Chapter 4 Win-win Concept 双赢理念 Traditional concept 传统理念 Win-win concept 双赢理念 Case simulation: Hotel Selling 模拟谈判：酒店销售 Communication practice交际练习 Effective negotiating 成功谈判 3. Establishing Positions （VCD） TRADITIONAL CONCEPT 传统理念 In the early history of human being, negotiations, although as a peaceful approach to , could be extremely for negotiators, who would prepare to risk their lives for talking with antagonistic side because if the talk , the envoy would be beheaded. It is due to such vital of negotiations that both parties viewed negotiations either as overwhelming or disastrous defeat. Therefore negotiators would make every and sometimes even play and use conspiracy for securing their own party’s utmost . The traditional practice of_______ concept became prevailing against such background. Conventional practice of win-lose model takes the following steps: Determine each party’s own interests and stance; Defend one’s own interests and stance; Discuss the possibilities of making concession; Reach an agreement of compromising; or declare failure of negotiation. Negotiations guided by win-lose concept would protect and defend habitually each party’s interests by taking firm stance in negotiations, therefore often prove to be very difficult to make, which would inevitably lead negotiations into or failure. The two dimensional concept explains largely the failure of numerous negotiations. There are of course occasions in international society, business activities and daily life when one side is in a much more powerful position than the other side and the latter is into agreement. The sorts of negotiations are ______ negotiations at all but rather a of hegemony or playing the bully. WIN-WIN CONCEPT 双赢理念 In the second half of the 20th century, with the rapid development of economic globalization and integration, some scholars and social workers began advocating a brand new idea, which is win-win concept. Among those outstanding figures are American scholars Roger Fisher, William Ury, and British negotiator Bill Scott, to name a few. The core of their thinking is success and convergence of interests. By mutual success, they mean under the condition that one party tries to gain his______ interests or at least takes action not detrimental to one’s own interests, each party may find one way or another to more or less the counterpart’s interests as well. In the meantime, an American attorney, Gerand Nierenberg created his educational nonprofit Negotiation Institute in New York, where he promoted his negotiation philosophy of “Everybody ”. Because of his success and popularity of his philosophy, he was recognized by Forbes magazine as, “the Father of Negotiating Training”. Based on the concept, a win-win negotiation model has been developed. ________ have demonstrated its high effectiveness in dealing with disagreement and conflicts in negotiations, therefore it has become the most widely accepted negotiation principle. each party’s interests and needs; out the other party’s interests and demands; constructive options and solutions; success of negotiations; failure of negotiation or negotiations in impasse. A significant point that win-win model from win-lose model is that both parties will not only seek means to fulfill one’s own interests but also hope the______of the other party may be realized more or less. Negotiations guided by such concept are to be conducted in an atmosphere of mutual understanding and cooperation and will be concluded with mutually accepted agreement to the of both parties. However, not all people in all situations will be guided by win-win concept by virtue of deep rooted one dimensional concept of , therefore there is still a long way to go since it is a formidable task for people to establish a new . To summarize: no matter what kind of negotiation it is, we can say that negotiation is a enterprise; interests must be sought. Negotiation is a process, not a game; in a good negotiation, everybody_______ something. It’s important to realize that while the of the playing field may vary from venture to venture, the overriding concept remains the same: Success isn’t winning ; it’s winning . （handout） CASE SIMULATION 模拟谈判 Requirement for the Negotiation Organize a group of four students. Two are the seller, Stiff, and the other two are the buyer, Wilson. Read the background materials for seller and the buyer respectively. The two students discuss between themselves first and decide on the following points: Are you prepared to achieve double win result? If so, how should you do in the negotiation? Analyze the interests of both parties and find out your common interests. What will be your initial offer and what will be your reservation point? What options or alternatives will you consider if you can not reach an agreement with the other party? HOTEL SELLING 酒店销售 Background Emutral Hotel provided service particularly to younger people aged from 18 to 25, who needed kind help during their study. However the location of the hotel was not suitable for the purpose because it was in an industrial city close to transportation center. Therefore, the hotel was considering leaving the city and moving to a quiet community. Now the problem was that moving was basically impossible financially. Several months later, a man called Wilson came to the hotel and told the manager that his company, a building contractor, was willing to buy the hotel. The manager never thought of selling the hotel, anyway he would like to consider and asked for approval from the board if the price was reasonable. The board decide to send Stiff to talk with Wilson. Consider the following questions: Who is the winner or the loser? Have you found out the other side’s interests? Have you provided constructive options when you felt difficult to move on with the talking? Do you think your negotiation is the result of double win? COMMUNICATION SKILLS交际练习 1．The following checklist can be used by managers, owners, or anyone else wishing to consider a career in international negotiations. (Adopted from “Planning and conducting international commercial negotiations” by Jeffrey Edmund Curry) Self-selection questionnaire 1) Do I have the necessary time and attention to devote to these crucial negotiations? 2) Am I the most experienced member of the organization in terms of international business? 3) Do I understand the culture and commercial nuances of my counterparts? 4) Are my language skills suitable for the negotiation? 5) Have I ever worked with a translator before? 6) Have I negotiated major contracts before? 7) Am I physically well enough to engage in extended and stressful negotiations? 8) Do I have the organizational skills to lead a team that’s not entirely of my own choosing? 9) Do I have the technical expertise to run the negotiation? 10) Am I capable of working sixteen hours a day? 11) Am I at ease in unusual social situations? Am I capable of living in physically demanding circumstances? Do I find other cultures easy to accept? Am I considered a patient person by my peers and subordinates? Am I considered an extrovert? Am I capable of accepting full responsibility for the outcome of these negotiations? Are my organizational skills optimal for leading the negotiation team? Have I traveled overseas for extended periods on business before? Will my absence from home cause me only slight emotional distress? Will my absence from home cause my family only slight emotional distress? If you found yourself answering “no” to any of these twenty questions, you may wish to re-evaluate your potential role as chief negotiator. 2．Here are some possible qualities of good business negotiators. Rank your own list in order of importance to you. Listening skills Honesty Persistence Flexibility Eloquence Negotiating experiences Ability to interpret body language Being well prepared Knowledge of subject matters Sense of humor Ability to solve the problems Ability to check one’s own feelings EFFECTIVE NEGOTIATING 成功谈判 3. Establishing Positions The people Andrew Carter is Export Sales Manager for Okus IT. He has prepared a presentation of the key aspects of their offer. Karen Black is a Project Manager at Okus IT. She is expecting Andrew to present their offer. Francoise Quantin is the current IT Manger at Levien. She is expecting Andrew to identify key aspects of their offer. Sean Morrissey is from Levien’s Chicago office. He would like to hear what they are offering in terms of staffing levels. The negotiation Andrew is going to present the Okus position and get feedback from Levien. He knows that there are two issues which will dominate the negotiations: 1. Staffing levels Levien would like Okus to take on al its existing IT team. Okus need toresist this pressure. 2. Support levels Okus have proposed a choice of support levels. Level A: The price includes full support and a certain amount of project work, to be specified in advance. Level B: The price includes full support, but no project work. Project work will be invoiced separately, as and when it occurs. （handout） Establishing positions Script 1 Andrew Carter presents the Okus proposal without reference to Levien’s needs. A =Andrew K =Karen F =Fran?oise S =Sean A: And as you can see, we also have a broad range of clients in various industries. For example, we recently took over IT management at Central… F: We know all this, Andrew. we’re interested in. A: Of course, yes. Let me… Here we are. We’ve by department… S: Sorry. K: Andrew, sorry to interrupt, but perhaps Francoise and Sean would like to hear about control systems, pricing, and staffing levels. S: Staffing would be good. A: Yes. Sorry. Yes, I’m sure __________________________ on that. We’ve looked at your-here we are-at your current levels of IT operation and support… S: That’s great, Andrew, but what I really want to know is – are you going to hire our staff or not? K: Andrew, perhaps I should answer that. As you know, staffing levels depend on_____________________ you decide to . depends on the degree of service and support you require. （handout） Script 2 Establishing positions Andrew Carter presents the Okus proposal and gives the Levien team the information they need. A =Andrew K =Karen F =Fran?oise S =Sean A: So moving on, I’d like to focus quickly on the three critical areas, and then hear your response. Now, . As this is really the make or break factor in an outsourcing contract, we’ve really got to match, and then , your own management systems. So, what we propose to do is put on site and one support engineer as well. Any questions so far? S: And who’d deal with special projects or problems? A: would be to use our own UK based engineers . F: I’m not sure I understand how our project management system for urgent work. A: We’ve used a similar approach on other contracts: the IT manager here would have day-to-day control, but when he or she needs help, that _________________________________________ . Do you have any questions on this? S: But won’t this be a first for you—servicing a contract overseas? K: Yes, that’s right, but we do have similar clients in Edinburgh, for example, and time and , there’s not a lot of difference between Belgium and Scotland. So we don’t anticipate any problems . A: Perhaps you’d like to talk to our clients in Edinburgh? F: No. we have already followed up your references please go on. A: Fine. Can I go on and talk a little bit about pricing?