Negotion Skills for Examiners - Part 2

Sunday, January 19, 2003 | 0

In the first article of this series we reviewed the first two important fundamentals of successful negotiation, focusing on the target and managing information successfully. Now we'll go over the remaining fundamentals.

Position Your Theme Advantageously

This element is related to the first two elements, because you need to know what your target is and be able to manage your information.

Ask yourself, "What key facts create the most favorable theme?" You need to practice: Define your position if talking to the insured; define your position if talking to the opposing party. Recite those key facts, and prepare your most favorable theme. Negotiations occur on a live time basis. Know your facts, practice delivering them in them most favorable theme.

You need to review prior negotiations, and determine if previous negotiations occurred, whether your theme statement/strategy will still work? Also identify one or two key facts to emphasize during negotiations to support your position. Simplicity will give you power, and often there are only a couple of key facts that really place your position on top. This also makes it easier for you to argue your position since you will not have so much to remember, or become confused with.

Know and Maintain Your Power

Here are the key questions to ask yourself:

- What are your strengths in this negotiation?
- What are the other negotiator's strengths in this negotiation?
- What pressures does the other negotiator face?
- What can you do to increase your power and/or use it more effectively?

Answer these questions for yourself and you will be more prepared not only to defend your position, but be on the offensive and take advantage of any weaknesses that surface during the negotiation process.

Emphasize Needs Over Wants

One of the key elements to negotiations is distinguishing between needs and wants. Your prior preparation is critical to this analysis, as there are significant differences between needs and wants. Needs are your leverage, wants work towards the opposition's favor.

Review your facts:

What are the underlying business and personal needs of the injured worker?
What questions do you need to answer to uncover those needs?

In most workers' compensation cases, there is an underlying motivation beyond money. Most often it simply is to get the case over with, get medical treatment, or just get back to work. Some times there are other more complex motivations such as retribution or animosity. So examine the opposing party's motivation: Other than money, what does the injured worker hope to gain from the settlement? And perhaps more importantly, what can you provide to satisfy those wants?

Concede Strategically

Negotiations are a two way street - you cannot have it all and there must be room to give. This is concession. Your opening offer must leave room to make concessions. The other side knows this too - What is the other negotiator's concession strategy likely to be?

In addition, negotiations go back and forth. At each stage there must be concession. Until you reach an agreement, if you cannot concede something then the negotiation will stop at that stage. So think: What will your concession strategy be?

You send a message through strategy: Will your message help effectuate a prompt, fair and reasonable settlement?

Establishing the Correct Settlement Range

You came to the table prepared, you had established what your acceptable range of settlement will be. Remember your range--aim for the middle and do not exceed the top end (walk-away) of your settlement range unless new facts surface.

Plan a concession pattern (see above) but stay flexible to change as negotiations progress. Make concessions in small amounts that will lead to settlement within your target amount. Be creative--play to the injured worker's motivations other than money.

Use All Three Dimensions of Claims Negotiation

Competitive: The parties assert their positions and set boundaries.

Collaborative: The parties attempt to find common ground, build their relationship, and discover mutually acceptable solutions.

Creative: The parties look for ways to break impasses and find even better solutions than those they have already explored.

Here is a summary of the negotiating skills to remember:

Remember your Targets
- Issue resolution
- Settlement
- Case Closure
Relationship Behaviors/Helpful Hints
- State Your Boundaries
- Make Assertions
- Frame Your Questions - Open or Closed
- Test and Summarize
- Propose Conditionally
- Make Trades

Countering Negotiation Tactics
- Recognize the tactic
- Think before you respond
- Repeat your expectations
- Remember behaviors & motivators
- Keep your cool

Sources of Power Matrix
- Knowledge of the other party
- Situational power
- Personal power
- Informational power
- Planning power
- Organizational power

Author, Cyndi Koppany, is Director of Corporate Training for Cambridge Integrated Services Group, Inc. E-mail her at ckoppany@earthlink.net.



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