Negotiation

ASK ☞ MEDIOCRITY ☞ WIN-WIN

Are these events eligible for negotiation?
Deciding Deciding on
Driving where to eat chore
with friends assignments

Asking boss Taking the

Job Interview
for a raise next vacation

Child to bed War Self

 When you`d lose the
farm
When you are sold out

When the demands are

unethical
When you don’t care

When you don`t have

time
When waiting would
improve your position

When You shouldn’t When You are not

prepared
Negotiate
For A Few
Dollars
More
Key learning

• ‘Splitting the Difference’ not the only way

• Importance of tangibles (money) as well as
intangibles (relationship, trust, feelings)
• Repeat interactions with the same person
• One`s strategy is not the same as one`s style
• Ethics in Negotiations
Negotiation Competencies
Effective Effective A sense of
speaking listening humor

A positive Self-
Respect
attitude confidence

Emotional
Persistence Creativity
intelligence

Patience
Establishing
Your BATNA
(Best
Alternative
to No
Agreement)
Bottom
Line Vs
Batna
Alternatives

Know Your BATNA

Take steps to improve your

BATNA

Know Their BATNA

Anticipate and Prepare

Session 2
Getting Prepared

Non-
Settle for
negotiable

Personal
Outcome
Preparing Preparation
to
Negotiate
Identifying Your WAP (Walk
Away Price)

WAP
Identifying Your ZOPA (Zone Of Possible Agreement)

Opponents
WAP...
ZOPA

Your WAP…

Ideally end up with a price closer to their WAP than yours

 Deepa (Seller)
WAP - $1000

1000
Sale of a
Laptop
1500

Emad (Buyer) WAP

- $1500
Anchoring
Make the Opening Offer
If the Opening Offer is Bad

You have a product and are willing to sell it for USD.3000/-.

The other party opens the offer with USD.1000/-, which is a
terribly bad offer. Which would be your best response:
• It has been a pleasure knowing you. Let us stop all
negotiations and part as friends.
• What??? That’s ridiculous. How dare you undervalue my
product so much.
• Tell me where did you get the USD.1000/- from? On what
basis have you stated that?
• Interesting. If you would know anyone selling products
similar to mine in terms of quality, I will buy the entire stock
for USD.1000/-.
If the Opening Offer is Good

Continuing from the earlier example, you are willing to sell your
product for USD.3,000/- and this time other party offers you
USD.3,200/-; an offer that is too good to be true. How would
you respond:
I.Okie dokie. We have a deal.
II.Well, appreciate your offer. I was hoping for something a bit
better than that. How about an additional 10% and it’s a done
deal!
III.Hey, don’t you think you are offering me bit too much. Let’s
close it at USD.3,000/- and we are good.
Hamilton Real
Estate Case
Objectives
• Start Building Negotiation Framework
(Think, Prepare & Execute
systematically)
• Build a Negotiation Tool Kit of
strategies and tactics
• Forum for learning from experience
De-brief
 If you had to describe this
negotiation experience in
ONE word, how would
you describe it?

Debrief Good or Bad?

Results
Choices
Pearl Investments
(Assess Your BATNA &
WAP)
 $41.8M
Reservation
Value or Walk $43.7M
Away Price

$42.75M
Estate One`s WAP or RV

• How many of you know that the Buyer was going to

use the land for Commercial Development?

Defence Against Deception

• Ask direct questions and listen for a non- response
• Propose a ‘contingency contract’
• (How would the buyer like to be perceived?)

BATNA – A different residential R/E project for

$6Mprofit
• Walk Away Price: $60M
$60M (Buyer WAP)

ZOPA
$17.35M

$42.65M (Seller WAP)

What kind of things should Pearl Investments do
to offset information disadvantage?

Exhaust sources of Focus on information

information about the BUYER

Ask questions and Propose contingency

look for ‘non- contracts to diagnose
responses’ Buyer`s real intent
Move from

“How can I Convince

them?”

to

“How can I learn more?”

 Integrative

Types

Distributive
 • Fixed Resources to be divided
• Pursuit of own goals at the expense of others
• Short term focus
Competition
• Secrecy and defensiveness
(Distributive
Bargaining) • Committed to position

• Variable amount of Resources

• Pursuit of Joint goals
• Long term goals
Collaboration
• Openness, active listening, joint exploration
(Integrative
Bargaining) • Make effort to find mutually satisfying solutions
 Parties Interests

Value Barriers
Questions
For Effective
Negotiators
Power Ethics

BATNA
Session 3
Separate People Focus on Interests Generate Use of Standards
from Problem not Positions Possibilities
Separate People from Problem

Concern for
Substance

Concern for
the
Relationship

Separate Seek Interest Generate Use of

People from Options Standards
Problem
Perception

How you see the world Seeing the situation as Understanding them is Don’t deduce their
depends on where you the other side sees it not same as agreeing intentions from your
sit with them fears
 Focus on Interests not Positions

Separate People Focus on Interests Generate Use of Standards

from Problem not Positions Possibilities
Position Vs. Interest

Position Interest
Things you say Understanding
you want motivation

Needs, desires,
Demands
concerns

Terms and Fears,

conditions aspirations
 Ask Why & Why Not

Acknowledge their interests

Identifying Put problem before your answer

Interests
Look forward not back

Be concrete yet flexible

 3D Negotiation

• David Lax & Sebenius James - HBR

The Three Dimensions of
Negotiation, HBS
Focus Common Barriers Approach

1-D Tactics Inability to read body Act “at the table” to

(people and processes) language, poor improve interpersonal
communication, cross processes and tactics
cultural nuances

2-D Deal design Lack of feasible or Go “back to the drawing

(value and substance) desirable agreements , board” to design deals
Contingencies (HRE) that unlock value that
lasts

3-D Setup Parties, issues, BATNAs, Make moves “away from

(scope and sequence) and other elements don’t the table” to create a
support a viable process or more favorable scope and
valuable agreement sequence
 Practice Mode
COMPUTER PLAYS

• always cooperate
• always compete
• grim trigger
• random
• grudge
• slow to anger
• slow to trust
• tit for tat

42
 Cooperate or Compete?

Range of strategies

Always Slow to Tit for Random Grudge Slow to Grim Always

cooperate anger tat trust trigger compete

43
 Influencing and Adapting
Types of strategies

RESPONSIVE RIGID
Grim trigger Always compete
Grudge Always cooperate
Slow to anger Random
Slow to trust
Tit for tat
44
Whom would you want to play?

45
 The Negotiator’s Dilemma

Are your best interests advanced by:

1. cooperating to create value, or . . .

2. competing to claim your share?

The challenge: managing that tension

46
 Adaptive Strategy for the Simulation

end goal: maximize your own earnings

means: a. promote cooperation

b. deter exploitation

learn: counterpart’s strategy/tendencies

influence: carrots, sticks, communication

adapt: observe and orient to what unfolds

47
 Interaction: a Dynamic Model

adapting influencing
(yourself) (them)

words/deeds/moves

learning
what? how?
when? cost?

48
 Practical Lessons

1. RECOGNIZE THE 2. BE AWARE OF YOUR 3. PROACTIVELY CHANGE

STRUCTURE OF THE GAME OWN BIASES AND THE GAME BY HOW YOU
TENDENCIES PLAY IT YOURSELF

49
Session 4
International Negotiations
Adapting To Cultural Differences
4 PHASES OF NEGOTIATION

1 2 3 4
Building a Exchanging Persuading Each Making
Relationship Information Other Concessions
and Reaching
An Agreement
 Case Illustration
1. Jack is the technical expert

2. Jack sets up a meeting with the Peter Chang (COO)

and his delegation of direct reports. He is supposed to
visit the production facility on Day 2.

3. He uses a translator for the meeting and starts by

saying “It’s a very important deal for my company and
I really want to make it work’

4. He delivers a professional presentation and asks for

any questions but there are none.

5. He is happy he has nailed the presentation. But next

day he learns from his translator that the Chinese
partner was actually very displeased with how the first
GOAL: Finalize the Deal day went.
 Exercise: What mistakes did Jack make?

DID NOT RECOGNIZE NO RELATIONSHIP TONE OF ASKING QUESTIONS

SENIORITY GAP BUILDING MOMENTS PRESENTATION
The Culture Model
Basic Assumptions

Norms &
Values
Artefacts &
Products
FOUR CULTURAL
THREADS
 Agrarianism

 Morality

 A pictographic language

 Weariness of foreigners
THE VIEW FROM BOTH SIDES
  Guanxi (Personal
Connections)
 Zhongjian Ren (The

ELEMENTS THAT Intermediary)

 Shehui Dengji (Social Status)

UNDERPINS CHINESE  Renji Hexie (Interpersonal

Harmony)

NEGOTIATION STYLE  Jiejian (Thrift)

 Mianzi (“Face” or Social

Capital)
International SKUTIS: NEGOTIATING PRODUCTION IN
Negotiations CHINA
 Manipulate co-operation, assertiveness and
defensiveness

Build trust over time

Proceed slowly

Chinese Chinese find it difficult to turn down offers

Negotiations
Silence

Produce guanxi

Good preparation
Neutralising • “ I do not want to be at the mercy of my
emotions. I want to use them, to enjoy
Emotions in them and to dominate them.” – Oscar
Negotiations Wild
Price is not always everyone’s interest

• The $100/- divide

• Most deals are 50% emotional and 50%
economics
 Lets discuss…

1. Why do we get stuck with emotions in

negotiations?
2. Share examples of some negative
emotions that you have experienced in a
negotiation?
3. When do your emotions spiral out of
control?
STRESS ANGER EGO

GRUDGE HURT SUFFERING

Stephen was looking at a photo. Someone
asked him, “Whose photo is that?”

He replied, “I don’t have any brother or sister,

but this man`s father is my father`s son.”

So, whose photo was Stephen looking at?

What is Intelligence?

Typically focused on

• Analytic reasoning
• Verbal skills
• Memory
• Judgment
What is Emotional
Intelligence?

SIMPLY PUT, A LIFE LIVED IN BLISS

The ability to recognize and manage

one`s and other`s emotions to move to desirable
outcomes.
EQ vs IQ
 4 Pillars of Emotional
Intelligence…
Intrapersonal Intrapersonal

Self Awareness Empathy

Self Management Social Relationships
Motivation
How is your
mood?
Emotional warm up
Method
PAUSE BEFORE YOU FOCUS ON YOUR
RESPOND CIRCLE OF CONTROL
Power of PAUSE

Stimulus PAUSE Response

Session 5
 Generate Possibilities

Separate People Focus on Interests Generate Use of Standards

from Problem not Positions Possibilities
 Redefine, recast or
reframe the
problem to create
Two win win alternatives
categories of
Alternative
Solutions
Problem is a given
Recast the Problem to
Generate Win Win

Buyer in UAE wants to purchase 20000 units of cups

at $3 each. Manufacturer is willing to sell as $4.5 each

- Payment terms
- Specifications
- Transportation
- Delivery date
- Quantity
- Risk and contract type
Two Weeks of Annual Leave
Generate Possibilities

How can both parties get what they want?

Expand The Pie
How can resources be expanded to meet the demands of both sides?

Logroll What are the things that may be low priority for me and high priority for the other and vice versa?

Use Non Specific What could I do that would make the other person happy and simultaneously allow me to get my way on
Compensation the key issues?

Cut The Costs of What can I do to minimize the other`s risks and costs so that he/she would be more willing to agree?
Compliance

What are the other's underlying needs and interests?

Bridging
What are my underlying needs and interests?
A Birthday Treat

You and your close friend have coinciding

birthdays and are planning to have a joint
birthday treat for 10-15 common friends

Person A – House Party is best

Person B – Going to a club or restaurant is
the best

You have 15 minutes to discuss and 10

minutes to consolidate and email me a
short synopsis (200 words) of which
technique you employed and what was the
solution. (mention both names in subject)
Five Golden Rules of Brainstorming
 Use of Standards

Separate People Focus on Interests Generate Use of Standards

from Problem not Positions Possibilities
Standards

Agree to Criteria in Use independent

Be willing to Justify
Advance of Evaluating standards to narrow
Personal Preferences
Options down range of solutions

Be Alert to the Influence Use sub groups to

Take Time Out to Cool
of Intangibles in evaluate complex
Off
Selecting Options options

Keep Decisions Tentative

Minimize Formality Until
Explore Different Ways and Conditional Until All
Final Agreements Are
to Logroll Aspects of the final
Closed
Proposal Are Complete
Prioritization Matrix

Objective 1 Alternative 1
Objective 2 Alternative 2
Objective 3 Alternative 3
Opportunities for Professional
Development

Global Design Conference

Product Innovation Conference

 Learn from experts Build my networks Time away from work Low cost

4 3 1 2

Global Design
Conference
9 10 3 1

4x9 + 3x10 + 1x3 + 2x1 = ? 79

Product Innovation
Conference 5 4 7 10
4x5 + 3x4 + 1x7 + 2x10 = ? 51
 Anticipate Decision making challenges
Manage Cognitive Biases
Sofia, a product marketing manager for a global cosmetics company, vividly remembers her
launch of a new product in Spain three years ago; it was her first big marketing success. When she
tries to extend a similar product in France, her efforts fail. While the strategy used for the Spanish
launch may have been a good starting point, her reliance on that previous success led her to
overlook critical differences in the French market.

1) Reliance on familiar experiences and past successes.

 Anticipate Decision making challenges
Manage Cognitive Biases
A company is using an outdated process to manufacture one of its products. However, the
production unit resists using an alternative process. Their resistance is driven more by their
familiarity with the process they are currently using and their reluctance to learn something new
than by the quality of the current process.

1) Reliance on familiar experiences and past successes

2) Affinity for status quo.
 Anticipate Decision making challenges
Manage Cognitive Biases
Shawna, a marketing manager for a retail group, searches the internet to find data supporting her
preference for focus groups in market research. She doesn’t pay attention to information that highlights the
limitations of focus groups and that supports other approaches.

1) Reliance on familiar experiences and past successes

2) Affinity for status quo.
3) Desire to confirm our opinions
 Anticipate Decision making challenges
Manage Cognitive Biases
Juan was heavily involved in developing a product that performed well in the market for a number of years.
In the past few years, sales of the product have flattened. Juan identifies with the product because of all the
work he invested in it, and refuses to consider retiring it.

1) Reliance on familiar experiences and past successes

2) Affinity for status quo.
3) Desire to confirm our opinions
4) Emotional attachments
Session 6 -
Negotiation Self
Assessment
Interpretive Grid
Tensions to Balance
Creating Value

Assertiveness

Empathy

Claiming Value
 Which are the most
important for the kinds of
negotiations you do?

How would you like to be

Discuss In seen by others?
Groups
What profile would you
like to see in people you
negotiate with?

How are the four

parameters related?
Creating or Claiming Value
Demeanour
MESO - Multiple Equivalent
Simultaneous Offers
 Through their discussions, three main
issues have emerged as ripe for
negotiation:
Hiring Salary (they haven’t discussed salary, but
Manager the manager would like to stay under
$110,000);
Wants a Telecommuting (the candidate has asked
Prized to work from home up to three days a
week, but the manager would like him in
Candidate the office more often);
Contract duration (the candidate wants a
one-year contract, but the company has
asked for a three-year contract).
Limiting the number of telecommuting
days is the manager’s top priority; she
isn’t sure which issue the candidate
values most.
 MESO

• Package A: $100,000; one remote workday

per week; three-year contract
• Package B: $95,000; one remote workday
per week; two-year contract
• Package C: $90,000; two remote workdays
per week; one-year contract
Correlation
TRUST – THE
SECRET
INGREDIENT
Conflict Management Style?
Collaborate
Compete
Creatively problem solve
Be a winner at any cost
so both parties win

Compromise
Split the
difference

Take what-ever you can

Build friendly relationships
get
Accommodate
Avoid
 Group Work– 20 minutes (4
slides)
• What are the Typical Actions demonstrated?
• What is the Intent for displaying the style?
• In which negotiation situations is it best for use?
• In which situations is it worst for use?

Collaborate
Compete
Creatively problem solve
Be a winner at any cost
so both parties win

Compromise
Split the
difference

Take what-ever you can Build friendly

get relationships
Avoid Accommodate
 Conflict Styles : Competing

Typical Actions
• Speaking forcefully and loudly on views/issues
with strong assertions.
• Argumentation/disagreement
• With holding information
Intent
• To win. There may be only two possible
outcomes..win/lose, and winning is important
on THIS issue. To achieve one’s goals.

My way or the highway!

 Defeat / Compete
• Is your interest in a good outcome overwhelming? That is,
it’s more important than maintaining an ongoing
relationship?
• Is this a fixed-pie situation where either you get what you
want or the other party does?
• Is this a one-off negotiation?

Collaborate
Defeat
Creatively problem solve so
Be a winner at any cost
both parties win

Compromise
Split the difference

Take what-ever you can get Build friendly relationships

Withdraw Accommodate
Conflict Styles : Avoiding
Typical Actions:
Silence or pretended confusion,
fatigue, disinterest
Yielding or leaving the scene,
the relationship or the
organization
Leave it alone…
Intent
To stay out of the conflict. To
protect oneself or others
To keep something insignificant
in perspective
 Withdraw / Avoid

• Can your needs be met without negotiating? Are the ends

not worth the effort of a full-blown negotiation?
• Is there more than one acceptable solution without having
to negotiate?

Collaborate
Defeat
Creatively problem solve so
Be a winner at any cost
both parties win

Compromise
Split the difference

Take what-ever you can get Build friendly relationships

Withdraw Accommodate
Conflict Styles : Accommodating
Typical Actions
To forgive and forget. To take
the blame. To apologize
Others’ input before you give
your own
Whatever you want…
Intent
To preserve the relationship
and avoid getting hurt
To solve conflict/tension
quickly
To please others to win
approval
 Accommodate

• Is preserving or enhancing the relationship very important?

• Are you willing to lose in order to maintain the relationship?
• Will you be negotiating over a period of time for a number
of things?

Collaborate
Defeat
Creatively problem solve so
Be a winner at any cost
both parties win

Compromise
Split the difference

Take what-ever you can get Build friendly relationships

Withdraw Accommodate
 Typical Actions:
• Trading what someone else
Conflict Styles: wants for what you want.
Compromising Splitting the difference

Intent
• To provide each side with a little
bit of winning to persuade them
to accept a little bit of losing
• To problem-solve and maintain
relationship

Let’s split the difference

 Compromise

• Is the solution intended to distribute resources or other

items of value?
• Is it difficult to decide whether to compete or
accommodate?

Collaborate
Defeat
Creatively problem solve so
Be a winner at any cost
both parties win

Compromise
Split the difference

Take what-ever you can get Build friendly relationships

Withdraw Accommodate
 Typical Actions

• To take the time to listen

and include all views
• To get all the parties fully
involved in defining the
Conflict Style: conflict and involved in
Collaborating solving an issue and
implementing the solution

Two heads are better than one!

 Collaborate

• Is the outcome just as important as the relationship?

• Do you need to do more than split the difference to ensure
everyone is satisfied?
• Do you have the time required to find creative solutions that
meet both parties’ needs?

Collaborate
Defeat
Creatively problem solve so
Be a winner at any cost
both parties win

Compromise
Split the difference

Take what-ever you can get Build friendly relationships

Withdraw Accommodate
Gender and Negotiation
According to Kolb 1. Relational view of others
and Coolidge,
2. Embedded view of agency
women & men
approach 3. Control through
empowerment
negotiations in 4
4. Problem solving through
fundamentally dialogue
different ways:
Effective Communication
In Negotiation
Lecture 7
What is Communication?
What is communication?

Meeting
Exchange
Minds

Getting Right
Responses
 Clear Complete
4 Cs of
Communication

Concise Courteous
Mehrabian Research

7% 38% 55%

Body
Words Voice
language
 Communicate
What is About
Offers and
Counteroffers
Process
communicated
during Information Information
negotiations about about
Outcomes Alternatives
Observations from
this Exercise

A simple question
• Led to more focus
• Brought more attention
• Shut off unnecessary thoughts
• Increased observation power
Why Don’t We Ask Better Questions?
Barriers To Effective Questioning

CULTURE EDUCATION EFFICIENCY V/S REDUCE OUR

EXPLORATION MENTAL LOAD
ARE QUESTIONS
BECOMING MORE
VALUABLE THAN
ANSWERS?
What Makes
a Question
Powerful?
Types of Questions
Closed ended questions (no further discussions,
only one alternative)
• “Do you want Rice or Pasta for Dinner”
• “Was the movie good or bad?”

Open ended questions (stimulates discussion,

reflection and conversations)
• “ How did you like the movie?”
• “What do you feel about this conference?”
The Architecture of Powerful Questions

Construction

Assumptions

Scope
 The First Dimension
The Construction of a Question
The First Dimension
The Construction of a Question

More Powerful

WHO WHAT WHEN

WHERE WHICH
HOW WHY

Less Powerful
 More Powerful

1. Are you satisfied with our working relationship?

WHY 2. When have you been most satisfied with our
working relationship?
HOW 3. What is it about our working relationship that
you find most satisfying?
WHAT 4. Why might it be that that our working
relationship has had its ups and downs?
WHO, WHEN, WHERE

WHICH, YES/NO QUESTIONS

Less Powerful
The Second Dimension
The Scope of a Question
Examples

How can we best manage How can we best manage How can we best manage
our work group? our company? our supply chain?
 The Third Dimension
The Assumptions Within Questions
Examples

“What can we learn

What did we do wrong
from what’s happened
and who is
and what possibilities
responsible?”
do we now see?”

How can I get the most How can I get the best
of my team? of my team?
Actions Speak More Than
Words
Body Language Clusters

POSTURE
& SPACE

FACIAL
(Eyes, Smile HAND
& Head Position) GESTURES
Zones for Eye Contact
Smile – The BEST way to CONNECT
What do you do with your head?
Head movements are important in controlling the pace and
progress of a conversation. By “Nodding”; you are saying a number
of things:
- You are listening
- You want them to go on
- You agree with what they are saying
Hand Gestures
Charismatic Communicators…..

Use hand gestures to ENGAGE, CONNECT and INFLUENCE

Use Hand Gestures Effectively
NUMBERS

INCREASE/DECREASE

EMOTIONS & FEELINGS

DIVISION

PALMS UP & PALMS DOWN

CHOP
Shake of a Hand

Dead Fish Bone crusher

Queen Finger Tips Double Shaker

Body Posture
Voice Tone
Volume

Tone

Pace
• Record Your Voice
• Avoid ‘Mono-energy’
• Use your whole voice
• Speak slowly
• Pause & Breathe
 • Establish relationship either before or early
on
• Be explicit about the normative process
• Make sure everyone knows who is there
and why
• Avoid “flaming”
Virtual
• Check out assumptions about other parties’
Negotiation interest and positions
(including • Be careful not to make commitments that
can be used against you
email)

Face to Face or Written?

Negotiating
At The
Workplace
Lecture 8
 In order to effectively manage up, what
things should Grace understand about
herself?

In order to effectively manage up, what

things should Grace understand about
Landon?
Managing Up:
Grace Should Grace send that email to Bill?
What would be the likely impact on
Landon? On Grace?

Imagine Grace has come to you for

help. Develop a plan for her to manage
her relationship with Landon in order
to meet her career goals.
 How was the
Why was their
relationship in the early
relationship so good?
days?

Grace – Self How would you

describe their What changed?
Awareness relationship in the end?

Grace’s expectations
changed – true? Moved
from getting advice to
support in advancing
Career Stages

Withdrawal
Maintenance
Advancement
Establishment

Lloyd Baird & Kathy Kram, Career Dynamics

 Mutual Dependence

Disposition To Counter-dependence –
Authority Aversion to Authority

Over-dependence –
Leader is all-knowing
Understanding Landon Washington

• Career Stage
• 8 years, demonstrated knowledge of company and
industry
• Decision Making Style
• Tons of charts and graphs, detailed implementation plan –
not swayed
• Reasons why a jr. employee could not do such things – it
just wasn’t done
• IT dept was supposed to make those type of changes
• ‘Your time will come’ for the high-profile project
Plan for Grace to develop relationship

01 02 03
Understand Understand Support the
herself the boss boss’s need to
get own needs
met (win-win)
Caitlin`s Challenge

Read the Case

Positioning and Preparation

• What can she do to position herself for this

negotiation?
• What information is she seeking?
• What are going to be George`s reasons to deny her
the promotion and bonus?
• What is Caitlin`s BATNA and what is George`s
BATNA. Assess relative merits of each
 What can Caitlin do to
prepare for her
negotiation with George?
To get him to negotiate
with her seriously?
Discuss

What moves can she

anticipate from George?
 • Question your competency and expertise
Your budget is way out of line with what you deliver.
We are not getting value for our money
• Criticize Your Style
Strategic You are being unreasonable
Moves • Demean Your Ideas
Where did you even get these numbers from?
• Appeal for sympathy/support
I really need your help on this
• Make threats
If you can’t accept, we will find another resource
• Flatter you
You are so good at this; why wouldn`t you want to do
it?
(all 80 hours of it without pay)
 Move: “You are
Not Ready For
the Position”
Move,
Countermove
Countermove:
“Yes I am”
Turning Moves

• Surprised
- Use Silence
- Take breaks
• Level the Playing Field
- Name to show you know it’s a tactic
- Correct by giving alternative explanations
• Enlist Your Counterpart
- Question to learn more
- Divert the comment to the problem at hand
 Move : You are not
Ready for the VP
Position

Let`s Practice Move: I plan to hire

from Outside

Move: How could

you be asking for
money at this time?
Caitlin`s
Challenge Video
How should she open the
negotiations?
Possible Openings

“George. I hope you have heard we have closed the deal

with Salloway and Diamant.”

“George, I know you don`t like surprises and what I

want to talk about might be a surprise”

“George, I think that we figure out how going forward,

we are going to deal with Marty`s departure, what is
your pla? Are you recruiting for the position?”
Conflict
Resolution &
Closing Deals
Luna Pen – A four-part, in-class
Negotiation Exercise
Objectives

Illuminate specific Promote self-reflection

tactical options and their about one`s own
possible consequences bargaining style

Illustrate how culture can Assess impact of

influence negotiation communication modes
styles and interactions on negotiation

Demonstrate linkages
between internal and
external negotiations.
Situation 1

A. Fax Feng requesting a meeting with him in Taipei next week. Outline your
understanding that Global Service Company has built a considerable business using the
Luna name without DGG’s permission. Raise the issue of back payments for past misuse
of the name, and a possible license or sale for future use.
B. Write Feng that his company must cease its unauthorized use of the Luna name, and
that DGG is prepared to file lawsuits if necessary. Unless your company asserts its
rights, Feng has no reason to negotiate.
C. Contact other companies in Southeast Asia that might be potential buyers of the Luna
name, in order to determine their possible interest. Also, write Feng and tell him DGG is
planning on selling the rights to the Luna name. Request that he come to Frankfurt in
the near future to discuss the settlement of this matter.
D. Fax Feng, introduce yourself, and tell him that you will be in Taipei next week. Ask if
there is any convenient time to discuss your recent discovery that the Luna pen is
selling well in Southeast Asia, under his company’s marketing strategy. Let him know
that DGG is interested in some form of partnership with Global Services.
Situation 2

A. Send a registered letter to Feng notifying him of DGG’s intent to file suits in the Republic
of China and elsewhere for infringement of the Luna trademark. You will wait a
reasonable time for a response before having DGG’s counsel actually file suit.
B. Fax Feng, via Mei Chang, stating that you are sorry that Feng is not available but that it
is necessary to resolve Global Service’s use of the Luna name. Ask to meet with
whatever senior executive is available next week in order to reach some sort of
licensing or partnership agreement.
C. Respond by sending a draft agreement and a request to meet with Feng later,
preferably in Frankfurt. Your draft proposes a lump sum for past sales and a profit-
sharing provision for future sales.
D. It is too late to do anything before your Taipei visit. Put this in your file to be done when
you return from Asia.
Situation 3

A. Let Feng wait for a while. You are in no rush now that Feng knows of the possibility of
lawsuits.
B. Send a polite letter to Feng acknowledging that economic benefit would likely be
maximized trough a licensing agreement with his company, given his proven success
marketing Luna pens. Also state, however, that you are ready to make a deal with
another company if he does not offer a fair share of the profits. Propose a phone call to
resolve the matter.
C. Given Feng’s apparent difficult dealing with you, you write a detailed letter explaining
your position in the organization, your authority to settle this matter, and your interest
in coming to a settlement that will satisfy Global Service’s needs. You acknowledge that
you and he have gotten off to an unfortunate start in this negotiation, but that you
would be happy to schedule another trip to Taipei to resolve the matter amicably.
D. Respond to Feng’s offer of a ‘nominal fee’ with a letter insisting on a 20% royalty for
past and future sales, plus a lump sum of Euro 400,000. (Privately you’d be thrilled to
split the difference and get half as much as you asked.)
Situation 4

A. It seems as if you will not get very much from Feng without a real fight, and your chances of a
deal with another distributor are poor. Therefore you send a settlement agreement over for
Schmidt’s and the president’s signatures, accepting Feng’s 2% royalty but applying it to past
as well as future sales.
B. At least now you’re negotiating, through indirectly. You write a letter to Feng, noting that you
are responding to his recent letter to the president. Countering his offer, you propose a 20%
future royalty and a flat Euro 250,000 payment for past use of the Luna name. You request
that Feng respond to you personally as soon as possible, if he wants to avoid litigation.
C. Write to Feng, noting that he may send all future communication to you directly. His offer was
unacceptable, given the competition from other potential distributors for the Luna name. You
would be willing to arrange a Frankfurt meeting if he wishes to make a more reasonable
proposal. Meanwhile, he will be notified as litigation progresses.
D. Feng apparently is uncomfortable dealing with a woman. You draft a courteous letter to Feng,
suggesting a 10% royalty on past and future sales. You send this under the president’s
signature, noting that this matter is now in the hands of Erika Graeper. A week later, when
you are sure Feng has received the letter, you call to try to arrange a meeting in Taipei.
 Concern for
Your
outcome
Bargaining
Style
Concern for
relationship
Take Away

Tactics must serve Tactics matter Culture shapes Ethics are tested in
strategy tactical choices and practice not theory
their interpretation

Internal and external See style ‘from the

negotiations must be balcony’
coordinated
Closing Deals
 Ury`s Strategies for Managing Difficult
Negotiations

Don’t React Go to Balcony

Disarm them
Change the game
Make it easy for them to say yes
Make it hard to say no
Step to the side
Don`t reject, reframe
Build them a golden bridge
Bring them to their senses,
not their knees
 Connections

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