The Complete College Degree Baccalaure System (Baccomany)
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1 THE ART AND SCIENCE OF NEGOTIATION Julie Payne-Kirchmeier, PhD, CASP AVP for Student Auxiliary Services Northwestern University NACAS West June 2, 2014
2 My Background
3 NEGOTIATION Scary, Win/Lose, Fight, Tense, Uncomfortable, Political, Conflict, Manipulative, Frustrating
4
5 NEGOTIATION A process by which two parties communicate with each other in order to reach an outcome on which they mutually agree.
6 MY LENS Respect for Negotiating Partners Ethical Approach Mutually-Beneficial Outcomes
7 WE NEGOTIATE EVERY DAY! We negotiate work, fun, time, with family and friends.
8 DISCOVER YOUR STYLE
9 SELF-ASSESSMENT Review the definition of negotiation Read through the instructions and take the assessment Score the assessment with the instructions provided (yes, there is math) Stop on page 5 (filling in the last chart with total scores)
10 Who Scored Moderate to High or High In: Competing Avoiding Collaborating Accommodating Compromising
11
12 TWO APPROACHES Distributive Negotiation as a win-lose exercise Gains of one come at expense of the other Sole focus: maximize your own outcomes Assertiveness Integrative Negotiation as mutual problem-solving exercise Relies on open communication, trust, mutual respect Sole focus: fulfilling mutual interest of both parties Cooperativeness
13 HOW TO IMPROVE? Observation Informational Interviews Mentor Workshop Institutes Class Practice Practice Oh yeah, and did I say practice?
14 PREPARING FOR NEGOTIATION
15 FOUR THINGS Pre- Work Prep Work Plan Practice
16 PRE-WORK
17 PRE-WORK Know the Business Partners As people, not products Campus Needs Campus Policies and Practices Your Style
18 PREP WORK Luck is preparation meeting opportunity. - Oprah Winfrey
19
20 HOMEWORK Your Needs Vendor Needs Data! Data! Data! Key Points Negotiables Non-negotiables Alternatives
21 PLAN Failing to plan, is planning to fail. Benjamin Franklin
22 Review Approach Revisit Problems Environment Appearance Body Language/Know your Tells
23 ENVIRONMENT
24 APPEARANCE
25 BODY LANGUAGE/TELLS Mirror Actions Nod Your Head Controlled Hands Plant Your Feet Relax Your Body Smile! Open Posture Hide Nerves Poker Face Show Patience Eye Contact Connected Positive Affirmation Indication of Nerves Grounded Comfortable Positive Affirmation Open to Ideas Confident In Control Calm Respectful; Present
26 PRACTICE
27 NEGOTIATION TACTICS (from Karrass Effective Negotiation) The Bogey ( I love the proposal, but only have $XX dollars ) The Crunch ( You ve got to do better than that! ) The Nibble ( What tie are you giving me with this suit? ) Garbage on the Lawn (Listing all past service issues) The Flinch (Showing shock on price and waiting for response) Tying a String (Added concession for agreement)
28 PRACTICE! Divide into groups of 3 or 4 Roles: Person 1 the Vendor Person 2 the Institution/College Person 3 (and 4) - Observers
29 SCENARIO You need an adjustment to an existing bookstore contract. There has been a change, and the bookstore can no longer gain access to key course packs one of your largest majors requires. However, the current bookstore contract grants them exclusivity over all course materials, including course packs.
30 PERSON 1
31 PERSON 1 You are the bookstore. You are in year 8 of a 10 year contract, and have enjoyed a 20-plus year history with the campus. You provide a guarantee annually of $600,000 to the university as part of the contract. Loss of this business may cost you $50,000 in direct sales, and $10,000 in ancillary sales (notebooks, impulse buys, spirit wear, etc.). You do not have a current solution, but are interested in solving the issue.
32 PERSON 2
33 PERSON 2 You are the institution. You are in year 8 of a 10 year contract, and have a 20 plus year relationship with the bookstore company. You know loss of course pack business will hurt the bottom line to the bookstore, but are not sure how much. Contract gives bookstore exclusivity but the section on course packs is vaguely written and subject to interpretation. The school has to have the course packs for the majors it s the only resource available. You do not have a current solution, but are interested in solving the issue.
34 SCENARIO The current bookstore business partner can no longer gain access to key course packs one of your largest majors requires. However, the current bookstore contract grants them exclusivity over all course materials, including course packs. Both parties need a change to the existing contract in order to move forward.
35 FEEDBACK AND DEBRIEF
36 OTHER FACTORS
37 OTHER FACTORS Ethics Cultural Impact Gender External Factors Multi-Stakeholder Dialogue Time Deadlock Strategies Others?
38 Four P s Pre-Work Prep-Work Plan Practice Negotiate Sign Contract Debrief ONE MORE TIME
39 QUESTIONS AND DISCUSSION
40 THANK YOU! Phone:
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