Strategy_Development.pptx

Strategy Development
Dr. Dimitrios P. Kamsaris

• Start: 8:00
• Break: 10:30-10:45
• Break: 12:30-12:45
• Finish: 14:00

• Make connections and build your network.
• Who am I?
• What is my education and training?
• What are my hobbies?
• What is my work experience?
• What is my current position?
• What do I do?
• How do I do it?
• Why do I do it?
• What is my goal?
• What is the Strategy and its purpose?
• What do I want to learn from this course?
Elevator Pitch

• Corporate strategy
• When clearly defined,
• establish the overall value of a business,
• set strategic goals and
• motivate employees to achieve them.
• continuous process
• tailored to respond appropriately to
• changing conditions in the marketplace.
• Components involved in developing a
corporate strategy.
• visioning,
• objective setting,
• resource allocation,
• prioritization.
Corporate strategy

Corporate strategist
• Those professionals who
• aspire to set forth strategies
• to enhance and strengthen the businesses they help lead can learn the
contextual principles needed to distinguish themselves.
• Impact your organization’s corporate strategy in a leadership or
expert role.

Levels of corporate strategy
• corporate strategy level
• business strategy level
• functional strategy level
• Effective corporate strategy is founded upon honest self-
evaluation, which is derived by asking key questions about
your business:
• what is the current state of your company?
• where do you want your company to be in the next three to five
years?
• how does your company get there?
• what people, resources and finances are best capable of helping
your company arrive there?

Key Components Of Corporate Strategy

1. Visioning
• plan 3-5 years in the future
• involve as many key personnel in the visioning process
• to foster a higher level of commitment and teamwork.
• In creating a corporate vision statement,
• the primary goal should be to respond to
• how the leadership sees the company evolving in the future.

2. Objective Setting
• Strategic objectives are the big-picture goals for the company:
o they describe what the company will do to try to fulfill its mission.
• allows a company to measure its progress.
• Clearly communicating these objectives to personnel
• ensures that everyone is focused on the highest-priority tasks and
• is operating under the same assumptions about the company's future.

3. Resource Allocation
• decisions that concern the most efficient allocation of
o human and capital resources
o in the context of stated goals and objectives.
• involves
o planning,
o managing and
o assigning resources
o in a form that helps to reach a company’s strategic goals.
• Leaders must determine
o how to allocate these resources to the various businesses or business units to make the whole greater
than the sum of the parts.

4. Prioritization or Strategic Tradeoffs
• Prioritization (identifying strategic tradeoffs):
omost challenging aspects of corporate strategy.
• It’s not always possible to take advantage of all feasible opportunities,
oBusiness decisions involve a degree of risk,
ocompanies need to take these factors into account in arriving at the optimal strategic mix.
• Companies must
obalance the strategic tradeoffs between risk and return and
oensure that the desired levels of risk management and return generation are being
pursued.

Identify Critical Success Factors
• Many tasks simultaneously,
• difficult identifying the critical success factors.
• Certain tasks would leverage others to come to fruition
• other tasks are necessary for the overall execution,
• it is overwhelming to focus on the key result areas (KRAs).
• KRAs can also be referred to as the critical success factors.
• Two concepts
• success criteria and
• critical success factors.

Critical Success Factors
• Success factors
• components that have to be put in place to ensure the
completion.
• create an enabling environment for the project to exist.
• Metrics for measuring the success at the end of its
lifecycle.
• Critical success factors:
• key areas in which satisfactory results would ensure the
successful competitive performance for the organization
• key areas where things must go right for the business to flourish.

Major Reasons Why Projects Fail
• No support or commitment from top-level management.
• Risk identification and risk management is ignored. Risk
assessment is prerequisite to
• reducing the odds of negative event occurring and
• help minimize the scale on which it occurs.
• Poorly defined project scope.
• Scope: technical description of work, covering development, quality
assurance, and maintenance.
• Absence of ownership
• systematic planning, coordination, and monitoring with a view to
encouraging synergy and collaboration amongst team members.
• Non-practical schedules and non-feasible budgets.
• result of not looking at financial reports from similar projects
completed in the past.

Critical Success Factors
• Stimulate commitment: team, clients, top management, stakeholders.
• Ensure that goals and deliverables are specific, measurable,
attainable, Relevant and time-bound (SMART).
• Agree on process for quick identification and resolution of conflicts.
• Good leadership should be established
• Best practices should be applied at every phase
• Proper risk management policies, established from the start.
• Proper project planning. Keeps us organized.
• Communication, way via which tasks are assigned and monitored, and
goals, performance, and feedback are passed across.

Steps To Identifying Critical Success Factors
• Agree on goals – there has to be consensus.
• Perform a cross examination of your project’s individual goals;
• identify what goals are crucial and which ones perform a “supporting” role.
• Trim the list of nominated goals to the very critical
• Decide on how the metrics for measuring the progress of the critical
goals and how they would be monitored.
• Communicate this with stakeholders to ensure that everyone is on
the same page and knows what tasks have priority.
• Critical success factors for each recorded and documented so they
could be referred to in subsequent similar projects.

Strategic planning
• How often should strategic planning be done:
• Quarterly reviews,
• Annual reviews
• Steps in the strategic planning process
• Identify,
• Prioritize,
• Develop,
• Implement,
• Update.

Strategic planning
• Strategic Implementation and Getting the Value out of Strategy
• Strategic Thinking
• Alignment of strategy, culture, structure and people
• Effective execution - Converting Strategic Analysis and Planning into Action
• Aligning and linking strategy with operational objectives

Mission Statement
• Mission statement
• expresses company’s core values and purpose.
• concise phrase (3 sentences) that sets forward
• what the company does,
• how it does it, and
• why.
• include info on
• where the company is based,
• its target market or audience,
• general statement about the company values and goals.
• Audience for a mission statement
• consumers, employees, and investors.
• Mission statement is closely related to company’s
vision statement.

Mission Statement
• Mission statement drives the company
• short summary of an organization’s core purpose, focus, and aims.
• brief description of what organization does and its key objectives.
• what an organization does every day,
• defining the day-to-day activities of work, and
• each person who works for the organization contributes to overall mission.
• outlines both what you do and what comprises the core of the business,
• objectives are made clear, followed finally by
• what it takes to reach those objectives.
• motivates a team to consistently advance toward a common goal.
• establish a framework for the behavior
• “We provide…”, “We offer…”, “We are a…”.
• used as a basis for performance standards,

Guide mission statements
• Questions that guide mission statements include:
• What do we do?
• Whom do we serve?
• How do we serve them?

Mission Statement vs. Vision Statement
• Purpose:
• MS: describes what, how. Serve as a roadmap of strategic planning
• VS: focuses the why or meaning behind the company’s actions.
• Timeframe:
• MS: outlines things company is doing in present to reach your goal,
• VS: describes what your company is building toward in the future.
• Audience:
• MS: public-facing statements primarily geared toward consumers.
Offer a sense of cohesiveness for daily decision-making.
• VS: focused on employees of the company to help drive their work in
the best direction for the future.

Vision Statement
• Vision statement:
• describes the future-facing goals and ambitions of company.
• distills company’s vision for the future
• outlines long-term goals and, reflects core values.
• guide that inspires to work toward the greater goal.
• short description of an organization’s aspirations and the
wider impact it aims to create.
• sets the ground for internal decision-making and
determines the intended direction.
• meant to be a clear, definitive statement of what an
organization wants to accomplish, and what the world will
look like once they have accomplished that mission.

Guide vision statements
• Questions that guide vision statements include:
• What are our hopes and dreams for the company?
• What problem are we solving for the greater good?
• Who and what are we inspiring to change?

Starbucks
• Starbucks Mission:
• “to inspire and nurture the human spirit—one person, one cup, and
one neighborhood at a time.”
• It suggests their business model (“one cup” of coffee), their audience
(you and your community), and their core value (“to inspire and
nurture the human spirit”).
• Starbucks Vision:
• “to establish Starbucks as the premier purveyor of the finest coffee in
the world while maintaining our uncompromising principles while we
grow.”
• Their statement is short and highlights their unique identity and
product in an ambitious, far-reaching way.

Disney
• Disney Mission:
• “to entertain, inform, and inspire people around the globe through the
power of unparalleled storytelling, reflecting the iconic brands, creative
minds and innovative technologies that make ours the world’s premier
entertainment company.”
• It’s a longer mission statement to encompass the wide variety of fields
that Disney works in—including storytelling, branding, technology, and
entertainment.
• Disney Vision:
• “to be one of the world’s leading producers and providers of
entertainment and information.”
• The statement is concise, and adopts ambitious worldwide goals,
extending their product reach beyond entertainment—which is what
they’re known for—into information.

Tesla
• Mission Statement:
• To create the most compelling car company of the 21st century by
driving the world’s transition to electric vehicles.
• Vision Statement:
• To accelerate the world’s transition to sustainable energy.
• Why it Works:
• Their mission statement clearly defines their core goal, then
communicates how they intend to accomplish that goal.
• Its vision statement uses clever diction to enliven their lofty aspiration
and showcases their drive for sustainable energy and how that goal
steers the organization.

Amazon
• We strive to offer our customers the lowest possible prices, the best
available selection, and the utmost convenience.
• To be Earth’s most customer-centric company, where customers can
find and discover anything they might want to buy online.
• Why it Works:
• Amazon’s mission statement summarizes the three things that has
driven the astronomical success of the company: low prices, a huge
selection, and incredible convenience.
• All great mission statements shine a light on the values that bring
success. It’s vision statement effectively brings all these elements
together, communicating one unified goal.

Nike
• Create ground–breaking sports innovations, make our products sustainably,
build a creative and diverse global team, and make a positive impact in
communities where we live and work.
• Bring inspiration and innovation to every athlete* in the world.
• *If you have a body, you are an athlete.
• Why it Works:
• Their mission statement effectively summarizes what the company aims to do
and how they aim to do it. It uses diction that outlines the company’s
underlying values: innovation, sustainability, diversity, and community. It is
the vision, however, that drives the success of these statements.
• While capturing the goal for Nike as a brand, it also stands up against body-
shaming and is a powerful call for inclusion.
• Resultantly, their vision statement is transformed into a moving sentiment
that resonates with all who read it.

TED
• Spread ideas.
• We believe passionately in the power of ideas to change attitudes,
lives and, ultimately, the world.
• Why it Works:
• With such a simple, highly focused mission statement, the TED
(technology, education, and design) brand focuses all of their everyday
efforts into two powerful words that have driven the company to
become a global phenomenon.
• In their vision statement, they clearly outline what they hope to
achieve on a grander scale with the efforts put forward by the
organization on an everyday basis.

IKEA
• Offer a wide range of well-designed, functional home furnishing
products at prices so low that as many people as possible will be
able to afford them.
• To create a better everyday life for the many people.
• Why it Works:
• IKEA’s mission statement is clear and to the point, using words
that embody the attributes of functionality, affordability, and
design that IKEA products have.
• Their vision statement focuses their mission statement onto one
singular purpose, and both statements employ inclusive phrasing
that emphasizes the organization’s commitment to being
accessible.

Strategic Planning Model
• Strategic planning model
• elements that contribute to strategic planning process.
• Components of a strategic planning model include:
• A template structure for creating goals.
• Frameworks to help decide what you want to work on.
• A loose structure of governance to help you
manage and track your strategy.
• You can think of strategic planning models as
“templates” into which you can drop your own ideas.
• In the end, you'll come out with a strategic plan which is
sensibly structured and gives you a clear set of actions
upon which to work.

Strategic Planning Models provide structure
• Strategic planning model refers to the
• overall structure you apply to your strategic planning process.
• roughly describes the various components and
• how they interact with one another.
• Example: architect building an airport.
• A model of the airport would show you at a high level how the
approach roads connect to the departure hall and how the
departure hall connects to immigration, which then connects to
the terminals, the runways, etc.
• Strategic planning model functions much the same way in
that it describes each of the elements of a coherent
strategy:
• What they do
• How they fit together and
• In what order

Strategic Planning Frameworks provide principles
• Strategic planning framework
• conceptual approach you bring to populating your
strategic plan.
• Example
• apply a building frame designed to maximize the speed at
which people move through the airport for efficiency.
• apply a framework designed to maximize the amount of
time people spend in the airport shops.
• They are two approaches to building airport.
• Hence, two different frameworks.
• However, both frameworks could use the same overall
model.

What to choose first
• What to choose first:
• the strategic planning model or framework
• Strategic planning models provide
• way to structure the info of your strategy,
• content of your strategic plan.
• Strategic planning frameworks provide
• context that surrounds strategic plan,
• info that helped define strategy.
• Start by selecting strategic planning model.
• Then, select your strategic planning framework.

Strategic planning frameworks
• Examples of strategic planning frameworks:
• Balanced Scorecard
• SWOT Analysis
• McKinsey's Three Horizons of Innovation
• The Stakeholder Theory
• Every organization is unique.
• Thus, every strategic plan is unique.
• All strategic planning model examples below are framework
uncertain.
• regardless of which strategic planning model you choose,
• you can apply any number of frameworks to help you actually
come up with your goals!

Strategic Planning Example: The Cascade Model
The structural elements of the Cascade strategic model
1. Identify your vision statement
• This statement describes why the organization exists, i.e., its basic purpose.
2. Define your company’s values
• Describe how you want your organization to behave as it strives towards its Vision.
3. Craft your Focus Areas
• These articulate the key areas that you'll be focusing efforts on to help deliver Vision.
4. Create your Objectives
• Strategic objectives define the outcomes you want to achieve under each of Focus Areas.
5. Define your KPIs
• Objectives should contain KPIs to help you measure whether or not you're close to
reaching your desired outcomes (Objectives).
6. Specify your Projects
• These are one of the most critical elements in your strategic planning model, as they
state exactly what actions you will take to deliver against your Objectives.

Governance elements of Cascade strategic model
1. Monthly Strategic Reports
• These apply only to Objectives and require the owner to
provide a narrative update on the overall progress towards
the Objective.
2. Project Updates
• These are ad hoc updates made against the Project level of
the plan and include general updates and progress.
3. KPI Exceptions
• These are required when KPIs are outside of their tolerance
level and explain the difference and any actions taken to
address the gap.
• When you combine the goal and the governance elements of
this strategic planning model, you get a comprehensive set of
tools that you can use not just for creating your plan but also
for executing it.

Strategic Planning Example: The Hoshin Kanri Model
• The Hoshin Kanri strategic planning model
• used to drive a consistent focus throughout many
levels of their structure.
• It's suited for large organizations
• with different layers of management, including
• “top-level” executive management,
• “middle managers,” and
• “front line” staff.

Structural elements of
Hoshin Kanri strategic model
• First level of Hoshin Kanri strategic planning model
refers to vision.
• A distant horizon that guide everything that sits beneath.
• Then you move on to your 3-5 Year Strategies.
• These are high-level summaries of what you want to achieve
• qualitatively and quantitatively.
• Beneath that, you define Annual Objectives,
• which will be split between departments.
• Determine your Action Items.
• They are specific things you are going to do to reach Annual
Objectives.

The governance elements
of the Hoshin Kanri strategic model
• Monthly Reviews
• These are done against the Annual Objectives and
• require the owners of the goals to provide descriptive
updates of progress.
• Annual Reviews
• These are also done against the Annual Objectives.
• However, they happen at the end of the time period
• and encompass a decision point on whether to mark the Annual
Objective as complete or roll it over into another year.

The OKR Strategic Planning Model Example
• The structural elements of the OKRs strategic model
• Objectives
• These describe the outcome you are looking for in the current quarter
• OKRs are designed to evolve each quarter.
• Key Results
• These are specific measures that describe your progress towards your
Objective in numerical terms.
• To-Dos
These are small “tasks” that sit against each of your Key Results that,
when completed, should take you closer towards achieving that Key
Result.

The governance elements
of the OKRs strategic model
• Weekly Check-Ins
• Each Key Result should have a weekly check-in that
• covers your confidence level in achieving that OKR,
• remediation steps and general progress updates.
• Quarterly Review
• For each Objective, a formal quarterly review
should be undertaken where that OKR is given a
“score” (usually from 0 to 1) and a decision is made
on what to do with that OKR in the next quarter.

Choosing Strategy Model
• The examples of strategic planning models
we've picked have a lot in common.
• The best strategic planning models:
• Are simple
• Contain all the right elements
• Combine goal setting with governance
• They serve you well when it comes to
execution.
• As such, you can't really go wrong with any of
the strategic planning model examples we've
outlined here.

• Be clear on purpose,
• Start with an accurate assessment of today,
• Create a shared vision of success,
• Identify your critical successful factors and barriers,
• Define the drivers: your strategies and priorities,
• Monitor and report results,
• Have rewards and consequences to build accountability.
Principles to Successful Strategy Management

Components of the Strategic Planning Process
• Identify strategic planning issues to develop a
unique competitive advantage.
• Basic Financial Planning,
• Forecast-based Planning,
• Externally Oriented Planning,
• Strategic Management
• Planning Framework
• Product/market planning,
• Business-unit planning,
• Shared resource planning,
• Shared concern planning,
• Corporate-level planning

Strategic Planning Process
• Planning Process
• Stressing competitiveness,
• Focusing on a theme,
• Negotiating objectives,
• Demanding strategic insights.
• Corporate Value System
• Teamwork value: leads to task-oriented org. flexibility.
• Entrepreneurial drive: commitment to making things
happen.
• Open communication: not preservation of
confidentiality.
• Shared belief that enterprise can create its own future,
• not in predetermined corner by environmental change
• Capture Competitive Advantage With Strategic
Planning
• Time Marketing Research and Planning, Know Customers
better than any competitor, Avoid Reactiveness

Basic model
• Basic strategic planning model
• ideal for establishing company’s
• vision,
• mission,
• business objectives,
• values.
• helps you outline the specific steps to
• reach your goals,
• monitor progress to keep everyone on target, and
• address issues as they arise.
• Best for:
• Companies with little to no strategic planning experience
• Small businesses or organizations
• Organizations with few resources

Basic model
• Steps:
• Write mission statement:
• Plan team have a brainstorming session.
• Identify organization’s goals:
• Set clear goals increase performance and positive impact motivation.
• Outline strategies that help reach goals:
• Ask yourself what steps you have to take in order to reach these goals
and break them down into long-term, mid-term, and short-term goals.
• Create action plans to implement each of the strategies:
• Action plans keep teams motivated and your organization on target.
• Monitor and revise the plan:
• closely monitor if implementing it successfully and
• how you can adjust it for a better outcome.

Issue-based model
• Also called goal-based planning model,
• extension of the basic strategic planning model.
• It’s a bit more dynamic and very popular for
companies that want to create a more
comprehensive plan.
• Best for:
• Organizations with basic strategic planning
experience
• Businesses that are looking for a more
comprehensive plan

Issue-based model
• Steps:
• Conduct a SWOT analysis:
• Assess strengths, weaknesses, opportunities, and threats.
• Identify and prioritize major issues and/or goals:
• identify and prioritize what your strategic plan should focus on this time around.
• Develop main strategies that address these issues and/or goals:
• main strategy that addresses highest-priority goal to keep this process as simple as possible.
• Update or create a mission and vision statement:
• Make sure business’s statements align with your new or updated strategy.
• Create action plans:
• help you address goals, resource needs, roles, and responsibilities.
• Develop a yearly operational plan document:
• use a yearly operational plan to capture goals, progress, and opportunities for next time.
• Allocate resources for your year-one operational plan:
• Monitor and revise the strategic plan:
• Record lessons learned so you can revisit and improve it for the next strategic planning phase.

Alignment model
• Strategic alignment model (SAM): strategic planning models.
• helps align business and strategies with organization’s strategic goals.
• Best for:
• Organizations that need to fine-tune their strategies
• Businesses that want to uncover issues that prevent them from
aligning with their mission
• Companies that want to reassess objectives or correct problem areas
that prevent them from growing

Alignment model
• Steps:
• Outline mission, resources, and where support is needed:
• Before improve approaches, define what exactly they are.
• Identify what internal processes are working:
• Pinpoint processes are causing problems, creating bottlenecks.
• Then prioritize which internal processes will have the biggest
positive impact.
• Identify solutions:
• teams when create new strategy to benefit from their experience
and perspective on current situation.
• Update strategic plan with the solutions:
• Update strategic plan and monitor if implementing it is set
business up for improvement or growth.
• If not, you return to drawing board and update strategic plan with
new solutions.

Scenario model
• Scenario model
• works great if you combine it with other models like
the basic or issue-based model.
• helpful if you need to consider external factors.
• government regulations,
• technical,
• demographic changes that may impact your business.
• Best for:
• Organizations trying to identify strategic issues and
goals caused by external factors

Scenario model
• Steps:
• Identify external factors that influence.
• consider demographic, regulation, or environmental factors.
• Review worst case scenario the above factors could have.
• If you know what the worst case scenario, it’ll be much easier to prepare for it.
• Identify and discuss 2 additional hypothetical scenarios.
• Discussing the 2 allow you to focus on positive the opportunities ahead.
• Identify and suggest potential strategies or solutions.
• brainstorm ways to potentially respond to each of the 3 scenarios.
• Discuss the proposed strategies as a team afterward.
• Uncover common considerations or strategies.
• come with solutions.
• Decide which ones you like best as a team or create a new one together.
• Identify the most likely scenario and the most reasonable strategy.
• which of 3 scenarios is occur in 3 years and how respond to potential changes.

Self-organizing model
• Organic planning model,
• not linear approaches of the other models.
• concentrates on continuous improvement,
• the process is never over.
• Be very patient with this method.
• This strategic planning model is about focusing on
• learning and
• growing process
• Not achieving a specific goal.
• Best for:
• Large organizations that can afford to take their time
• Businesses that prefer a more naturalistic, organic planning approach that
revolves around common values, communication, and shared reflection
• Companies that have a clear understanding of their vision

Self-organizing model
• Steps:
• Define and communicate organization’s cultural
values.
• team can think clearly when have clear understanding of
values.
• Communicate the planning group’s vision
organization.
• Define and communicate the vision with everyone involved
in the strategic planning process.
• This will align everyone’s ideas with your company’s vision.
• Discuss what processes will help realize the vision on
a regular basis.
• Meet every quarter to discuss strategies or tactics that will
move your organization closer to realizing your vision.

Real-time model
• Real-time model
• help deal with rapid changes to work environment.
• Levels of success in the real-time model:
• Organizational: you’re forming strategies in response to opportunities
or trends.
• Programmatic: decide how respond to specific outcomes or
environmental changes.
• Operational: study internal systems, policies, and people to develop a
strategy.
• Find competitive advantage can be difficult, but crucial to
ensure success.
• important that you can set yourself apart from others in the industry to
succeed.
• Best for:
• Companies that need to react quickly to changing environments
• Businesses that are seeking new tools to help them align with their
organizational strategy

Real-time model
• Steps:
• Define mission and vision statement.
• If you feel stuck formulating mission or vision statement, take a look at those of others.
• Research, understand, and learn from competitor strategy and market trends.
• Pick competitors and find out how they’ve created success for themselves.
• How did they handle setbacks or challenges?
• What kinds of challenges they even encounter?
• Are these common scenarios in market?
• Study external environments.
• combine the real-time model with the scenario model to find solutions to threats and
opportunities outside of your control.
• Conduct a SWOT analysis of internal processes, systems, and resources.
• look at internal environment and how well you’re prepared for different scenarios.
• Develop a strategy.
• Discuss results of SWOT analysis to develop a business strategy that builds toward
organizational, programmatic, and operational success.
• Rinse and repeat.
• Monitor how well the new strategy is working for your organization and repeat the
planning process as needed to ensure you’re on top or, perhaps, ahead of the game.

Inspirational model
• Inspirational model
• inspire and energize team as they work toward goals.
• introduce or reconnect employees to your business strategy after a
merger or acquisition.
• Best for:
• Businesses with a dynamic and inspired start-up culture
• Organizations looking for inspiration to reinvigorate the creative
process
• Companies looking for quick solutions and strategy shifts

Inspirational model
• Steps:
• Gather team to discuss inspirational vision.
• The more people you gather for process, the more input you
receive.
• Brainstorm big, hairy audacious goals and ideas.
• Encourage team not to hold back with ideas that seem
ridiculous. think inside of the box
• Lead to a genius idea or suggestion..
• Assess organization’s resources.
• Find if have the resources to implement your new ideas.
• If not, either adjust your strategy or allocate more resources.
• Develop a strategy balancing your resources and
brainstorming ideas.
• ideas can grow into amazing opportunities but they can also bear
great risk.

Balanced scorecard (BSC) framework
• Balanced scorecard: holistic approach, not focus on their financial
performance
• Communicate goals
• Align team’s daily work with their company’s strategy
• Prioritize products, services, and projects
• Monitor their progress toward their strategic goals
• Main business perspectives:
• Customers or clients: their value, satisfaction, and/or retention
• Financial: your effectiveness in using resources and your financial
performance
• Internal process: your business’s quality and efficiency
• Organizational capacity: organizational culture, infrastructure and technology,
and HR
• Strategy map: shows cause-and-effect connections between strategic
objectives.

Porter’s Five Forces framework
• Porter’s Five Forces framework
• find what product’s competitive advantage is before entering the market.
• Outlines five forces you have to be aware of and monitor:
• Threat of new industry entrants:
• Any new entry into the market results in increased pressure on prices and costs.
• Competition in industry:
• more competitors, the more difficult to create value in the market with your product.
• Bargaining power of suppliers:
• Suppliers apply more power if less alternatives, expensive, time consuming, or difficult to
switch to a different supplier.
• Bargaining power of buyers:
• Buyers apply more power if same product is available elsewhere with no quality difference
• Threat of substitutes:
• If another company already covers the market’s needs, you create better product or make it
available for a lower price at same quality in order to compete.

VRIO framework
• VRIO (value, rarity, imitability, and organization):
• evaluate your competitive advantage.
• study firmed resources and if you can transform them into sustained
competitive advantages.
• Firmed resources:
• tangible (cash, tools, inventory) or
• intangible (copyrights, trademarks, organizational culture).
• If these resources will help depends on 4 qualities:
• Valuable: resource increase revenue or decrease costs and create value?
• Rare: resources used rare or can others use and provide the same product?
• Inimitable: inimitable or non-substitutable? unique and complex?
• Organizational: organized enough to use your resources in a way that
captures their value, rarity, and inimitability?

Theory of Constraints (TOC) framework
• If the reason you’re currently in a strategic planning
process is because you’re trying to mitigate risks or
uncover issues that could hurt your business—this
framework should be in your toolkit.
• Theory of constraints (TOC):
• problem-solving framework
• identify limiting factors or bottlenecks preventing your
organization from hitting OKRs or KPIs.
• Whether it’s a policy, market, or recourse constraint—you
can apply the theory of constraints to solve potential
problems, respond to issues, and empower your team to
improve their work with the resources they have.

PEST/PESTLE analysis framework
• PEST: political, economic, sociological, and technological factors.
• PEST: focusing on external factors and solutions.
• great framework to combine with scenario-based strategic planning
model as
• define external factors connected to your business’s success.
• PESTLE: expand to include legal and environmental factors
• Factors you can include in a PESTLE analysis:
• Political: Taxes, trade tariffs, conflicts
• Economic: Interest and inflation rate, economic growth patterns,
unemployment rate
• Social: Demographics, education, media, health
• Technological: Communication, information technology, research and
development, patents
• Legal: Regulatory bodies, environmental regulations, consumer
protection
• Environmental: Climate, geographical location, environmental offsets

Why you’re not getting the right ideas:
• If you believe you do not have any good ideas,
• you’re not putting an effort to make it happen.
• Can you recall the last time you had an idea?
• How did it come to your mind?
• Successful people
• do not wait for ideas appear.
• follow process and make effort to come up with new ideas all the time.
• When you put time and effort into generating ideas,
• they will start showing up in the long run.
• If you lack ideas, it implies you’re not trying enough.
• Or, you’re so busy completing tasks that you leave no time for yourself
to think.

Generate ideas
• Do not need high IQ to come up with ideas.
• key ingredient: persistent effort to get your brain thinking.
• Need the patience to wait for good ideas.
• Do not expect brain to toss something amazing at you in a few days.
• Brilliant idea: subjective.
• What you consider as great idea might seem ordinary to
others.

1. Come up with 5 ideas a day
• Brain is like a muscle.
• With consistent training, it gets better.
• Habit of coming up with 5 ideas a day and note down.
• doesn’t matter the origin, or how terrible they are.
• You do not have to pursue them any further.
• Cartload of ideas in a few months.
• Most of them will be awful.
• A big amount of the remaining will be average.
• Some, will lead to a handful of useful ideas, and that’s all you need.
• Consider the others as a catalyst to the ones that matter.
• Let your imagination run wild.
Techniques to generate ideas

2. Expose yourself to a broader experience
• Exposure and knowledge determine how wide brain thinks.
• Thoughts are limited to your circle of awareness.
• Cannot come up with ideas on areas you know nothing about.
• When you expose yourself to broader information, you will
tickle your brain to start thinking.
• Read:
• Books and articles: grab and absorb the wisdom within them.
• Talk to people outside your family, friend circle, and coworkers:
• Internet and platforms have made the process of networking a breeze.
• Learn more about innovation in your area of interest:
• Explore more about ideas and renowned people in your field.
• Knowing origin, concept, and techniques help sharpen your abilities.

3. Analyze the world around you
• Use your daily experience to think deeper about your area.
• Regardless of your profession or goals,
• you’ll have ample opportunities to think of ideas using what you see
and hear.
• When you constantly think, you’ll spot opportunities.
• With enough opportunities, you will get many connected thoughts.
• With enough thoughts, you will encounter a few good ideas.

4. Use your thinking time
• 30 min of your time every day to think
• helps you gain clarity to achieve your goals.
• You can utilize a small portion of your thinking time to come up
with little ideas for improvement.
• Finding ways to improve yourself in small ways are ideas in itself.
• Use your thinking time for ideas on:
• How to increase your patience
• How to be an understanding colleague
• How to build better rapport
• How to be a trusted employee
• If you keep making little changes and avoid mistakes,
• you’ll gain the results in the long run.

5. Apply knowledge of one area into another
• People do not apply their knowledge from one field to
another.
• You can apply
• the physics behind casual effects on relationships and
• the concepts of psychology to investments.
• Investment choices are based on the lessons learned from
different areas.
• knowledge to analyze how all human beings make decisions.
• Translate knowledge from one domain to another.
• When you are thinking of ideas,
• do not obstruct yourself from using expertise across different
fields.

Mindmapping for brainstorming
• Mindmapping:
• technique to brainstorm or think deeper about a core idea.
• If you plan to improve your public speaking skills,
• you can use mind maps to think of different ways to make that happen.
• They are powerful for coming up with different ways to refine and
execute an idea.

SCAMPER Technique
• SCAMPER:
• Substitute, Combine, Adapt, Modify, Put to
another use, Eliminate, Reverse.
• Creative thinking and problem-solving
• turn ideas into innovation and
• break the barriers against creativity.
• SCAMPER technique is
• based on the idea that
• what is new is actually a modification of existing
old things around us.

SCAMPER technique
• During the need for critical thinking either
alone or inside a group,
• forcing the mind to think in a specific flow can
• help emerging innovative ideas
• that won’t be possible to reach
• using a regular thinking flow.
• SCAMPER provide
• 7 thinking approaches to find innovative ideas
and solutions.

Substitute
• Substitute technique
• focuses on the parts in the product that can be replaced with another.
• provide alternative solutions to evaluate different solutions to reach final action.
• During this part of the discussion
• focus on making decisions to substitute part of the process with another.
• Questions asked during this part are:
• What part of the process can be substituted without affecting the whole project?
• Who or what can be substituted without affecting the process?
• What part in the process can be replaced with better alternatives?
• Can the project time or place be replaced?
• What will happen when we replace part of the project with another?
• Where else could you sell the product?
• Could we use another alternative of X?
• Can we substitute the current device with another better one?
• Can we replace the process with simpler one?

Combine
• Combine technique
• analyze the possibility of merging two ideas, sin a more efficient output.
• Combining two innovative ideas can lead to market strength.
• merging phone technology with digital camera produced a new revolutionary
product in the telecommunications industry.
• The combine technique discussion can include the following
questions:
• Can our company combine resources with another partner in the market?
• Can we merge two steps of the process?
• Can we apply two processes at the same time?
• Can we mix two or more components together?
• Can we combine X and Y technologies?

Adapt
• Adapt
• brainstorming discussion that aims to adjust product for a better output.
• Adaption is one of the
• efficient techniques to solve problems through enhancing the existing system.
• The adapt technique brainstorming session can include the questions:
• What would we need to change to reach better results?
• What else could be done in this specific task?
• How can we improve the existing process?
• How can we adjust the existing product?
• How can we make the process more flexible?

Modify, minify or magnify
• Modify technique
• change process in way that unleashes more innovative capabilities or solves problems.
• This change is more than just adjustment as it focuses on the overall process.
• For example, it can target reducing the project’s process or change our
perspective of how to look at the problem.
• The questions asked under this rubric include:
• How will modifying the process improve results?
• What if we had a double consumer base?
• If the market was different, what would the process look like?
• Can we change the process to work more efficiently?
• What if the product is double the current size?

Put to another use
• Put to another use: how to put the
• current product in another purpose
• use the existing product to solve problems.
• The questions in this technique can include the following:
• What other parts in the company can use the product?
• What are the benefits for the product if used elsewhere?
• What if we target another market segmentation for the current product?
• Can we add a specific step into the process to replace another?
• What are other ways can we use it?
• Can we recycle the waste for another use?

Eliminate or elaborate
• Eliminate
• identify process parts that can be eliminated to improve the process.
• helps to explore the unnecessary parts of the project.
• Unnecessary resources or steps in the process
• provide extra load for the project to achieve innovation and creativity.
• Eliminating these resources
• extends ability to innovate and allocate more resources for creativity.
• Questions related to this part includes:
• What would happened if we removed this part?
• How can we achieve the same output without specific part of the project?
• Do we need this specific part?
• What would we do if we had to work with half the resources?

Reverse
• Reverse or rearrange technique
• aims to explore the innovative potential when changing the order of the
process in the production line.
• process or part of it can help solving problems or produce more innovative
output.
• The questions in this part include:
• What would happened if we reverse the process?
• How can we rearrange the current status for better output?
• What if we consider it backwards?
• Can we interchange elements?

Idea Management
• Idea management
• process of creating ideas and seeing them through to implementation in as
effective a manner as possible.
• As the importance and appreciation of innovation has recently
become even more important, there’s been a huge influx of tools to
help in different parts of this process.
• These tools can be a tremendous asset to help individuals and
companies get the most out of their ideas.

Stages in the lifecycle of an idea
• The journey of an idea from the initial thought to a refined concept,
• there are a number of different phases involved.
• We’ve broken the process down into four stages to illustrate the
distinct activities involved in working on most ideas.
• There are obvious exceptions to this classification, but it's still a solid
starting point for most.

Opposite Thinking
• Opposite Thinking
• question assumptions related to your business,
• key for coming up with those infamous “out-of-the-box ideas”.
• It’s a useful tool to consider if you feel your team is stuck with the
traditional mindset of “this is the way things have always been”.

Brainstorm Cards
• Brainstorm Cards
• coming up with dozens of new ideas related to whatever challenge
or problem you are currently working, in a manner of minutes.
• They help you consider external factors such as:
• societal trends,
• new technologies,
• regulation in the context of your business.
• This allows you to generate a great number of ideas with
little effort.
• Many of the ideas won’t obviously make sense,
• but this tool can still be very beneficial for getting you out of the
channel if you’re suffering from a creative block.

Analogy Thinking
• Analogy Thinking
• technique for analyzing a successful business,
• identifying what makes it great, and
• applying those same principles for your business.
• This is an effortless method for coming up with
business ideas that are pre-validated.

Developing a business concept
• Business concept
• defines how idea would actually work in terms of the
larger concept, and the business model.
• Some ideas, might not require too much concept
development, as they are likely to already be
highly concrete and well-thought out by nature.
• For most ideas that are about a new concept or
business,
• build a business concept or model.
• This helps you approach it in a holistic manner,
which aids in identifying obvious holes.

Business Model Canvas
• Business Model Canvas
• map out the elements and assumptions
related to a business idea or concept.
• It contains 9 elements in 4 different
areas:
• Infrastructure,
• Offering,
• Customers, and
• Finances.

Lean Canvas
• Lean Canvas
• replaces 4 of the 9 elements to focus more
on the problem that you are trying to
solve, as opposed to the more solution-
oriented approach of the Business Model
Canvas.
• Lean Canvas is thus perhaps better
suited for those operating in an
environment with a high amount of risk
and uncertainty.

Negotiation
• Negotiation
• strategic discussion that resolves an issue in a way that
both parties find acceptable.
• each party tries to persuade other to agree with their
point of view.
• involve some give and take,
• one party will always come out on top of the negotiation.
• other, must allow even if that concession is nominal.
• involved parties try to avoid arguing but agree to reach
some form of compromise.

How Negotiations Work
• Negotiations involve
• parties who come together to reach some end goal through
compromise or resolution that is agreeable to all those involved.
• One party will put its position forward, while
• other will either accept the conditions presented or
• counter with its own position.
• The process continues until both parties agree to a resolution.
• Participants learn about the
• other party's position before a negotiation begins,
• strengths and weaknesses of that position,
• how to prepare to defend their positions,
• any counter-arguments the other party will likely make.
• The length of time it takes for negotiations to take place
depends on the circumstances.

Key Factors in Negotiations
• Parties Involved:
• Who are the parties in the negotiation, and what are their interests?
• What is the background of all involved, and how does that affect their
position in the discussion?
• Relationships:
• What is the relationship between the parties and their intermediaries in the
negotiation?
• How are the parties connected and what role does that play in the terms of
the negotiation process?
• Communication:
• How will the needs of the parties involved be best communicated in order to
secure their agreements through negotiation?
• What is the most effective way to convey the desired outcomes and needs?
• How can the parties be certain they are being heard?

• Alternatives:
• Are there any alternatives to what either party initially wants?
• If direct agreement is not possible, will parties need to seek substitute
outcomes?
• Realistic Options:
• What options may be possible to achieve an outcome?
• Have the parties expressed where there may be flexibility in their demands?

• Legitimate Claims:
• Are what each party requests and promises legitimate?
• What evidence do the parties offer to show their demands
are valid?
• How will they guarantee they will follow through on the
results of the negotiation?
• Level of Commitment:
• What is the amount of commitment required to deliver the
outcome of the negotiations?
• What is at stake for each party?
• Do the negotiations consider the effort that will need to be
made to achieve the negotiated results?

Steps in Negotiations
• There is no easy recipe for negotiations, but clarity of
the objective and good preparation will always be
needed.
• At its simplest, negotiation requires four steps:
• Making preparations
• Identifying and discussing potential areas of negotiation
• Proposing and bargaining
• Closing.

Prepare
• Preparation starts by establishing and laying down the
foundation.
• Research: Find out about the other party.
• Key questions:
• What are your expectations?
• What do you hope to gain?
• What compromise are you willing to make?
• What happens if you don't get reach your end goal?
• What your negotiating strategy is and how you intend to do it?
• Are you competing, accommodating, or will you be collaborative?
• Adjust strategy according to end goal and what you hope to
accomplish.

Exchange Information
• Sit down with the other party,
• also done their homework before meeting at the table.
• Both sides are able to lay down what their arguments are
that can help them reach their end goals.
• Communication is key here.
• Critical: Be able to articulate effectively and systematically.
• You shouldn't withhold on the details.
• As you exchange, there will be fewer details to fix later.
• If you're negotiating a contract,
• offer any details you have as to
• what you intend to bring,
• what your conditions are, and
• why you're hoping to gain.
• You can do this verbally, in writing, or in a presentation.

Clarify
• You've both explained your positions.
• You should hold what the other party is looking for and
they should know what you want.
• Be sure that you and the other party are on the same
page.
• If there are any additional info that you need, or any
questions that are left unanswered,
• now is the time to ask.
• be sure that the other party is satisfied with your position, too.

Bargain
• Take time and don't rush the process.
• Check any cues given by the other party (verbal, nonverbal)
• help you get to your end goal.
• Listening, reading body language and understanding other's tactics,
and responding in a manner that will be accepted.
• Refrain from being aggressive.
• Be sure you're ready to compromise if the need arises.
• Negotiating involves a little give and take on both sides.

Closure
• Once both parties are happy and satisfied with the results,
• it's time to end the negotiations.
• The conclusion involves
• coming to an agreement
• solidifying it (verbal or written contract).
• Written contract: better as it clearly outlines the position of each party involved.
• Make sure there are
• clear details and expectations for each party.
• any concessions / consequences if one or more of you fail to live up to
your end of the deal.

Tips in Negotiating
• Justify Your Position:
• Have info to show that you've research and you're committed
to the deal.
• Put Yourself in Their Shoes:
• See things from other's perspective and why they may not
accept your offer.
• Remove the Emotion:
• personal feelings, especially if you're really vested in outcome.
• Know When to Stop: Know when you'll walk away
• if the talks aren't moving forward
• There is no use trying to get the other party to see where you stand.

Skills Needed to Be a Good Negotiator
• Negotiating doesn't always come easy for everyone.
• That's why it's often called an art.
• Some people are naturals while others have to shape their skills.
• There are several skills you need to make you a good negotiator:
• Listening
• Thinking clearly, concisely, and on your feet
• The ability to work well under pressure
• Articulating your thoughts
• Being able to persuade
• Flexibility
• Knowledgeable and being prepared

When Negotiations Don't Work
• Negotiators have difficulty, making things work.
• Perhaps one party just won't move and doesn't want to
give in at all.
• Issues that stall the negotiation process,
• lack of communication, some sense of fear, or even a lack of
trust between parties.
• These obstacles lead to frustration and anger.
• The negotiations may turn bitter and ultimately lead
parties to argue with one another.
• When this happens, the parties can do is to walk away.
• Taking yourself out of the equation gives everyone
involved a chance to regroup, and help come back to the
bargaining table with a fresh mind.

Negotiating With Stakeholders
• Know Your Stakeholders,
• Justify Your Position,
• Don’t Play Games, get Stuck in,
• Ask Open Questions,
• Bring Focus,
• Listen to and Understand the Problem
• Before you Diagnose it

Negotiating With Stakeholders
• Know who Your Stakeholders:
• People with opinions, want to interfere.
• Stakeholder: someone with a vested interest.
• financial stake in product (it’s their budget/cash)
• responsible for output, perhaps legally, like a financial or commercial director.
• has an interest in a company and can either affect or be affected by the business.
• Primary stakeholders in a typical corporation:
• investors,
• employees,
• customers,
• suppliers.

Types of Stakeholders
• Important stakeholders for a business include its
• shareholders, customers, suppliers, employees.
• Internal stakeholders:
• shareholders and employees.
• External stakeholders:
• customers and suppliers.
• Broader range of external stakeholders:
• government of countries in which the business operates,
• public at large.

Stakeholder Analysis
• Stakeholder Analysis
• is the first step in Stakeholder Management,
• process that people use to win support from others.
• Managing stakeholders can help you,
• to ensure that your projects succeed where others
might fail.

Stakeholder Management Importance
• The actions you take, affect more people.
• the more people you affect,
• the more likely that some have power and influence over your work.
• Stakeholders.
• They could be strong supporters of your projects – or they could block them.
• Identify who your stakeholders are and win them over asap.
• Do this by conducting a Stakeholder Analysis
• identifying,
• prioritizing,
• understanding your stakeholders.

Stakeholder Analysis Benefits
• Get Projects Into Shape
• use opinions of powerful stakeholders to define project at an early
stage.
• These stakeholders will support, and their input improve the
quality.
• Win Resources
• Gain support from stakeholders to win resources (people, time or
money).
• Build Understanding
• converse stakeholders early and often, so they understand the
benefits.
• they can more actively support you when necessary.
• Get Ahead of the Game
• Understand stakeholders so anticipate and predict their reactions to
your project as it develops.
• Tallows you to plan actions that will more likely win their support.

How to Conduct a Stakeholder Analysis
• Steps of Stakeholder Analysis.
• identify stakeholders.
• work on power, influence, and interest,
• so know who you should focus on.
• develop a good understanding of the most important
stakeholders,
• how they are likely to respond, and
• how you can win their support.
• how you’ll communicate with each stakeholder.

1. Identify Your Stakeholders
• Brainstorm who stakeholders are.
• who are affected by your work,
• who has influence or power over it,
• Who has an interest in its successful or unsuccessful conclusion.
• Have a list of people and organizations that are affected by your work.
• Some have the power either to obstruct or to advance it.
• Some are interested in what you are doing, while others may not care, so you
need to work out who you need to prioritize.

• Position you allocate to stakeholder shows actions you
need to take:
• High power, highly interested people (Manage
Closely):
• fully engage and make efforts to satisfy them.
• High power, less interested people (Keep Satisfied):
• enough work to keep them satisfied,
• not so much, they become bored with message.
• Low power, highly interested people (Keep Informed):
• adequately inform to ensure that no major issues
arise.
• very helpful with the detail of your project.
• Low power, less interested people (Monitor):
• monitor, but don’t bore them with excessive
message.

3. Understand Key Stakeholders
• how key stakeholders feel about your project.
• how best to engage them,
• how to communicate with them.

• Questions:
• What financial or emotional interest do they have in the outcome of
your work? Is it positive or negative?
• What motivates them most of all?
• What information do they want from you, and what is the best way of
communicating with them?
• What is their current opinion of your work? Is it based on good
information?
• Who influences their opinions generally, and who influences their
opinion of you? Do some of these influencers therefore become
important stakeholders in their own right?
• If they aren’t likely to be positive, what will win them around to
support your project?
• If you don't think that you’ll be able to win them around, how will you
manage their opposition?
• Who else might be influenced by their opinions? Do these people
become stakeholders in their own right?

Concepts applied to stakeholder negotiation
Active Listening
• show that you are engaged and focused on them.
• Negotiators exhibit actively listening with mirroring.
• Mirroring: imitation with meaningful and powerful
nuances.
• speech patterns,
• body language,
• vocabulary,
• tempo,
• tone of voice.
• helps establish rapport that leads to trust.

2. Labeling
• shows that you hear what is behind their feelings
• listen to emotions and label them to identify with how they feel.
• time saving emotional hack.
• Tactical empathy
• demonstrates that you understand another’s feelings and mindset in the moment.
• emotions are a form of thinking.
• In charged situation, the emotional mind is in control, not the rational
mind.
• Amplifying your empathy: increase your influence in conversation.
• Pro-tips:
• Don’t use “I”: Using “I” puts the focus on you, and people’s guard up. Secondly,
when you use labeling, muster the most neutral tone you can. You just want to label
the emotion in order to diffuse it.
• You can practice labeling using phrases that start with “It seems like, It
sounds like, It looks like… “It sounds like you are frustrated with that
decision.” “It sounds like you would like to have some data to help you
make that decision.”

3. Open-Ended Questions
• These are questions that cannot be answered with either yes or no.
• Using open-ended questions
• encourages others to open up and
• provides valuable information that you can use during the negotiation.

4. Getting to Yes
• If you want your negotiation to end successfully,
• need to get to yes by invoking the rule of three.
• Tactic
• get others to agree to same thing 3 times in the same
conversation.
• It’s difficult to repeatedly misstate their stance or fake
conviction,
• so if you can get other to agree to some critical points 3 times,
• you are ready to start closing the deal.

5. Non-Cash Offer
• Avoiding dealing with things like numbers or dates in
isolation.
• In stakeholder management, non-cash offers could
take many different forms.
• Offer something inexpensive for you but valuable for
the other.
• Instead of threatening ultimatums,
• the non-cash offer can be a vital technique to lead you to
a win-win scenario.

6. The Black Swan Technique
• Black swan: small things that change everything
• hidden piece of info that, when revealed, can drastically alter the
course of negotiation and push counterparts toward a deal.
• completely unexpected or unpredictable but extremely impactful.
• A good negotiator can reveal the Black Swan with
investigation and preparation to
• understand others and motives.
• discover topics they should avoid.
• If stakeholders appear irrational or un-moving may find the
Black Swan technique useful.
• There is often more going on under the surface than will be
divulged in a meeting.

Using black swans in a negotiation:
• Do research: uncover black swans in your counterparts.
• Understand backgrounds to decide negotiation techniques to match against their expected
negotiation style.
• Map effective negotiation strategy: plan when you deploy the black swans
• Use black swan for competitive edge and get upper hand at a critical point of negotiation.
• Look for black swans while negotiate: improvise and adjust negotiation process as
new developments occur.
• Ask calibrated questions to reveal a black swan to use to your advantage.
• Be aware of your black swans: info that others might discover about you,
negotiation tactics
• Perform accusations audit for your black swans, others might use against you.
• Anticipate their strategy and give them the illusion of control.
• Observe other’s body language, tone of voice: tone change indicate, hide info.
• there may be a related black swan that you might be able to find and exploit.
• Keep black swan in your back pocket: save for a crucial moment in a negotiation.
• info to help bring a negotiation to a close or right the ship if you lose control of a negotiation.
• An essential part of a successful negotiation is adapting on the fly.

Do an accusation audit
• The best way to deal with negativity is to observe it,
• without reaction and without judgment.
• label each negative feeling and replace it with positive,
compassionate, and solution-based thoughts.
• Labels are powerful because they bathe fears in sunlight, bleaching them of
their power and showing our counterparts that we understand.
• Accusation audit.
• List every terrible thing your counterpart could say about you.
• For each negative statement, create a label that might disarm or
identify your counterpart’s fears or feelings.
• Be exhaustive. ...
• Get into your counterpart's headspace. ...
• Group accusations together. ...
• Formulate counterarguments. ...
• Counter potential attacks with data. ...
• Use labeling before you come to the table. ...
• Reassess during the negotiation.

Ackerman Bargaining
• Ackerman Bargaining
• anchoring low and then systematically increasing your offer until
your target price.
• it incorporates the psychological tactics (reciprocity, extreme
anchors, loss aversion) without you needing to think about them.
• Steps:
• Set your target goal.
• Set your first offer at 65% of your target price.
• Calculate 3 raises of decreasing increments (85, 95, and 100%).
• Use lots of empathy and different ways of saying “No” to get the
other side to counter before you increase your offer.
• When calculating the final amount, use precise, non-round numbers
like, say, $37,893 rather than $38,000. It gives credibility and weight.
• On your final number, throw in a nonmonetary item (that they
probably don’t want) to show you’re at your limit.

Reciprocity, anchors, loss aversion
• Reciprocity: the practice of exchanging things with others for
mutual benefit, especially privileges granted by one country or
organization to another.
• Anchoring effect: cognitive bias that describes the tendency to rely
on the first piece of info (anchor) when making decisions and make
subsequent judgments.
• Loss Aversion: cognitive bias that describes why the pain of losing
is psychologically twice as powerful as the pleasure of gaining.

What Not to Do
• Don’t split the difference:
• you are compromising success by throwing a half-way mark.
• Don’t Go in High:
• The starting offer from your counterpart may be better than your best
expectation.
• Don’t say “I.”
• Intentionally use it when you want focus on yourself to make your point.
• Don’t ask “Why.”
• “Why” tend to be viewed as accusations, and people may get defensive.
• Uses “Why” focus on purpose and strategy or conducting exercises (root cause
analysis).
• Don’t negotiate unprepared:
• Have decision-making authority going into the negotiation, so you don’t lose the
momentum of the dialogue and risk drifting apart from your desired result.

Ask Open Questions
• Take control of situation by getting the other party to do the talking.
• Start first, and start quick.
• A great way to do this is to take the initiative straight away.
• Here are some typical open questions that I would use:
• What’s on your mind?
• How can I help?
• How are we doing then?
• Where’d you like to start?
• …then keep the conversation going:
• Is that all?
• Anything else?
• What’s your biggest challenge here?
• Where are you trying to get to with this?

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