To complete your Assignment, create a plan of action that builds upon the conflict situation. Please address the following: ?

BACK TALK Pulling back the curtain on 'getting to yes' Best practice: Negotiating from a win-win perspective

r • ' by David S. Kaczmarek, FAHRMM, CMRP I

O ne key skill set of a supply chain executive or anyone from the pur- chasing side of the supply chain

is the ability to negotiate. There are few successful supply chain professionals who do not possess this skill.

But there is a differentiator that separates the good negotiators from the best. That is the ability to negotiate from a "win-win" perspective. Best practice supply chain executives have mastered this skill and use it frequently.

Win-win negotiation is one of those concepts that appears self-evident. Isn't it obvious? If I negotiate so that 1 get some or most of what I wanted and you get some of what you wanted, we hoth win, right? The negotiation is successful, right? Unfortunately, that is the understanding most people – those who haven't studied the concept – have of win-win negotiation. The reality is far different.

The concepts of win-win negotiation come from the Harvdrd Negotiation Project and date back to the 197()s. This is not a new concept by any means. The theory behind the concept is that negotiations do not have to be a zero sum game. Most negotiations are adversarial, where eacli party tries to get tbe other party to move towards their position at the expense of the other party's position.

Instead, win-win posits that by following five basic principies the parties can both get more value than either expected to get through the normal adversarial process. It's not that we both get some of what we wanted – it's tliat we both get more. That is the magic of win-win.

The five principles of win-win negotia- tion are: • Cooperation. This is the guiding principle

from which all tlie others flow. Tlie parties must position themselves as partners in a search for a solution that is beneficial to hoth. While there are techniques that an experienced negotiator can use to engen-

der this cooperative spirit, at some point it must exist for win-win to be successful.

• People, not problems. People must be separated from the problem. Each negotiation is conducted at two levels, the substantive and the interpersonal. We cannot let our egos and need to win get in the way of finding a solution. By understanding the normal human emo- tions and drivers and developing an empathy with the other party, we can move the negotiation, along. By the end of the negotiation the relationship between the parties should be better than when it began.

• Interests, not positions. In most negotia- tions the sides take positions and try to get tlie other side to accept their positions. But each side has many interests that are driv- ing the positions. Wliile the positions they select will satisfy many of their interests, rarely will they satisfy all or even most. In fact most of us don't even realize all the interests we have. By understanding your interests and discovering the other party's interests we set the stage for the fourth principle.

• Creative options. This is where you brain- storm to find many different solutions that may satisfy both parties. In particu- lar, you look for small concessions from one party that will have greater value for the other. As each side gives up little things in exchange for big things the value to each grows.

• Objective standards. Finally, win-win negotiators look for fairness. This can be demonstrated by pointing to fair standards – things that are independent of will and both legitimate and practical, and using fair procedures – those that both parties agree treat them both equally, Tliese basics of win-win negotiation are

fairly simple. To learn more 1 encourage you to read the original book on the subjet t, "Getting to Yes: Negotiating AgreemenI Without Giving" by Roger Fisher and Wil liam Ury (1981). The follow-up book by William Ury, "Getting Past No: Negotiatinj; With Difficult People" (TWl) will give yon even more insight.

But learningabout win-win is not the same as using it. This "simple" technique takes lots of practice to enable one to use it effectively. It can be a lot of work trying to negotiate from a win-win perspective, especially if the other party does not want to or just does not understand it. It may seem easier to revert back to a more comfortable styk Don't allov' this to liappen. The benefits of using win-win are just too substantial to ignore.

Whether you are trying to get the latest generationPETscanner, working with phy- sicians to lower the cost of spine implants. dealing with staff unrest or discussing attendance at a boy/girl party with your pre-teen, using win-win techniques will result in a better outcome. Join the ranks of the exceptional best practice negotiators. Learn – and use – win-win negotiation techniques. HPN

David S. Kaczmarek. FAHRMM, CMRr, is a Derry, NH-based director at Wellsprin-i Partners, a Huron Couíiilím^ Group Practice, Chicago. Kaczmarek has more thai 25 year– experience in healthcare admiiiii^tration ami material? management, including director positions at several hospitals and systems. He can be readied via e-mail at dkaczmarekióí huronconsiiltinggroup.com.

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WORKPLACE CONFLICT AND HOW BUSINESSES CAN

HARNESS IT TO THRIVE

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Maximizing People Performance

United States

CPP, Inc.

Corporate Headquarters 1055 Joaquin Rd Fl 2 Mountain View, CA , 94043 Tel: 650.969.8901 Fax: 650.969.8608 Website: www.cpp.com

DC Office 1660 L St NW Suite 601 Washington DC 20036 Tel: 202.887.8420 Fax: 202.8878433 Website: www.cpp.com

Research Division 4801 Highway 61 Suite 206 White Bear Lake, MN 55110

Customer Service Product orders, inquiries, and support Toll free: 800.624.1765 Tel: 650.969.8901 Email: [email protected]

Professional Services Consulting services and inquiries Toll free: 800.624.1765 Tel: 650.969.8901 Website: www.cpp.com/contactps Email: [email protected]

Asia Pacific

CPP Asia Pacific (CPP-AP) 369 Royal Parade Fl 7 P.O. Box 810 Parkville, Victoria 3052

Australia Tel: 61.3.9342.1300 Email: [email protected]

Beijing Tel: 86.10.6463.0800 Email: [email protected]

Hong Kong Tel: 852.2817.6807 Email: [email protected]

India Tel: 91.44.4201.9547 Email: [email protected]

Malaysia Tel: 65.6333.8481 Email: [email protected]

Shanghai Tel: 86.21.5386.5508 Email: [email protected]

Singapore Tel: 65.6333.8481 Email: [email protected]

Mexico

CPP, Inc Toll free: 800.624.1765 ext 296 Email: [email protected]

Maximizing People Performance

In our culture, we reflexively tend to think of the term “conflict” in the negative.

When we discuss conflict in the business world, we speak of it (often unwittingly)

as a diminishing force on productivity, an ill that only compounds the difficulties of

a job, and an element that needs expunging if companies are to achieve their goals.

Normally seen as the byproduct of a “squeaky wheel” rather than a natural derivative

of business itself, conflict is a force that causes short-term anxieties, and many view

“fixing” ongoing conflict as synonymous with “eliminating” it.

CPP, Inc. commissioned this research in partnership with OPP, Ltd. in Europe and Fellipelli in Brazil, to shed light on the nature of workplace conflict – defined for the purposes of this study as any workplace disagreement that disrupts the flow of work. Studying workers in nine countries, our goal was to examine how different cultures view conflict; the ways they react to it, its short- and long-term impact on individual and company performance; and what (if any) correlations can be drawn between reactions and results both positive and negative.

The study confirmed our long-held assertion that the aforementioned perceptions of conflict can be too dog- matic and that understanding conflict requires a more nuanced approach. Indeed, ineffectively managed con- flict is costing businesses millions of dollars per year. Yet conflict has a bounty of positive potential, which if harnessed correctly, can stimulate progress in ways harmony often cannot. Ultimately, we found it would be prudent for members of the workforce to rethink conflict’s role in the workplace and the many assumptions made pertaining to it.

WORKPLACE CONFLICT AND HOW BUSINESSES CAN HARNESS IT TO THRIVE

FOREWORD by Jeff Hayes, CEO, CPP, Inc.

OPP® is one of Europe’s leading business psychology firms. We work with multinational organiza- tions, including more than half of FTSE 100 companies, in some 25 countries. Our products power the offerings of business schools and consultancies that use our tools with industry-leading companies, globally. OPP’s world-class products and training, and our focus on quality and integrity, are the foun- dation for OPP’s strong reputation. As CPP’s European distributor we have a portfolio of brands which is second to none. Understanding people is the key to success, because any business strategy is ultimately only as good as the interpersonal relationships through which it’s executed. That’s why our clients value OPP’s psychology expertise – as well as our commitment to service and partnership.

Fellipelli: Diagnostic Tools and Organizational Development fosters people’s professional and personal development, offering diagnostic tools and solutions that help promote employees’ increased aware- ness and effective performance enhancements on the job. We provide assessment and diagnostic processes including design of competencies, process and method-based design, competency-based assessment, 360º feedback, organizational climate surveys, engagement surveys and opinion sur- veys. To train and develop professionals, we conduct workshops on a wide selection of topics includ- ing high performance teams, leadership, conflict, communication, negotiation and change. In order to attract and retain employees, we offer programs focusing on career management, performance management, change management, competence-based management and succession. Fellipelli is the exclusive distributor of MBTI®, FIRO-B®, Strong, TKI, CPI 260® and MBI assessments in Brazil.

® MBTI, Myers-Briggs Type Indicator, Myers-Briggs and the MBTI logo are registered trade marks of the Myers-Briggs Type Indicator Trust. ® FIRO-B, the FIRO-B logo, California Psychological Inventory, CPI and CPI 260 are registered trade marks of CPP, Inc. ® Strong Interest Inventory is a trade mark or registered trade mark of CPP, Inc. in the United States and other countries. ® The CPP logo and Davies-Black are registered trade marks of CPP, Inc. ™ The TKI logo is a trade mark of CPP, Inc. ® OPP is a registered trade mark of OPP Ltd. © Copyright CPP, Inc., 2008

Since its founding in 1956, CPP, Inc., has been a leading publisher and pro-

vider of innovative products and services for individual and organizational

development, supplying reliable training solutions to businesses of all sizes,

including the Fortune 500. The company’s hundreds of offerings have been

used by millions of individuals in more than 100 countries, in more than 20

languages, to help people and organizations grow and develop by improving

performance and increasing understanding.

Among CPP’s world-renowned brands and services are CPP Professional

Services; the Myers-Briggs Type Indicator® (MBTI®), Strong Interest

Inventory®, Thomas-Kilmann Conflict Mode Instrument (TKI), FIRO-B®,

CPI 260®, and California Psychological Inventory™ (CPI™ 434) assessments.

Maximizing People Performance

First and foremost, workers at all levels must learn to accept conflict as an inevitable part of their work environment – the study found that an overwhelming majority (85%) of employees at all levels experience conflict to some degree. Furthermore, we found that U.S. employees spend 2.8 hours per week dealing with conflict, equating to approximately $359 billion in paid hours in 2008.1 The question for management, there- fore, is not whether it can be avoided or mitigated; the real concern is how conflict is dealt with. If managed improperly, businesses’ productivity, operational effectiveness, and morale take a major hit, as evidenced in our finding that 27 percent of employees have witnessed conflict morph into a personal attack, while 25 per- cent say that the avoidance of conflict resulted in sickness or absence from work.

On the other hand, when channeled through the right tools and expertise, conflict can lead to positive out- comes, such as a better understanding of others, improved solutions to problems or challenges, and major innovation. Roughly three quarters of workers reported positive outcomes that resulted from conflict – results that in all likelihood would not have been produced if conflict was not initiated.

For more than five decades, CPP has consulted with companies of all sizes and in all industries. Our experience concurs with the results of this study, which show that the most common denominator to successful conflict resolution is formal training. Countries like the US and Brazil, who report the highest levels of conflict manage- ment training, also observe the highest amount of positive outcomes from conflict. Conversely, countries that report the lowest levels of training report the lowest amount of positive outcomes. We have found, further- more, that training is most effective when it includes the use of psychometric instruments and an increased understanding of personality – the number one cause of workplace conflict.

Despite this, however, our most striking – and alarming – finding was that the majority of employees have never received conflict management training. Furthermore, our concern is magnified by the discovery that stress and workload – two factors certain to increase in a dynamic economy – are the second and third most common causes of conflict. Companies, therefore, that choose to ignore conflict management are risking exposure to a myriad of negative consequences which may dramatically diminish bottom-line performance. On the other hand, organizations that implement effective strategies for dealing with conflict will position themselves for tremendous gains in the years to come.

1 Based on average hourly earnings of $17.95, seasonally adjusted, non-farm workers. Bureau of Labor Statistics, May 2008.

THE RESEARCH

This research project was carried out in May 2008 and analyzed workers’ attitudes about conflict. It questioned 5,000 full-time employees in nine countries around Europe and the Americas: Belgium, Brazil, Denmark, France, Germany, Ireland, the Netherlands, the United Kingdom and the United States. CPP commissioned this research in partnership with OPP1 in Europe and Fellipelli2 in Brazil.

1 OPP, Ltd. One of Europe’s leading business psychology firms. 2 Fellipelli. One of South America’s leading business psychology firms.

Our study found that the majority of employees (85%) have to deal with conflict to some degree and 29% do so “always” or “frequently.” In Germany this latter figure jumps to 56%, while employees in Ireland (37%) and the US (36%) also spend a significant amount of time managing disputes.

The level at which most conflict is observed is between entry-level/front-line roles (cited by 34% of respondents), but conflict also exists at the most senior levels: one in eight employees (12%) say that disagreements among their senior team are frequent or continual.

The primary causes of workplace conflict are seen as personality clashes and warring egos (49%), followed by stress (34%) and heavy workloads (33%). Culture also plays a part in the perception of causes: as Brazilian workers are more likely to see a clash of values as a major cause of conflict (24%). In France, 36% of employees saw a lack of honesty as a key factor, compared with a global average of 26%.

Unsurprisingly, poorly managed conflicts have a cost attached to them: the average employee spends 2.1 hours a week dealing with conflict. For the US alone, that translates to 385 million working days spent every year as a result of con- flict in the workplace. One in six (16%) say a recent dispute escalated in duration and/or intensity, only 11% of those surveyed have never experienced a disagreement that escalated.

Various negative outcomes arise from conflicts. 27% of employees have seen conflict lead to personal attacks, and 25% have seen it result in sickness or absence. Indeed, nearly one in ten (9%) even saw it lead to a project failure. 41% of employees think older people handle conflict most effectively, so life experience evidently helps people become more effective. The skill of leaders in this regard is the key determinant, however. Seven out of ten employees (70%) see managing conflict as a “very” or “critically” important leadership skill, while 54% of employees think managers could handle disputes better by addressing underlying tensions before things go wrong.

However, there is an evident discrepancy between how well managers think they handle conflict and how well they actually do: a third of managers (31%) think they handle disagreements well, but only 22% of non-managers agree. Furthermore, nearly half of non-managers (43%) think their bosses don’t deal with conflict as well as they should, compared to only 23% of managers who share this view.

Training is the biggest driver for high-quality outcomes from conflict. Less than half (44%) of all those questioned have received training in how to manage workplace conflict. This figure rises to 57% in the US and 60% in Brazil. Moreover, 72% of Belgian workers and 73% of those in France have had none.

Where training does exist, it adds value: over 95% of people receiving training as part of leadership devel- opment or on formal external courses say that it helped them in some way. A quarter (27%) say it made them more comfortable and confident in managing disputes and 58% of those who have been trained say they now look for win–win outcomes from conflict.

EXECUTIVE SUMMARY

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Most people work in relatively incestuous industries and even if you ultimately leave a job as a result of failure to resolve an issue, it’s unlikely your reputation won’t at some point follow you into the next organization. If you’ve ever broken something of value, remind yourself how you felt when you awoke next morning – and avoid repeating that same mistake.

5 Know what you don’t like about yourself, early on in your career

We often don’t like in others what causes us discomfort in ourselves, so self-awareness is a key asset for a lifetime of effective conflict management. Completing a psychometric inventory5 and receiving feedback from a trained profes- sional is a great way to accomplish this, and is something you can revisit in many situations, throughout your career. Write down five traits that rattle you when see them in others, and be aware that these are trigger points for you.

Other forms of “transference” include becoming energized about an issue because a separate irritating event has oc- curred and you have not yet processed it properly, or because it reignites destructive feelings from the past. It’s pos- sible, also, that at the root of your frustration with an individual now is the fact that they remind you of someone else with whom you’re already angry. In relationships where egos routinely clash, certain reactions can become habitual and take over even before you are aware of them.

So, take time to ask yourself why this issue is so important to you and whether the emotions you’re feeling are truly appropriate to this particular, present situation. If all else fails, ask another person to mediate – preferably someone who’s trained and impartial.

5 The TKI instrument – great for identifying your preferred conflict handling style and for learning alternative techniques.

The FIRO-B® instrument – great for revealing discrepancies between what people want versus what they ask for.

The MBTI® instrument – great for appreciating individual differences and working with them.

Win–win is the ideal solution to any problem, and this approach can therefore be seen as a great goal: allow- ing both you and the others involved to meet your needs. Nonetheless, there are drawbacks: like all teamwork, collaboration relies upon trust and communication. Moving to collaboration without having this base will be very difficult. A second drawback is that collaboration takes longer. Those who rely on this approach will find that even small decisions can take a long time, although in the long term working with someone that you trust becomes quicker and more efficient.

COLLABORATION

85% of people change the way they approach conflict over the course of their working lives; they become more proac- tive and take it less personally as a result of experience.

Among all employees, 76% have seen conflict lead to a positive outcome, such as better understanding of others (41%) or a better solution to a workplace problem (29%). This figure rises to 81% and 84% in the US and Brazil, respectively – the countries where training is most common. Belgium and France, where employees experience the least training, also have the lowest incidence of positive outcomes. This shows a clear link between training in conflict management and conflict’s impact as a catalyst for positive change.

Our study demonstrates that destructive conflict is not something organizations anywhere should accept as an inevitable feature of working life. If organizations invest in building the awareness of self and others on which better relationships depend, they will see the energy created by interpersonal friction generate sparks of creativity, rather than consuming flames. HR, leaders, and employees must all accept their responsibility for becoming competent conflict managers.

COSTS TO THE ORGANIZATION

Time is Money. There are a variety of direct costs to the organization associated with poorly managed conflict, includ- ing, in the worst cases, the loss of customers and good employees. One that is visible to everyone is the time taken to successfully resolve issues. Time that would be better spent on accomplishing work and achieving goals is instead used to manage disagreements and smooth ruffled feathers, although where the outcome is wholly positive this might be seen as an investment.

Our survey found that, on average, each employee spends 2.1 hours every week – approximately one day a month – dealing with conflict in some way (being involved in a disagreement, managing a conflict between co-workers, etc).

For the US alone, that translates to 385 million working days spent every year as a result of conflict in the workplace. In Germany and Ireland, where the average time spent managing conflict rises to 3.3 hours per week, that figure is an even higher proportion of available working time.

In some organizations, the situation is worse still: one in ten respondents say they spend six hours a week or more dealing with conflict. It is also a major drain on the resources of HR departments: half of the HR workers questioned (51%) spend between one and five hours a week managing disagreements.

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TOP TIPS FOR INDIVIDUALS AND LEADERS

1 Recognize that one size does not fit all

Using the same approach to conflict in every situation will not get you the best results; different circumstances warrant dif- ferent approaches, and the law of diminishing returns applies. It’s important to weigh the best outcome you might achieve against the time needed to get you there. Does the disagreement really merit the work involved in collaboration?

While a “win–win” approach might eventually ensure you’re both happy with where you end up, some issues may be better and more quickly addressed through your offering concessions, agreeing to compromise – or simply avoiding disagreement entirely. You will almost certainly have a preferred style of handling conflict, to which you will default. The trick is to identify this, and question whether it best suits the situation as you approach each issue.

2 Seek to understand underlying emotions

We have a mental habit of assuming that we do good things because we are trying to be good and do bad things be- cause situations left us no choice. However, when it comes to others, we tend to assume that they do good things as a consequence of the situation, and do bad things because of who they really are. So it’s essential to dig beneath the surface of the position the other party is taking to get to their genuine concern and their needs.

What you see in your “opponent” may not be a true representation of how they are actually feeling inside. You can’t ex- pect to penetrate their psyche, particularly when you may already be at loggerheads, but you can offer them the chance to see beyond your own surface impression, and the chances they may reciprocate are good. Many skilled negotiators share thoughts and rationale, but most warring parties forget even to do this much.

But there’s more. Explaining your feelings may be difficult, but can create the kind of breakthroughs that strengthen relationships in the long term. So take time to spell out your personal needs from the situation and the emotional impact it has on you. Use “I” statements, and don’t attribute blame. Invite the other party to do the same. Worse case, you’ll have raised the quality of the dialogue to a level of honesty that takes much of the heat out of the situation.

3 Don’t be seduced by “competitive arousal”

This is a term coined by Deepak Malhotra of Harvard Business School, and it describes vividly a state in which the desire to “win at any cost” dominates. As Malhotra suggests: “When we see our [adversaries] not just as opponents but as en- emies, we often lose sight o

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