FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW

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

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Today’s Roadmap

• Pick up individual feedback report

• Key negotiation concepts (discussion)

• Best practices & new tools for the toolkit



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?



Discussion

• How did you start off?



Discussion


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



Discussion



•

Did anyone not reach an agreement? Whathappened?



Discussion



•


• How did you know how hard to push?



Discussion



•



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



Discussion



•



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

•

Did any COSTAs lie about anything?



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



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



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



Rio Copa: Non‐Compete was Distributive



Rio Copa: Employees Important to Costa



Rio Copa: Financing Important to Green





The Challenge of Rio Copa



Rio Copa: Class Results







20%

integrated

68%

compatible

7%

frontier



Did You Hit the Efficient Frontier?



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)



Common Distortions in Negotiation

Failure to

understand BATNA

Myth of

the

fixed pie

Focus on positions

vs. interests



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



BATNA: The Case of Suzanne Somers

• Somers fires professional agent, uses husband instead

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

•

Anchors

on

extreme

benchmarks



Suzanne Somers• Classic mistakes?

• Emotion?



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



Recent BATNA Inaccuracy?5 million per season

Wanted 20 million per season



What about an accurate BATNA?



What about an accurate BATNA?



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



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.”



Uncover Positions: Parable of the Lemon



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



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?



Best Practices• Think clearly about your larger priorities in

advance – The deal, your relationship

• Gauge the type of bargaining and act

accordingly

– Distributive, integrative



Best Practices (the big 6 tools)• Establish rapport

• Prepare & know your BATNA

• Anchor

• Focus on interests vs. positions

• Use bundles

Documents

FINAL UGBA-105-Fall2015 Section 3 9 23.Negotiation BW