Thursday 29 September 5.30pm 7.30pm AIM Leadership Centre No - - PowerPoint PPT Presentation

Professional Development Sundowner exclusively for Associate Fellows and Fellows of AIM

Thursday 29 September

5.30pm – 7.30pm AIM Leadership Centre

No negotiation strategy ever survives an encounter with the ‘enemy’!

Practical ways to manage complex negotiations effectively.

Professor Ray Fells UWA Business School

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

Ivanka Trump Donald Trump 1946 -

Win win negotiation Finding a fair compromise The aim of win-win negotiation is to find a solution that is acceptable to both parties, and leaves both parties feeling that they've won, in some way, after the event.

Win win negotiation Finding a fair compromise The aim of win-win negotiation is to find a solution that is acceptable to both parties, and leaves both parties feeling that they've won, in some way, after the event. Good communication leads to value creation and so both parties’ interests are met

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

Perception

• f other

Satisfaction Profit Goal Expected cooperation Cooperation Relationship

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

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

• ther-directed

STRATEGY WORKSHEET

A Tool for Effective Negotiating Assessment of

• ther party’s

situation Assessment

• f own

situation

Negotiation: STRATEGY FACTOR

Importance of issue high/low high/low low

high high(ish) high

to self Concern for other’s high/low high/low

high low high high

• utcome

Expectation of other’s concede concede

contend concede compromise compromise

strategy contend contend compromise compromise Time pressure high/low high/low high

low high low(ish)

Quality of alternative good/poor good/poor poor

good poor good

‘ for both for both CONCEDE CONTEND CLEAR-CUT CREATIVE COMPROMISE COMPROMISE

Managing the issue

A strategic approach provides you with

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

To know what you plan to do and why

Think like the other party

To approach the negotiation from their perspective

Think after you have acted

To know what you plan to do and why

Negotiation is ‘messy’ Negotiation is two-sided Learn for the future

Managing the negotiation

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?

High but ‘yesable’ goals Considered flexibility A constructive script Oil the negotiation with lubricants Maintain the strategic intent

Thank you Thank you and good negotiating and good negotiating