Negotiating For Results 2009

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Negotiating skills to get you results. Special considerations for negotiating in India and similar places. Unique problems are included as exercises. Note that presentation cannot convey the full experience of a classroom exercise.

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Negotiating For Results 2009

  1. 1. Negotiating for ResultsHASIT SETH<br />Pune, India<br />2009<br />(c) Hasit Seth, 2009<br />
  2. 2. My Background<br />.edu = B.Sc, LL.M. (Mumbai, Gold Medal), LL.M. (FPLC)<br />Professional: New York and India Lawyer<br />Work: Currently @ MNC in Pune as an Asia Pacific IP counsel<br />Program on Negotiation @ Harvard <br />Contact: hasits at gmail.com<br />(c) Hasit Seth, 2009<br />
  3. 3. Outline<br />A:9.30 – Introductions<br />B:9.45 – Why Learn Negotiation?<br />C:10.00 – Negotiating for a Promotion [Demo]<br />D:10.30 – Principled Negotiation Framework<br />E:11.00 – Option, Interests, Criteria - Exercises<br />F:11.15 – Co-Founding a Business: 1-on-1 <br />G:12.00 – Framework works? DDP™<br />H:12.15 – Team Negotiation – Pune Metro Railway Plan<br />I:1.00 – Filler/Backup<br />J: 1.15 – Q&A/Wrap-up<br />(c) Hasit Seth, 2009<br />
  4. 4. A: Introductions<br />(c) Hasit Seth, 2009<br />
  5. 5. A:Introductions<br />Your name<br />What do you do? (optional)<br />(1-sentence) How will you use the negotiation skills you learn today?<br />(c) Hasit Seth, 2009<br />
  6. 6. A:My Story<br />As a litigator in court, I saw daily that disputes are not being resolved. <br />Only result – Delays!<br />Forget about your “rights” under law; Forget who is right or wrong. After 20 years delay, it will be worthless to win.<br />(c) Hasit Seth, 2009<br />
  7. 7. A: My Story<br />Is there hope for dispute resolution? <br />My three law degrees, New York and India law licences, few degrees, 10 years of practice don’t provide me a clear answer; nor did my technical background<br />Then, I stumbled into the field of negotiation. Today, I feel, YES, we can get better results.<br />(c) Hasit Seth, 2009<br />
  8. 8. B: Why learn negotiation?<br />SLIDE TALK<br />(c) Hasit Seth, 2009<br />
  9. 9. B:Motivation<br />Tell us your most difficult situation where you used negotiation skills or you think negotiation could have helped.<br />(c) Hasit Seth, 2009<br />
  10. 10. B:Where is Negotiation Used?<br /><ul><li>Contracts
  11. 11. Labor Relations / Employment (Salary)
  12. 12. City Disputes
  13. 13. Water Distribution
  14. 14. Personal Family Disputes
  15. 15. International Conflicts (e.g. East Timor, Palestine…)
  16. 16. UN Organizations – e.g., WTO is totally negotiation based decision making body
  17. 17. Hostage Negotiatons</li></ul>(c) Hasit Seth, 2009<br />
  18. 18. B:Positional Bargaining<br /><ul><li>Customer: “How Much for the Ring?”
  19. 19. Seller: “Rs. 10,000”
  20. 20. Customer: “I can pay only Rs. 5,000”
  21. 21. Seller: “That is not even my cost price!”
  22. 22. Customer: “How about Rs. 7,000”
  23. 23. Seller: “I can sell it for Rs. 9,000”
  24. 24. Customer: “I can finally pay Rs. 8,500”
  25. 25. Seller: “Okay, I will sell it for Rs. 8,500”</li></ul>(c) Hasit Seth, 2009<br />
  26. 26. B:Positional Bargaining<br /><ul><li> It is Inefficient
  27. 27. Endangers an Ongoing Relationship
  28. 28. Multi-party Positional Bargaining is Worse
  29. 29. Does not lead to “Wise” Agreements</li></ul>- “Getting to Yes”, Fisher and Ury<br />(c) Hasit Seth, 2009<br />
  30. 30. B:Principled Negotiation<br /><ul><li>PEOPLE: Separate the people from the problem
  31. 31. INTERESTS: Focus on interests, not positions
  32. 32. OPTIONS: Generate a variety of possibilities before deciding what to do
  33. 33. CRITERIA: Insist that the result be based on some objective standard</li></ul>- “Getting to Yes”, Fisher and Ury<br />(c) Hasit Seth, 2009<br />
  34. 34. C:Negotiating for a promotion<br />DEMO<br />(c) Hasit Seth, 2009<br />
  35. 35. C:Promotion Negotiation<br />I am a management trainee, working since 1 year with SBIM<br />I want to be promoted to center manager position<br />I think I have skills, demonstrated work experience<br />I think 1 year is too short an experience to give a promotion<br />Money is the motivation?<br />Risks?<br />What alternative can I offer?<br />(c) Hasit Seth, 2009<br />
  36. 36. C: Applying PN Framework<br />Old Style<br />Talking through each other<br />Digging into positions<br />Stonewalling<br />More hardened situations<br />PN Framework<br />Problem minus people = Career Progress vs. Risks/Feasibility<br />Interests: Career, Progress, Risk Management, Feasibility, Timing<br />Options: Defined promotion path, milestones, salary adjustment, risk assessment, other progress opportunities<br />Criteria: Industry norms, company norms, objective evaluation, career path definition<br />(c) Hasit Seth, 2009<br />
  37. 37. D:Applying pn framework<br />Slide Talk<br />(c) Hasit Seth, 2009<br />
  38. 38. A:BATNA<br /><ul><li>Best Alternative to Negotiated Agreement (what will each party do if negotiation fails?)
  39. 39. Each party should ascertain its BATNA before negotiating
  40. 40. If negotiation is not progressing beyond BATNA, then no point in proceeding further.
  41. 41. Key: Valuation of BATNA, be true to yourself and your goals. </li></ul>(c) Hasit Seth, 2009<br />
  42. 42. B:ZOPA<br />Zone of Possible Agreements<br />Negotiation is a not a method to achieve improbable gains<br />A wise negotiation will be placed within the ZOPA<br />E.g., A house on sale for 25 lakhs; expected ZOPA could be +/- 15%<br />ZOPA for Non-Price terms: Payment terms, minor repairs to be done before hand, title clearance, possession dates, electrical diagrams, society formalities…DO THESE TERMS MATTER TO YOU?<br />(c) Hasit Seth, 2009<br />
  43. 43. A:Tactics<br />Tactics<br />(c) Hasit Seth, 2009<br />
  44. 44. A: Negotiating in India<br />1. Typical tendency is to avoid putting things in writing. When people do put things in writing, they go overboard in writing EVERYTHING possible.<br />2. Nobody trusts the legal system, so everyone wants iron-clad guarantees for payment. Terms for performance are secondary, but payment terms are the most debated ones.<br />3. Irrespective of the nature of the contract, the general tendency is that, &quot;All rights are mine, and all duties are yours&quot;! or in other words, I must have my cake and you be damned.  <br />(c) Hasit Seth, 2009<br />
  45. 45. A: Negotiating in India<br />4. In respect of land, nobody trusts anyone. Whether it&apos;s rental or a conveyance, the whole transaction is about suspicion. Both parties are trying to psyche each other to understand their real motives and price bottoms. <br />5. Once money changes hands, there is pretty much nothing you can do. Nobody fears the legal system until they are dragged there. <br />6. Anywhere police get involved, a civil dispute is easily converted in to a criminal one. Magically. <br />(c) Hasit Seth, 2009<br />
  46. 46. A: Negotiating in India<br />7. With absolute lack of trust, fairness is the first casualty. Why be fair when other side is never going to be fair? Hence, parties at a negotiation table first throw away the cloaks of being fair. Bare knuckle negotiation is the preferred style. <br />9. Preemptive blocking is the preparation strategy so that the other party can be made to capitulate when it comes to the negotiation table. Just make it unbearable for the other party to do anything but to agree to your terms.<br />10. All the above things can thrown away at will, I will do what I like!<br />(c) Hasit Seth, 2009<br />
  47. 47. A: Non-Cooperating Parties<br />F&U: Positional dance of criticism<br />I state a position; you assail it; I defend; you push harder to show how am I wrong; I recoil<br />F&U: Negotiation Jujitsu<br />(c) Hasit Seth, 2009<br />
  48. 48. A: F&U: “Negotiaion Jujitsu”<br />Don’t attack their positions, look behind it<br />Invite criticism and advice for your ideas<br />Recast an attack as an attack on your problem<br />Ask Questions<br />In worst situation, if it helps, suggest a third party negotiator (not arbitrator)<br />(c) Hasit Seth, 2009<br />
  49. 49. E: Option, interests & Criteria exercises<br />Class Exercise<br />(c) Hasit Seth, 2009<br />
  50. 50. E:Locating Interests<br />See Film Clip<br />Brainstorm Interests<br />Assume No-Double Cross<br />With Double Cross <br />(c) Hasit Seth, 2009<br />
  51. 51. E: Finding Options<br />Negotiation with a child to not buy an expensive toy – OPTIONS?<br />Negotiating with the boss to ask for less work – OPTIONS?<br />(c) Hasit Seth, 2009<br />
  52. 52. E:Criteria<br />Selling a House – Price of a house<br />Which movie to see today?<br />(c) Hasit Seth, 2009<br />
  53. 53. F: Exercise – co-founding a business<br />F: 1-1 Exercise<br />(c) Hasit Seth, 2009<br />
  54. 54. F:Background<br />Veeru and Jay/Basanti want to a start a restaurant in Ramgarh<br />Veeru is currently working a MNC. He cannot quit his job as of now but will do later. He will invest Rs. 5,00,000/-<br />Basanti/Jay is unemployed, so can take care of business initially but brings no investment.<br />They want to negotiate terms of partnership<br />(c) Hasit Seth, 2009<br />
  55. 55. F:More Information<br />Jay thinks if he is doing all the hard-work he should have a larger share of profits<br />Veery thinks he is the investor, is giving up his job in few months, so as risk taker, he should have a larger share of profits<br />Veeru and Jay both think that they should have final decision making veto power over day-to-day issues (hiring, menus, advertisement, etc)<br />(c) Hasit Seth, 2009<br />
  56. 56. F:Differences<br />OWNERSHIP: Percentage of ownership, profit sharing, investment? (anything but not 50-50)<br />CONTROL: Veto-power over day-to-day decisions<br />PLAN B: What if this fails? <br />(c) Hasit Seth, 2009<br />
  57. 57. Framework, DDP<br />Class Discussion<br />(c) Hasit Seth, 2009<br />
  58. 58. Framework, DDP<br />PN framework is a static layout<br />It’s a guide to ingredients of a negotiation<br />How to manage changing scenarios?<br />Dynamic Deal Plan<br />(c) Hasit Seth, 2009<br />
  59. 59. Dynamic Deal Plan ™<br />Layout the expected Positions, Interests, Criteria, Differences<br />Separate non-negotiable core interests and negotiable ones<br />Each deal situations requires a new format of DDP unless repeatable<br />Mix-n-Match Possibilities of solutions<br />Track proposals against expectations<br />Account for variations and fit to ZOPA, test with BATNA<br />Simulate deal and see if it will endure<br />(c) Hasit Seth, 2009<br />
  60. 60. DDP in Extreme<br />Film Clip<br />(c) Hasit Seth, 2009<br />
  61. 61. Pune METRO ROUTING<br />Team Negotiation<br />(c) Hasit Seth, 2009<br />
  62. 62. Pune Metro <br />Five Interest Groups:<br />A: Commuters Association<br />B: Slum Residents<br />C: Rich Bungalow Society Residents<br />D: Metro Planners<br />(c) Hasit Seth, 2009<br />
  63. 63. Problem:<br />Metro Rail is planning a station in Model colony. There are nearby slum residents and on other side of road is a posh bungalow colony.<br />Either slums or bungalow colony will have to be relocated to create the station<br />Model colony station cannot be eliminated to keep metro profitable.<br />Nobody is ready to move – slums/bungalows<br />(c) Hasit Seth, 2009<br />
  64. 64. A: Commuters Association<br />They want metro to happen at any cost<br />They want a station at Model Colony as a MUST.<br />They are not very concerned with either slum or bungalows are demolished, but some of their members stay in either slums or bungalows, so they are not so sure if either should happen <br />(c) Hasit Seth, 2009<br />
  65. 65. B:Slum Residents<br />They don’t much care for metro<br />They are okay if it happens but not if they have to move<br />They want a flat from Metro or Bungalow Society if they have to relocate but it should be within model colony<br />Fear: This is a trick of bungalow guys to get rid of them<br />(c) Hasit Seth, 2009<br />
  66. 66. C: Bungalow Society<br />They are unwilling to move in any scenario<br />They will not allow whole metro to happen through political pressure, courts and other tactics<br />They are okay if slums are relocated, or rather want that it happens<br />It is Metro’s headache to relocate slums or deal with slum owners<br />(c) Hasit Seth, 2009<br />
  67. 67. D:Pune Metro<br />Metro management wants a station to keep the metro financially viable<br />There is no alternative land available in Model Colony for station<br />They have limited funds to relocate only half of the slum owners<br />(c) Hasit Seth, 2009<br />
  68. 68. THANK YOU<br />(c) Hasit Seth, 2009<br />

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