Game Plan Course Overview Introduction to the University of Michigan The Four-Stage Negotiation Process: 1.0 Prepare: Plan Your Negotiation Strategy 2.0 Negotiate: Use Key Tactics for Success 3.0 Close: Create a Contract 4.0 Perform and Evaluate: Finish the End Game Apply Your Negotiation Skills: “The House on Elm Street” Negotiation

1.0 Prepare: Plan Your Negotiation Strategy 1.1 Preliminary Question: Should I negotiate?

1.2 Is this a position-based or interest-based negotiation?

1.3 Am I trying to resolve a dispute or make a deal? 1.4 How should I analyze a negotiation?

1.5 Is this a cross-cultural negotiation?

1.6 How should I handle ethical issues?

1.7 Should I use an agent to negotiate for me?

Negotiate?

YES

Should I Negotiate?

NO

Out-of-Class Negotiation A large percentage of the class predicted that

most students would not be successful.

Results: 69% successful

Range: 6% to 100% discount

Average: 40% discount

Total Savings = $1580

Negotiation Strategies and Tactics •  BATNA •  Stretch goals •  Relationship building •  Unconventional: ü  Poverty ü  Stretching the truth ü  Timing ü  Sympathy

Feelings About the Negotiation Didn’t Enjoy: Uncomfortable Embarrassed Terrified Hesitant Guilty Weird Strange Dreadful

Enjoyed: Pleased Delighted Thrilled Happy Good Fun Enjoyable Excited

•  Negotiation professor buying a big-screen TV •  Lots of research on different models and

dealer’s costs •  Visited several dealers •  Combined price of TV with installation,

satellite dish, etc. •  Obtained price concession by mentioning

competitor’s offer •  Saved $120. A successful negotiation? Bazerman, Smart Money Decisions

•  College offers a job to professor •  She replies by email: “Granting some of the following

provisions would make my decision easier…. Let me know what you think.”

•  Examples of the provisions: a higher salary, “no more than three new class preparations per year for the first three years”

•  College search committee replied: We have “decided to withdraw (the) offer of employment to you.”

Flaherty, “Negotiated Out of a Job,” Inside Higher Ed

Conclusion: Should I Negotiate?

In making a decision about whether to negotiate, consider your feelings about negotiating as well as the potential risks and rewards.