High Performance
Negotiation Skills
MGS 4311
March 20, 2015
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March 20, 2015
Course Deliverables
Experimental learning
Clear, immediate, and helpful feedback
Strategies and toolbox for negotiation
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March 20, 2015
Negotiation Skills as Core
Leadership competency
Key communication & influence tool for interdependent
relationships (in & outside the company)
Most people not very good at negotiation (e.g., over 80%
of corporate executives and CEOs leave money on the
table)
People dont realize this
Our challenge is to dramatically improve ability to:
Create value
Claim value
Build trust
Research basis in economics and psychology
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March 20, 2015
What Does it Mean to Be an
Effective Negotiator?
Individual level
Getting valued resources (money, people, projects)
Maintaining & building relationships
Enhancing your reputation
People trust you
Enjoying peace of mind
Company level
Profitable deal making (effective sales force)
Getting positive (rather than negative) press
Enhancing reputation of company
Building the brand
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March 20, 2015
Major Traps of Negotiation
Leaving money on the table
(lose-lose negotiation)
Settling for too little
(Winners curse)
Walking away from the table
(hubris)
Settling for terms that are worse than your
current situation
(agreement bias)
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March 20, 2015
Negotiation Myths
Myth 1: Negotiations are fixed-sum
Myth 2: You need to be either tough or soft
Myth 3: Good negotiators are born
Myth 4: Experience is a great teacher
Myth 5: Good negotiators take risks
Myth 6: Good negotiators rely on intuition
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March 20, 2015
Why are people ineffective
negotiators?
Faulty feedback
Confirmation bias
Egocentrism
Satisficing
Self-Reinforsing incompetence
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March 20, 2015
Principled Negotiator!!!
PEOPLE - separate people from the problem
INTERESTS - focus on interests, not positions
OPTIONS - generate a variety of possibilities
before deciding what to do
CRITERIA - insist that result be based on some
objective standards
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March 20, 2015
Learning Objectives
Improved ability to negotiate
General strategy (mental model) for successful
negotiation
Enlightened model for negotiation
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March 20, 2015
What Have You Gotten Yourself Into?
Preparation
Agents &
third parties
Team negotiation
Coalition analysis
Secondary
table
Primary
table
Info &
communication
Integrative skills
Fairness
Distributive skills
You
Feedback
Experience
Expertise
Other party
Group
negotiation
