ESG Negotiation Strategy Webinar – 8 Negotiation Lessons from Sun Tzu’s The Art of War

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 4^th 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.

Reference:

Asia Pacific Institute for Strategy Limited (亞太策略研究所有限公司) – www.apifs.org

ESG facebook - https://www.facebook.com/groups/esg08

Previous talks summary:

https://qualityalchemist.blogspot.com/search/label/Executive%20Study%20Group

Previous negotiation related seminar:

20160830: ESG Seminar – How to Control the Bargaining Table - https://qualityalchemist.blogspot.com/2016/08/esg-seminar-how-to-control-bargaining.html

20130409: 碼頭工潮的談判策略分析 (article employed Mark Lee’s strategy) - https://qualityalchemist.blogspot.com/2013/04/blog-post.html

20130323: ESG Negotiation Strategy Seminar - How to Structure a Negotiation towards Your Advantage - https://qualityalchemist.blogspot.com/2013/03/esg-negotiation-strategy-seminar-how-to.html

20130131: ESG Negotiation Strategy Seminar - How to Get What You Want by Effective Negotiation - https://qualityalchemist.blogspot.com/2013/01/esg-negotiation-strategy-seminar-how-to.html