The Negotiation Fieldbook, Second Edition: Simple Strategies to Help You Negotiate Everything - Softcover

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9780071743471: The Negotiation Fieldbook, Second Edition: Simple Strategies to Help You Negotiate Everything

Inhaltsangabe

The classic guide to collaborative negotiation--updated for today's ultracompetitive environment

"We negotiate every day--in school, in business, in politics, in everything we do. Every time I want to influence someone or deal with someone who wants to influence me, I am negotiating. For that world, this is perhaps the most useful book you will ever find." -- Roger Fisher, bestselling coauthor of Getting to Yes

The definitive practical guide to the art of negotiating, this revised and expanded edition of The Negotiation Fieldbook details topics other books don't even touch upon. It helps you steer a negotiation first to collaboration and then to agreement--a much more effective tactic than "dominating" the process.

Filled with quizzes to reinforce what you’ve learned, The Negotiation Fieldbook is a complete package with everything you need to enter negotiations with skill and confidence--and create a win-win situation for all.

NEW TO THIS EDITION:

  • Analysis of different negotiation styles and situations
  • The fundamentals of ethical negotiating
  • Important breakthroughs in negotiation psychology
  • Conducting negotiations on behalf of others

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Über die Autorin bzw. den Autor

Grande Lum is clinical professor of law and director of the Center for Negotiation and Dispute Resolution at the University of California Hastings Collegeof the Law. Lum is serving as director of the Small Business Administration HUBZone program for the Obama administration. He is also the founder and former managingdirector of Accordence, a negotiation consulting and training firm. Lum lives in the San Francisco Bay area.

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THE NEGOTIATION FIELDBOOK

Simple Strategies to Help You Negotiate Everything

By GRANDE LUM

The McGraw-Hill Companies, Inc.

Copyright © 2011 The McGraw-Hill Companies, Inc.
All rights reserved.
ISBN: 978-0-07-174347-1

Contents

Foreword
Preface
Introduction
Using The Negotiation Fieldbook
PART ONE: THE ICON NEGOTIATION MODEL
Chapter 1 Interests: Get Underneath Negotiating Positions
Chapter 2 Criteria: Use Objective Standards
Chapter 3 Options: Brainstorm Creatively
Chapter 4 No-Agreement Alternatives: Know Your BATNA
PART TWO: THE 4D APPROACH
Chapter 5 Step 1. Design: Frame the Negotiation
Chapter 6 Steps 2 and 3. Dig for Interests and Develop Options
Chapter 7 Step 4. Decide: Close the Negotiation
PART THREE: BEFORE YOU GET TO THE TABLE
Chapter 8 Strategize Fully
Chapter 9 Dealing with Difficult Tactics
Chapter 10 Treat All Negotiations as Cross-Cultural
Chapter 11 Act with a Clear Conscience
PART FOUR: APPENDIX
Prepare! Prepare! Prepare!
ICON and 4D Summary
4D Key Points Summary
Worksheets
Glossary
References
About Accordence
About the Author
Index

Excerpt

CHAPTER 1

Interests: Get Underneath Negotiating Positions


Interests underlie positions. They are subjective—the needs,goals, drivers, concerns, and fears of each party.


THE CHALLENGE

In the late 1980s and early 1990s, the health-care system of a major U.S.metropolitan area was widely acclaimed for being able to provide effectivecoverage and care for local residents at a low cost. Cooperation among thearea's hospital systems, insurance providers, governments, and businessesreceived nationwide praise. The situation worsened over the next several years,however, resulting from changes in the health-care environment, governmentderegulation, and leadership turnover at the hospital systems. By the late1990s, one of the area's largest hospitals was forced to shut its doors,physicians shuttled from one system to another lured by politicking andbenefits, and the business community watched as health-care costs increasedrelentlessly.

In 2001, the local business community sought to change this dynamic and reducehealth-care costs. A major health insurer forced the matter by issuing an RFP(request for proposals) for medical laboratory testing, with the goal oflowering its reimbursement costs for these services. After local hospitalsystems were unable to develop a collaborative agreement, two submitted a jointbid, and the third joined with a fourth hospital to submit a competing bid. Acycle of exclusion and collusion developed, forcing a race to the bottom inwhich even the winning bidders would regret their bids. Because of a lack oftrust, the hospitals found it easier to disrupt each other's bidding than createa community-based, collaborative solution.


THE SOLUTION

Encouraged by local business leaders to return to the bargaining table, theparties, through a mediator, began probing each other's interests in designing acommunity lab. Pathologists, lab operations managers, financial officers, andsenior management from hospital systems shared their underlying interests.Interests that emerged as critical were reducing duplication, creating economiesof scale, and maintaining or improving the quality of care.

The group developed a solution calling for the creation of a new entity to beshared by all hospital groups: a "virtual" lab that would channel testingaccording to agreed-upon guidelines and that had a single reimbursement rate(between this new entity and the insurance companies). As negotiationsprogressed, however, the parties still lacked a common ground on the businessand operational vision of their new venture. In particular, the parties found itdifficult to discuss reimbursement without feeling threatened. Outsidecommercial lab administrators serving similar markets helped unify theirobjectives. By the end of the negotiation, the hospitals had designed areimbursement plan to be negotiated with insurers. The reimbursement rate issuewas the critical final hurdle to reaching an agreement.

Two days before the deadline, all parties signed the framework agreement tocreate the new community medical testing lab and agreed with insurers on areimbursement rate that saved the community millions of dollars annually. Theproposed new lab also incorporated a new information system to provideunprecedented secure access to patient lab results for all area physicians,especially for patients whose records were associated with more than onehospital.

Interests are the nuts and bolts of agreements. They are the concerns, drivers,incentives, underlying needs, and motivators of the parties. They are thereasons people are involved in a negotiation in the first place. Interests havebeen the focus of some of the best research and writing on negotiation,including the work of Roger Fisher, William Ury, David Lax, and James Sebenius.

Interests are not the same as positions. For negotiation purposes, I definepositions as the demands of the parties. Another way of explaining thedifference between interests and positions is to say that positions are what youwant, while interests are what you need.

People sometimes make the simple mistake of negotiating on the basis of statedor implied demands. Understanding that important interests underlie demands is apowerful insight into negotiation because you free yourself from having torespond to and counter with demands of your own, which are often extreme andunreasonable.

For instance, consider this typical example of positional negotiating (see theflowchart below):

Customer: How much do you want for that black velvet picture of Elvis?

Storekeeper: This one, the one signed by the King himself? I suppose I could letit go for $500.

Customer: Whoa! That's out of my league. (Starts heading toward the door)

Storekeeper: Well, seeing that you're such an aficionado, I'll give you aspecial deal for $425.

Customer: Well, I am in a rush to get to the airport, so tell you what, I'llgive you $175 for it.

Storekeeper: This is a one-of-a-kind collector's item. I've owned it for 10years. I could never let it go for less than $350.

Customer: $200 is my final offer.

For the most part, these negotiators are focused on price and numbers. Sometimesthis feels like the best path to a quick and satisfying conclusion to a deal.This is often the case for one-time, low-value transactions, such as buyingitems at a garage sale or a bazaar where haggling is the accepted "game." Butwhat happens if you're negotiating over something of more value to you? Hagglingis not the best strategy for life's more complex relationships. Even when you'rebuying a new car, price haggling alone never fully addresses your variedinterests in price, financing, rebates, options, and so on. Positionalbargaining becomes increasingly painful,...

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