Health Management Quality, Risk and Cost Simulation

Principled Negotiation – the framework:

Key factors:
What is the current relationship (the macro picture):
•How important is the relationship over time – is this a one-off transaction? Will the parties
continue to deal with one another?
ÄCommon mistakes –
•Relationship and substance are mixed
•The relationship is given AND “It’s their fault”
ÄAddress the relationship and substance independently
ÄPrepare to be reliable – Neither trust or deceive them, be reliable
ÄBalance emotions with reason
ÄAcceptance – Prepare to accept them, even if they have shown they don’t accept us
ÄPrepare to be unconditionally constructive
Principled Negotiation – The Relationship:
• “The basic problem in negotiation lies not in conflicting
positions, but in the difference between each parties’ needs,
desires, concerns, and fears – i.e. their interests.” • Roger Fisher et al, “Getting to Yes”, 1991
Principled Negotiation – Interests:
Human beings have 3 kinds of interdependent interests:
substantive Interests: those things that are being negotiated – eg they may be tangible like money, or
intangible like rights.
personal Interests: people stuff – feelings. For example, being respected or validated, or being
acknowledged and understood
procedural interests: having a fair opportunity to put forward their points of view
Principled Negotiation – Interests:
A Better Understanding of Interests:
opens up opportunities for resolution and value creation
helps identify and clarify the real and un-real conflict
helps build working relationships
stimulates and focuses creativity – i.e. understanding differences, and
reconciling them
Principled Negotiation – Interests:
Tenet: Understanding is not the same as agreeing!
Communication & preparing to understand interests:
ÄWhat are my assumptions?
ÄHow will I test them?
ÄWhat should I listen for?
ÄHow do I listen?
ÄWhat will I talk about?
ÄIn what order should I talk about things?
ÄWhat questions to ask? How will I frame them?
Principled Negotiation – Communication:
Tenet: Creating more than one option allows value to be identified and
created – i.e.:
☞Can allow the parties to work together to achieve economies of scale or
that neither could on their own
☞Help find value in substantive differences
☞Can help identify risk preferences– Can one party bear or insure against
Is risk better?
☞Can help identify Timing preferences – Is there room to sequence?
☞Can help identification of marginal value in the same item (if identified,
trade can occur)
Principled Negotiation – Options:
“Trying to reconcile differences on the basis of will can be
very costly. The more you bring standards of fairness,
efficiency, or scientific merit to bear the more likely you are
to produce a wise agreement.”
Roger Fis