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Negotiations hurra h's creativity

Oct 19, 2014

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Course Assignment, HBR article Analysis
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Page 1: Negotiations  hurra h's creativity
Page 2: Negotiations  hurra h's creativity

12 Angry Men

• Character Introduction• No backstage Preparation

Page 3: Negotiations  hurra h's creativity

Negotiations Framework

Page 4: Negotiations  hurra h's creativity

Diagnosing the Bargaining Situation

• Interested Parties: 12 jury people

• Common Interest : Reaching a consensus decision

Page 5: Negotiations  hurra h's creativity

Diagnosing the Bargaining Situation

Position1 VS 11 (initial)

"You couldn't change my mind if you talked for a hundred years."

Reservation point:

Case should be solvedasap no matter what the decision is

Target point:

Reaching a consensusdecision that the boy is guilty asap

Page 6: Negotiations  hurra h's creativity

Zone Of Potential Agreement (ZOPA)

Solving the case by reaching on

consensus that the boy is “GUILTY”

Solving the case by reaching on

consensus that the boy is “NOT

GUILTY”

ZOPA

Reaching a consensus decision

ZOPA

Contentious Negotiation

Page 7: Negotiations  hurra h's creativity

Distributive NegotiationSlicing up the pie

• How much do I get?

• Know your BATNA

• Set high aspirations

• Making the first offer

• Avoid stating ranges

• Using a rationale to support your position

Page 8: Negotiations  hurra h's creativity

A Multi-Step Program to Negotiations – a checklist

Steps Followed1. Determining the bargaining range No2. Assembling the issues No3. The scorecard & supporting arguments No4. Diagnosing the situation Yes5. The 1st round of tactical questions Yes6. Claiming and creating value Partial

Page 9: Negotiations  hurra h's creativity

A Multi-Step Program to Negotiations – a checklist

Steps Followed7. Using leverage Yes8. A matter of style Yes9. Strategic use of information No10. Endgames Yes11. Clever tricks Yes

Page 10: Negotiations  hurra h's creativity

Step 4: Diagnosing the situationThe Situation Matrix

Transactional Negotiation Balanced

Negotiation

Latent ConflictRelational Negotiation

High

Low

Stakes

Importance of RelationshipLow High

Page 11: Negotiations  hurra h's creativity

Step 5: Tactical Questions

Page 12: Negotiations  hurra h's creativity

Step 6: Claiming and Creating value

• Claiming value– I win, you lose

• No value creation• No rule for fairness

Page 13: Negotiations  hurra h's creativity

To go for the baseball game asap

Page 14: Negotiations  hurra h's creativity

Step 7: Diagnosing and using leverage

• Primary leverage– BATNA

• Secondary leverage– Negative (ULTIMATUM)

• Time – an important factor

Page 15: Negotiations  hurra h's creativity

Leverage Diagnostic Matrix

Make Confident Demands or Threats Be Generous

Bluff Appeal to Sympathy

Strong

Weak

Relative leverage

FlexibilityInflexible Flexible

Page 16: Negotiations  hurra h's creativity

Step 8: A matter of style

Negotiating Style

Impo

rtan

ce o

f R

elat

ions

hip

Importance of Outcome

ACCOMMODATEI Lose / You Win

COLLABORATEI Win / You Win

COLLABORATEWe both loseWe both winCOLLABORATE

I Lose / You LoseCompeteI win / You Lose

Page 17: Negotiations  hurra h's creativity

Negotiating Style

Page 18: Negotiations  hurra h's creativity

The Competing Style

My way or the highway!

• High BATNA• Time constraints – other

people taking advantage

Ass

ume

Una

ssum

e

Uncooperative cooperative

• Assertiveness• Closing: Accommodation

– If you know you are going to lose, earn some grace

Page 19: Negotiations  hurra h's creativity

Step 10: Endgames

• Scarcity Effects– Time– Walkout

• Decrease in leverage• Accommodation

Page 20: Negotiations  hurra h's creativity

• Reciprocity ploys

Step 11: Clever Tricks

• Low-balling (Underestimating the importance of a justified decision)

Page 21: Negotiations  hurra h's creativity