Exploration: Finding Better Outcomes
OPS 938: Negotiation Theory and Practice for Project Management
L e c t u r e 6
Trimester 3, 2022 W o l l o n g o n g a n d S y d n e y O n C a m p u s
Faculty of B u s i n e s s a n d L a w (BAL)
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2

Topic	Reading
1	Emergency Evacuation Procedures Subject Overview Introduction to Negotiation	Chapter 1
2	About Negotiators	Chapter 2
3	Establishing what can be achieved	Chapter 3
4	Strategically managing the Negotiation Process	Chapter 4
5	Differentiation: Managing the Exchange	Chapter 5
6	Exploration: Finding better outcomes	Chapter 6
7	Exchange: getting to an agreement	Chapter 7
8	Strategically managing deadlocks Overcoming deadlocks through Mediation	Chapter 8 & 9
9	Negotiation in practice	Chapter 10
10	Cross cultural negotiators	Chapter 13

 

This Lecture

Woll 24 G03 2,

Subject overview
OPS 938: Negotiation Theory and Practice for Project Management Consultation Classes
Will be Online from weeks 1-4
SYD Level 10 SR10 1, 3, 5, 7, 9
4, 6, 8, 10
I n t r o d u c t i o n to N e g o tia tio n
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Differentiation Phase – recap

OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Class Exercise 1:
Biden vs Putin Was their Talks a Negotiation?
video https://www.smh.com.au/world/north- america/biden-strumpian-outburst-puts-his-putin-challenge-on- full-display-
20210617-p581pv.html
1.Were the Biden – Putin talks a negotiation?
2.What positions do you think US & Russia have?
3.What are each countries interest in the other?
4.How does this position impact negotiations.
5 Document title
Activity:
Case Study 1: What Did I hear?
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
What did I hear?
1. A man appeared just before the owner locked the door True/False/?
2. The man demanded money True/False/?
3. The owner opened a safe True/False/?
4. After the man gathered the day’s receipts he ran away True/False/?
5. Not much money was taken from the safe True/False/?
6. The police responded within minutes True/False/?
7. The robber was a man True/False/?
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
A G E N D A
P h a s e S t r u c t u r e of Negotiations.
Exploration P h a s e
§ C l a s s Exercise 1:
§ Develop a n Action Plan
§ Don’t rush into Exploration
§ Creating S p a c e in B a r g a i n i n g Mix
§ H a n d l i n g the Process
§ M a n a g i n g Exploration Tasks
§ C l a s s Exercise 2
§ C l a s s Exercise 3: Social Situation Negotiation
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
A G E N D A
8
S o m e Exploration Skills
§ A s s e s s i ng the current s c op e of the Negotiation
§ T h i n g s to Avoid
§ H a n d l i n g S u g g e s t i o n s Constructively
§ H a n d l i n g Unhelpful S u g g e s t i o n s
§ Cr e a t i n g Value in the Proposal
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Assignment 2
9
A S S I G N M E N T 2- C A S E A N A L Y S I S A N D R E S E A R C H R E P O R T (30%)
D o w n l o a d O P S 9 3 8 – A 2 A s s i g n m e n t from the MoodleA s s e s s m e n t s Panel
D u e Date: 21st October ( We e k 8)
Phase Structure of Negotiations,
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Phase Structure of Negotiations, a recap
D I F F E R E N T I A T I O N à E X P L O R A T I O N à E X C H A N G E
p reviou s le cture (L5) n e x t le cture (L7)
1 1
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Phase Structure of Negotiations, a recap
D I F F E R E N T I A T I O N à E X P L O R A T I O N à E X C H A N G E
this le cture (L6)
1 2
OPS 938: Negotiation Theory and Practice for Project Management
Source: Fells, R. (2016). Effective Negotiation. 3rd ed. Cambridge University Press..
The exploration task: an overview
Aim: While still being firm, propose and consider new options
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
The exploration task: An overview
Aim: To demonstrate firmness
and gain an understanding of the other party
Issue + Process + Action à Outcome
Creative Exploration Flexibility
compromise Create openness testing
New options Restate Examine, explore,
differences unpack
A potential
agreement
emerges
or at least,
possibilities
Source: Fells, R. (2016). Effective Negotiation. 3rd ed. Cambridge University Press..
Exploration Phase
Class Exercise 1
All students should be prepared to answer these:
How could you let the other negotiator know that you have a very
good walk-away alternative without it appearing that you are
threatening to walk away?
How might you counter the other party’s threat to
walk away?
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Exploration Phase
T h e w a l k a w a y T a c t i c – t h e 3 rd w a y ou t of a d ead lo c k.
§ Consider the Walk-Away before you start
§ Consider the Walk-Away point
§ Do not act on emotion
§ Consider your back-up options (Plan B)
§ When should you walk away?
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Exploration Phase
D E V E L O P I N G A N A C T I O N P L A N …
§ n o w b oth parties h ave a better u n d e r s t a n d i n g of e a c h
other’s interests a n d the situation
§ e a c h t e a m m u s t con tin u e to stan d firm o n w h a t is
important to while a c k n o w l e d g i n g w h a t is imp ortan t to the
other party
§ in d o i n g this w e h o p e to s h o w w e are trying to find a
solution that m e e t s b o t h parties n e e d s
§ e a c h t e a m m u s t d o their best to g e n e ra te n e w value
a d d i n g options a n d offer t h e m for discussion
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Exploration Phase
D E V E L O P I N G A N A C T I O N P L A N …
§ e a c h t e a m will m a k e sure they really explore a n y proposals they
ma ke , e ve n if they don’t look very p r o m i s i n g
§ t e a m s will b e ready to m o v e o n w h e n they h ave ‘unpacked’ all the
proposals that c a n b e t h o u g h t of, without yet a g r e e i n g or
d i sa g re e i n g with a n y of t h e m
§ it m a y b e that as t e a m s explore proposals, they m i g h t not yet
u n d e r s t a n d e a c h others situation a n d so m a y n e e d to revisit the
differentiation p h a s e
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Exploration Phase
D O N ’ T R U S H T O E X P L O R A T I O N
§ better negotiators t e n d to prepare in w h a t m i g h t b e
re g a rd e d as a disorganized way.
Do you agree?
§ n egotiatin g o n e issue at a ti me is not c o n d u c i ve to
creating value b e c a u s e e a c h issue te n d s to g e t locke d
a w a y so little opportunity to create value b y linking o n e
issue to another
Do you agree?
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Exploration Phase
D O N ’ T R U S H T O E X P L O R A T I O N / C R E A T I N G S P A C E IN
B A R G A I N I N G MIX
§ negotiation is wh e re two parties w h o h ave
differences n e e d to settle
§ negotiators still h ave their differences to resolve but
not rushing in allows them to b e m o r e o p e n ab ou t
possible solutions- creating s o m e s p a c e in the
b a r g a i n i n g m i x for n e w solutions to e m e r g e .
Exploration Phase
H A N D L I N G T H E P R O C E S S
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Exploration Phase
M A N A G I N G E X P L O R A T I O N T A S K S
§ in this p h a s e w e a t t e m p t to create as m u c h value as possible in
order to increase the likelihood of r e a c h i n g a n a g r e e m e n t a n d to
m a x i m i z e the benefit of b o th parties from the a g r e e m e n t
§ value creation involves w o r k i n g a n d re workin g to e x p a n d the
b a r g a i n i n g m i x in the light of u n d e r s t a n d i n g the other party’s
interests
§ parties will dis cuss priorities a nd brainstorm other combinations of
tradeoffs
§ the party’s will form opinions on these
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Exploration Phase
M A N A G I N G E X P L O R A T I O N T A S K S
§ the option c h o s e n will b e the o n e that best addresses the
interests a n d provides the greatest a m o u n t of value to b o th
parties
§ requires collaboration a n d creativity, as well as patience to
explore possibilities rather t h a n a tte mp ts at c o n v i n c i n g the
other party
Exploration Phase
M A N A G I N G E X P L O R A T I O N T A S K S
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Exploration Phase
M A N A G I N G E X P L O R A T I O N T A S K S
* there m a y b e considerable pressure to k e e p o n b e i n g creative
by s u g g e s t i n g possible n e w options for the other party to
consider …
§ b u t in fact it is probably m ore important to listen carefully to
the proposals others are m a k i n g
§ r em emb er you only really w a nt o b e exploring options o n c e
you better u n d erstan d the other party- otherwise you will just
infuriate e a ch other- you m a y also reveal m ore t h an you w a nt
a bout your priorities.
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Exploration Phase
M A N A G I N G E X P L O R A T I O N T A S K S
§ negotiators m a y b e t e m p t e d to look to finalizing the a g r e e m e n t as
ti me or other pressures m a y b e b u i l d i n g u p b u t …
§ … negotiators sh ou ld stay in the exploration p h a s e as l o n g as
possible to find value a d d i n g solutions before m o v i n g to the
e x c h a n g e p h a s e wh e re the a g r e e m e n t is finalised
Class Exercise 2
Consider A2 case studies
Can you think of an example where a new issue was introduced
into the negotiation to expand the bargaining mix?
How did this happen?
For one of the examples, what were/or could have been
some of the negotiation options?
Some Negotiating Skills
Exploration Phase
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Some Negotiation Skills- Exploration Phase
A S S E S S I N G T H E C U R R E N T S C O P E O F T H E N E G O T I A T I O N
to assess the limits of a negotiation you could a s k yourself the
following questions.
§ w h a t are the other party’s u n d erlyin g interests?
§ is the s c o p e of the negotiation truly limited or is this a subjective
frame (limitation) presented b y the other party or b y you?
§ w h y m i g h t the other party b e limiting the negotiation?
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Some Negotiation Skills- Exploration Phase
T H I N G S T O A V O I D
§ don’t find fault in everyone else’s proposals- a n d especially
don’t interrupt t h e m to tell t h e m so
§ don’t tell everyone h o w reasonable a n d cooperative you are
§ don’t u se your proposal to s q u a s h s o m e o n e else’s-
§ don’t b l a m e others for not s e e i n g w h a t is n e e d e d to reach a n
a g r e e m e n t
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Some Negotiation Skills- Exploration Phase
H A N D L I N G S U G G E S T I O N S C O N S T R U C T I V E L Y
§ w h e n a proposal is m a d e , h e l p to ‘unpack’ it ( s u m m a r i s e a n d
explain it) b y u s i n g s o m e following questions …
§ not sa yi n g ‘no’ to it, e ve n if you disagree with it
§ fin d in g s o m e aspect of the proposal a n d talking ab ou t w h a t it
m i g h t m e a n for b o th parties
§ leaving the proposal so it c a n b e revisited later rather t h a n
rejecting or e ve n a c c e p t i n g it
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Some Negotiation Skills- Exploration Phase
H A N D L I N G U N H E L P F U L S U G G E S T I O N S
H o w d o you say ‘no’ to a proposal without actually sa yi n g
‘no’?- in other words w h e n the proposal still n e e d s to b e left
o n the table w h a t c a n you/your t e a m d o ? …
§ talk a bout a n aspe ct of the proposal- for example, explaining
where it causes you difficulty
§ tell as story of a n instan ce in w h i c h w h a t is b e in g proposed
did not work out well
§ a sk the proposer h ow they th in k it will h elp you to
achieve your goals?
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2
Some Negotiation Skills- Exploration Phase
C R E A T I N G V A L U E IN A P R O P O S A L
H ere are s o m e useful questions to a s k a b o u t a proposal …
§ in w h a t w a y d oes this proposal a d d value?
§ h o w m u c h value d oes it a d d ?
§ for w h o m d oes it a d d value?
§ w h e n will the value accrue?
§ w h a t conditions are necessary for it to accrue?
§ w h a t are the risks?
§ w h a t c a n w e d o to improve this proposal?
Class Exercise 3
Think of an Informal or social situation in which you, as part
of a group, have had top come up with some ideas to plan
something, such as what to do over the coming weekend
What helped the group reach a good
decision? What didn’t help?
Which of these helpful actions could realistically be used in a
negotiation?
How might you manage a situation where a negotiator is doing
something that does find a better solution?
OPS 938: Negotiation Theory and Practice for Project Management T 3 2 0 2 2

Topic	Reading
1	Emergency Evacuation Procedures Subject Overview Introduction to Negotiation	Chapter 1
2	About Negotiators	Chapter 2
3	Establishing what can be achieved	Chapter 3
4	Strategically managing the Negotiation Process	Chapter 4
5	Differentiation: Managing the Exchange	Chapter 5
6	Exploration: Finding better outcomes	Chapter 6
7	Exchange: getting to an agreement	Chapter 7
8	Strategically managing deadlocks Overcoming deadlocks through Mediation	Chapter 8 & 9
9	Negotiation in practice	Chapter 10
10	Cross cultural negotiators	Chapter 13

 

Next Lecture

Subject overview
OPS 938: Negotiation Theory and Practice for Project Management Consultation Classes
Will be Online from weeks 1-4
SYD Level 10 SR10 1, 3, 5, 7, 9
Woll 24 G03 2, 4, 6, 8, 10
I n t r o d u c t i o n to N e g o tia tio n
CloserTitle
Thank you