AGL 20 NEGOTIATION SUMMARY LECTURE - PART I

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AGL 20 NEGOTIATIONSUMMARY LECTURE - PART I

•  
• ure.
•  

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11.1 COURSE OBJECTIVES

• The program provides members with the opportunity
  to use negotiation concepts, terms, techniques
  and skills and become more complete managers.
•  
• The specific learning objectives are to
•  
• a. To analyze negotiation process to achieve
  goals exceeding BATNA
•  
• b. To evaluate the impact of culture on
  negotiation.
• c. To practice international negotiation
  communication skills.
•  
• d. To develop skills in achieving
  negotiation strategy.
•  
• e. To motivate further study in the fut

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11.2 NEGOTIATION

• The negotiation process includes planning
  re-negotiation, initiating first moves, making
  the first moves, negotiating prices, closing
  business negotiation and undertaking
  renegotiation.
•  
• The key objective is to achieve win-win goals for
  both parties which establish trust for short and
  long term relationships.
•  
• BATNA - Best AlternaTive with No Agreement.
  Available alternative when negotiation fails.
  Close the deal or walk away to BATNA.
•  
• BATNA affects cash, culture, deadlines,
  interests, knowledge, and the experience of both
  parties. Assess your BATNA at the outset and
  estimate the opposing BATNA.

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11.2 NEGOTIATION

• Negotiation environment includes such complex
  factors as instability and change, government
  control and policy, foreign exchange
  fluctuation, political and legal change,
  external stockholders and parties, ideological
  and cultural differences.
•  
• The negotiation setting may includes levels of
  conflict underlying potential negotiations,
  relationships before and during negotiation,
  desired outcomes, stockholder impacts, relative
  bargaining power and dependence and finally the
  negotiation style.

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11.3 PLANNING

• Negotiation begins with research and
  pre-negotiation planning with each party g with a
  different goal and hopes to achieve it. Thus
  there is need for clarification, comprehension
  and credibility, in order to create mutual
  values.
•  
• As negotiation continues the parties reach
  convergence of view with discussion, leading to
  concessions, counter proposals and commitment.
  The final stage is conclusion.

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11.4 INITIATING

• Making the first moved is critical, because the
  first impressions are difficult to change. An
  initial first competitive offer should meet the
  context of the surrounding discussion and must be
  defended with valid arguments.
•  
• In competitive markets a higher initial offer may
  be lowered. In traditional less competitive
  markets, offers on the high side with
  concessions may be more acceptable.
•  
• The initial offer should be confident and yet
  flexible to enable the negotiator to learn other
  party objectives and reformulate to meet specific
  needs. The initial negotiation phase, is the
  opportunity to create trust and exchange
  strategic in formation, not the time to make
  concessions.
•  
• In the initial phase, the buyer keeps his goals
  in mind and is ready to say no and refer to
  competition. He may later seek concessions or a
  better offer or may ask if the proposal can be
  adapted achieve his needs.
•  
• Thus is stage reflective cooperation.

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11. 5 PRICE NEGOTIATION

• Price determines the total revenue and
  profitability of the business by considering
  objective, cost, competition, customer and
  government regulations.
• Price negotiations may follow a cost or market
  approach.
•  
• The cost approach computes relevant costs and
  adds markup to determine price. The market
  approach examines price setting from the
  customers and competitors viewpoint.
•  
• Need to highlight the business and product
  attributes, maintain flexibility and
  differentiate from the competition. At closing
  reliability, reputation and financial stability
  may be critical.

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11.6 CROSS BORDER CULTURES

• Cross cultural negotiations may involve culture
  emotionally based upon traditions, etiquette. It
  may relate to group behavior or just to the
  chosen negotiator parties as freely choose to
  behave.
•  
• Protocols involve dress and behavior deal with
  greetings, formalities, touching, eye contact,
  emotions, silence, eating, body language, and
  punctuality etc. Need to know the key players
  well and the informal cultural influences on the
  process.

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11.6 CROSS BORDER CULTURES

• Cross cultural negotiations may involve culture
  emotionally based upon traditions, etiquette. It
  may relate to group behavior or just to the
  chosen negotiator parties as freely choose to
  behave.
•  
• Protocols involve dress and behavior deal with
  greetings, formalities, touching, eye contact,
  emotions, silence, eating, body language, and
  punctuality etc. Need to know the key players
  well and the informal cultural influences on the
  process. 

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11.7 SELECTING NEGOTIATING STYLE

• Know your personal style and the style of the
  other party. Adjust to match, and ensure smooth
  negotiations.
•  
• Define the style as influenced by task or
  relationship orientation, which directly relates
  to cultural values.

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11.8 PRE-NEGOTIATION PLANNING

• In any negotiation the actual interface between
  the two parties is only one phase.
• The critical element is the research and planning
  for the preparatory stage, which must never be
  neglected.
•  
• Experienced negotiators may sometimes be over
  prepared but should never be under prepared.
  With particular strengths and weaknesses, the
  party that is more committed works harder for its
  goals, and can always can achieve the best
  results.
• Preparation is the best negotiation investment!
•  
• Pre-negotiation planning requires defining the
  issues, knowing the other side position, knowing
  the competition and the especially

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11.9 MANAGEMENT OF CONCESSIONS

• Study Exhibit C which provides practical-guidance
  on achieving success on concessions, in complex
  negotiation environments

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11.10 LEARN FROM CASE EXPERIENCE

• MULTIMODE
•  
• Need for quickly establishing trust with a
  cooperative strategy.
•  
• Acceptance of the other partys interests,
  objectives and limitations
•  
• Recognition of value differences.
•  
• Define conflict areas.
• Creative search for seven alternatives for every
  key issue.

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11.10 LEARN FROM CASE EXPERIENCE

• MULTIMODE
• Priority for fairness in long term relationships.
•  
• Identifying the constraints on each party for
  future working in the company with the tough CEO
•  
• Need for KSA in negotiation to achieve more than
  BATNA
•  
• Personal reputation and status are critical
  factors in implementing negotiated agreements.

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11.10 LEARN FROM CASE EXPERIENCE

• QUICK DRY PAINT
•  
• Need to know about the legal complexities of
  Mexico and the risk of
• corruption and loss of patents.
•  
• Need to be able to check on the specific
  actions of the licensee.
•  
• Who will own improvements in reality?
•  
• In LA, will licensing outcome depends more on
  trust which
• takes more time, than legal issues.

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11.10 LEARN FROM CASE EXPERIENCE

• QUICK DRY PAINT
• Who will bear foreign exchange risk?
•  
• Dispute resolution with an agreed arbitrator
  able to implement
• his decisions.
• Poor outcome of possible litigation in Mexico
  or USA
•  
• Lack of experience in international
  licensing creates high risk. If no
• agreement then BATNA is best.
• RESULT Deal made!!!

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11.11 Negotiation Analysis

• The questions to analyze in a negotiation are
• What is the BATNA of each party, with no
• agreement?
• Who are the real Parties in the negotiation?
• What are the critical Interests of each party?
•  
• How to create value for both parties?
• What Barriers must be overcome to achieve
  agreement?
• How can Power influence the process? 

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11.11 Negotiation Analysis

• What are ethical things to do?
•  
• But rigorous negotiation analysis is necessary
  but not enough.
• Negotiation also needs implementation strategy,
  ability to listen,
• persuasion, positive attitudes, patience
  and humour.
•  
• Negotiation is an interactive process, directly
  related to attitude and
• creativity that needs to encourages
  cooperative behavior
• from the people with whom we deal.

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11.12 OVERALL

• The six Ps of effective negotiation are
  Parties, Process, Power, Product, Problem and
  Prognosis (outcome).
• The key objective is achieving a long term
  relationship of trust for mutual benefit and a
  win-win outcome. The BATNA is an alternative
  for a failed negotiation.
• So much depends upon the negotiation
  environment, process and the setting, which can
  be managed!!

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11.12 OVERALL

• Business success in negotiation may well depend
  upon knowing your product, customer and
  competition effective business decision making
  finding your market niche.
• Quality products creative diversity finding
  expanding markets network contacts trust and
  honesty control of cash, outcomes and risk
  diffusing tension customer loyalty creativity
  and overall on your skills of negotiation

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11.12 OVERALL

• So many things to learn now including
  Exhibit A on Protocols and deportment and Exhibit
  B Practical Advice and Exhibit C Managing
  Concessions

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EXHIBIT A - ProtocolS

• Try hard to avoid making obvious mistakes with
  different nationalities
•  
• English - definite and polite with proper
  protocol and etiquette.
•  
• French - expecting others to behave as if in
  France, conducting business, with the French
  language
•  
• German - protocol important. Conservative dress
  and posture with manner expected. Seriousness of
  purpose and appropriate dress.
•  
• Swedish - formal relationships without price
  disputes. Expect complete professional proposals
  without errors and of high quality.

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EXHIBIT A - ProtocolS

• Italians - extremely hospitable and volatile.
  Make points with dramatic gestures and
  emotional expression.
•  
• Japanese - may spend days or weeks creating a
  friendly, trusting atmosphere before discussing
  any business at all.
•  
• Chinese - follow fixed protocol in negotiation,
  always preceded by small. Opposed to touching.
  Greeting with short bow and very brief handshake.
•  
• Indians - formal business with polite relaxed
  manner. Connections are the key to trust. Always
  request permission before entering, sitting or
  smoking.

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EXHIBIT A - ProtocolS

• Mexicans - practice negotiation with heavy
  emotion . Drama more important than logic.
  Negotiators often selected for skills in dramatic
  and distinguished performances.
•  
• Brazilians - negotiating process valued more than
  the actual result. Discussions lively, heated,
  eloquent, and witty. Great hospitality to
  establish comfortable social climate.
•  
• Russians Tend to distrust business managers.
  Extremely cautious when dealing with new parties.
  

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EXHIBIT B PRACTICAL ADVICE

•  
• a. Risk averse negotiators are sometimes
  desperate to avoid risk and may take a quick
  first offer.
•   
• b. The target point is the point at which a
  negotiator would like to conclude negotiations
  it is not the negotiator's bottom line, not the
  first offer a negotiator quotes to his opponent
  not the initial price set by the seller.
•   
• c. Both tangible and intangibles factors can be
  the most powerful in any negotiation. f. Highly
  individualized (idiosyncratic) deals are much
  more common today, and they are not reserved only
  for a special few.

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EXHIBIT B PRACTICAL ADVICE

• d. Coordinate (cooperative) adjustment,
  involves, making conscious changes to your
  approach to be more appealing to the other party.
  
• e. Both parties making mutual adjustments to find
  a common process for negotiation crafting an
  approach that is specifically designed to achieve
  success in the negotiation situation

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EXHIBIT B PRACTICAL ADVICE

• f. Multiparty negotiations differ from two-party
  deliberations in so many ways more negotiators
  at the table more issues and more information
  introduced environmental changes from
  one-on-one dialogue to small group discussion.
• g. The parties approach multiple issues
  simultaneously tend to achieve lower quality
  agreements increase the likelihood of achieving
  some agreement and yet exchange less information
  and have less insight into the preferences and
  priorities of all the other parties at the table.

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EXHIBIT B PRACTICAL ADVICE

• f. Reputation in negotiation is a perceptual
  identity a reflective of the combination of
  personal characteristics demonstrated behaviour.
  All of these define reputation.
•   
• g. The perceptual process involves a special
  order stimulus, attention, recognition,
  translation, behaviour. Visibility is important
  as it involves centrality or criticality in
  negotiation network structures.  

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EXHIBIT B PRACTICAL ADVICE

• h. Hardball tactics are designed to be used
  primarily against powerful negotiators to
  clarify to a distributive (zero-sum) bargaining
  approach and to pressure d parties to do things
  they would not otherwise do..
•  
• i. Frames are important in negotiation because
  disputes are often nebulous and open to different
  interpretations. Frames do not allow parties to
  develop separate definitions of the issues
  frames can not be avoided frames do not allow
  negotiators to articulate just one aspect of a
  complex social situation

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EXHIBIT B PRACTICAL ADVICE

•  
• j. The most dominant cause of breakdowns and
  failures in negotiation are distortions in
  perception, feedback, and behaviors it is not
  just meaning or cognition.
•  

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EXHIBIT C MANAGING CONCESSIONS

• Plan concessions in advance, concentrating on the
  other partys
• underlying interests.
• Provide sufficient margins particularly in
  cultures that are
• extremely demanding.
• Set aside a few concessions in reserve to be used
  when concluding
• the deal.
• Trade small concessions early on to encourage the
  other party to
• share information and to promote trust.
• Insist on obtaining immediate reciprocity after
  making a
• concession (future promises lose value
  over time).

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EXHIBIT C MANAGING CONCESSIONS

• Determine, the real value of the concessions and
  what other party
• is willing to pay for
• Remember that 80 of the concessions are traded
  in the 20
• remaining time.
• Have the party work hard in obtaining
  concessions to be
• appreciated as well as encouraging the other
  party to reciprocate
• generously
• Provide justification/benefits for each
  concession to enhance its
• value.
• Keep a few nontangible concessions, including
  symbolic ones to
• break a deadlock or to conclude.
• Observe the other party's body language to detect
  hidden motives.

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EXHIBIT C MANAGING CONCESSIONS

• Take into consideration that negotiators from
• different cultures concede differently
• Be aware that how you concede is just as
• important as what you concede.
• Trade concessions in fewer and fewer amounts
• requiring the -other party to spend more
  and
• more time and effort.
• Manage time efficiently by concentrating on key
• issues.

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EXHIBIT C MANAGING CONCESSIONS

• Know the competition to resist giving away
• unnecessary concessions.
• Be aware of false concessions.
• Build trust otherwise reciprocity is not
• adhered to.

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11.13 LEARNING PATTERNS - REVIEW

• Six Ps of effective
• negotiation  

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11.13 LEARNING PATTERNS - REVIEW

• Parties
• Process
• Power

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11.13 LEARNING PATTERNS - REVIEW

• Product
• Problem
• Prognosis
• (outcome)

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11.14 INSTRUCTIONS (20 minutes)

•  Reassemble in SG
• Review the Summary Lecture for Part I
• Discuss questions arising

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11.14 INSTRUCTIONS (20 minutes)

• Get the best out of Part II of the program,
  complete ALL of homework tonight
•  
• Study the course text book Practical Solutions
  to Global
• Business Negotiations (Cellich Jain) -
  Chapter 1 and
• explore the contents of the book for future
  study.
• Study again the AGL Summary Lecture Part 1 and
  Glossary in the Diary.

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11.14 INSTRUCTIONS (20 minutes)

• Review the HBS Article (Investment Analysis).
•  
• Very briefly review the two new cases Quick
  Drying Paint
• and GE (handouts).
•  
• Review your notes for Part I of the course and
  list outstanding
• questions to be resolved in Part II 
• Be sure to return the Workpack to the organizer
  now.
• You have all you need in the Diary.

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END

• END OF SUMMARY LECTURE 1

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3. SUMMARY LECTURE - 2
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12.1 COURSE OBJECTIVES

• The program provides members with the opportunity
  to use negotiation concepts, techniques and
  skills so that they become more complete
  managers.
•  
• The specific learning objectives are to
•  
• To analyze negotiation process to achieve goals
  exceeding BATNA
•  
• To evaluate the impact of culture on negotiation.
•  
• To practice international negotiation
  communication skills.
•  
• To develop skills in achieving negotiation
  strategy .
•  
• To motivate further study in the future.

44
12.2 NEGOTIATION

• The key objective is to achieve the goal
  exceeding BATNA. Helped during talks, when
  effective relationship negotiators focus on a
  variety of non-contractual issues, including
•  
• Getting to know the other side well.
• Establishing a positive personal chemistry
  between the leadership of the
• companies involved.
• Understanding and respecting each others
  cultures, expectations, and
• goals. Putting mechanisms in place to foster
  communication after the
• contract is signed.
• Ensuring that the proposed deal is balanced and
  advantageous for both
• sides.
• Identifying and planning for potential obstacles
  to implementation. 

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12.3 COMMUNICATION

• The exchange of messages between people to may
  achieve common meaning,
• in three forms
•  
• Instrumental/goal directed communication - where
  the sender seeks
• to achieve specific effects in the
  receiver - most important in work. Such
• deliberate communication is "transmitted".
•  
• Expressive communication - where an emotional
  state (e.g. joy or anger)
• or a motivational state (e.g. enthusiasm
  or frustration) is
• spontaneously "emitted"
•  
• Incidental and often un-conscious communication
  where the sender
• "imparts" information to others without
  intending to.
•  

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12.3 COMMUNICATION

• Be prepared for a practical reality face to
  face" communication, as information may
  transmitted as follows
•  
• 10 - in words
• 50 - in facial expressions
• 40 - in vocal intonation and inflection.
• Thus words themselves or the "rational
  component", may convey only about 10 of the
  communication message. 90 of each message
  depends on the "emotional feelings content",
  whether we are aware of it or not!
• Communication is helped by words and feelings.

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12.4 INTER-GROUP BEHAVIOR

•  
• In negotiation between groups, to survive and be
  effective, a group must work through differences
  with other groups.
•  
• Inter-group relationships are fostered by the
  norm of reciprocity ie. exchange of favors -
  like a human resource bank account. Communication
  can fail when a group refuses to provide favors
  for another.
•  
• Older more inflexible individuals and groups tend
  to become resistant to change. Such groups are
  "frozen". Frozen groups, contrast with dynamic
  groups that are more able to change.
•  
• People who perceive their established positions,
  status, security, privileges etc. to be
  threatened by change will resist it more
  strongly.

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12.5 NEGOTIATION CONCEPTS

• Everything is negotiable with the tools of time,
  power and information and with a "win/win" style
  of negotiation.
•  
• Win/lose negotiation styles do not support long
  term cooperation, Successful win/win negotiation
  lies in finding out what the other side "really"
  wants and showing them the way to get it while we
  get what we want.
•  
• Most needs can be satisfied by the way we act and
  behave, when the goal is mutual satisfaction (but
  we must avoid "nibbles" - asking for extras AFTER
  a deal!).

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12.6 COMMUNICATION AND NEGOTIATION SKILLS FROM
A-Z

• Study the ideas in Exhibit A and recognize the
  ones which you have already learned.

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12.7 PRACTICAL THINGS NOT TO DO IN NEGOTIATION

•  
• Study the ideas in Exhibit B and recognize the
  ones which you have already learned.

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12.8 LEARN FROM EVERY CASE EXPERIENCE

• QUICK DRYING PAINT CASE
•  
• Clarify the different roles in licensing
• Recognize the complexity of licensing and the
  risk of patent loss.
• Define what the licensor must be sure to do
• Decide on the ownership of improvements
• Forecast outcomes with specific clauses and
  controls
• Decide who bears foreign exchange risk
• Provide for dispute resolution with an agreed
  arbitrator
• Be realistic on possible outcome of litigation in
  Mexico or USA
• Recognize the possible unequal parties in
  licensing
• With no agreement back to BATNA

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12.8 LEARN FROM EVERY CASE EXPERIENCE

• GE CASE
•  
• Contrast of cultural values.
• Possible joint venture despite highly different
  objectives.
• Several other alternatives available
• Why is tit that negotiations fail
• How to ensure fulfillment of Asian contracts
• Taking two years of meetings to agree a
  relationship
• Cross cultural behaviours and endeavours
• Nature of the win-win deal
• Need to accept and structure re-negotiation
• With trust for a long term potential together
•  
•  

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12.9 OVERALL

•  
• SWOT and KSA to achieve a goal exceeding BATNA.
•  
• The six Harvard Ps of effective negotiation are
  Parties, Process,
• Power, Product, Problem and Prognosis (outcome).
•  
• The key negotiation objective is achieving a
  long term relationship of trust for mutual
  benefit and a win-win outcome.
•  
• The BATNA is an alternative for a failed
  negotiation.

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12.9 OVERALL

• So much in negotiation will depend upon you
  managing environment, process and the setting,
  Now you can do it !!!
•  
• On we go together when you have time be
  sure to study section 4.0 Cultural Challenges
  and you will find that you have absorbed the
  answer to each case instinctively after 2 days
  of AGL interaction negotiation instincts
  worth a million?

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EXHIBIT A - COMMUNICATION AND NEGOTIATION SKILLS
A-Z

•  
•  
• A. "ACTIVE LISTENING" is the key to good
  communication!
•  
• B. Use outside consultants skilfully as
  "organizational symbols" who "take the BLAME" for
  necessary changes that MUST be introduced.
•  
• C. The objective of communication is to ensure
  that expectations and reactions are CONGRUENT.

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EXHIBIT A - COMMUNICATION AND NEGOTIATION SKILLS
A-Z

• D. Appreciate cultural DIFFERENCES. Many messages
  mean different things with different emotional
  consequences in different cultures!!
•  
• E. EMPATHIZE with the receiver/sender.

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EXHIBIT A - COMMUNICATION AND NEGOTIATION SKILLS
A-Z

• F. Seek continual FEEDBACK. Listen actively and
  accept, use and reward contributions from
  colleagues.
•  
• G. GO for trustworthiness, trust, empowerment
  and alignment. which build commitment and promote
  effective communication and delegation.
•  
• H. Seek assistance from others who may be
  HELPFUL prior to communicating - ignoring them
  may be an insult!!
• I. Clarify IDEAS before communicating them.

58
EXHIBIT A - COMMUNICATION AND NEGOTIATION SKILLS
A-Z

• J. Recognize PREJUDICE (sexual/racial/national/rel
  igious/age ... oneself too!) ... is everywhere
  ... and communicate accordingly.
•  
• K. Sometimes we all need a little KITA to improve
  our efficiency (doing things right) and
  effectiveness (doing the right things).
•  
• L. Accept that personal needs and survival are
  everybody's normal first priority regardless of
  what they say. Look for the four "L's" living,
  loving, learning and legacy.
•  
• M. Consistent MEANING - don't keep changing your
  message.

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EXHIBIT A - COMMUNICATION AND NEGOTIATION SKILLS
A-Z

• N. Recognize the cultural NORMS of the
  environment within which you communicate.
•  
• O. Examine your OBJECTIVES and expectations for
  each communication (facts? attitudes? feelings?)
•  
• P. PRACTICE what you preach because people judge
  you by your "action communication" (80) not
  merely your "word communication" (20).
•  
• Q. Recognize that failure to use "politically
  correct" terminology could lead to significant
  adverse reactions.
•  

60
EXHIBIT A - COMMUNICATION AND NEGOTIATION SKILLS
A-Z

• R. Good communication needs a "RELATIONSHIP" - to
  make it with a foreign speaker - make the effort
  to learn some of her/his language - even though
  you may work together in English.
•  
• S. Recognize that people are committed to change
  only in terms of their own personal SAFETY
  systems.
•  
• T. Remember that it is not only what you say but
  how you say it ("TONE") that determines the real
  effect of communication.
•  
• U. Remember that to be a successful manager and
  communicator it is just as necessary for you to
  UNDERSTAND other people's point of view, as it is
  for them to understand yours.

61
EXHIBIT A - COMMUNICATION AND NEGOTIATION SKILLS
A-Z

• V. Seek organizational culture not by complete
  control or complete freedom but by the third
  domain of interdependent commitment expressed in
  meaningful mission statements that respond to the
  needs and VALUES of all of the stakeholders.
•  
• W. Be very creative (brain storm) in seeking
  "WIN-WIN" solutions, by seeking out the magic
  "seven" alternatives for every problem.
•  
• X. And remember that every Napoleon theory (X)
  always perceives himself/herself to be a
  tolerant, benevolent, participative theory (Y)
  manager ...!!!
•  

62
EXHIBIT A - COMMUNICATION AND NEGOTIATION SKILLS
A-Z

• Y. Recognize that when a manager says she/he is
  "LOYAL" to the company", she/he is really saying
  "my personal needs are being satisfied by this
  organization and therefore I want it to survive".
•  
• Z. "Starters" achieve effective change but don't
  hesitate to replace them with "Runners" when the
  time comes.

63
 EXHIBIT B - PRACTICAL THINGS NOT TO DO IN
NEGOTIATION

•  
• Study the ideas in Exhibit B and recognize the
  ones which you have already learned after two
  whole days of AGL effort.
•  
• So please do not
•  
• Confuse cost and value.
• Accept concessions too easily.
• Be the first to make concessions on key issues.
• Offer a large concession early in the
  discussions, as it encourages
• the other party to ask for more.
• Give away important concessions under time
  pressure.

64
 EXHIBIT B - PRACTICAL THINGS NOT TO DO IN
NEGOTIATION

• Show too much enthusiasm when accepting
• concessions (winners curse)
• Accept future promises in exchange for valuable
  
• concessions.
• Assume that the other party values concessions
• the same way as you do.
• Suppose that the other party has similar
• priorities, needs, goals, and motivation.
• Trade concessions without first creating value

65
 EXHIBIT B - PRACTICAL THINGS NOT TO DO IN
NEGOTIATION

• Make concessions that affect the bottom line
• negatively.
• Claim value before creating value.
• Be arrogant when refusing a concession.
• Adopt a concession strategy that can be easily
• detected by the other party.
• Make quick decisions under time pressure.

66
 EXHIBIT B - PRACTICAL THINGS NOT TO DO IN
NEGOTIATION

• Give away information to the other party
• without reciprocity.
• Negotiate against yourself.
• Rush into concessions to satisfy the other
• party.

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LEARNING PATTERNS REVIEW

• Six Ps of effective negotiation
• Parties
• Process
• 
  Power
• Product
• Problem
• 
  Prognosis

68
FINAL NOTE

•  
• This ends our AGL program one of a six part
  series
•  AGL 1 - Finance for Non-Financial Managers
• AGL 2 - Cost Control
• AGL 3 - Planning and Budgetary Control
• AGL 4 - Capital Investment Analysis
• AGL 10 - Management of Working Capital
• AGL 20 - Negotiation
•  
• We hope it has inspired you to develop your
  skills by practical application. You are now
  ready to study the course text book which is
  excellent
•  
• Practical Solutions to Global
  Business Negotiations
• 
  (Cellich Jain)
•  

69
FINAL NOTE

• Thank you for your interest and hard work. Keep
  the glossary handy as a daily reference for
  finance and other negotiations. Follow up by
  doing sections 5, 6, 7 and 8 of eh Diary and
  giving feedback after the course.
•  
• We hope that you have much enjoyed the AGL
  experience and that it motivates you to read
  widely in finance and accounting and to continue
  your studies in the future. We suggest the The
  Economist weekly and the WSJ (Wall Street
  Journal) every morning - as good as an MBA!!!
•  
• Be sure to reinforce your learning with the all
  the activities set out in the Diary and with the
  LRT (Learning Recall Tape) routine, as explained
  by the organizer.
•  
•  

70
FINAL NOTE

• In the month following completion of the program.
  Please send us the Final Feedback Summary on day
  28.
•  
• We trust that you have found AGL to be both
  "efficient" (doing things right) and "effective"
  (doing the right things).
•  
• Thank you for being a member of the program.
•  
• RGAB
• drbobboland_at_hotmail.com
• www.crelearning.com
•  

71
END

• End of Summary Lecture 2