How to incorporate best practices from business negotiations into consultation - Toufan Rahimpour

How to incorporate best practices from business
negotiations into consultation  
 
LEARNSHOP
Toufan Rahimpour

Consult like a
tycoon
How to incorporate best practices
from business negotiations into
consultation
Presented by Toufan Rahimpour
13 May 2016
EBBF Milan

“Say: No man can attain his true
station except through his
justice. No power can exist
except through unity. No
welfare and no well-being can be
attained except through
consultation.
- Baha’u’llah

“Nothing whatever can, in this
Day, inflict a greater harm upon
this Cause than dissension and
strife, contention, estrangement
and apathy, among the loved
ones of God
- Baha’u’llah

How happy are you
with the outcome?

How happy are you
with the interaction
between you and
your partner?

At the bottom of your sheet,
there is a points table
For each couple, add your points
together to get the team total
For example, if Liz has 3 points
and Carrie has 3 points, your team
total would be 6 points.

Now that you
know….
How happy are you
with the outcome?

Now that you
know….
How happy are you
with the interaction
between you and
your partner?

“If they agree upon a
subject, even though it
be wrong, it is better
than to disagree and be
in the right…
- Abdu’l Baha

AAAAAAAAAAAAAAAAAAAA
AAAAAAAAAAAAAAAAAAAA
AAAAAHHHHHHHHHHHH!!!!
THE
COMPROMISE
MONSTER

Reflection
Gathering
Reflection
Gathering

Reflection
Gathering
Reflection
Gathering
Reflection
Gathering

It was specifically
designed to force a
compromise

1. You had to process a lot of
background information in very
little time

little time
1. You were rushed through the actual
consultation/negotiation

little time
1. You were rushed through the actual
consultation/negotiation
2. You’re in an environment where
you’re trying to be kind

4. The rules were very ambiguous
(and mostly non-existent)

4. You were (indirectly) asked to not
share all the information

4. You were (indirectly) asked to not
share all the information
4. Most of you are neither expert
bakers nor lemonade aficionados

7. Your characters have a history
together, and will continue to have
a future relationship

8. This was an emotionally volatile
scenario

8. This was an emotionally volatile
scenario
9. You were encouraged to think of
the goal as maximizing your points

So, as you can see,
you were tricked into
playing a clearly
rigged game…

So, as you can see,
you were tricked into
playing a clearly
rigged game…
…or were you?

1. You had to process a lot of background information in very little
time
1. You were rushed through the actual consultation/negotiation
2. You’re in an environment where you’re trying to be kind
4. The rules were very ambiguous (and mostly non-existent)
4. You were (indirectly) asked to not share all the information
4. Most of you are neither expert bakers nor lemonade
aficionados
7. Your characters have a history together, and will continue to
have a future relationship
8. This was an emotionally volatile scenario
9. You were encouraged to think of the goal as maximizing your
points

TODAY’S TAKEAWAYS
how to succeed in negotiations/consultation
1. Tame the compromise monster

Let’s play another quick game

I’m going to put 15 seconds on
the clock
The goal is to see how many
“wins” you and your partner can
get

TODAY’S TAKEAWAYS
2. Recognize that most of the time, you’re in
this together

You are ready to purchase a shirt you really like
from Excelsior for €50. You had found the shirt
online, but decided to purchase it in the store.
As you’re about to pay, the salesperson tells
you “I probably shouldn’t tell you this, but
they’re having a sale at La Rinascente, and
they are selling this exact same shirt for €25.”
La Rinascente is on the other side of the
shopping centre, and it’s an 8 minute walk to
get there

You are ready to purchase a state-of-the-art,
Apple Mac Pro Tower plus Retina Studio Display
from the Apple Store in Milan for €5.000. You
chose all the options online, but decided to
purchase it in the store. As you’re about to pay,
the salesperson tells you, “I really shouldn’t tell
you this, but they’re having a sale at Media
Markt, and they are selling this exact same
package for €4.975.”
Media Markt is on the other side of the shopping
centre, and it’s an 8 minute walk to get there

Question:
Do you go to the other store?

You are ready to purchase a shirt
you really like from Excelsior for
€50. You had found the shirt
online, but decided to purchase it
in the store. As you’re about to
pay, the salesperson tells you “I
probably shouldn’t tell you this,
but they’re having a sale at La
Rinascente, and they are selling
this exact same shirt for €25.”
La Rinascente is on the other
side of the shopping centre, and
it’s an 8 minute walk to get there
You are ready to purchase a
state-of-the-art, Apple Mac Pro
Tower plus Retina Studio Display
from the Apple Store in Milan for
€5.000. You chose all the
options online, but decided to
purchase it in the store. As
you’re about to pay, the
salesperson tells you, “I really
shouldn’t tell you this, but they’re
having a sale at Media Markt, and
they are selling this exact same
package for €4.975.”
Media Markt is on the other side
of the shopping centre, and it’s an
8 minute walk to get there

8 minute walk = save €25
8 minute walk = save €25

8 minute walk = save 50%
8 minute walk = save 0,5%

TODAY’S TAKEAWAYS
this together
3. Whenever presented with numbers, absolute
is important

Let’s think about Linda, a 31-year-old woman,
single and bright. When she was a student, in
high school and in college too, she was deeply
involved in social justice issues, and also
participated in environmental issues. Which of
these is most probable about Linda’s occupation
today?
a) Linda works as a TV reporter;
b) Linda is a bank teller;
c) Linda is a bank teller, and she’s very active in
the environmental movement.

Let’s vote!
A) Linda works as a TV reporter

Let’s vote!
B) Linda is a bank teller

Let’s vote!
C) Linda is a bank teller, and
she’s very active in the
environmental movement.

But wait!
This blue circle
represents everybody
on earth

But wait!
This yellow circle
represents all the bank
tellers

But wait!
This green circle
represents all the bank
tellers that are very
active in the
environmental
movement

Looking back at the question…
Let’s think about Linda, a 31-year-old woman,
single and bright. When she was a student, in
high school and in college too, she was deeply
involved in social justice issues, and also
participated in environmental issues. Which of
these is most probable about Linda’s occupation
today?
a) Linda works as a TV reporter;
b) Linda is a bank teller;
c) Linda is a bank teller, and she’s very active in
the environmental movement.

TODAY’S TAKEAWAYS
this together
is important
4. Make sure assumptions are supported by
evidence

One last game
1. Let’s start with €500 on the table. In Round 1, Player A
offers to split the money with player B (however he sees
fit)
2. Player B can accept or refuse this offer. If he/she
accepts, then the two of you split the money as agreed
on, and the game is over and you both take your money
3. If Player B refuses, then half of the money disappears
and there is €250 remaining on the table. It’s now
Player B’s turn to make an offer of how to split the
money.

One last game
€500 €250 €125 €0Pot
Round 1 2 3 4
A B A --Player

Here’s an example
Hey Jim. My offer is that I keep
€100 and you take €400

Here’s an example
Agreed!

Here’s an example
Agreed!
Result: Game over. Player A gets €100 and Player B gets €40

Here’s an example

Here’s an example
I don’t think so!

Here’s an example
I don’t think so!
Because they couldn’t come to an agreement, half of the
money disappears. Now, there’s only €250 to work with,
and it’s player B’s turn to make an offer

Here’s an example
I don’t think so!
OK, now we have €250 left. I
propose I keep €200 and you
take €50

Here’s an example
I don’t think so!
OK, now we have €250 left. I
propose I keep €200 and you
take €50
Ok, fine.

One last game
This game is taught in traditional
business negotiations courses and it
highlights three points

One last game
1. People often act irrationally

One last game
2. Spite is bad

One last game
2. Spite is bad
3. Know your (and your partner’s)
BATNA

One last game
For those that are interested, the
“textbook” answer is that Player A
should offer €126 in the first
round. And player B should accept.

One last game
How do we get to €126?

One last game
€500 €250 €125 €0Pot
Round 1 2 3 4
A B A --Player
BATNA+

One last game
€500 €250 €125 €0Pot
Round 1 2 3 4
A B A --Player
BATNA+ €1 (B)
€124 (A)

One last game
€500 €250 €125 €0Pot
Round 1 2 3 4
A B A --Player
BATNA+ €1 (B)
€124 (A)
€125 (A)
€125 (B)

One last game
€500 €250 €125 €0Pot
Round 1 2 3 4
A B A --Player
BATNA+ €1 (B)
€124 (A)
€125 (A)
€125 (B)
€126 (B)
€374 (A)

One last game
If you’re ever offered €126, no
strings attached, it’s probably wise
to take it

TODAY’S TAKEAWAYS
this together
is important
4. Make sure assumptions are supported by
evidence
5. Spite has no place in negotiations

Our views on equality are often in accordance with
principles of justice

1. Are we simply compromising so that we can
move on? Or is this genuinely a better
solution?
2. Mutual vs. Individual benefit
3. Position or Interest?
4. What other things can we introduce?
5. Improv rules. “No” is a bad word
THE HOW (from Justice Conference in DePoort)

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