Tetsuo Morishita Professor, Sophia University

 Since 2001  2 days competition held at Sophia University, Tokyo, in late November or early December  Round A: Arbitration, Round B: Negotiation  Cross-border business transactions between fictional companies in Arbitria and Negoland  15 leading Japanese universities & the University of Hong Kong, Team Australia and National University of Singapore

 Reach agreements  Distribute 50:50  Make your counterparty accept our proposals  Follow the pre-set agendas and schedules  Amicable atmosphere/ no fight ⇒The above elements should not be considered as preconditions for good negotiation ⇒Principled Negotiation

 Explain the view of the Steering Committee about what the elements for Better Negotiation are  For example, ◦ Reasonable setting of objectives/goals for Negotiation ◦ Appropriate setting of strategy to achieve the objectives/goals ◦ Constructive proposals ◦ Effective and persuasive discussion ◦ Communication ◦ Principled Negotiation ◦ BATNA ◦ Outline of the Agreement

How to prepare  Understand your company, the counterparty, the market, the negotiation  Preparation using 7 elements ◦ What is your and your counterparty’s BATNA? ◦ What is your and your counterparty’s INTEREST? ◦ What kind of OPTIONS may be considered which would satisfy both parties’ Interest? ◦ Is there any STANDARD which may be used? ◦ What kind of statements and questions should you make for better COMMUNICATION? ◦ What is the Relationship of the parties? ◦ What is the possible COMMITMENTS (possible final agreements)?

 BATNA, INTEREST ◦ Estimate your counterparty’s BATNA, INTEREST. ◦ Check your estimation during the negotiation by posing effective questions and revise your estimation.  INTEREST ◦ Understand your own interest ◦ Repeat WHY? ◦ Consider the priorities between INTERESTS

 COMMUNICATION ◦ Prepare the opening ◦ Prepare the List of Questions  COMMITMENT ◦ Write a draft contract ◦ Contract need to be “clear” and “specific”  Blue will do … ◦ Details are important  Blue will apology …

 Participants tend to focus too much on the substance of the negotiation. Evaluation Sheet, however, lists other important elements - How to start? How to create good atmosphere - Persuasive statements with reasons - The good balance of “talking” and “listening” - Communication focusing on parties interests, not positions - Effort to create values by making use of the difference between parties - Flexible and creative proposals - Specific and realistic agreement - Making a memorandum which reflects the agreement accurately - Teamwork ⇒PRACTICE, PRACTICE, PRACTICE

 How to Start  Agreement on Process  Information Exchange  Identify BATNA, Interests, Issues  Create Options  Choose the best option  Clear commitment  Written Agreement  Negotiation is similar to “Jazz” : ad-lib, timing, challenging  Negotiation is similar to “Go” ： strategic placing of pieces, birds’ eye-view

 Try to control your counterparty, push “your” idea ◦ Autonomy, independence and contribution are important element to increase satisfaction  Too amicable, easy compromise ◦ Say “No” when necessary and appropriate ◦ Effort to maximize your interest ◦ Overestimation of the value of the Relationship  Too formalistic ◦ Enjoy Jazz and Go  Too abstract, general and vague ◦ Details are important and the source of value creation ◦ Different understandings on the same word  Unrealistic commitment ◦ Can you make clear and reasonable instructions to your subordinate? Is your agreement feasible, realistic and economically justified?