nasca - negotiation - penn logo.ppt
TRANSCRIPT
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Negotiation Workshop
Mario Moussa, Ph.D., MBA
President, Moussa Consulting
Co-Director, Wharton Strategic Persuasion Workshop
Senior Consultant, Fels Institute of Government, University of Pennsylvania
[email protected]/267-549-6694
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Agenda
Discuss the principles of negotiation.
Assess your negotiating style.
Practice.
Build a negotiation checklist, withemphasis on negotiating across
cultural boundaries.
Apply insights to current challenges
and opportunities.
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Write down 1 or 2 specific learning goals for todaysworkshop.
Share your goals with someone sitting nearby.
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NEGOTIATION
NEGOTIATION
NEGOTIATION
PERSUASION
INFLUENCE
You have choices in pursuing
your goals.
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In the last analysis, you cannot
learn negotiating techniques from a
book [or from a lecture].You must
actually negotiate.
James C. Freund,Anatomy of a Merger(1975)
You learn by doing.
What is
your
mindset? You have to takethe shuttle.
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Everyone has his [or her] own
negotiating style, and the worst
thing you can do is to adopt a
negotiating technique that does not
feel comfortable [because]credibility. . . is the most
important single asset of a good
negotiator.
James C. Freund,Anatomy of a Merger(1975)
Tricks dont work. Be yourself.
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An interactive communication process that may take placewhenever you want something from somebody else or they
want something from you and there is a potential for
conflict.
What is negotiation?
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Attitude to Conflict
Fear of LossPower of Expectations
Consistency andAuthority Principles
Reciprocity Norm
Self-Esteemand Self-Interest
I
Bargaining Style
IV
Relationships
Information-
Based
Bargaining
II
Goals
III
Authoritative
Standards
V
Their Interests
VI
Leverage
The Six Foundations of Effective Negotiation
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When you ask, focus on
reasons rather than facts.
Data-based statistics
Specific examples
Direct experience: demonstrationsand tangible objects
Personal testimony
Values or mission
Accepted practices or procedures
Leverage (positive, negative,normative)
Ethics
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Beliefs matter.
Sources: Microsofts Lost Decade, Vanity Fair, August 2012; Words on Trial,
New Yorker, July 23, 2012
Im just not moving my car.
No thought can be formed that
isnt informed by the past; or,
more precisely, we think onlythanks to analogies that link our
present to our past.
-- Douglas Hoftstedter and Emmanuel
Sander, Surfaces and Essences
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Inertia
Interests
Entropy
Meta-Culture
Where do beliefs and culture
come from?
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Culture affects decision-making.
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Culture
Response
Reference Point
Source: The Effects of Organizational Frames and Problem Ambiguity on Decision
Making, Journal of Business and Psychology, Vol. 11, No. 2, Winter 1996
Participative
Non-Participative
Data-Based Intuition-Based
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Organizations choose and structuretheir environments through interpretive
decisions that are extensions of
corporate culture. -- G. Morgan, 2006
FromExecutive Summary of NASAReport about the Columbia accident:
Culture traits and organizational
practices detrimental to safety
were allowed to develop,
including a reliance on past
successes, organizational
barriers, and lack of integrated
management.
NASAs safety culture has
become dominated by unjustified
optimism.
Organizational culture is based on
beliefs, values, and habits.
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Tune in.
People are motivatedby multiple interests.
Focus on the the most
powerful one.
Trade in the right
currency.
Pay attention to thepressures the other
person is responding
to.
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You can shift the balance of
needs.
What if the other
party will not talk?
What if the otherparty will not
listen?
What if the other
party feelsmisunderstood?
Power Moves
n Use incentivesn Put a price on the
status quo
n Enlist support
Process Moves
n Seed ideas
n Reframe the process
n Build consensus
Appreciative Moves
n Help save face
n Keep talking
n Invite new ideas
Kolb, Deborah M. and Judith Williams. Breakthrough Bargaining. Harvard Business Review, February 2001.
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Negotiation Test
Problem:Roosevelts campaign manager produced a pamphlet with a copyrighted photograph onits cover. Three million copies of the pamphlet had been produced. It had to be used and there was
no time to re-do it. The cost of using the photograph was one dollar per pamphlet. The campaign
was short on funds. The photographer, a man named Moffet, was hard up for money and hard to
reason with. What to do?
Sebenius, James. Six Habits of Merely Effective Negotiators.
Harvard Business Review, April 2001, pp. 8795.
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Schools of Negotiation Ethics
Poker
Idealist
Pragmatist
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What school do you
belong to, and why?
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The Prisoners Dilemma: What
game are you playing?
Prisoner B Stays
SilentPrisoner B Betrays
Prisoner A StaysSilent Each serves 6months Prisoner A: 10 yearsPrisoner B: goes free
Prisoner ABetrays Prisoner A: goes freePrisoner B: 10 years Each serves 5 years
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The Negotiators Dilemma
B Creates Value(Cooperates)
B Claims Value(Competes)
A Creates Value
(Cooperates)
Both cooperate
Both have good
outcome
A cooperates
B competes
A has a terrible outcomeB has a great outcome
A Claims Value
(Competes)
A competes
B cooperates
A has a great outcomeB has a terrible
outcome
Both compete
Both have a mediocreoutcome
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Win-win?
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Case: Rare book
E h l ti ti
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Degree of Assertiveness
High
High
Low
Low
Concern for
Others
Outcomes
Compromiser Collaborator/Problem-solver
Conflict AvoiderCompetitor
Accommodator
Everyone has a personal negotiation
style.
E t i bi th t
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Egocentric bias: we assume that
everyone is like us.
A few combinations to pay attention to:
Accommodators versus Competitors
Collaborators versus Compromisors
Avoiders versus Competitors
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Perceived Conflict Over Stakes
High Low
High
Low
Perceived Importance
of Future Relationship
Between Parties
I: Balanced Concerns(Business partnership,
joint venture or merger)
Best strategies:
Problem solving or compromise
II: Relationships(Marriage, friendship
or work team)
Best strategies:Accommodation, problem solving
or compromise
III: Transactions(Divorce, house sale
or market transaction)
Best strategies:
Competition, problem solving
or compromise
IV: Tacit Coordination(Highway intersection
or airplane seating)
Best strategies:Avoidance, accommodation or
compromise
Start by assessing your situation.
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Case Debrief
Th b i i i b L k
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The bargaining icebergLook
beneath the surface!
Positions
Issues
Interests
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There are four stages in a negotiation.
Closing and
Commitment
Preparation
Exchanging
Information
Opening and
Concession Making
(Bargaining)
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Who should open?
Both Know
Same
They Know
More
You Know
More
Lots ofInformation
Not Much
Information
Do Open Dont Open Do Open
Dont Open Dont Open Dont Open
(An cho r Effect vs. Info rmat ion Effect)
The Negotiation Preparation
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The Negotiation Preparation
Checklist
Review the Six Foundations
Bargaining Style: What is your styleand its implications for this specificsituation?
Goals: What are the highest, mostreasonable goals you can set?
Authoritative Standards: What are theauthoritative standards that apply tothis situation?
Relationships and Reciprocity: Whatare you willing to give on and underwhat circumstances? What can yougive the other side, at low cost, thatwill satisfy them?
Interests: What are the other partiesinterests?
Leverage: Who has the most
leverage? What you can do toincrease your own?
Shape the Situation
Positioning Story: What is acredible positioning story thatframes the situation and supportsyour goals?
Balance of Needs: What else is
going on in their company or
environment that will influence this
negotiation? How can you change
the environment to shift thebalance of needs, or resolve a
tension?
Your Value Proposition: What is it
about your offer that is distinctive
and uniquely attractive to the other
party?
The Process: What is your plan for
managing the negotiation process?
Anticipate Their Moves
Their Style: What is their style,
and their likely response to your
positioning story?
Their Interests: What are their
interests and priorities, and how
will they influence the moves they
make?
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Research suggests that good negotiators have
a few essential characteristics.
1. The #1 trait of all effective negotiators is a willingness toengage in systematic planning and preparation.
2. Negotiators with high expectationsdo better.
3. Credibility is highly prized by effective negotiators.
4. Effective negotiators also exhibit: listeningskills, knowledgeof
subject matter, verbal skills,and self-confidence.
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Attitude to Conflict
Fear of LossPower of Expectations
Consistency andAuthority Principles
Reciprocity Norm
Self-Esteem
and Self-Interest
I
Bargaining Style
IV
Relationships
Information-
Based
Bargaining
II
Goals
III
Authoritative
Standards
V
Their Interests
VI
Leverage
The Six Foundations of Effective Negotiation
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Application debrief
1. What insights/knowledge have yougained today that broaden or deepen
your negoti tion skills?2. When should you use influence or
persuasion rather than negotiating?3. What one or two specific things have you
learned that are most directly applicable
to the deal(s) or projects you are currentlyworking on?
The secret of success in
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To become an effective negotiator requires constant practice innegotiation thinking. It is a daily discipline, not an ability that can be
left dormant in normal times and tapped at will in an emergency.
Nor is there such thing as a line of ready-made, packaged
negotiation strategies waiting to be picked off the supermarket shelf.
Negotiation is simply the logical extension of ones usual
communication processes. Done well, it derives from long-term
philosophy, not short-term expediencies. In a very real sense, it
represents the expression of an attitude about ones life.
-- Paraphrased from The Mind of the Strategist (1982) by Kenichi Ohmae
The secret of success in
negotiation