cibc negotiations
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8/7/2019 CIBC Negotiations
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Negotiations
Presented by:
Michael Erdle,
Managing Partner, Deeth Williams Wall LLP
December 6, 2007
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It’s Negotiable:A Guide for Entrepreneurs
Michael Erdle,
Managing Partner
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Introduction
Negotiation Problems
Negotiation Skills
Dispute Resolution
In theory there is no difference betweentheory and practice. In practice, there is.-- Jan van de Snepscheut
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What is Negotiation?
Everything is negotiated.
Family and personal
● “Where should we go for lunch?”
● “Can I borrow the car?”
Academic research
● “Fund my project.”
● “Publish my paper.”
Business ventures● “I want a raise.”
● “Invest in my company.”
● “Pay me a license fee or I’ll sue you.”
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Negotiation Goals
Distributing Value vs. Creating Value
Opportunistic
Problem-solving
Identify Issues
Consider Interests
MutualComplementary
Conflicting
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Negotiation Goals
Successful relationships are built oncommunication and trust.
Negotiation is one way of creating trust – or deciding whether trust is justified.
Example: “The Prisoner’s Dilemma” a
classic negotiation game
One-time deal vs. continuing relationship
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Negotiation Styles
Assertiveness vs. Empathy
Three common negotiation styles:
Competitive
Accommodating
AvoidanceEffective negotiator is both assertive andempathetic.
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Negotiation Skills
Communication is the key to effectivenegotiation.
Understanding and recognition do notmean compromise and concession.
What you say is often less important than
how you say it.Tone
Body language
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Negotiation Skills
Listening
Develop “active listening”.
Understanding
Acknowledge the other person’s perspective.
Flexibility
Be open to other options.Pragmatism
Be ready to accept the best available option.
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Effective Negotiation
Interests vs. Positions
“Needs” vs. “wants”
“Separate the Person from the Problem.”Soft on the person
Hard on the problem
Consider other Options
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Negotiation
Use Objective Alternatives
Look for a “win-win” solution
Determine BATNABest Alternative to Negotiated Agreement
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Negotiation Traps
Classic “Hard Bargaining” Ploys
Extreme claims, small concessions
“Take or leave it.”
Unreciprocated offers
Threats and warningsAttacking the alternatives
Good cop, bad cop
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Ways to Respond
Extreme claims, small concessions
Tit for Tat – make equally small concessions
“Take or leave it.”
Make a counter offer Offer an alternative
Don’t be afraid to walk away.
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Ways to Respond
Unreciprocated offers
Don’t negotiate against yourself.
Wait for a counter offer.
Threats and warningsDon’t make a counter-treat.
Challenge the underlying assumptions .
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Ways to Respond
Attacking the alternatives
Ask for an explanation.
“Why do you have a problem with…?”
Good cop, bad cop Negotiate with the boss.
Use the “good cop” to your advantage.
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Case Studies
Research Projects
Business Partnerships
Technology Licensing
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Research Projects
Academic Interests
Publication
Collaboration
Increase knowledge
Obtain funding
Commercial Interests
Confidentiality
Exclusivity
Develop product
Generate revenue and profits
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Business Partnerships
“Senior” partner
Expand the business
Maintain reputation
Short-term focus
“Junior” partner
Expand the business
Build reputation
Long-term focus
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Technology Licensing
Licensor
Access to markets
Guaranteed revenue
Minimum continuing obligations
Low risk
Licensee
Access to technology
Low up-front cost
Guaranteed continuing support
Low risk
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Dispute Resolution
Arbitration Litigation
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Mediation
Interest-based Mediation
Mediator is a facilitator
Focus on interests, not legal rights or obligations
Options for creative solutions
Evaluative Mediation
Neutral evaluation
Based on legal rights & obligations
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Mediation
Qualities of a successful mediator
Negotiation & mediation process skills
Subject area knowledge
Lets parties make key decisions
Creative approach to the problem
Patience
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Resources
Cohen: You Can Negotiate Anything , Bantam,1980
Fischer, Ury and Patton: Getting to Yes,Penguin, 1991
Ury: Getting Past No, Bantam, 1993
Mnookin, Peppet and Tulumello: Beyond Winning , Harvard University Press, 2000
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Questions?
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