NYU Stern School of BusinessConflict & Negotiation (B65.2358)

Professor Seth Freeman(718) 575-8597

seth.freeman@gte.netTuesdays and Thursdays 5:30-7:20 Section .70

There are two purposes to this course:

1. to develop your ability to negotiate in a purposeful, principled and effective way; and 2. to teach you how to build consensus and broker wise agreements with others.

You negotiate every day in your work and in your personal affairs. To help you refine and organize your understanding of the process, you will find it important to read the assignments in Getting To Yes ("YES") and Getting Past No ("NO"), modern classics in the field which emphasize a problem-solving approach to negotiations. We'll supplement these books with other readings from time to time.

Negotiation is a social skill, and like all social skills you have to practice it if you want to get better at it. To give you the chance to practice, you'll do a number of simulated negotiations in class, (and one which I will negotiate with you out of class via e-mail.) These simulations are crucial to your learning in the course, so you'll want to be sure to be here each class. Since even the best simulations can only approximate the experience of real life negotiating, though, I'll also ask you to submit several brief essays about the real-life negotiating experiences that you or others have. I'll ask you to submit most of your essays about them near the end of the course, though you want to be sure to do them throughout the semester. A more detailed discussion of these essays appears later in the syllabus.

As we advance in the course, our focus will shift from simple one-on-one negotiations to more complex ones involving many parties, agents, coalitions, and organizations. We will also explore the problem of dealing with a large number of complicated business issues, and the problem of spotting time bombs that can ruin a deal later on. A central purpose of much of our later work in the course will be to develop advanced skills that leaders use to build consensus and resolve internal disputes.

To further develop your skill as a negotiator and consensus builder, I will compliment

class lectures and simulations with case studies, exercises, games, videos, and demonstrations. Since there is really no way to make up these experiences and since your participation will help your classmates learn, I will expect you to attend each class. Welcome to the course. I hope it will give you a stronger ability to handle conflict and business dealings wisely.

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Grading

Here is how I'll figure out your grade for the course:

5% Class participation 15% Hotel Booking Negotiation Assignment 30% Midterm examination30% Negotiation Journal20% Final examination

Class Participation Generally. A key part of Class Participation is being here. Therefore, please sign the

attendance sheet for each class. Usually, the sheet will be waiting for you by the door as you enter. If you arrive late and miss being part of a simulation, please sign in anyway but note that you missed the simulation. If the attendance sheet asks, be sure to note if you are ready to discuss a given assignment by writing "YES" or "NO" next to your signature.

Please do not feel you must talk a lot in class to do well in the course. While I do want you to be actively involved in the course, I know that some students are more verbal than others are. So you should be fully prepared to discuss assigned readings, be active in our in-class exercises, and thoughtful in your contributions. To encourage balanced discussion and excellent preparation for class, I will call on several students in a given class.

I particularly encourage you to ask 'dumb' questions. (As you'll see, one of the central

points of the course is that 'dumb' questions have remarkable value in negotiations.) Usually they are the best contributions of all.

What If You Miss Class(es)? There will be no penalty for one absence. However, since the course depends on class participation, if you miss a second class there will be a three point deduction from the class participation portion of your final grade. If you miss a third, there will be an additional five point deduction. If you expect to miss more than three classes, please talk to me about it as soon as possible after class. While I would love to have you with us, we may conclude that you should not take the course this semester if you expect to miss several sessions. Except for religious observances, please do not tell me if you miss a class or expect to miss one.

What if You Observe a Religious Holiday? Don't worry; there's no penalty for religious observances. Just note your observance on the attendance sheet when you return, or write a note to me.

What If You Miss the First Class of the Semester? Don't worry: I don't count it as an absence.

Real Life Negotiation Assignment Once during the semester I will assign you an out-of-class Hotel Booking Exercise to

help you try out certain negotiation skills. I will ask you to submit a brief memo about it and to be prepared to discuss it in class.

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The MidtermMy goal for the midterm exam is to make sure you understand the big ideas of the

course and how to use specific tools. To do that, I may give you a fact pattern about a page long and then ask you to use some of the tools and concepts we've covered to show me how you would handle the situation presented there. I may also ask you a short answer question or two about concepts we've worked on in the course. The advantage of this sort of midterm is that it lets me get out of your way; also, it allows me to give you partial credit when you've earned it. The midterm will take about 70 minutes. There will be no further class that day.

The Final The final exam will be held on Thursday, July 27. Here's how the final exam will work. In

class one week before the final, I will give you materials for a business negotiation simulation. You will not actually negotiate this simulation and you will not submit a plan about it, but you will want to review it carefully and create an excellent plan as if you were about to negotiate it with a very good counter party. When you arrive for the exam the following week, I will ask you to discuss some aspect of the negotiation, such how you would deal with a specific, serious problem that might arise during the talks or whether a draft agreement is wise. The question(s) will be designed to test your ability to prepare for a negotiation, to assess the outcome of a negotiation, and to use course concepts effectively under stress to reach a wise outcome. To help me spot which students prepare most effectively, I will allow you to refer to your negotiation plan during the exam. I will also ask you a few other questions, mainly about material we will have discussed after the midterm. These may be multiple choice or short answer questions. The final will take 45 minutes.

The Negotiation Journal During the semester, you will write a Negotiation Journal which consists the following:

-Real Life Experiences- three pieces about your own or other people's real-life negotiations and -In Class Experiences- Two in-class simulation memos

I describe the Journal in more detail below.

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Negotiation Journal-Real Life Experiences

You have some choices about the three real-life things your write about. Here is a menu:

Here are details about each of these real-life choices:

1. Real-life negotiation(s)- You can write one, two, or even three journal entries about real-life negotiations you do during the semester. Each journal entry counts as one of the three items you need to do for the Journal, following a format that appears below. In each negotiation you write about you should consciously use specific course concepts which you name in the entry . Except as I note below, it is usually best to write about negotiations that you had at least 10 minutes to prepare for and that you really did consciously think about beforehand.

To learn and earn the most on journal entries, write about experiences during the semester that really allow you to use several of the course concepts. While a consumer transaction can be a useful subject if it really demanded serious thought, write about something else if it is a pretty simple or unsurprising experience. If, for example, you go out to buy a VCR and you shop around and haggle on price, this is probably not worth writing about. Look instead for matters where there is more than one issue or heated feelings or something important is at stake, or for negotiations where something about the outcome really surprised you.

In reviewing your real-life negotiation entries, I will first ask "to what extent did the student intentionally use specific course concepts before and during the negotiation;" Second, "how well did the student understand how to measure his success in this negotiation?" and lastly and least important, "how good a result did the student negotiate?" What seems like one of the worst negotiation disasters can be the basis for an outstanding Journal entries if you are insightful about what went wrong in the Review section at the end of the entry; in contrast, you may earn a poor grade if you do well in a negotiation but didn't intentionally use course concepts and can't explain how you did it or why it is a success. In short, it's your awareness I am most concerned about, not merely your skill.

Most of the best negotiation entries have been about negotiations which the student prepared very well for. Some outstanding entries have been about spur-of-the-moment negotiations in which the student consciously used course concepts to change the direction of the discussion.

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1. Real-life negotiation(s)2. Teach Someone to Negotiate using the I FORESAW IT mnemonic 3. Observe a Negotiator. 4. The Other Person Review5. The I FORESAW IT Review 6. Prepare, Negotiate, and Comment on a Complex Out-Of-Class Simulation 7. Video tape the Complex Out-Of Class Simulation8. Various Challenges! I'll Announce During the Semester9. Your Own Suggestions10. The Negotiation-in-Film Review11. The Term Paper Alternative

You may want to brainstorm a list of 10 possible things to negotiate during the term to give you the best chance of finding one or two really good ones, but that is up to you.

Regardless, you may elect to skip further real-life negotiation altogether and do some of the other choices listed below instead.

2. Teach Someone to Negotiate using the I FORESAW IT mnemonic One of the best ways to learn something is to teach it. Therefore, any time after our fifth session, you may elect to teach someone outside the course how to negotiate, preparing him for a specific negotiation. Using a format I'll tell you about in class five, write a two to three page discussion of the experience, telling me how you taught him, what he negotiated, how it came out, what his reactions were, and what you each learned.

3. Observe a Negotiator. Another one of the best ways to learn how to negotiate is to actually talk to and watch a seasoned negotiator in action. So you may elect to visit, observe, and interview a negotiator and then write a two to three page essay about the experience, following the format I will describe in more detail later. There are many possibilities, and you may want to use this assignment as an opportunity to get to know a business leader or school alumnus. (Of course, it may take some negotiating on your part to get someone to agree to welcome you, but fortunately your learning to do just that.) By 'observe' I mean actually, silently attend a face-to-face negotiation (or listen to a phone negotiation) as it happens, as if you were a fly on the wall. Since your mentor's time will be limited, you may ask him as few as three or four good questions if he allows you to watch him work, though of course if he is willing to talk more by all means ask more. Try someone else if can't let you watch him work, and he only is able to let you interview him. (Why? Because theoretical conversations about negotiation are not likely to be nearly as illuminating.) You may observe anyone as long as he regularly negotiates or mediates professionally. Since some negotiations take much longer than a day, you may elect to observe one significant meeting, as long as you are clear enough about the background so that you can understand what's going on while you watch, though if you can find out how it later turned out, you should. Since your mentor may be concerned about confidentiality, you may, if necessary, promise him that you will only report what you observe to your professor and that you will keep the matter confidential to the fullest extent permitted by law. Below are some suggestions.

Observe a car dealer's work negotiating a car- Call several local car dealerships and negotiate for the chance to spend a day watching one of them negotiate and interviewing him.

Observe a sports team general manager, an investment banker, or another 'dream' mentor While there is no guarantee, you may want to use the assignment as a way to learn from someone in a field you've always dreamed of becoming involved with. Your negotiation skills may allow you to make this actually happen!

Observe a mediator at a community dispute center You may also wish to get in touch with, visit and observe trained mediators handling real legal disputes on campus and in the city. If you are interested in this option, check with me and I will suggest some places to contact.

4. The Other Person Review If you do a serious real-life negotiation that really requires you to negotiate at some length with someone else, you may elect to go back after the negotiation is over and interview the Other Person, asking him for candid, constructive feedback about your work as a negotiator in the negotiation. If you elect to do this assignment, do not allow your Other Person to simply say you were fine. Using questioning techniques we will have learned by session six,

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interview him thoughtfully so that you really get a fresh perspective on the process and the subject matter and his feelings before, during, and after. If you feel or find your Other Person can't give you candid feedback, don't use it. If it does work, write a two page discussion of the interview and what specific lessons you've learned from it.

5. The I FORESAW IT Review Using a total of four of the letters from a mnemonic we will study by our sixth session, review a real-life negotiation you wrote an entry about to see how if you could have had better results with better preparation. As part of this review, do at least 20 minutes of actual factual research above and beyond the work you did originally. Don't just ask Factual research questions- get answers and report them. This research counts as one of the four letters. Then discuss your answers to each of the three other letters you thought about during your review. Pick letters that you feel would have made the most difference to you. (Hint: some may be more critical than others.) Then, most importantly, discuss in at least a couple of paragraphs what specific conclusions you draw form your review. Don't just list things- assess your earlier negotiating work in light of your new thinking and learning. Also, don't simply assert "this work would have helped me a lot." If you feel it would have, explain why. Be specific. If you honestly feel it would not have helped change things, that's fine- just explain why. Be specific. A complete review usually takes a couple of pages.

6. Prepare, Negotiate, and Comment on a Complex Out-Of-Class Simulation. You may elect to do a complex two hour negotiation simulation out of class with at least one classmate and submit a two to three page comment on the experience, together with a copy of the preparation plan you created for the simulation, using the preparation framework we will have covered by session five. (The plan should be as long or as short as an excellent negotiator's would be.) If you are interested in this option, come talk to me with the classmate(s) you wish to do the simulation with, and I will give you the materials. (Because the materials are copyrighted, you may need to pay the copyright holder up to $3.00 per copy.) If you elect to do this assignment your comment should follow the format I will describe in more detail in a separate memo, which I will give you along with the simulation materials. You may also want to do the following assignment as a second, separate project.

7. Video tape the Complex Out-Of Class Simulation. Because some students find that it is a revelation watching themselves negotiate, you may do the Complex Out of Class Simulation and arrange to have the simulation video taped. Review the tape (if possible, with your classmates) and then comment on what you see during this review as a separate writing assignment. The comment should be two pages long and should include your responses to written questions I will give you when I give you the simulation.

8. Various Challenges! I'll Announce During the Semester During the semester I may announce another assignment which you can use as part of your Negotiation Journal. Stay tuned for details.

9. Your Own Suggestions. If there is something you would like to do instead, I am happy to consider it. Just make sure the idea allows you to have or witness a realistic negotiation experience that you can learn a lot from.

10. The Negotiation In Film Review You may elect to watch a movie where someone negotiates at length and then write a comment about the movie. If you do so, you must ground the review by finding out how realistic the movie is, which you can do in any one of several ways. One way is to interview someone who has been in a similar situation in real life; another is to read a book or article on the subject that really studies how the same type of situation usually plays out in real life. Another is to actually do the same sort of negotiation yourself if you can put yourself in a similar

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situation. Keep in mind that most movies depict unrealistic or even ludicrously unwise negotiating technique. This is because movies require drama and risk, whereas wise negotiators try to reduce drama and risk. Even when a movie depicts wise technique, remember that movies often glamorize and simplify the dynamics. Therefore, for example, don't simply praise Henry Fonda's work in 12 Angry Men; find out it his approach is realistic by learning something about what real jury dynamics are like. Don't just describe Kevin Spacey's work in The Negotiator; learn how actual hostage negotiators would handle such a situation. Don't just observe the coalition dynamics in The Treasure of Sierra Madre; read a case study or interview someone who's been in a three person business partnership. In your write up, do use course concepts explicitly to discuss the movie and your learning beyond it. What concepts did the hero use? Fail to use? To what extent does your research confirm or qualify that his approach would work? Your write up should be about three or four single spaced pages long. Check with me first before you do this assignment so I can tell you if I've seen the movie (if I have you won't need to write as much explication about it) and whether it's a good choice for a paper.

11. The Term Paper Alternative (If you do this one you only need to do one other writing assignment to fulfill the requirements for the Negotiation Journal.) Write a 7-9 page single spaced paper about any historical negotiation, describing the negotiation and analyzing the work of at least one key negotiator using course concepts. Your paper should draw on at least two reliable published sources (i.e., books, documentaries, articles, etc.) which you should cite. The negotiation itself should be one that has been documented from the perspective of each side. Thus it wouldn't be acceptable to write a term paper on Donald Trump's discussion of a certain real estate deal in his book The Art of the Deal unless others have documented the deal well enough so that you can understand the deal from the other side's perspective. The paper should discuss a negotiation which occurred at least five years ago. (Why? Because unfortunately, current event negotiations are usually shrouded in mystery, a shroud which usually doesn't begin to lift for several years.) The first part should describe the matter in succinct detail; in the second part you should explicitly use several specific course concepts to analyze the work of one negotiator. You should draw specific conclusions about what the negotiator did well and what he did badly that he might have done better. To make sure you have chosen a good topic, please submit a very short paragraph to me describing your topic before you begin seriously researching it.

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Real Life Journal Entry FormatYou should write each Real Life Journal Entry in the form of a single-spaced, typed

business memo in 12 point type using the following format:

To: Professor FreemanFrom: [your full name]email: [the address you want me to use]Date:Re: [a one line summary of the matter discussed, e.g. "Buying Contact Lenses." Add at the end the phrase "- Planned Negotiation" if you expected to negotiate the matter and spent at least a few minutes thinking -about it beforehand.]

Each entry should record the following, using the following underscored headings, in this order:

What happened. (That is, give a succinct, objective description of the key facts).

How it came out/where it now stands. (That is, summarize the outcome, if any, and what, if anything, remains to be settled. If there was no conclusion, say so. Often negotiations are not resolved in one week. If the matter is unsettled, add an update later if applicable.) Be specific. Don't write, "we reached an agreement we were both happy with." Write, "we agreed I would pay $330 for one ton and that he would cancel the delivery charges."

What Was My Best Alternative to a Negotiated Agreement. (That is, what specifically was the best thing you could do instead of agreeing with the other person? If at all possible, refer to specific prices you think you could get or acts you could take. (Vague answers here (e.g. "look elsewhere") usually hurt your journal grade.)

How I felt. (i.e., how you felt before, during and after.)

How my counterpart(s) felt (as nearly as I can tell). (That is, what did your counterpart(s) think and feel? What was she saying to you in word and manner?

Preparation and approach. (you should attach any written plan you prepared before the negotiation).

Ethical dilemmas (if any). (If you feel you faced a significant ethical problem of some kind, briefly describe it. If not, simply say so.)

What surprised me. (What surprised you about your experience negotiating the matter? Please do not say what you would do differently, and don't write about surprises about the initial situation or the other person's 'attitude'; focus rather on what surprised you about the process and the outcome once the matter arose.)

Assessment Discuss in two or three paragraphs the answers to these questions: (1) was this negotiation a success? What measure(s) of success are you using? (2) Why did it go the way it went, and what course concepts help explain the outcome? (3) What, if anything, would you do differently? Be sure to include this section- it's worth a significant part of your grade.

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Sample Journal EntryTo: Prof. FreemanFrom: Seth Freemanemail: sample-email@address.wowDate: January 11, 1996 Re: Buying Contact Lenses- Planned NegotiationWhat Happened: I needed to replace my old contact lenses. I began my search by clipping ads and calling and visiting different eye wear places for price quotes. I also learned as much as I could about different brands. The best deal I found was a place that offered two pairs for $85 including an exam, an offer which I got in writing. This was an excellent price, but I wasn't sure about the brand they were using. Also, I preferred Sterling, my old store, because they'd given me good service. Unfortunately, Sterling told me over the phone that the best deal they could offer was one pair of my usual lenses plus an exam for $100. I went there, expecting to pay this amount, and after the exam the optometrist began to get me my usual lenses for $100. As an after thought, I asked her about the $85 price quote I had from the other place and asked if I could use her phone to check if they offered my usual lenses there at that price. When she saw the written price quote and realized I might go elsewhere, she excused herself. When she returned she offered me two pairs of my usual lenses plus the exam for $85. I gladly accepted the offer.

How It Came Out. I wound up with two pairs of my usual lenses plus an exam for $85 from Sterling.

What Was My Best Alternative To a Negotiated Agreement. Two pair of lenses by an unknown manufacturer plus an exam for $85 from a local store.

How I felt: I felt awkward and hesitant about asking for a price adjustment. I felt proud when the optometrist offered me a much better deal. I also felt petty.

How my counterpart felt (as nearly as I can tell): She was cheerful throughout the conversation. I think she felt a bit embarrassed about lowering her price so much from her initial offer, because when she came back with her new offer she told she hadn't been aware there was a special on this lens.

Preparation and approach: I gathered prices from about six outlets. I also checked Consumer Reports to help me learn about different brands. I got a written price quote from the best place and brought it with me to Sterling. My initial approach there was no approach at all- I felt resigned. At the last minute I decided to ask and the rest followed.

Ethical dilemmas (if any): At what point am I pressing too hard to save money?

What surprised me: I was surprised how hesitant I felt talking about price with the optometrist. I was also surprised at how much she came down. My preparation helped me almost in spite of myself. I was also surprised how proud and petty I felt later.

Assessment: The negotiation was a success for the most part. I say this for X reasons. First, ... .Second, ... This can be seen in the fact that .... Third, .... Specifically, .... However, I do see a possible problem in the fact that the outcome may --------------. I say this because.... I believe the

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negotiation went well, for the most part, for several reasons. First, the XYZ concept helped because......[This Assessment section would typically go on for two or three paragraphs.]

Negotiation JournalIn-Class Experiences

During the semester you will write two memos, each three or four paragraphs long about in-class simulations. Both will be due with your Negotiation Journal late in the semester. You may write about any simulation or exercise which you feel you learned something important from. While it's fine to describe what happened in the in-class simulation, be sure to also tell me about lesson(s) you learned that can help you in your real life negotiations. Which one should you write about? Pick the ones that were most memorable, infuriating, surprising, or enjoyable to you. Don't just pick one you did well on- some of the best entries have been written by students who found they failed miserably. The key question is this- which one did you get the most out of? You don't need to write a long essay to do well on this assignment. Do write a succinct, insightful memo that discusses your reactions and that considers the applicable concepts. You don't need to give a step by step account of the experience itself except to the extent it helps you write more clearly about what you learned. Here's what the memos should include the following:

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In-Class Simulation Contents

(1) What specifically did you learn about negotiation from this simulation or exercise? What, if anything , surprised you?

(2) How did specific concepts from the readings or lectures apply?

Format:Write the memos in 12 point type. Use this format:

To: Professor FreemanFrom: Date: E mail address: Re: ----- Simulation [or ----- Exercise](1) What Specifically I learned from this Simulation or Exercise? (2) What Idea(s) from the Readings and Lectures Really Applied?

Alternative Format: You may instead combine these paragraphs into a two or three paragraph essay if you feel it would read more cogently that way. Just make sure you discuss lessons and important course concept(s).

Thoughts on Writing and the Fear of Looking Dumb. Good writing counts in business. For this reason, part of your grade on the journal will depend on the quality of your writing. To write well, you will need to edit well, which means you will need to review your style, punctuation, grammar, and spelling after you write something. One of the biggest barriers to good negotiating and good writing is the Fear of Looking Dumb. In negotiating, that fear can make you ramble and act as if you're very important when it would be much wiser to ask simple questions. In writing, the Fear of Looking Dumb can make you use complicated sentences and big words that hide your point. There's no need to fear looking dumb in this course, because I know that you are very smart. You wouldn't be in this program if you weren't. So when you write your journal, fight the Fear of Looking Dumb, in part because it will help you overcome that fear in your negotiations. As you write please:

Use Simple Words. Follow Winston Churchill's suggestion as much as possible: "Short words are best, and old words, when short, are best of all." Avoid Business Jargon. For example, avoid statements like these: "it negatively impacted the situation;" and "it really shifted the paradigm." Use the Active Voice. For example, write "I made a mistake," instead of "mistakes were made." You are using the passive voice if at the end of a sentence the reader must ask, "by whom?" Use The Ten Year Old Writing Test. To see if you are beating the Fear of Looking Dumb, every now and then try the 'Ten Year Old Writing Test': Take a sentence you have written and rewrite it in your mind using words that a ten year old child would understand. If the new sentence is at least as clear as the old one, you may need to fight harder against the Fear of Looking Dumb. To see if I've lived up to my own suggestion, look over this page and see if you think a ten year old child would understand it.

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Day-To-Day Course Logistics

Seating- To help me learn your names, please pick a seat you'll be comfortable with throughout the rest of semester.

Handouts- You'll find handouts for the day's class in a stack near the door as you walk in. Please take one of each handout. (Please don't take anything from the Professor's desk.) If you wish to take an extra handout for an absent friend, just be sure to take from the bottom of the stack. (Otherwise you may inadvertently throw off one an in-class simulations.) If you miss a class, you can pick up handouts for that class from me or go to our web www.stern.nyu.edu/~sfreeman/. While I try to get things posted fairly promptly, I find it sometimes takes me a while to do it, so if you need something sooner, see the next paragraph.

Getting Assignments Between Classes- The syllabus lists when I'll hand out each assignment and when each is due. However, if you miss a class, you may miss the assignment itself. To make sure you know what you missed before it's due, please exchange your phone number(s) and E-mail addresses (if any) with at least two classmates before you leave class. You can, of course, contact me with any questions you have about announcements or assignments (or anything else, for that matter), but for basic information check with your classmate first please.

Submit Assignments in Class or By Mail, Not E-Mail, PleaseIf you can't make it to class when an assignment is do, please mail it to me at 109-33 71st Road, 3h, Forest Hills, NY 11375 by regular mail (not certified or registered, please- it bounces back.) You do not need to send it by an express mail service- please save your money. As long as the mailing is postmarked the day of the assignment I consider it submitted on time. Unless I give you permission, though, please do not e-mail an assignment to me.

What If You Submit Something Late?If you submit something late, I'll deduct three points of your grade on the assignment for the first day it's late and then one point for each additional day (except Sunday.) I consider an assignment submitted to me on the day it's postmarked. Please do not submit a part of an assignment. If you do, I'll treat it as if you submitted it when you submitted the last part. Also, because partial assignments create a surprising amount of confusion, I'll also have to deduct an additional point from your grade on the assignment.

When and How to Reach Me: Phone: You are welcome to call me with questions, comments and problems any time

from 11:00 a.m. to 11:00 p.m. any day but Sunday. My phone number is (718) 575-8597. Please do not call me or e-mail me to tell me you'll miss class.

E-Mail: You are also welcome to write me by E-mail. My address is seth.freeman@gte.net. While I will forward word processed materials if you unexpectedly miss class, if you know in advance that you are going to miss class I will expect you to make arrangements with a classmate to get class materials. Because I do not have a scanner, I will not be able to send you photocopied articles by E-mail or fax. Please don't submit writing assignments via E-mail without my prior permission.

Office Hours I hold office hours by appointment. I encourage you to visit to talk about course work and

other concerns. If you would like to set up an appointment, just let me know by phone or e-mail and we'll set one up. I also hold informal office hours after class.

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Biography

Seth Freeman, J.D. practiced corporate and securities law in large New York firms for six years following his graduation from the University of Pennsylvania Law School in 1984. Since 1991 he has taught law and business at several schools, and is now an assistant adjunct professor at NYU's Stern School of Business and Columbia Business School, where he teaches in the full time and EMBA programs. He is also a visiting professor of international business negotiation at L'Ecole Superieure de Commerce de Bordeaux. He teaches courses on a variety of subjects including the economics of complex decisions, negotiation and conflict management, entrepreneurial negotiation, securities regulation, corporate law, and general business law.

Professor Freeman also serves as a trainer and consultant on negotiations for large organizations including UBS AG (formerly Union Bank of Switzerland) and Stew Leonard's.

Since 1992, Professor Freeman has also been an active student of mediation and other forms of alternatives dispute resolution. He served as a mediator for the Queens Mediation Center and as a member of the board of directors of the Society of Professionals in Dispute Resolution, New York Chapter.

Professor Freeman's work in private practice included transactions involving initial public offerings, corporate restructurings and aircraft financing. He graduated from Cornell University in 1981 with a degree in economics.

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Syllabus and Reading ListTuesday & Thursday 7:30 - section 70

Here are the readings for the course:

Required: Getting To Yes ("YES") by Fisher & Ury Getting Past No ("NO") by Ury

The Business of Negotiation (course reading packet).

You should complete the reading assignments before the class indicated unless otherwise noted. Readings will comprise a significant portion of the subject matter for your writing assignments and the exams. In addition to the assignments listed below, I will from time to time distribute other materials. Unless otherwise noted, articles listed below are in the Reading Packet.

1. (Tuesday, May 16) Overview of the negotiation process and introduction to principled negotiation; Far Side Exercise.

No assignment. 2. (Thursday, May 18) Game: "Win As Much As You Can;" The Negotiator's Dilemma and the Problem of Trust; Moral Sentiments, Trust Substitutes and Ways to Build Trust.

Readings: YES chapters 1 and 2.

3. (Tuesday, May 23) "Babylon Cellular Simulation;" Alternatives to negotiations

Readings: YES chapters 6 and 5

Optional Follow up Reading to the Win As Much as You Can game: Part V-"Can We Work Together? The Trust Dilemma and the Elements of Agreement

Pick up: Hotel Booking Exercise and find a classmate to trade notes with after you try the exercise; be sure to trade phone numbers with that classmate before you leave tonight.

4. (Thursday, May 25) "Texoil Simulation;" Interests and Options; Yessable Proposals, "If We Agree/If We Disagree"

Readings: YES chapters 3, and 4; NO Chapter 4 pp. 107-129. Also read materials in the reading packet regarding the Hotel Booking Exercise. (NOTE: Check the assignment I distributed in class 3 to find out which city you are visiting- the materials on the reading packet may refer to a different city than the one you are visiting.)

5. (Tuesday, May 30) Four Conflict Management Techniques: Common Interests; Threats, Warnings and Warning Sandwiches; Listening & Question Asking; Going to the Balcony

Readings: NO Chapters 2, 3 & 5 (but skip pp. 39-42 and 89-104)

6. (Thursday, June 1) Hotel Booking Exercise Debriefing; The measures of success in negotiation; Objective Criteria

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Due in Class: Two copies of your Hotel Booking Exercise Memo; one for your classmate with whom you worked on the exercise and one for Professor Freeman

7. (Tuesday, June 6) Planning for Negotiations with I FORESAW IT; The Omni Hotel Exercise.

Reading: "I FORESAW IT: A Way to Improve Your Preparations for Negotiations;" NO Prologue; NO Chapter 1 pp. 31-39; 44-51

8. (Thursday, June 8) Topics, Targets, & Tradeoffs, The Republic I FORESAW IT Salary Planning Exercise

Reading: YES ch. 4; Republic Salary Exercise materials (which appear after the article on I FORESAW IT in the reading packet.)

Due in class: Be prepared to discuss (not submit) the I FORESAW IT planning exercise assignment. Do not look at "Research Data" until after you have done the first nine letters of the mnemonic. Then read the Research Data and prepare the last letter ("T") of the mnemonic.

9. (Tuesday, June 13) Distributive Bargaining Basics; Louis Numbers; The Book Publishing Negotiation Simulation; The Ultimatum Game

Reading: Essay on Distributive Bargaining

Pick up: "Topics, Targets, and Tradeoffs Exercise" and sample answers. (While you will not submit the exercise, it may be particularly useful preparation for the midterm.)

10. (Tuesday, June 15) Midterm exam.

No assignment

11. (Thursday, June 17) Distributive Bargaining- Elmtree House Simulation

Pick up Secret Garden assignment information (for class 13) 12. (Thursday, June 22) Pacific Oil; Sharp Tactics and ways to cope with them; managing multi-issue negotiations with Agenda, Single Negotiation Texts (drafts agreements and term sheets) and other techniques

Readings: Pacific Oil case. Be prepared to discuss the case and the questions there; YES Chapter 8; NO Chapter 3 pp. 39-43; 89-104;

Reading: YES pp. 112-116

13. (Tuesday, June 27) Secret Garden Simulation

Due in Class: Be prepared to receive and respond to Carter Corporation's offer by reading the Secret Garden materials and meeting with teammate(s) to discuss negotiation strategy.

14. (Thursday, June 29) Time Bombs, Four Tests for whether m Working Women Simulation; Advanced Bridge Building Techniques

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Reading: Time bombs

15. (Tuesday, July 4) Alternative Dispute Resolution and ADR clauses; Simulation

Readings: Part VIII- Alternative Dispute Resolution (ADR) readings; Using I FORESAW IT to decide whether to Sue or Settle; Optional Reading:"Peacemaking: and "Fair Fighting"

Pick up: Journal assignment (due class 20)

16. (Thursday, July 6) Budget Dilemma at DowPonto; Consensus Building and Mediation; Mitchell at Northern Ireland

Reading: "The Principles Applied: Budget Dilemma at DowPonto; be prepared to discuss what Chris Hubbard did right, what he did wrong, and what you would have done differently, if anything. Also read "Managing the Tension."; "How To Mediate"; "What Good does a Mediator Do?" and Some Examples of Mediation at Work."

17. (Tuesday, July 11) Pros and Cons of Pros and Cons of managing by consensus and arbitration; Tower Market Simulation

No assignment

18. (Thursday, July 13) Coalition game; . Anticipating, managing, and overcoming coalition dynamics with I FORESAW IT

Reading: Coalition Game Rules

Pick up: Final Exam memo

19. (Tuesday, July 18) The Manager as Bridge Builder: The Colosi Model of Organizational Conflict; Waco video; Ike in World War II

Reading: A Model of Negotiation and Mediation by Thomas Colosi; "Negotiation and Mediation: a Diplomat's Perspective." "Mediation as a Way to Manage Bureaucratic Conflict".

20. (Thursday, July 20) Hollywood Simulation; Working with and as Agents; Closing Thoughts- should you negotiate?

Reading: When You Represent Some Else

Due in Class: Your entire Negotiation Journal consisting of (1) accounts of three real life experiences and (2) comments on two in-class simulations. See the syllabus for details about the format for each piece.

Final Exam: Section 50 (5:30-7:20) Tuesday, July 25 in MEC Room 3-60 at 5:30.Final Exam: Section 70 (7:30-9:20) Thursday, July 27 in MEC Room 3-60 at 7:40.

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NYU Stern School of BusinessConflict & Negotiation

Summer 2000 Professor Seth Freeman

Class 1Introduction to Negotiation

I. Overview of the negotiation process

A. What is negotiation? B. The hard work of negotiating well C. Centrality of negotiation to the businessperson's job D. Video clip II. Principled Negotiation

A. Introduction

1. The risk of spiraling into destructive conflict 2. The need to be hard on the problem, soft on the person 3. Using the same three principles to be hard on the problem, soft on the person

4. The danger of relying on your ‘gut’ alone- Mrs. L's Datsun 5. Using three principles to guide you and measure success

B. Focus on Interests and try to Reconcile them Creatively 1. The Parable of the Orange 2. The Egypt-Israeli Peace process 3. Pros and cons of the interest-based approach 4. Use interests to generate lots of options

C. Know your Alternatives to Agreement- BATNA 1. What will you do if you don't reach agreement? 2. My Greatest Negotiating Triumph Ever 3. BATNA 4. Shopping, auctions, litigation and war

D. Use Objective Criteria to Know and Show an Agreement is Fair 1. What standard or process do we both trust? 2. The Honda Accord case 3. The Bank Salary case

III. The Limits of Principled NegotiationIV. The Far Side Exercise

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The Fearof

LookingDumb

The Far Side Exercise

Look over the Far Side Cartoon I am giving you. Then, please identify two or three interests the Institute has and two or three interests the Band School has. (Why does the Institute want to riot? Why does the School want to play loudly?) Then, list at least six creative Options that might simultaneously satisfy an interest of each side. (Remember, an Option is something the two sides can agree to. For example, one side could buy the other ear plugs. Or, using two Options, one side could agree to use ear plugs and the other could agree to play toward the floor instead of playing toward the window. In contrast, an alternative is something one side can do if the other side won't agree- such as sue.) One of your six options must be crazy-nutty-laugh out loud funny. We'll see how many ideas you came up with. The world record for Most Options Generated for this exercise is held by a class of undergraduates in Bordeaux, France. Can you beat them and bring the title back to the States?

Institute's Main School's MainInterest(s) Interest(s)________________________ _____________________________________________ _____________________

Creative options that might simultaneously satisfy at least one interest of each side

________________________________________________________________________________________________________________________________________________________________________________________________________________________

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