nasca - negotiation - penn logo.ppt

8/14/2019 NASCA - Negotiation - Penn Logo.ppt

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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.

2


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3

Write down 1 or 2 specific learning goals for todaysworkshop.

Share your goals with someone sitting nearby.


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4

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

nasca - negotiation - penn logo.ppt

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