs, , Dr. Winkler offered strategies to counter these biases. These included well preparation, open-mindedness, honest introspection, effective summarization, reframing perspectives, allowing ample time for decisions and conscious decision-making.

The workshop concluded with several key takeaways. First, negotiation should not be conflated with arguing; the goal is to achieve win-win outcomes. Second, understanding the underlying reasons behind the other party’s actions is crucial. Third, focusing on interests rather than positions leads to more productive negotiations. Fourth, building trust is essential to preempt the negotiator’s dilemma. Additionally, using anchoring techniques wisely, preparing meticulously, and being strategic with concessions were emphasized. Lastly, recognizing that satisfaction in negotiations is subjective can guide negotiators to more favorable outcomes.

The workshop provided valuable insights into the human behaviors that underpin effective negotiation strategies. Dr. Winkler’s expertise and interactive approach equipped participants with practical tools to enhance their negotiation skills, emphasizing the importance of psychological acumen in achieving successful outcomes.

Eva Chan, Co-Chair of Young ICCA, closed the workshop with remarks emphasizing the critical nature of negotiation skills for advocates.