Foundations of Entrepreneurial Leadership

1. Foundations of Entrepreneurial Leadership Negotiation

2. Negotiation It’s not an event It’s a lifestyle

3. Definitions The process whereby interested parties resolve disputes, agree upon courses of action, bargain for individual or collective advantage, and/or attempt to craft outcomes which serve their mutual interests. It is usually regarded as a form of alternative dispute resolution.

4. Definitions A collaborative process aimed at finding the best solutions for everyone involved

5. What we know • Negotiation is a necessary part of life • Ubiquitous • Complex personal lives demand multi-level negotiation • Evolving organizational structures and cultures make more elements of work life negotiable • Best strategy: Understand the game

6. Gender Issues • Men ask for what they want and initiate negotiations 2-3X more often than women • Plan more, engage in more negotiations • Studies: women & men of all ages. • Differences occurred in women in 20s and 30s. • Not a boomer phenomenon • Women often believe that their “good work” will automatically get noticed and rewarded.

7. Gender Issues • Women less likely to negotiate on own behalf • Study #1: • men 8X more likely to negotiate starting salary • $5000 starting bonus translates into work life difference of $568,834 • Study #2: • Students offered $3 -$10 to play boggle • Men asked for more money 9X more than women • All thought they deserved more, women didn’t ask • Women known to be VERY effective negotiators on behalf of others Linda Babcock and Sara Laschever, Women Don’t Ask: Negotiation and the Gender Divide. Princeton University Press,2003.

8. Gender Issues • Not negotiating results in lower/lesser position (salary, resources, etc.) • This in turn is perceived by others as a measure of competence or value • “Asking propensity” of men results in men having more opportunities and accumulating more resources

9. Most important steps • Deciding to negotiate at all • Developing skills for success • Gaining confidence through practice

10. References • Linda Babcock and Sara Laschever, Women Don’t Ask: Negotiation and the Gender Divide. Princeton University Press, 2003. • William Ury, Roger Fisher and Bruce Patton, Getting to Yes: Negotiating Agreement Without Giving in, Revised 2nd edition, Penguin, 1991. • William Ury, Getting Past No: Negotiating Your Way from Confrontation to Cooperation, revised second edition, Bantam, 1993. • Gerard I. Nierenberg, The Art of Negotiating: psychological Strategies for Gaining Advantageous Bargains, Barnes and Noble, 1995.

11. Exercise Day 1 1. Pick a vendor, person at work, school, etc. with whom you interact daily. • Select an “understood” / commonplace transaction or interaction (e.g., Paying for a product, copies being made, roommate doing dishes). • Envision an element of that interaction that you would like to CHANGE which involves the other party. Alternatively, imagine a request you could make which would add or enhance this everyday interaction/transaction. • Action: Do nothing. Just observe and write down the interaction and desired outcome. Day 2 2. Ask. • Make a request of the vendor, person at work, school, etc. with whom you interact daily. • Action: Note a. Your approach and b. The response. Try to be as specific as possible.