The Executive Study Group (ESG) webinar named “Negotiation Strategy – 8 Negotiation
Lessons from Sun Tzu’s The Art of War” was held by Asia Pacific Institute for
Strategy Limited (APIFS) on 4th May 2023. Dr. Mark Lee firstly introduced the history
and goal of Asia Pacific Institute for Strategy Limited (APIFS). Then he
introduced today’s content including ‘The Art of War’, ‘Negotiation is About
Human Interaction’ and ‘8 Strategies to Control the Bargaining Table
(Battlefield)’.
Firstly, Dr. Mark Lee
briefed The Art of War which is an ancient Chinese military treatise by Sun Tzu.
The book is composed of 13 chapters including:
Ch.1 – Plans (始計篇), Ch.2 – War (作戰篇), Ch.3 – Stratagem (謀攻篇), Ch.4 – Dispositions (軍形篇), Ch.5 – Energy (兵勢篇), Ch.6 – Weak Points (虛實篇), Ch.7 – Maneuvering (軍爭篇),
Ch.8 – Variation (九變篇), Ch.9 – Marching (行軍篇), Ch.10 – Terrain (地形篇), Ch.11 – Situations (九地篇), Ch.12 – Fire (火攻篇) and Ch.13 – Spies (用間篇).
The core idea of Sun
Tzu is “Win First and then Fight”. The first chapter “Plans” is described
how to calculate your chances of winning.
Then Dr. Mark Lee performed poll 1 on assessment and planning before
negotiation. 44% participants agree and
highly agree that their colleagues have spent sufficient times and efforts on
assessment and planning but 43% are neutral and 13% disagree.
And then Dr. Lee mentioned that negotiation is about human interaction.
He also quoted Sun Tze that “Those skilled in war subdue the enemy’s army
without battle.”
After that he used NFL strike in 2011 as example to describe the mission
impossible on internal conflict because of the new collective bargaining
agreement (CBA) between players and owners. Dr. Lee explained two barriers and
they are (A) The Audience Problem and (B) Zero-sum Problem. The poll 2
performed to ask which problem is more difficult. It is near half-half that A –
53% and B – 47%.
In NFL case, owner offered to get $2 billion off-the-top credit and then
player would receive ~58% of remaining. But players offered no off-the-top
credit and 50-50 split of all revenues.
Finally, the three revenue buckets to divide all revenue as solution to
fit both owner and players needs.
One of key success factors is each side can claim Victory!
Finally, Dr. Mark Lee introduced 8 strategies to control the bargaining
table. He then quoted Sun Tsz strategy again that “Generally, he who occupies
the field of battle first and awaits his enemy is at ease; he who comes later
to the scene and rushes into the fight is weary.” These 8 strategies can use in
any sequence depends on the need.
1) Control the Frame on How Others Perceive the
Proposal
The “frame” of the
negotiation is psychological lens including for business, for politics, etc.
Dr. Lee said frame worked as “solving the shared problem together”. He quoted
Sun Tzu again that “Know the enemy and know yourself.” It is important to
understand how your counterparts perceive your offers.
Then Dr. Lee performed polling 3 and most of participants (45%) think
that it is difficult to control the frame of the negotiation.
2) Help the Other Side to Sell Proposal to Their
Audience
The audience can be negotiation
partners, a boss, colleagues, or even friends and family that causes challenge
so that we need to think of their audiences as their problem.
3) Bring Multiple Issues to the Table Simultaneously
Dr. Lee quoted Sun Tzu
statement that in the midst of chaos, there is also opportunity. He said to avoid
one-issue negotiation that people hard to feel winning.
4) Diffuse Spotlight of the Prominent Issue
Eventhough multiple
issues, one issues of them sometimes becomes the most prominent that audient
concern of who wins and who loses. Thus, it needs to split the one issue into
two or more for avoiding a win/lose outcome.
5) Make It Safe for the Other Side to Ask for Help
Trust can reduce
risk. So, people build trust by reciprocating when others have shared sensitive
information or made a concession.
6) Explore and Comprehend Unnoticed Interests
It is important to
understand why they want it during negotiation because some hidden interests
that are reconcilable. This is referred to as shifting from positions (what
people want) to interests (why they want it). Sun Tzu said “Probe him and learn
where his strength is abundant and where deficient.” was quoted.
7) Firm on Substance, Flexible on Structure
Effective negotiators
are assertive where needed and flexible when possible. Assertiveness but not
stubborn. Let the other side easier to fulfill your needs.
8) Use Lubricate Oil to Keep Wheels Turning
Sometimes the timing
is not appropriated, so the offers to keep the ball rolling is important. Lastly,
Dr. Mark Lee redefined the negotiation that is the process by which two or more
parties who perceive a difference in interests or perspective attempt to reach
agreement.
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