1 NegotiatingAcrossBorders Catherine Lee,

2 Objectives To present a process for preparing a negotiation To present a process for preparing a negotiation To delineate the impact of behavior on outcome and how to manage your behavior to influence across cultures. To delineate the impact of behavior on outcome and how to manage your behavior to influence across cultures.

3 Harvard Business Review “ If you don ’ t negotiate for your salary, they walk away happy that they paid you less, but wonder why they hired you. ” — Hannah Riley Bowles and Kathleen McGinn

4 Power “ All power is based on perception. If you think you ’ ve got it, then you ’ ve got it. If you think you don ’ t have it, even if you have it, then you don ’ t have it. ” — You Can Negotiate Anything, Herb Cohen

5 Trust TRUST = CONFIDENT EXPECTATIONS What builds Trust?

6 Trust Two Essential Ingredients for Initiating TRUST Two Essential Ingredients for Initiating TRUST  VULNERABILITY  CONSISTENCY

7 Influence How can you move someone in your direction?

8 Perspective Taking— Whose Point of View MotivationsQuestioning: What, How, and Why? NeedsOptions

9 Getting the Mandate: The Negotiation Process External Negotiation ImplementationNeed Internal Negotiation Collect Data Collect Data Sell Agreement to Mandate Team Sell Agreement to Mandate Team Plan/ Strategize Plan/ Strategize Get Mandate Get Mandate Validate Needs and Wants Validate Needs and Wants Manage Behaviors Manage Behaviors Maintain Collaborative Climate Maintain Collaborative Climate Secure Agreement Secure Agreement

10 Process for Preparation of a Negotiation Five Steps in the Preparation Process 1. Determine the objective 2. Identify and rank the issues – yours and theirs 3. Set the parameters 4. Develop your strengths 5. Brainstorm alternatives

11 1. Determine the Objective Expectations of outcome — What will you walk away with? Expectations of outcome — What will you walk away with? Specific results needed Specific results needed Short term results placed in long term plan Short term results placed in long term plan

12 2. Identify and Rank Issues List all issues List all issues Assign priorities to issues Assign priorities to issues Determine which are negotiable and which are non-negotiable Determine which are negotiable and which are non-negotiable Decide which are “ musts ” vs. “ wants ” Decide which are “ musts ” vs. “ wants ” Identify other party ’ s issues and priorities Identify other party ’ s issues and priorities

13 Determine range vs. fixed target Determine range vs. fixed target Where to start Where to start When to walk or close When to walk or close 3. Set Parameters Fixed Target BestWorst Target

14 Aspiration Levels Is there a relationship between aspiration levels and success? 1. Finding: Persons with higher aspiration levels won awards. 2. Finding: Skilled negotiators with high aspiration levels were big winners regardless of whether they had power. Is there a relationship between aspiration levels and success? 1. Finding: Persons with higher aspiration levels won awards. 2. Finding: Skilled negotiators with high aspiration levels were big winners regardless of whether they had power.

15 Aspiration Levels (Cont ’ d) 3. Finding: Persons with high aspirations were winners in every case where they opposed low aspirants. It did not matter if they were unskilled or had less power. — The Negotiating Game, Dr. Chester L. Karass

16 Russian Proverb “ There are two fools in every market: One asks too little, one asks too much. ”

17 You benefit from knowing your own strengths by being able to: Offer viable options. Offer viable options. Know what concessions can be made. Know what concessions can be made. Leverage better for what you need. Leverage better for what you need. Strategically plan timing, order of priority, and concessions. Strategically plan timing, order of priority, and concessions. 4. Develop Your Strengths

18 5. Brainstorm Alternatives As many alternatives as possible As many alternatives as possible Brainstorm options for each issue Brainstorm options for each issue Valuable to other side Valuable to other side Power in number of alternatives Power in number of alternatives

19 “ The Art of War ” by Sun Tzu First Rule First Rule  Avoid War Second Rule Second Rule  Offer Options

20 Logic Is Not Persuasive

21 Behaviors in Negotiating Behaviors Motives Intentions Beliefs Perceptions Attitudes Personality Feelings Observable behaviors— what a person says and does— reveal only 10% of who that person is.

22 Negotiating Behaviors: Creative Problem Solving Negotiating Behaviors Business Impact    Interpersonal Impact Open & Honest Increases Clarity Irritates Antagonizes Increases Risk Seen as Unwilling      Builds Trust Creates Open Climate Stalls Negotiation Reduces Trust Less Chance to Agree Complicates   Express Feelings Behavior Alert Indicate Disagreement Rankle Attack Reason Overload Counter Express Feelings Behavior Alert Indicate Disagreement Rankle Attack Reason Overload Counter

23 Influencing Behaviors: Valuing Differences Interpersonal Impact Influencing Behaviors Business Impact    Perceived Interest in Others Listening Reinforcement Builds a Foundation for Trust      More Harmony Better Solutions Reduces Error Improves Quality Maintains Relationships   Ask Probe Acknowledge Clarify Summarize Build Behavior Alert Ask Probe Acknowledge Clarify Summarize Build Behavior Alert

24 Behaviors to Use and Avoid Use Use Clarifying and Summarizing Clarifying and Summarizing Requesting Information Requesting Information Expressing Feelings Expressing Feelings Behavior Alert (Except Disagreeing) Behavior Alert (Except Disagreeing) Avoid Ranklers Ranklers Counters Counters Attacking Attacking Reason Overload Reason Overload

25 Building Model Options for handling ideas: Suggestion Yes No Support Disagree Agree ?

26 Building Model Options for handling ideas: Suggestion Yes No Support Disagree Agree ? BuildCounter

27 Building Model Options for handling ideas: Suggestion Yes No Support Disagree Find Flaw Patch Flaw Agree ? BuildCounter

28 John Wayne is Dead Most Difficult Negotiators Most Difficult Negotiators  Our Side and their side  Straightforward vs. Silent Types  Empathy with questions.  Value the difference

Recommended Reading The New Rules Of International Negotiation: Building Relationships, Earning Trust, And Creating Influence Around The World The New Rules Of International Negotiation: Building Relationships, Earning Trust, And Creating Influence Around The World  Catherine M. Lee 29