Professional Development Sundowner exclusively for Associate Fellows and Fellows of AIM No negotiation strategy ever survives an encounter with the ‘enemy’! Practical ways to manage complex negotiations effectively. Professor Ray Fells UWA Business School Thursday 29 September 5.30pm – 7.30pm AIM Leadership Centre
No strategy ever survives an encounter with the enemy Some ways to manage complex negotiations effectively Ray Fells Field Marshall Helmuth von Miltke 1800-1891
Sun Tzu ? 500 BC Field Marshall Helmuth von Miltke 1800-1891
Donald Trump 1946 - Sun Tzu ? 500 BC Field Marshall Helmuth von Miltke 1800-1891
The Trump Card -Tips for negotiating Donald Trump Ivanka Trump 1946 -
The aim of win-win negotiation is to find a solution that is acceptable to Win win negotiation both parties, and leaves both Finding a fair parties feeling that they've compromise won, in some way, after the event.
Good communication leads to value creation and so both parties’ interests are met The aim of win-win negotiation is to find a solution that is acceptable to Win win negotiation both parties, and leaves both Finding a fair parties feeling that they've compromise won, in some way, after the event.
Negotiation fundamentals Negotiation is MESSY A mix of competitiveness and cooperation Negotiation is TWO-SIDED The other party has choices too! Negotiation is about the PROCESS as well as about the ISSUE
Strategic negotiating To think before you act To know what you plan to do and why To think like the other party To approach the negotiation from their perspective To think after you have acted To know what you plan to do and why
Three questions to ask The ISSUE What is this negotiation really about? The PROCESS What script are we all working to? ACTION What do I now need to do?
The Path Model of negotiation success Halpert, J.A., Stuhulmacher, A.F., Crenshaw, J.L., Litcher, C.D and Bortel, R.(2010) ‘Paths to negotiation success’ Negotiation and Conflict Management Research 3(2) 91-116 Goal Profit Expected Relationship Cooperation Satisfaction cooperation Perception of other
Managing the issue • The goal should be challenging • A ‘yesable’ proposition • Do your preparation from the perspective of the other party • Work out your answers to their points A strategic approach is other-directed
STRATEGY WORKSHEET Managing the issue A Tool for Effective Negotiating Negotiation: Assessment of Assessment other party’s of own situation situation STRATEGY FACTOR Importance of issue high/low high/low low high high high(ish) to self Concern for other’s high/low high/low high high low high outcome Expectation of other’s concede concede concede compromise compromise contend strategy contend contend compromise compromise Time pressure high/low high/low high high low(ish) low Quality of alternative good/poor good/poor poor poor good good ‘ for both for both A strategic approach CONCEDE CONTEND CLEAR-CUT CREATIVE provides you with COMPROMISE COMPROMISE considered flexibility
Managing the process • The cooperation should be constructive (rather than concession making • Build an issues list, but slowly • Exchange information, again slowly • Proposals should be other-directed • Managing the dialogue: oil the interaction with lubricants such as summarising and reflecting (reasons first, rather than disagreement)
Managing the process
Managing the process • The cooperation should be constructive (rather than concession making) • Build an issues list, but slowly • Exchange information, again slowly • Proposals should be other-directed • Managing the dialogue: oil the interaction with lubricants such as summarising and reflecting (reasons first) • Maintain the strategic intent – Where does this negotiation fit? – Is the obstacle the issue or the process? – Provide a mediator perspective
Conclusion: Strategic negotiating Think before you act Negotiation is To know what you plan to do and why ‘messy ’ Think like the other party Negotiation is To approach the negotiation from their two-sided perspective Think after you have acted To know what you plan to do and why Learn for the future
Managing the negotiation High but ‘yesable’ goals The ISSUE What is this negotiation really about? Considered flexibility A constructive script The PROCESS What script are we all working to? Oil the negotiation with lubricants ACTION What do I now need to do? Maintain the strategic intent
Thank you Thank you and good negotiating and good negotiating
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