Master in Decision Making & Innovation
To start with the Negotiation Models activity feedback, the most important step was to plan a good strategy and to think about all the questions you needed to ask the other side. Apart from that, you needed to be prepared for the toughest questions they may have asked you.
On the one hand, you were able to identify lots of interests from the other party and that’s a good point. Uncovering as many of the parties’ interests as possible and working together as partners rather than adversaries enables negotiators to identify mutual gains and discover and create more value overall.
Some of the possibilities you had to consider when identifying Larry’s interests were:
- Work for an internet and social media company.
- Feel happy, seen, attended to and cared for at work.
- Get best position available in line with qualifications.
- Avoid damaging future reputation.
- Have growth opportunities.
Some of the possibilities you had to consider when identifying May’s interests were:
- Hire a strong team player with drive.
- Look good to her boss.
- Enhance personal credibility.
- Establish a good working rapport.
Talking about the different outcomes of the negotiation process, you did a good job on the whole. The negotiation processes were well organized and it was clear that you had researched and learnt your role at heart, good job!
It was interesting to see that some of you actually did not share all the interests with the other party while some of you did. We want you to reflect on the following questions:
- For those who played Larry, did you tell May that you had another offer? Did you reveal that it wasn’t one that you were very interested in? Did you tell her about your debt or financial concerns? Why? Why not?
- For those who played May, did you disclose to Larry that you put your reputation on the line to get approval to make him an offer or that you knew the offer was below the market and your company standard? Why? Why not?
Many negotiators fear that by disclosing information about their interests, they could weaken their position and enable the other side to take advantage of them. As a result, they tend to under-share information that could lead to higher value agreements. But, it is much easier for parties to construct proposals that satisfy the other side’s interests if they know what those interests are.
On the the other hand, you were too centered on the deal at hand and this could be a risky attitude at the end and can result in poor decision-making (getting more money today may mean getting less money next time).
Regarding the REVIEW questions, most of you (the parties who actually got better result in the negotiation) stated that your outcome was good because you got everything you wanted but you did not take into account the risk of attempting to get more money without legitimacy and thus risking losing the whole deal. If you were only focused on money, you probably lost the possibilities of creating more value, don’t you think so?
Taking into account the seven elements framework used to define the strategy we can say that a good outcome is one that:
- Is better than our Best Alternative to a Negotiated Agreement.
- Satisfies our interests well and theirs at least acceptably.
- Is among the best of many options.
- Is based on legitimacy so everyone feels it is fair.
- Is built on good communication.
- Contains well-planned commitments that are sufficient, realistic and operational.
- Improves the working relationship.
Finally, we want to take advantage of this opportunity and say that some of you had problems when recording their videos. In the future, we highly recommend that you test the platform you are going to use before the actual role-playing takes place, thus, you will avoid any unexpected event that may occur during the recording.
I would now congratulate all of you for this activity, I am sure you have learnt a lot, we have, for sure!