Principles_of_Business_Negotiation

nullChapter 1Chapter 1Principles of Business Negotiation Principles of Collaborative Negotiation Principles of Collaborative Negotiation Collaborative Negotiation Principled Negotiation Negotiation Skills Homework AnalysisCollaborative NegotiationCollaborative NegotiationIt involves people with diverse interests working together to achieve mutually satisfying outcomes. Win/win negotiation Integrative bargaining Features of Collaborative Negotiation Win-win negotiation Win-win negotiation When all is said and done, you didn't get everything that you wanted, but neither did the other side. Did you win? Answer Answer Two people may receive the same outcome in measurable terms, say $10, but for one side that may be a loss, while for the other it is a win. In other words, expectations determine one's perception of any given result. If you think you won, you did. On the other hand, if you think you were cheated, you did get cheated. ImplicationsImplicationsBefore negotiations you should ask yourself two questions: "What is my best-case scenario? What is the least I'm willing to settle for?" The area in between is called your settlement range. If you can reach an agreement within your settlement range, it's a win! Integrative Bargaining Integrative BargainingIntegrative bargaining refers to the potential for the parties' interests to be combined in ways that create joint value or enlarge the pie. This strategy focuses on developing mutually beneficial agreements based on long term interests of the disputants. Distributive BargainingDistributive BargainingDistributive bargaining is a competitive negotiation strategy that is used to decide how to distribute a fixed resource. The parties assume that they cannot "expand the pie," so the more one side gets, the less the other side gets.Case StudyCase Study 一次，IBM公司同一家大银行做一笔计算机生意，双方为价格争执不下，银行拿另一家公司来压IBM公司。在关键时刻，IBM公司的总经理向银行的负责人问道：“阁下，您是想要和一个硬件商人做生意？还是想找一个合作伙伴？” 对方愣了一下，立即明白了他的意思，说道：“我想找个合作伙伴。” “那么和你的新伙伴握手吧。” 随后两只大手握在一起，生意就此成交了。 What does the manager of IBM mean? Taking each other as friends not as adversaries.Features of Collaborative NegotiationFeatures of Collaborative NegotiationCommon interests are valued and sought; Limited resources do exist, but they can usually be expanded through cooperation and creativity; Interdependence is recognized and enhanced; The goal is a mutually agreeable solution that is fair to all parties and efficient for the community/group.Disadvantages Disadvantages May compromise and accommodate in ways not in his/her best interests; It increases vulnerability to deception and manipulation; It makes it hard to establish definite aspiration levels and bottom lines; It requires strong confidence on one’s perceptions regarding the interests and needs of the other side.Principled Negotiation Principled Negotiation Interests: Focus on interests not positions Options: Invent options for mutual gain People: Separate the people from the problem Criteria: Introduce an objective criterionFocus on interests not positionsFocus on interests not positionsProblem: As Fisher and Ury explain, “Your position is something you have decided upon. Your interests are what caused you to so decide.” People tend to take extreme positions that are designed to counter their opponents’ positions. Defining a problem in terms of positions means that at least one party will “lose” the dispute. Orange Orange The classic story to illustrate this describes two sisters fighting over the only orange in the family larder. Each sister must have the entire orange for herself, any less is impossible. A wise parent asks each of the girls in private why she wants the orange. One explains she wants to drink the juice; the other wants to use the rind to cook a pudding. Why does focusing on interests work?Why does focusing on interests work?There is always more than one way of fulfilling each other’s interests. Two sides can always find certain common interests. Identify interests Identify interestsPut yourself in the other person’s shoes. Respect your counterparts as human beings and recognize their needs and interests underlying their positions. Discuss interests with the other party Discuss interests with the other partyGive your interests a vivid description, be specific. Demonstrate your understanding of the other party’s interests and acknowledge them as part of the overall problem that you are trying to solve. Discuss problems before proposing a solution. Direct discussion to the present and future, away from the difficulties of the past. Be concrete but flexible.Invent options for mutual gainInvent options for mutual gainFactors hindering alternative options seeking (1) premature judgment; (2) searching for the single answer; (3) the assumption of a fixed pie; (4) thinking that “solving their problem is their problem.” Steps of alternative options seeking:nullSeparate the act of inventing options from the act of judging them Develop as many options as possible before choosing one Search for mutual gains Identify shared interests Dovetail differing interests Invent ways of making the other party’s decision easySeparate the act of inventing options from the act of judging themSeparate the act of inventing options from the act of judging themBefore brainstorming Define your purpose Choose a few participants Change the environment Design an informal atmosphere Choose a facilitator During brainstorming Clarify the ground rules, including the no-criticism rule After brainstorming Check the most promising ideas Invent improvements for promising ideas Develop as many options as possible before choosing oneDevelop as many options as possible before choosing oneAdopt the four types of thinking in inventing options Look at the problem through the eyes of different experts Invent agreements of different strengths, such as “weaker” versions Change the scope of a proposed agreement— “fractionate” the problem into smaller units Case Simulation Case Simulation Simulated Negotiation 1: 有一段时间，卡内基在每个季度都有十天租用纽约一家饭店的舞厅举办系列讲座。后来在某个季度开始时，突然接到这家饭店的一封要求提高租金的信，而且对方要求将租金提高2倍。当时举办系列讲座的票已印好，并且都已经发出去了。卡耐基当然不愿意支付提高的那部分租金。几天后，他去见饭店经理。 Work in group and create as many options as possible for mutual gain. Taking the principles into consideration.Separate the people from the problemSeparate the people from the problemPeople problems Perception: Form up accurate perception Emotion: Cultivate Appropriate Emotion Communication: Strive for Better Communication Form up accurate perception Form up accurate perceptionConflict, very often, is not caused by what happens, but by how people conceive what happens. Increase the capability of each party to see the other side’s point of view (for example, by reversing roles). Avoid blaming the other party for your problems. Discuss each other’s perceptions of the problem. Get the other party to participate in the mutual activities. Seek to make negotiation proposals consistent with the other party’s values.Case StudyCase Study 有一天一位日本商人请一位犹太画家去餐馆吃饭，在等菜之际，画家取出纸笔给在旁边谈笑风生的餐馆女主人画起速写来。一会就画好了，日本商人看后，不由得连声赞叹：太棒了。 这时，犹太画家转过身来，面对着他，又在纸上勾画起来。还不时的伸出大拇指，像是在比量什么。日本商人一见画家这副架势，知道这回是在给他画速写了，便一本正经的摆好姿势让他画。过了十分钟，画家停下笔来说：“好了，画完了” Anything interesting is going to happen?null日本商人松了一口气，迫不及待的欠过身去，一看却大吃一惊，原来画家画的根本不是日本商人，而是自己左手大拇指的速写。 What does this story reflect?Case StudyCase Study 20世纪70年代，埃以冲突不断，一位美国律师获准同埃及总统纳赛尔讨论埃以冲突的问题。律师问纳赛尔：“你希望梅厄夫人采取什么行动？” 纳赛尔坚决的答道：“撤退！从阿拉伯的领土上完全撤退！” 律师又问：“如果明天早上梅厄夫人在广播和电视上宣布说：‘我代表以色列人民宣布，我国将从从1967年以来占领的土地，包括西奈半岛、加沙走廊，西海岸，耶路撒冷和戈兰高地上完全撤退，但是阿拉伯国家没有做出任何让步。’那么，情况会变成什么样呢？” 纳赛尔听完，大笑起来，说道：“啊，她在国内要有麻烦了！”Cultivate Appropriate Emotion Cultivate Appropriate Emotion Your emotion affects that of the other party. Recognize and understand emotions of both parties. Make emotions explicit and legitimate. Allow the other party to let off steam. Stay calm with the other party’s emotional outbursts.Case StudyCase Study美国总统林肯在参加一次国会会议时，在换衣间里擦皮鞋，一位议员见状说：“林肯先生还自己擦鞋。” 语气中显然带有挖苦意思。这时，林肯先生应该控制住自己的愤怒，一笑置之，还是要及时反击呢？ 只见林肯反驳道：“那么，议员先生，你擦谁的鞋子呢？”Strive for better communicationStrive for better communicationNegotiation is a process of communicating between parties for the purpose of reaching a joint decision. Be an active listener and acknowledge what is being said. Speak to be understood. Avoid being judgmental or debating the other party as an opponent. Avoid criticism that may hurt the other party’s feelings. Speak for a purpose.Persuasion with “Yes”Persuasion with “Yes”一家公司的总工程师通知西屋公司说，不准备订购他们的发动机了，理由是发动机的温度过高。西屋公司的推销员前去交涉。 他们认为： 西屋公司发动机温度正常； 发动机温度可以高出室内温度22度。 这时应该怎样说服对方购买？null推销员说：“我同意你的意见，如果发动机太热就不应该买它。发动机的温度不应该超过国家规定的标准。” 对方答：“是”。 “有关规定说，发动机的温度可以高出室内温度的22度，对吗？” 对方说：“对” “厂房有多热？”对方答：“大约24度”。 “22加上24度是46度，是不是很烫手呢？” 对方答：“是的” 就这样推销员使对方又接受了订货。Case StudyCase Study买方购进了一台机械设备，在安装试运行中，发生了故障。卖方维修了3次，效果不理想。这时你与卖方交涉，解决该问题。 你会如何与卖方谈判？在阐述己方立场时具体会如何说？Two different waysTwo different ways“你们卖给我们的设备有问题，技术不过关。” “你们交付这种已经淘汰的陈旧设备，维修服务也不负责，我们要求退货和赔偿。” “我们从你们那购进的这台设备，已经出现了三次大的故障。看起来，设备还不能正式投入生产，一天要损失上千元，那么，我们是退掉这台设备还是更换主要部件，还是采取其他补救措施？” Insist on Using Objective CriteriaInsist on Using Objective CriteriaMarket value Precedent Scientific judgment Moral standards Tradition Course of dealing Outside recommendations A flip of a coin … …nullThe guidelines for objective criteria Independent of wills of all parties; Legitimate and practical; Acceptable to all parties. To choose a fair procedural standard To discuss them with the other party Frame each issue as a joint search for objective criteria. Reason and be open to reason as to which standards are most appropriate and how they should be applied. Never yield to pressure, only to principle How to be competitive?How to be competitive?1. A high starting point, ask more and ask firmly 2. Concessions: make small concessions each time, and for each concession ask for reciprocation. 3. Know more about your opponent and make use of his/her weakness 4. Use standards to justify your demand 5. Stick to the last minute, you may simply win.Being a tough negotiatorBeing a tough negotiatorJust as strong is the word we often use to describe good coffee, tough is the word we often use to describe good negotiators. There's a definite advantage to being known this way; it immediately reduces your opponent's expectations. Toughness is partly about your game face, partly about technique. Don't talk too muchDon't talk too muchBe terse. The less you say, the less you reveal about your own position. The less you say, the more you can listen for weaknesses or opportunities. Use the power of silence tends to make the other side uncomfortable. In fact, many would rather tell you where the treasure is buried than tolerate these awkward moments.Be stingy with your concessionsBe stingy with your concessionsIt can really grind your opponents down. Make them work for their supper. They may skip dessert, the appetizer or even the main course altogether. If you must give, give just a little, and get something back in return.Be firm. No means no.Be firm. No means no.As they say in the movies, "Resistance is futile." If you don't want to give a point, make your opponents feel like they just hit the wall. You will not be perceived as a jerk, so long as you offer a plausible explanation for your position. Stake out issues that are non-negotiableStake out issues that are non-negotiableThis is classic. By framing an issue this way, you make it twice as hard on the other side. Don't care too muchDon't care too muchDesire is the fulcrum at the bargaining table. Persuading your opponents that their deal just aren't that important is the ultimate attitude adjustment. They will not pester you with unending demands if they sense you're 30 seconds away from blowing them off. Keep things movingKeep things movingDon't let your opponents backtrack on you. Once an issue is settled, it's settled. Be supremely efficient and businesslike. Your opponents must feel that your time is precious and that you do not suffer fools at all. Play to your advantagePlay to your advantageIf you've got more experience, make sure your opponents know it. If you can crush them with your card file, drop a few names. If you know your opponents are in a hurry, take your time. Stay focusedStay focusedIn detailed negotiations, mental stamina is a tremendous asset. Victory goes to the dogged. It's just like sports. Stay strong through the finish. The last person standing at the bargaining table is the one with the greatest power of concentration.Homework AnalysisHomework AnalysisYou are friends, so collaboration is necessary. But in one-deal negotiation, how to be competitive is also important. Be creative and quick in inventing options is most important in collaborative negotiation. The win result is based on your perception. When people feel happy about the result, they tend to like negotiation better.