Premium Essay

Four Rules for Effective Negotiations

In: Business and Management

Submitted By shetew
Words 2648
Pages 11
13/06/2011

Four Rules for Effective Negotiations …
Harvard Business Publishing | For Educators | For Corporate Buyers | Visit Harvard Business School

FOLLOW HBR:

Register today and save 20%* off your first order! Details

Subscribe

Sign in / Register

My Account

Anthony Tjan
On: Entrepreneurship, Strategy, Managing yourself Anthony Tjan

Anthony Tjan is CEO, Managing Partner and Founder of the venture capital firm Cue Ball. An entrepreneur, investor, and senior advisor, Tjan has become a recognized business builder.

Four Rules for Effective Negotiations
8:30 AM Tuesday July 28, 2009 | Comments (19)

I've been involved in many negotiations in my career. They've all been different in some ways, and alike in others. But through them all, I've identified four "golden rules" to be the most helpful towards productive negotiation outcomes. The rules parallel different stages of a negotiation: 1. The background homework: Before any negotiation begins, understand the interests and positions of the other side relative to your own interests and positions. Put these points down and spend time in advance seeing things from the other side. 2. During the process: Don't negotiate against yourself. This is especially true if you don't fully know the position of the other side. Much is learned about what the other side really wants during the actual negotiation process. Stay firm on your initial set of positions and explain your rationale but don't give in too early on the points. Wait to better understand which points are more important to the other side. 3. The stalemate: There will often come a point in a negotiation where it feels like there is zero room for either side to budge. Two sides are stuck on their positions and may have lost sight of the overall goals of the negotiation. Emotion may have overtaken logic at this point. If you recognize that...

Similar Documents

Premium Essay

Exercise 1: Heirs to an Estate

...include some throwaway issues. What preparations do you need to make before the meeting? Preparation is first stage of negotiation process which starts with defining the key goals which means -what are the person’s expectations from the negotiation process? Also person involved in Negotiation process during preparation he should decide his or her BATNA- Best Alternative To a Negotiated Agreement. Identifying key issues in negotiation, setting priorities and developing support agreement for adopted position is also important parts of preparation before start negotiation with other party (Carrell, Heavrin, 2007). In order to perform an activity in a proper way we need to have some sort of preparation for it. Preparation is a key for a successful negotiation activity. For negotiation very first thing we need to understand is if there is anything to negotiate or not (If we were to sit down… (n.d.). For the preparation point of view before negotiations starts with my brother and sister I must have to look at the following things. BATNA Before the start of negotiation defining BATNA is important to make oneself in a strong position (Carrell, Heavrin, 2007). My BATNA would be to divide all the assets without dissolving them and make it as simple as possible. Identify key issues There are several key issues which we should go through during negotiation process. These issues are: 1-The main issue is that we have only 30 days to report our aunt’s attorney about the......

Words: 1898 - Pages: 8

Premium Essay

Negotiations

...and Personality in Negotiation Communication and Personality in Negotiation Negotiations occur on a daily basis in every part of life. Negotiation occurs in business, non-profit organizations, government branches, legal proceedings among nations, and in personal situations such as marriage, divorce, parenting, and everyday life (Wikipedia, 2012). Negotiations have fundamental characteristics and strategies to promote a successful negotiation. The negotiation process involves two or more parties that try to gain an advantage over the other party when each party reaches an agreement. A simple compromise is the sole outcome of a negotiation. Some major differences between two competing philosophies of negotiation There is negotiation by negation, where one side wins everything and the other loses all and creative negotiation where both sides win. Negotiation by negation is also seen as bargaining. Bargaining or haggling is a form of negotiation where the buyer and seller dispute terms or conditions on how the exact nature of a transaction will take place. The final result in this style of negotiation ends in a win lose situation for each party. Negotiation by negation involves the idea only one of the negotiating parties can be the winner. In the creative negotiation approach the ultimate goal is for parties to find a mutual beneficial solution through the negotiation. It can be difficult to reach a solution if the parties involved in the negotiation focus more on......

Words: 1138 - Pages: 5

Premium Essay

Negotiation

...person. when you finish, address the following questions. @asexDis:o.uss:ior.m@uestions 1. \tvhich of the four key temperaments was most ciearly displayed by the other person? Identify specific comments and behaviors to support your assessment. 2. which of the four key temperaments do you think your comments and behaviors most clearly displayed? 3. Do you agree with each other's self and other assessments? not, why do you think you see the behaviors differently? If rffib PERToRmHcE CoMPEiENct Es FoR THts CHnprER o e To understand communication as a Process To learn rules for effective iistening and speaking in "lt is a greal misfortune neither r o o o negotiation To learn communication filtering techniques for negotiation To recognize signs of destructive conflict in negotiation and what to do when they arise To learn to watch body language in negotiation To be cautious in written and electronic negotiation lo have enough wit to talk well nor enough judgment to be silenl." La BruYere 85 86 ChaPter 6 ' Communicating in Negotiation 87 tion is essential for negotiating success. The opening quotation summarizes the essence of negotiation communication. your goal shouldbe to say the right things in the right ways at the right times and to hear. what you say must be understood as you iniend it to be effective. saying the right things in the right ways is necessary for your message to be understood. Hearing the......

Words: 10714 - Pages: 43

Premium Essay

Social Media

...paper is going to be discussed the Facebook social media outlets and also detailed about four components of a legally astute social media marketing. It also explains the methods of alternative dispute resolution and determines the effective genuine disputes. This paper analyzes that how the federal government controlled the consumer transactions. It also examines the three branches of government for the discussion of impact of consumer transactions. This paper is going to be explained the agency relationship for utilizing the site for advertising. It also concludes this topic by providing the entire details of Twitter social media outlets. Four components of legally astute marketing Appropriate use of legal tools and law This was to be the component of astute Facebook social media marketing which was to manage the risks and to develop the realizable value for the initiation of rules which were offered by the law. This component provided the firms’ overall strategy which varied according to the legal tools of managers in business. This component analyzed that how the law affected the risk ratio for making business of  Facebook social media marketing and also it provided the proper application of legal tools for attaining the legal astute of social media marketing. Ability to exercise informed judgment This was to be the second component of social media marketing which provide the legal rules and outcomes for executing the facts and minor changes dramatically. It was also......

Words: 1273 - Pages: 6

Premium Essay

Business

...this problem, however, with negotiation skills training.   Such training is beyond the scope of this site; however, many good texts on negotiation are available (summaries of several can be found at http://www.colorado.edu/conflict) and a few particularly useful excerpts are summarized in this online training program.  In general, it is useful to know and understand the difference between integrative (or win-win) negotiation strategies and distributive (or win-lose) strategies.  Win-win strategies are most useful when it is possible to develop a solution to a problem in which both (or all) sides win, or at least come out ahead of where they would, were the conflict to continue.  When this is possible, following the rules of principled negotiation is usually the best approach. When the situation is unavoidably win-lose, however, as it often is (at least in part) in intractable conflicts, then principled negotiation is unlikely to work.  In that case, either distributive negotiation (which is much more adversarial) or a needs-based approach (such as analytical problem solving) is more likely to yield success.   Do you feel that someone is continually taking advantage of you? Do you seem to have to fight your corner aggressively, or ally with others, to win the resources you need? Or do you struggle to get what you want from people whose help you need, but over whom you have little direct authority? If so, you may need to brush up your win-win negotiation skills. There are......

Words: 8713 - Pages: 35

Premium Essay

China

...China: Business Do’s and Don’ts Introduction In business, knowing traditions and customs of host countries is paramount when beginning or carrying out negotiations. I find one of our most consistent and influential competitors and business allies to be China. China has for many years been a major contributor in the role of technology. Chinese technology and manufacturers are a huge part of the international trading system in America. In this paper I will discuss cultural differences, negotiation tactics, traditional and non-traditional customs, and attempt to explain effective methods of communication in the business sector of Chinese culture. I will begin by comparing and contrasting the cultures of China and America, and continue, by implementing ideas for effective communication and ways of successfully conducting business with China. China has recently had an economic spike, and was reported in an article in the Huffington Post as doing better now than ever before: “China is still faced with many daunting challenges ranging from corruption to regional income gaps and environmental degradation. But China is indeed better than at any time in its modern history. The country is now the world's largest laboratory for economic, social and political experimentation. There is every reason to believe that China, which has a continuously adaptive political system, will reach its objective of becoming the world's largest economy in a decade's time -- with all the......

Words: 1882 - Pages: 8

Premium Essay

Case 1, Week 5

...Should Follow During a Negotiation "A negotiation is an interactive communication process that may take place whenever we want something from someone else, or another person wants something from us” (Shell, p. 6). In order to have a successful negotiation, there are some guidelines that should be followed in the negotiation of the procurement of the Corporate Transfer Services (CTS). These guidelines include, but are not limited to, setting mutual guidelines and ground rules, ensuring all involved parties are aware of the negotiation process, ensuring all involved parties agree upon a safe, neutral location, free from outside disturbances to hold the negotiation, ensuring every involved party has presented all of their issues, interests, their position (where they stand on the issues) and their intention, ensuring all involved parties provide alternative solutions to the issues at hand and ensuring that a neutral party is taking notes or meeting minutes. Some critical things to remember in any negotiation are to avoid the appearance of being uninformed or overly aggressive and to be careful not to over-negotiate. It’s very important to know when to cut off the discussion. In addition, integrative bargaining should be used, if at all possible, to determine if there is a way for all involved parties to maximize their interests, instead of making a simple 50/50 split. Be sure to separate the issues from the people, regardless of the style of negotiation that each party......

Words: 1559 - Pages: 7

Premium Essay

Social Media

... Davenport; LEG 100 May 19, 2014 This paper is going to be discussed the Twitter social media outlets and also detailed about four components of legally astute social media marketing. It explains the methods of alternative dispute resolution and determines the effective genuine disputes. This paper analyzes that how the federal government controlled the consumer transactions. It also examines the three branches of government for the discussion of impact of consumer transactions. This paper is going to be explained the agency relationship for utilizing the site for advertising. It also concludes this topic by providing the entire details of Twitter social media outlets. This was to be the component of astute Twitter social media marketing which was to manage the risks and to develop the realizable value for the initiation of rules which were offended by the law. The component provided the firms’ overall strategy which varied according to the legal tools of managers in business. This component analyzed that how the law affected the risk ratio for making business of Twitter social media marketing and also it provided the proper application of legal tools for attaining the legal astute of social media marketing. The ability to exercise informed judgment was to be the second component of social media marketing which provides the legal rules and outcomes for executing the facts and minor changes dramatically. It was also to serve as a guide for making the exercise of......

Words: 1323 - Pages: 6

Premium Essay

Business Communication

...Persuasion d. Ethical standard Ans:C 5. The responsibilities of the office manager in a firm that produces electronics spares is: a. Everything in the office runs efficiently b. Furniture and other equipment in the office is adequate c. Processing all the incoming official mail and responding to some d. All of the above Ans:D 6. Labov‟s Storytelling Model based on: a. Communication through speech b. Language learning c. Group Discussions d. None of the above Ans:A 7. Diagonal Communication is basically the: a. Communication across boundaries b. Communication between the CEO and the managers c. Communication through body language d. Communication within a department Ans:B 8. How to make Oral Communication Effective? a. By Clarity b. By Brevity c. By Right words d. All of the above Ans:D 9. Direct Eye contact of more than 10 seconds can create: a. Discomfort & Anxiety b. Emotional relationship between listeners and speakers c. Excitement d. None of the above Ans:A...

Words: 8234 - Pages: 33

Free Essay

Bus 520

...Conflict, Decision Making, and Organizational Design Dr. Cooper Bus 520 Conflict, Decision Making, and Organizational Design Introduction In the era of globalization where businesses have expanded across the globe, competition has increased and has formed a new dynamism in the industry and the market itself. Every company works extra ordinarily to compete with its rivals and sustain its position in the industry. Well planned strategies are developed to give businesses a focused path to follow in order to achieve the aims and objectives of the firm. Labor is the most valuable asset in the whole process. Thus, keeping workers happy and satisfied is a challenge and the most significant task for the leaders of any firm. There are times when employees and employers have conflicts and disagreements over many issues. The following essay is the evaluation of such a case. It will discuss about the conflict, decision making and organizational design of McDonalds. Discussions Before we begin with the conflicts the company faces, and what are the conflict management strategies etc, let’s first discuss the company itself and its human resource. McDonalds Company History The McDonald's Corporation is American global operators who are the presenters of fast food restaurants. It is the top-selling fast food chain in the world. The first McDonald's restaurant was started on 15th May 1940 by the brothers Richard and Maurice McDonald ("Dick & Mac") in San......

Words: 1845 - Pages: 8

Premium Essay

Cross Cultural Negotiation

...Executive summary The report is based on the question stated below: Culture – Negotiation, "Cross-cultural communication often involves several barriers preventing success, the aim of this report is to identify the various problems that may arise in an attempt to explain how to overcome them" Basically we`re going to have a look at the meaning of communication before getting to understand the different cultures we come across worldwide. What defines communication, the different types of communicating and how is communication used. When understanding these subjects’ doors open to have a look at the differences communication is altered and affected by different cultures and how it is used in doing business across the globe. Hopefully it will reveal the answer to the question stated above. This report explores the communication process and identifies how varying cultures have an effect. The differing regional norms within the continents globally are also compared to aid successful communication across different cultures. Introduction In its basic form, negotiation is a method of conflict resolution. It is a problem-solving process in which two or more parties attempt to resolve their disagreement or conflict in a manner, and through a process, that is mutually agreeable. Whereas the general concept of negotiation is easy enough to understand, in practice it can be an extremely difficult proposition. Opposing views about what is right and wrong, disagreement on......

Words: 6019 - Pages: 25

Premium Essay

Negoation

...Managing Negotiation Introduction From reaching an agreement with a large client to bargaining for a higher starting salary, the ability to negotiate effectively is a critical component of success in business. One fundamental aspect of a negotiation is if it will be approached as distributive bargaining or as an integrative negotiation. Distributive bargaining is a competitive, zero-sum negotiation in which there are a limited amount of resources available, while integrative negotiation takes place when “the parties’ goals are not seen as mutually exclusive and in which the focus is on making it possible for both sides to achieve their objectives” (Nelson and Quick 2009). For example, a dispute over land would necessitate distributive bargaining, whereas a partnership between two firms to buy and sell a product could be made through integrative negotiation. The process of two or more parties reaching a joint decision is influenced by a variety of factors. In analyzing business negotiation, we will first give an overview of past scholarly research on the topic, and then explore more current mental models of negotiation. We will also examine the possible hurdles to reaching agreements posed by cross cultural differences, particularly between American and Chinese business people. Finally, we discuss the relative importance of BATNAs (Best Alternative to Negotiated Agreement) and contributions in the bargaining process. History of Negotiation Research In the......

Words: 4096 - Pages: 17

Premium Essay

Negotiation Techniques

...Counseling Negotiations Skills of NegotiationsNegotiation TTechniques for Default Borrower Counseling Skills of Negotiation Techniques for Defaults ( Wells Fargo Home Mortgage 4680 Hallmark Parkway San Bernardino, CA 92407 Table of Contents Day 1 INTRODUCTION CLASS EXPECTATIONS LOGISTICS LINK TO VISION, CORE CAPABILITIES COURSE OBJECTIVES BUILDING BLOCKS OF NEGOTIATIONS FRAMEWORK FOR NEGOTIATIONS CONTEXT AND NEGOTIATION UNIQUE NATURE OF A BCS CALL AS A NEGOTIATION ROLE OF COUNSELORS IN THE NEGOTIATION THE “US AND THEM” IN NEGOTIATED RELATIONSHIPS THE PARALLEL INTEREST MODEL FOUR STAGES OF EFFECTIVE NEGOTIATIONS STAGE ONE: COURTSHIP/ORIENTATION STAGE TWO: RESISTANCE STEPS THREE AND FOUR: COMMITMENT AND AGREEMENT STRATEGIES FOR OVERCOMING BARRIERS UNDERSTANDING RESISTANCE YOUR REACTION THEIR EMOTION THEIR POSITION THEIR DISSATISFACTION THEIR POWER CONCLUSION PERSONAL ACTION PLAN EVALUATION Introduction 5 CLASS EXPECTATIONS 5 LOGISTICS 5 LINK TO VISION, CORE CAPABILITIES 6 COURSE OBJECTIVES 8 BUILDING BLOCKS OF NEGOTIATIONS 9 INTRODUCTION 9 FRAMEWORK FOR NEGOTIATIONS 9 CONTEXT AND NEGOTIATION 13 UNIQUE NATURE OF A BCS CALL AS A NEGOTIATION 14 ROLE OF COUNSELORS IN THE NEGOTIATION 15 ......

Words: 16128 - Pages: 65

Premium Essay

Why China Plays Hardball

...Introduction This report analyzes the cross-cultural negotiations happening between Australia and China through organizational business transactions. With today’s modern trades, negotiators aim to attain a “win-win” situation between one another under a rational and wholesome environment. It is a necessity for multinational corporations to have a cross-cultural based management. Differences of cultures across the globe would induce large organizations to embrace themselves with a variety of counter strategies, as it can majorly impact the firm’s performances if left unattended. Hofstede (1983) established that the differences between each nation create diversity, which exist in various aspects mainly: Power distance, uncertainty avoidance, Individualism, masculinity and long term versus short-term orientation. These factors implement the approaches from which a nation converse with the other healthily creating little to no conflict. ‘Why China plays hardball’ article presents the different business cultures which are dealt between Australia and China. Through analyzing the article, we may compare the issues of culture between the nations. Cultural biases Ethnocentrism is an assumption that one’s way is the best way of doing and all other possibilities are not relevant under no matter whatever conditions applied (Deresky & Christopher 2012). Within this article, it implements the hard facts of global corporations joining the Chinese market in creating a term of......

Words: 1657 - Pages: 7

Premium Essay

Tlc de Colombia

...International Relations and Agreements TEACHING: James Paul Linero COLOMBIA AND FREE TRADE AGREEMENTS First of all it is necessary to know that a free trade agreement; a Free Trade Agreement (FTA) is a regional or bilateral trade agreement to expand the market of goods and services between countries. Basically, is the elimination or substantial reduction of tariffs on goods between the parties, and agreements on services. This agreement is governed by the rules of the World Trade Organization (WTO) or by mutual agreement between the countries. The main objectives of an (FTA) Free Trade Agreement are: * Remove barriers that affect or impair trade. * Promote conditions of fair competition. * Increase investment opportunities. * Provide adequate protection to intellectual property rights. * Establish effective processes for stimulating domestic production. * Encourage cooperation between friends. * Offering a solution to disputes. The free trade agreements are important because they are an effective means to ensure access of products to foreign markets, in an easier and without barriers. They also allow increasing the marketing of national products, to generate more employment, to modernize the productive, improve the welfare of the people and promote the creation of new firms by domestic and foreign investors. But trade also serves to lower prices paid by consumers for goods that are not produced in the country. Advantages of a (FTA)......

Words: 1434 - Pages: 6