Key Highlights Class # 1 (9/9/06)

Class journal....


The first day we started out in Negotiations class talking about a case study involving a non-profit company thinking about selling (Elm Tree) to a big real estate developer in Somerville. My immediate thought was that Elm Tree had no chance of coming away from the deal whole because they were up against savvy negotiators/business people. It was my takeaway from class that in every negotiation we should think about profit and the viewpoint of the other side but at the same time Maximize profit or minimize the other person’s profit

I was struck by our conversation pertaining to Integrative negotiations. The idea here is that we want the other person to feel as though they have won and more important, that you feel as though you have won. Doing well for yourself is always the name of the game in negotiations but it is also important to care about the relationship.

Integrative Negotiations
I hope to use this in most of our upcoming role plays. In reflecting upon my own personal preferences I much prefer integrative relationships but I also feel like I can be taken advantage of. What I like about it is that you can think outside of the box and be creative with what is considered valuable. I like the idea that one is not stuck with a certain pre-determined solution.

Distributive Negotiations
The idea of somebody losing out on a deal just does not sit well with me, Win/Lose: Want to do well for ourselves but we do not care about the other person. Person who makes the most profit. Person tends to be mostly closed. Withhold information. The benefit is that we won’t be taken advantage. Fail to identify creative solutions.

Lessons Learned:

World runs on Relationships. This seems true in many areas not just negotiations – work, social life, family

Key Lessons Learned: Cooperate or compete - working with people and keeping a positive attitude is critical

Pressure and reciprocity...huge concessions vs. small concessions.

Rule of Reciprocity – etiquette norms violated if one person offers a fair price and the other person high-balls.....huge psychological impact

After setting an anchor and going back and forth when the gaps between bids get smaller, it could mean that the other person is closer to their walkaway. If this is the case, tread lightly and take another coldhearted look at situation and decide on your walkaway. Am I better off compared to the alternative?