Negotiation for China Week 1: Introduction and Getting to Yes, The Problem and Method I

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Negotiation for ChinaWeek 1 Introduction and
Getting to Yes, The Problem and Method (I)

• Webster/SUFE MBA
• 2008
• Jack Marr

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Ice Breaker

• Interview the person next to you
• Say their name, job, and find out what the most
  important thing they ever negotiated was
• Present BRIEFLY (under 1 minute) to the class

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Self Introduction

• In China on and off since 1994
• Advising Director, NYU Stern Shanghai
• Work experience in consulting (EIU Asia/
  McKinsey China/ venture capital) and government
  (State of Missouri Japan/China, US Consulate
  Shanghai)
• Many negotiations, international, China/ Japan/
  US/ European
• MA International Relations University of Chicago
• Teaching experience Webster Chengdu, CIEE,
  Sohpia Tokyo, SUFE long ago!
• Email any time with questions

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You Can't Always Get What You Want (1/2)

• Rolling Stones, The (m. jagger/k. richards)I
  saw her today at the receptionA glass of wine in
  her handI knew she would meet her connectionAt
  her feet was her footloose manNo, you can't
  always get what you wantYou can't always get
  what you wantYou can't always get what you
  wantBut if you try sometime you findYou get
  what you need

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But If You Try Sometimes You Just Might Get What
You Need (2/2)
You get what you need--yeah, oh babyI saw her
today at the receptionIn her glass was a
bleeding manShe was practiced at the art of
deceptionWell i could tell by her blood-stained
handsYou can't always get what you wantYou
can't always get what you wantYou can't always
get what you wantBut if you try sometimes you
just might findYou just might findYou get what
you need
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Negotiation for China Week 1 Introduction and
Getting to Yes, The Problem and Method (I)

• Introduction
• Getting to Yes The Problem
• Separating People from Problems

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Negotiation for China Week 1 Introduction and
Getting to Yes, The Problem and Method (I)

• Introduction
• Getting to Yes The Problem
• Separating People from Problems

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Class Introduction (1/5)

• Negotiation is the art and practice of
  effectively getting what you need from other
  people. As every negotiation has at least two
  parties, also trying to get what they need from
  you, skillful and successful negotiation will
  benefit from a set of tools and behaviors that we
  will learn and model in this class
• Types of negotiations? Parties?

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Class Introduction (2/5)

• Objectives
• Increase the scope and depth of the students
  knowledge and practice of the existing best
  practices in negotiation studies and examples
  from both a Chinese and global perspective.
• Expose students to different negotiations-related
  skills and behaviors.
• Increase students self-awareness through
  self-assessments designed to identify their
  preferred negotiation-related behaviors,
  attitudes, and styles.
• Develop students ability to analyze a variety of
  situations involving both effective and
  ineffective negotiation through a wide variety of
  cases.
• Allow students to practice negotiation in a
  controlled classroom environment.

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Class Introduction (3/5)

• Participation 30 This will be based on how
  active you are in class discussions, how well you
  respond in class discussions based on your
  readings, and on your performance on in-class
  negotiations
• Group Negotiations 35 In this case, you will
  work with a group to define two or more sides to
  a negotiation and then present and in-class
  negotiation and talk about how each side
  successfully or unsuccessfully solved the
  negotiation
• Final Examination 35  The final exam will be
  similar to the midterm consisting of questions
  based on the readings and lectures throughout the
  course. Finally, you will be asked to think about
  and create a negotiation case in which you will
  be assessed on your ability to define and grasp a
  real life negotiation problem in a specific
  business context and use your knowledge from the
  course and outside to build a dynamic,
  implementable solution to the problem.

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Class Introduction (4/5)
Course Schedule
Course Schedule
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Class Introduction (5/6)

• Absence More than 3 lose one letter grade
• PLEASE let me know in advance by email including
  the reason. If absent, do readings and look at
  slides
• Questions?
• Early syllabus related negotiations???

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Negotiation for China Week 1 Introduction and
Getting to Yes, The Problem and Method (I)

• Introduction
• Getting to Yes The Problem
• Separating People from Problems

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Getting to Yes The Problem (1/6)

• Compromise Giving away something you want in a
  negotiation in order to ensure you get something
  you need
• Concession Giving away something you need in a
  negotiation in order to continue negotiating

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Getting to Yes The Problem (2/6)

• People see two ways to negotiate soft or hard.
  The soft negotiator wants to avoid personal
  conflict and makes concessions to reach the
  agreement. He wants amicable resolution but often
  ends up feeling exploited and bitter.
• Examples Jimmy Carter. Michael Gorbachev.
  Hiroaki Shino. Others? Why are they not fully
  successful?
• The hard negotiator sees any solution as a
  contest of wills in which the side that takes the
  more extreme positions and holds out longer fares
  better. He wants to win, yet he often ends up
  producing an equally hard response which exhausts
  him and his resources and harms his relationship
  with the other side.
• Examples Hitler. GW Bush. Jeff Skilling. Again,
  why did their lack of transformation eventually
  lead to their downfalls?

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Getting to Yes The Problem (3/6)

• New Solution Based on Two Plus Two Equals Five
• If we are all happy there are no losers. However
  if we all win, there are an equal number of
  losers
• Game Theory!!!!!!!!!!!

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Getting to Yes The Problem (4/6)
X
?
X
O
O

• Case
• Split into groups of two. Use a piece of paper to
  play as many games of tic tac toe as possible in
  2 minutes. Score the results.

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Getting to Yes The Problem (5/6)

• Three criteria for good negotiation wise,
  efficient, and improve or not damage relation
  (can include destroy)
• Position 20 RMB for the T-Shirt. No more.
• Positional negotiating produces mechanical
  solutions (yes/no, overfocused on details,
  missing areas for common ground)
• Inefficient makes people focus on one strategy
  instead of looking for others, worse with many
  parties
• Becomes contest of wills
• Being nice invites hardball or missed solutions.

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Getting to Yes The Problem (5/5)

• Method, based on win/win
• Separate the people from the problem
• Focus on interests, not positions
• Invent options for mutual gain
• Insist on using objective criteria
• Special applications

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Negotiation for China Week 1 Introduction and
Getting to Yes, The Problem and Method (I)

• Introduction
• Getting to Yes The Problem
• Separating People from Problems

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Separating People From the Problem (1/6)

• A Working relationship where trust,
  understanding, respect, and friendship are built
  up over time can make each new negotiation
  smoother and more efficient On the other hand
  when people get angry, depressed, fearful,
  hostile, frustrated, and offended, they will
  often confuse their perceptions with reality.
  Misunderstandings can reinforce prejudice and
  produce counterreactions in a vicious cycle

• Missouri online banking case. What about personal
  
• cases?

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Separating People from the Problem (2/6)
Communication (Sides A/B/etc.)
Emotion (Side B)
Perception (Side A)
Emotion (Side B)
Perception (Side B)

• Always start by asking Am I paying enough
  attention to the people problem?
• Positions can either be seen as a personal attack
  why didnt you do that? or in not focusing on
  your interests can make you seem weak
• How to get over?

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Separating People from the Problem (3/6)

• Perceptions Understanding the other sides
  thinking is not simply a useful activity that
  will help you solve the problem. It IS the
  problem.
• Most quarrels over an object or an event, becomes
  tied to person
• Put yourself in their shoes! See the problem as
  they see it.
• Understanding is not the same as agreeing with it
• Dont assume they mean the worst.
• Dont blame them for your problem
• Discuss others perceptions and emphasize areas
  of agreement. Recent India EIU negotiations
• Change their perceptions! John Sexton and hugs.
  My former moral philosophy professor. North Korea
  six party talks. Hu Jintao and Olympics. Other
  examples?
• Keep them involved in the process
• Face saving do not underestimate. Dragging on to
  look tough. Example of two judges writing a
  ruling, not two adversaries playing a game.

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Separating People from the Problem (4/6)

• Emotions first recognize and understand
  emotions. Are you nervous? Are you angry? Write
  down what you feel
• Both the other side and your and their
  constituents have emotions. Map these as well.
  Framework (next chart)
• Constituentgtgtgt Emotiongtgtgt Underlying Reasongtgtgt
  Possible Solution
• Make emotions explicit and acknowledge them. ASK
  the other side
• Allow other side to let off steam. Dont blow
  them off
• Dont react! Examples of effective negotiators
  who stay calm Churchill, Bill Gates, others?
• Apologize! It costs nothing (but be sincere)

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• Mapping Constituents Who Are They and What
  Motivates Them?

Regulators (Overall picture/ Look good)
Owners (Profit)
Boss (Profit/ obedience)
Customers (Price/ Service)
Negotiator
Competitors (KYA)
Family (Recognition)
Subs (Money/ PMP)
Suppliers (Profit/ PMP)
Community (recognition)
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Separating People from the Problem (5/6)

• Communication Whatever you say, expect that the
  other side will almost always hear something
  different
• In negotiations, often given up and talking only
  to impress third parties or own constituencies
• LISTEN to what they are saying now instead of
  thinking what you will say next. TAKE YOUR TIME!
• US Hostages in Iran I am a mediator to work out
  a compromise!
• Reiterate what is being said. Paraphrase with
  Did I correctly understand that you are saying
• Speak to be understood, negotiation not a debate
• Speak about yourself and your own emotions. They
  are all you can really own.
• Build a working relationship, often informal

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Separating People from the Problem (6/6)

• Case Split into teams of 4. Spend 10 minutes
  discussing from your experience the most
  difficult negotiations you have ever been
  involved in it will be better to pick a failed
  one if possible. Separate the people from the
  problem as follows
• Negotiator/Constituent (1) Perceptiongtgtgt
  Emotiongtgtgt Underlying Reasongtgtgt Possible
  Solution. Actual solution. What went wrong?
• Negotiator/Constituent (2) Perceptiongtgtgt
  Emotiongtgtgt Underlying Reasongtgtgt Possible
  Solution. Actual solution. What went wrong?
• Negotiator/Constituent (3) Perceptiongtgtgt
  Emotiongtgtgt Underlying Reasongtgtgt Possible
  Solution. Actual solution. What went wrong?
• Describe situation and present to class for three
  minutes minutes

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• Next Week
• GTY pp. 42-84