Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Negotiating to Win from a Position of Weakness

9,512 views

Published on

Track A - Global Leadership Conclave

Published in: Business, News & Politics
  • You're Going to Want to Read This Before Tonight ➤➤ http://t.cn/Airfq84N
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THAT BOOKS INTO AVAILABLE FORMAT (2019 Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download Full EPUB Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download Full doc Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download PDF EBOOK here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download EPUB Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download doc Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book that can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer that is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story That Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths that Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THIS BOOKS INTO AVAILABLE FORMAT (Unlimited) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... Download Full EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ACCESS WEBSITE for All Ebooks ......................................................................................................................... Download Full PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... Download EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... Download doc Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD FULL BOOKS, INTO AVAILABLE Format, ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD FULL. BOOKS INTO AVAILABLE FORMAT, ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Negotiating to Win from a Position of Weakness

  1. 1. Negotiating from a Position of Weakness NASSCOM 2007 Prof. Deepak Malhotra Harvard Business School
  2. 2. Negotiating to win from a Position of Weakness NASSCOM 2007 Prof. Deepak Malhotra Harvard Business School
  3. 3. Why are we starting with Chapter 12? <ul><li>Introduction </li></ul><ul><li>Capturing Value in Negotiation </li></ul><ul><li>Creating Value in Negotiation </li></ul><ul><li>Information : How to Find Out What They Know </li></ul><ul><li>Mistakes People Make I: Cognitive Bias in Negotiation </li></ul><ul><li>Mistakes People Make II: Motivational Bias in Negotiation </li></ul><ul><li>Overcoming Bias </li></ul><ul><li>Strategies of Influence: How to get them to say “Yes” </li></ul><ul><li>Increasing your Strategic Awareness in Negotiation </li></ul><ul><li>Ethics in Negotiation </li></ul><ul><li>Strategies for Confronting Lies and Deception </li></ul><ul><li>Negotiating from a Position of Weakness </li></ul><ul><li>When Things Get Ugly: Dealing w/ Irrationality, Anger, Threats, Ultimatums, & Egos </li></ul><ul><li>When Not to Negotiate </li></ul><ul><li>Putting it into Practice </li></ul>
  4. 4. Story 1 <ul><li>“ In our business, potential customers constantly tell us that we have to lower our price, and that if we don’t lower it, they will go to our competitors. They do not seem to want to talk about anything other than price. And the fact of the matter is, they can go to our competitors and get a better price. How can we possibly negotiate a good deal in such situations?” </li></ul>
  5. 5. Story 2 <ul><li>“ I am involved in a dispute and the other side is threatening to sue. Their lawsuit is entirely frivolous, but if we go to court, they can continue to litigate until I go bankrupt. They have a lot of money and can easily afford a long court battle. What can I do?” </li></ul>
  6. 6. Story 3 <ul><li>“ My country is a small player on the world stage. When it comes to negotiating economic or political international agreements, we are constantly being pushed around. More powerful countries overlook our interests, and we practically have to plead for what we most desperately need. Is there some way to improve our position? </li></ul>
  7. 7. Negotiate Effectively… Even When You are Weak
  8. 8. The Roosevelt Campaign <ul><li>1912 – U.S. Presidential election </li></ul><ul><li>3 million copies photograph have been printed </li></ul><ul><li>Permission has not been granted. </li></ul><ul><li>Copyright law: owner can demand $1 per copy </li></ul><ul><li>No time to reprint brochure </li></ul><ul><li>Brochure is critical for the campaign </li></ul>
  9. 9. The Roosevelt Campaign <ul><li>Campaign manager sends telegram to copyright owner: </li></ul><ul><ul><li>&quot;Planning to print three million copies of campaign speech with photographs. Excellent publicity opportunity for photographers. How much are you willing to pay to use your photographs?&quot; </li></ul></ul><ul><li>Photographer’s reply: </li></ul><ul><ul><li>&quot;Appreciate opportunity, but can only afford to pay $250”. </li></ul></ul>
  10. 10. The Roosevelt Campaign <ul><li>Campaign manager sends telegram to copyright owner: </li></ul><ul><ul><li>&quot;Planning to print three million copies of campaign speech with photographs. Excellent publicity opportunity for photographers. How much are you willing to pay to use your photographs?&quot; </li></ul></ul><ul><li>Photographer’s reply: </li></ul><ul><ul><li>&quot;Appreciate opportunity, but can only afford to pay $250”. </li></ul></ul>
  11. 11. The Roosevelt Campaign <ul><li>Campaign manager sends telegram to copyright owner: </li></ul><ul><ul><li>&quot;Planning to print three million copies of campaign speech with photographs. Excellent publicity opportunity for photographers. How much are you willing to pay to use your photographs?&quot; </li></ul></ul><ul><li>Photographer’s reply: </li></ul><ul><ul><li>&quot;Appreciate opportunity, but can only afford to pay $250”. </li></ul></ul>
  12. 12. A Client: “QAR” <ul><li>QAR revenues: $300 million </li></ul><ul><li>85% of revenues based on relationship with Remus </li></ul><ul><li>Remus revenues: $3.25 billion </li></ul><ul><li>QAR is one of many regional distributors </li></ul>If Remus and QAR end their relationship: QAR Loss of Revenue Remus Loss of Revenue ~80% ~3%
  13. 13. The Case of “QAR” <ul><li>Define the “zone of possible agreement”. </li></ul><ul><li>Current momentum </li></ul><ul><li>Current Deal </li></ul><ul><li>Preferred Revenue Sharing </li></ul><ul><li>No constraints on strategy </li></ul><ul><li>No forced affiliation </li></ul><ul><li>Feared Outcome </li></ul><ul><li>Lose preferential revenue deal </li></ul><ul><li>Lose all flexibility </li></ul><ul><li>Forced affiliation </li></ul><ul><li>Lose $240 Million </li></ul>
  14. 14. But let’s do some analysis: If there is NO DEAL… <ul><li>QAR : </li></ul><ul><li>Loses 80% Revenue = $240M </li></ul><ul><li>Gains: </li></ul><ul><ul><li>+ Future business opportunities </li></ul></ul><ul><ul><li>+ Sovereignty </li></ul></ul><ul><ul><li>= ~ $50 million </li></ul></ul><ul><li>Net Loss if No Deal </li></ul><ul><li>$190 Million </li></ul>
  15. 15. The Case of “QAR” <ul><li>Define the “zone of possible agreement”. </li></ul><ul><li>Current momentum </li></ul><ul><li>Current Deal </li></ul><ul><li>Preferred Revenue Sharing </li></ul><ul><li>No constraints on strategy </li></ul><ul><li>No forced affiliation </li></ul><ul><li>Worst Case </li></ul><ul><li>You lose some revenue </li></ul><ul><li>You lose flexibility </li></ul><ul><li>Some affiliation </li></ul><ul><li>Lose $190 Million </li></ul>Feared
  16. 16. Some analysis: If there is NO DEAL… <ul><li>REMUS : </li></ul><ul><li>Loses 3% Revenue = $100M </li></ul><ul><li>Also Lose: </li></ul><ul><ul><li>+ Political connections </li></ul></ul><ul><ul><li>+ Reputation </li></ul></ul><ul><ul><li>= ~ $20 million </li></ul></ul><ul><li>Net Loss if No Deal </li></ul><ul><li>$120 Million </li></ul><ul><li>QAR : </li></ul><ul><li>Loses 80% Revenue = $240M </li></ul><ul><li>Gains: </li></ul><ul><ul><li>+ Future business opportunities </li></ul></ul><ul><ul><li>+ Sovereignty </li></ul></ul><ul><ul><li>= ~ $50 million </li></ul></ul><ul><li>Net Loss if No Deal </li></ul><ul><li>$190 Million </li></ul>
  17. 17. The Case of “QAR” <ul><li>Define the “zone of possible agreement”. </li></ul><ul><li>Current momentum </li></ul><ul><li>Current Deal </li></ul><ul><li>Preferred Revenue Sharing </li></ul><ul><li>No constraints on strategy </li></ul><ul><li>No forced affiliation </li></ul><ul><li>Best Case </li></ul><ul><li>Even more revenue </li></ul><ul><li>More freedom </li></ul><ul><li>Gain $120 Million </li></ul><ul><li>Worst Case </li></ul><ul><li>You lose some revenue </li></ul><ul><li>You lose flexibility </li></ul><ul><li>Some affiliation </li></ul><ul><li>Lose $190 Million </li></ul>
  18. 18. The Case of “QAR” <ul><li>Define the “zone of possible agreement” . </li></ul><ul><li>Current Deal </li></ul><ul><li>Preferred Revenue Sharing </li></ul><ul><li>No constraints on strategy </li></ul><ul><li>No forced affiliation </li></ul><ul><li>Best Case </li></ul><ul><li>Even more revenue </li></ul><ul><li>More freedom </li></ul><ul><li>Gain $120 Million </li></ul><ul><li>Worst Case </li></ul><ul><li>You lose some revenue </li></ul><ul><li>You lose flexibility </li></ul><ul><li>Some affiliation </li></ul><ul><li>Lose $190 Million </li></ul>
  19. 19. The Case of “QAR” <ul><li>Define the “zone of possible agreement” . </li></ul><ul><li>Change momentum? </li></ul><ul><li>Current Deal </li></ul><ul><li>Preferred Revenue Sharing </li></ul><ul><li>No constraints on strategy </li></ul><ul><li>No forced affiliation </li></ul><ul><li>Best Case </li></ul><ul><li>Even more revenue </li></ul><ul><li>More freedom </li></ul><ul><li>Gain $120 Million </li></ul><ul><li>Worst Case </li></ul><ul><li>You lose some revenue </li></ul><ul><li>You lose flexibility </li></ul><ul><li>Some affiliation </li></ul><ul><li>Lose $190 Million </li></ul>
  20. 20. The Case of “QAR” <ul><li>Define the “zone of possible agreement”. </li></ul><ul><li>Change momentum </li></ul><ul><li>Current Deal </li></ul><ul><li>Preferred Revenue Sharing </li></ul><ul><li>No constraints on strategy </li></ul><ul><li>No forced affiliation </li></ul><ul><li>Best Case </li></ul><ul><li>Even more revenue </li></ul><ul><li>More freedom </li></ul><ul><li>Worst case </li></ul><ul><li>You lose some revenue </li></ul><ul><li>You lose flexibility </li></ul><ul><li>Some affiliation </li></ul>Reset expectations Reset the “anchor” <ul><li>- Full flexibility and No affiliation is the default </li></ul><ul><li>Stop apologizing, Stop saying “yes sir”, keep acting! </li></ul><ul><li>This is a negotiation – demand compensation for concessions </li></ul>
  21. 21. Lessons from Roosevelt & QAR <ul><li>Don’t reveal the weakness of your alternatives </li></ul><ul><li>Having weak alternatives is not so bad if the other side’s alternative is also weak </li></ul><ul><li>Being weak is bad. Feeling weak can be fatal. </li></ul><ul><li>The person who defines the negotiation, wins the negotiation </li></ul><ul><li>Change the focus of the negotiation to be about: </li></ul><ul><ul><li>The weakness of their alternatives </li></ul></ul><ul><ul><li>The value you bring to the table </li></ul></ul><ul><ul><li>Pricing example: Cost Plus OR Value Driven? </li></ul></ul><ul><li>This works if you identify and leverage your Distinct Value Proposition </li></ul>
  22. 22. Make Your Distinct Value Proposition a Factor in the Negotiation
  23. 23. Beating the Price-Only Auction <ul><li>Should I submit a low-cost/low-value bid, or a high-cost/high value bid? </li></ul><ul><ul><li>Submit multiple bids simultaneously </li></ul></ul><ul><li>Negoti-auctions </li></ul><ul><ul><li>Lower your bid just enough to make it to the 2 nd round </li></ul></ul><ul><li>Purchasing agent cares only about low price </li></ul><ul><ul><li>Go around the agent with a CC to principal </li></ul></ul><ul><ul><li>Do a Post-Settlement Settlement with the principal </li></ul></ul><ul><li>Communicate with your customers… </li></ul><ul><ul><li>When there is no money on the table </li></ul></ul><ul><ul><li>Possibly preempt the auction </li></ul></ul><ul><li>Not everyone is your customer. Have the difficult conversation. </li></ul><ul><ul><li>“ Is it the case that you will pick the lowest price option regardless of the entire package someone offers? Do you have any interests other than price?” </li></ul></ul><ul><li>A thought experiment… </li></ul>
  24. 24. If You Can’t Leverage Your Strength, Leverage Your Weakness!
  25. 25. Romania <ul><li>Paris 1919 </li></ul><ul><li>Allied Forces in charge </li></ul><ul><li>Redrawing geographic boundaries </li></ul><ul><li>Age old principle: to the victor belong the spoils </li></ul><ul><li>The case of Romania seems to be an exception </li></ul>
  26. 26. The Dispute <ul><li>South American distributor’s perspective: </li></ul><ul><ul><li>Old models are being dumped in S. America </li></ul></ul><ul><ul><li>Manufacturer then illegally terminated the agreement </li></ul></ul><ul><ul><li>CLAIM: Want $8 million (lost profits, reputation damage, $s invested) </li></ul></ul><ul><li>US manufacturer’s perspective: </li></ul><ul><ul><li>Distributor did not order the minimum amount required in Year 1 </li></ul></ul><ul><ul><li>Distributor did not have distribution channel set up as initially claimed </li></ul></ul><ul><ul><li>Distributor still owes us $125,000 for products already delivered </li></ul></ul><ul><ul><li>CLAIM: We want to end the agreement and collect our $125,000 </li></ul></ul>
  27. 27. The Dispute <ul><li>Who has more power? </li></ul><ul><ul><li>U.S. manufacturer is 1000 times bigger than the distributor </li></ul></ul><ul><ul><li>Legal experts agree: US manufacturer’s case is stronger </li></ul></ul><ul><ul><li>If litigate, the case will be heard in a U.S. court </li></ul></ul><ul><li>What was the final Agreement? </li></ul><ul><li>Agreement: </li></ul><ul><ul><li>U.S. manufacturer will pay $1 million to the distributor </li></ul></ul><ul><ul><li>Manufacturer will give the distributor exclusive right to sell new product (and future products) in a few key regions of South America </li></ul></ul>
  28. 28. Lessons from Romania & Prosando <ul><li>Weakness can be a strength </li></ul><ul><li>They might need for you to survive and be successful </li></ul><ul><li>Key Insight: </li></ul><ul><ul><li>Your Power is not simply based on the strength of your alternatives… more fundamentally, your Power is determined by you ability to create value for others </li></ul></ul><ul><li>Consider the case of a small firm in the pharmaceutical industry… </li></ul><ul><ul><li>A small player negotiating with a large pharmaceutical firm </li></ul></ul><ul><ul><li>After deal is done, he decides to squeeze them for more money! </li></ul></ul>
  29. 29. Student Profile <ul><li>“ I had agreed…to sell the rights to 8 different drugs I have in development… I had negotiated for five straight days on this deal and it closed…before the Harvard course. After your classes I call up the pharmaceutical company that is buying the rights and said that I needed more money up front - The company was taken aback by my call. </li></ul><ul><li>However… I used this opportunity to explain exactly &quot;why&quot; I wanted different terms . Once they heard my rationale, that I wanted the money to start more projects, that I wanted the money to help me with cash flow and that I wanted the money to be able to go to some angel investors to raise even more money, they understood. All they wanted in return was a right of first refusal on any future projects I develop with the additional cash flow in the next two years.  </li></ul><ul><li>Now instead of using a line of credit to support all these development programs, I have 3-4 more projects which I will start  this summer vs. end of 05'. And both sides have a better value under these terms …” </li></ul>
  30. 30. Student Profile <ul><li>“ I had agreed…to sell the rights to 8 different drugs I have in development… I had negotiated for five straight days on this deal and it closed…before the Harvard course. After your classes I call up the pharmaceutical company that is buying the rights and said that I needed more money up front - The company was taken aback by my call. </li></ul><ul><li>However… I used this opportunity to explain exactly &quot;why&quot; I wanted different terms . Once they heard my rationale, that I wanted the money to start more projects, that I wanted the money to help me with cash flow and that I wanted the money to be able to go to some angel investors to raise even more money, they understood. All they wanted in return was a right of first refusal on any future projects I develop with the additional cash flow in the next two years.  </li></ul><ul><li>Now instead of using a line of credit to support all these development programs, I have 3-4 more projects which I will start  this summer vs. end of 05'. And both sides have a better value under these terms …” </li></ul>
  31. 31. Sick of Playing by Their Rules? Change the Game
  32. 32. Changing the Game <ul><li>Attack the source of their power </li></ul><ul><ul><li>Planned Parenthood </li></ul></ul>
  33. 33. Planned Parenthood <ul><li>A recurring problem – anti-abortion protestors </li></ul><ul><li>How might the clinics deal with this problem? </li></ul><ul><li>The “Pledge-a-Picket” program. </li></ul><ul><ul><li>Clinic asks supporters to pledge donations on a per protestor basis. </li></ul></ul><ul><ul><li>The more protestors that show up, the more money the clinic raises! </li></ul></ul><ul><ul><li>One clinic has even posted a sign that reads: “Even Our Protesters Support Planned Parenthood” . </li></ul></ul>
  34. 34. Changing the Game <ul><li>Attack the source of their power </li></ul><ul><ul><li>Planned Parenthood </li></ul></ul>
  35. 35. Changing the Game <ul><li>Attack the source of their power </li></ul><ul><ul><li>Planned Parenthood </li></ul></ul><ul><li>Don’t try to block their punch </li></ul>
  36. 36. Changing the Game <ul><li>Attack the source of their power </li></ul><ul><ul><li>Planned Parenthood </li></ul></ul><ul><li>Don’t try to block their punch </li></ul><ul><ul><li>A Last Minute Demand </li></ul></ul>
  37. 37. Student Profile <ul><li>The CEO of a construction company negotiating with a buyer </li></ul><ul><li>Negotiations had been going on for weeks </li></ul><ul><li>Just before the contract was signed—a last minute demand: </li></ul><ul><ul><li>If the project is not completed by the deadline, the construction company must pay a very hefty penalty for each month of delay </li></ul></ul><ul><li>The CEO was surprised—and angry. </li></ul><ul><li>To make matters worse, the CEO was desperate to do the deal. </li></ul><ul><li>How would you, as CEO, handle this situation? </li></ul>
  38. 38. Changing the Game <ul><li>Attack the source of their power </li></ul><ul><ul><li>Planned Parenthood </li></ul></ul><ul><li>Don’t try to block their punch </li></ul><ul><ul><li>A Last Minute Demand </li></ul></ul>
  39. 39. Changing the Game <ul><li>Attack the source of their power </li></ul><ul><ul><li>Planned Parenthood </li></ul></ul><ul><li>Don’t try to block their punch </li></ul><ul><ul><li>A Last Minute Demand </li></ul></ul><ul><li>If you have no power, don’t play the power game </li></ul>
  40. 40. Changing the Game <ul><li>Attack the source of their power </li></ul><ul><ul><li>Planned Parenthood </li></ul></ul><ul><li>Don’t try to block their punch </li></ul><ul><ul><li>A Last Minute Demand </li></ul></ul><ul><li>If you have no power, don’t play the power game </li></ul><ul><ul><li>Einstein at the bargaining table </li></ul></ul>
  41. 41. Would you take a Group of Juvenile Delinquents to the Zoo? 17% 17% 50%
  42. 42. A Final Example… <ul><li>Subway Sandwich Shop </li></ul><ul><li>Man walks in and orders a sandwich </li></ul><ul><li>Then he takes out a gun and points it at the cashier </li></ul><ul><li>“ Give me all the money that is in the cash register” </li></ul><ul><li>Cashier Responds: </li></ul><ul><ul><li>“ How about $10 and the sandwich?” </li></ul></ul><ul><li>The eventually agree on $20 and the sandwich </li></ul>
  43. 43. Power Corrupts Absolute Power Corrupts Absolutely Effective Negotiators Don’t Have to Worry
  44. 44. Power Corrupts Absolute Power Corrupts Absolutely Effective Negotiators Don’t Have to Worry
  45. 45. Power Corrupts Absolute Power Corrupts Absolutely Trained Negotiators (and stupid cashiers) Don’t Have to Worry

×