Effective Negotiations [BE II Course Lecture]

T H U N D E R B I R DTUNGHAI UNIVERSITYDepartment of International Business - Taichung

Steve Varela

Professor of International Business© 2009 – All Rights Reserved

Effective Negotiations

WELCOME!!!!!!

“Tell me and I'll forget; show me and I may remember; involve me and I'll understand.”

-Chinese Proverb

Business English Negotiations

• Welcome– Instructor– Index Card: Number + English_Name + Email

Personal Info, work experience, academic focus, goals for this course, travel/overseas experience, sales and/or negotiation experience.

– Individual Student Introductions• Today’s Agenda:

– Preview of Course– Pair’s and Group’s– Question of the day– Chapter 1

• Textbook: Effective Negotiations by Jeremy Comfort,– Oxford University Press , 2007

Syllabus

Business English Negotiation Tunghai University, Dept. of International Business

Syllabus I Basic Information 2 Credit Hours a. Tuesday 20:20-22:10 – H206 b. Wednesday 13:10-15:00 – M109 c. Wednesday 18:20-20:10 – H209 d. Thursday 13:10-15:00 – M108 Fall, 2008 II Faculty Contact Information Name: Professor Steve A. Varela Office: Dept. of Intl. Business # 615 Office Hrs: Monday 13:10-15:20

Wednesday 15:20-17:10 or by appointment.

Phone: (04)-2359-0121 x3-5329 Fax: (04) 2359-2898 Email: [email protected] III Course Description Welcome to Business English Negotiation! Today’s business managers spend the majority of their time communicating up, down and across organizational lines. Research often attributes “communications” as the principal reason why many projects fail. This course will concentrate on improving the essentials of modern business communication with negotiation skills as its theme.

Additional Information Steve A. Varela, born in Chicago, USA speaks English, Portuguese and basic Spanish and has lived and worked in the US, Chile, Mexico and Brazil within the technology, telecommunications and agricultural sectors. www.ipartnersllp.com/svarela.htm

Prerequisites:

1. Intermediate English Capability 2. General Business Understanding

This undergraduate or extension level course anticipates students have a basic fluency of written and spoken English in addition to general business academics or professional experience.

A word on Activity Based Learning

Left side is Old World method, Didactic.

Right is CollaborativeLearn from each other Students are more active…understand more


-Chinese Proverb

Course Preview: A Chapter Every Two Sessions

1. Preparing the “Ground” (Introductions, goals, place)

2. Setting the Agenda (Negotiate what you will negotiate)

3. Establishing Positions (What you want or have)

4. Clarifying Positions (Check understanding)

5. Managing Conflict (How to criticize)

6. Proposals (Creating solutions)

7. Bargaining (Exerting pressure)

8. Conclusion& Agreement (Follow-up, implementation)

Typical Chapter Activities (8)

Session 1:

Topic Introduction & DVD Clip

International Culture & Tactics

Language Focus

Session 2:

Negotiating Practice

Group’s (4) and Pair’s (2)

Evaluation Criteria

• Activity Based Learning…Participation is key to Success!– 34% of final Grade depends on Class Participation

• Midterm Essay or Simulation (Chapter 4)– 33% of Final Grade– 6-8 Sentences or 5 minutes

• Final Exam – Negotiation Simulation– 5 Minutes – Video Taped / Analysis– 33%

Question of the Day (Graded Exercise)

• At the start of each chapter, one group answers the first two communication skills questions at the start of the class.

• List question on blackboard & present your answer to the class. 5 Minute Limit.

• Have ready before the class begins.i.e. Chapter 1 = Group 1, Chapter 2 = Group 2…

Questions???



*****Session 2****

Chapter Introduction Question

Group 1

Present the Answer/Commentary to the First 2 questions of Chapter1.

… Group1.

Preparing the Ground

• A negotiation is a meeting in which both parties need each other’s agreement to reach a specific objective.

• Various Types of Negotiations– Internal / External– Long / Short– Formal / Informal

• What is your Goal?

Video Negotiating Context: Preparing the Ground

• Okus IT– Andrew is the Export Sales

Manager, He made the initial contact and knows Sean

– Karen is the project manager. She made the contract specifications and this is her first international negotiation. She is anxious.

• Levien– Francoise is the IT

Manager, she is ready to be promoted to Logistics Head. She is Keen that her team (employees) are protected.

– Sean: from Levin’s Chicago office. He was sent to Brussels to develop Levin’s procurement policy

• Situation: Andrew and Karen have arrived at Levin’s Brussels office to meet Françoise and Sean

Preparing the Ground Version 1:

Watch their body language with no sound?

What problems do you expect?

Version 2:

Body language…

Introduction differences?

EN Chapter 1 Version 1.avi


Preparing for a Business Negotiation (p.68)

• Objectives: best, worst, bottom line

• Strategies: main areas, sticking points, best order for discussion, concessions

• Roles: who is responsible, skills of team members, the other team

• Communication: maintain positive communication, note taking, who asks questions? Who is the Chair?

Chapter 1: Preparing the “Ground”

• Culture and Tactics– Work in Pair’s– Read “Task Oriented” or “People Oriented” – Present a Summary to your partner (pair)– 15 Minutes….

Chapter 1: How Do You See Yourself?

iI start my day with a list (to do)

ii I start my day with a chat (talk)

iI don’t let personal feelings influence decisions

ii I Consider human angle first

i Friendship not important if good job at work

ii Important to like people I work with

How Do You See Yourself? (p.2)

i Meetings only purpose is to get things done

ii Meetings are opportunities to develop relationships

iI fell end of day frustration if my list not finished

ii Feel “low” (sad) if have not got on with colleagues

Scoring: 2 Points for every i

0 Points for every ii,

1 Point for every neither

What’s your score?

• 6-10 Points = Task-Oriented• 4-5 Points = Balanced• 0-3 Points = People – Oriented

• Neither is better• Lets us know who we are and what to

plan for.

Language Focus

Formal• Welcoming

– On behalf of…– I’m very glad to welcome you– It’s a pleasure to see you here

• Introductions– This is…He’s in Charge of…– He’s responsible for...– He is our President/Director

In-Formal

– Welcome to– Thank you for coming– It’s nice to be here

– Let me introduce you to…

– Have you met…?

Language Focus, (p.11)

Formal

• Greetings– How do you do– Nice to Meet You

• Small Talk– Did you have a good trip?– How was your flight– Is this your first visit to…

In-Formal

– How are you?– Great to see you again!

• Starting the Negotiation– I was wondering if I could

start by saying…..– Were short of time, so lets

get started

– We’ve got a very full agenda, so perhaps we’d batter get down to business.

Next Session:

• Practice Negotiating!!!• Use Checklist P. 68, #9 to prepare the following:

– Objectives– Strategies– Roles– Communication

• Speaking Practice #4 in class, p.12

• Pair Work & Group Work 1, Neg. 1 & 2, p.13

Negotiation Checklist

• Objectives• Strategies• Roles• Communications

Questions???

• Prepare for Negotiation #1…

Negotiation #1 (p.13)

• Group up…work in pairs (2)• Use checklist to prepare and then

negotiate the sale/purchase of the car

• 15 minutes.

Group Work 1: Negotiation 1

• Two want a ban on smoking

• Two want free smoking

1. Use Checklist and Negotiate

2. Be prepared to discuss what happened to the class.

3. 15 minutes.

For next Session…

• Chapter 2: Setting the Agenda– Read: pages 16-20.– Read: Video Transcripts Unit 2 (version 1 & 2)

– Do Questions:» 7 & 1on p. 17, 2 p. 18, 3 p. 19, 4 p. 20

– Review: Negotiating Practice, Negotiation #1, p.22

– Group 2 does Q1 “Chapter Introduction Chapter”

Feedback

• Any questions????

• Visit my office anytime:– #M615B OR email.



Welcome Back!

Chapter 2: Setting the Agenda

Question of the Chapter

Chapter2

Present the Answer/Commentary to the First question of the Chapter (2).

…Group2.

Setting the Agenda

• Some basic negotiations have only one point of discussion

• Others are more complex

…But all need a sense of direction, a clear understanding of the objectives and a plan

…often, the Host is responsible for Chairing or controlling the negotiation.

Video Negotiating Context: Agenda

• Okus IT– Andrew ready to present

opening presentation– Karen expects Francoise

to set the agenda

• Levien– Francoise worried about

protecting her staff’s jobs– Sean: wants to establish

a clear and strong negotiating position

• Main Issues (aspects): – Who is in control,who is Chairing here???

Video: Roles of Chairperson, Agenda & Procedure

Version 1

1. What do you expect to happen in the first stage of the negotiation?

2. EN_Chapter_2_Version_1a.avi

3. What went wrong?

4. Now, half focus on Levien side other half on Okus side

EN_Chapter_2_Version_1a.avi

Version 21. EN_Chapter_2_Version_2.avi

2. How about Francois’s new performance?

3. Now, lets identify the checklist steps…

4. EN_Chapter_2_Version_2.avi

Setting the Agenda (p.71)

• Introduction: Who present? Roles?

• Purpose/Objectives: Shared Expectations and Critical Issues

• Agenda Structure:How to Start and Finish the meeting?

• Procedure/Process: Will there be a Chair? Questions at end/during? Minutes?

Chapter 2: Setting the Agenda

• Culture and Tactics1. Work in Pair’s

2. Read “Universalist” or “Particularistic”

3. Where do you fit? More Univ. or Part.?

4. What are advantages of each?

• Universalistic– One correct way– Follow same

procedure always

• Particularistic– Adapt to each

situation– Process is

customized

What are the Advantages and Disadvantages of each?

• Particularistic • Universalistic

Identifying Working Cultures (Which is Which?)

• Crantons Engineering: old fashioned engineering firm run along traditional lines

• Gilson, Merritt & Partners: Management Consulting, young and dynamic

• ATZO: Large chemical multinational; merger of German and Italian companies; Bureaucratic, Unresponsive

• COMinternational: Medium sized financial services firm; reputation for financial management and control systems. Young CEO

Your Working/Studying Culture Experience

• Universalistic

At your job/school, which style is commonly used?

Examples???

• Particularistic

Break …

Speaking Practice (#4, p.20)

1. Group up!

2. Do the following in your groups…

3. Present your introduction to the class (2 minute introductions)

• Use the Negotiation Checklist (p.71) to organize your introduction and agenda talk

• Use tips from Language Focus for your vocabulary

• 15 Minutes to prepare.

Speaking Practice

• Important: Use a structured introduction– Act as a Chairman, Chairwoman.– Show Leadership.– Practice in your group…

– Afterwards, we will present to class ---with Gusto!

Presentations….

• Group 1-X • 2 Minute maximum time

• Introduction only

For next session…

• Chapter 2: Negotiation Practice– Re-Read pages 16-20.– Review Language Focus examples– Review: Negotiating Practice, Negotiation

#1 & 2 p.22

– Be prepared to present to classyour2 minute Introductions onlyto No’s. 1 & 2.

* Not a full negotiation- just introduction.

Feedback


• Visit my office anytime or email:– #M615B

• Office Hours: Monday 13:10 – 15:20

Wednesday 15:20 – 17:10


Session 4

Setting the Agenda II

Session Agenda

1. Vocabulary exercise: P. 19 No. 3

2. Complete Speaking Practice Session 2

3. Negotiation Practice, P.22, No.1 or 2.

• Everybody Participates!

Negotiation Simulation

• Negotiating Practice, P. 22, – Negotiation # 1

• 2 Buyers: Toy manufacturer• 2 Sellers: Training consultants

• Be prepared to present your introduction to class with Gusto!

• 2 minute maximum

*Only the introduction, not a full negotiation

*****Break*****

Introduction Simulation

• Negotiating Practice, Page 22, # 1 or 2– 2 Buyers– 2 Sellers

• Negotiate in Pairs for 30 Minutes– Take notes as to

what happened and when

• Be prepared to present your results to class

Ex.Introduction Structure

Names

Purpose

Roles

Logistics

Timing

Proposal

Issue Resolution

Negotiation Introduction No. 1

• Groups X-1

• Saroyan-Arttech: Toy Manufacturer seeks management training program

• Consultancy: Sent materials and was invited to make a presentation on your training services.

Negotiation Introduction #1, p. 22

• Group N – 1…– Buyers (2)– Sellers (2)

• 3 Minute Maximum NegotiationSimulation

• Focus on: Introduction Structure.

Negotiation Introduction #2

• Futura: Large Manufacturing needs packaging materials

• DTX Packaging, Vendor of packaging material.

Groups 1-X, 3 minutes, alternate speakers

For next session…

• Chapter 3: Establishing Positions– Read: Pages 24, 25, 27, 28& 29– Read: Unit 3 Video Transcripts– Review Culture and Tactics Styles

• Individualist & Collectivist• Do p. 25-26-27 #’s 1, 2 &3

– Review/Practice Language Focus• Group 3: Present your Chapter Question

before class starts



Establishing Positions

Today’s Agenda: Establishing Positions

1. Dilemma of Positions1. Positive and Open vs. Room to Bargain later

2. Hold Backpermits a discussion ( & creativity)

2. Goal: Find out what they think about your offer1. Through Effective Feedback & listening

3. Culture and Tactics: Direct vs. Indirect

4. Language Focus: Vocabulary tips

Video Negotiating Context

• Okus IT– Andrew presents key

aspects– Karen Assists

• Levien– Francoise expects key

aspects– Sean: Chicago waiting

for staffing info.

• Main Issues (aspects): – Staffing levels: Take all Levin IT Staff?– Support levels

• Level A: Full Support and New Projects• Level B: Full Support, Projects Cost Extra

ClipVersion 1: No SoundEN Chapter 3 Version 1.avi

watch body language

both presenter and audience

Version 1: SoundEN Chapter 3 Version 1.avi

What should Andrew do?

Start/stop

Version 2: No SoundEN Chapter 3 Version 2.avi

watch changes

note style

Pauses to check for audience agreement, confirmation

Andrew’s Presentation Style…

How to Improve?

Language Focus…Asking for and giving feedback(p.27)

• Group Up.– Each Group pick a section and write on a piece of

paper, add missing words or put each phrase in a short two sentence dialogue.

– Each person should do only one phrase– Write you Name & Answers on paper, give to

instructor – we will review a few in class.

• 15 Minutes.

Culture and Tactics

Direct Communication• Say what you think• Few words• Practical, efficient

Indirect Communication• Concern about feelings• Damage relationship• Save face / time to think

& respond

Andrew frustrates Sean (too slow to get tothe point)

“I’m interested to know what your position on our staff is?”

Direct versus Indirect

• Which style (direct or indirect) is yours?• Which style do you like?

• Which is more effective? Why?

Group Exercise: Culture and Tactics

1. What is the more direct question or statement behind these sentences? (Page 25, #1)

1. Change sentences to Direct Style

2. Do A, C, E

2. Indirectness is achieved by making questions and statements vague and not specific. (Page 26, #2)

1. Change sentences to Indirect Style

2. Do B & D

• Write you Name & Answers on paper, give to instructor – we will review a few in class.

• 15 Minutes.

For next session…

1. Speaking Practice, p.28 #5, G1=a, G2=b, G3=c…

– Work in Groups (2+2)– Create brief introductions for situation ( 2 mins.)– Invite feedback often– Practice and then change roles

2. Negotiating Practice, p.29 Group Work 2– Groups choose a topic– Prepare presentation to sell your product (5 mins.)– Invite feedback from other group members– Class asks questions

Feedback

• Was anything unclear? Fuzzy?

– Stop by my office: M615B or– Email: [email protected]

Or, Write it down and leave it at the desk…

…I will address it next time we meet.

Thank you.



Establishing Positions IISession 6

SessionAgenda

• Speaking Practice p.28

– Work in Pairs.– Take turns to make brief

introductions to the following negotiation situations.

– Make sure to invite feedback as often as possible.

– Your partner should listen and respond to your presentation.

• Negotiation Practice p.29

– Work as a Group.– Prepare a short

presentation to sell your version of the product, service or idea.

– Integrating techniques and language which involve the audience (customer).

– Rest of class are customers.

– Ask questions.

Next Session: Clarifying Positions (Ch.4)

• Read Carefully – “Video Negotiating Context” p.30– Video Transcript Unit 4 p. 92

• Study pages 30-34• Do Questions:

– P.31 #8– P.32 #1 & 2

Questions?

• Stop by office• Email

Office Hours: Monday 1:10 – 3:20 PM

Office Hours: Thursday 3:00 – 5:00 PM



Clarifying Positions

Clarifying Your Position’s

• Last session:– Focus was Presenting your position and

Interactive Communication using Questions

• This session:– Focus is on Clarifying: making sure we really

understand each other– Skills to understand are:

• Good Listening• Effective Questioning

The Problem

• Most of us do not communicate very well…– We start with our own ideas– We wait for time to tell our ideas– We usually have already made up our minds,

disagree or ignore the other side.

• We should be actively listening.– An open mind to understand the other party better,– Develop practical and beneficial solutions,– Earn respect from the other team.


• Okus IT– Karen clarifies the details

of Okus’ offer– Andrew assists

• Levien– Francoise is worried about

extra project fee’s– Sean: Concerned about

level of support from Okus.

• Main Issue (aspect): – Support levels

• Level A: Full Support Packageincludes New Projects (ala Club Med All Inclusive Vacation)

• Level B: Cheaper, Monthly Invoice include regular support but no new project work; Projects cost extra

Clarifying Positions

Meeting Order?

Everyone following their own Ideas…

Karen is not happy; she can’t get her message across.

What does she need to do?

Culture: Individualist vs. Collectivist

• Group up!• Decide weather our group is more

Individualist or Collectivist

• 10 Minutes…

• Then, Group X will give feedback to the class.

Language Knowledge

General Questions– I’d be interested to know

more about…– Could you tell me

something about

– What exactly do you mean by…

– Could you be more specific

Confirming phrases• So you are saying

• If I understand you correctly…

• Is that clear?• Does that explain it?

Read “Between the Lines” ask a supportive or reflective question

• Page 34, number 5.

Next: Speaking Practice (p.35)

BUYER

Negotiate a Contract for the Catering and Entertainment for a Corporate Office Party

Explain the details (above) and then listen to the offer that Celebration Nights makes.

SELLER

You represent Celebration Nights, a party planner for corporations

You have been contacted by Buyer who wants to arrange (hold) an office party

You must listen to Buyer’s plans and then clarify all points, and then present what your company can offer

Practice using Active Listening and a variety of question types to show interest and get full details and understanding. Pairs 5 min. each.

Corporate Office Party (5 Minute Maximum)

Buyer (Corporate Planner)• Give details of Office

Party Idea -

• Listen to options

• Clarify your understanding

• Agreement.

Seller (Celebration Nights)• Introduce & Listen to

customers needs.

• Understand, Summarize &Clarify Ideas

• Provide alternatives & Pricing.

For next session: Negotiating Practice

• Pair Work, p. 36– Form pairs from your groups (2 people only)

• If 5 in a group, 2+2+2=one person does two roles)

– Each student choose one of the 4 situations

– Each student should present initially and the other student should listen, understand, clarify, and then summarize.

– 2.5 Minutes each, 5 minutes per pair – In class.– Change Roles. GRADED Exercise.

Feedback

• Was anything unclear? Fuzzy?• Office Hours: Monday 1:00-3:00PM

Thursday 3:00 – 5:00 PM– Stop by my office: M615B or– Email

Or, write it down and leave it at the desk…




Clarifying Positions, Part II

Agenda

1. Speaking Practice: Page 35

2. Negotiating Practice: Page 36

3. Midterm Review (time permitting)

Speaking Practice (p.35)

BUYER

Negotiate Contract for the Catering and Entertainment for an Office Party.

1) Explain the details (above), then listen to the offer that Celebration Nights makes

2) Check for understanding throughout

SELLER

You represent Celebration Nights, a party planner for corporations.

You have been contacted by Buyer who wants to arrange (hold) an office party.

1) You must listen to Buyer’s plans and then clarify all points, and then present what your company can offer

2) Confirm throughout your talk

Practice using Active Listening and a variety of question types to show interest and get full details and understanding. Pairs 2.5 min each.

***Break***

Negotiating Practice

• Two People (Pair Work, P. 36)– Each student should present initially and the other

student should (1) listen, (2) understand, (3) clarify, and then (4) summarize

– You are graded on the number of clarifications youmake

– 2.5 Minutes each, 5 minutes per pair – In class.

No exceptions.

Next Session: Midterm Review (Ch. 1-4)

• Review Carefully – Opening “Objectives” for each Chapter– Prepare questions on any terms you don’t understand

• Review: Negotiation Introduction: ”Setting the Agenda” Ch 2 & Page 71.– Fully understand why we have this structure (organization)

• Review: Establishing Positions– Understand what your position is and your opponents– Effective questions and active listening: How to learn your

opponents position.

• Review: Clarifying Positions – Understand how this helps define the specifics and also

push’s your opponent to reveal their important issues & Positions

Midterm Review• What is a position?

– Your opening and later changing offers (price, delivery, specifications, preferences, work hours, location, benefits, etc).

– Holdback: The difference between your opening position and your bottom line. Gives you room to negotiate. (p. 24, No. 1)

• Best way to get feedback on your position? – Say what you want, and also ask questions to get

verbal and non verbal signals from customer or opponent (p.27, No. 3)

• Effective Listening: increase your understanding of the other sides needs, wants or capabilities (features, benefits, budget)

Review (Continued)

1. Essay Question:– What is the purpose of an introduction?

• Reduce Stress (everyone knows what will happen and when)

• Maintain order, structure (avoid Karen’s problem)

• Provide a good setting to cooperate and find good solutions.

2. 10 Questions, Multiple Choice

Feedback

• Was anything unclear? Fuzzy?• Office Hours: Monday 1:00-3:00PM

Wednesday 3:00 – 5:00 PM– Stop by my office: M615B or– Email

Or, write it down and leave it at the desk…


Chapter 5: Managing Conflict

• After the mid-term Exam– Review Video Context– Review Video Transcripts Unit 5

• For the next class meeting:– Plan for Negotiating Practice No. 1– Plan for Speaking Practice No. 6



Managing Conflict*****Session 10****

Today’s Agenda: Managing Conflict

• This is the “Heart” of The Art of Negotiation– Cross-cultural negotiations fail due to

misunderstandings– Due to our Inability to constructively criticize( > less

personal)

• Goal: How to give and receive positive criticism– One Tactic: softer language use

• Language Focus: Modified Vocabulary

Conflict

Advantages

1. Can be a driving force to get the job done.

2. Shows us the differences that need to be resolved.

Disadvantages

1. Can be destructive to the relationship

2. Increases Stress

3. Criticism can be received personally.– Results in total breakdown.

Some people like it because it helps them force a result…

Other people do not like it, they avoid it.


• Okus IT– Andrew (sales manager)

thinks his position is under threat

– Karen ‘feels’ frustrated with Sean and Andrew

• Levien– Francoise wants a

positive atmosphere– Sean thinks negotiation

is getting stuck, wants to ‘shake’ things up.

• Main Issues: – What is support work and what is project work?

• Level A: Full Support and New Projects Included• Level B: Projects cost extra, open for abuse

Okus, Levin & Trust

- Version 1: EN Chapter 5 Version 1.avi

- issue: logging or support work

- inexperience remark causes offense

- Sean and Francois not working as a team

- Version 2: EN Chapter 5 Version 2.avi- Sean adapts, downtones his remarks but,- Confronts the issue, does not avoid sticky issues.

Breakdown in Trust arises because the definition of:

Project Work ($$$)

Support Work (included)

Is not clear, easy to understand.

How do they do it: Logging -

Name Reason Time Date Cost

Cherry German Lessons

10 11-25-08 $200000

Martin Emergency Training

5 12-1-08 $ 5000

Eva TelephoneSystem

8 12-6-08 $10000

How We Feel About Conflict

1. Even when I’m being confrontational, I’m never personally involved. It’s just tactics.

2. I hate it when people get aggressive, it’s just not necessary.

3. When people start criticizing, it’s hard not to take it personally.

4. Being aggressive is a perfectly valid way of getting what you want.

AGREE --------------------------------------DISAGREE

Culture and Tactics, P. 40

• Discuss the four individuals negotiating style

• Compare them to the people in your group

• Later, tell the class which of those negotiators you most identify with and why? (which one’s are more like your group).

Language Focus: “creating options”

• Perhaps/Maybe• Perhaps we should• Maybe you could• Perhaps you have

more staff than you can really afford

• It wont be too expensive

• Cutting here will not be too critical

• It wont take long if…

• I’m afraid your prices are too high

• I’m afraid we can’t offer any more discount

• If you could just offer us

• That sounds a bit too risky

• We need a little bit more time..

ModifiersUse of

Negatives

Use of I’m Afraid

A bit / just / a little

Modify the following remarks… p. 42

• We must cut the advertising budget• We could perhaps cut the advertising budget• You need to analyze your costs in more detail• You might check your costs in a bit more

detail• Look at page 32 of the document• May I suggest you take a look at page 32?

Intonation: Pitch up, cooperative Down = serious/negative

Modify the following…

• This is the worst food I’ve ever tasted• This is not the best food I’ve ever tasted• Don’t be so late for class• Could you be early for class?• Your quotation is much too expensive• Your quotation is a bit too expensive• Your quotation is not as we hoped

Intonation: Pitch up, cooperative, Down = serious/negative

Next Session: Speaking Practice #5 (p.43)

• Work in your groups (2 pairs each)

• Modify the following dialogue (conversation):

1. Write your changes on paper• Special attention to intonation (how you sound).

2. Then either:• Record your new dialogue on Mp3 or• Role-play in class

3. Bring to class next session, we will all listen or watch.

And, Conflict Negotiation : Speaking Practice #6 (p.43)

Student A• Manager: Production• Have large quantity of

extra components (parts) to make your product

• Why are you paying for storage you don’t need?

• Customer cancelled and you don’t need these extra parts

Student B• Manager: Purchasing• You order parts based on

production schedule• You always order extra

because there are problems with delivery and it takes a long time to arrive

“Down-tone” the language to be more positive

Next Session:

• We review your two exercises.

– Remember you must work outside of class– Write your answers down and either:

• Record your voice for #5 or• Role-play live in class

• See me if you have any questions.



Managing ConflictDowntoning Your Language

Today’s Agenda

• #5: Modify your dialogue so that it is less confrontational (e.g. Sean)– Group1-X

• #6: Production versus Purchasing– Both people think that the other is to

blame.– How to modify the language to be less

aggressive (confrontational)

Make the sentences less confrontational… #5

Your figures for last year look bad.

Mp3 recordings or

Roleplay

Your figures for last year don’t look so good.

Group X->1

There are a lot of electrical parts in the warehouse…#6

Production Manager (A)• Have large quantity of

extra components (parts) to make your product

• Why are you paying for storage you don’t need?

• Customer cancelled and you don’t need these extra parts

Purchasing Manager (B)• You order parts based on

production schedule• You always order extra

because there are problems with delivery and it takes a long time to arrive

“Downtone” the language to be more positive

Production Manager Purchasing Manager

Next Session:

• Chapter 6: Making and Responding to Proposals– Read pages: 46, 47, 49– Read carefully: “Video Negotiating Context”– Read carefully: Video Transcript Unit 6

– Do: Pair Work, #7, p. 47, 3 minute limit

Remember: Participation is 34%


• Visit my office anytime:– #M615B– email


Thursday 15:20 – 17:10



Business Negotiations

Making and Responding to Proposals

Proposals & Counterproposals• Last session:

– Focus was Down-toning Language, Constructive Criticism (managing conflict positively)

• This session:– Reduce the gap between

your position and the other side’s position

– How: by making proposals and counter proposals

– Skills to learn are:• Persuasive proposals• Asserting pressure

Problem: Levin and Okus are Stuck!

• Level A and Level B Support Offers– Levin does not like either

option• Which side should now

make a new proposal?– Normally the supplier

(seller) does this.– The buyer has the

advantage since they do not have to reveal anything about their position.

– However, the team that starts the next step sets the direction and range of possibilities.

Video Negotiating Context• Okus IT

– Karen makes a new proposal to break the deadlock.

– Andrew assists

• Levien– Francoise looking for a

solution to the ‘logging’ problem

– Sean: Not happy about ‘logging’. Wants Okus to offer a better solution.

• Current Issue (Deadlocked Negotiations): – Support levels

• Level A: Full Support Package (Complete) includes New Projects – Expensive but easy to Manage

• Level B: Cheaper, Monthly Invoice includes regular support but no new project work; Projects logged and billed extra …”An open bar tab”

Proposals

“Win-Loose Style of Sean”


Does Sean let Okus explain their proposal?


Focus on exchange between Francois and Karen – solution oriented

Make proposals and counter proposals

• We’re out for happy hour and snacks…• Who is going to pay the bill?

– A: Let me pay this time– B: No, that’s not fair, I’m sure it’s my turn– A: Why don’t we split it?

• Group up! 15 Minutes to practice the following

Then we summarize each groups negotiation.

Negotiation Proposal & Counter Proposals…(p.47)

• #3 It has become necessary to make budget cuts. You could let go two trainees with 6 months training…or you could economize in other ways. What do you cut?

• #4 Organize an important dinner for influential client. Client has strong religious beliefs…and can not eat/drink certain things. Decide on what kind of dinner to have.

• #1 The company is going to invest in a major, world class sports team. It is your responsibility to select which sport and which team to invest in.

• #2 One of you has to relocate to New York City…You don’t know the relocation package…but you have to make a decision now. Which one will go?

Follow the problem solving model of Karen & Francois, p. 93 transcript.

***Break***

• ..\..\VA - Cafe Brazillia - The Cream Of Latino Lounge (\102 - Panaphonic - Sambastique.mp3

Language Focus

• Positive– Good Idea– That sounds fine– I’ll go along with that

• Negative– I’m afraid that’s not

possible– I can’t agree to that– That is out of the

question

Making Proposals:I propose… I think we should…

I suggest… Why don’t we…

I advise you to… How/What about…

Roleplay

Neutrally: Don’t agree, Don’t Disagree

• That’s true, but….– How would that work?– How about Sally’s Idea???– What would that cost???

• I understand what you are saying….– My idea was to do it this way.

• We could do that. That’s possible, but…

These may re-direct the conversation back to your ideas.

Next Session:

• Chapter 7: Bargaining– Read pages: 52, 53, 54, 56

• Do p. 56 #4 & p. 57 # 5.

– Read carefully: “Video Negotiating Context”– Read carefully: Video Transcript Unit 7

• Role-play: Group Work (4) Page 50-51• (All Groups) 5 Minute Time Limit

• Full Cumulative Grading (Chapter’s 1-6)

Now, we start to Think in English…


• Visit my office anytime:– #M615B


Thursday 15:20 – 17:10




BARGAINING

Bargaining

• Last session:– Focus was Proposals & Counter Proposals to

reduce the gap between positions…

• This session:– Keep a positive communication style while

finalizing remaining differences.– How: Keep the Big Picture in Mind (Objective)– Skills to learn are:

• Conditional language: “If you do something…. then…”• Hypothetical language: “ We would be able to give a discount

if…”

Problem: Levin is Worried about People!

• Levin does not want to fire employees

• Cultural Styles are Different– Sean & Andrew, for example. Think Sharon & Thor

• An open mind helps to think positively, accepting new ideas in order to reach an agreement versus: No.

• Outsourcing: The contractor (Okus) might be the new employer of the staff that work at the customers offices(Levin)

Video Negotiating Context• Okus IT

– Andrew thinks he is giving up to much

– Karen originally planned to only hire two of Levin’s staff.

• Levien– Francoise wants to save

her staff’s jobs…– Sean: Worried about the

Works Council (Employee Union)

• Current Issue:– Staffing

• Okus offers to hire only two of Levin’s Staff: Manager & Engineer

• Remaining work projects would be done by Okus UK Staff

Bargaining

“NO!”

What is the focus under pressure:

What they can do..or

What they cannot do?

What should they do?

Version1: EN Chapter 7 Version 1.avi

Version2: EN Chapter 7 Version 2.avi

Example Bargaining Issues

• Discount: 2% in 10 Days, 0% 30days.

• Delivery Time: Now, Fast, Late, Specific Date

• Delivery Location: Your office, other place, customer pays

• Payment Method: Credit card, Wire, Cash

• Quality: defect rate, failure rate, customer complaints

Hypothetical Language: More positive, open to suggestions.

• We could offer you a 2 % discount…if you guaranteed the orders.

• We could re-paint the office… if you agreed to work this weekend.

• We could consider a salary increase…if you agreed to move to London.

ConditionalPressure: If…Then.

• (I’m afraid) we will have to cancel the contract…

• unless you reduce your fees.• We will have to choose another supplier…• if you can’t make us a better offer.• That looks like the end of the negotiation…• unless you can make a concession

Exercises

• P. 56, No 4– Use the ideas to make offers and attach conditions.

• Offer; Extend the contract Condition: 1% Discount• We could extend your contract as long as you offered

us a 1% discount.

• P. 57, No 5– Complete the dialogue using expressions from

Language Focus (p. 56).• We seem to have reached a stalemate. Were not going

to progress _________ you can make us a better offer.

Negotiation Practice: Bargaining

• Roleplay: Group Work (4) Page 50-51• (All Groups) 5 Minute Time Limit

City Council Community Group

For Final Exam: Negotiation Practice, p.59

• Training Company negotiating with a large company for sales and management training.

• Customer wants a discount for volume.

Two Suppliers & Two Customers

• 5 minute negotiation, prepare written outline only – give to professor prior to role-play

• Measurement: Use of Structure &# of times you correctly use Language Focus phrases from all chapters

Next Session: Ch. 8 Conclusion

• Read: Video Negotiating Context

• Language Focus

• Speaking iPractice: #6 p. 65

• DO: Prepare your Negotiation Outline for the Final Exam & Submit draft to instructor.

Now, we start to use short outlines


• Visit my office anytime:– Or– Email


Thursday 15:20 – 17:10




Negotiation Conclusion

Conclusion

• Last session:– Focus was Bargaining to add some pressure,

continue with positive solutions and offer small concessions (gifts)

• This session:– Conclusions take time…to re-confirm, clarify,

organize and document agreed upon items.– Think about the future (this is only the beginning)

Challenge: The Ending Sets the Relationship

• The Progress we made duringthe difficult negotiations are still at risk until the contract is signed.

• Summarizing is Critical to:1. Re-Confirm Agreed-upon Items

2. Clarify all open issues (& set at time to resolve)

3. Suggest a pleasant (positive, memorable) departure

• Note: Culture often sets negotiation style– Win-Win Objectives: everybody benefits– Win-Loose still exists due to competition for resources,

profits, politics, cultural preference, etc.


• Okus IT• Andrew Keen on getting

home• Karen feels there are more

issues to solve

• Levien• Francoise has a dinner

engagement, needs to go• Sean feels he has a great deal,

does not see any more critical decisions/issues to solve

• Final Issue:– Staffing has been decided, but…

• Their remain questions about exactly which staff will be hired and…

• What is the amount of the special “Contingency Fund” to be used for special projects

Conclusion• EN Chapter 8 Version 1.avi

– #1 Focus on Francois, what does she do? Worry about?

– #2 Focus on Karen and Andrew, are they working as a team?

• EN Chapter 8 Version 2.avi– #1 Focus on Francois: Make a list of

the ways she ends differently.

– #2 Video stop’s review.

• Summarizes » So we have agreed an initial 1 yr contract

• Agrees on Action: We will meet again here to interview

• Apologizes for having to leave quickly

“Leaving without a good understanding….”

How will this affect the long term relationship?

What should they do?

Language focus exercises.

Complete the concluding phrases…(p. 64)

– Let me just_____ the main points.– I think that just about ____ it.– It ___ say how much we appreciate

your contribution.– Does that accurately ____ what

we agreed during the meeting?– Could you _____me a written

proposal before the next meeting?– I ____we meet later in the week.– As ____ payment ___, there are still

some _____ issues to resolve.

Language focus exercises.

Discuss the following tactics Which do you agree with and why? What other advice would you give…(p. 62)

– Never negotiate a single issue.– Always bargain from a position of

strength.– Don’t let your negotiation partners

feel too comfortable.– Identify and reinforce the weak

points in their argument.– Never show your real feelings.– Keep your strongest cards up your

sleeves.

Final Exam Preview:5 Minute Final Negotiation Simulation

• Goal: Successful Agreement: WIN-WIN & “Mutually Beneficial”

• Structure– Introduction– Establishing Positions– Clarifying– Proposals & Counter Proposals– Bargaining– Final Agreement & Conclusion

• Class & Professor will Evaluate (50%/50%)– Use of Structure, Language Focus, Effective Listening &

Feedback…creative solutions

Chapter 7 – Page 59: Training Services Agreement

Suppliers:• 100 Days / Year Potential• Daily Costs $600 / $500• Discounts not Common• Willing to offer 10% for

100 days and 5% for 80 days

Customers: • Want Volume Discount for

100 days• Cant guarantee the exact

number of days• Think rates should be cut

by $100• Can pay early for a good

discount (15 days)

Resources: Everything is in Your Text

Language Focus• Vocabulary• Examples

• Structure & Outline is Key

Video Transcripts• Specific Phrases• Culturally Sensitive

• Understand context & Meaning

Ending…At the end of a meeting we often

make a remark about the meeting…(p. 64)

“That was a very positive start. I look forward to our next meeting”

This meeting was extremely fruitful…

Today’s negotiation was very useful…

So to end our class….

– Today’s class________ (stimulant).– Todays class ________ (help)

Feedback


• Visit my office anytime:– #M615B– email


Thursday 15:20 – 17:10

Questions?



Business Negotiations(FinalExam)

Negotiation Simulation

Final Negotiation Simulation

• Goal: Successful Agreement “Mutually Beneficial”

• Outline– Introduction– Establishing Positions– Clarifying – Understanding Needs– Proposals & Counter Proposals– Bargaining– Final Agreement & Conclusion

• Class & Professor will Evaluate (50%/50%)

– Use of Structure– Language Focus– Effective Listening &

Feedback

– =>creativesolutions

• 5 Minute Maximum• Group X-> N

1)Class Score Sheet (1 Min)

2) Negotiation (5 Mins)

3) Complete Sheet (3 Mins)

4) Turn-In to Prof. (1 Min)

Next Session: Final Exam

• Goal: Successful Agreement “Mutually Beneficial”

• Outline– Introduction– Establishing Positions– Clarifying– Proposals & Counter Proposals– Bargaining– Final Agreement & Conclusion

• Class & Professor will Evaluate (50%/50%)

– Use of Structure, Language Focus, Effective Listening & Feedback…creative solutions

Individual Grade’s

Everyone must Speak

Live Negotiation – No Reading a script, Give your own words/language

Graded based on Score Sheet # Times correct use of language focus & structure

Video Taped.

Negotiation Context - Training Services Contract

Suppliers:• 100 Days / Year Potential• Daily Costs $600

management / $500 sales• Discounts not Common• Willing to offer 10% for

100 days and 5% for 80 days

Customers: • Want Volume Discount for

100 days• Cant guarantee the exact

number of days• Think rates should be cut

by $100• Can pay early for a good

discount (15 days instead of 30 or 60 days)

Break

Congratulations…you are 50% there!

A. Next Semester:

1. Effective Presentations by Jeremy Comfort

2. More focus on:

A. Your Language Use – (Language Focus)

B. Your Volume and Image on Stage

C. Persuasion Skills

D. Organization & PowerPoint

B. Reading Assignment:

1. Chapter 1 & 2 – Video Transcript & Negotiation

2. Groups 1 & 2 -- do First Question of Chapter & Present

C. Writing Assignment:– Make one sentence using the Language focus phrases from each

Chapter in the Effective Presentations textbook – Turn in to Prof.

Your comments please…

Please Return Evaluations….

..\..\The Office - Salary Negotiation Vol 2.flv

They help me learn to make better courses…

Final Thought

What one thing can you do…

to learn better next semester?

Write it down & look at it again on next semester.

Lecture Power Points: www.slideshare.net/laoshi_steve

http://www.slideshare.net/laoshi_steve


That’s All Folks!

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Effective Negotiations [BE II Course Lecture]

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