negotiation

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Session3StrategyTacticsandEthics.pptx
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Tactics and strategies: ethical or not?

BCO 313 Negotiation [email protected]

Summative (Mid-term + Final = Course grade)

Formative: doing these assignments, seeing what others have shared and reflecting will make the MT and Final assignments a LOT easier and your will remember the ‘lessons’ i.e the outcomes of this course (and apply them) for life

Formative Assignments are NOT graded. Why do them? : because they help you do better summative assessments and they help you learn more

1 or 2 time-consuming but interesting (presentations: research, reflect, apply and share; readings: read-summarize and share)

the rest? very 21st century, very agile: search and share (e.g video clips); comment on what has been shared, share and compare

A word about assignments …

I consider you are ‘present’ if you do at least two of the following:

Participate online, in time (no more “at home, but the lights are not on”)

Write to me if you have attended/are intending to attend “online later” and have a suggestion or a doubt

Share and contribute in forums

Comment on the contributions of others

Remember, I can check what you are doing and how often

A word about attendance

Goals, strategy and the planning process.

A sampling of ethical quandaries and focus on ethics, ethical

Game Theory and other negotiation theories.

Competitive and co-operative tactics

Reasoning and conduct as well as ethical tactics such as deception

Perception, Cognition, Emotion and Communication

Perception, framing and cognitive biases in negotiation as well as mood and emotion.

Basic communication models.

What and how people communicate.

Improving communication and special considerations in negotiation.

Intuition, read the mind, guilt and innocence

Negotiation Strategy: Planning and Ethics: AGENDA

Golden Rule:

Do unto others as you would have them do unto you

Universalism:

People are not to be used as a means to an end

Utilitarianism:

Do the greatest good for the greatest number of people

Distributive Justice:

Everyone is better off because of this act

What are ethics? Which rule do we follow and when?

Lies

Puffery

Deception

Weakening the opponent

Strengthening one’s own position

Nondisclosure

Information Exploitation

Change of mind

Distraction

Maximization

Why are these tactics ‘questionable’?

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Trade Offs

Bundling; or Settlement brochures and video presentations

Bluffing, Puffery

Boulwareism : “best offer/take it or leave it”

Br’er Rabbit: reverse psychology

Mutt and Jeff (Good cop, bad cop):

Belly up

Passive-aggressive

9. Puppy Dog Technique

10 Threats and promises

11. Limited authority/Higher authority

12. Uproar

13. Feel felt found

14. Dumb is smart, smart is dumb

15. First offer

16. Disclosure

17. Walk away

18: Cherry-picking

Formative Assignment: Tactics: Ethical?

[email protected]

Which tactics were used?

Were they ethical?

Watch – 8m

3m https://youtu.be/lMA48vIxajE

5m https://youtu.be/ZtpN5VKdAOM

Video clips Ari Gold + Adam Sandlar

Unbundle the items

Establish you bargaining range

Investigate the ZOPA of both parties

Identify what leverage you/they might have and when you/they can ‘give up/in’

More strategies?

BASICS

Remember your BATNA

Anticipate the other partry’s wants and needs (their BATNA=?)

Remember to separate the issues from the people

Look for common ground (you probably agree on a very high %)

Identify the decision maker

When ‘stuck’ on one item, move back to or remind the other party of the items you agree on

What strategies can we use to deal with tactics?

Never Say “Yes” to Their First Offer

Ask For More Than You Expect to Get

Bracket Your Objective

Options give you power; remember that

Flinch at the Other Side’s Proposal

Play Reluctant Buyer (Listen to the proposal and ask questions – thank them for their time and say that it’s not exactly what you were expecting/wanting – as they are leaving, say ‘just to be fair, what is the best deal you could give us?’

The ‘vise’ technique: say ‘you’ll have to do better than that’ … silence; the first party to talk loses

But do be prepared to ‘make a second effort’

Ethical? from Secrets of Power Negotiating 3rd ed – Dawson, Roger (2010) Career Press

Make sure concessions get smaller and smaller

Patience is a virtue

Save face (yours or others’): Add an ‘extra’ (nibble) at the end to get the log rolling

Be aware when they are ‘nibbling’

Resort to ‘higher authority’ to gain time and perspective

Do not offer to ‘split the difference’ (let them do that)

When stuck, ajourn and move on to ‘easier issues’

Don’t let others give you their problems (aka “hot potato”)

When asked for a small concession, ask for something in return

Look out for “Good cop, bad cop”

Be prepared to “Walk away”

Call in a mediator?

More ethical strategies?

Secrets of Power Negotiating – 3rd Edition Dawson, Roger2010 Career Press

https://www.youtube.com/watch?v=WyS2LOIxG-M AND/OR

https://www.youtube.com/watch?v=7YX3dGs4yX0

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Negotiation decoy (too many items) Q: Prepare. Check Honesty? Determine that, rank the priority together

Extreme Offers: check the culture of the other party; don’t ‘lose’ it

The closing Nibble: probe, check the reasoning, flinch

Cherry Picking: focus on principles of trading, concessions and long-term relationships

Flinch … enquire “I notice you seem disappointed. What were you expecting?”

Good cop, bad cop: call them out?

Higher authority: ask how much leeway they have

Competition: focus on your usp

Deadlines; limits: ask about consequences; propose two steps

Take it or leave it: are they bluffing?

http://www.calumcoburn.co.uk/articles/negotiation-tactics/

Can you neutralize manipulative techniques? How?

Confidence not overconfidence

Set the stage; early rapport

Ask open-ended questions

Bring ‘the elephant into the room’

Listen and restate what you have heard (check for meaning)

Oberve nonverbal communication

Stay cool

Depersonalize disagreements

Separate the discussion of issues from the search for solutions

No ultimatums

Bring in facts, data materiasl to support your case

Use leverage

Ethical strategies

Scenario:

GROUP A: Seller: you are head of sales for a holding which manufactures/organizes the manufacturing of fashion items. You need to check a few details with the buyers (a big customer you cannot afford to lose)

GROUP B Buyer: you are a purchasing officer for a chain of retail fashion stores. Your notes regarding the negotiation with the seller are not clear. The seller is trustworthy and has an excellent record regarding quality and delivery times

Who is who?:

From the list of students currently in class, the order is Seller/Buyer, Seller/Buyer

The briefs are in files (to be opened now) If you have any doubts there is a Buyers forum and a Sellers forum

You have 5m to prepare and 10m to negotiate (via moodle, Whatsapp, whatever)

Your turn! 10m

Go for the total amount? (remember your commission)

Was the negotiation more integrative or distributive?

Bluff?

Cherry pick?

Bundle?

Create new solutions?

Feel ok with the result?

Check that the other party was ok?

Apply ethics?

How did the negotiation go? Did you…?

Distributive Justice

Golden Rule

Universalism

Utilitarianism

Do the greatest good for the greatest number of people

Do unto others as you would have them do unto you

Everyone is better off because of this act

People are not to be used as a means to an end

What are ethics? Which rule is which?

1=c, 2= b, 3= c, 4= d

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Pending Formative Assignment: READING

Read, summarize and share the key ideas in a forum (suggested format =ppt)

Comments? Questions?

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