Effective Negotiations [BE II Course Lecture]

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Lecture Slides for student access and assignment reference from Business Negotiations , Tunghai University, Taichung, Taiwan by SAV

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  • Closed body posturesTurn back on partner, Andrew.Shows inadequate preparation; each have different agenda’s and priorities.Host should typically make introductions but don’t.Version 2: Closer, shows teamwork, preparation as they work well together.Franqoise involves everyone in the introduction.Aready talked about strategy
  • Version I: Andrew lack of eye contact, overreliance on equipment, lack of flexibility Audience is also restless, anxious.
  • Military commandersFiremanAirplane pilots: were running a little low on fuel….Avianca prior to crashing in new york.Indirect, political, time of grieving, age, status.
  • Version 2Francois questions are more reflective (thinking)Shows that she is genuinely listening to KarenReflective questions help to clarify for everyone what is being said.Helps to find “Common Ground”…a solution.
  • Take class survey, point out differences even within our little world.
  • Optional exercise for small classes that finish the first two – advanced.
  • Collaboration versus already made up minds.
  • Effective Negotiations [BE II Course Lecture]

    1. 1. Steve Varela<br />Professor of International Business<br />© 2009 – All Rights Reserved<br />Effective Negotiations<br />
    2. 2. WELCOME!!!!!!<br />      “Tell me and I'll forget; show me and I may remember; involve me and I'll understand.” <br /> -Chinese Proverb<br />
    3. 3. Business English Negotiations<br />Welcome<br />Instructor<br />Index Card: Number + English_Name + Email<br />Personal Info, work experience, academic focus, goals for this course, travel/overseas experience, sales and/or negotiation experience.<br />Individual Student Introductions<br />Today’s Agenda: <br />Preview of Course<br />Pair’s and Group’s<br />Question of the day<br />Chapter 1<br />Textbook: Effective Negotiations by Jeremy Comfort,<br />Oxford University Press , 2007<br />
    4. 4. Syllabus<br />
    5. 5. A word on Activity Based Learning<br />Left side is Old World method, Didactic.<br />Right is CollaborativeLearn from each other <br /> Students are more active…understand more<br />“Tell me and I'll forget; show me and I may remember; involve me and I'll understand.” <br /> -Chinese Proverb<br />
    6. 6. Course Preview: A Chapter Every Two Sessions<br />Preparing the “Ground” (Introductions, goals, place)<br />Setting the Agenda (Negotiate what you will negotiate)<br />Establishing Positions (What you want or have)<br />Clarifying Positions (Check understanding)<br />Managing Conflict (How to criticize)<br />Proposals (Creating solutions)<br />Bargaining (Exerting pressure)<br />Conclusion& Agreement (Follow-up, implementation)<br />
    7. 7. Typical Chapter Activities (8)<br />Session 1:<br /> Topic Introduction & DVD Clip<br /> International Culture & Tactics<br /> Language Focus<br />Session 2:<br /> Negotiating Practice<br /> Group’s (4) and Pair’s (2)<br />
    8. 8. Evaluation Criteria<br />Activity Based Learning…Participation is key to Success!<br />34% of final Grade depends on Class Participation<br />Midterm Essay or Simulation (Chapter 4)<br />33% of Final Grade<br />6-8 Sentences or 5 minutes<br />Final Exam – Negotiation Simulation<br />5 Minutes <br />Video Taped / Analysis<br />33%<br />
    9. 9. Question of the Day (Graded Exercise)<br />At the start of each chapter, one group answers the first two communication skills questions at the start of the class.<br />List question on blackboard & present your answer to the class. 5 Minute Limit.<br />Have ready before the class begins.<br /> i.e. Chapter 1 = Group 1, Chapter 2 = Group 2…<br />
    10. 10. Questions???<br />
    11. 11. *****Session 2****<br />
    12. 12. Chapter Introduction Question<br />Group 1<br /> Present the Answer/Commentary to the First 2 questions of Chapter 1.<br /> … Group1.<br />
    13. 13. Preparing the Ground<br />A negotiation is a meeting in which both parties need each other’s agreement to reach a specific objective.<br />Various Types of Negotiations<br />Internal / External<br />Long / Short<br />Formal / Informal<br />What is your Goal?<br />
    14. 14. Video Negotiating Context: Preparing the Ground<br />Okus IT<br />Andrew is the Export Sales Manager, he made the initial contact and knows Sean.<br />Karen is the project manager. She made the contract specifications and this is her first international negotiation. She is anxious.<br />Levien<br />Francoise: is the IT Manager, she is ready to be promoted to Logistics Head. She is keen that her team (employees) are protected.<br />Sean: is from Levin’s Chicago office. He was sent to Brussels to develop Levin’s procurement policy.<br />Situation: Andrew and Karen have arrived at Levin’s Brussels office to meet Françoise and Sean<br />
    15. 15. Preparing the Ground<br />Version 1:<br /> Watch their body language with no sound?<br /> What problems do you expect?<br />Version 2:<br /> Body language…<br /> Introduction differences?<br />EN Chapter 1 Version 1.avi<br />EN Chapter 1 Version 2.avi<br />
    16. 16. Preparing for a Business Negotiation (p.68)<br />Objectives: best, worst, bottom line<br />Strategies: main areas, sticking points, best order for discussion, concessions<br />Roles: who is responsible, skills of team members, the other team<br />Communication: maintain positive communication, note taking, who asks questions? Who is the Chair?<br />
    17. 17. Chapter 1: Preparing the “Ground”<br />Culture and Tactics<br />Work in Pair’s<br />Read “Task Oriented” or “People Oriented” <br />Present a summary to your partner (pair)<br />15 Minutes….<br />
    18. 18. Chapter 1: How Do You See Yourself?<br />I Istart my day with a list (to do)<br />ii I start my day with a chat (talk)<br />I Idon’t let personal feelings influence decisions<br />ii I consider human angle first<br />i Friendship is not important if good job at work<br />ii It is important to like people I work with<br />
    19. 19. How Do You See Yourself? (p.2)<br />i A meetings only purpose is to get things done<br />ii Meetings are opportunities to develop relationships<br />I I feel end of day frustration if my list not finished<br />ii I feel “low” (sad) if have not got on with my colleagues<br />Scoring: 2 Points for every i<br /> 0 Points for every ii, <br /> 1 Point for every neither<br />
    20. 20. What’s your score?<br />6-10 Points = Task-Oriented<br />4-5 Points = Balanced<br />0-3 Points = People – Oriented<br />Neither is better<br />Lets us know who we are and what to plan for.<br />
    21. 21. Language Focus<br />Formal <br />Welcoming<br />On behalf of…<br />I’m very glad to welcome you<br />It’s a pleasure to see you here<br />Introductions<br />This is…He’s in Charge of…<br /> He’s responsible for...<br />He is our President/Director<br /> In-Formal<br />Welcome to<br />Thank you for coming<br />It’s nice to be here<br />Let me introduce you to…<br />Have you met…?<br />
    22. 22. Language Focus, (p.11)<br />Formal<br />In-Formal<br />How are you?<br />Great to see you again!<br />Starting the Negotiation<br />I was wondering if I could start by saying…..<br />Were short of time, so lets get started<br />We’ve got a very full agenda, so perhaps we’d batter get down to business.<br />Greetings<br />How do you do<br />Nice to Meet You<br />Small Talk<br />Did you have a good trip?<br />How was your flight<br />Is this your first visit to…<br />
    23. 23. Next Session:<br />Practice Negotiating!!!<br /><ul><li>Use Checklist P. 68, #9 to prepare the following:</li></ul>Objectives<br />Strategies<br />Roles<br />Communication<br />Speaking Practice #4 in class, p.12<br />Pair Work & Group Work 1, Neg. 1 & 2, p.13<br />
    24. 24. Negotiation Checklist<br />Objectives<br />Strategies<br />Roles<br />Communications<br />
    25. 25. Questions???<br />Prepare for Negotiation #1…<br />
    26. 26. Negotiation #1 (p.13)<br />Group up…work in pairs (2)<br />Use checklist to prepare and then negotiate the sale/purchase of the car<br />15 minutes.<br />
    27. 27. Group Work 1: Negotiation 1<br />Two want a ban on smoking<br />Two want free smoking<br />Use Checklist and Negotiate<br />Be prepared to discuss what happened to the class.<br />15 minutes.<br />
    28. 28. For next Session…<br />Chapter 2: Setting the Agenda<br />Read: pages 16-20.<br />Read: Video Transcripts Unit 2 (version 1 & 2)<br />Do Questions:<br />#7 & 1 on p. 17,#2 p. 18, #3 on p. 19, & #4 on p. 20<br />Review: Negotiating Practice, Negotiation #1, p.22<br />Group 2 does Q1 “Chapter Introduction Presentation”<br />
    29. 29. Feedback<br />Any questions????<br />Visit my office anytime:<br />#M615B OR email.<br />
    30. 30. Welcome Back!<br />Chapter 2: Setting the Agenda<br />
    31. 31. Question of the Chapter<br />Chapter2<br /> Present the Answer/Commentary to the First question of the Chapter (2).<br /> …Group2.<br />
    32. 32. Setting the Agenda<br />Some basic negotiations have only one point of discussion<br />Others are more complex<br />…But all need a sense of direction, a clear understanding of the objectives and a plan<br />…often, the Host is responsible for Chairing or controlling the negotiation.<br />
    33. 33. Video Negotiating Context: Agenda<br />Okus IT<br />Andrew ready to present opening presentation<br />Karen expects Francoise to set the agenda<br />Levien<br />Francoise worried about protecting her staff’s jobs<br />Sean: wants to establish a clear and strong negotiating position<br />Main Issues (aspects): <br />Who is in control,who is Chairing here???<br />
    34. 34. Video: Roles of Chairperson, Agenda & Procedure<br />Version 1<br />What do you expect to happen in the first stage of the negotiation?<br />EN_Chapter_2_Version_1a.avi<br />What went wrong?<br />Now, half focus on Levien side other half on Okus side<br />EN_Chapter_2_Version_1a.avi<br />Version 2<br />EN_Chapter_2_Version_2.avi<br />How about Francois’s new performance?<br />Now, lets identify the checklist steps…<br />EN_Chapter_2_Version_2.avi<br />
    35. 35. Setting the Agenda (p.71)<br />Introduction: Who present? Roles?<br />Purpose/Objectives: Shared Expectations and Critical Issues<br />Agenda Structure:How to Start and Finish the meeting?<br />Procedure/Process: Will there be a Chair? Questions at end/during? Minutes?<br />
    36. 36. Chapter 2: Setting the Agenda (p.17)<br />Culture and Tactics<br />Work in Pair’s<br />Read “Universalist” or “Particularistic” <br />Where do you fit? More Univ. or Part.?<br />What are advantages of each?<br />Universalist<br />One correct way<br />Follow same procedure always<br />Particularist<br />Adapt to each situation<br />Process is customized<br />10 Minutes<br />
    37. 37. What are the Advantages and Disadvantages of each?<br />Particularistic<br />Universalistic<br />
    38. 38. Identifying Working Cultures (Which is Which?)<br />Crantons Engineering: old fashioned engineering firm run along traditional lines<br />Gilson, Merritt & Partners: Management Consulting, young and dynamic<br />ATZO: Large chemical multinational; merger of German and Italian companies; Bureaucratic, Unresponsive<br />COMinternational: Medium sized financial services firm; reputation for financial management and control systems. Young CEO<br />
    39. 39. Your Working/Studying Culture Experience<br />Universalistic<br />At your job/school, which style is commonly used?<br />Examples???<br />Particularistic<br />
    40. 40. Break …<br />
    41. 41. Language Focus<br />Objectives<br />Were here today to…<br />The main objective/purpose of today’s..<br />Were looking to achieve<br />Agenda<br />We’ve drawn up an agenda<br />Lets just run through the agenda<br />There are a number of items on the agenda<br />I’d like to take that first<br />We’ve put that Last<br />
    42. 42. Timing<br />That gives us two hours<br />It will take two hours<br />It won’t be long<br />I need to be away by…<br />Roles <br />…is going to sit in<br />…is going to take the minutes<br />…would like to say a few words<br />…you’re going to give us a presentation<br />Procedure<br />We’ll deal with that ….last/first/tomorrow<br />We’ll go round the table<br />We’ll have a question and answer at the end<br />We can table that for discussion later<br />
    43. 43. Speaking Practice (#4, p.20)<br />Group up!<br />Do the following in your groups…<br />Present your introduction to the class (2 minute introductions)<br />Use the Negotiation Checklist (p.71) to organize your introduction and agenda talk<br />Use tips from Language Focus for your vocabulary<br />Use Video Transcript as a guide.<br />15 Minutes to prepare.<br />
    44. 44. Speaking Practice<br />Important: Use a structured introduction<br />Act as a Chairman, Chairwoman.<br />Show Leadership.<br />Practice in your group…<br />Afterwards, we will present to class ---with Gusto!<br />
    45. 45. Presentations….<br />Group 1-X<br />2 Minute maximum time <br />Introduction only<br />
    46. 46. For next session…<br />Chapter 2: Negotiation Practice<br />Re-Read pages 16-20.<br />Review Language Focus examples<br />Review: Negotiating Practice, Negotiation #1 & 2 p.22<br />Be prepared to present to class your 2 minute Introductions onlyto No’s. 1 & 2.<br /> * Not a full negotiation- just introduction & agenda.<br />
    47. 47. Feedback<br />Any questions????<br />Visit my office anytime or email:<br />#M615B<br />Office Hours: Monday 13:10 – 15:20<br />Wednesday 15:20 – 17:10<br />
    48. 48. Session 4<br />Setting the Agenda II<br />
    49. 49. Session Agenda<br />Vocabulary exercise: p. 19, No. 3<br />Complete Speaking Practice Session 2<br />Negotiation Practice, P.22, No.1 & 2.<br />Everybody Participates!<br />
    50. 50. Negotiation Simulation<br />Negotiating Practice, P. 22, <br />Negotiation # 1<br />2 Buyers: Toy manufacturer<br />2 Sellers: Training consultants<br />Be prepared to present your introduction to class with Gusto!<br />2 minute maximum<br /> *Only the introduction, & agenda not a full negotiation<br />
    51. 51. *****Break*****<br />
    52. 52. Introduction & Agenda Simulation<br />Negotiating Practice, Page 22, #2<br />2 Buyers<br />2 Sellers<br />Negotiate in Pairs for 30 Minutes<br />Take notes as to what happened and when<br />Be prepared to present your results to class<br />Ex.Introduction Structure<br /> Names<br /> Purpose<br /> Roles<br /> Logistics<br /> Timing<br /> Proposal<br /> Issue Resolution<br />
    53. 53. Negotiation Introduction No. 1<br />Groups X-1<br />Saroyan-Arttech: Toy Manufacturer seeks management training program<br />Consultancy: Sent materials and was invited to make a presentation on your training services.<br />
    54. 54. Negotiation Introduction #1, p. 22<br />Group N – 1…<br />Buyers (2)<br />Sellers (2)<br />3 Minute Maximum Negotiation Simulation<br />Focus on: Introduction Structure.<br />
    55. 55. Negotiation Introduction #2<br />Futura: Large manufacturing company needs packaging materials<br />DTX Packaging: Vendor of packaging material.<br />Groups 1-X, 3 minutes, alternate speakers<br />
    56. 56. For next session…<br />Chapter 3: Establishing Positions<br />Read: Pages 24, 25, 27, 28 & 29<br />Read: Unit 3 Video Transcripts<br />Review Culture and Tactics Styles<br />Individualist & Collectivist<br />Do #’s 1, 2 & 3 on pgs. 25-26-27 <br />Review/Practice Language Focus<br />Group 3: Present your Chapter Question before class starts<br />
    57. 57. Establishing Positions<br />
    58. 58. Today’s Agenda: Establishing Positions<br />Dilemma of Positions<br />Positive and Open vs. Room to Bargain later<br />Hold Back permits a discussion ( & creativity)<br />Goal: Find out what they think about your offer<br />Through Effective Feedback & listening<br />Culture and Tactics: Direct vs. Indirect<br />Language Focus: Vocabulary tips<br />
    59. 59. Video Negotiating Context<br />Okus IT<br />Andrew presents key aspects<br />Karen Assists<br />Levien<br />Francoise expects key aspects<br />Sean: Chicago waiting for staffing info.<br />Main Issues (aspects): <br />Staffing levels: Take all Levin IT Staff?<br />Support levels<br />Level A: Full Support and New Projects<br />Level B: Full Support, Projects Cost Extra<br />
    60. 60. Clip<br />Version 1: No Sound EN Chapter 3 Version 1.avi<br />watch body language<br /> both presenter and audience<br />Version 1: Sound EN Chapter 3 Version 1.avi<br /> What should Andrew do?<br /> Start/stop<br />Version 2: No Sound EN Chapter 3 Version 2.avi<br /> watch changes<br /> note style<br /> Pauses to check for audience agreement, confirmation<br />Andrew’s Presentation Style…<br />How to Improve?<br />
    61. 61. Language Focus…Asking for and giving feedback (p.27)<br />Group Up.<br />Each group pick a section and write on a piece of paper, add missing words or put each phrase in a short two sentence dialogue.<br />Each person should do only one phrase<br />Write you name & answers on paper, give to instructor – we will review a few in class.<br />15 Minutes.<br />
    62. 62. Culture and Tactics<br />Direct Communication<br />Say what you think<br />Few words<br />Practical, efficient<br />Indirect Communication<br />Concern about feelings<br />Damage relationship<br />Save face / time to think & respond<br />Andrew frustrates Sean (too slow to get tothe point)<br />“I’m interested to know what your position on our staff is?”<br />
    63. 63. Direct versus Indirect<br />Which style (direct or indirect) is yours?<br />Which style do you like?<br />Which is more effective? Why?<br />
    64. 64. Group Exercise: Culture and Tactics<br />What is the more direct question or statement behind these sentences? (page 25, #1)<br />Change sentences to a Direct Style<br />Do: A, C, E <br />Indirectness is achieved by making questions and statements vague and not specific. (page 26, #2)<br />Change sentences to Indirect Style<br />Do” B & D<br />Write you name & answers on paper, give to instructor – we will review a few in class.<br />15 Minutes.<br />
    65. 65. For next session…<br />Speaking Practice, p.28 #5, G1=a, G2=b, G3=c…<br />Work in Groups (2+2)<br />Create brief introductions for situation ( 2 mins.)<br />Invite feedback often<br />Practice and then change roles<br />Negotiating Practice, p.29 Group Work 2<br />Groups choose a topic<br />Prepare presentation to sell your product (5 mins.)<br />Invite feedback from other group members<br />Class asks questions<br />
    66. 66. Feedback <br />Was anything unclear? Fuzzy?<br />Stop by my office: M615B or<br />Email<br />Or, Write it down and leave it at the desk…<br /> …I will address it next time we meet.<br /> Thank you.<br />
    67. 67. Establishing Positions IISession 6<br />
    68. 68. SessionAgenda<br />Speaking Practice p.28<br />Work in Pairs.<br />Take turns to make brief introductions to the following negotiation situations.<br />Make sure to invite feedback as often as possible.<br />Your partner should listen and respond to your presentation. <br />Negotiation Practice p.29<br />Work as a Group.<br />Prepare a short presentation to sell your version of the product, service or idea.<br />Integrating techniques and language which involve the audience (customer).<br />Rest of class are customers. <br />Ask questions.<br />
    69. 69. Next Session: Clarifying Positions (Ch.4)<br />Read Carefully <br />“Video Negotiating Context” p.30<br />Video Transcript Unit 4 p. 92<br />Study pages 30-34<br />Do Questions:<br />P.31 #8<br />P.32 #1 & 2<br />
    70. 70. Questions?<br />Stop by office<br />Email<br />Office Hours: Monday 1:10 – 3:20 PM<br />Office Hours: Thursday 3:00 – 5:00 PM<br />
    71. 71. Clarifying Positions<br />
    72. 72. Clarifying Your Position’s<br />Last session:<br />Focus was Presenting your position and Interactive Communication using Questions<br />This session:<br />Focus is on Clarifying: making sure we really understand each other<br />Skills to understand are:<br />Good Listening<br />Effective Questioning<br />
    73. 73. The Problem<br />Most of us do not communicate very well…<br />We start with our own ideas<br />We wait for time to tell our ideas<br />We usually have already made up our minds, disagree or ignore the other side.<br />We should be actively listening.<br />An open mind to understand the other party better,<br />Develop practical and beneficial solutions,<br />Earn respect from the other team.<br />
    74. 74. Video Negotiating Context<br />Okus IT<br />Karen clarifies the details of Okus’ offer<br />Andrew assists<br />Levien<br />Francoise is worried about extra project fee’s<br />Sean: Concerned about level of support from Okus.<br />Main Issue (aspect): <br />Support levels<br />Level A: Full support package includes new projects (aka a Club Med All Inclusive Vacation)<br />Level B: Cheaper, monthly invoice include regular support but no new project work; Projects cost extra<br />
    75. 75. Clarifying Positions<br />Meeting Order?<br />Everyone following their own Ideas…<br />Karen is not happy; she can’t get her message across.<br />What does she need to do?<br />
    76. 76. Culture: Individualist vs. Collectivist<br />Group up!<br />Decide weather our group is more Individualist or Collectivist<br />10 Minutes…<br />Then, Group X will give feedback to the class.<br />
    77. 77. Language Knowledge<br />General Questions<br />I’d be interested to know more about…?<br />Could you tell me ?something about<br />What exactly do you mean by…?<br />Could you be more specific?<br />Confirming phrases<br />So you are saying…<br />If I understand you correctly, …<br />Is that clear?<br />Does that explain it?<br />
    78. 78. Read “Between the Lines” ask a supportive or reflective question<br />Page 34, number 5.<br />
    79. 79. Next: Speaking Practice (p.35)<br />BUYER<br />Negotiate a Contract for the Catering and Entertainment for a Corporate Office Party<br />Explain the details (above) and then listen to the offer that Celebration Nights makes.<br />SELLER<br />You represent Celebration Nights, a party planner for corporations<br />You have been contacted by Buyer who wants to arrange (hold) an office party<br />You must listen to Buyer’s plans and then clarify all points, and then present what your company can offer<br />Practice using Active Listening and a variety of question types to show interest and get full details and understanding. Pairs 5 min. each.<br />
    80. 80. Corporate Office Party (5 Minute Maximum)<br />Buyer (Corporate Planner)<br />Give details of Office Party Idea -<br />Listen to options<br />Clarify your understanding <br />Agreement.<br />Seller (Celebration Nights)<br />Introduce & listen to customers needs.<br />Understand, summarize &clarify Ideas<br />Provide alternatives & Pricing.<br />
    81. 81. For next session: Negotiating Practice<br />Pair Work, p. 36<br />Form pairs from your groups (2 people only)<br />If 5 in a group, 2+2+2=one person does two roles)<br />Each student choose one of the 4 situations<br />Each student should present initially and the other student should listen, understand, clarify, and then summarize.<br />2.5 Minutes each, 5 minutes per pair – In class.<br />Change Roles. GRADED Exercise.<br />
    82. 82. For next session:<br />Midterm Review<br />Concepts from Chapter’s 3 & 4<br />What is a position<br />Best way to get feedback<br />Effective questioning<br />Active Listening<br />Establishing your position<br />10 Questions, Multiple Choice<br />1 Essay question: <br />What is the purpose of a Negotiation Introduction?<br />5-8 Sentences.<br />
    83. 83. Feedback <br />Was anything unclear? Fuzzy?<br />Office Hours: Monday 1:00-3:00PM<br /> Thursday 3:00 – 5:00 PM<br />Stop by my office: M615B or<br />Email<br />Or, write it down and leave it at the desk…<br /> …I will address it next time we meet.<br />
    84. 84. Clarifying Positions, Part II<br />
    85. 85. Agenda<br />Speaking Practice: Page 35<br />Negotiating Practice: Page 36<br />Midterm Review (time permitting)<br />
    86. 86. Speaking Practice (p.35)<br />SELLER<br />You represent Celebration Nights, a party planner for corporations.<br />You have been contacted by Buyer who wants to arrange (hold) an office party.<br />You must listen to Buyer’s plans and then clarify all points, and then present what your company can offer<br />Confirm throughout your talk<br />BUYER<br />Negotiate Contract for the Catering and Entertainment for an Office Party.<br />Explain the details (above), then listen to the offer that Celebration Nights makes<br />Check for understanding throughout<br />Practice using Active Listening and a variety of question types to show interest and get full details and understanding. Pairs 2.5 min each.<br />
    87. 87. ***Break***<br />
    88. 88. Negotiating Practice<br />Two People (Pair Work, P. 36)<br />Each student should present initially and the other student should (1) listen, (2) understand, (3) clarify, and then (4) summarize<br />You are graded on the number of clarifications youmake<br />2.5 Minutes each, 5 minutes per pair – In class.<br />No exceptions.<br />
    89. 89. Next Session: Midterm Review (Ch. 1-4)<br />Review Carefully <br />Opening “Objectives” for each Chapter<br />Prepare questions on any terms you don’t understand<br />Review: Negotiation Introduction: ”Setting the Agenda” Ch 2 & page 71.<br />Fully understand why we have this structure (organization)<br />Review: Establishing Positions<br />Understand what your position is and your opponents<br />Effective questions and active listening: How to learn your opponents position.<br />Review: Clarifying Positions <br />Understand how this helps define the specifics and also push’s your opponent to reveal their important issues & Positions<br />
    90. 90. Midterm Review<br />What is a position?<br />Your opening and later changing offers (price, delivery, specifications, preferences, work hours, location, benefits, etc).<br />Holdback: The difference between your opening position and your bottom line. Gives you room to negotiate. (p. 24, No. 1)<br />Best way to get feedback on your position? <br />Say what you want, and also ask questions to get verbal and non verbal signals from customer or opponent (p.27, No. 3)<br />Effective Listening: increase your understanding of the other sides needs, wants or capabilities (features, benefits, budget)<br />
    91. 91. Review (Continued)<br />Essay Question:<br />What is the purpose of an introduction?<br />Reduce Stress (everyone knows what will happen and when)<br />Maintain order, structure (avoid Karen’s problem)<br />Provide a good setting to cooperate and find good solutions.<br />10 Questions, Multiple Choice<br />
    92. 92. Feedback <br />Was anything unclear? Fuzzy?<br />Office Hours: Monday 1:00-3:00PM<br />Wednesday 3:00 – 5:00 PM<br />Stop by my office: M615B or<br />Email<br />Or, write it down and leave it at the desk…<br /> …I will address it next time we meet.<br />
    93. 93. Chapter 5: Managing Conflict<br />After the mid-term Exam<br />Review Video Context<br />Review Video Transcripts Unit 5<br />For the next class meeting:<br />Plan for Negotiating Practice No. 1<br />Plan for Speaking Practice No. 6<br />
    94. 94. Managing Conflict*****Session 10****<br />
    95. 95. Today’s Agenda: Managing Conflict<br />This is the “Heart” of The Art of Negotiation<br />Cross-cultural negotiations fail due to misunderstandings<br />Due to our Inability to constructively criticize( > less personal)<br />Goal: How to give and receive positive criticism<br />One Tactic: softer language use<br />Language Focus: Modified Vocabulary<br />
    96. 96. Conflict<br />Advantages<br />Can be a driving force to get the job done.<br />Shows us the differences that need to be resolved.<br />Disadvantages<br />Can be destructive to the relationship<br />Increases Stress<br />Criticism can be received personally.<br />Results in total breakdown.<br />Some people like it because it helps them force a result…<br />Other people do not like it, they avoid it.<br />
    97. 97. Video Negotiating Context<br />Okus IT<br />Andrew (sales manager) thinks his position is under threat<br />Karen ‘feels’ frustrated with Sean and Andrew<br />Levien<br />Francoise wants a positive atmosphere<br />Sean thinks negotiation is getting stuck, wants to ‘shake’ things up.<br />Main Issues: <br />What is support work and what is project work?<br />Level A: Full Support and New Projects Included<br />Level B: Projects cost extra, open for abuse<br />
    98. 98. - Version 1: EN Chapter 5 Version 1.avi<br /> - issue: logging or support work<br /> - inexperience remark causes offense<br /> - Sean and Francois not working as a team<br /><ul><li>Version 2: EN Chapter 5 Version 2.avi
    99. 99. Sean adapts, downtones his remarks but,
    100. 100. Confronts the issue, does not avoid sticky issues.</li></ul>Okus, Levin & Trust<br />Breakdown in Trust arises because the definition of:<br /> Project Work ($$$)<br /> Support Work (included)<br />Is not clear, easy to understand.<br />How do they do it: Logging -<br />
    101. 101. How We Feel About Conflict<br />AGREE --------------------------------------DISAGREE<br />Even when I’m being confrontational, I’m never personally involved. It’s just tactics.<br />I hate it when people get aggressive, it’s just not necessary.<br />When people start criticizing, it’s hard not to take it personally.<br />Being aggressive is a perfectly valid way of getting what you want.<br />
    102. 102. Culture and Tactics, P. 40<br />Discuss the four individuals negotiating style<br />Compare them to the people in your group<br />Later, tell the class which of those negotiators you most identify with and why? (which one’s are more like your group).<br />
    103. 103. Language Focus: “creating options”<br />
    104. 104. Modify the following remarks… p. 42<br />We must cut the advertising budget<br />We could perhaps cut the advertising budget<br />You need to analyze your costs in more detail<br />You might check your costs in a bit more detail<br />Look at page 32 of the document<br />May I suggest you take a look at page 32?<br />Intonation: Pitch up, cooperative Down = serious/negative<br />
    105. 105. Modify the following…<br />This is the worst food I’ve ever tasted<br />This is not the best food I’ve ever tasted<br />Don’t be so late for class<br />Could you be early for class?<br />Your quotation is much too expensive<br />Your quotation is a bit too expensive<br />Your quotation is not as we hoped<br />Intonation: Pitch up, cooperative, Down = serious/negative<br />
    106. 106. Next Session: Speaking Practice #5 (p.43)<br />Work in your groups (2 pairs each)<br />Modify the following dialogue (conversation):<br />Write your changes on paper<br />Special attention to intonation (how you sound).<br />Then either:<br />Record your new dialogue on Mp3 or<br />Role-play in class<br />Bring to class next session, we will all listen or watch.<br />
    107. 107. And, Conflict Negotiation : Speaking Practice #6 (p.43)<br />Manager: Production<br /> (Student A)<br />Have large quantity of extra components (parts) to make your product<br />Why are you paying for storage you don’t need?<br />Customer cancelled and you don’t need these extra parts<br />Manager: Purchasing<br />(Student B)<br />You order parts based on production schedule<br />You always order extra because there are problems with delivery and it takes a long time to arrive<br />“Down-tone” the language to be more positive<br />
    108. 108. Next Session:<br />We review your two exercises.<br />Remember you must work outside of class<br />Write your answers down and either:<br />Record your voice for #5 or<br />Role-play live in class<br />See me if you have any questions.<br />
    109. 109. Managing ConflictDown toning your language<br />
    110. 110. Today’s Agenda<br />#5: Modify your dialogue so that it is less confrontational (e.g. Sean)<br />Group1-X<br />#6: Production versus Purchasing<br />Both people think that the other is to blame.<br />How to modify the language to be less aggressive (confrontational)<br />
    111. 111. Make the sentences less confrontational… #5<br />Your figures for last year look bad.<br />Mp3 recordings or<br />Roleplay<br />Your figures for last year don’t look so good.<br />Group X->1<br />
    112. 112. There are a lot of electrical parts in the warehouse…#6<br />Production Manager (A)<br />Have large quantity of extra components (parts) to make your product<br />Why are you paying for storage you don’t need?<br />Customer cancelled and you don’t need these extra parts<br />Purchasing Manager (B)<br />You order parts based on production schedule<br />You always order extra because there are problems with delivery and it takes a long time to arrive<br />“Downtone” the language to be more positive<br />
    113. 113. Production Manager<br />Purchasing Manager<br />
    114. 114. Internal Negotiation – Personnel Problem<br />Roles:<br />Commercial Director<br />Marketing Manager<br />Human Resources Director<br />Sales Manager<br />Public Relations Manager<br />Female staffer is complaining that she was discriminated against for a department promotion.<br />Goal: Avoid legal suit, decide on alternative solution to make everybody happy<br />P. 44, group work (5 people)<br />
    115. 115. Next Session:<br />Chapter 6: Making and Responding to Proposals<br />Read pages: 46, 47, 49<br />Read carefully: “Video Negotiating Context”<br />Read carefully: Video Transcript Unit 6<br />Do: Pair Work, #7, p. 47, 3 minute limit<br />
    116. 116. Remember: Participation is 34%<br />Any questions????<br />Visit my office anytime:<br />#M615B<br />email<br />Office Hours: Monday 13:10 – 15:20<br /> Thursday 15:20 – 17:10<br />
    117. 117. Business Negotiations<br />Making and Responding to Proposals<br />
    118. 118. Proposals & Counterproposals<br />Last session:<br />Focus was Down-toning Language, Constructive Criticism (managing conflict positively)<br />This session:<br />Reduce the gap between your position and the other side’s position<br />How: by making proposals and counter proposals<br />Skills to learn are:<br />Persuasive proposals<br />Asserting pressure <br />
    119. 119. Problem: Levin and Okus are Stuck!<br />Level A and Level B Support Offers<br />Levin does not like either option<br />Which side should now make a new proposal?<br />Normally the supplier (seller) does this.<br />The buyer has the advantage since they do not have to reveal anything about their position.<br />However, the team that starts the next step sets the direction and range of possibilities.<br />
    120. 120. Video Negotiating Context<br />Levien<br />Francoise looking for a solution to the ‘logging’ problem<br />Sean: Not happy about ‘logging’. Wants Okus to offer a better solution.<br />Okus IT<br />Karen makes a new proposal to break the deadlock.<br />Andrew assists<br />Current Issue (Deadlocked Negotiations): <br />Support levels<br />Level A: Full Support Package (Complete) includes New Projects – Expensive but easy to Manage<br />Level B: Cheaper, Monthly Invoice includes regular support but no new project work; Projects logged and billed extra …”An open bar tab”<br />
    121. 121. Proposals<br />“Win-Loose Style of Sean”<br />EN Chapter 6 Version 1.avi<br />Does Sean let Okus explain their proposal?<br />EN Chapter 6 Version 2.avi<br />Focus on exchange between Francois and Karen – solution oriented<br />
    122. 122. Make proposals and counter proposals<br />We’re out for happy hour and snacks…<br />Who is going to pay the bill?<br />A: Let me pay this time<br />B: No, that’s not fair, I’m sure it’s my turn<br />A: Why don’t we split it?<br />Group up! 15 Minutes to practice the following<br /> Then we summarize each groups negotiation.<br />
    123. 123. Negotiation Proposal & Counter Proposals…(p.47)<br />#3 It has become necessary to make budget cuts. You could let go two trainees with 6 months training…or you could economize in other ways. What do you cut?<br />#4 Organize an important dinner for influential client. Client has strong religious beliefs…and can not eat/drink certain things. Decide on what kind of dinner to have.<br />#1 The company is going to invest in a major, world class sports team. It is your responsibility to select which sport and which team to invest in.<br />#2 One of you has to relocate to New York City…You don’t know the relocation package…but you have to make a decision now. Which one will go?<br />Follow the problem solving model of Karen & Francois, p. 93 transcript.<br />
    124. 124. ***Break***<br />....VA - Cafe Brazillia - The Cream Of Latino Lounge (102 - Panaphonic - Sambastique.mp3<br />
    125. 125. Language Focus<br />Making Proposals:<br /> I propose… I think we should…<br /> I suggest… Why don’t we…<br /> I advise you to… How/What about…<br />Negative<br />I’m afraid that’s not possible<br />I can’t agree to that<br />That is out of the question<br />Positive<br />Good Idea<br />That sounds fine<br />I’ll go along with that<br />
    126. 126. Roleplay<br />
    127. 127. Neutral: Don’t agree, Don’t Disagree<br />That’s true, but….<br />How would that work?<br />How about Sally’s Idea???<br />What would that cost???<br />I understand what you are saying….<br />My idea was to do it this way.<br />We could do that. That’s possible, but…<br />These may re-direct the conversation back to your ideas.<br />
    128. 128. Next Session:<br />Chapter 7: Bargaining<br />Read pages: 52, 53, 54, 56<br />Do p. 56 #4 & p. 57 # 5.<br />Read carefully: “Video Negotiating Context”<br />Read carefully: Video Transcript Unit 7<br /> Role-play: Group Work (4) Page 50-51<br /> (All Groups) 5 Minute Time Limit<br />Full Cumulative Grading (Chapter’s 1-6)<br />
    129. 129. Now, we start to Think in English…<br />Any questions????<br />Visit my office anytime:<br />#M615B<br />Office Hours: Monday 13:10 – 15:20<br /> Thursday 15:20 – 17:10<br />
    130. 130. Business Negotiations<br />BARGAINING<br />
    131. 131. Bargaining<br />Last session:<br />Focus was Proposals & Counter Proposals to reduce the gap between positions…<br />This session:<br />Keep a positive communication style while finalizing remaining differences.<br />How: Keep the Big Picture in Mind (Objective)<br />Skills to learn are:<br />Conditional language: “If you do something…. then…”<br />Hypothetical language: “ We would be able to give a discount if…”<br />
    132. 132. Problem: Levin is Worried about People!<br />Levin does not want to fire employees<br />Cultural Styles are Different<br />Sean & Andrew, for example. Think Sharon & Thor<br />An open mind helps to think positively, accepting new ideas in order to reach an agreement versus: No.<br />Outsourcing: The contractor (Okus) might be the new employer of the staff that work at the customers offices(Levin)<br />
    133. 133. Video Negotiating Context<br />Levien<br />Francoise wants to save her staff’s jobs…<br />Sean: Worried about the Works Council (Employee Union)<br />Okus IT<br />Andrew thinks he is giving up to much<br />Karen originally planned to only hire two of Levin’s staff.<br />Current Issue:<br />Staffing <br />Okus offers to hire only two of Levin’s Staff: Manager & Engineer<br />Remaining work projects would be done by Okus UK Staff<br />
    134. 134. Bargaining<br />“NO!”<br />What is the focus under pressure:<br /> What they can do..or<br /> What they cannot do?<br />What should they do?<br />Version1: EN Chapter 7 Version 1.avi<br />Version2: EN Chapter 7 Version 2.avi<br />
    135. 135. Example Bargaining Issues<br />Discount: 2% in 10 Days, 0% 30days.<br />Delivery Time: Now, Fast, Late, Specific Date<br />Delivery Location: Your office, other place, customer pays<br />Payment Method: Credit card, Wire, Cash<br />Quality: defect rate, failure rate, customer complaints<br />
    136. 136. Hypothetical Language: More positive, open to suggestions.<br />We could offer you a 2 % discount…if you guaranteed the orders.<br />We could re-paint the office… if you agreed to work this weekend.<br />We could consider a salary increase…if you agreed to move to London.<br />
    137. 137. Conditional Pressure: If…Then.<br />(I’m afraid) we will have to cancel the contract…<br />unless you reduce your fees.<br />We will have to choose another supplier…<br />if you can’t make us a better offer.<br />That looks like the end of the negotiation…<br />unless you can make a concession<br />
    138. 138. Exercises<br />P. 56, No. 4<br />Use the ideas to make offers and attach conditions.<br />Offer; Extend the contract Condition: 1% Discount<br />We could extend your contract as long as you offered us a 1% discount.<br />P. 57, No. 5<br />Complete the dialogue using expressions from Language Focus (p. 56).<br />We seem to have reached a stalemate. Were not going to progress _________ you can make us a better offer. <br />
    139. 139. Negotiation Practice: Bargaining<br />Roleplay: Group Work (4) Page 50-51<br /> (All Groups) 5 Minute Time Limit<br />
    140. 140.
    141. 141. City Council<br />Community Group<br />
    142. 142. For Final Exam: Negotiation Practice, p.59<br />Training Company negotiating with a large company for sales and management training.<br />Customer wants a discount for volume.<br /> Two Suppliers & Two Customers<br />5 minute negotiation, prepare written outline only – give to professor prior to role-play<br />Measurement: Use of Structure & the # of times you correctly use Language Focus phrases from all chapters<br />
    143. 143. Next Session: Ch. 8 Conclusion<br />Read: Video Negotiating Context<br />Language Focus <br />Speaking Practice: #6 p. 65<br />DO: Prepare your Negotiation Outline for the Final Exam & Submit draft to instructor.<br />
    144. 144. Now, we start to use short outlines<br />Any questions????<br />Visit my office anytime:<br />Or<br />Email<br />Office Hours: Monday 13:10 – 15:20<br /> Thursday 15:20 – 17:10<br />
    145. 145. Business Negotiations<br />Negotiation Conclusion <br />
    146. 146. Conclusion <br />Last session:<br />Focus was Bargaining to add some pressure, continue with positive solutions and offer small concessions (gifts)<br />This session:<br />Conclusions take time…to re-confirm, clarify, organize and document agreed upon items.<br />Think about the future (this is only the beginning)<br />
    147. 147. Challenge: The Ending Sets the Relationship<br />The Progress we made duringthe difficult negotiations are still at risk until the contract is signed.<br />Summarizing is critical to:<br />Re-Confirm Agreed-upon Items<br />Clarify all open issues (& set at time to resolve)<br />Suggest a pleasant (positive, memorable) departure<br />Note: Culture often sets negotiation style<br />Win-Win Objectives: everybody benefits<br />Win-Loose still exists due to competition for resources, profits, politics, cultural preference, etc.<br />
    148. 148. Video Negotiating Context<br />Levien<br />Francoise has a dinner engagement, needs to go<br />Sean feels he has a great deal, does not see any more critical decisions/issues to solve<br />Okus IT<br />Andrew Keen on getting home<br />Karen feels there are more issues to solve<br />Final Issue:<br />Staffing has been decided, but…<br />Their remain questions about exactly which staff will be hired and…<br />What is the amount of the special “Contingency Fund” to be used for special projects<br />
    149. 149. Conclusion<br />EN Chapter 8 Version 1.avi<br />#1 Focus on Francois, whatdoesshe do? Worry about?<br />#2 Focus on Karen and Andrew, are theyworking as a team?<br />EN Chapter 8 Version 2.avi<br />#1 Focus on Francois: Make a list of the wayssheendsdifferently.<br />#2 Videostop’sreview.<br />Summarizes » So we have agreed an initial 1 yrcontract<br />Agrees on Action: Wewillmeetagainhere to interview<br />Apologizes for having to leavequickly<br />“Leaving without a good understanding….”<br />How will this affect the long term relationship?<br />What should they do?<br />
    150. 150. Language focus exercises.<br />Complete the concluding phrases…(p. 64)<br />Let me just_____ the main points.<br />I think that just about ____ it.<br />It ___ say how much we appreciate your contribution.<br />Does that accurately ____ what we agreed during the meeting?<br />Could you _____me a written proposal before the next meeting?<br />I ____we meet later in the week.<br />As ____ payment ___, there are still some _____ issues to resolve.<br />
    151. 151. Language focus exercises.<br />Discuss the following tactics Which do you agree with and why? What other advice would you give…(p. 62)<br />Never negotiate a single issue.<br />Always bargain from a position of strength.<br />Don’t let your negotiation partners feel too comfortable.<br />Identify and reinforce the weak points in their argument.<br />Never show your real feelings.<br />Keep your strongest cards up your sleeves.<br />
    152. 152. Final Exam Preview:5 Minute Final Negotiation Simulation<br />Goal: Successful Agreement: WIN-WIN or “Mutually Beneficial”<br />Structure<br />Introduction<br />Establishing Positions<br />Clarifying<br />Proposals & Counter Proposals<br />Bargaining<br />Final Agreement & Conclusion<br />Class & Professor will Evaluate (50% / 50%)<br />Use of Structure, Language Focus, Effective Listening & Feedback…creative solutions<br />
    153. 153. Negotiation Outline<br />Chapter 1<br />Preparation (p.68)<br />Objectives of the negotiation<br />Best & Worst Case, Bottom Line<br />Strategies: <br />Best order to discuss issues<br />Likely “Stick Points (problems)”<br />Concessions (advance preparation)<br />What do we know about the other team<br />Introduction (p.69)<br />Names, Roles, Titles (special knowledge/skills)<br />Purpose of Meeting/Negotiation<br />Chair of the meeting, Minute (note) taker<br />Questions (how to manage)<br />
    154. 154. Outline<br />Agenda (p.71)<br />How to Start/Finish<br />How long to meet?<br />Meal arrangements (lunch and/or dinner)<br />Travel needs (hotel, airline confirmation, taxi)<br />Agenda items<br />Topic 1<br />Topic 2<br />…<br />www.slideshare.net<br />Tunghai Negotiation Checklist<br />
    155. 155. Chapter 7 – Page 59: Training Services Agreement<br />Suppliers:<br />100 Days / Year Potential<br />Daily Costs $600 / $500<br />Discounts not Common<br />Willing to offer 10% for 100 days and 5% for 80 days<br />Customers: <br />Want Volume Discount for 100 days<br />Cant guarantee the exact number of days<br />Think rates should be cut by $100<br />Can pay early for a good discount (15 days)<br />
    156. 156. Resources: Everything is in Your Text<br />Language Focus<br />Vocabulary<br />Examples<br />Structure & Outline is Key<br />Video Transcripts<br />Specific Phrases<br />Culturally Sensitive<br />Understand context & Meaning<br />
    157. 157.
    158. 158. Ending…<br />At the end of a meeting we often make a remark about the meeting…(p. 64)<br />“That was a very positive start. I look forward to our next meeting”<br />This meeting was extremely fruitful…<br />Today’s negotiation was very useful…<br />So to end our class….<br />Today’s class________ (stimulate).<br />Today’s class ________ (help)<br />
    159. 159. Feedback<br />Any questions????<br />Visit my office anytime:<br />#M615B<br />email<br />Office Hours: Monday 13:10 – 15:20<br /> Thursday 15:20 – 17:10<br />
    160. 160. Questions?<br />
    161. 161. Business Negotiations<br />(FinalExam)<br />Negotiation Simulation <br />
    162. 162. Final Negotiation Simulation <br />Goal: Successful Agreement “Mutually Beneficial”<br />Outline<br />Introduction<br />Establishing Positions<br />Clarifying – Understanding Needs<br />Proposals & Counter Proposals<br />Bargaining<br />Final Agreement & Conclusion<br />Class & Professor will Evaluate (50%/50%)<br />Use of Structure<br />Language Focus<br />Effective Listening & Feedback<br />=>creativesolutions<br />5 Minute Maximum<br />Group X-> N<br />1) Class Score Sheet (1 Min)<br />2) Negotiation (5 Mins)<br />3) Complete Sheet (3 Mins)<br />4) Turn-In to Prof. (1 Min)<br />
    163. 163. Next Session: Final Exam<br />Goal: Successful Agreement “Mutually Beneficial”<br />Outline<br />Introduction<br />Establishing Positions<br />Clarifying<br />Proposals & Counter Proposals<br />Bargaining<br />Final Agreement & Conclusion<br />Class & Professor will Evaluate (50%/50%)<br />Use of Structure, Language Focus, Effective Listening & Feedback…creative solutions<br />Individual Grade’s<br />Everyone must Speak<br />Live Negotiation – No Reading a script, Give your own words/language<br />Graded based on Score Sheet # Times correct use of language focus & structure<br />Video Taped.<br />
    164. 164. Negotiation Context - Training Services Contract<br />Suppliers:<br />100 Days / Year Potential<br />Daily Costs $600 management / $500 sales<br />Discounts not Common<br />Willing to offer 10% for 100 days and 5% for 80 days<br />Customers: <br />Want Volume Discount for 100 days<br />Cant guarantee the exact number of days<br />Think rates should be cut by $100<br />Can pay early for a good discount (15 days instead of 30 or 60 days)<br />
    165. 165. Break<br />
    166. 166. Congratulations…you are 50% there!<br />Next Semester:<br />Effective Presentations by Jeremy Comfort<br />More focus on:<br />Your Language Use – (Language Focus)<br />Your Volume and Image on Stage<br />Persuasion Skills<br />Organization & PowerPoint<br />Reading Assignment:<br />Chapter 1 & 2 – Video Transcript’s<br />Groups 1 & 2 -- do First Question of Chapter & Present<br />Writing Assignment:<br />Make one sentence using the Language Focus phrases from each Chapter in the Effective Presentations textbook – Turn in to Prof.<br />
    167. 167. Your comments please…<br /> Please Return Evaluations….<br />....The Office - Salary Negotiation Vol 2.flv<br />They help me learn to make better courses… <br />
    168. 168. Final Thought<br />What one thing can you do…<br /> to learn better next semester?<br /> Write it down & look at it again on next semester.<br />Lecture Power Points: www.slideshare.net/laoshi_steve<br />
    169. 169. That’s All Folks!<br />

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