1 Negotiating International Business Transactions: Advanced Negotiation Michael Wheeler Professor of Management Harvard Business School

2 Airbus outsold Boeing each of the last five years Airbus’s top salesman, John Leahy, mocked his rival saying that Boeing was “doing a good job of not selling airplanes.” Boeing fired its chief salesman WSJ Europe, Friday, June 10, 2005 Airbus and Boeing

3 Does Airbus simply make better planes? Does it get better financial & political support? Or is Airbus better at negotiating? Boeing’s problem

4 Faster development of Boeing 787 Greater reliance on customer input, and... A new approach to negotiation Boeing’s response

5 Internal negotiation 1. Map micro and macro negotiations 2. Anticipate inevitable conflict over both substance and process 3. Recognize organizational culture & norms 4. Manage on-going negotiation

6 Giving direction SITUATION: Here’s what I think we face. TASK: Here’s what I think we should do. INTENT: Here’s why. CONCERNS: Here’s what we should watch. FEEDBACK: Now, talk to me. Karl Weick, University of Michigan

7 Intuition at Work Step 1: Familiarize the group with the tentative plan Step 2: Have each person imagine a complete fiasco Step 3: Generate reasons for failure Step 4: Consolidate the lists Step 5: Revisit the plan Step 6: Review the list during implementation. USE “PRE-MORTEMS” TO TEST A PLAN OR DECISION