Negotiation

March 11

Pakistani Prunes!

PowerPoint Summary of:Key Negotiation Concepts

Business negotiation

Dr. Rubio Sanchez – UN Standing Committee on World Hunger (White sheet)

&

Dr. Kim Wilson, TechnoGen (medical /nutritional company)

PowerPoint Summary of:Key Negotiation Concepts

You are competing for a crop of rare and very valuable prunes….

that only grow in limited numbers

…and only in Pakistan.

Those facts are fixed—you can’t grow more prunes somewhere else!

In the past, these prunes had been purchased by the UN, and no one else has been interested.

But this year another organization—TechnoGen-- has surfaced and they want the prunes too.

PowerPoint Summary of:Key Negotiation Concepts

Pakistani Prunes

To your knowledge, no one else wants the prunes, but you fear you will be in a bidding war with each other.

Dr. Sanchez requests a meeting with Dr. Wilson to see if they can work out some sort of arrangement.

What to do:

Prep first: (About 10 minutes—you can do this in pairs). Each person fill out a “prep sheet” to turn in.

What do you want to figure out before you meet?

What to do:

Find your partner/competitor and negotiate.

Write down your agreement—and sign it.

(Also put your name and # on it legibly—you’ll be handing this in too.)

Debrief

How many pairs reached agreement?

How many pairs split the prune crop in some way (each getting ½, each taking different years, etc?)

Did you trust the other side to follow through on their agreement? Why or why not?

If not—what did you do about this?

Debrief

How many figured out that you wanted different parts of the prune?

How did you figure that out?

Did you trust the other side to follow through on their agreement? Why or why not?

If not—what did you do about this?

Key learning element here is the difference between Positions and

Interests

Positions: Simple statements about what you want. No reasons, no No subtlety, no justification. Just a demand:

I want the orange!

Interests: The reasons underlying the position

—what you really want or need

—the answer to the question WHY. I need the rind to bake a cake.

I'm hungry. I want to eat the orange.

Identifying Interests…

Is key to:

Cooperative

Interest-based

Integrative

Principled

PowerPoint Summary of:Key Negotiation Concepts

Negotiation

Different words, same thing!

7 Principles of “Principled Negotiation” – Getting to Yes

1. Separate the People from the Problem2. Attend to Communication Issues3. Focus on interests, not positions4. Generate options for mutual gain (win-win)5. Apply Objective Criteria6. Compare with your BATNA7. Work with fair and realistic committments

PowerPoint Summary of:Key Negotiation Concepts

Make up Assignment1. Do the “Pakistani Prunes” Negotiation. Get the scenarios from Heidi, and

give one role or the other (doesn’t matter which) to a friend.  (Promise me you won't read both roles before you do it--you'll lose all the learning and fun that way!!)

2. Prep the negotiation before you do it (send me your “prep sheet”); Do the negotiation (prep and negotiating should take 20-30 minutes) and write up a summary of your agreement.

3.  THEN (after the exercise and your write up of it), watch the video and hand in the notes you took --on the video--to me to show you watched it. What did you learn about negotiating differently than you did during the Pakistani Prunes Negotiation?

PowerPoint Summary of:Key Negotiation Concepts