Negotiation Preparation

Negotiation Preparation

You are one of the partners at PM508 Solutions, a world class consulting firm with in the field of project management. The company has grown to 30 people and has caught the attention of one of the larger players in the arena, the Philadelphia Consulting Group (PCG). They have approached your team about a possible merger. The prospects are interesting for a variety of reason so a letter of intent has been signed by both parties.

You have taken on the assignment to lead the negotiations for PM508. The management team has expressed some clear concerns including:

·         PCG has a more aggressive approach to client relations which PM508 believes would turn off their current clients.

·         PM508 is very proud of its unique approach and does not want to lose this when merging with PCG

·         PM508 management has a policy of supporting regional community organizations and devotes 5 to 10% of employee time to community and charity activities. PCG has a reputaiton for being a highly intense place to work with little time allowed for outside activities. PM508 believes that this community participation is good for morale, provides a forum for trying new ideas and helps generate networking contacts which generate sales.

·         PM 508 wants to retain some brand identity

·         The PM508 management worked hard to be the top dogs intheir field and does not want to feel like just another employee in this large consulting company.

Other issues are also out there. You're job includes determining (creating) other issues that are important to the PM508 team in the negotiation.

Lay out an outline of what you and your team should have prepared before walking into the negotiation. Complete the preparation material.

This should include but not be limited to:

·         Your BATNA

·         Your evaluation of their BATNA

·         Determination of your interests (not positions)

·         Best determination of the other party's interests

·         Some starting ideas on how to meet everyone’s' interests

·         Some ideas for setting objective criteria (go beyond the negotiated price in monetary terms)

·         Agenda for first meeting