1. Negotiation 101 with an Emphasis on Women

2. In 2000, 76.8 percent of women aged 25 to 54 worked outside the home. Women's earnings relative to men's have stagnated at 73.2 percent. 2.5 x > more women than said they feel "a great deal of apprehension” Men initiate negotiations about four times as often as women. will pay as much as $1,353 to avoid negotiating the price of a car typically ask for and get less when they do negotiate—on average, 30 percent less than men. 20 percent of adult women say they never negotiate at all

3. lose more than $500,000 by age 60 if don’t negotiate first salary eight times as many male MA’s from Carnegie Mellon negotiated their salaries.. women who consistently negotiate salary increases earn a $1 million more during their careers than women who don't. Women own 40 percent of all businesses in the U.S. but receive only 2.3 percent of the available equity capital. Male-owned companies receive the other 97.7. percent. Women report salary expectations between 3 and 32 percent lower than those of men for the same jobs men expect to earn 13 percent more than women during their first year of full-time work and 32 percent more at their career peaks.

4. Male Bargaining Advantages Feel bargaining advantage Feel entitled to more rewards Less likely to back down Use more distributive tactics Feel entitled to information Seen as stronger speakers than women Seek more power Intimidate

5. Female Bargaining Advantages more likely to follow a set of rules or steps to get to a final outcome take a broad or 'collective' perspective view elements in a task as interconnected and interdependent see the big picture and come up with a systematic plan on how to solve it. work through steps by sharing experiences while figuring out what both sides can gain to achieve an integrated outcome. more concerned about how problems are solved than merely solving the problem itself Instead of concentrating on what they want or need to get out of the negotiation women focus on what both sides need and how both parties can get what they want

6. That whole mars/venus thing

7. Identify Value = precedent, relationships, reputation, political appearance, fairness, profit, future opportunities, survival, praise, fulfillment (personal or corporate) Create value by locating and identifying all of your own and your bargaining partner’s interests (preferences, priorities, needs, desires, fears) Claim value by making a case for your entitlements, trading differences, finding commonalities Reap value by crafting durable agreements OptimalNegotiated Outcome

8. Relative Benefits v. Absolute Numbers

9. Agreement possible Better than walking away BATNA Achieved through compromise “Win win” Meets interests of both parties better than compromise would Achieved through identifying interests, identifying and/or creating value Pareto-optimal Best possible negotiated outcome for both

10. Distributive Bargaining The process by which the parties distribute between themselves what they believe to be a fixed “pie” of money, goods or services A Zero Sum exchange in which whatever one side gains, the other side loses Parties move toward resolution through a series of concessions

12. What you want

13. best goods, price, service

14. close deal, future business, successful partnership

15. Interests

16. Why you want it

17. Make more money; acquire customers; drive competitors out of the market

18. independence, satisfaction, adventure, creation

19. Issues

20. What you disagree about

21. Quality, price, future benefits

22. What you’re competing about/for

23. Market position, survival

24. Stakeholders

25. Everyone interested in outcome

26. Shareholders, workers, executives, customers, suppliers; familyGrammar of Negotiation

28. Competitive market advantages

29. Protecting market position

30. Gaining competitive advantage

31. Acquiring a Piece of the Action

32. Securing Future

33. Avoiding Risk

34. Creating a Trading Partner

35. Gaining Synergies

37. third party sources of recovery

38. Timing of payments

39. Metrics for satisfactory performance

40. Method of payment

41. Exchange rates

42. Letters of creditBargaining Chips

43. DiagnosticQuestions What are my intended outcomes and interests? Preferences, priorities, needs, desires, fears, aspirations, bottom line What are their possible interests and outcomes? Put yourself in their shoes What are the options? Potential points of agreement Differences that might be dove-tailed

45. Competitor’s strengths, weaknesses

46. motivations, concerns, preferences, desires, needs, priorities, risk tolerance, optimism/pessimism about the future

47. Your Best Alternative to a Negotiated Agreement (“BATNA”)

48. Plan

49. Opening Offer/Demand

51. Each Concession tends to be half the size of the previous concession and takes twice as long to be made

52. short-circuit dance &your bargaining partner will use mid-point offer to claim more value

53. Extreme Offers

54. Make them soft

55. Monitor response

56. Anticipate making concessions

57. Reasonable offer

58. Demonstrate commitment

59. Make only modest concessions

60. Stress meritTheDance

61. A Reason and a Number Resource Materials Part I, page 49

62. ANCHORING The party making the first reasonable offer should prevail over his bargaining partner who must respond in the range set by that party.

63. Set false anchor Frame the “deal” Nature of problem deal is capable of resolving Characterize deal in way favorable to your strengths Routine extension of old rather than new “deal” View sale of biz as stand-alone vs. synergy created by acquisition by buyer Focuses on future rather than present Focuses on value to BOTH parties Lax & Sebenius 3-D Negotiation at 199-201 Using, Resisting & Creating (Meta) Anchors

65. Strong tendency to prefer avoiding losses over acquiring gains

66. competitor’s deal would be a loss because – mired in bureaucracy; can afford to fail; product not as good

67. Use language that emphasizes your position & frames information in your favor

69. maintain those high level demands throughout the course of the negotiation

70. make few (and small) concessions

71. adhere to a high level of aspiration for one's own "side."

72. obtain as much information from the other side as possible

73. give as little information about one's own position away

74. bluff

75. mislead

77. Creates appearance of increase in their number

78. Almost risk free

79. Label concessions & demand reciprocity

80. Stress difficulty in making concession

81. This will cut our profit razor thin

83. make hypothetical offers that can be disowned later;

84. demand principled justifications for positions; and,

86. whether the parties can agree on criteria for a "fair" settlement;

87. and, what priorities each party has, i.e.,

88. which issues are most important to each party and

90. Distributive vs. Integrative Bargaining Dividing Fisher and Ury’s Famous Orange Interest Based Solution Distributive Solution

91. Creating Value Compatibility (identifying issues for which parties don’t have a conflict of interest) logrolling, or trading off concessions on low-priority issues for gains on higher priority issues trading differential time preferences, or allocating more initial outcomes to the more impatient party and greater profits over a longer period to the more patient party adding issues, or adding to the agreement issues not inherent in the initial negotiation framework contingent contracts, or bets based on different expectations regarding a future event. Research reveals that negotiators often fail to implement these strategies and to reach integrative agreements

92. The Central Question How can we address our interests While at the same time addressingyour interests in a way that satisfies? our common interests With thanks to mediator Sam Imperati