final ugba-105-fall2015 section 3 9 23.negotiation bw

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 1/37

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 2/37

Today’s Roadmap

•   Pick up individual feedback report 

•   Key negotiation concepts (discussion)

•   Best practices & new tools for the toolkit 

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 3/37

Case Summary from Each Perspective

•   Who can summarize the case from the

perspective of GREEN? What did you careabout?

•   Who can summarize the case from theperspective of COSTA? What did you care

about?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 4/37

Discussion

•   How did you start off?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 5/37

Discussion

•   How did you start off?

•   Did you negotiate 1 issue at a time or did youbundle? How did that unfold?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 6/37

Discussion

•   How did you start off?

•   Did you negotiate 1 issue at a time or did youbundle? How did that unfold?

•

 Did anyone not reach an agreement? Whathappened?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 7/37

Discussion

•   How did you start off?

•   Did you negotiate 1 issue at a time or did youbundle? How did that unfold?

•

 Did anyone not reach an agreement? Whathappened?

•   How did you know how hard to push?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 8/37

Discussion

•   How did you start off?

•   Did you negotiate 1 issue at a time or did youbundle? How did that unfold?

•

 Did anyone not reach an agreement? Whathappened?

•   How did you know how hard to push?

•   What was the role of emotion? Did you getangry or feel nervous?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 9/37

Discussion

•   How did you start off?

•   Did you negotiate 1 issue at a time or did youbundle? How did that unfold?

•

 Did anyone not reach an agreement? Whathappened?

•   How did you know how hard to push?

•   What was the role of emotion? Did you getangry or feel nervous?

•

  Did any COSTAs lie about anything?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 10/37

Types of Issues: Distributive

Your outcome

     P    a    r     t    n    e    r     ’    s    o

    u     t    c    o    m    e

When you value things in exactly the 

inverse way as your partner. The more your 

partner gets,

 the

 less

 you

 get

 …

 and

 vice

versa

a   b

c

d

For  

example, 

salary  

in 

a 

 job 

negotiation

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 11/37

Types of Issues: Compatible

When you and your partner both 

want the same thing … the same 

outcome is good for you both

Your outcome

     P    a    r     t    n    e    r     ’    s    o

    u     t    c    o    m    e

For  

example, 

continuing 

education and  training in a 

 job negotiation

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 12/37

Types of Issues: Integrative

Your outcome

     P

    a    r     t    n    e    r     ’    s    o    u     t    c    o    m

    e

Issue  A

Your outcome

     P

    a    r     t    n    e    r     ’    s    o    u     t    c    o    m    e

Issue 

B

Here, 

you 

can 

give 

in 

on 

Issue 

 A 

to 

gain 

ground  

on 

Issue 

B

When you and your partner have different priorities on different 

issues (which is almost always the case), you can trade what you want 

less for what you want more

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 13/37

Rio Copa: Non‐Compete was Distributive

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 14/37

Rio Copa: Employees Important to Costa

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 15/37

Rio Copa: Financing Important to Green

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 16/37

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 17/37

The Challenge of Rio Copa

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 18/37

Rio Copa: Class Results

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 19/37

Rio Copa: Class Results

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 20/37

Rio Copa: Class Results

20% 

integrated

68% 

compatible

7%

frontier

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 21/37

Did You Hit the Efficient Frontier?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 22/37

What Are We Negotiating?

DealWho gets what

InteractionHow we interact now

RelationshipOur ongoing bond

Some times it’s mostly about 

the deal

Some times it’s mostly about the 

relationship

Even if  you don’t  think  you’re negotiating a relationship,

you’re 

negotiating 

a 

relationship 

(perhaps 

a 

lousy  

one)

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 23/37

Common Distortions in Negotiation

Failure to 

understand BATNA

Myth of 

 the

fixed pie

Focus on positions

vs. interests

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 24/37

BATNA: Know Your AlternativesB A T N Aest lternative o a egotiated greement

What  

are 

your  

options 

if  

you 

can’t  

reach 

a 

deal? 

Failing to 

understand

Can’t  judge when to 

walk away; can’t 

leverage w/partner

Your  

BATNA Partner’s 

BATNA

Don’t know how 

far you can push 

your partner

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 25/37

BATNA: The Case of Suzanne Somers

•   Somers fires professional agent, uses husband instead

•   Negotiates alone (not with ensemble), mid‐season

•

  Anchors 

on 

extreme 

benchmarks

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 26/37

Suzanne Somers•   Classic mistakes?

•   Emotion?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 27/37

Suzanne Somers’ BATNA: Perception vs. Reality

Somers’ offer

ABC’s

offer

ABC’s actual BATNA:

Jenilee Harrison, Priscilla Barnes

Somers’ actual BATNA:

the Thigh Master

Somers’ 

imagined own

BATNA

Somers’ 

assumption of  

ABC’s BATNA

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 28/37

Recent BATNA Inaccuracy?5 million per season

Wanted 20 million per season

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 29/37

What about an accurate BATNA?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 30/37

What about an accurate BATNA?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 31/37

Myth: Negotiation is a Zero‐Sum Game•   We tend to assume most negotiations are fixed 

pies—in other words, all issues are simply 

distributive

 –  “My partner wants the exact opposite of  what I want”

•   This mindset can lead us to fail to create or uncover 

opportunities for integration

•   Recall: many pairs did not fully integrate in Rio 

Copa; many also didn’t get the compatible issue 

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 32/37

Positions vs. Interests•   Positions: stances/offers in the language of deal terms

 –  Buyer: “I’ll give you $4,000 for your car”

 –

 Seller: “I demand $7,000 for my car”

•   Interests: underlying desires/needs that give rise to positionsand motivate the negotiation

 –  Buyer: “I need a reliable car for this year and can spend upto $6,000. I’m worried this car isn’t reliable.”

•   Get stuck debating positions and you can fail to uncover

interests—which is often necessary for effective integrativebargaining

 –  Seller: “I’ll take $6,000 and will commit to pay for anyordinary repairs needed in the next 12 months.”

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 33/37

Uncover Positions: Parable of the Lemon

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 34/37

Fundamental Challenges

•  Know

 what

 you

 care about (relationship, 

deal)

•   Know what kind of  

bargaining 

situation you’re in 

(distributive, 

integrative)

DealWho gets what

InteractionHow we interact now

RelationshipOur ongoing bond

Create 

value Claim 

value

Your outcome

     P    a    r     t    n    e    r     ’    s    o    u

     t    c    o    m    e

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 35/37

How Hard Do You Push?•   How hard you push depends in part on what  

you 

care 

about : the deal, the relationship, etc. – Check your habit for caring about deal vs.relationship; where does that work for you vs.expose you to risk?

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 36/37

Best Practices•   Think clearly about your larger priorities in 

advance – The deal, your relationship

•   Gauge the type of  bargaining and act 

accordingly

 – Distributive, integrative

7/21/2019 FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

http://slidepdf.com/reader/full/final-ugba-105-fall2015-section-3-9-23negotiation-bw 37/37

Best Practices (the big 6 tools)•  Establish rapport 

•  Prepare & know your BATNA

•   Anchor

•  Focus on interests vs. positions

•  Use bundles