the great negotiation hoax

14
The Great Negotiation Hoax

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A critique of the Harvard method and a defence of positional bargaining.

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Page 1: The Great Negotiation Hoax

The Great Negotiation Hoax

Page 2: The Great Negotiation Hoax

Positional Bargaining Revisited

Page 3: The Great Negotiation Hoax

Positional Bargaining

Competitive/Adversarial negotiators move psychologically against their opponents, try to maximize their own returns, strive for extreme results, begin with less realistic opening offers, behave in an adversarial and insincere manner, focus mainly on their own positions rather than rely on objective standards, frequently resort to threats, minimize the disclosure of their own information, are closed and untrusting, endeavour to satisfy the interests of their own side, try to make minimal concessions, and manipulate opponents.

Charles Craver, Negotiator Styles in Bargaining

Page 4: The Great Negotiation Hoax

Principled Negotiation

Page 5: The Great Negotiation Hoax

The Right Way to Negotiate

Principled Negotiation Positional Bargaining

Integrative Distributive

Cooperative Competitive

Collaborative Adversarial

Win-Win Win-Lose

Non Zero Sum Zero Sum

Interests Positions

Page 6: The Great Negotiation Hoax

Back to Common Sense

I refute it thus.

Page 7: The Great Negotiation Hoax

The Invisible Hand

Economic agents seek to maximize their utility

Page 8: The Great Negotiation Hoax

One Size Fits All

Page 9: The Great Negotiation Hoax

Ryanair

$28 million

Page 10: The Great Negotiation Hoax

Emirates

$36 million $23 million

Page 11: The Great Negotiation Hoax

Academic Research

The particulars of a proposed deal define the value of "yes." But how is the value of "no" determined? It depends on how well your interests are served by choosing your best "no-deal" option - the most promising course of action you would take if you decided to say no to the proposed deal.

David A. Lax and James Sebenius3-D Negotiation: Powerful Tools to Change the Game in Your Most Important Deals (2006).

Page 12: The Great Negotiation Hoax

Gobbledygook

“parasitic integration”“negotiauction” “motivated illusion”

“hidden constraint”“deal-design barrier”

Page 13: The Great Negotiation Hoax

Negotiation Training

Provide a method that is easy to remember and use

Plan and conduct a negotiation Master strategy and tactics Improve bottom line

The outcome will depend on the balance of power

Page 14: The Great Negotiation Hoax

Harvard Negotiation Project