Negotiation Skills as Core Leadership competency; What Does it Mean to Be an “Effective Negotiator”; Major Traps of Negotiation; Negotiation Myths; Why are people ineffective negotiators; Principles of the Negotiator

1. High Performance
Negotiation Skills
MGS 4311 August 30, 2015

2. Course Deliverables
• Experimental learning
• Clear, immediate, and helpful feedback
• Strategies and toolbox for negotiation
August 30, 2015
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3. Negotiation Skills as Core
Leadership competency
• Key communication & influence tool for interdependent
relationships (in & outside the company)
• Most people not very good at negotiation (e.g., over 80%
of corporate executives and CEOs leave money on the
table)
• People don’t realize this
• Our challenge is to dramatically improve ability to:
▫ Create value
▫ Claim value
▫ Build trust
• Research basis in economics and psychology
August 30, 2015
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4. What Does it Mean to Be an
“Effective Negotiator”?
• Individual level
▫ Getting valued resources (money, people, projects)
▫ Maintaining & building relationships
▫ Enhancing your reputation
▫ People trust you
▫ Enjoying peace of mind
• Company level
▫ Profitable deal making (effective sales force)
▫ Getting positive (rather than negative) press
▫ Enhancing reputation of company
▫ Building the brand
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5. Major Traps of Negotiation
• Leaving money on the table
(lose-lose negotiation)
• Settling for too little
(Winners curse)
• Walking away from the table
(hubris)
• Settling for terms that are worse than your
current situation
(agreement bias)
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6. Negotiation Myths
Myth 1: Negotiations are fixed-sum
Myth 2: You need to be either tough or soft
Myth 3: Good negotiators are born
Myth 4: Experience is a great teacher
Myth 5: Good negotiators take risks
Myth 6: Good negotiators rely on intuition
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7. Why are people ineffective
negotiators?
• Faulty feedback
▫ Confirmation bias
▫ Egocentrism
• Satisficing
• Self-Reinforsing incompetence
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8. Principled Negotiator!!!
• PEOPLE - separate people from the problem
• INTERESTS - focus on interests, not positions
• OPTIONS - generate a variety of possibilities
before deciding what to do
• CRITERIA - insist that result be based on some
objective standards
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9. Learning Objectives
• Improved ability to negotiate
• General strategy (mental model) for successful
negotiation
• Enlightened model for negotiation
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10. What Have You Gotten Yourself Into?
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PreparationPreparation
Team negotiationTeam negotiation
Coalition analysisCoalition analysis
You Other party
Primary
table
Info &
communication
Secondary
table
Agents &Agents &
third partiesthird parties
Integrative skillsIntegrative skills
FairnessFairness
Distributive skillsDistributive skills
FeedbackFeedback
ExperienceExperience
ExpertiseExpertise
GroupGroup
negotiationnegotiation