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NegotiatingNegotiatingAcrossAcrossBordersBorders

Catherine Lee, Catherine Lee, clee@cdlassociates.comwww.cdlassociates.comwww.cdlassociates.com

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Objectives

To present a process for To present a process for preparing a negotiationpreparing a negotiation

To delineate the impact of To delineate the impact of behavior on outcome and behavior on outcome and how to manage your behavior how to manage your behavior to influence across cultures.to influence across cultures.

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Harvard Business Review

““If you donIf you don’’t negotiate for t negotiate for your salary, they walk away your salary, they walk away happy that they paid you happy that they paid you less, but wonder why less, but wonder why they hired you.they hired you.””

— — Hannah Riley Bowles Hannah Riley Bowles and Kathleen McGinnand Kathleen McGinn

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Power

““All power is based on All power is based on perception. If you think youperception. If you think you’’ve ve got it, then yougot it, then you’’ve got it. ve got it.

If you think you donIf you think you don’’t have it, t have it, even if you have it, then you even if you have it, then you dondon’’t have it.t have it.””

— — You Can Negotiate Anything, You Can Negotiate Anything, Herb CohenHerb Cohen

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Trust

TRUST = CONFIDENT TRUST = CONFIDENT EXPECTATIONSEXPECTATIONS

What builds Trust?What builds Trust?

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Trust

Two Essential Ingredients for Two Essential Ingredients for Initiating TRUSTInitiating TRUST

VULNERABILITYVULNERABILITY CONSISTENCYCONSISTENCY

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Influence

How can you move someone in How can you move someone in your direction?your direction?

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Perspective Taking—Whose Point of View

MotivationsMotivations Questioning:Questioning:

What, How, What, How, and Why?and Why?

NeedsNeeds OptionsOptions

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Getting the Mandate:The Negotiation ProcessExternal Negotiation

ImplementationNeed

Internal Negotiation

CollectData

CollectData

Sell Agreementto

Mandate Team

Sell Agreementto

Mandate Team

Plan/Strategize

Plan/Strategize

GetMandate

GetMandate

ValidateNeeds and

Wants

ValidateNeeds and

WantsManage

Behaviors

ManageBehaviors

MaintainCollaborative

Climate

MaintainCollaborative

ClimateSecure

Agreement

SecureAgreement

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Process for Preparationof a Negotiation

Five Steps in the Preparation ProcessFive Steps in the Preparation Process

1.1. Determine the objectiveDetermine the objective

2.2. Identify and rank the issues –Identify and rank the issues –yours and theirs yours and theirs

3.3. Set the parametersSet the parameters

4.4. Develop your strengthsDevelop your strengths

5.5. Brainstorm alternativesBrainstorm alternatives

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1. Determine the Objective

Expectations of outcome —Expectations of outcome —

What will you walk away with?What will you walk away with?

Specific results neededSpecific results needed

Short term results placed in Short term results placed in

long term planlong term plan

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2. Identify and Rank Issues

List all issues List all issues

Assign priorities to issues Assign priorities to issues

Determine which are negotiable and Determine which are negotiable and

which are non-negotiablewhich are non-negotiable

Decide which are Decide which are ““mustsmusts”” vs. vs. ““wantswants””

Identify other partyIdentify other party’’s issues and s issues and

prioritiespriorities

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Determine range vs. fixed targetDetermine range vs. fixed target

Where to startWhere to start

When to walk or closeWhen to walk or close

3. Set Parameters

Fixed TargetBest WorstTarget

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Aspiration Levels

Is there a relationship between Is there a relationship between aspiration levels and success?aspiration levels and success?

1.1. Finding:Finding: Persons with higher Persons with higher aspiration levels won awards. aspiration levels won awards.

2.2. Finding:Finding: Skilled negotiators Skilled negotiators with high aspiration levels were with high aspiration levels were big winners regardless of whether big winners regardless of whether they had power.they had power.

Is there a relationship between Is there a relationship between aspiration levels and success?aspiration levels and success?

1.1. Finding:Finding: Persons with higher Persons with higher aspiration levels won awards. aspiration levels won awards.

2.2. Finding:Finding: Skilled negotiators Skilled negotiators with high aspiration levels were with high aspiration levels were big winners regardless of whether big winners regardless of whether they had power.they had power.

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Aspiration Levels (Cont’d)

3.3. FindingFinding:: Persons with high Persons with high aspirations were winners in aspirations were winners in every case where they opposed every case where they opposed low aspirants. It did not matter low aspirants. It did not matter if they were unskilled or had if they were unskilled or had less power.less power.

— — The Negotiating Game,The Negotiating Game,Dr. Chester L. KarassDr. Chester L. Karass

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Russian Proverb

““There are two fools in every There are two fools in every market: One asks too little, market: One asks too little, one asks too much.one asks too much.””

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You benefit from knowing your own You benefit from knowing your own

strengths by being able to:strengths by being able to:

Offer viable options.Offer viable options.

Know what concessions can be made.Know what concessions can be made.

Leverage better for what you need.Leverage better for what you need.

Strategically plan timing, order of Strategically plan timing, order of

priority, and concessions.priority, and concessions.

4. Develop Your Strengths

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5. Brainstorm Alternatives

As many alternatives as possibleAs many alternatives as possible

Brainstorm options for each issueBrainstorm options for each issue

Valuable to other sideValuable to other side

Power in number of alternativesPower in number of alternatives

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“The Art of War” by Sun Tzu

First RuleFirst RuleAvoid WarAvoid War

Second RuleSecond RuleOffer OptionsOffer Options

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LogicLogic

Is NotIs Not

PersuasivePersuasive

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Behaviors in Negotiating

BehaviorsBehaviorsMotives Intentions Beliefs Perceptions Attitudes Personality

Feelings

Observable behaviors— what a person says and does— reveal only 10% of who that person is.

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Negotiating Behaviors: Creative Problem Solving

Negotiating BehaviorsNegotiating Behaviors Business Impact

Interpersonal Impact

Open & Honest

Increases Clarity

Irritates

Antagonizes

Increases Risk

Seen as Unwilling

Builds TrustCreates Open

Climate

Stalls Negotiation

Reduces Trust

Less Chance to Agree

Complicates

Express Feelings

Behavior Alert

Indicate Disagreement

Rankle

Attack

Reason Overload

Counter

Express Feelings

Behavior Alert

Indicate Disagreement

Rankle

Attack

Reason Overload

Counter

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Influencing Behaviors: Valuing Differences

Interpersonal Impact

Influencing BehaviorsInfluencing Behaviors Business Impact

Perceived Interest in Others

Listening

Reinforcement

Builds a Foundation

for Trust

More HarmonyBetter Solutions

Reduces Error

Improves Quality

Maintains Relationships

Ask

Probe

Acknowledge

Clarify

Summarize

Build

BehaviorAlert

Ask

Probe

Acknowledge

Clarify

Summarize

Build

BehaviorAlert

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Behaviors to Use and Avoid

UseUse Clarifying Clarifying

and Summarizingand Summarizing

Requesting InformationRequesting Information

Expressing FeelingsExpressing Feelings

Behavior AlertBehavior Alert

(Except Disagreeing)(Except Disagreeing)

AvoidAvoid RanklersRanklers

CountersCounters

AttackingAttacking

ReasonReason

OverloadOverload

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Building ModelOptions for handling ideas:Options for handling ideas:

Suggestion

Yes No

Support Disagree

AgreeAgree??

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Building ModelOptions for handling ideas:Options for handling ideas:

Suggestion

Yes No

Support Disagree

AgreeAgree??

Build Counter

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Building ModelOptions for handling ideas:Options for handling ideas:

Suggestion

Yes No

Support Disagree

Find Flaw

Patch Flaw

AgreeAgree??

Build Counter

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John Wayne is Dead

Most Difficult NegotiatorsMost Difficult Negotiators Our Side and their sideOur Side and their side Straightforward vs. Silent TypesStraightforward vs. Silent Types Empathy with questions.Empathy with questions. Value the differenceValue the difference

Recommended Reading

The New Rules Of The New Rules Of International Negotiation: International Negotiation: Building Relationships, Earning Building Relationships, Earning Trust, And Creating Influence Trust, And Creating Influence Around The WorldAround The World

Catherine M. Lee Catherine M. Lee

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