2013年3月23日星期六

ESG Negotiation Strategy Seminar - How to Structure a Negotiation towards Your Advantage

The March topic of Executive Study Group (ESG) named “Negotiation Strategy – How to Structure a Negotiation towards Your Advantage” which was held by the Executive Study Group (ESG), Chinese University of Hong Kong (CUHK) and the Hong Kong Science and Technology Parks Corp (HKSTPC) on 22 March 2013. I would like to summarize the seminar for sharing below.

Dr. Mark Lee introduced the seminar included three strategies (Power, Process and Appreciative), Further Study and Group Discussion.


In the beginning, Dr. Mark Lee explained "What is Shadow Negotiation?". He said Shadow Negotiation was the complex and subtle game people played before they got to the table and continued to play after they arrived. It was not to determine the "what" of the discussion but the "how". He quoted Prof. Deborah M. Kolb (Executive Director of Negotiation Program at Harvard Law School) statement "Some negotiations stall or, worse, never get off the ground. Why? ... The answers lie in a dynamic we have come to call the shadow negotiation".


Then Dr. Lee introduced the Three Strategic Lighthouses's Directions.
Power Strategy - To bring him/her to the table
Process Strategy - To reshape the negotiation's structure
Appreciative Strategy - To alter the tone or atmosphere

The next slide showed the actions of three strategic Lighthouses.


The Power Strategy:
Dr. Lee quoted Prof. Kolb that "Creating value and making it visible are key power moves in the shadow negotiation. A bargainer can't leave it up to the other party to puzzle throught the possibilities."


I) Offer Explicit Incentives
- Foster mutual needs
Dr. Lee told a story about Teddy Roosevelt's Presidential Campaign which stated in January seminar.

II) Put a price on inaction
The story Instagram was told that why Facebook used about US$ 1 billion for acquisition. It needed to consider "What happens if Google Buys Instagram".

III) Build Alliance
- Crucial in establishing Credibility
Dr. Lee quoted the case "Anti-Iraq Coalition" that US skipped Israel to have kept numerous Arab states from joining alliance.


The Process Strategy:
Dr. Lee discussed how to influence others' receptivity to opinions such as pre-negotiation groundwork, sequence in which ideas and people were heard.

I) Seed ideas early
A bargainer can use process moves to build receptivity. Once the seeds of an idea have been planted, they will influence how others view a situation regardless of how firmly attached they are to their own beliefs and ideas.
Dr. Lee quoted Mr. Alfred Chan (Managing Director, The Hong Kong and China Gas Co. Ltd.) that almost 50% of his time and effort was spent gaining an understanding of the market, stakeholders and other parties.


II) Re-sequence the process
Dr. Lee quoted Prof. James K. Sebenius Harvard Law School that "When the probability or value of success on one front is gratly enhance by success elsewhere, focus elsewhere first." Then he used WebTV as case study to explain how to get investors support after re-sequence (e.g. To gain Sony and Philips support first and then focus on venture capital firms/angel investors).

III) Build consensus
- Momentum creation by bringing others on board
- The growing support isolates the blockers

The Appreciative Strategy:
Dr. Lee quoted Prof. Kolb again that "Appreciative moves allow opportunities for i) additional information to surface, ii) afford the other side more time to rethink ideas and iii) adjust initial predilections."

I) Help others save face
- Image is a concern for everyone.
"Most deals are 50% emotion and 50% economics (price)." said by Mr. Felix Rohatyn (Former Managing Partner, Lazard Freres Investment Bank).


II) Keep the dialogue going
- Right Time, No Pushing and Foster Opportunities to Think
Johnson Electric Case about choice SAP or Oracle for ERP was mentioned. They used switching Role Play to debate.
III) Solicit new perspectives
- Different Opinions are important

Prof. Kolb said "By creating opportunities to discover something new and unexpected, appreciative moves can break a stalemate. As understanding deepens on both sides, reaching a mutual resolution becomes increasingly possible."

Formal Negotiation (Stated in ESG Negotiation Strategy Seminar - How to Get What You Want by Effective Negotiation at http://qualityalchemist.blogspot.hk/2013/01/esg-negotiation-strategy-seminar-how-to.html ) vs Shadow Negotiation


Before the group discussion, Dr. Lee used NLP method to give us an exercise to choose Two of the most difficult actions and One of the easiest action.


Reference:
The Centre for Logistics Technologies and Supply Chain Optimization, CUHK - http://www.logitsco.cuhk.edu.hk/
HKSTP - www.hkstp.org

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