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Today’s Roadmap
• Pick up individual feedback report
• Key negotiation concepts (discussion)
• Best practices & new tools for the toolkit
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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?
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Discussion
• How did you start off?
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Discussion
• How did you start off?
• Did you negotiate 1 issue at a time or did youbundle? How did that unfold?
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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?
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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?
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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?
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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?
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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
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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
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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
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Rio Copa: Non‐Compete was Distributive
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Rio Copa: Employees Important to Costa
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Rio Copa: Financing Important to Green
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The Challenge of Rio Copa
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Rio Copa: Class Results
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Rio Copa: Class Results
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Rio Copa: Class Results
20%
integrated
68%
compatible
7%
frontier
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Did You Hit the Efficient Frontier?
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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)
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Common Distortions in Negotiation
Failure to
understand BATNA
Myth of
the
fixed pie
Focus on positions
vs. interests
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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
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BATNA: The Case of Suzanne Somers
• Somers fires professional agent, uses husband instead
• Negotiates alone (not with ensemble), mid‐season
•
Anchors
on
extreme
benchmarks
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Suzanne Somers• Classic mistakes?
• Emotion?
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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
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Recent BATNA Inaccuracy?5 million per season
Wanted 20 million per season
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What about an accurate BATNA?
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What about an accurate BATNA?
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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
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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.”
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Uncover Positions: Parable of the Lemon
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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
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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?
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Best Practices• Think clearly about your larger priorities in
advance – The deal, your relationship
• Gauge the type of bargaining and act
accordingly
– Distributive, integrative
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Best Practices (the big 6 tools)• Establish rapport
• Prepare & know your BATNA
• Anchor
• Focus on interests vs. positions
• Use bundles