Negotiation & Skills for Tomorrow Fall 2024 PDF

Negotiation & Skills for Tomorrow Fall 2024 Shannon Faris Footer/Presentation Name, date, Page 1 Today 1. Negotiation 2. Skills for Tomorrow Case Footer/Presentation Name, date, Page 2 Let’s Negotiate Footer/Presentation Name...

Negotiation & Skills for Tomorrow Fall 2024 Shannon Faris Footer/Presentation Name, date, Page 1 Today 1. Negotiation 2. Skills for Tomorrow Case Footer/Presentation Name, date, Page 2 Let’s Negotiate Footer/Presentation Name, date, Page 4 Let’s negotiate What do you want here? What is your most optimistic hope? What is your realistic expectation? 1 minutes to strategize What will you settle for? 5 minutes to What does the other person bargain probably want? How will you find No side deals out? No questions How will you persuade the other person? What will your moves be? Footer/Presentation Name, date, Page 5 Negotiation--give and take decision-making process between two or more parties with different preferences. Footer/Presentation Name, date, Page 6 Footer/Presentation Name, date, Page 7 Two Types of Negotiation Distributive negotiation (Win-Lose) – usually concerns a single issue – a “fixed pie” – in which one person gains at the expense of another; position-based WHAT a party wants Integrative negotiation (Win-Win) – in which multiple interests are considered, resulting in an agreement that is satisfactory for both parties; interest-based  WHY a party is taking a position Footer/Presentation Name, date, Page 8 Distributive v Integrative Negotiation Strategies Distributive (Position) Integrative (Interest) Adversarial Partner Focus on winning Focus on challenge to be met Acquire the most value Create value for all parties Personal goal focused Solution focused Impose or sell your own position Find mutual interests and satisfaction Uses salesmanship and manipulation Make honest disclosure of respective interests Choose between relationship and achieve Emphasize relationship and substance goals Yield reluctantly to other Be open and willing to yield positions/interests Outcomes are win-lose or compromise Win-win collaborative outcomes possible Footer/Presentation Name, date, Page 9 Integrative Negotiation Approach: Explicitly based on problem solving Define and frame the issue in terms of parties’ interests Explain the respective interests Explore expanding the pie Generate options Evaluate options in light of the interests described step 1 Choose the option that best meets the interests described Develop and agree on a plan of implementation Footer/Presentation Name, date, Page 11  Is there ever a zero-sum negotiation? Rarely. If one side will gain nothing, why negotiate? Important note: If you want to maintain the status quo, be the second mover If you want change, be the first mover, prepared with notes and confident. Footer/Presentation Name, date, Page 12 Negotiation--give and take decision-making process between two or more parties with different preferences. Footer/Presentation Name, date, Page 13 Let’s Negotiate: Round 2 Footer/Presentation Name, date, Page 14 Let’s negotiate: Round 2 What do you want here? What is your most optimistic hope? What is your realistic expectation? 1 minutes to strategize What will you settle for? 5 minutes to What does the other person bargain probably want? How will you find No side deals out? No questions How will you persuade the other person? What will your moves be? Footer/Presentation Name, date, Page 15 Footer/Presentation Name, date, Page 16 Emotions and Negotiation Preparing emotionally for an upcoming negotiation: Identify ideal emotions—how you want to feel going into the negotiation Manage your emotions Know your hot buttons Remember – emotions are contagious Identify takeaway emotions—how you want to feel when you have finished Emotions impact both types of negotiations: Emotional ambivalence tends to be harmful in position-based negotiations. BUT in interest-based negotiations emotional ambivalence can facilitate cooperation and allow opportunity to integrate negotiators’ interests. Footer/Presentation Name, date, Page 17 Negotiation pitfalls Leaving money on the table (lose-lose) Settling for too little (winner’s curse) Settlement worse than alternative (agreement bias) Walking away from a potentially valuable deal How do you avoid these? Footer/Presentation Name, date, Page 18 BATNA Best Alternative To A Negotiated Agreement – A.K.A. “best outside option” or “plan B” Biggest source of power in a negotiation Footer/Presentation Name, date, Page 19 BATNA – BATNA—Best Alternative to a Negotiated Agreement – ZOPA—Zone of Possible Agreement Footer/Presentation Name, date, Page 20 How to develop your BATNA 1. List your alternatives (this is why research is really important) 1. What are your non-starters? 2. Evaluate your alternatives, calculate the value of each 3. Establish your BANTA (choose alternative with highest value) 4. Calculate your Reservation Price Footer/Presentation Name, date, Page 21 Reservation Price Reservation Price is your “bottom line.” – The point at which you are indifferent to whether you achieve a negotiated agreement or walk away. – Beyond the reservation price, you prefer no agreement. – Before negotiation, you need a clearly defined, quantifiable, and accurate reservation price! Reservation Price is equal to the value of your BATNA +/- opportunity costs, switching costs, ego, emotion (e.g., spite, pride) Don’t reveal your RP to your counterpart! Footer/Presentation Name, date, Page 22 Reservation Price Reservation Price is your “bottom line.” – The point at which you are indifferent to whether you achieve a negotiated agreement or walk away. Your reservation price – Beyond the reservation price, you prefer no agreement. needs – Before negotiation, you needtoa clearly be higher defined,than quantifiable, yourprice! and accurate reservation BATNA. If it’s not Reservation Price is equal tothen….? the value of your BATNA +/- opportunity costs, switching costs, ego, emotion (e.g., spite, pride) Don’t reveal your RP to your counterpart! Footer/Presentation Name, date, Page 23 Ethics and Negotiation How to determine what is an isn’t ethical during a negotiation: 1. Intent 2. Content 3. Activity Footer/Presentation Name, date, Page 25 Factors to consider in any negotiation: Know who you are—personality matters. Manage outcome expectations—in advance of the actual outcome Adhere to standards of justice—outcomes and PROCESS need to perceived as fair Remember your reputation—may win today to foreclose opportunities in future. Play long game. Footer/Presentation Name, date, Page 26 SKILLSFORTOMORROW: A Management Team in Crisis Tell me about the organization. Footer/Presentation Name, date, Page 28 What Are The Critical Issues? U S C C T Uncover the Select Create Choose the Translate your various the most a multitude solution(s) solution(s) into potential critical of potential with the an effective problems vis- problem(s) solutions. potential to implementation à-vis business be the most plan. goal. effective. Power, Influence Footer/Presentation & Politics Name, date, Page 29 Your Tool Kit of Theories/Concepts Values Decision Making Attitudes/Personality/Emotions Power Ethics Influence & Persuasion Motivation Politics Performance Perception Power, Influence Footer/Presentation & Politics Name, date, Page 30 SKILLSFORTOMORROW: Identify the Issues In your teams, identify as many issues as you can – Write them on the board – You have 7 minutes Power, Influence Footer/Presentation & Politics Name, date, Page 31  U S C C T Uncover the Select Create Choose the Translate your various the most a multitude solution(s) solution(s) into potential critical of potential with the an effective problems vis-à- problem(s) solutions. potential to implementation vis business be the most plan. goal. effective. Power, Influence Footer/Presentation & Politics Name, date, Page 32 SKILLSFORTOMORROW: Select an issue to focus on In your teams, narrow it down to one issue you want to focus on: – Erase all other issues and/or write final issue and circle it – Support in theory theories/concepts Each team will have 60 seconds to share issue and tie to concepts You have 5 minutes Power, Influence Footer/Presentation & Politics Name, date, Page 33 What Are Potential Solutions To The Problems? U S C C T Uncover the Select Create Choose the Translate your various the most a multitude solution(s) solution(s) into potential critical of potential with the an effective problems vis-à- problem(s) solutions. potential to implementation vis business be the most plan. goal. effective. Why OB? SFTFooter/Presentation Power, Influence & Politics Name, date, Page 34 SKILLSFORTOMORROW: Generate Solutions In your teams, come-up with as many solutions as you can Write them on the board under the issue You have 7 minutes Power, Influence Footer/Presentation & Politics Name, date, Page 35 What Are Potential Solutions To The Problems? U S C C T Uncover the Select Create Choose the Translate your various the most a multitude solution(s) solution(s) into potential critical of potential with the an effective problems vis-à- problem(s) solutions. potential to implementation vis business be the most plan. goal. effective. Why OB? SFTFooter/Presentation Power, Influence & Politics Name, date, Page 36 SKILLSFORTOMORROW: Select solution(s) to focus on In your teams, narrow it down to one solution – Erase all others/ write up on board – Tie solution to concepts/theories Each will have 2 minutes to share-out You have 8 minutes Power, Influence Footer/Presentation & Politics Name, date, Page 37 SKILLSFORTOMORROW: Epilogue Jones catches Alavarez before the meeting. He is SHOCKED by the information Allows Jones to focus on high-level issues – No interpersonal issues discussed Decide to have off-site retreat – Jones runs the directors through series of exercises Result: Honest and safe identification of where directors excelled, could improve Power, Influence Footer/Presentation & Politics Name, date, Page 38