SESSION 1 : Negotiation Strategy

Mr. Ta Wei CHAO

Executive Director of ESSEC IRENE Asia-Pacific
E-mail: chao@essec.edu

INSTITUT DE RECHERCHE ET D'ENSEIGNEMENT SUR LA NEGOCIATION

 MANAGING A FIRST TENSION
FROM PARTISAN PERCEPTIONS

IMPACT
INTENT

INSTITUT DE RECHERCHE ET D'ENSEIGNEMENT SUR LA NEGOCIATION

 THE LADDER
OF INFERENCE

CONCLUSION’ CONCLUSION

INTERPRETATION’ INTERPRETATION

DATA

INSTITUT DE RECHERCHE ET D'ENSEIGNEMENT SUR LA NEGOCIATION

 BEWARE OF
PARTISAN PERCEPTIONS!

• The perceptions I HAVE about the other's messages

– I often consider that
• my insatisfaction is caused by the other's BAD INTENTIONS
• the other acted against me in bad faith
• s/he had foreseen the BAD IMPACT on me
– « Hell is the other » & « The worst is always sure»

• The perceptions THE OTHER HAS about my messages

– S/He often considers that
• I have such or such BAD INTENTIONS (that I may not have)
• I knew the BAD IMPACT on him/her (that I may not be aware of)
– « Hell is paved with good intentions »

INSTITUT DE RECHERCHE ET D'ENSEIGNEMENT SUR LA NEGOCIATION

 RECONSIDER
PERCEPTIONS

• Learn about asymmetries

– From you to the other
– From the other to you
• How to learn to better perceive the other
– Imagine how the situation is seen from the other's perspective
– Consider the benefit of the doubt
– Use the ladder of inference
• How to help the other to better perceive you
– Imagine how your message was received
– Ask yourself: How will they perceive my messages or actions?
– And not: What were my intentions in my actions or speeches?

INSTITUT DE RECHERCHE ET D'ENSEIGNEMENT SUR LA NEGOCIATION

 FIRST THINGS FIRST:
A KEY SEQUENCE

EMPATHY
& ASSERTIVENESS

&
PUTTING MYSELF PUTTING THEM
IN THEIR SHOES IN MY SHOES
(my impact on them) (their impact on me)

ACTIVE
LISTENING & ACTIVE
SPEAKING

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 MANAGING A SECOND TENSION
FROM STRATEGY

RISKS
PROFITS

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 UNIONA

2 % 3 % 4 %

U: 11 U: 18 U: 15
F 2 %
E F: 11 F: 2 F: 2
D
E U: 2 U: 8 U: 15
R 3 %
A F: 18 F: 8 F: 3
T
I U: 2 U: 3 U: 5
O 4 %
F: 15 F: 15 F: 5

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 THE NEGOTIATOR'S DILEMMA
(Lax & Sebenius)
B
COOPERATIVE COMPETITIVE
A

+ ++
COOPERATIVE
+ --

-- -
COMPETITIVE
++ -

INSTITUT DE RECHERCHE ET D'ENSEIGNEMENT SUR LA NEGOCIATION

 THE NEGOTIATOR'S DILEMMA
(Lax & Sebenius)

• How to cooperate and create value at the table

without being taken advantage of
or becoming the hostage of a relationship

• How to compete or claim value at the table

without damaging the relationship
or blocking the negotiation

• How to maximize value while minimizing risks

INSTITUT DE RECHERCHE ET D'ENSEIGNEMENT SUR LA NEGOCIATION

 FIRST THINGS FIRST:
ANOTHER KEY SEQUENCE

COOPERATION
& COMPETITION

CREATING

&
CLAIMING
VALUE VALUE
(making
(dividing the pie)
the pie bigger)

&
TAKING MAKING
RISKS PROFITS
(win/win approach) (WIN/win approach)

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MANAGING A THIRD TENSION ON PROCESS
FOR THE MANDATE

PRINCIPALS
AGENTS

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 SEQUENCING STEPS
BEHIND & ACROSS THE TABLES
THEIR PRINCIPAL
MY PRINCIPAL (n3)
(n1)
N-E
N

1 3 4
Mandate My report back
Their report back
S
E
THEIR AGENT
« ME »
(n2)
2
Outside negotiation
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 WHEN DOES IT HAPPEN?

• Whenever there is representation

– Ambassador/ State
– Lawyer/Client
– Manager/Owner
• Whenever there can be a conflict of interests
• Etc.

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 WORKING ON THE MANDATE

• Risk if the mandate is too broad

• I trust you: principle of the trustee, of the architect
• Still principal may be unhappy with the outcome
• Thus obligation to get clear guidelines
(about underlying motivations, objectives)
• Risk if the mandate is too narrow
• I corner you: principle of the delegate, of the mason
• Still principal may be unhappy with the outcome
• Thus obligation to get some room for maneuvering
(getting away from positions)
• Reality checks
• Need to work in a balanced way again
• FLEXIBLE RIGIDITY (Dean Pruitt)

INSTITUT DE RECHERCHE ET D'ENSEIGNEMENT SUR LA NEGOCIATION

 FIRST THINGS FIRST:
A KEY SEQUENCE TO
MANAGE THE PROCESS

PRINCIPALS
& AGENTS

MANDATE
& EXECUTION

BEING EFFICIENT

&
BEING
& TRUE
LOYAL
TO ONESELF
TO PRINCIPAL
AS AN AGENT

INSTITUT DE RECHERCHE ET D'ENSEIGNEMENT SUR LA NEGOCIATION

 WHY THIS SEMINAR?
TO OVERCOME SOME ASSUMPTIONS
IN NEGOTIATION

INSTITUT DE RECHERCHE ET D'ENSEIGNEMENT SUR LA NEGOCIATION

 ASSUMPTIONS

THOUGHTS

BEHAVIORS

OUTCOMES

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 Usual Assumptions

• Nothing to learn and therefore nothing learnt

• Self over-evaluation and under-evaluation of the other
– I am not really like that, this is just a game
• Intuitive approach based on
– pure competition (objective is to win against the other, zero sum)
– concession (what he wins I lose, and vice versa)
– positions (my position is the solution)
• "Velvet hand in an iron glove"
– business is business
• Preference for a solution that is
– mine, unique
– arbitrary
– short term (end at 8th round)

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