Effectual logic driven negotiation

Target audience: One day workshop 12-25 people nascent and practicing entrepreneurs MBA students, master students One day workshop 12-25 people

Characteristics of effectual negotiation Causal Persuade and learn Convince and sell Small steps Negotiate the big deal Looking for other options Focus on one target Negotiate the outcomes Negotiate the conditions

Learning objectives Knowledge Skills Attitude Precommitments reduces uncertainty Learn what the other party's boundaries are Win win Value can be co-created Be able to adjust own position based on info shared Open to changes Small negotiation cycles and experiment Frequent communication and adjustments of own tactics Relational attitude vs. transaction Offer controled exits (affordable loss) Learn how to design risk and uncertainty reducing commitments Information (means, motive, ...) sharing is critically for success Creativity Surprises are good Self-efficacy Negotiating is a joined learning process (not convincing) Docility (willingness to being influenced)

In situation game setting: boy and girl in a bar, both individual briefing of the setting boy wants the girl to go with him girls wants to negotiate other options purpose both stay in game not committing too much getting info exchanged debriefing: Were you able to adjust your own position based on info shared? Have there been other options considered? Did you learn what the other party's boundaries and motives are? (tell me how to flirt with you) Docility (willingness to being influenced)

Prepare for negotations Because cannot prepare definite goals, what else to prepare? think about absolute boundaries: what can not be negotiated? what kind of information can you afford to risk? what do you have to offer? (means, intentions/motives)

Role playing 2 stakeholders get different briefings for a situation under uncertainty (e.g. Sarasvathy: widget x) design to reduce risk and uncertainty discuss different results (risk, uncertainty reduction, flexibility) Variant: causal results (negotiating the big package) and compare pros and cons

Toolbox What to do if: trust issues come up how to devide the pie prisoners dilema game over several rounds show that cooperating partners take the biggest pie introduce tit-for-tat strategy (see Axelrod) how to devide the pie case (e.g. RedBull)/in role play: what needs to be devided upfront? equity, decision rights, return, incentive structures

what to negotiate metaphors: e.g. - playing Beethoven (can we plan from start to finish; negotiate conditions) vs. playing Jazz session (has to be co-created; negotiate the outcome); - quilt vs. jig-saw