LECTURE ELEVEN

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LECTURE ELEVEN

• Managerial Negotiations

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OTHER THAN WIN-WIN OPTIONS

• Win-Lose
• Lose-Lose
• Strategic Analysis

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UNDERSTAND CULTURE AND CLIMATELAYER 1

• Assertive/Passive
• Quick Solutions/Careful
• Personal Relation-ships/Superficial
• Policy Control-led/Flexible

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PERSONAL NEGOTIATION STYLELAYER 2

• LOOK AND ACT CONFIDENT
• Stay formal
• Project energy
• Well organized
• Clear vision of where negotiations are headed
• Awareness of nonverbal
• Accept that tension is a natural part of the
  process

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PURPOSE

• To maximize your advantageknow what you want or
  know what is reasonable to expect.
• MAXIMUM SUPPORTABLE OUTCOME (MSO)the absolute
  most one can ask for in the opening position
  within reason.
• One trip to the well.
• LEAST ACCEPTABLE OUTCOMEthe result least
  acceptable one will accept from the negotiation.
• Know when to walk away.

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ADVERSARYS STYLE

• FAST-FLASHY
• Razzel-dazzle (used car salesman)
• DICTATORS
• Beat you into submission using subtle rational
  arguments
• PARENTS
• Comfort, listen, soothe and convince deal is for
  your own good

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LAYER 3TIME

• Do not reveal the true deadline.
• Be patient.
• Use the clock to help close a deal.

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ENVIRONMENT

• SITE SELECTION
• Home Office
• Adversarys Office
• ROOM ARRANGEMENT
• Eye Contact
• Comfort

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THE MESSAGE

• Opening Messages-In the USA start general and
  move quickly to issues.
• Concessionssmall Small, slow and only in return
  for other concessions.

• Questions
• Arouse attention.
• Obtain information.
• Clarify.
• Stimulate thinking.
• Bring about a concession or close.
• Only ask question to accomplish your goal.
• To avoid, you can answer part, ask for
  clarification, answer a different question,
  answer a negative with a positive.

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Communication Media

• Electronic and written media often play key role
  today.
• Letter of intentfollows negotiation and confirms
  the result
• Establishes goodwill
• Presents position

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STRATEGIC APPROACHES

• SURPRISE
• New goal or concession.
• BLUFFpoker
• Create illusions without lying. All hat and no
  cattle.
• DIVERSIONmake concessions on non-issues.
• Cloud real need.
• STACKING
• Borrowed authority.

• FAIT ACCOMPLI
• Act as if already complete.
• TAKE IT OR LEAVE IT
• Last and final.
• SCREEN
• I dont have authority.
• EMOTION
• False anger, sadness, rejection.