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Negotiation #4: Constituencies and Culture
What do I remember from last week?
Competitive negotiation sucks, I can draw appalling parallels to events in my life and I get testy in teams where the roles are poorly defined thus dis-improving the dynamic even more ;p
Negotiating on behalf of others
Harder! More people to negotiate with,them, your team, them with their backers - lots more expectation management to take on. However! Easier to negotiate for others than for self. Lots of communication required - must remain connected to own party, must maintain their trust, must communicate to other party that you are 'solid' and yet open to offers.
Break for coffee: Short, passionate conversation with some Disney lovers about cultural appropriation. I have ruined someone's childhood and destroyed their innocence.
Guest lecturer! Did stealth notes to self on assignment as dude introduced himself...
Position based negotiation versus interest based negotiation.
Valuable tool in a negotiation is to keep a 'key issues' sheet so you can track their progress (sounds like the issues/risks register the project keeps). Working in a big team has a whole bunch of issues about who speaks and when. Need to have a mechanism for communicating within the group. Very important to be able to trust within the team.
If you're having a confidence crisis, ask someone, get help. Outside perspective can be awesome.
Exercise! Native Title and Iron Ore joint venture negotiation.
Interests! Seek first to understand.
Native Title: (deeply emotional connection to land and need to be compensated) community, cash flow, trust, living standards, impact on other agreements, surety/confidence, economic development of community, our obligations, jobs priority - arrangement, recognition, compensation for use of land, environmental impact of mining
Venturers: (monetising investment) cash flow, profit, need letter of credit, reputation, maintaining operations, long term relationships, investors, want to share the risk
Options (crowd sourced)
• Royalty per tonne extracted instead of sold
• Insurance policy (cost)
• Convert royalty to share (part conversion)
• Lease payments (unhook from shipments)
• Some payment on receipt of shipment, balance on receipt of payment
• Holding account for surety (reserve amount - could put in a certain amount per shipment)
• 60 days to pay to alleviate cash flow issues then (50% payment) then (50% on 90 days)
• Bonus for early payment
• Penalties for late payment (interest charged)
Looking at the boundaries of the issue - payment within 30 days of ship and receive. If not shipped, then not paid. Native Title group have financial needs. Will the Chinese economy continue to require iron ore? If we assume yes, then issue is of deferred payments (to Venturers) and option is around handling the deferred payment (to Native Title).
Lunch which I used to pick up my money from the secondhand bookstore. Yay! Between work putting in for textbooks and being able to sell them (for a fraction of what they were worth) I am not breaking even but it hurts less.
Team presentations:
NB: Transfer to overhead projector laptop - handed in on my flash drive with my usual file structure which the entire class now have seen. Feeling ever so slightly exposed. Did overhead one comment on my organisation. Heh.
Shiny, shiny handout. Bear in mind there's not a lot of data sitting behind this - has a consultancy but not vast amounts of research.
Exercise! Short story read out then we had to give True/False/No info answers
No info Y, True Y, No info Y, True N, False N, No info Y, True N (4 right out of 7)
Designed to demonstrate that we do listen but we make a lot of assumptions.
Managing the process of interaction
We are blessed with 2 ears, 2 eyes and 1 mouth - is there something we can learn from this?
We speak at about 125 words per minute, we listen and process at about 500.
Give reasons before you say no, people often only hear the 'no'.
Exercise! The Book Deal Negotiation
Fun. Negotiated a book publishing deal with someone while simultaneously coding our conversation on a checklist.
Ended with Group Project Assignment - discussion for next week.
Competitive negotiation sucks, I can draw appalling parallels to events in my life and I get testy in teams where the roles are poorly defined thus dis-improving the dynamic even more ;p
Negotiating on behalf of others
Harder! More people to negotiate with,them, your team, them with their backers - lots more expectation management to take on. However! Easier to negotiate for others than for self. Lots of communication required - must remain connected to own party, must maintain their trust, must communicate to other party that you are 'solid' and yet open to offers.
Break for coffee: Short, passionate conversation with some Disney lovers about cultural appropriation. I have ruined someone's childhood and destroyed their innocence.
Guest lecturer! Did stealth notes to self on assignment as dude introduced himself...
Position based negotiation versus interest based negotiation.
Valuable tool in a negotiation is to keep a 'key issues' sheet so you can track their progress (sounds like the issues/risks register the project keeps). Working in a big team has a whole bunch of issues about who speaks and when. Need to have a mechanism for communicating within the group. Very important to be able to trust within the team.
If you're having a confidence crisis, ask someone, get help. Outside perspective can be awesome.
Exercise! Native Title and Iron Ore joint venture negotiation.
Interests! Seek first to understand.
Native Title: (deeply emotional connection to land and need to be compensated) community, cash flow, trust, living standards, impact on other agreements, surety/confidence, economic development of community, our obligations, jobs priority - arrangement, recognition, compensation for use of land, environmental impact of mining
Venturers: (monetising investment) cash flow, profit, need letter of credit, reputation, maintaining operations, long term relationships, investors, want to share the risk
Options (crowd sourced)
• Royalty per tonne extracted instead of sold
• Insurance policy (cost)
• Convert royalty to share (part conversion)
• Lease payments (unhook from shipments)
• Some payment on receipt of shipment, balance on receipt of payment
• Holding account for surety (reserve amount - could put in a certain amount per shipment)
• 60 days to pay to alleviate cash flow issues then (50% payment) then (50% on 90 days)
• Bonus for early payment
• Penalties for late payment (interest charged)
Looking at the boundaries of the issue - payment within 30 days of ship and receive. If not shipped, then not paid. Native Title group have financial needs. Will the Chinese economy continue to require iron ore? If we assume yes, then issue is of deferred payments (to Venturers) and option is around handling the deferred payment (to Native Title).
Lunch which I used to pick up my money from the secondhand bookstore. Yay! Between work putting in for textbooks and being able to sell them (for a fraction of what they were worth) I am not breaking even but it hurts less.
Team presentations:
NB: Transfer to overhead projector laptop - handed in on my flash drive with my usual file structure which the entire class now have seen. Feeling ever so slightly exposed. Did overhead one comment on my organisation. Heh.
- Japan: high context communicators, relationship and detail oriented and consensus driven. Ray commented that the Japanese are very careful about how they do things and that his relaxed view is good for creating relationships but not so much for being seen as 'serious' at the negotiating table.
- India: polychronic time, hierarchical structure with high power distance, patriarchal organisation culture, saving face and reputation of great importance, inability to say 'no' directly. Contractual obligations do not have the same sanctity as in Western cultures. Conflict management is emotional.
- Saudi Arabia: loyal - existing relationships of high value, collective orientation, patient, bargaining is part of the 'fun' and to be expected, maintaining 'face' and stature very important. Not good if you are a woman.
- South America: demonstrated via a skit - funny! Slow pace of negotiation, polychronic, relationship oriented, hierarchical, looking for 'win/win' and joint problem solving. If female, establish seniority early.
- Pakistan: high context communicators, masculine society, strong situational emphasis, low level of time sensitivity (rubber time), strong religious influences.
- Malaysia: polychronic, negotiate in bundles, bribery and corruption is common and expected ('gifts'), low individualism, will not ask direct questions or propose solutions, final offers made more than once, long-term commitment, relationship building emphasis, hierarchical - expect top management to be involved. Contract will be regarded as stepping stone, expect further negotiation based on relationships.
Shiny, shiny handout. Bear in mind there's not a lot of data sitting behind this - has a consultancy but not vast amounts of research.
Exercise! Short story read out then we had to give True/False/No info answers
No info Y, True Y, No info Y, True N, False N, No info Y, True N (4 right out of 7)
Designed to demonstrate that we do listen but we make a lot of assumptions.
Managing the process of interaction
We are blessed with 2 ears, 2 eyes and 1 mouth - is there something we can learn from this?
We speak at about 125 words per minute, we listen and process at about 500.
Give reasons before you say no, people often only hear the 'no'.
Exercise! The Book Deal Negotiation
Fun. Negotiated a book publishing deal with someone while simultaneously coding our conversation on a checklist.
Ended with Group Project Assignment - discussion for next week.