1. Effectual logic driven negotiation

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

3. 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

4. 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)

5. 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)

6. 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)

7. 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

8. 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

9. 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