Bargaining-for-Advantage-SUMMARY

WISDOMINANUTSHELLBARGAININGFORADVANTAGENegotiationStrategiesforReasonablePeopleByG.RichardShellPenguinBooks,June2000ISBN01402.81916286pagesBusinessSummaries.comisabusinessbooksummariesservice.Everyweek,itsendsouttosubscribersa9-to12-pagesummaryofabest-sellingbusinessbookchosenfromamongthehundredsofbooksprintedoutintheUnitedStates.Formoreinformation,pleasegoto:solidplanningandpreparationbeforeyoustart,carefullisteningsoyoucanfindoutwhattheothersidereallywants,andattendingtothe“signals”theotherpartysendsthroughhisorherconductoncebargaininggetsunderway.PARTI:THESIXFOUNDATIONSOFEFFECTIVENEGOTIATIONCHAPTERONE:THEFIRSTFOUNDATION:YOURBARGAININGSTYLEAStoryTwomenenteredaconferenceroominanofficetowerhighaboveLexingtonAvenueinNewYorkCity.OnonesideofthetablesatPeterJovanovich,theChiefExecutiveofHarcourtBraceJovanovich(HBJ),acompanynowontheedgeoffinancialruin.Asthesonofoneofthefirm’sfounders,Jovanovichwasdeeplycommittedtopreservingthefamily’slegacy.AcrossthetablesatDickSmith,theaggressiveleaderofGeneralCinema,alargeconglomerateprobingforacorporatefootholdinthepublishingbusiness.Bothsideshavecarefullypreparedtheir“scripts”fortheopeningofthenegotiation.SmithwastobeasuitorandhadplannedadetailedpresentationonGeneralCinema’sfinancialstrengthandreputation.Jovanovich’steam,wasalsoverypositiveaboutthedeal,andpreparedJovanovichfortheroleof“listener.”Hewouldbeinterestedbutnoncommital.Hewouldnottiphishandorshowhisurgency.Oncue,Smithbeganhisopeningspeech,butwithinsecondsJovanovichinterrupted.TheHBJadvisersstirred.Thiswasnotinthescript.JovanovichspokeandplacedasmallboxonthetablebetweenhimandSmith.“Myfatheralwaysgaveawatchlikethistohispartnersatthebeginningofanewbusinessrelationship,”hesaid.“ThisismeanttosignifymysincerebeliefthatGeneralCinemaistherightbuyerofHBJ.”Itwasariskyadmission,andbothmenknewit.Theanxietyintheroomeased.©2001-2003CopyrightBusinessSummaries.comBargainingForAdvantagePage3WhatisNegotiation?Anegotiationisaninteractivecommunicationprocessthatmaytakeplacewheneverwewantsomethingfromsomeoneelseoranotherpersonwantssomethingfromus.TheFiveBasicBargainingStylesBehindthebewilderingarrayofpersonalitydifferences,psychologistshaveisolatedfivebasicnegotiationpersonalitytypesbasedonthewaypeoplepreferhandlinginterpersonalconflict.Thefivetypesare,indescendingorderofaggressiveness:competitors,problemsolvers,“compromisers,”“accommodators,”andconflict“avoiders.”Nosystemofcategorizationisperfect,butthisoneisbetterthanaveragebecausethepotentialforinterpersonalconflictiswhatgivesnegotiationitscharacteristic“edge.”YourBargainingStylesAllnegotiationsbeginwithyou.Thefirstfoundationofeffectivenegotiationisyourpersonalbargainingstyle–thewayyoucommunicatewhenyoufaceasituationcontaininginterpersonalconflict.Yoursuccessasaneffectivenegotiatordependsoncandidlyassessingyourstrengthsandweaknessesasacommunicator.Somepeoplehaveawide“bandwidth”whenitcomestobargainingstyles.Theycanadapteasilytomanydifferenttypesofsituationand“opponents.”Othersaremorelimitedintheirrangeofeffectiveaction.Theymaybequitestronginsituationsrequiringcompetitiveinstinctsbutweakwhenitcomestorelationships.Ortheymaybestrongincooperativeskillsandweakifthesituationcallsforhardballtactics.Manynegotiationexpertstrytoteachpeopleasingle,all-purposestyle,whichisoftennothelpfulorrealistic.Yourjobistofindoutwhoyouareasanegotiatorandthenworktobemoreeffectivewiththeskillsyouhave–nottrytobecomesomeoneyouarenot.Whatpredispositionsdoyoubringtothebargainingtable?Areyouacooperativesortofperson,strivingtomeeteveryone’sgoalssopeopleleavethenegotiationtablefeelinggood?Orareyouamorecompetitivetypewhoislessconcernedwithhowtheotherpartyfeelsandmoreinterestedinhowwellyoudo?Regardlessofyouranswer,yourjobasanegotiatoristounderstandyourstylepreferences,seehowtheymatchupwiththesituation,planyourpaththroughthefourstepsthatnegotiationsfollow,andtryyourbesttobeeffectivebypreparing,forminghighexpectations,listeningtotheotherparty,andactingwithintegrityintheprocess.Information-basedbargainingproceedsfromtheassumptionthatyouwillgetbetterresultsforyourselfandachievemoreforotherswhodependonyouby©2001-2003CopyrightBusinessSummaries.comBargainingForAdvantagePage4tirelesslysearchingforkeyinformationaboutthepartiesandthesituation.Yoursuccessthenturnsonusingthisinformationskillfullyasbargaininggoesforward.YourBargainingStyle:AChecklist•Determineyourbasicstylepreferences•Acquireawillingnesstoprepare•Sethighexpectations•Havethepatiencetolisten•MakeacommitmenttopersonalintegrityCHAPTERTWO:THESECONDFOUNDATION:YOURGOALSANDEXPEC