National Association of Women MBAs 2011 Negotiation Presentation


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This is the presentation I gave at the 2011 Conference and Career Fair in Irving, Texas for the National Association of Women MBAs - NAWMBA11

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  • ASK: We’re lawyers, business women, artists, editors, financial gurus, and entrepreneurs. And yet we hesitate to ask for higher fees, promotions, bonuses, flex-time, more staff, and better access to power. Most men don’t have a problem saying “I want a new Porsche or a corner office or YOUR clients.” Men tend to measure their worth by what they can get. We measure ours by what we need.
  • Keeping the bar low hurts all of us. We have this in common with men – we want parity. And when we look around to see whether we’ve got it, we compare ourselves to our women friends, not our male colleagues and we feel good about our income even though it’s 30% lower than our market value.
  • Some of us see-saw here – knowing our male peers are doing better but not wanting to rock the boat or call attention to ourselves or appear greedy or step over the lines
  • And this is particularly true in this economy because we’re working harder for less – productivity is up – unemployment is flat – profits are up but everyone keeps telling us they can’t give us more because the economy is bad
  • We’re limited by ourselves
  • So we’re stuck here
  • When’s the last time you had an opportunity to negotiate something? Every time you open your wallet; every time you provide a service – but the challenge is real. It IS HARD – we step over gender boundaries when we ask for ourselves. The goal today is to rethink our market value, find a way that’s comfortable for us to seek it and learn the strategies and tactics to get it.
  • What do we want to know? We’re going to talk about a couple of venture capitalists at day’s end – John and Denise. On the surface, it appears that these two high-achievers want the same thing. Denise wants equity partnership and John wants to block her promotion. In fact he wants her out of the firm. She knows he is blocking her but she doesn’t know why. When she sits down with him, what does she want to know – what are his true desires, what are his attitudes toward the future, what does he fear, what does he need, how could she help him achieve what he wants to achieve and how could he help her do the same. When we realize negotiation is a means to empower everyone, it gets a lot more interesting.
  • Talked about interests earlier today. Story about RIGHTS AND REMEDIES vs. INTERESTS – my own divorce.
  • National Association of Women MBAs 2011 Negotiation Presentation

    1. 1. Influence and Negotiations Ask and You Shall Receive NAWMBA Conference September 17, 2011
    2. 2. We measure our worth by what we need
    3. 3. We compare our income to our women friends
    4. 5. We over-deliver to our clients and superiors and under-deliver to ourselves
    5. 6. We work 22% longer and 10% faster for the same reward
    6. 8. monkey economy 50 million years
    7. 9. Recognize the opportunity to negotiate!
    8. 10. <ul><li>Negotiation is a conversation leading to agreement. </li></ul>
    9. 11. <ul><li>Let’s have lunch or coffee . . . </li></ul><ul><li>Small talk . . . </li></ul><ul><li>How’s business? </li></ul><ul><li>Me too . . . . </li></ul><ul><li>I was hoping we might be able to do business together . . . . </li></ul><ul><li>Here’s what I bring to the table </li></ul><ul><li>I thought it might benefit you to have . . . </li></ul><ul><li>My rate is $_____ (more than you want) </li></ul>
    10. 12. Diagnostic Questions: <ul><li>Who </li></ul><ul><li>What </li></ul><ul><li>When </li></ul><ul><li>Where </li></ul><ul><li>Why </li></ul><ul><li>How </li></ul>
    11. 14. Responses to Conflict <ul><li>Suppression </li></ul><ul><li>Avoidance </li></ul><ul><li>Resolution </li></ul><ul><li>Transformation </li></ul><ul><li>Transcendence </li></ul>
    12. 15. Dispute Resolution Tactics <ul><li>Yielding/Ingratiation </li></ul><ul><li>Shaming </li></ul><ul><li>Persuasive argumentation </li></ul><ul><li>Promises of future action </li></ul><ul><li>Threats of future action </li></ul><ul><li>Physical force </li></ul>
    13. 16. S: if she wants to V: you want the kids to come down? V: how about Helen (ex-wife)? S: If they want to
    14. 17. <ul><li>Get your partner to switch seats with your. </li></ul><ul><li>Each winner will get a prize. </li></ul><ul><li>You have 60 seconds to play. </li></ul>
    15. 18. Ask <ul><li>Ask for a meeting </li></ul><ul><li>Gather stakeholders </li></ul><ul><li>Set the tone </li></ul><ul><li>Frame the topic </li></ul><ul><li>Suggest an agenda </li></ul><ul><li>Ask open-ended questions </li></ul><ul><li>Be firm but flexible </li></ul>
    16. 19. ANCHOR In circumstances of uncertainty, the negotiator who makes the first offer sets the top of the bargaining range, which acts as an anchor that exerts a powerful influence on the outcome throughout the negotiation. Image credit 2010
    17. 20. Anchor <ul><li>Make first offer </li></ul><ul><li>Make it aggressive </li></ul><ul><li>Frame it as benefit </li></ul>
    18. 21. <ul><li>Reiterate terms </li></ul><ul><li>Or…recapture the main points, what’s left to resolve, and what’s needed to do so. </li></ul><ul><li>Set day/time to reconvene </li></ul><ul><li>End on hopeful note/congratulate both for progress made </li></ul>Close
    19. 22. Prepare to Ask <ul><li>Ascertain your market value </li></ul><ul><li>Unbundle that value </li></ul><ul><li>Be prepared to value and prioritize each item </li></ul><ul><li>Research their interests </li></ul><ul><li>Determine whether there are items of high value to you and low cost to them </li></ul>
    20. 23. Ask and Anchor <ul><li>My fee is $450 an hour </li></ul><ul><ul><li>SILENCE!!!! Wait for response; if none then, </li></ul></ul><ul><ul><ul><li>I generally ask for an upfront retainer that will cover the time we estimate the job will take – let’s talk about timing; OR </li></ul></ul></ul><ul><ul><ul><li>is that a number you can work with?; OR </li></ul></ul></ul><ul><ul><ul><li>if that number is too rich for your Board, we can talk about payment options; OR </li></ul></ul></ul><ul><ul><ul><li>I’m always willing to negotiate </li></ul></ul></ul>
    21. 24. <ul><li>Frame Ask as a Benefit </li></ul><ul><li>I’d like to talk about the ways in which we can create a mutually beneficial relationship </li></ul>
    22. 25. <ul><li>Interest-based negotiation is a process in which we seek to expand the pie of benefits available to the parties in an attempt to satisfy as many of their needs, desires, preferences and priorities as possible (their interests). </li></ul>
    23. 26. <ul><li>What are my intended outcomes and interests? </li></ul><ul><ul><li>Preferences, priorities, needs, desires, fears, aspirations, bottom line </li></ul></ul><ul><li>What are their possible interests and outcomes? </li></ul><ul><li>What are the options? </li></ul><ul><ul><li>Potential points of agreement </li></ul></ul><ul><ul><li>Differences that might be dove-tailed </li></ul></ul>ASK DIAGNOSTIC QUESTIONS Q is for Questioner copyright 2010 Reason Press
    24. 27. <ul><li>Logrolling, or trading off concessions on low-priority issues for gains on higher priority issues </li></ul><ul><li>Trading differential time preferences </li></ul><ul><ul><li>Allocating more initial outcomes to the more impatient party </li></ul></ul><ul><ul><li>Allocating greater profits over a longer period to the more patient party </li></ul></ul>TACTICS AND OPTIONS T is for Them and Us copyright 2010 Reason Press
    25. 28. <ul><li>add issues not inherent in the initial negotiation framework </li></ul><ul><ul><li>Bonuses </li></ul></ul><ul><ul><li>Flex-time </li></ul></ul><ul><ul><li>Best associates </li></ul></ul><ul><li>contingent contracts </li></ul><ul><ul><li>If I bring in $X this year, I ’ll receive Y% of it </li></ul></ul><ul><ul><li>Creates appearance of concession </li></ul></ul><ul><ul><li>Almost risk free </li></ul></ul>MORE TACTICS AND OPTIONS T is for Them and Us copyright 2010 Reason Press
    26. 29. <ul><li>Label concessions & demand reciprocity </li></ul><ul><li>Stress difficulty in making concession </li></ul><ul><ul><li>This will cut our profit razor thin </li></ul></ul><ul><ul><li>If I make this concession, you should be willing to promise me partnership next year </li></ul></ul><ul><ul><ul><ul><li>Concessions & Reciprocity </li></ul></ul></ul></ul>
    27. 30. tit for tat S is for Shakedown Artist copyright 2010 Reason Press
    28. 31. Tit for Tat <ul><li>The most successful dispute resolution strategy bar none </li></ul><ul><li>Begin cooperatively </li></ul><ul><li>Punish proportionally for non-cooperation (or you’ll enter into a cycle of victimization) </li></ul><ul><li>Forgive quickly and return to cooperation when your bargaining partner does so. </li></ul>How many times did she forgive
    29. 32. <ul><li>They ’re not evil; they have hidden interests </li></ul><ul><ul><li>Personal (unrelated to you or deal) </li></ul></ul><ul><ul><li>Relational (related to you but not to the deal, i.e., “face”) </li></ul></ul><ul><ul><li>Political, social, cultural </li></ul></ul>O Is for Outlaw copyright 2010 Reason Press
    30. 33. <ul><li>They are not irrational; they have hidden constraints </li></ul><ul><ul><li>Institutional </li></ul></ul><ul><ul><li>Precedential </li></ul></ul><ul><ul><li>Promises to others </li></ul></ul><ul><ul><li>Deadlines </li></ul></ul>
    31. 34. Practice practice practice