WAR STORIES & OTHER ANECDOTES
ABOUT INTERACTIONS BETWEEN PERSONS
NEGOTIATING AS WE KNEW IT
BEFORE IT GAVE WAY TO LAW SUITS
Joe Borgatti / Notes for class lecture
The bibliography on negotiating grows each month. Titles like: Negotiate like the Pros, Negotiating your Compensation Package, Advanced Negotiating, Conflict Resolution: Getting to Yes, Beat the Car Salesman, Secrets of Power Negotiating, How to Negotiate Anything with Anyone Anywhere in the world. On the Web found 73,542 documents on the subject.
Negotiation possibly more associated with managers than leaders. Managers are seen as seeking solutions. The leaders are characterized as people creating new approaches and imagining new areas to explore, projecting ideas.
Where they come together --leadership and management-- is when you want to effect change in an organization like Reengineering. It has to be negotiated at several levels. You have to deal with resistance to gain commitment, and this means negotiating the matter.
|WHAT IS NEGOTIATING |
A scientific process or a social relation
Its known as a process because there are sequential steps
|Conferring, explaining requirements, hearing others' needs,
seeking common ground. A process of discovery and
Not (yet) done by modem - that's chess - a series of moves to win advantage, until the other cannot go on.
The law suit is its opposite
|In "The Art of The Deal", Donald Trump calls it the art of persuasion (this
may be more true of real estate deals than of others), of overcoming
Mediation -use of an intermediary agent between conflicting parties, is a form to an extent & occasionally serves a useful purpose -
Arbitration a form of it: -comes between negotiation and law suits employee rights at Polaroid are settled by an outside arbitrator arbitration (JRS and the royalties case with INCO - -part of regular remuneration or outside it?
|WHY DO WE NEGOTIATE? |
What's there to negotiate?
What do people assume when they proceed to negotiate? Is there a hidden agenda?
|Because a deal as presented, as it stands, doesn't fit one of
the parties' needs or requirements -to find out what the
other one wants. |
Need may be psychological or substantive
Sometimes its the way things are done - as in buying a house or getting an executive job
|Wall St lawyer: its about improving your position |
Another lawyer: Negotiate a settlement. Thus never got to a lawsuit
My question to a veteran financial executive. Why do you negotiate? To get what I want. We will see what he intends by this.
RAM with Innovation luggage in NY
Baseball players and the owners
|CAN ANYTHING BE NEGOTIATED?||Conflict; resolving controversy |
corporations negotiate to gain permits, access to something
Mining rights, tax regime,
Tanzania - to negotiate their acceptance of change
(Reengineering) took them to an animal preserve
Permission to set up shop.
|The recent agreement between Disney and New York City to invest
significantly to revitalize Times Square |
Ex of INTEL - months negotiations under simplified environmental permits in exchange for a company doing better than the law requires
or a proposed sale of pollution credits, or between a chemical plant and its neighbors
Negotiation between a company and a city or state to keep that company
there. Or to being it in; ditto re ball clubs
Negotiations with Somoza to open a branch
Negotiating with Dictator Stroessner
|HOW DOES IT WORK? |
WORKS BEST WITH WIN WIN
|Depends on parties and circumstances -can be simple or
Essentially - parties meet at a specific time in a determined
place and talk it out. Can be formal -set a place, time,
agenda, stipulate who will attend. Works best wen the
parties are comfortable with the arrangements
I win you lose
Zero sum? eventually reach a compromise
|Simple: IIC management reaction to report |
Exmibal ex of complex and formal -3 yrs & many items
My negotiations with Kristjanson and Sopko in a car
Sam Goldwyn, head of a Hollywood studio and another studio chief wanted a certain big star at the same time. In the end, someone suggested that the dispute be settled by arbitration. Goldwyn agreed reluctantly: "Okay, as long as its understood that I get him".
|ANY RULES OR PRINCIPLES? |
Prins. No winners or losers
|Principles confused with rules of conduct |
You have to prepare - be clear about what is to be
Define the issues - get the facts.
Understand other's position
Know your own needs (what you need to get out of it) -
psychological or real? What might you be willing to give
up to get out of it what you need? - can't expect to get
exactly what you want. Develop a strategy that takes both
Execute with flexibility and patience
Give to get - as in El Sal for bank
How to prepare for it? They say learn people skills; learn negotiating tactics, be one up on the other
Probably best preparation is to further your understanding of human behavior and follow the basic principals
On-the-job training vs myriad of courses and books on how to do it
Donald Trump would agree on preparation but would add that you have to keep pushing and pushing and pushing until you get what you want - sometimes settling for less. The key he says, is you have to be born with it.
57 varieties an ex of poor preparation. Former owner held rights to brand
This carried the day in Exmibal
Negots with miners in Nicaragua -20% converted into 100% of 1 mine in jnt venture
El Sal opening bank- gave them savings accts, got opening and rediscounts
Clearest exs of good negotiations are the labor management negotiations in auto industry. Exmibal took 3 yrs.
The Contract with America broke the rule. The proper course would have been to negotiate a program that would have benefitted America and involved compromise by both parties. Instead they polarized, passed 1/3 of the program and wound up shutting down the government.
|ARE THERE SPECIAL
A lot of tricks. Books full of them. Quote
from internet pull down
Who should do the negotiating?
|Depends on with whom negotiating |
-the inscrutable east
What about style & approach? Ex. Competitive vs collaborative; combative vs passive; adversary tactics
Team approach -good cop bad cop
Info sharing - provide negotiators with a shared body of knowledge
Street smarts - do's and don'ts
Someone who has a real stake in the outcome
|How DDR negotiated with the Japanese |
give a reason why its to their advantage
understand your point but I can't do it this way - how it saved the day in
purchasing a corporate jet
Baseball owners using a surrogate to negotiate, instead of one of their own - an impersonal mode that encourages equally impersonal approach on the other side. The players too.
hope for an intelligent adversary - problem with the Nic miners
or at least an honest one --Neville Chamberlain, Britain's Prime Minister, went to Munich to see Hitler in 1938, came back waving an agreement he had negotiated with he Nazi leader and said, "I believe it is peace for our time". Less than a year later, Britain and Germany were at war after Hitler disregarded the promises of nonaggression he had agreed to.
ARBITRATE to judge or decide as in the manner of an arbitrator
ARBITRATOR: a person chosen to settle the issue between parties engaged in a dispute or controversy
ARBITRATION: the process by which the parties to a dispute submit their differences to the judgement of an impartial person. A form of negotiation
BARGAIN: to bargain is to negotiate the terms of a sale or agreement; fitsd a psychological need in some cultures or among some people
CONSENSUS: Consensus is simply a process of discerning the sense of the group. Reaching consensus is not necessarily
reaching unanimity or 100% agreement on everything by everybody. Consensus isn't uniformity. Rather, consensus is the
mutual feeling that all concerns have been addressed. What is required is that everyone has been heard and understood.
Time lost in collective decision making is regained at the implementation stage.
The consensus process is fostered by valuing and encouraging individual differences. Adhering to this rule works to reduce or avoid judgements, competition and arguments. A group comes to consensus on the best decisions after its members have understood as many different perspectives as time permits. In this way, the group works cooperatively to make the best decision in support of the matter at issue.
MEDIATE: to resolve or settle (differences) by acting as an intermediary agent between two or more conflicting parties.
MEDIATION: a form of negotiation
NEGOTIATE: to confer with another in order to reach agreement