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The Great Negotiation Hoax

A critique of the Harvard method and a defence of positional bargaining.

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The Great Negotiation Hoax

  1. 1. The Great Negotiation Hoax
  2. 2. Positional Bargaining Revisited
  3. 3. Positional Bargaining <ul><li>Competitive/Adversarial negotiators move psychologically against their opponents, try to maximize their own returns, strive for extreme results, begin with less realistic opening offers, behave in an adversarial and insincere manner, focus mainly on their own positions rather than rely on objective standards, frequently resort to threats , minimize the disclosure of their own information, are closed and untrusting , endeavour to satisfy the interests of their own side, try to make minimal concessions , and manipulate opponents. </li></ul><ul><li>Charles Craver, Negotiator Styles in Bargaining </li></ul>
  4. 4. Principled Negotiation
  5. 5. The Right Way to Negotiate Principled Negotiation Positional Bargaining Integrative Distributive Cooperative Competitive Collaborative Adversarial Win-Win Win-Lose Non Zero Sum Zero Sum Interests Positions
  6. 6. Back to Common Sense I refute it thus.
  7. 7. The Invisible Hand Economic agents seek to maximize their utility
  8. 8. One Size Fits All
  9. 9. Ryanair $28 million
  10. 10. Emirates $36 million $23 million
  11. 11. Academic Research <ul><li>The particulars of a proposed deal define the value of &quot;yes.&quot; But how is the value of &quot;no&quot; determined? It depends on how well your interests are served by choosing your best &quot;no-deal&quot; option - the most promising course of action you would take if you decided to say no to the proposed deal. </li></ul><ul><li>David A. Lax and James Sebenius </li></ul><ul><li>3-D Negotiation: Powerful Tools to Change the Game in Your Most Important Deals (2006). </li></ul>
  12. 12. Gobbledygook <ul><li>“ parasitic integration” </li></ul><ul><li>“ negotiauction” </li></ul><ul><li> “ motivated illusion” </li></ul><ul><li>“ hidden constraint” </li></ul><ul><li>“ deal-design barrier” </li></ul>
  13. 13. Negotiation Training <ul><li>Provide a method that is easy to remember and use </li></ul><ul><li> Plan and conduct a negotiation </li></ul><ul><li> Master strategy and tactics </li></ul><ul><li> Improve bottom line </li></ul><ul><li>The outcome will depend on the balance of power </li></ul>
  14. 14. Harvard Negotiation Project

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