1. Negotiation Class 7

2. Questions about Negotiation • Do all negotiations have a winner and a loser? • Is the best strategy to be tough or soft? • Are the best negotiators born that way? • Do the best negotiators take risks? • Do the best negotiators rely on intuition? • Can you learn from your negotiation experiences?

3. Negotiation exercise • Find a partner • Read your instructions and plan your strategy • Wait for my go-ahead to begin • Write down 1 copy of your agreement • Debrief each other

4. Debrief • What was your “target point”? • What were you aiming to get? • How did you set this target? • What was your “reservation point”? • What was the worst arrangement that you would be willing to accept? • How did you decide on this? • Goal: • Divide up the “zone of possible agreements”

5. Debrief • What was your “BATNA”? • Best Alternative To a Negotiated Agreement? • Strategy: • what can you do to improve this?? • Can you find out the other party’s BATNA? • Should you reveal your BATNA to the other party?

6. Debrief • Who made the first offer? Why? • How did this affect the rest of your negotiations? • How specific was the first offer? Did you suggest a range of possibilities? • What were the counter-offers? Why? • Did you re-calibrate your target or reservation point? • What concessions did you make?

7. Negotiation exercise (II) • Find a NEW partner (groups of 2) • Read your instructions and plan your strategy • Wait for my go-ahead to begin • Write down 1 copy of your agreement • Debrief each other

8. Strategies that didn’t work • Did you try anything that backfired? What happened? • Did your partner try any strategies that failed? How did you respond?

9. Strategies that may be problematic: • Determination to make the deal “win-win” • Determination to compromise • Equal concessions • Focus on a long-term relationship • Benevolent / cooperative behavior • Taking your time / stalling • Lying

10. Usually useful strategies • Perspective-taking • Trying to figure out what the other party wants or needs • Asking questions • What are the other party’s priorities? • Answering questions (within reason)

11. Usually useful strategies • Unbundle the issues • Offer “package deals” • Make multiple offers simultaneously • Get away from sequential bargaining • Make the different offers equally desirable (to you) • Make all the offers at the same time • Ask for concessions

12. Negotiation exercise (III) • Find three other people that you have not negotiated with yet (form groups of 4) • Read your instructions and plan your strategy • Wait for my go-ahead to begin • Write down 1 copy of your agreement • Debrief each other

13. Multi-party negotiations • What made this negotiation more challenging than the last two exercises? • Was there anything that worked to your advantage? • Were there any pitfalls? How did you handle them?

14. Multi-party negotiations • Set your own priorities and goals • Do not let another party decide or argue on your behalf • Try to agree on a process in advance • Ok to rotate roles if necessary (e.g., time keeper, note taker) • Stay “at the table” • Strive for equal participation from all groups

15. Multi-party negotiations • Try to agree on something early on • What are the issues? What is the process? • Try not to give in to the “equal shares” bias • Try not to be too agreeable / disagreeable • Avoid “sequential bargaining” • Don’t vote on one issue at a time • Argue from principle / fairness • Don’t reveal your BATNA to your “ally”

16. TED Talks • What were the primary arguments in the first talk? What about the second one? • What did you agree with? • What did you disagree with? • What else should have been included? • What is your overall assessment or evaluation of the talks?