Planning and Strategy Notes Flashcards
What are the three main types of goals?
Tangible (substantive): material aspects, money, resources
Intangible: relationships, ego, attitude, reputation
Procedural: shaping the agenda, having a voice on the table
What are the characteristics of goals?
- Goals are not wanted. Wants to motivate your goals but they are not the same
- Goals are sometimes linked with the other party; they need to be linked in order for negotiation to occur
- there are limits to what realistic goals can be
- effective goals are concrete, measurable, specific
Performance goals and Learning goal
Learning goal: focus on long-term achievements
Performance goals: short-term achievements
Research shows that MBA students who had more learning goals made more concessions, were more cooperative and reached lower rates of impasse (walking away)
Phases of Negotiation
Phase 1: Preparation
Phase 2: Relationship building
Phase 3: Information gathering
Phase 4: Information presenting/using
Phase 5: Biding
Phase 6: Closing the deal
Phase 7: Implementing the deal
This is not always a linear approach
Destructive Nature of Goals
- Too much fixation on a single goal can make you overlook other important goals
- Goals should not be extremely challenging that it requires risky implementation, extreme asks, and drives the other party away
- very challenging goals can motivate people to use unethical strategies
- a narrow focus on goals can make the negotiator not listen to the other party
What is the main difference between strategy and tactic?
The main difference between tactics and strategy is scale, perspective, and immediacy.
Tactics: are short-term, adaptive moves designed to pursue a broad strategy which in turn provides stability, continuity, and direction in the negotiation
- tactics are subordinates of strategy
- they are driven by strategy
What are some of the types of strategies we can implement?
Competition: described as distributive win-lose
Collaboration: interrogative strategy, win-win
Accommodation: win-lose but in opposite directions
What are the negatives of the Competition, Collaboration and Accommodation strategies?
Competition: creates a superiority-inferiority, we and them mindset
Collaboration: can be manipulated and a “we can solve any problem” attitude can backfire
Accommodation: can lead to false sense of well;-being and ignore the accumulating gives on substantive issues
The Planning Process
- Defining the negotiation goal: tangible, intangible, procedural
- Define the major issues
- single issue distributive, can be integrative if increased the number of issues
- multiple issues: integrative and logrolling- analysis of all the possible issues
- previous experiences with similar issues
- research and gather information
- consultation with experts in that industry
- Assemble issues and prioritize (BARGAINING MIX): which issues are important and which are linked
- Define the interest: Interest maybe
- Substantive: directly related to the focal issues
- Process-based: related to how the negotiators behave
- Relationship-based
- Intangible: principles and ethics - Know your limits: BATNA, Resistance
- Analyze the other party’s BATNA, interests, and resistance
- Setting opening bids
- targets should be specific: difficult but achievable and verifiable
- targets setting requires proactive thinking about one’s objectives
- target setting may require considering how to package several issues and objectives
- Target setting requires an understanding of trade-offs and throwaways - Assessing the social context in the negotiation is taking place
- Presenting the issue to the other party
Framing: support and factual arguments
Structure and plan: agenda, sequence, framing, packaging, and formula (ASFPF)
Framing: how you present the issues
Linking: the relationship between the issues
Ordering the issues: sequential or simultaneous
- Protocol: what agenda should we follow
What is the difference between experienced and new negotiators?
- Experienced negotiators are more likely to arrange the negotiation by shaping issues
- New negotiators are more likely to prioritize tactical and strategic planning
What are the components of investigative negotiation?
- ask the other side why they want what they want
- listen to their unreasonable demands and come up with alternatives
- seek to lessen the other party’s constraints (solve their problem)
- create a common ground
- continue to investigate even when the deal appears to be broken
Before the deal breaks down
- take time to build a relationship with the other party
- provide mechanism for renegotiation
- consider in involving a third party
After the deal breaks down
- avoid negativity
- decide if its worth to renegoitate
- create value from renegotiation
- create the right environment for renegotiation
- analyze the cost of failure
- involve critical parties
- consider how to involve mediator
Is it better to state minor issues first or major issues first?
Research suggests that it is best to state minor issues first to create a commitment to the negotiation and then the sunk cost fallacy will eventually kick in
The Pareto Efficient Frontier
Implies that resources are allocated in the most economically efficient manner but do not impose fairness
- there exists an alternative that would benefit at least one party without harming the other party
