Communication and Negotiation Skills-1

Communication & Negotiation Skills
Prof. Dr. Jens Kirchner | 2024
© Prof. Dr. Jens Kirchner | 2024 Communication & Negotiation Skills 1

Course Overview
1. Communication Theory
2. Impact of Language and Culture on Communication
3. Solving Conflicts
4. Exercises 1 (Communication)
5. Understanding Negotiations
6. The individual parts of a Negotiation
7. Potential mishaps and how to avoid them
8. Negotiation Strategies
9. Exercises 2 (Negotiation)

Learning Objectives
The students …
1. can name the essentials of communication and conversation,
2. are privy to cultural differences and backgrounds that influence negotiations,
3. can name, approach and solve conflict situations,
4. know how to prepare for and successfully execute a negotiation,
5. know how to avoid common negotiator‘s mistakes,
6. can recite and apply common strategies in negotiation.

Itinerary
Communication Negotiation
1. Kick-off & Lectures – in Presence 4. Lectures – in Presence
(20.03.24 | 11:30-13:00 + 15:45-17:15 | All) (15.05.24 | 11:30-13:00 + 15:45-17:15 | All)
(27.03.24 | 11:30-13:00 + 15:45-17:15 | All) (22.05.24 | 11:30-13:00 + 15:45-17:15 | All)
(03.04.24 | 11:30-13:00 + 15:45-17:15 | All)
2. Team-Coaching in Groups – Online 5. Team-Coaching in Groups – Online

(10.04.24 | 11:30-13:00 + 15:45-17:15 | division 1) (29.05.24 | 11:30-13:00 + 15:45-17:15 | division 1)
3. Presentation/Discussion in Groups – in Presence 6. Presentation/Discussion in Groups – in Presence

No lectures on
26.06.24 | 03.07.24 | 10.07.24

Course Overview
4. Exercises 1
9. Exercises 2

Different Communication styles can lead to misinterpretation
Basics of Communication
• Elements of Communication – Verbal, paraverbal and nonverbal communication
• Basic rules of Communication

− Don´t interrupt a speaker, listen carefully
− Don´t feel embarrassed by periods of prolonged silence
→ do not make concessions or reveal information to avoid further silence
− Learn to use silence as part of conversation to evaluate proposals and organize your thoughts
− Allow ideas to mature, do not employ steam-roller tactics
− Ultimate goal is to maintain harmony & consent
• Impact of Language
− Words can be interpreted in multiple ways based on how & when used
− Homonyms can discern the intent of the speaker within the context (e.g., deer/dear)
− Second degree communication: everyone understands the explicit meaning and those with a shared
context also receive the secondary degree message (hidden message in tone or wording of the statement)

Different Communication styles can lead to misinterpretation
Trust as a basis of effective Communication
Trust is like an insurance, it´s an investment you need to make upfront before the need arises!
(Erin Meyer)
Two Types of Trust have to be distinguished:

Cognitive trust Affective trust
• Built through business-related activities and • Arises from feelings of emotional closeness,
founded on professional credibility friendship and empathy
• Based on confidence we feel in another • Share personal time to build friendship and
person´s accomplishments, skills, reliability relationships, and to establish a deeper
• Relatively easy to move in and out of emotional connection
networks • Work relationships are built up slowly and
over the long term
• Network orientation (If others trust you, I
can trust you too)

The social currency of „Face“ is affecting all aspects of life
The concept of “Face”
• What is “Face”?
Relationship-oriented dynamic concept that acts as a social currency and describes social standing
• Using face effectively

If you make someone lose face, winning back their respect and confidence is almost impossible.
Expect subtle and indirect retribution.
• How to avoid losing face

− Be cautious in expressing opinion
− Cultivate self-control (avoid criticism, confrontation and losing your temper)
− Indirect communication
− Maintaining appearance
• How to give face

Bolstering the other´s reputation, prestige and status

Contradicting non-verbal Communication can bear potential for conflicts
Non-verbal Communication 1/2
You can never not communicate (Watzlawik). Communication is also in silence (nonverbal).
• Haptic signals − Has a high impact

Touch can beget positive effects but should be used sparingly. − Is multi-facetted
• Gestures − Only interpretable in context
Emblems – Substitute speech (e.g. applause) − Prone to cultural influences
Illustrators – used with speech (e.g. banging the fist on the table)
− Merely moderately controllable
• Head movements − Expresses emotions
Approval/disapproval; signals, that it´s now their turn
− Colors, molds and shapes emotions
• Posture
− Allows insights into the quality of the
Offers insights to emotions, stances, attitudes and status of a person relationship
• Eye Contact
Transmits intents, regulates interpersonal Interaction and can express emotions
• Facial Expressions
For transmission (most of all of emotions)
• Proximity
Territorial aspects of personal space and interpersonal distance (direction and sitting arrangement)

Eye contact can be misinterpreted during communication
Non-verbal Communication 2/2
Potential misinterpretations of eye contact
Direct eye contact Avoidance of eye contact
can seem aggressive, provoking, can transmit a lack of interest,

intimidating or intrusive insincerity, dishonesty, fear, shyness or
bad manners

Focus on indirect ways to say no in harmony-oriented cultures
Indirect communication – Ways to say no
• Culturally rooted, ambiguous responses

• Using words such as: “maybe, that will be difficult, in principle it’s ok, we will do our best to solve the
problem, we will give your request serious consideration”
• Evasive tactics
• Asking unrelated questions, broach unrelated issues & avoid disapproval of a particular negotiation issue,
avoid unpleasant topics, create delays and difficulties
• Non-verbal negatives
• Such as tongue clicking, lifting your eyebrows (Arabs, Greeks), smiling and changing subject (Japanese, Thais)
or extended silence
• Avoid asking leading questions because some cultures (e.g., Chinese) do not say “no” directly.
• Always provide a second way out to allow people to protect their face.

Good conversation should be well prepared
Basic rules of conversation – Preparation
1. Inviting the counterparty early on and informing him/her about the content to be discussed
2. Organizing a suitable room to conduct the conversation in (create a quiet, undistrubed environment)
3. Allow sufficient time (calculate extra time in)
4. Procure the information you need according to the type of conversation (facts, figures and data)
5. Write down your questions (wording and expression are important)
6. Establish a conversational structure with room for flexibility (what topics are you going to adress in what order)
Hint: Ask the counterparty to prepare for the

conversation and to prepare a set of questions!

Sufficient time and active listening are crucial for the correct execution
of a conversation
Basic rules of conversation – Execution
1. Create a pleasant atmosphere for the conversation
2. Clarify the goals and the content of the discussion at the beginning of the conversation
3. Allow your counterpart to speak sufficiently (do not conduct a monologue!)
4. Please listen actively and pay sufficient attention to the person you are talking to
5. Please avoid interruptions (no cell phones, do not constantly look at the clock, door, etc.)
6. You should document the most important points of the conversation
7. At the end of the meeting, make clear and realistic statements and agreements

Important conversations should be reflected and recorded by protocol
Basic rules of conversation – Post-processing
1. Reflect on the course of the conversation and make necessary adjustments in future conversations
2. Provide your conversation partners with a record of the reached agreement or discussed content
3. Actively support the employee in implementing the agreements
• Appraisal interviews are management tasks

and therefore cannot be delegated!
• Parts of preparation for the meeting, such as
gathering and preparing information or organizing
meeting rooms, can of course be delegated

Occasion-related discussions complement the meeting structure
Example of overview of regularly occurring productivity improvement talks
• Performance discussions (event-related)

Prerequisite is individual performance measurement for each employee (productivity, turnover, etc.)
Discussions take place once a month as needed (employees with performance below average)
Discussions with obviously poor performers independent of performance measurement (offer training)
• Sickness talks (on ad hoc basis)

On return after longer illness (reintegration talk by direct manager)
In case of conspicuously frequent illness (ad hortatory talk by staff and direct manager)
• Employee review (regular)

2x a year (annual review e.g. in December; interim feedback in June)
At the 1st and 2nd reporting level
• Onboarding meetings (regular for new hires)

Onboarding of new employees on the basis of written process documentation
Fixed contact person for new employees who is also available for feedback after induction

Find an explanation for the deviation in performance with the employee
Example of a performance review
Goal of the interview

• Together with the employee, find an explanation for the deviation of his personal
performance from the average performance of all employees
• In case of positive deviation – praise the employee, transfer his knowledge to help other
employees to become better
• In case of negative deviation – understand the reasons and help the employee with an
appropriate measure (e.g., training) to improve his performance.
IMPORTANT
Atmosphere of mutual appreciation and respect.

Content is discussed objectively with the employee.
No accusations are made.

Only with good preparation can a factual and structured conversation
be conducted
Preparing a performance review
• Managers receive a monthly overview of all activities for all their employees; the respective average
productivity per activity is shown
• Managers receive an evaluation of which employees are below average in which activities (color-coded and
sorted accordingly).
• Preparation of a short protocol for the analysis meeting:

− Name, function & department of the employee
− Activities (max. 3) with the highest time share and below-average performance
− Enter hours worked, productivity of the department
• Organization space & place for undisturbed conversation
• Arrange appointment with employee (state reason for discussion; plan sufficient time)
• Clarify whether he/she wants a works council member to attend; if so, invite works council member to the
meeting

The manager enters the performance discussion with a fixed structure
Guidelines to conduct a performance review 1/2
1. Brief explanation of the reason for the conversation and the productivity measurement
− Understanding what leads to productivity losses, identifying training needs
− Improvement of processes in the respective department
− Improving the overall quality of AGS Fulfillment
2. Explanation of the data entered on the summary log

− Productivity values of the employee compared to the average must be explained
3. Question about the reasons from the employee‘s point of view

− Question to employee: “From your point of view, what are the reasons for the below-average performance?”
− Record answers in bullet points
4. Explanation of own view/reasons for the result

− Your own reasons do not have to be the same as those of the employee
− Important: Justify own statements by observable behavior (e.g., I have seen that … (ideally with day/time))
* If productivity development is below average, monitoring of the employee should be intensified
The manager enters the performance discussion with a fixed structure
Guidelines to conduct a performance review 2/2
5. Joint discussion of measures to increase productivity

− Record concrete measures and expectations
− Name responsible persons
− Agree date of completion
6. Conclusion of discussion
− Signing of the short protocol by all those present
− Saying goodbye to the employee in an appreciative manner and assuring support
− Short protocol remains up to the completion and examination of the measures with the team leader
− Afterwards the protocol is handed over to the personell department (filed in the personnel file)

Performance reviews can be trained
Example of performance review
• Each participant practices an analysis interview with a partner
• The reason is the below-average productivity of an employee in certain activities (different reasons: lack
of knowledge, health problems, laziness/disinterest)
• The exercise conversation is observed and evaluated by a "trainer“ (another participant)
• Afterwards a feedback on the possibilities for improvement is given
• Each participant is once manager, employee and trainer

A typical example of a Performance-Evaluation could look like this
Example of a Performance-Evaluation 1/5
Executive:
"As already mentioned in the invitation to the appointment, I would like to talk to you/you today about
your performance over the past few months. As I'm sure you know, the productivity of our employees is
very much responsible for our ability to meet our clients' requirements to the best of our ability within the
framework of our cost targets.“
"The reason for today's discussion is that your performance in the past months unfortunately did not quite
meet our expectations. I would like to use this document here to explain to you how your personal
performance in the activities you perform on a regular basis compares to the performance our employees
achieve on average.“
Productivity scores are explained to the employee based on the written evaluations.
"Now that I have explained this to you, I would like to know what you think might be the reasons for your
underperformance?“
The employee now describes possible reasons for his underperformance. If possible, let the employee finish
here and do not get into a discussion prematurely. Merely show agreement and ask questions if necessary. If
the employee has given a reason, please ask if he sees any other reasons for his behavior.
The employee's answers are recorded in the protocol (bullet points).

Example of employee response:

"I don't really know what that's about. I think I'm just as good as the others.“
Manager:
“After all, I just explained to you that your performance is below average. Besides, this isn't about the other
employees, it's about you. I will also talk to the other employees concerned in due course. Don't you have
any other reasons that could account for your current underperformance?“
Employee:
"Sometimes I can't cope with the workload and the high demands.“
Manager:
“What do you mean? Do you perhaps have any personal problems that you would like to talk to me about?“
Employee:
"I don't know, but I'll think about it.“
Manager:
"Do you have anything else to say about your performance?“
Employee:
"No, not really."

Executive:
"Good, then I would now like to tell you my view of things.“
Reasons given by the manager can be noted in advance in the minutes in bullet points.
"I've noticed that you've been frequently unpunctual at work lately. In the last week alone, this has been
the case twice, according to my records. What do you say to that?“
Employee:
"Well. I just don't feel so good sometimes.“
Manager:
"I'm sorry about that. But please understand that this has to change. Also in view of the behavior of other
employees, we cannot tolerate this. However, I'm happy to offer you support to the extent possible from
the company's perspective to solve your problem.“
"Furthermore, I have observed that you often do not choose the right procedures in your work and take too
much time due to these mistakes. I think we should give you another training. What do you think?“
Employee:
"Oh, I think I can handle it. There's no need for training on that.“
Manager:
"Well, I don't see it that way. Please understand that I have to insist on training."
Executive:
"But I see another cause for your underperformance: you take very frequent short breaks during which you
go to smoke.“
Employee:
"Yes, but I clock out during that time.“
Manager:
"That's certainly true and correct. But after the break, you always start working all over again and need time
to achieve a smooth workflow. This detracts from your performance. I therefore suggest that you reduce
your breaks. Can we agree on that?“
Employee:
" Yes, I think so. I don't think I have any other choice.“
Manager:
“Good. Then we'll record together once again what we want to do in concrete terms: First, be on time at
work from now on. I will check this daily. Second, you will receive training for your essential activities. I will
make an appointment for you right afterwards. Third, I recommend you reduce your smoking breaks to two
per shift. I will monitor that daily as well."

Executive:
“I have briefly noted these measures here in the minutes. If you are so agreeable to this, I ask you to sign
this?!“
Employee:
"Yes, that's fine. I've read this.“
Employee and manager sign the protocol.
Manager:
"Thank you very much for the conversation and for understanding. I think we can improve your
performance again with the agreed measures. I look forward to a continued good working relationship.“
Employee and manager say goodbye.

When returning after a longer illness, a conversation should be held in any case
Returning after Sickness
• Establish trusting relationship

Example: „We missed you and are glad you are back.“
• Inquiring about well-being and current performance (joint planning of when and how full performance can
be restored = reintegration)
• Clarifying whether there were operational causes for the illness and how these can be eliminated
• Informing the employee about possible developments/changes in the company as a whole and in his/her
area of responsibility during his/her absence
• Informing the employee about the current situation and upcoming tasks and appointments
• If necessary, involve or at least inform the works council

The structured employee appraisal is one of the most essential discussion
occasions
Employee reviews – Structure 1/2
1. Ice Breakers/Starting Conversation

− Polite/friendly
− Thank people for coming
2. Name the topic of conversation

− Occasion and goals
− Short „agenda“ and time frame
3. Place the topic

− Factual, descriptive, without interpretation
− Possibly this could already happen in advance so that the employee could prepare himself
4. Get the employee‘s point of view

− Do not interrupt, take notes
− Possibly ask questions
5. Describe own view

− Build on the employee‘s comments, correct or confirm them

The structured employee appraisal is one of the most essential discussion
occasions
Employee reviews – Structure 2/2
6. Reduce frustration
− Accept emotions, reaction of Manager does not have to be factual
− Transition to factual exchange
7. Factual exchange (finding common ground)

− Name and elaborate differences in perception, find causes
− Seek and find solutions that are acceptable to both sides
− Basic flexibility if new insights arise
− Take notes
8. Conclude the conversation

− Summarize important points
− Agree and record goals and results
9. Self-reflection
− What was successful and what was not?
− Which goals did I achieve and which did I not?
− What would I do differently next time?

A good job interview should be prepared and follow a structure
The stages of a job Interview (Helmold 2019, Köhler 2007)
1. Market intelligence & 2. Welcome and start 3. Introducing 4. The company is

Research of the interview yourself introduced
6. Negotiation about
8. Saying goodbye and
5. Core negotiations material & 7. Questions and end presenting the result
and motivation organisatorial of the interview of the interview
elements

Communication and Negotiation Skills
Course Overview
4. Exercises 1
9. Exercises 2

The context of a culture vastly influences the preferred style of Communication
Behaviour in High-context vs. Low-context cultures 1/2
Cultural Type High-context culture Low-context culture
Implies Indirectness -> mostly eastern cultures Directness -> mostly western cultures
e.g., Japan, China, Arabian States, India e.g., Germany, North America, Switzerland
Examples
= collectivistic countries = individualistic countries
• Implicit, ambiguous, half-utterances • Explicit, unambiguous, straight forward

• Rely on contextual cues (nonverbal behaviour • Little importance on nonverbal behaviour and
Language and social context) contextual cues
• Read between the lines • Do not avoid contentious issues
• Communicate messages without words • Take conflictive stands when necessary
Be respectful, a good listener and Say what you mean and mean what
maintain face and harmony! you say! Emphasize eloquence!
31
© Prof. Dr. Jens Kirchner | 2024 Communication & Negotiation Skills
The context of a culture vastly influences the preferred style of Communication
High-context vs. Low-context cultures 2/2
Cultural Type High-context culture Low-context culture

− Explicitly verbal
− Harmony, politeness & face
− Do not leave room for interpretation
− Take precedence over truth
− Expresses views openly and frankly
Aspects − Expect the listener to interpret meaning
− Openly confront issues or difficulties
− Focus on what is said and how it is said
− Less focus on what is said but rather straight
− Avoid conflict & difficult issues
forward
People from high-context cultures are perceived as… People from low-context cultures are perceived as …
• Weak, tricky and deceptive • Crude, insensitive and authoritarian
Perception
• A waste of time • Slow on the up-take
• Lacking integrity
→ There are also countries in which a mixture of

both is applied to business relationship
(e.g., Spain, Italy, Brazil, Argentina, Mexico)

Different concepts for establishing trust in cultures
Task-based vs. relationship-based cultures
Task-based cultures Relationship-based cultures

• Separate cognitive and affective trust • Cognitive and affective trust are interlaced in all
• Rely mainly on cognitive trust for business relationships
relationships • Establishing relationships is vital for business
• Founded on professional credibility • Network orientation (If others trust you, I can trust you)
• Networks are easy to move in and out of
e.g., U.S., Denmark, Netherlands, Australia e.g., Saudi Arabia, India, China, Russia, Turkey
Hint:
• Cognitive trust
• = based on confidence we feel in another person´s accomplishments, skills and reliability
• Affective trust
• = feelings of emotional closeness, friendship and empathy are created through shared personal
time to build friendship and relationships to establish deeper emotional connections

Time systems are arbitrary, imposed and learned
Different concepts of time across cultures
Monochronic cultures (linear time cultures) Polychronic cultures (flexible time cultures)
• Clock & calendar related • Event & person related
• One thing at a time, avoid interruptions • Time can be moulded, stretched and restricted
• Unutilized time is wasted -> Deadline-oriented • Interruptions are accepted
• Fixed schedule & set organizational scheme overrides • Adaptability and flexibility overrides set planning and
flexibility organizational scheme
✓ Linear planning sequences are used to reach goals ✓ Flexible implementation is used to reach goals
✓ Meetings follow an agenda and end on time ✓ Meetings are open and often spill over into socializing
✓ Relationships are subordinated to schedules ✓ Schedules are subordinated to relationship
→ Polychronic businesspeople are seen as scattered and
→ Monochronic businesspeople are seen as cold and rigid
disorganized
e.g., Germany, Japan, Netherlands, Switzerland, Sweden e.g., Saudi Arabia, India, Turkey, China, Brazil, Mexico, Russia
➔ There are also countries in which a mixture of both is applied to business relationship
e.g., Poland, Czech Republic, France

Course Overview
4. Exercises 1
9. Exercises 2

A conflict is based on different interests of individuals or groups
Definition Conflict
• Conflict is the process of disagreement based on different interests of individuals and social groups,
which is institutionalized and carried out in different ways.
• If the parties are aware of the conflict, there is a manifest conflict.
• If the parties are not (yet) aware of the conflict, but the situation is such that a conflict is very likely,
or if the parties are aware of their irreconcilable action tendency but have not yet dared to realize
it, then there is a latent conflict.
• The interaction between actors is called a social conflict if at least one actor experiences
incompatibilities in thinking, feeling and behavior with the second actor in such a way that in the
realization an impairment takes place.

Constructively resolved conflicts can promote innovation and strengthen the team
Positive aspects of conflicts
Productive conflicts strive for

change and have a positive impact
on the organization!
Conflicts …
… indicate problems (state of tension that triggers the need for action),
… trigger changes (standstill is prevented),
… stimulate interest and curiosity (basis for creative solutions and innovations),
… deepen relationships (jointly managed conflicts deepen and strengthen relationships),
… strengthen group cohesion (weaknesses become transparent, trust is developed)

Inadequate communication and poor processes are frequent causes of conflict
Causes and starting points for resolving conflicts
Causes of conflicts in companies Starting points for conflict resolution
1. Extremely high or very low control by 1. Introduction of a binding communication

managers structure
2. Insufficient or unequal information by 2. Creation of a feedback culture
managers
3. Team building processes and events
3. Insufficient recognition of performance
by managers 4. Create organizational structures to reduce
or avoid conflicts
4. Inadequate induction as well as unclear
task descriptions 5. Create transparency about information
and decisions
5. Inadequate and/or insufficiently
documented processes 6. Conduct a "climate conference"
(www.boeckler.de)
6. Differences in strategic/operational goals,
values and norms 7. Developing and comprehensibly
documenting essential processes
7. Distribution issues (salary, equipment)

The nature of the conflict is crucial for the development of solutions
Basic forms of conflicts 1/2
1. Conflicts of fact
• Different, inadequate or incorrect information or ist interpretation
• Seek solution on the factual level (complete information, clarify facts, develop evaluation criteria)
2. Conflicts of interest
• Different interests as well as needs behind them have to be worked out
• Develop approaches to solutions that relate to the needs
• Consider reasonable barter transactions
3. Relationship conflicts
• Caused by emotional problems
• Based on emotions such as fear, frustration, envy, disappointment
• Expose parties‘ emotions to understand underlying needs

The nature of the conflict is crucial for the development of solutions
Basic forms of conflicts 2/2
4. Conflicting values
• Different value concepts collide, i.e., common value basis must be found
• Partial decision by higher-level body or court necessary
5. Structural conflicts
• Differences and areas of tension between organizational units (e.g., sales and purchasing)
• Persons involved only indirectly affected (group dynamics)
• Conflict resolution by coordinating processes and rules of cooperation (constructive area of tension)
• Usually no final solution because problems/conflicts are inherent in the system
6. Inner conflicts
• Exist within one‘s own world of thoughts and feelings
• Conflict of different wishes, goals or role requirements (e.g., family versus job)
• Open discussions or, if necessary, professional coaching makes sense

Unproductive conflicts are often recognizable by certain symptoms
Symptoms of (unproductive) conflicts
1. Resistance and rejection

(sloppy work, not sharing information)
2. Withdrawal and disinterest
(dwindling work motivation, internal resignation)
3. Hostility, irritability and agressiveness
(pent-up frustration suddenly erupts)
4. Intrigue and rumors
(obstructing and belittling the other party, gaining allies)
5. Stubbornness and intransigence
(lack of empathy for the views of others, putting one‘s own point of view above everything else)
6. Formality and overconformity
(especially of subordinates to superiors)
7. Physical symptoms and illness
(symptoms of illness lead to high absenteeism and even turnover)

Contradicting non-verbal Communication can bear potential for conflicts
Conflict Styles in Cultures
There are no strictly direct or indirect cultures, they move on a scale.

Direct Indirect
People say what they mean and It is important to be respectful,

mean what they say. maintain face and harmony.
Conflict is not evaded. Conflict is avoided.

Above all, a mediator should be appreciative, impartial and optimistic
The concept of mediative conversation - mediative attitude
• Treating people with esteem and respect, strengthening their self-esteem

Appreciation • Never abuse people as objects or means to an end
• Rules and laws serve people (not vice versa)
Unbiased- • Objective distance to the acting persons and to the problem (neutrality)
ness • Balanced partisanship for all involved parties
• Accepting the differences of the parties involved in the conflict
Empathy & • Ability to empathize with others and accept them despite their strengths and weaknesses
Acceptance • Accepting interests and needs, even if we disagree in whole or in part
• Take concerns and needs of conflict parties seriously even if they seem insignificant
Confidence • Mediator must have optimism and confidence in managing conflict and finding solutions
& Optimism • Both confidence and skepticism are transmitted to the parties involved in the discussion and have
a correspondingly beneficial or obstructive effect on the course of the discussion.
Openness • Conflict managers must be open to new, unconventional solutions and be flexible
• Approaches to solutions must always be questioned and, if necessary, dropped.
• Own opinions and ideas for solutions must be put into perspective and put on the back burner.

Different forms of questions aid to understand and navigate conversation
The concept of mediative conversation – Question-Scheme
1. Open Questions (invitation to interlocutor to present his/her point of view = receiving new information)
L/UND
tw. S 2. Comprehension Questions (checking the understanding/information received; "Do I understand it correctly that ...")
3. Question Words (clarification of circumstances: How, When, Who, Where; avoid Why -> leads to justifications)
4. Circular Questions (include positions of others; put points of views into perspective)
5. Constructive Questions (encourage thinking about other options „What would you do differently?“)
R/NAV
partly
6. Scaling Questions (assess importance, reduce complexity, „How high [1-10] do you estimate the readiness …“)
UND
7. Solution-oriented Questions (present solutions; „What would have to happen for the process to go well?“
8. Paradoxical Questions (identify opportunities for influence and risks, „What would make the situation worse?“
S/NAV Be careful: Closed-off Questions, Alternative Questions and Suggestive Questions should be used very
carefully and scarcely since they constrict the respondent and put the expected words in their mouth!
L = Linear Questions; R = Reflexive Questions; S = Strategic Questions; UND = Understanding; NAV = Navigating

A successful mediative conversation requires a question syntax
The concept of mediative conversation – Question-Syntax
Open up space • First collect relevant information to understand the problem

for conversations • Then encourage interlocutors to develop new thoughts and perspectives
Listening instead • Very little discussion time for questioners (in about 10 %, hold back interpretations)
of talking • Take breaks between questions and allow sufficient time for reflection
Do not over- • Useful interview guide to structure the interview in a goal-oriented way
schematize • Allow for flexibility and deviations
Allow for some • Allow sufficient time (do not convey time pressure)
time to pass • Listen sufficiently to questions and details (trusting discussion atmosphere)
Show sympathy • Show sympathy for the other party and signal that you want to grasp their concerns.
& understanding • Avoid disapproval or criticism, but also exaggerated agreement.
Allow emotions • Allow emotions, as this is also important information

• When dealing with emotions, follow up cautiously and avoid making own assumptions

Successfull mediation begets professional and emotional expertise
Preliminary requirements for a successful mediative conversation
1. Building trust (procedural justice, procedural competence)
2. Competence for problem solving (structuring, formulating, systematic thinking)
3. Competence to find solutions (motivation, creativity)
4. Emotional intelligence (especially empathy)
5. Confident appearance and pleasure in dealing with people
6. Knowledge of methods for designing processes and for evaluation
7. Experience and socio-demographic background
8. Mediator and mediation case must fit together

Conflicts can be de-escalated by means of suitable discussion techniques
Overview of conversation techniques for defusing conflicts
Non-transformative Conversation Techniques Transformative Conversation Techniques

• Active listening
• Paraphrasing • Change of perspective
• I-messages • Feedback (constructive)
• Meta-dialogue • Rephrasing
• Goal orientation
• Do not touch conflict itself • Intervene in conflict or change view or attitude to

• Prevent further escalation conflict (de-escalation)
• Enable constructive continuation of dispute • Require empathy and experience (aggravation of
conflict if used incorrectly)

Active listening requires unrestricted concentration on what your counterparty says
Non-transformative conversation techniques to defuse conflict 1/5
Active Listening
• Information of the interlocutor is taken in its entirety and sent back again
• Linguistic and non-linguistic messages are to be understood (sub-text, emotions)
• Full attention and eye contact are crucial
• Occasional acknowledgements and questions of understanding are important
• Distraction by own considerations is to be avoided

The mediator must paraphrase both the facts and the motivations
Paraphrase
• The interlocutor's comments are repeated in his or her own words.

• No value judgments by the mediator!
• The concerns and needs of the interlocutor are to be heard.
• Paraphrasing helps the speaker to better understand his or her own needs and concerns.
• Important: the mediator must also paraphrase the motives and the state of mind (emotional state).

I-messages preserve the autonomy of your counterparty
I-Messages
• Subject-related rephrasing of the often accusatory "you" messages.

• I-messages describe one's own perception of a situation.
• I-messages therefore do not interfere with the autonomy of the interlocutor (the interlocutor
receives the message and decides for himself/herself how to deal with it).
• You-message: "You have ruined our work so far by your decision".
• I-message: "Your decision has surprised me very much. From my point of view, it has not
contributed to the progress of our joint work."

Dialogue on the meta-level objectifies and de-escalates discussion situations
Meta-Dialogue
• Conversation is raised to an abstract, general level

• Shifting the subject of the conversation from the current topic and problem case to the associated
general topic (e.g., concrete dispute about vacation planning -> general vacation regulation)
• Exchange of factual opinions on the basis of criteria that are as objective as possible
• Development of a generally valid framework concept
• Subsequent solution of the current problem on the basis of the framework concept

Goals give structure to a conversation and often prevent mutual accusations
Target Orientation
• Specification of a goal and orientation to this goal in difficult conversations

• Goal orientation is crucial for a structured course of the conversation
• Without a common goal, there is a risk of escalation of mutual accusations
• Goals can be agreed between parties or set by one party (assuming acceptance by the other party)

A change of perspective opens the view for new ways and a different view of things
Transformative Conversation Techniques to defuse Conflict 1/3
Change of perspective
• The interlocutor should put himself in the position of the other party and view the facts or
problems from his point of view.
• The aim is to gain an understanding of the other party's point of view and to obtain an objective
picture.
• A self-critical reflection of one's own behavior takes place (self-perception/perception of others).
• One's own view of things may prove to be wrong or may be confirmed.
• Mediator can interpose to facilitate thought experiment("If I [mediator] were in this position, it
would put a lot of stress on me. How do you see it?").

Feedback promotes constructive behavior and helps to correct negative behavior
Transformative conversation techniques to defuse conflict 2/3
Feedback
• Informs a person how their behavior is perceived, understood, and experienced
• Promotes constructive behavior, relationships are clarified, and cooperation is facilitated
• Makes people aware of negatively perceived behavior and helps to correct them
• Targeted and careful use is important (especially with feedback from managers), as there is a
risk of devaluation and backsliding on the part of the other person
• Critical feedback should always be given in private (avoid embarrassment within a group)
• Positive feedback can also be given within the group (keep an eye on equal treatment)
• Basic rules for feedback:
− Describe concrete facts (no interpretation)
− Timely feedback (reminder and relevance)
− Willingness to receive feedback

Constructive reformulations can defuse disputes
Transformative conversation techniques to defuse conflict 3/3
(Constructive)
reformulation
• Destructive statements of the participants (anger, aggression, insults, etc.) are reformulated by the
mediator into constructive statements.
• Negative aspects are omitted, the underlying need is expressed.
• The aim is to defuse the dispute and steer it in a constructive direction.
• However, reformulations can also cause irritation (e.g., partiality of the mediator).
• A high degree of language skills and tact is important.
Example:
Mr. Y: "If you, Mr. X, don't finally stop talking such nonsense, I will immediately withdraw my employees from the project.
Mediator: "So it is important to you, Mr. Y, that we work on the basis of well-founded facts and arguments so that you can
continue to assign your employees to the project with a clear conscience? I therefore think it would be a good idea for us
to take another look at the current factual situation and determine together where we still have a need for further
analysis. Shall we do that, dear Mr. X and dear Mr. Y?"

A well structured line of communication is critical for a clarifying conversation
Basic rules for having a clarifying conversation
• Eye-to-eye conversation (exceptions possible in certain situations)

• I-messages (feelings, emotions, perceptions, etc.)
• Addressing topics concretely
• Activate existing relationship levels
• Listening and understanding each other
• Conclude to clear agreements

There are a host of ways how feedback can be expressed safely
How to give feedback
Feedback in Cultures
• Western: well-timed, not given when you are
• Perception feeling emotional and followed by a question to
I saw …, heard …, read …, observed … ensure the listener understood your message
(inquire with: Is this correct?/Did I perceive this correctly?)
• Asian: preserving face and harmony is key and
• Describe the impact indirectness
To me this looks …; This caused … in me
• Emotions
I feel like …; I am ….; It makes me …
• Needs
I need …; It helps me …; It supports me …; It does me good …
• Plea (Expectation)
I ask you for …; What I ask of you …; I wish that you would …; My wish would be …; my Expectation is that …

In the case of factual conflicts, solutions can be negotiated
Solution-focused mediation approach– Supply and demand negotiation method 1/2
1. Achieve a positive starting point for solutions (hopes, wishes, miracle question)
2. Become aware of the differences between the current situation and the target state (scaling)
3. Consider and agree on concrete action steps
Solution-oriented supply and demand negotiation between people or groups:

• Step 1: Explanation of the procedure by the mediator
• Step 2: Development of offers and requests (separately; mediator commutes/supports)
• Step 3: Negotiate team results (together or as a fishbowl discussion)
− Offer sheets are presented one after the other; Opposite party says what is accepted
− Request sheets are presented; Verification of what is completed through accepted offers
− Open issues are negotiated; Willingness to accommodate is documented directly
− Agreed points are supplemented with dates, responsibilities, priorities, etc.
Each team creates an overview with offers and requests for the other team
Solution-focused mediation approach– Supply and demand negotiation method 2/2
Setting up the flip charts for the negotiation round
Offer from Group B Demand from Group B

to Group A to Group A
Damit
OfferIHR eure
from Arbeit
Group A Damit WIR
Demand unsere
from Arbeit
Group A
bessertomachen könnt,
Group B bessertomachen
Group Bkönnen,
bieten WIR euch Folgendes an: bitten
So that YOU can do your So that WE wir
can EUCH
do ourum Folgendes:
worka)better, WE offer youzeigen
Neu/mehr/öfter worka)better, we ask YOU zeigen
Neu/mehr/öfter
the following:
b) Nicht mehr/weniger zeigen the following:
b) Nicht mehr/weniger zeigen
a) New/more/show more
c) Beibehalten wie often
bisher a) New/more/show morebisher
c) Beibehalten wie often
b) No more/show less b) No more/show less
c) Maintained as before c) Maintained as before

Course Overview
4. Exercises 1
9. Exercises 2

Hard on facts, soft on people
Exercise „Communication“
A western negotiator tells a story that happened to him: „I have been negotiating in China on a regular basis.
One thing which is extremely positive and has helped us a lot - both the chinese party and ourselves – is the
fact that throughout these years in negotiating with the Chinese I have met Chinese lawyers only once. And
that was in Changchun in Manchuria, during a joint venture negotiation. One day, two Chinese lawyers from a
law firm in Changchun were brought in. But the following day, they did not come. So I asked the Chinese party:
„Where are the lawyers?“ Then they said „We trust you, because you know the Chinese rules much better than
they.“ When I negotiate, I always bring with me the text in Chinese of the Chinese laws and, on the other side,
the English translation. So, when the lawyers started arguing with me about the law, I said „You‘re wrong,
please read the law.“ Several times they had to back off. Then the Chinese party said „It‘s better we stick to the
German, because he seems to know Chinese law better than our own lawyers do.“ We always apply Chinese
law in our contracts; always only Chinese law. So I have to know the Chinese law and be able to understand it as
well as I can. In some cases I am the only one around the table who has read the Chinese law … Yes, they
trusted me, because I did not try to alter Chinese law, but could show the wording of it. Everything in the
contract is governed by Chinese law. So I have an interest in not being in conflict with Chinese law. People often
say it is very difficult to negotiate with Chinese, and they spend weeks doing it. But we usually come to a
conclusion very quickly.“
Why was the western negotiator‘s directness not a violation of face?

Japanese & Arabic culture exercises
Exercise „Cultural Differences“ 1/3
Answer the following scenarios and explain your decision:
1. After exchanging letters for several months with a Japanese company, they have agreed to a meeting in
Tokyo. You will be seeing them for the first time.
Why are they offering this meeting to you? What will the meeting be about?
2. You have been negotiating with Mr. Yamamoto of Nihhon Metal company for a year. Having established
rapport with him, you hope that you are close to a contract. However, for three months, you haven’t heard
anything from him, and after calling, you find out that he has been transferred.
What should you do? What does this mean for your potential contract?
3. After several contacts with your Arab counterpart, you arrive to present your company’s offer for a joint
venture. You expect your contact to visit you after dinner.
What should be the first thing you do after your arrival?
4. You are traveling to an Arab company to present your new product to them. After your presentation, you
feel that the members of the committee do not yet comprehend your product’s features. You fear that you
will loose the contract if you cannot convince them.
What should you do?
Arabic & U.S.-American Culture Exercises
Exercise „Cultural Differences“ 2/3
Answer the following scenarios and explain your decision:
5. You have been considering a local distributor in one of the Arab countries. Before making a final decision,
you visit your potential distributor.
What strategies might he employ to persuade you to choose them?
6. You are in a negotiating session with an American company. They present you with their price list.
What does this mean for negotiation? What might they say about price/quantity?
7. You are negotiating a joint venture agreement with an American firm. You want to persuade them to cut the
price by 15 percent. You also have offers from their competitors that are willing to give you a cheaper price
but you really like this company and would prefer them over the competitors. Hence you will further
negotiate with them and will try to get the price cut.
What should you say to achieve the price cut?

U.S.-American Culture Exercises
Exercise „Cultural Differences“ 3/3 (1)
I remember a particular negotiation in Mexico a few years back involving several days of meetings. Despite the time we would
all agree to begin, each meeting would inevitably begin at least 10 to 30 minutes later. It wasn't merely that people who were
to be there were arriving late. Many, in fact, would arrive on time. A few would even be a few minutes early. None, however,
was prepared to begin business at the stated time. While waiting for the ones who were actually late to arrive, those who
were already there would take their coffee and use the time for socializing or conducting other business on the phone or off
to the side with their associates. Finally, once everyone had arrived, business would more or less begin.
Although an agenda was passed around and agreed on beforehand, the Mexicans would often introduce topics not previously
discussed, while ignoring some that were slated to have been discussed at the meeting. Often the American I was with would
become suspicious of the Mexicans when this happened, and the Mexicans, in turn, would either become suspicious of or
hostile toward the Americans. Inevitably, we would not get to cover all the things the Americans were hoping to discuss
within the time frame allocated in the agenda for the meeting, and just as inevitably, the Mexicans would be disappointed
that their points, as well, were not covered sufficiently. However, the Mexicans were always content just to continue the
discussions, especially when it was about their points, whether or not they had been previously set in the agenda and even
beyond the time allocated for the meeting if necessary. They often resented the Americans' need to end the meeting at the
prescribed time in order to meet other commitments, concluding that the Americans were not really interested in what they,
the Mexicans, considered important.
Continue on next slide

At the beginning of one of our meetings, several days into the negotiation, it was I who was waiting to begin. One of the
members of our team, a Mexican, had not arrived yet. It was not until 45 minutes later that she arrived, While I, and several
others on our team, were quite distressed, none of the Mexicans, on either team shared our anxiety. Later, during a break, I
inquired what has happened to make her arrive so late during such an important meeting, and she calmly explained that she
had gotten a phone call earlier that morning from her sister. There was some sort of problem, and she has to go over and help
her. I was so astonished at the matter-of- factness of this answer that I remember feeling quite speechless, yet what I wanted
to do was ask very angrily why she hadn't at least called us to let us know there was a problem. However, from the reaction of
the other Mexicans, or, more specifically, from their lack of reaction, it became clear to me that she hadn't called precisely
because, from the Mexican perspective, there was no problem. I was the only one with a problem.
In addition to the Mexican disregard for promptness, one of the first things I had to adjust to during this negotiation was the
pace of the day. Even when we all sat down, the business at hand was rarely what was addressed first. Sometimes we would
get to it quickly, but then be distracted by a point someone would make, and when I or one of the other Americans on the
team would try to get the negotiations back on track, the Mexicans would often not cooperate, as if preferring to stay off-
course and finish discussing this secondary point. The problem for me was that I was having trouble maintaining priorities,
with point A giving way to point sub-A, which in turn gave way to points sub-sub-a and perhaps B, then sub-B, and so on. To
make matters worse the Mexicans didn't seem to mind giving equal importance to any of the ancillary points being brought
up, sometimes giving significant weight to them and not wanting to return to the main point.

I found this extremely frustrating, time-consuming, hopelessly distracting, and inefficient. Yet, despite my best efforts to re-
route the discussions, I failed time and time again.
Even the day's schedule was problematic. While we would get started somewhere between nine and ten o'clock in the
morning, and have several breaks for coffee, lunch did not begin until around two o'clock. Invariably, the American tummies
were growling by twelve, and American patience, given the other things at work, would wear increasingly thin. Noon to two
was often a waste of time as far as the Americans were concerned, for hunger made them lose their attention, and anyway,
all sorts of miscellaneous conversations would be going on. When we finally broke for lunch, we wouldn't return till about 4
p.m. - close to the end of the working day for most Americans, while the Mexicans were ready to return to the negotiating
table for a few more hours. By the afternoon session (which for the Americans was really early evening), the points of the
morning were often up for bargaining and further discussion, making for some lively conversation. Just as my energies were
flagging, particularly after a much heavier lunch than I'm used to in the States, the Mexicans seemed to gather steam. The
style, as well as the content, of the conversation now was often confusing, with many people speaking at once, sometimes
very emotionally. In addition to having trouble keeping track of the content, the other Americans and I would also be having
trouble now following the content being discussed. But the free-for-all style of the communication wasn't the end of our
problems.
At one point in the negotiation, a very elegant, well-dressed woman appeared in the room. All the Mexicans recognized her
and showed her great respect. She was introduced as the wife of the president of the Mexican company, and, in fact, she had
arrived specifically to show her husband the new coat she had just bought.

For the time being, the negotiation came to a complete halt while the Mexicans admired her coat, chatted a bit with her and
her husband, and introduced her to all the Americans at the table. I was convinced that if she stayed just a few moments
longer she would become part of the Mexican team, but she excused herself gracefully and left. While English was the
agreed-upon language for our discussions, at this late stage in the day the Mexicans would often break into long statements in
Spanish and certainly spoke Spanish among themselves. Most of the American negotiators spoke, or at least understood,
some Spanish, although there were a few Americans on the team who neither spoke nor understood Spanish. At this point in
the day, we were uncomfortable reminding the Mexicans that we needed them to return to English. They inevitably seemed
to us somewhat resentful when we did press the point, and yet it was an absolute necessity in order for us to make any
progress.
I remember one particular late afternoon session, when it seemed as if all of the above was taking place all at once, and
tensions were rising. Clearly, nothing was going to be resolved at this meeting, and what we all needed was a break in order
to defuse, decompress, and redefine. I was just about to suggest something along these lines when a mariachi band came
strolling out of the distance and struck up a wonderful rendition of what I later learned to be an old Mexican favorite right
below our window. There was no way anyone could continue. The Americans were stopped dead in their tracks, and the
Mexicans immediately wanted to stop and listen. One or two began to sing along. My Mexican opposite number leaned over
to me, smiled and said, "Well, that's Mexico!" As the mariachis went from one song to another, conversation moved to dinner
that night, a few non-problematic minor points of business, and the setting of tomorrow's agenda (which we all knew would
not be adhered to anyway). The negotiation for the day had come to an end.

As the meeting moved on, it became clear to us that there would still be many important points that were going to be
unresolved by the time we had to return to the States. Additionally, the new points that the Mexicans were now raising were
creating concerns that we didn't have answers for immediately so that they, too, were going to have to accept some
unresolved problems by the end of our scheduled round of talks. In fact, the morning of the next-to-the-last day was spent
trying to figure out ways to schedule additional meetings within the next two months. In this discussion, the Mexicans kept
trying to reassure us that there was no need to schedule additional meetings to discuss the points for which we felt more
meetings were necessary, while pushing for another meeting or two in order to discuss some points that we felt we didn't
need additional meetings for. Clearly, what merited mutual attention was quite different for the two teams.
We found ourselves trying to convince the Mexicans that their concerns would either have to be taken care of over time or
were not the most pressing issues of the moment, and that, once the more pressing issues were agreed on, their concerns
would automatically be dealt with. Meanwhile, the Mexicans kept trying to reassure us that they would be able to follow
through on the decisions we had already made and that everything would turn out just the way we wanted it to, once the job
was begun. In fact, we had experience with the Mexican team before and felt that, despite their reassurances, it was mainly
well-intentioned rhetoric and that follow through, without clearly agreed-upon terms, was simply not going to happen.
By the end of the negotiation, of course, we had not covered the points we thought were really important in enough detail to
ensure movement. Nor, in the eyes of the Mexicans, had we allowed enough time to discuss all the things they felt were
important. Both sides walked away from this negotiation frustrated and somewhat confused, with little to show for the effort
and with a less secure platform from which to move forward next time - should there be a next time.
Try to identify the major cultural problems that hindered progress in the US-Mexican negotiations.

New organizational and leadership structure
Exercise „Solving Conflicts“ 1/3 (1)
1. In an international retail group, the organizational structure and thus also the management structure is being reorganized. Up to now, the
company has been divided very functionally into different purchasing-related product areas and sales units. The respective product and sales
areas were the responsibility of mostly very experienced and long-established managers.
The new strategy is to reorganize the product areas from the customer's point of view and also to give them a stronger sales orientation. To
this end, a new management level of business unit managers will be created under the Executive Board. The former heads of the product areas
will be assigned to these new business unit heads accordingly; their remit will be expanded or reduced in some cases. The following situation
arises in one of these newly created business units: The new business unit head is an ambitious and talented executive from within the group
with strong marketing and sales experience, but without any major knowledge of product management. The previous person responsible for a
very high-turnover product area has recently retired, so the head of the business unit is managing this area himself on an interim basis.
In the future, he would like to reorganize all his product areas and also give a talented product manager from the second row the chance to
take over a larger product area with a new, customer-oriented focus. In addition, it would be a good idea for one of the product area managers
to transfer some of the products to another product area manager, as this would be a very good thematic fit.
The new business unit manager is therefore considering placing the product area manager who is to hand over a part in the vacant position of
the product area whose manager has retired. This manager has many years of experience in different areas of product management and very
good international supplier relations. He is also considered to be very authoritarian, argumentative and also very critical of the new strategic
direction. However, in discussions with the new business unit manager so far, he recognizes his conceptual and strategic competencies.

New organizational and leadership structure
In a discussion, the new business unit manager offers this manager the prospect of taking over the new or vacant product area, which also
accounts for the largest share of the business unit's sales and earnings. The two agree to think about the possible takeover and its structure
and to discuss this further in the near future in order to reach a decision in good time.
After this discussion, one of the department managers from the product area in question approaches the new business unit manager and
informs him in confidence that the manager in question is already introducing himself to the departments in the business unit and announces
that he will be the new manager. He also already starts to intervene in the operational work.
Work order:
• How should the new business unit manager behave in this case?
• What alternative solutions do you see?
• How should the further process be structured?

Escalation of the management structure and the working climate
2. In a group of companies with the areas of e-commerce and supply chain management, the organizational and management structure has
undergone major changes in recent years. Until a few years ago, the logistics department was headed by an experienced manager who
reported directly to one of the group's managing directors. This division manager headed five department heads for the respective functional
areas of logistics.
Following the departure of the division manager, one of the department managers took over this function. In addition, the Logistics division,
together with two other business units, was transferred to an independent company. This is managed operationally by a relatively new
managing director from the Group. He also has further responsibilities within the Group for finance and human resources.
The new logistics manager promoted one of the previous department managers to the new division manager, who reports to him and who
manages two previous departments. The vacant department manager's job, on which the new logistics manager had previously sat, was
transferred to a specialist from the department who is very inexperienced in managing employees and also has her weaknesses conceptually.
This department, as well as another department managed by a long-time employee who was technically adept, was transferred to another
new department manager who was new to logistics from the corporate group. The last of the previous five department managers was not
touched in terms of duties. He reports directly to the new logistics manager, but consequently does not have the function of a divisional
manager.
The organization has not run smoothly in this structure to date. The operational performance targets have not been met for some time.
The employees are dissatisfied because there have been cuts in compensation due to the relatively poor business development.

The new logistics manager is disappointed with the management because, in his view, he receives too little support and also partly disagrees
with the strategic framework conditions.
The manager appointed by the department head as the new division manager, who had previously worked together with the new logistics
manager at the same level for many years, is also very dissatisfied in the new constellation. On the one hand, he is in charge of two newly
appointed department managers who, although technically good, are not very experienced in terms of concept and management. On the
other hand, he feels that he receives too little information from the new logistics manager about the general conditions of the management,
and he also feels that the new manager talks far too much into his operational business and thinks he knows everything better. Anger and
resignation are therefore spreading among him. In this respect, he has formed an alliance with his division manager colleague. Nevertheless,
he is still loyal to the logistics manager.
The second new division manager is also in a difficult situation because, on the one hand, he leads the new department manager, who is
relatively overburdened in terms of concept and leadership. Furthermore, he leads a veteran department manager who, in the old
organizational structure, reported directly to the logistics manager and has always led his department in the old manner, making the new
department manager feel that he has far too little idea of the technical subject matter. In addition, however, the new division manager also
doubts the leadership competence of the new logistics manager.
In this respect, there is an overall poor working atmosphere with managers being overtaxed, actual and perceived information deficits and a
high level of fluctuation at employee level.
Work order
• Against this background, the management needs a viable solution quickly. They ask you as a consultant or also as a mediator to develop
approaches for the different conflicts.
• Outline and explain what such a solution approach could look like and which conventional as well as complementary solution approaches
should be used from your point of view and how these should be structured to find a solution.

Supply and demand negotiation as an approach to finding solutions
Exercise „Solving Conflicts“ 3/3
3. Supply and demand negotiation is a procedure for resolving group-related conflicts within the framework of solution-
focused mediation. Please refer to the explanations in chapter 3.
Work order
• Create a self-selected conflict situation with your group in which there are clearly different interests between two groups.
This can be a company-related conflict, such as diverging interests between the purchasing and sales departments.
However, it can also be a situation outside the company environment, e.g. from the private, political or social
environment.
• Play through the solution approach of supply and demand negotiation for this conflict situation and find a mutually
acceptable result at the end.

Course Overview
4. Exercises 1
9. Exercises 2

Negotiations help exchange things we value less for things we value more
Definition Negotiation
• A negotiation is the discussion of the exchange of goods, services or other tangible or intangible
items between two parties
• It is the process by which we search for terms to obtain what we want from someone who wants
something from us (Exchange things we value less for things we value more)
• Helps to create value through agreements & to make both parties better off
• Considers three dimensions:
− Interests – WHY we want something (reveal our key motives)
− Issues – WHAT we want (measure how to meet key interests)
− Positions – HOW to achieve this & specific requirements (range of acceptable outcomes)
e.g., Interest = Buying a new car, Issues = more income, Position = $5,000 more a year

Negotiation is governed by multiple interlaced factors
Factors influencing negotiation
• Strategic factors (presentations, strategy, decision making)

• Process (pre-negotiation, face-to-face negotiation, post-negotiation)
• Cultural factors (time, individual vs. collectivism, pattern of communication, emphasis on personal relation)
• Background factors (objectives, environment, third parties, negotiators)
• Atmosphere (conflict/cooperation, power/dependence, expectations)
Communication is key to avoid “Fixed pie” bias:

Both parties know what they want and assume the
others want the opposite!

Negotiation balances competition and cooperation between two parties
Guidelines for negotiation
Negotiating is “the art of letting them have your way”. (Daniele Varen)
• In a negotiation both parties look after their own interests whilst trying to form a deal
• Negotiation should be balancing the will for competition and cooperation with the counterparty whilst
advancing your own interest and shaping the other party´s decision
• Communication, relationship and exchange of information are vital to successful negotiation
In international negotiation
• Be aware of differences in cultural factors that might influence negotiation behavior, style and interests
• Employ a culturally responsive strategy to avoid difficulties in synchronization, inefficient deals and ruined
relationships

The Harvard concept aims at finding solutions in a consensual and
constructive manner
Negotiation concept according to Harvard (based on Fisher and Ury 1981)
1. Factual discussion
− No attacks and blame
− Separation of factual and relationship level („hard“ on the factual but „soft“ on the relationship level)
− Active communication and empathy
2. Focus on interests
− Consider both your own and the other party‘s interests (win-win situation)
− W-questions to gain deeper insight into the other party‘s needs and demands
− Avoid vehemently defending your own position and haggling
3. Develop alternatives
− Develop several possible solutions (in advance as well as together during the negotiation)
− Evaluate the alternatives in terms of their feasibility and the different interests involved
4. Determine objective decision criteria

− Decide on the basis of factual, objective criteria (increases acceptance of the negotiated solution)
− Determine BATNA (Best Alternative To Non-Agreement) before negotiation and observe it without fail

There are different levels of efficiency in the outcomes of a negotiation
Pareto-efficiency in negotiations
Level 3: Pareto-optimal Everything you and your counterparty wanted

= the best win-win outcome possible, all desired could be fulfilled and you even added more
outcomes have been fulfilled perfectly and
additional
value to the deal
Level 2: Win-win
= both parties achieve their acceptable outcomes You and your counterparty walk away happy
and maximize value creation by working together with the value created in the deal
to meet the other’s interests
Level 1: Mutual settlement

= both parties compromise on issues and make Through mutual compromise and concessions,
equal concessions, compromises to achieve you can find a mutually benefiting outcome
acceptable outcomes
Level 0: BATNA
= Best Alternative To Non-Agreement Negotiation has failed and you have to must
Most advantageous alternative that a negotiating (e.g., other deal with other company)
party can take if negotiation fails

BATNA helps you make decisions about final offers in a negotiation
The Best Alternative to Non-Agreement (BATNA)
BATNA = Best Alternative to Non-Agreement (no-deal option)
• Let’s you know if you should accept a final offer or walk away from it to pursue other options
• Answers the question of “What will you do if current negotiations end in no deal?”
• Prepare your BATNA before entering a negotiation!

• Filter out all plausible alternative options and estimate their value then select the best alternative = BATNA
• Potential impacts of unclear or no BATNA:

− Rejecting an offer that is better than your alternatives
(being too optimistic without knowing your options)
− Accepting a weaker offer than what could have been obtained alternatively elsewhere
(accepting just for the sake of having closed a deal)
• Assess the other party’s BATNA before entering a negotiation to know about the strength of their alternatives
• Influences your bargaining strength, how far you can push the other party and what their exit point (RV) is

Reservation Values are the gateway between BATNA and Settlement Range
Reservation Value (RV)
• Establishing your Reservation Value (RV) helps you to know when to walk away from a deal
• = Point before BATNA starts to be more valuable or less expensive (exit price)
• Depending on what side you’re on (Buyer/Seller) it consists of the following value:
• as the Seller → minimum price at which you’re willing to set the offer
• as the Buyer → maximum price at which you’re willing to accept the offer
Buyer’s Alternatives
Buyer’s Settlement Range
Buyer’s BATNA
Buyer’s Desired Price Buyer’s Worst Case (Walk away Point = Buyer’s RV)
• => If the Seller’s RV > Buyer’s RV → deal is impossible

Be aware of your BATNA, RV and potential ZOPA before entering a negotiation
The Zone Of Potential Agreement (ZOPA)
Seller’s Worst Case (Walk away Point = Seller’s RV) Seller’s Desired Price
Seller’s Alternatives
Seller’s Settlement Range
Sellers’s BATNA
ZOPA
= Zone of Potential Agreement
Buyer’s Alternatives
Buyer’s Settlement Range
Buyer’s BATNA
Buyer’s Desired Price Buyer’s Worst Case (Walk away Point = Buyer’s RV)
poweredtemplate.com/de/batna-negotiation-diagram-81689/

The mindset of a negotiator heavily influences the communication
Types of negotiators
Red players’ mindset Blue players’ mindset

Results driven Relationship driven
Pursues their own interests Fairness and equity, by serving the other party’s interests as
Seek zero-sum outcomes well as their own, better deals are possible
Competitive, other party: opponent Seek cooperation
Win by defeating, exploiting the opponent Other party = partner
Dividing up a fixed pie: Enlarging the fixed pie, creating new pies; both parties are
getting more from the division than they would otherwise
enjoy.
“More for me means less for them.” “More for me means more for them”
Legitimate to push harder when the opponent are soft Belief in a superiority of a good cause, not in the power of
enforcement
Use ploys and tricks, Be open and play it straight, eschew manipulation
Bluff and coerce to manipulate opponent for one-sided gains
Negotiation goal: Seek always to win Negotiation goal: Seek to succeed (not to win in a selfish way)
All deals are “one-offs” All deals could lead to other deals

Types of negotiators will display a different behavior during a negotiation
Negotiator’s behavior
RED behavior BLUE behavior

• Give and take, exploiting others’ errors/weaknesses • Getting to YES by leading negotiations on the merits
by becoming more adept at playing “tough” • Attempts at turning conflictual stances into joint
• Aiming high produces better results than aiming problem solving
modestly • Based on non-adversarial attitudes and belief
• Strategy that enhance your “hardness” at the systems
expense of others “softness”
PURPLE behavior:
• Based on realisation that negotiating red vs. blue is a dead end as long as both are separated
• Link what you want (red) with what your counterpart wants (blue) to produce a purple offer to
exchange the one with the other (“You will get nothing from me unless and until I get
something from you.”)

Be aware of potentially prevalent responses to negotiation factors
Determining negotiation styles
Negotiation Factor Range of Responses

Goal Contract Relationship
Attitude Win/lose Win/win
Personal style Informal Formal
Communication Direct Indirect
Time sensitivity High Low
Emotionalism High Low
Agreement form Specific General
Agreement building Bottom up Top down
Team organization One leader Group consensus
Risk taking High Low
Selection of negotiators Experts Trusted associates
Protocol Informal Formal
Contracts can vary depending on the cultural orientation
Contracts and culture
Differentiate these two types:
Deal-oriented countries Relationship-oriented countries

• Entails numerous detailed and • Place faith in the spirit of the
complicated clauses that cover all agreement
potential contingencies and punitive
• Extensive clauses convey a message of
measures
distrust
• Emphasis on formality
• Contracts tend to be general in scope
• Legal enforceability and ambiguous in detail
• Conflicts are solved through litigation • Problems are discussed and resolved
without legal intervention

Course Overview
4. Exercises 1
9. Exercises 2

A Negotiation has multiple steps to follow
The individual parts of a negotiation – overview
In business as in life, you don´t get what you deserve you get what you negotiate! (Chester L. Karrass)
1. Preparing negotiations
2. Establishing Rapport
3. Exchange of Information
4. Persuasion
5. Conclusion and Agreement
6. Post negotiation

Obtaining information and sorting priorities before negotiation is vital for success
Preparing negotiations (Framework for value creation)
1. Identify your multiple interests, issues, and positions

2. Think about all interests and issues that you value and that the other party might provide
3. Know your BATNA and predict ZOPA! Don´t take anything for granted!
2. Identify the other party´s multiple interests

3. Try to understand interests and priorities of your counterparty prior to negotiation by gathering information
4. Take note of all issues the other party prioritizes highly that are of little importance to you
3. Creating a scoring system

4. Prioritize your interests and establish a ranking order of priorities (different priorities invite trades)
5. Grade by using “crucial” (= deal breakers), “important” (= failure will not cancel the deal), and “desirable” (= nice to have)
6. If BATNA is an alternative offer, enter the specifics into the scoring system
4. Calculate an overall package reservation value

5. RV can limit options and flexibility (counterparties might compensate lack in price with other concessions such as service,
guarantee or work for free)

Establish BATNA, RV and ZOPA for both parties before entering negotiation
The 5 Step pre-negotiation framework
• Step 1 – Assess your BATNA (no-deal option)
• Step 2 – Calculate your Reservation Value (RV, walk away point)
• Step 3 – Assess the other party´s BATNA
• Step 4 – Calculate the other party´s RV
• Step 5 – Evaluate ZOPA and the set of all possible deals that would be acceptable to both parties

Relationships are built over affective trust
How to establish Rapport
1. Choose your communication mode carefully

• Meet in person, leverage communication in informal settings (dine and wine)
• Proportion your phone calls (use it for social talk and business, listen for cues)
• Adopt your E-Mail style (inadequate for cold calls, no relationship, no response)
• Conversations (establish the appropriate social connection first)
2. Before having dinner: Search for common interests, and inform yourself about regional sports, artists, etc.
3. To get a good deal, strengthen your relationship and manage the other party‘s perceptions
4. Make the other party feel respected!
BUT – The role of affective trust for establishing relationships will vary across cultures

Cultural differences for the exchange of information steps
Exchange of information 1/2
American Japanese Arab

Most important stage Part of the entire negotiation process Most important stage
At the negotiation table: Persuasion behind the scenes Bargaining attitude
• change of minds
• decision-making
opportunistic, loss or gain of deals
Tools: Concessions: Language and emotions used for
• urgency - no trading responses and decisions
• time pressure - follow a recess
• discounts - require prior group consent
- towards the end of negotiations
Sequential approach to decision- Holistic approach to decision-making Long-range profits, use of
making mediator
Short-term, Long-term, Use of intuition, religion

Deal-oriented Relationship-oriented administration, status
Sharing information helps advance in a negotiation
Exchange of information 2/2
Strategies for extracting information from reticent negotiators:

1. Build trust to create the willingness to share information (prior, during and after negotiation)
2. Ask questions and know HOW to ask them
3. Give away some information
4. Negotiate multiple issues simultaneously
5. Make multiple offers simultaneously
6. Contingency contracts
• Decide on how much of your interests, issues and positions you are willing to share with your counterparty
(depends on established trust, relationship, cultural orientation, etc.)
• Employ active listening:
− Show the desire to listen
− Let your counterparty do most of the talking (30/70 rule)
− Do not interrupt your counterparty when speaking
− Ask clarifying questions when necessary
− Learn to “listen” for nonverbal cues and messages (body language, gestures, etc.

Strategies for extracting information from reticent negotiators 1/4
Understand and speak their ‘language’:

− Executives from different firms and industries speak different languages (technical jargon).
− Take time to study the client’s industry.
− Pick a representative with experience in the client’s industry.
Increase the ties that bind beyond a purely business-oriented relationship 1. Build trust and share
(informal meetings, family, common friends, community) information
Build trust when you are not negotiating:

− Make trust building activity not appear to be self-serving.
− Keeping in touch beyond deal negotiation.
− Deliver better product than promised.
− Pass along unanticipated cost savings.
− Behave ethically at all times

Sharing information helps advance in negotiation
Ask your questions

2. Ask questions and
− More likely to be answered if you ASK them! know HOW to ask them
− Important questions should be asked indirectly
e.g., tell me more about your organization? How does this deal fit into your overall business strategy?
Leverage the norm of reciprocity

− Be the first to give away some information →other party will reciprocate 3. Give away some
− You choose what information, doesn’t act like a response information
− Share information incrementally and in turns →both are vulnerable
− Share information about your relative priorities without minimizing the absolute importance of any issue
− Sharing information reduces anxiety to be come vulnerable and helps identify trades that will allow the
negotiation of multiple issues and hereby maximized value creation

Sharing information helps advance in negotiation
How to get a clear understanding of the other party’s priorities

− Open up a discussion with multiple issues 4. Negotiating multiple
− Put the other party in a position where they must prioritize issues issues simultaneously
− Look for the following signs from your counterpart:
− Which issues do they want to return to constantly?
− Which issues make them most emotional or tense?
− Which issues are they most obstinate about when asked about compromise?
− Which issues are they most likely to talk about rather than to listen?
Elicit information from the other party without them knowing

− Make two simultaneous offers equal in value to you but slightly different
5. Make multiple offers
− Offered options signal your interest in understanding the other party’s
simultaneously
needs, preferences & show willingness to accommodate
− Record the response of your counterpart

Potential responses of your counterpart

− Preferring one over the other →What value does this option have that the other hasn’t?
− Not accepting any of the offers →Ask them why and what would have to change?
5. Make multiple offers

simultaneously
Contingency Contracts as “Failsafe systems”

− Putting aside differences by betting on being right and holding the other party accountable if they were
wrong (helps stop arguing about differences in beliefs)
− Can rescue deals if the expectations of both parties are extremely different.
− Create expected value (contingency contract about projections)
− Can protect parties from dishonest negotiators. 6. Contingency
Contracts

During persuasion try and focus on the other party
Persuasion
• Focus on the needs of the other party

• Take time to listen to them carefully and find out about their interests and expectations →shows true interest → they are then
more likely to trust and respect you
• Argue your case with logic
• Do careful research on your ideas and those of your competitors (if there are any) and make sure that claims can be verified.
• The more hesitant language you use such as "isn't it", "you know", "um mm" and "I mean" the less people are likely to believe your
argument
• Use positive rather than negative language
• Instead of saying "You're wrong about this", say "That's true, however ...", "That's an excellent idea, but if we look more deeply ....."
or "I agree with what you say but have you considered ....".
• Subtly compliment the other party
• For example: "I see that you've done some really excellent research into this". Even though they may realize this is being done,
evidence shows that they will still warm to you and be more open to your proposals.
• Try to remember the names of everyone you meet
• It shows that you are treating them as an individual.

Nine strategies that can be used to influence and persuade during negotiation
Distinction between persuasion, negotiation and influence
Persuading involves being able to convince others to take appropriate action.

Negotiating involves being able to discuss and reach a mutually satisfactory agreement.
Influencing encompasses both of these. (Wigan & Leigh College)
Strategies of influence and persuasion are:

1. Highlight potential losses rather than potential gains
2. Disaggregate your counterpart’s gains and aggregate their losses
3. Set an agreeable and accommodating mood (“String of yes”)
4. Employ the “door-in-the-face” technique
5. Use the “foot-in-the-door” technique
6. Leverage the power of justification
7. Utilize the power of social proof
8. Make token unilateral concessions
9. Use reference points to make your offers and demands seem more reasonable

Perceived outcome can vastly differ from party to party
Conclusion and Agreement
How content is each party with the final outcome?
• Satisfaction about the reached agreement is pure perception about how well the counterparty THINKS
they did, NOT how they actually did
• Analysing how satisfied each party is with the final outcome
• What strategies did work during negotiation?
• Is the relationship with the counterpart strengthened/weakened or even damaged? (pushed to hard?)
Hint: Try and note down as many details about what worked
with the counterpart as well as where and how you parted
after conclusion and possible agreement to prepare for the
next negotiation and learn from mistakes made!
Post negotiations can help further improve the existing deal
Post negotiation
• Seek out Pareto improvements even after the deal is signed

→ Creates an optimistic environment -> both parties = less anxious, more willing to share information
• Make clear at the outset you are NOT looking for a new agreement, trying to extract last minute concessions,
reneging on the deal but rather that you are looking for an IMPROVED agreement
• The signed agreement becomes new BATNA (either both benefit from the new deal or they´ll stick to the
current agreement)
• Post-settlements
• Can facilitate logrolling.
• Help identify and add issues that were not part of the initial negotiations.
• Think outside the box: potential future deals?
Course Overview
4. Exercises 1
9. Exercises 2
There are a multitude of potential traps in agreements
Potential traps of bargaining styles
Probability of agreement: Value of agreement:

Agreement decision Quality of Outcome
Agreement bias Winner’s curse

SOFT
Agreeing to deals that are worse Failing to claim outcomes for themselves
bargaining style than their alternative (settling for too little)
Bargaining arrogance Lose-lose outcome

HARD
Walking away from deals that are Failing to create outcome that benefit both
bargaining style better than their alternative parties (leaving money on the table)
Always pay attention to existing problems, interests and positions
Common negotiator’s mistakes 1/3
1. Neglecting the other party´s problem

• put yourself in the other person´s shoes
• find out what the other party wants of the deal (focus on interests/issues)
• help solving your counterpart´s problems as a means to solving your own
2. Letting price bulldoze other interests

• Understand all critical concerns (interests of the full set of player)
• price is important, but people care much about the absolute level of their own economic outcome
• keep all of the issues on the table (nothing is agreed on until everything is agreed on -> package deal?)
• pursue a tradable approach (use a tradable price with other tradables to promote a settlement)
3. Letting positions drive out interests

• do not assume a positional approach (fixated on price & bargaining position to claim value)
• pursue an interest-driven approach:
− reconcile interests to create value -> requires patience & willingness to research other party (ask questions, listen)
− bolster your flexibility not commitment, create multiple equivalent offers to satisfy the other party´s goals
• recognize and manage the tension between the creation of value (cooperative actions) and claiming value
(competitive actions)
Correct and remind yourself of your position during negotiation
4. Search too hard for common ground

• Actively search for differences (can be converted into gains, help overcome deadlocked deals and give each party
what it values the most at the least cost to the other (sinai))
• Referring to contingency clauses to help overcome differences in future expectations
5. Neglecting BATNAs
• Any acceptable deal must exceed what you get with your BATNA
• Do not neglect the BATNA of the other side
• The better your BATNA appears both to you and your counterpart the more you can leverage your BATNA to improve
the deal
6. Failing to correct for Skewed Vision
• Biased perception of the own side (self-serving role bias) -> tendency to feel like you have the superior arguments
• Biased perception of the other side (partisan perception) -> bias in assessing the other side -> can lead to
exaggerated perceptions of the other side´s position & self-fulfilling prophecies that shape behaviours of both sides
• Fight partisan perception by expecting biased perceptions on both sides, be aware of the unconscious biases, reality
test your views with outsiders, reverse role playing, prepare the strongest case for the other side
Listen and establish a strong position before making a first offer
→ Interests always outweigh the importance of the price! (e.g., car example with repair -> time/price)
→ Always try to have a strong BATNA before entering negotiations
7. Making the first offer when you were not in a strong position to do so
8. Making a first offer that was not sufficiently aggressive
9. Talking but not listening
10. Trying to influence the other party but not learning from them
11. Assuming that your assumptions are correct & not challenging them
12. Miscalculating ZOPA and not re-evaluating during negotiations
13. Making greater concessions than the other party did
Exercise caution and save face in difficult negotiations
Recommendations for negotiations in difficult cases (based on Schranner 2009, Polwin-Plass 2016).
1. Negotiate carefully so as not to jeopardize the conversation

2. Identify the scope for negotiation and set the anchor
3. Make concessions only if there are quid pro quos, i.e., do not compromise
4. Never give in, especially when tactics come into play
5. Avoid refusals and a general "no“
6. Increase own demands if necessary
7. Be careful with threats
8. Saving face is a key component
9. If the conversation breaks off, retract the offers made so far
10. Do not play for time and do not adjourn
Course Overview
4. Exercises 1
9. Exercises 2
Feelings of desperation about weak BATNA can lead to inferior negotiation
positions
Negotiating from a weak BATNA
• Feelings of desperation in negotiation can lead to:

• Panic, accepting uselessness to negotiate
• Giving up hope of creating and claiming value
• Neglecting to prepare and execute negotiations carefully and systematically
• Focusing on getting the deal clinched at any costs (concessions and compromises)
• Strategies for negotiating from a weak BATNA are:

1. Don´t reveal that you have a weak BATNA
2. Overcome your weakness by leveraging the other party’s weakness
3. Identify and leverage your distinct value proposition (DVP)
4. If your position is extremely weak, consider giving it up entirely and simply ask the other side to help you
5. Strategize on the basis of your entire negotiation portfolio
6. Increase your strength by building coalitions with other weak parties
7. Leverage your own (extreme) weakness
8. Understand and attack the source of your opponent’s power
Use less revealing language and know the value you bring to the table
Strategies for negotiating with a weak BATNA 1/3
Strategy 1 – Don´t reveal that you have a weak BATNA

• Don´t advertise it & don´t make your desperation transparent
• Use less revealing language (e.g., “One of our preferences is to move ahead quickly” instead of saying “We can meet with
you whenever you have the time” → indicates desperation & reveals your weak BATNA)
Strategy 2 – Overcome your weakness by leveraging the other party´s weakness

• Having a weak BATNA is not problematic if the other party´s BATNA is weak as well
• Do not exclusively focus on your BATNA (evaluate the other party´s BATNA)
• Employ investigative strategies, strategies of creating and claiming value → large ZOPA
(both sides can bring a lot of value to the deal)
• Major blunder = ignorance of the value that you bring to the deal
Consider the entirety of your business relationship and its’ value in negotiation
Strategy 3 – Identify and leverage your distinct value proposition (DVP)

• What distinguishes you from your competitors? (higher quality, better product, strong brand, …)
• Be honest and choose assets that your customer actually values and that you can provide more effectively/cheaper than
your competitors → This is your DVP!
• Your ability to claim value is a function of your ability to create value!
Strategy 4 – If your position is extremely weak, consider giving it up and simply ask the other side to help you
• You may be better off giving your position up entirely
• Make clear you have no intention of negotiating aggressively → likely to soften the stands of the other party
Strategy 5 – Strategize on the basis of your entire negotiation portfolio

• Do not exclusively focus on current negotiations, consider your entire portfolio
• If you negotiate many deals with many different customers → be willing to lose some money in one negotiation to win
even more money in another negotiation
• Learn to distinguish between negotiators who accept a higher margin and those who don´t
Be prepared, know your value and consider coalitions with other weak links
Strategy 6 – Increase your strength by buliding coalitions with other weak parties
• Parties can gain bargaining power since they can no longer be pit against one another
• Other side‘s BATNA = weakened
Strategy 7 – Leverage the power of your own (extreme) weakness

• Point out how the other party would hurt themselves if they push too hard
• Show your value for the other party and hereby gain the power to claim value for yourself
Strategy 8 – Understand and attack the source of your opponent’s power

• Systematically prepare for negotiation and have a careful strategy design planned out prior to negotiation
• Those who think weak, act weak →avoid myopic look at own weaknesses and rather focus on value and strengths
Investigate your counterparty’s interests, priorities, needs and constraints
Investigative negotiation
During negotiation you should:

• Challenge assumptions, probe below the surface
• Discover your counterpart´s interests, priorities and constraints
• Identify the needs and demands your counterparty has
• Avoid revealing too much information about your own interests, needs, etc.
→Transform competitive zero-sum negotiations into maximizing value creation and value claiming
→Those who know how to gain information perform better than those who stick with what they know
Hint: Follow the 7 principles of investigative

negotiations to learn as much about the other party as
possible without revealing too much yourself!
Investigative negotiation tactics allow insights into what your counterparty wants
The 7 principles of investigative negotiation
1. Don´t ask WHAT, ask WHY (WHY do they want WHAT they want? Is there room for compromise?)
2. Seek to reconcile interests not demands
• Reveal underlying interests & think more broadly & creatively about agreements that satisfy interests of both parties
3. Create common ground with uncommon allies
• Avoid “my competitor is my enemy” approaches (one-dimensional)
• Explore, identify and leverage underlying mutual interests to create common ground
4. Interpret demands as opportunities
• Stop being defensive about demands, use information, see what demand tell you about other party´s needs & interests
5. Don´t dismiss anything as “their problem” (their problem can quickly become your problem, constraints can destroy value)
6. Don´t let negotiations end with a rejection of your offer (ask for an explanation/feedback & use it to improve your offer)
7. Understand the difference between “selling” and “negotiating”
• Selling = telling about features/merits of product & persuading the customer to buy it
• Negotiating = active selling + focus on other party´s interests, needs, priorities and constraints
(to maximize the deal value) -> requires less the ability to persuade but more the ability to listen
Employ evasive tactics, ask for justification and provide information
Responding to an initial offer 1/2
Strategy 1 – Ignore the offer and shift the conversation to a different topic
“Judging by your offer, I think we might be looking at this deal in very different ways. Let’s try to bridge that gap by discussing …”
Strategy 2 – Separate information from influence

• Be aware that anchors (initial offers) affect perceptions and counteroffers
• Ignore influence tactics, stick to your original game plan
• Use information to build pressure for your counterparty
• Provide Information and Influence to re-anchor:
“We have received a better offer from Company X. As a result, we think your initial offer is too low.
We would like you to increase it to $X million.“
Strategy 3 – Avoid dwelling on their anchor

• Asking for further justification enhances anchor effect
→The more an anchor is discussed in a negotiation, the more powerful it becomes.
• Shift attention away from anchor by sharing your perspective and defining the negotiation in your terms
Propose counteroffers and give them time to moderate initial offers
Responding to an initial offer 2/2
Strategy 4 – Make an aggressive counteroffer, then propose moderation

• Make aggressive counteroffer and suggest cooperation in bridging the gap: → deflates their anchor
“Well, based on your offer, which was unexpected, it looks like we have a lot of work ahead of us.
From our perspective, a fair price would be closer to $XX [your counter-anchor].
• Then propose moderation →shift from aggressive exchange to a quest for common ground
“I will explain to you how we are valuing this deal, but it appears to me that if we are to reach any agreement,
we will both have to work together to make it happen.”
• BUT proposing an aggressive counteroffer can lead to an impasse in negotiations
Strategy 5 – Give them time to moderate their offer without losing face
• Prime goals are to re-anchor successfully without showing anger whilst helping the other party to retract earlier demands
• If the other party’s offer is very extreme (far outside ZOPA):
− Inform them that their offer provides no basis for discussion
− Provide information about your own perspective and give a candid
− Invitation to reopen negotiations from a very different starting point
− Give them time to re-think (save face)
If the deal is too good to be true, question what you might have missed
Responding to an initial offer that is most attractive to you
1. Take some time to ponder the offer

2. Accept deal begrudgingly without enthusiasm
3. Make a counteroffer and ask for additional (nominal) concessions
4. Give something back in return to strengthen relationship and to enhance your reputation
5. Make them aware of mistakes
ALSO:
• If you are surprised by an excessively attractive offer don´t celebrate it, get suspicious!
• Did you grossly misjudge your ZOPA, their RV?
• What does the other party know that you do not know?
Always rely on your ZOPA, provide justifications and set high aspirations
Designing your first offer 1/2
1. Keep the entire ZOPA in play

• Make an aggressive offer OUTSIDE ZOPA that forces the other party to negotiate its way into ZOPA
without sacrificing any value in your ZOPA
2. Provide justification for your offer

• The farther outside of ZOPA your offer is, the more likely the other party feels offended
(loss of credibility and risk of impasse)
• ALSO: higher likelihood that if you reach agreement, it will be closer to the other party´s RV than yours
• Choose the most aggressive offer that you can justify (I like to propose X because …)
3. Set high but realistic aspirations

• High correlation between target price and final negotiated price if you have high aspirations going into the negotiation
• More aggressive first offers influences final outcome
• Motivate behaviours that help achieve aggressive targets (tough hagglers) & reduce your susceptibility to influence tactics
Consider reputation, relationship and context of negotiations
Designing your first offer 2/2
4. Consider the context of the negotiation and the relationship with the other side
• What type of relationship do you have with your counterpart?
• Will hard bargaining be ill-received? Are reputations at stake?
• What norms drive your interactions?
→Perfect ZOPA calculation & brilliant justification for first offers can still ruin negotiations,
lose deals and damage relationships if relationship contexts are not evaluated properly
→Get the best deal while STRENGTHENING the relationship and your reputation
and do not strive for the ultimate best one-off deal! (might require to forgo some short-term gains)
Making the first offer reveals information to your negotiation partner
Should you make the first offer?
NO YES
You take more control of the interaction and negotiate
Provides valuable information about the other party. “on your terms”.
→ Making the first offer reveals your needs, demands, → Making the first offer establishes an “anchor” which
position and interests to the other party. focuses your counterparty´s attention and expectations &
influences the final outcome.
Hint: For this decision you should factor in all information

about interests, assumptions, stances, possible BATNAs
and ZOPA you obtained prior to negotiation!
Gathering information and assumptions prior the negotiation can help
identify ZOPA
Finding the other party’s RV
How far can we push the other party?

1. Identify your assumptions prior to negotiation (= what you do not know but assume)
2. Exhaust all pre-negotiation sources of information & try to the assumptions made (reveal interests, avoid
manipulation, commands greater respect due to higher knowledge, gives clearer concept of ZOPA)
3. Ask questions that challenge your assumptions (do not start bargaining as if your assumptions are correct!)
→ Clarify matters & challenge your assumptions to reveal the truth about them (e.g. indirect questions)
4. Protect yourself from lies and uncertainties with contingency contracts
Making and requesting concessions should be part of a negotiation
Haggling strategies
• Focus on the other party´s BATNA and reservation value

• Avoid focusing merely on own BATNA → Focus on what the other party will do without you → What value do you bring?
• Avoid making unilateral concessions
• Be flexible, make concessions but also demand reciprocity
• Make clear that you expect concessions of similar size
• Avoid the other party making concessions that are of low value to you
• Make contingent concessions
• Explicitly tie your concessions to specific actions by the other party (quid-pro-quo)
• Be aware of the effects of diminishing rates of concessions
• Negotiators tend to offer diminishing rates of concessions → signals that the other party is getting closer to their RV
& that the other party uses this expectation strategically
• Be aware of the water-padding in prices & have an understanding how far you can go
Multiple-Issue Negotiation is all about Maximizing Value
Negotiating multiple issues
1. Create conditions for value maximization

• Communicate openly to share your real needs and priorities
• Identify all potentially relevant issues and priorities of the other party
• Cooperate to create maximum value
2. Try to maximize captured value appropriate to your sense of fairness and relationship to the other party
3. Make package offers (share preferences and information then propose a package deal that reflects preferred outcomes)
4. Leverage differences of all types to create value (e.g., differences in expectations -> use contingency contracts)
→ Avoid reaching a final agreement on any issue until you have had the change to discuss every issue!
What issue should be discussed first?

Toughest issue first Easiest issues first
• If you can´t reach agreement further negotiations are a • Difficult issues might derail negotiations from scratch
waste of time • Make low-cost concessions early
• BUT might impede willingness of counterparty to make • Expect the other party to reciprocate later, on issues of
further concessions for other issues more value to you
Creating and claiming value during negotiation follow different strategies
The differences in value strategies
Value-Creating-Strategies Value-Claiming-Strategies
• Ask diagnostic questions • Establish your BATNA
• Expand the issues on the table • Develop a Reservation Value (RV), do not reveal it
• Reveal information about interests, priorities and • Seek information about the other party’s BATNA
constraints and RV
• Make multiple offers of equivalent value • Make the first offer, if you are prepared
simultaneously • Immediately re-anchor if the other party makes the
• Leverage differences via contingency contracts first offer
• Search for post settlement-settlements • Monitor the magnitude of your concession
Hint: Negotiation often entails compromise but is not

about compromise. Compromise on issues often ignores
opportunities for value creation!
There are nine strategies that can be used to influence and persuade during
a negotiation
Strategies of Persuasion

2. Disaggregate your counterpart’s gains and aggregate their losses
3. Set an agreeable and accommodating mood (“String of yes”)
5. Use the “foot-in-the-door” technique
7. Utilize the power of social proof
9. Use reference points to make your offers and demands seem more reasonable
Highlighting losses can help the counterparty realize the value of the proposition
Persuading and influencing your counterparty 1/6

• Based on the principle of loss aversion = People are motivated to avoid losses more
than they are to accrue gains (even if losses and gains are of equal magnitude)
• Same information content – different effects
− Decision-makers weigh information about potential losses more heavily than about potential gains
− The information content of the proposals remained unchanged, but adopting a loss frame rather
than a gain frame enhances its influential impact
→State your proposal in terms of what potential gains the other side stands to forgo
if your idea or proposal is rejected
BUT avoid an overreliance on loss frames

− Can sour relationships (loss frames perceived as unpleasant, threatening)
− May induce the other party to retaliate in kind
→ Reserve loss frame for final pitch statements and when summarizing your arguments
If you ask for concessions bundle them and ask once rather than spreading them out
2. Disaggregate your counterpart´s gains and aggregate their losses

Disaggregate their gains:
• You can make concessions and increase your offer
(Your counterpart will evaluate a string of concessions more positively than one lump sum concession)
• You have completed a project under budget and also earlier than scheduled
(parcel good information into smaller pieces, separate benefits and rewards into instalments to be made over time)
Aggregate their losses:
• If you want the other side to make concessions: make one comprehensive demand rather than several partial demands
• If you have bad news to share, share it all at once
• If you have costs or burdens to impose, combine them into one
3. Getting to YES
− As the seller, keep your buyer in a positive, agreeable and accommodating mood
− The longer someone agrees with you, the more likely this person believes that your interests are compatible with hers/his
− A “string of yes” helps to build momentum towards final acceptance of your demands
→ Keep them saying YES
Make extreme demands and expect rejection to get closer to your target request
Why does compliance increase after an initial rejection?

• If you want something:
− Ask for more than you want (extreme demand: anchor)
− Expect rejection
− Counter with moderate demand
• Bogus request = asking for more than you want BUT potential risk of making outrageous demands → your
• Target request = real interest counterpart might consider your demand as plain offensive
5. Employ the “foot-in-the-door” technique

Psychological commitment:
• People have to justify past decisions and preserve consistency between their statements and actions
• A person who has agreed to an initial request, feels more commitment to agree with additional requests that follow from
the initial request
• In negotiations aim for compliance with a single request then increase your demands
Depending on the situation either moderate or extreme requests should be chosen
Comparing the “door-in-the-face” and the “foot-in-the-door” technique
Door-in-the-face technique Foot-in-the-door technique

Measures - Extreme request - Aim for compliance with a
- Aim for rejection simple request
- Moderate your demand - Then increase your demand
Goal Make your key demand seem Build commitment towards your
more reasonable key demand
Time factor Make moderate request very After moderate request was
soon after the extreme request accepted, allow some time for
was rejected feelings of commitment to be
processed – then make the
more extreme request
→The longer the time gap, the →If time gap is too short: pushy,
more diminishes the contrast aggressive
effect
Justified demands are perceived more willingly even when imposed on us
Justification of your position:
- Strengthens your case
- Mitigates the risk of refusal
Psychological reasoning: - Increases likelihood of compliance
• When people impose their will on us - Decreases chances of the other party to walk away
• →signal that they might never reciprocate if we help
• Legitimated demands and impositions of others are more willingly accommodated
• →assume obligation to us →allows us to set up a mutually rewarding relationship.
Behaviour phenomenon:
• When demand = imposed on us BUT justified →higher willingness to lower resistance
• Justification criteria: rule of thumb, signal words like “because”
• Don´t let a demand/an offer speak for itself → provide justification for it
• Follow up with evidence to support your justification
How to apply the power of justification in the negotiation context:

- Make a demand
- Give immediate justification for it → use “because … “ (following information seems less relevant when using because)
Making small concessions can lower your counterparty’s defensive position
7. Leverage the power of social proof

Psychological reasoning:
• Reference point: If there is ambiguity/uncertainty regarding the proper course of action, what will the others do
Behavioural phenomenon: Power of social proof

• No difference in product information but reference to the behaviour of others (other people are buying the product)

• Recipients of concessions (gifts) are often insensible of the degree of cost incurred by the giver
• Even a low-cost concession may be sufficient to induce reciprocity or compliance
• E.g., for concessions:
− You agree to meet at a time/location that is more convenient to the other side than it is to you
− You begin substantive discussions by agreeing to one of the smaller requests the other side has made
➔ The more important your concession is to the other party, the more likely it is that they will feel compelled to
reciprocate in substantive ways
Presentation of reference points offers influences the perception of “good deals”
9. Use reference points to make your offers and demands seem reasonable
• People evaluate cost of an item in comparison with salient reference points
• People´s desire to get a “good deal” makes them susceptible to influence (large discounts form original price)
• Even when the value of an issue is identical, potential buyers find it more or less attractive depending on:
- How it is presented
- What it is compared with
- How much it represents a “good deal”
Mitigating the impact of influence strategies is vital in pertaining neutral perception
Defence strategies against influence 1/2
1. Prepare systematically
• Influence strategies are less likely to persuade well prepared negotiators
• Analyse BATNA, evaluate ZOPA, investigate and identify all deal relevant issues (interests, priorities, constraints)
2. Create a scoring system

• Allows to make objective evaluations of each offer
• Compare total value of a stated offer with -> total value alternative offers, BATNA and your aspirations
3. Explicitly separate information from influence

• Your counterpart´s statements entail both information and influence
• Separate the two before reacting on it
• Analyse your counterpart´s statements with questions like:
- Did I learn something new here. If so, what did I learn?
- Would I be willing to do this for anyone else?
- Can I defend my decision to critical others?
Mitigating the impact of influence strategies is vital in pertaining neutral perception
Defence strategies against influence 2/2
4. Do not negotiate under time pressure

• Influence tactics are more effective when their target must respond quickly.
• Request some time for consideration of the other party’s offer.
5. Rephrase your counterpart´s offer in other terms

• Reframe your counterpart’s statements from a loss frame into a gain frame.
• Identify whether your reaction to their proposal stems from its merits or from its form of presentation.
• Loss frame: ‘If you do not increase your bid, you will lose the opportunity to win this deal.’
• Gain frame: ‘If I want to have a chance at winning this deal, I will have to increase my bid.’
• Are you still tempted to raise your bid?
6. Appoint a devil´s advocate

• Appoint a person - that is not involved in this negotiation - to question your beliefs regarding all issues relevant to the
negotiations. (Physical presence during negotiations necessary?)
Know your BATNAs and be persistent to not reveal it
How to prepare for a job negotiation 1/3
Determine your potential
Develop your BATNA employer´s BATNA
• Consider more than one job offer to build your BATNA Weak BATNA -> gives you
strength in negotiations,
• The more alternatives you have, the more leverage you have in the negotiations
employer is more willing to
• BATNA increases your confidence and power in the negotiations meet your requests
Do not reveal your BATNA

• Deflect a poor BATNA: Avoid looking desperate “still talking with other companies”
• Decline to reveal company names since you are waiting for their offers.
• Don´t turn a strong BATNA into a threat: Don´t say → “If you don´t … then I will …”
Set your resistance point

• Assess your resistance point before negotiating (→ do not say I know when I see it →prepare!)
• Prevents you from accepting an offer that you may later regret
• Don´t reveal your resistance point, the other party may then present its offer in this range
Know your value and what you want from your job
Know your market value (objective criteria: industry standards)

• Gives you leverage in the negotiations because it is difficult to argue against published standards
• Add extra value for your special skills
• Be prepared to explain how your skills can add value to the company
Know what you want

• Identify you other interests beside salary
• Prioritize these interests
• integrate them into your job negotiations
• Be prepared to outline how granting you a certain benefit will bring extra value to the company, too
e.g., (requested laptop  work during travel time)
Set an aspiration point (be optimistic but realistic)

• Have room between your aspiration and resistance points
• Those who set and believe in their aspiration points do better in negotiations
• They tend to be more creative in finding ways to reach their goal
Conduct research beforehand and consider trading in issues during negotiation
Research the company prior to negotiating

• Items the company will/will not typically negotiate
• Negotiation style of your counterpart
• Locate and talk to (former) company employees
Consider logrolling (trade low priority for high priority items)

• Determine compensation items that are most important to you
• Use a common metric system (US$) for all items to recognize and substitute different items for a package offer
• Find out what is important to the company
• Trade low priority items for high priority items
Hint: When keeping the salary structure is very
important to them, try to get a bonus to
compensate for not getting a higher salary!
People mostly do not negotiate salaries out of fear
Salary negotiations 1/2
Why don´t people negotiate salary?

Afraid of putting an inadequate price on their skills
• Don´t know how much they are worth
• Undervalue/overvalue their skills
• Gather relevant information prior to negotiations (worth of your skill set, negotiable issues, interests and priorities)
Afraid of appearing greedy

• You do not appear greedy when asking for a compensation equivalent to your skill set
• Refer to compensation (benefits) for comparable jobs in similar companies (provide credible evidence)
• Most companies expect you to negotiate to make their final offer more attractive
Afraid of losing an offer

• Start negotiating after you have received an offer
• Company will be receptive to your requests to make sure you are satisfied and committed to them
• Be demanding but also considerate of employer´s constraints and interests
Be confident and prepared when entering salary negotiations
Salary negotiations 2/2
If the prospective employer insists on you making a salary request

• State it with confidence!
• Be prepared to deliver justification for it
• Be aware of its “anchor effect”
• Do not underbid or overprice yourself →Conduct market research for industry averages and find out about
the company’s salary policies
• Deliver a range (low number: fit in their range; high number: what you want)
Excuses a company is likely to make: “The requested salary would throw off salary structure”
• Ask where you fall within this structure
• what skills are necessary to move to the next band?
• Possibly negotiate a title change to get a higher salary or accept a rapid review
• If attitude persists on salary try and get other benefits
BUT avoid personal needs as justification always refer back to your qualifications!
Course Overview
4. Exercises 1
9. Exercises 2
Exercise „Establishing rapport“ 1/2
1. At his first meeting with Mina Van Buren, a US manager, Juan Velasquez, an Argentine business-man,
complimented her on her appearance and invited her out for drinks and dinner that evening. Ms Van Buren
refused, saying that she preferred to keep their relationship on a professional level.
Discuss the appropriateness of Mr Velasquez‘ invitation and Ms Van Buren‘s response and the implication for
building a solid business relationship.
2. For five years, Senor Gomez had been doing business successfully with his US manufacturer. US Fabrics‘ main
Mexican representative, Charlie Moss. Each time Moss and Gomez would get together (which would be about
four or five times a year), it was always as if old friends were meeting again for the first time. There would be
much drinking, eating and socializing. An outsider might almost wonder whether any business was being
conducted at all, and yet Gomez always sent Moss back to his company in North Carloina with a big new order.
How disorienting, then, for Gomez to learn one day, in a letter from US Fabrics, that, in part because of Moss‘s
success in Mexico and the company‘s need to beef up sales in a sagging asian market, Moss was being
reassigned to sales in the Pacific Rim region. The letter went on to say that Ms. Harris, a „promising new sales
professional“ from the Boston office, was going to become US Fabrics‘ new representative for Mexico. Gomez
met her once in Mexico City, but didn‘t feel comfortable about placing any orders right away. After seven
months, US Fabrics is still waiting for an order from Mexico.
How would you explain Gomez‘s reaction?
Different concepts of time can lead to difficulties in negotiation
Exercise „Establishing Rapport“ 2/2
3. Within the past decade Ray Cisneros had worked hard to become the top salesperson for the entire West
Coast district of his company, which manufactures and distributes vinyl floor coverings. When his company
received an invitation to make a marketing presentation to a large distribution in Buenos Aires, Ray‘s Hispanic
background, fluency in Spanish, and excellent salesmanship all made him the logical choice for the assignment.
Ray had set up an appointment ot make his presentation on the same day that he arrived from Los Angeles. But
upon arrival the marketing representative of the host firm, who met him at the airport, told him that the
meeting had been arranged for two days later so that Ray could rest after th elong trip and have a chance to
see some of the local sights and enjoy their hospitability. Ray tried to assure his host that he felt fine and was
prepared to make the presentation that day. Ray could not see no good resason not to get on with the business
at hand. Eventually the marketing representative somewhat reluctantly intervened on Ray‘s behalf, and the
meting was set for later that afternoon. But once the meeting began Ray noticed that the Argentinean
executives nver really got beyond the exchange of pleasantries. Finally, the vice president in charge suggested
that they meet again the next afternoon. Ray was feeling increasingly frustrated with the excrutiatingly slow
pace of negotiations.
How could you help Ray gain some clarity in this cross-cultural situation?
Examples for negotiating from a weak BATNA
Exercise „Negotiating from a weak BATNA“ 1/4
1. Two companies had signed a joint-venture (JV) agreement and found themselves enmeshed in a bitter
dispute when one of the companies, anxious about the other's growing presence in a market in which they
competed, threatened to sue for patent infringement. The defendant knew that the case was frivolous, but also
knew that the plaintiff, a much larger company, could afford to litigate until the defendant went into
bankruptcy. Despite its seemingly precarious situation, the defendant managed to convince its JV partner to
drop the lawsuit and to reach a mutually agreeable settlement. The defendant's argument was essentially the
following: "If you take us to court, you have the power to push us into bankruptcy. Clearly, we do not want this.
But let's also think about what this would mean for you: you would lose a valuable partner. It would be best for
both of us if we could set aside the threat of patent litigation and see whether we can work out an agreement
that allows us to continue using the disputed technology, for you to feel more secure about your market
position, and for us to continue a value-creating relationship that capitalizes on our synergies.“
What is the underlying negotiation strategy employed in the situation described above?
2. A few years ago, when John was a senior in college, he received a job offer from a consulting firm. John loved the offer, with one
exception: the salary was lower than he had hoped it would be.
John called the HR manager and asked whether salaries were negotiable.
The HR manager told him that salaries were not negotiable, but offered to set up a lunch with the managing partner so that John
could discuss any issues that concerned him. At lunch, after an hour of pleasant conversation, the managing partner explained that
the firm calculated starting salaries using a very simple formula in which only three factors mattered: the college the new hire had
attended, his or her academic major, and prior work experience. Since they had already considered these factors, they could not
increase John's salary.
John knew that he had very little power in the negotiation. He had no better offer to use as leverage, and he estimated that "holding
out for more" would result in little, if any, increase in salary. He decided to try a different kind of strategy altogether.
John responded by saying that he understood the partner's perspective, that he really loved the firm, and that he would definitely
accept the offer. Having said that, John continued, would the partner be willing to continue the discussion regarding his salary? With
the partner's consent, John made an extensive argument that boiled down to the following: he would bring more value to the firm
than the simple formula suggested. He concluded by emphasizing that salary was not the most important issue to him. He pointed out
that he had already accepted the offer because he was very excited about the opportunity to work at this firm - but that salary was
nonetheless an issue, as it would be for any young person starting out in life. If there were any help that the firm could give him, it
would be greatly appreciated.
The partner liked what he heard, and promised John that he would at least give this perspective some thought. The following day, the
partner called John to tell him that the firm would give him a 10 percent increase in salary because they had "taken another look at
his [summer] work experience and decided that it probably should have been given more weight in the first place.“
What may have really convinced the company to grant this extra raise?
3. For many years now, Planned Parenthood medical clinics across the United States have faced a recurring
problem. Every so often anti-abortion protestors picket outside the clinics in the hope of discouraging women
from entering them. The strategy seems to work quite well, many women who might otherwise visit the clinics
are daunted by the prospect of passing through a large crowd that is waving signs and hurling verbal abuse.
Setting aside the moral and political elements of this conflict how might the clinics deal with the strategic
problem of reducing the number of intimidating protestors?
A number of Planned Parenthood clinics around the country have adopted a particularly creative strategy for
fighting back, usually referred to as the 'Pledge-a-Picket' Program. Here's how it works: The clinic asks its
supporters to pledge donations to the clinic on a per protestor basis. The more protestors that show up to
picket the clinic, the more money the clinic raises in donations! For example, if someone pledges 50 cents per
protestor and one hundred protestors show up at the clinic, that supporter will donate $50 to the clinic. Many
clinics have used this strategy to effectively reduce the incentive of protestors to show up to picket, and some
have raised tens of thousands of dollars in pledges. The Planned Parenthood of Central Texas (PPCT) in Waco
has even posted a sign outside its clinic that reads: Even Our Protesters Support Planned Parenthood.
Outline the negotiation strategy applied in the situation above.
4. In their book Negotiating Rationally, Max Bazerman and Margaret Neale tell the story of how Lee lacocca,
then CEO of Chrysler, found a way to mitigate his company's weakness. In 1986, the three U.S. auto companies
(General Motors, Ford, and Chrysler) were engaged in extremely unhealthy competition. Each of them tried to
gain market share through the use of rebates. Each time one company announced a rebate, the other two
rushed to raise their own rebate offer. Before long, the auto companies were losing money, on average, on
every car they sold! lacocca recognized that because of this escalation problem, the automakers were in a very
weak position vis-a-vis the consumers. He decided to put an end to this by announcing to the press that
Chrysler would discontinue its rebate program but that if either of the other two companies continued to offer
rebates, Chrysler would match those rebates. This action by Chrysler helped to end the rebate war, stopped
profit erosion in the industry, and returned all three US automakers to profitability.
Why was lacocca's strategy effective?
Applying strategies of influence can lead to different outcomes in negotiation
Exercise „Strategies of Influence“ 1/5
1. Consider the following research conducted by Professor Robert Cialdini of Arizona State University. Cialdini's
research assistants went around the city posing as workers from the county juvenile detention center. They
stopped people on the street at random and asked them for a favor: "Would you be willing to chaperone a
group of juvenile delinquents on a day trip to the zoo?" As you might imagine, most people were taken aback
by the extreme request, and only 17 percent said yes. The researchers then tried a different approach. This
time when they stopped a person, they asked for an even greater favor: "Would you be willing to serve as a
counselor at the juvenile detention center? This will require two hours of your time each week for three years."
Not surprisingly, everyone turned down this request. Without skipping a beat, the researchers then went on to
ask: "Well, if you can't do that, would you be willing to chaperone a group of juvenile delinquents on a day trip
to the zoo?" The response was staggering. Now, 50 percent of those asked to chaperone agreed to comply!
What strategy of influence was used to increase compliance after the initial rejection?
2. In a study conducted near a college campus, the bartender at a local bar identified a set of regular patrons
and asked/half of them to sign a petition against drunk driving. They all did so. The bartender did not approach
the other half of the group with this request. Over the next six weeks, the bartender noted when any of the
identified patrons became intoxicated. Then, as the inebriated patron prepared to leave the bar, the bartender
made a second request: "May I call a taxi to take you home?" Among those who had not been asked to sign a
petition, only 10 percent agreed to wait for the taxi. In contrast, 58 percent of those who had signed were
willing to wait.
Why did more people agree to the more troublesome request (wait for a taxi) after they had first complied
with a less troublesome request (sign a petition)?
3. In recent years, "infomercials" - long advertisements that provide extensive information regarding the
benefits, application, or celebrity use of a product - have become a hallmark of late-night television in the
United States. At various points during the typical thirty-minute infomercial, the host will ask viewers to "call
the number on the screen" to purchase the advertised product at discounted prices. Many of us have
wondered what in the world would persuade someone to actually pick up the phone in the middle of the night
to buy something like a self-cleaning oven mitt. Apparently, an infomercial writer named Colleen Szot spent a
lot of time wondering the exact same thing. At one point, she decided to change the standard request that
appeared in virtually all infomercials: "Operators are standing by, please call now." She simply changed three
words in the statement:
"If operators are busy, please call again."
What was the result? The number of calls skyrocketed! Why?
4. Some years ago, a national trade association for construction sub-contractors determined that it needed to
survey its membership. They were aware, however, of one of the key barriers to such market research: target
audiences are notoriously reluctant to respond to surveys and questionnaires. In the hopes of learning how
best to increase response rates, they decided to test the power of providing a financial incentive for filling out
the survey. One randomly chosen subgroup of members was sent the questionnaire with no financial incentive.
Of this subgroup, 20.7% returned a completed questionnaire.
Another randomly chosen subgroup of members was promised a $50 payment for completing and returning
the questionnaire.
Unfortunately, the $50 incentive did not significantly change behavior; this time, 23.3% of members responded.
Why such a weak effect? One plausible theory is that the incentive was not large enough; perhaps the
association should have promised $100 or $200.
A third group of members was sent the questionnaire and, along with it, a single $1 bill. This time, 40.7% of
members returned a completed questionnaire!
How do you account for this phenomenon?
5. Harvard psychologist Ellen Langer and her colleagues3 asked the university librarian to shut down all but one
of the copy machines in the library. As a result of this conspiracy, long lines began to form at the one remaining
copy machine. The researchers were interested in finding out what would convince people who were in line to
let others cut in front of them. In some instances, a researcher simply said, "Excuse me, I have five pages. May I
use the Xerox machine?" Sixty percent of those approached this way allowed the researcher to cut in front of
them. Other people were approached with a slightly different request: "Excuse me, I have five pages. May I use
the Xerox machine because I have to make some copies?" As you can see, the second approach added an
entirely absurd justification (obviously, the reason for wanting to cut in line at a copy machine is to make
copies!). What was the response this time? Ninety-three percent of those approached with this request
allowed the researcher to cut in front of them!
As these results suggest, even entirely frivolous justifications have the power to induce compliance. Why?
Investigative negotiation strategy examples
Exercise „Investigative Negotiations“ 1/3
1. Some years ago, Chris's firm was negotiating to buy a new health-care product ingredient from a small
European company. The parties had agreed to a price of $18 per pound for a million pounds of product per
year, but a conflict developed over exclusivity terms. The European supplier would not agree to sell the
ingredient exclusively to the U.S. firm, and the U.S. firm would not invest in manufacturing a new product based
on an ingredient to which competitors would have access. This issue appeared to be a deal breaker. The U.S.
firm's negotiators were frustrated and surprised by the small European firm's reticence on the issue of
exclusivity. After all, there was no way the supplier could hope to sell even close to one million pounds of the
product elsewhere. Eventually, though with understandable hesitation, the U.S. firm's negotiators decided to
sweeten the deal with guaranteed minimum orders and a willingness to pay more per pound. They were
shocked when the supplier still refused to provide exclusivity! As a last resort, the U.S. team called Chris and
asked him to fly to Europe to join them. When Chris arrived and took a seat at the bargaining table; the
argument over exclusivity continued. After listening briefly. to the two sides, Chris simply asked the supplier
why he would not provide exclusivity to a major corporation that was offering to buy as much of the ingredient
as he could produce. The supplier's answer was unexpected: exclusivity would require him to violate an
agreement with his cousin, who currently purchased 250 pounds of the ingredient each year to make a locally
sold product. With this information in hand, Chris proposed a solution that helped the two firms quickly wrap
up an agreement: the supplier would provide exclusivity with the exception of a few hundred pounds annually
for the supplier's cousin.
What principle of investigative negotiation was applied here?
2. The CEO of a successful construction company was negotiating a deal in which a buyer would contract with
his company to build midsize office buildings. After months of negotiations finally concluded - but just before
the contract was signed - the buyer approached the executive with an entirely new and potentially costly
demand: a clause in the contract that would require the builder to pay large penalties if the project's
completion was delayed by more than one month. The builder was initially outraged by this sudden demand. It
seemed as though the buyer was trying to squeeze some last-minute concessions from him.
The builder weighed his options: he could accept the buyer's demand and seal the deal. He could reject the
buyer's demand and hope this would not destroy the deal or he could try to negotiate to reduce the proposed
penalties. Then he thought more deeply about the situation. What did the buyer's demand reveal? At the very
least, it revealed that the buyer was concerned about delays and that he valued timely (and perhaps early)
project completion. With this in mind, the executive approached the buyer with the following proposal: He
would pay the penalties the buyer had demanded if the project was delayed, but the buyer would have to give
the construction company a bonus if the project was completed earlier than scheduled. After working out the
details, both parties agreed to this clause, and both were happier with the deal. The builder was confident that
he would finish on time and receive the bonus, and the buyer was able to minimize his downside risk.
3. The CEO of "HomeStuff," a well-established and profitable producer of household appliances, was negotiating the purchase and delivery of
mechanical parts from "Kogs," a new supplier. The parties discussed two key issues: price and delivery date. HomeStuff wanted to pay a low
price and also wanted immediate delivery. Not surprisingly, Kogs wanted a high price and more time to deliver the goods.
Based on prevailing market rates, the parties agreed to a price of $17 million and a three-month delivery date. The supplier, however, voiced
some anxiety about the delivery time frame: "This will be costly," he said, "but we will try our very best manage." The CEO of HomeStuff, aware
that delaying delivery beyond three months would cost his company close to $1 million, offered to accept delayed delivery if Kogs would agree
to cut the price by $1 million.
"I appreciate the offer," the supplier responded, "but I can't accept such a large price cut." Normally, negotiations would end at this point. The
CEO had tried to make both sides better off through logrolling and found this was not possible. Nonetheless, the CEO decided to pursue the
matter further. "I'm surprised that a three-month deadline for delivery is creating such a problem for you," he said to the supplier. "I would
have thought that you could easily manufacture the parts in a short amount of time. Would you mind telling me more about your production
process so that I can better understand your constraints?"
"Actually, manufacturing is not the problem at all," the supplier said. "It's the shipping costs that are killing us. The freight rates that we have to
pay at such short notice are extremely high." When the CEO heard this, his eyes lit up. Had the problem been what he had assumed (no cheap
way to manufacture in time), there was little to be done. But this problem (no cheap way to transport in time) was one that HomeStuff could
solve for Kogs. HomeStuff had been involved in high-volume shipping for years and often had to ship products at short notice. As a result, the
company had negotiated very favorable terms for this kind of a delivery. Indeed, the CEO could have the parts shipped from the supplier in less
than three months at a cost of only $500,000. In comparison, the supplier would have paid more than two times that much ($1.2 million). The
CEO made the following offer, which was immediately accepted:
HomeStuff would have the parts delivered via its own shippers in 2.5 months.
The supplier would pay the cost of shipping ($500,000).
The supplier would lower the price from $17 million to $16.5 million, allowing both parties to share in the cost savings.

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Communication & Negotiation Skills

Prof. Dr. Jens Kirchner | 2024

© Prof. Dr. Jens Kirchner | 2024 Communication & Negotiation Skills 1

2. Impact of Language and Culture on Communication

6. The individual parts of a Negotiation

7. Potential mishaps and how to avoid them

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1. can name the essentials of communication and conversation,

2. are privy to cultural differences and backgrounds that influence negotiations,

3. can name, approach and solve conflict situations,

4. know how to prepare for and successfully execute a negotiation,

5. know how to avoid common negotiator‘s mistakes,

6. can recite and apply common strategies in negotiation.

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2. Team-Coaching in Groups – Online 5. Team-Coaching in Groups – Online

3. Presentation/Discussion in Groups – in Presence 6. Presentation/Discussion in Groups – in Presence

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2. Impact of Language and Culture on Communication

6. The individual parts of a Negotiation

7. Potential mishaps and how to avoid them

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• Elements of Communication – Verbal, paraverbal and nonverbal communication

• Basic rules of Communication

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Two Types of Trust have to be distinguished:

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• Using face effectively

• How to avoid losing face

• How to give face

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• Haptic signals − Has a high impact

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Potential misinterpretations of eye contact

Direct eye contact Avoidance of eye contact

can seem aggressive, provoking, can transmit a lack of interest,

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• Culturally rooted, ambiguous responses

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3. Allow sufficient time (calculate extra time in)

5. Write down your questions (wording and expression are important)

Hint: Ask the counterparty to prepare for the

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1. Create a pleasant atmosphere for the conversation

3. Allow your counterpart to speak sufficiently (do not conduct a monologue!)

6. You should document the most important points of the conversation

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3. Actively support the employee in implementing the agreements

• Appraisal interviews are management tasks

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• Performance discussions (event-related)

• Sickness talks (on ad hoc basis)

• Employee review (regular)

• Onboarding meetings (regular for new hires)

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Goal of the interview

Atmosphere of mutual appreciation and respect.

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• Preparation of a short protocol for the analysis meeting:

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2. Explanation of the data entered on the summary log

3. Question about the reasons from the employee‘s point of view

4. Explanation of own view/reasons for the result

5. Joint discussion of measures to increase productivity

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