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Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013
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Rhett Weiss. Negotiating something from nothing TechChill Baltics, February12th, 2013

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    • 1. Negotiating Something from Nothing:David (Entrepreneur) Meets Goliath (Big Company)Rhett L. Weiss, J.D.Executive Director, Entrepreneurship & Innovation InstituteSenior Lecturer of Management, Johnson Grad. School of Mgt.Cornell University, Ithaca, New York USATechChill 2013, Riga, Latvia12 February 2013© 2013 Rhett L. Weiss. All rights reserved. 1
    • 2. Introduction: Presentation Overview• Goals • Help an entrepreneur negotiate successfully with “big players” • Think and act like a strong, conscientious negotiator without being big • But, know how a big player thinks and acts • Provide quick exposure to strategy components, process, and tactics • Warning: very high and quick orbit; short presentation (there is much more)• Content  My background  Typical entrepreneur’s view of negotiation  Strategy’s 3 Dynamic Parts  Sources of negotiation power  Tactics  Two strategy examples  Best practices: 5 traits, 5 dos, and 5 don’ts 2
    • 3. Introduction: RLW at a Glance• At Cornell – EII Executive Director; BR Suite, fellows program, events, other programming – Johnson Faculty: entrepreneurship, venture capital, & negotiations – Cornell Tech: Tech Enterprises course, executive educ’n center, + Technion Liaison• At Google – Strategic acquisition & development projects; Negotiated deals with PMs, CEOs – Conducted negotiation training worldwide• Pre- and Post-Google – Entrepreneur, innovator, “dealaholic” – Founded, co-founded: bulk mailing (Jr HS); DEALS® software (patent holder) & DEALTEK consulting, data center, commercial bank, RE dev., commercial fish farming – XM Satellite Radio, Orbital Sciences, Motorola, AOL, Oracle JV, & other deals – Boards of Directors; C-level positions; bank COO; boards of advisors; mentor – Consultant; former Big 4 director and national mgt. team; now, global consulting – “Recovering attorney”; corporate, business, finance, and real estate transactions – Presenter, author 3
    • 4. Hey Entrepreneur, does this look familiar? 4
    • 5. Q: How do you negotiate with big players? A: The same way you eat an elephant! 5
    • 6. One Bite At A Time. 6
    • 7. Negotiation Strategy’s 3 Dynamic Parts: Time, Power, & Info Information - 4 Types: Time  Known to all sides:  Available time to each parties; Internet/public -- industry, time constraints market, or company info  Timing strategy and tactics  Known only to your side Power - 7 Types: (YS) & can be disclosed to Time  Title other side (OS); vice versa  Reward/Punishment  Known only to YS but  Consistency cannot be disclosed to  Charisma OS; vice versa  Expertise  Needed but not yet  Situation possessed by one or  Information more sides David vs. Goliath Information Power 7 7
    • 8. Where does negotiating power comes from?Perception, Knowing Process, Confidence,Anticipation Having Strategy Ability to Act 8 8
    • 9. Negotiating Power 9 9
    • 10. The Negotiation Process Closing the Deal Making the Deal Setting the Stage Preparation 10
    • 11.  Reluctant  Flinching  Best offer buyer/seller Tactics:  Uproar (we want  Flinch; Grimace Set the Stage  The list it all)  Play dumb, act  Feel, felt, found  First offer smart  Trade-off  Funny money  Set aside  Good cop, bad cop  Splitting the  Decoy Tactics: difference Making the Deal  Higher authority  Red herring  Printed word  Squeeze  Nibble  Fait accompli  Withdrawn offer Tactics:  Set aside  Hot potato Closing the Deal  Turn down, walk  Throw away concession; away So what?Tactics: Entrepreneur can use them, too. And, they’re free! 1111
    • 12. Two Entrepreneurial Strategy Examples -- Example 1: Frame Disadvantages as Opportunities David’s Perceived Framed as … Goliath’s Opportunities Disadvantages … Limited Capital  Ready for Investment Lack of Experience  Open to New Ideas No Sales  Can Adapt/Modify Prototype Entrepreneur’s framing can shape larger party’s strategy and behavior for the negotiation’s duration. 12 12
    • 13. Strategy Example 2: Pit Big Players Against Each Other SoBe• Rivals can work against each other to their detriment and Entrepreneur’s benefit.• Entrepreneur with strong “Plan B” pressures rivals to make concessions. 13 13
    • 14. Best Practices: 5 Traits of an Effective Negotiator1. Understands and conducts negotiations as a process • A multilateral, interactive, and often iterative process to accomplish the goals of two or more parties2. Does the homework on a regular basis • Masters the issues & their interrelationships • Masters information and adapts to changes in it3. Maintains sensitivity and tolerance for interpersonal differences • Personality types • Nationalities, Cultures • Communication styles, methods, and content; notice the changes4. Emphasizes areas of agreement, not disagreement • Explains and substantiates own points5. Instills strong belief in OS that YS will uphold the deal • Shows integrity, reliability, and credibility 1414
    • 15. Best Practices: 5 Do’s1. Know your stuff – be on top of all sides’ facts, interests, and issues2. Be a great communicator ( = listener, not just talker) • Keep your side informed of all key negotiation communications • Communicate regularly but carefully with OS3. Consider own enthusiasm’s affect on concessions, agreements4. Be alert to pressure • All sides are under pressure to deal, settle, compromise • Generally, the side under the most real or perceived pressure "loses”5. “Keep your eye on the ball”: focus on movement, measure progress • Concessions and interim agreements • Statements, sometimes silence • Action, sometimes inaction 1515
    • 16. Best Practices: 5 Don’ts1. Dont assume money or price is the all-important deal point • After all, it probably isn’t2. Dont unnecessarily narrow your negotiating range or flexibility • When possible, don’t be the first side to make an offer or name a price3. Dont disclose your sides time constraints, deadlines, or pressures • . . . unless there is a compelling reason to do so4. Dont narrow the negotiation down to only one issue • Negotiations are so much easier with at least two issues in play5. Dont become emotionally involved or egotistical • Don’t get personal • It’s typically counterproductive, and it’s a lonely place 1616
    • 17.  Time/Timing Power: 7 types Information: 4 types Strategies & Tactics Best Practices: traits, dos, & don’ts Thoughts & Actions: Know how Goliath thinks but don’t act like Goliath 17
    • 18. Question or Comments? Please contact me! Rhett Weiss: rweiss@cornell.edu 18

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