Negotiation


WAR STORIES & OTHER ANECDOTES
ABOUT INTERACTIONS BETWEEN PERSONS

OR

NEGOTIATING AS WE KNEW IT
BEFORE IT GAVE WAY TO LAW SUITS

Joe Borgatti / Notes for class lecture

 

The bibliography on negotiating grows each month. Titles like: Negotiate like the Pros, Negotiating your Compensation Package, Advanced Negotiating, Conflict Resolution: Getting to Yes, Beat the Car Salesman, Secrets of Power Negotiating, How to Negotiate Anything with Anyone Anywhere in the world. On the Web found 73,542 documents on the subject.

Negotiation possibly more associated with managers than leaders. Managers are seen as seeking solutions. The leaders are characterized as people creating new approaches and imagining new areas to explore, projecting ideas.

Where they come together --leadership and management-- is when you want to effect change in an organization like Reengineering. It has to be negotiated at several levels. You have to deal with resistance to gain commitment, and this means negotiating the matter.

 

OUTLINEARGUMENTANECDOTE
WHAT IS NEGOTIATING

A scientific process or a social relation

Its known as a process because there are sequential steps

Conferring, explaining requirements, hearing others' needs, seeking common ground. A process of discovery and adaptation

Not (yet) done by modem - that's chess - a series of moves to win advantage, until the other cannot go on.

The law suit is its opposite

In "The Art of The Deal", Donald Trump calls it the art of persuasion (this may be more true of real estate deals than of others), of overcoming obstacles

Mediation -use of an intermediary agent between conflicting parties, is a form to an extent & occasionally serves a useful purpose -

Arbitration a form of it: -comes between negotiation and law suits employee rights at Polaroid are settled by an outside arbitrator arbitration (JRS and the royalties case with INCO - -part of regular remuneration or outside it?

WHY DO WE NEGOTIATE?

What's there to negotiate?

What do people assume when they proceed to negotiate? Is there a hidden agenda?

Because a deal as presented, as it stands, doesn't fit one of the parties' needs or requirements -to find out what the other one wants.



Need may be psychological or substantive

Sometimes its the way things are done - as in buying a house or getting an executive job

Wall St lawyer: its about improving your position

Another lawyer: Negotiate a settlement. Thus never got to a lawsuit

My question to a veteran financial executive. Why do you negotiate? To get what I want. We will see what he intends by this.

RAM with Innovation luggage in NY

Baseball players and the owners

CAN ANYTHING BE NEGOTIATED?Conflict; resolving controversy

Labor negotiations

corporations negotiate to gain permits, access to something

contract negotiations

Mining rights, tax regime,

Environmental conflict

Tanzania - to negotiate their acceptance of change (Reengineering) took them to an animal preserve

Permission to set up shop.

The recent agreement between Disney and New York City to invest significantly to revitalize Times Square

Ex of INTEL - months negotiations under simplified environmental permits in exchange for a company doing better than the law requires

or a proposed sale of pollution credits, or between a chemical plant and its neighbors

Negotiation between a company and a city or state to keep that company there. Or to being it in; ditto re ball clubs

Negotiations with Somoza to open a branch

Negotiating with Dictator Stroessner

HOW DOES IT WORK?





WORKS BEST WITH WIN WIN

Depends on parties and circumstances -can be simple or complex



Essentially - parties meet at a specific time in a determined place and talk it out. Can be formal -set a place, time, agenda, stipulate who will attend. Works best wen the parties are comfortable with the arrangements

I win you lose

conflictive approach

Zero sum? eventually reach a compromise

Win-win?

Simple: IIC management reaction to report

Exmibal ex of complex and formal -3 yrs & many items



My negotiations with Kristjanson and Sopko in a car



Sam Goldwyn, head of a Hollywood studio and another studio chief wanted a certain big star at the same time. In the end, someone suggested that the dispute be settled by arbitration. Goldwyn agreed reluctantly: "Okay, as long as its understood that I get him".

ANY RULES OR PRINCIPLES?

Prins. No winners or losers

Be flexible

Compromise

Rules: Preparation













Planning







Execution





Principles confused with rules of conduct

Principles:

Compromise

You have to prepare - be clear about what is to be negotiated









Define the issues - get the facts.











Understand other's position

Know your own needs (what you need to get out of it) - psychological or real? What might you be willing to give up to get out of it what you need? - can't expect to get exactly what you want. Develop a strategy that takes both to gain

Execute with flexibility and patience







Give to get - as in El Sal for bank

How to prepare for it? They say learn people skills; learn negotiating tactics, be one up on the other

Probably best preparation is to further your understanding of human behavior and follow the basic principals

On-the-job training vs myriad of courses and books on how to do it

Role playing

Donald Trump would agree on preparation but would add that you have to keep pushing and pushing and pushing until you get what you want - sometimes settling for less. The key he says, is you have to be born with it.

57 varieties an ex of poor preparation. Former owner held rights to brand names

Kashoggi Yacht

This carried the day in Exmibal

Negots with miners in Nicaragua -20% converted into 100% of 1 mine in jnt venture

El Sal opening bank- gave them savings accts, got opening and rediscounts

Clearest exs of good negotiations are the labor management negotiations in auto industry. Exmibal took 3 yrs.

The Contract with America broke the rule. The proper course would have been to negotiate a program that would have benefitted America and involved compromise by both parties. Instead they polarized, passed 1/3 of the program and wound up shutting down the government.

ARE THERE SPECIAL TECHNIQUES?

A lot of tricks. Books full of them. Quote from internet pull down













Who should do the negotiating?

-hired gun?

-top person?

Depends on with whom negotiating

-the inscrutable east

What about style & approach? Ex. Competitive vs collaborative; combative vs passive; adversary tactics

Team approach -good cop bad cop

Gain rapport

Info sharing - provide negotiators with a shared body of knowledge

Communicate

Street smarts - do's and don'ts

Someone who has a real stake in the outcome

body language

How DDR negotiated with the Japanese

give a reason why its to their advantage

understand your point but I can't do it this way - how it saved the day in purchasing a corporate jet

Baseball owners using a surrogate to negotiate, instead of one of their own - an impersonal mode that encourages equally impersonal approach on the other side. The players too.

hope for an intelligent adversary - problem with the Nic miners

or at least an honest one --Neville Chamberlain, Britain's Prime Minister, went to Munich to see Hitler in 1938, came back waving an agreement he had negotiated with he Nazi leader and said, "I believe it is peace for our time". Less than a year later, Britain and Germany were at war after Hitler disregarded the promises of nonaggression he had agreed to.

 

 

GLOSSARY:

ARBITRATE to judge or decide as in the manner of an arbitrator

ARBITRATOR: a person chosen to settle the issue between parties engaged in a dispute or controversy

ARBITRATION: the process by which the parties to a dispute submit their differences to the judgement of an impartial person. A form of negotiation

BARGAIN: to bargain is to negotiate the terms of a sale or agreement; fitsd a psychological need in some cultures or among some people

CONSENSUS: Consensus is simply a process of discerning the sense of the group. Reaching consensus is not necessarily reaching unanimity or 100% agreement on everything by everybody. Consensus isn't uniformity. Rather, consensus is the mutual feeling that all concerns have been addressed. What is required is that everyone has been heard and understood. Time lost in collective decision making is regained at the implementation stage.

The consensus process is fostered by valuing and encouraging individual differences. Adhering to this rule works to reduce or avoid judgements, competition and arguments. A group comes to consensus on the best decisions after its members have understood as many different perspectives as time permits. In this way, the group works cooperatively to make the best decision in support of the matter at issue.

MEDIATE: to resolve or settle (differences) by acting as an intermediary agent between two or more conflicting parties.

MEDIATION: a form of negotiation

NEGOTIATE: to confer with another in order to reach agreement