How to incorporate best practices from business negotiations into consultation - Toufan Rahimpour

How to incorporate best practices from business

negotiations into consultation

LEARNSHOP Toufan Rahimpour

Consult like a tycoon How to incorporate best practices from business negotiations into consultation

Presented by Toufan Rahimpour 13 May 2016

EBBF Milan

”“Say: No man can attain his true

station except through his justice. No power can exist except through unity. No welfare and no well-being can be attained except through consultation.

- Baha’u’llah

”“Nothing whatever can, in this

Day, inflict a greater harm upon this Cause than dissension and strife, contention, estrangement and apathy, among the loved ones of God

- Baha’u’llah

How happy are you with the outcome?

- or - 😊 #

How happy are you with the interaction

between you and your partner?

- or - 😊 #

At the bottom of your sheet, there is a points table

For each couple, add your points together to get the team total

For example, if Liz has 3 points and Carrie has 3 points, your team

total would be 6 points.

Now that you know….

How happy are you with the outcome?

Now that you know….

How happy are you with the interaction

between you and your partner?

”“If they agree upon a

subject, even though it be wrong, it is better than to disagree and be in the right…

- Abdu’l Baha

CTHE WORD

COMPROMISE

LONDON

VENICE

AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHHHHHHHHHHHH!!!!

THE COMPROMISE

MONSTER

COMPROMISE

ReflectionGathering

ReflectionGathering

ReflectionGathering

AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHHHHHHHHHHHH!!!!

THE COMPROMISE

MONSTER

COMPROMISE

ReflectionGathering

ReflectionGatheringReflection

Gathering

This game was rigged

It was specifically designed to force a

compromise

1. You had to process a lot of background information in very little time


1. You were rushed through the actual consultation/negotiation



2. You’re in an environment where you’re trying to be kind

4. The rules were very ambiguous (and mostly non-existent)


4. You were (indirectly) asked to not share all the information



4. Most of you are neither expert bakers nor lemonade aficionados

7. Your characters have a history together, and will continue to have a future relationship


8. This was an emotionally volatile scenario



9. You were encouraged to think of the goal as maximizing your points

So, as you can see, you were tricked into

playing a clearly rigged game…

So, as you can see, you were tricked into

playing a clearly rigged game…

…or were you?



2. You’re in an environment where you’re trying to be kind



4. Most of you are neither expert bakers nor lemonade aficionados



9. You were encouraged to think of the goal as maximizing your points

TODAY’S TAKEAWAYS how to succeed in negotiations/consultation

1. Tame the compromise monster

Let’s play another quick game


I’m going to put 15 seconds on the clock

The goal is to see how many “wins” you and your partner can

get

So, how’d you do?



2. Recognize that most of the time, you’re in this together

…And another game!

You are ready to purchase a shirt you really like from Excelsior for €50. You had found the shirt online, but decided to purchase it in the store. As you’re about to pay, the salesperson tells you “I probably shouldn’t tell you this, but they’re having a sale at La Rinascente, and they are selling this exact same shirt for €25.”

La Rinascente is on the other side of the shopping centre, and it’s an 8 minute walk to get there

You are ready to purchase a state-of-the-art, Apple Mac Pro Tower plus Retina Studio Display from the Apple Store in Milan for €5.000. You chose all the options online, but decided to purchase it in the store. As you’re about to pay, the salesperson tells you, “I really shouldn’t tell you this, but they’re having a sale at Media Markt, and they are selling this exact same package for €4.975.”

Media Markt is on the other side of the shopping centre, and it’s an 8 minute walk to get there

Question:

Do you go to the other store?

Let’s do a vote...

You are ready to purchase a shirt you really like from Excelsior for €50. You had found the shirt online, but decided to purchase it in the store. As you’re about to pay, the salesperson tells you “I probably shouldn’t tell you this, but they’re having a sale at La Rinascente, and they are selling this exact same shirt for €25.”

La Rinascente is on the other side of the shopping centre, and it’s an 8 minute walk to get there

You are ready to purchase a state-of-the-art, Apple Mac Pro Tower plus Retina Studio Display from the Apple Store in Milan for €5.000. You chose all the options online, but decided to purchase it in the store. As you’re about to pay, the salesperson tells you, “I really shouldn’t tell you this, but they’re having a sale at Media Markt, and they are selling this exact same package for €4.975.”

Media Markt is on the other side of the shopping centre, and it’s an 8 minute walk to get there

8 minute walk = save €25



8 minute walk = save 50%

8 minute walk = save 0,5%




3. Whenever presented with numbers, absolute is important


Let’s think about Linda, a 31-year-old woman, single and bright. When she was a student, in high school and in college too, she was deeply involved in social justice issues, and also participated in environmental issues. Which of these is most probable about Linda’s occupation today?

a) Linda works as a TV reporter; b) Linda is a bank teller; c) Linda is a bank teller, and she’s very active in the environmental movement.

Let’s vote!

A) Linda works as a TV reporter

Let’s vote!

B) Linda is a bank teller

Let’s vote!

C) Linda is a bank teller, and she’s very active in the environmental movement.

But wait!

But wait!

This blue circle represents everybody on earth

But wait!

This yellow circle represents all the bank tellers

But wait!

This green circle represents all the bank tellers that are very active in the environmental movement

Looking back at the question…

Let’s think about Linda, a 31-year-old woman, single and bright. When she was a student, in high school and in college too, she was deeply involved in social justice issues, and also participated in environmental issues. Which of these is most probable about Linda’s occupation today?

a) Linda works as a TV reporter; b) Linda is a bank teller; c) Linda is a bank teller, and she’s very active in the environmental movement.





4. Make sure assumptions are supported by evidence

One last game

One last game

1. Let’s start with €500 on the table. In Round 1, Player A offers to split the money with player B (however he sees fit)

2. Player B can accept or refuse this offer. If he/she accepts, then the two of you split the money as agreed on, and the game is over and you both take your money

3. If Player B refuses, then half of the money disappears and there is €250 remaining on the table. It’s now Player B’s turn to make an offer of how to split the money.

One last game

€500 €250 €125 €0Pot

Round 1 2 3 4

A B A --Player

Here’s an example

Here’s an example

Hey Jim. My offer is that I keep €100 and you take €400

Here’s an example


Agreed!

Here’s an example


Agreed!

Result: Game over. Player A gets €100 and Player B gets €400

Here’s an example


Here’s an example


I don’t think so!

Here’s an example


I don’t think so!

Because they couldn’t come to an agreement, half of the money disappears. Now, there’s only €250 to work with, and it’s player B’s turn to make an offer

Here’s an example


I don’t think so!

OK, now we have €250 left. I propose I keep €200 and you

take €50

Here’s an example


I don’t think so!

OK, now we have €250 left. I propose I keep €200 and you

take €50

Ok, fine.

One last game

€500 €250 €125 €0Pot

Round 1 2 3 4

A B A --Player

One last game

This game is taught in traditional business negotiations courses and it

highlights three points

One last game



1. People often act irrationally

One last game




2. Spite is bad

One last game




2. Spite is bad

3. Know your (and your partner’s) BATNA

One last game

For those that are interested, the “textbook” answer is that Player A

should offer €126 in the first round. And player B should accept.

One last game

How do we get to €126?

One last game

€500 €250 €125 €0Pot

Round 1 2 3 4

A B A --Player

BATNA+

One last game

€500 €250 €125 €0Pot

Round 1 2 3 4

A B A --Player

BATNA+ €1 (B)€124 (A)

One last game

€500 €250 €125 €0Pot

Round 1 2 3 4

A B A --Player

BATNA+ €1 (B)€124 (A)

One last game

€500 €250 €125 €0Pot

Round 1 2 3 4

A B A --Player

BATNA+ €1 (B)€124 (A)

€125 (A)€125 (B)

One last game

€500 €250 €125 €0Pot

Round 1 2 3 4

A B A --Player

BATNA+ €1 (B)€124 (A)

€125 (A)€125 (B)

One last game

€500 €250 €125 €0Pot

Round 1 2 3 4

A B A --Player

BATNA+ €1 (B)€124 (A)

€125 (A)€125 (B)

€126 (B)€374 (A)

One last game

€500 €250 €125 €0Pot

Round 1 2 3 4

A B A --Player

BATNA+ €1 (B)€124 (A)

€125 (A)€125 (B)

€126 (B)€374 (A)

One last game

If you’re ever offered €126, no strings attached, it’s probably wise

to take it






5. Spite has no place in negotiations

Our views on equality are often in accordance with principles of justice









5. Spite has no place in negotiations

1. Are we simply compromising so that we can move on? Or is this genuinely a better solution?

2. Mutual vs. Individual benefit

3. Position or Interest?

4. What other things can we introduce?

5. Improv rules. “No” is a bad word

THE HOW (from Justice Conference in DePoort)

Business

How to incorporate best practices from business negotiations into consultation - Toufan Rahimpour