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Let us never negotiate out of fear. But let us never fear to negotiate. John F. Kennedy

Good negotiation skills are based on understanding people. In everyday life, people naturally tend to take positions which communicate their wants and needs. In conflict situations, it is often seen as win-lose situation because positions are opposite. Can argue that the negotiation should start off with finding out the others underlying interests. Once the understanding is created, the people could see the problem as a creative opportunity to create more options for both parties. Negotiators may have conflicting positions, but knowing and understanding the others interests can help to create value for both parties. In the music industry, good negotiation skills are important in order to exchange ideas and work out a fair solution for both parties. Communicating according to the situation and moment can help to develop a greater understanding of the way pursuing the other party. Different types of negotiations need different approaches depending on the issues parties are dealing with. Negotiation is a mixed-motive enterprise, such that parties have incentives to cooperate as well as compete. (Thompson, 2011, p.9) The value for both parties stand in listening and understanding that the problem is separate from the people. Inventing options which meet both parties interest is the most effective way of negotiating.

The basic problem in negotiation lies not in conflicting positions, but in the conflict between each sides needs, desires, concerns, and fears. (Fisher & Ury, 2003, p.42) Position is the solution to the issue which represents the underlying interest of the party. Interests can also be described as silent movers behind the hubbub of positions. (Fisher & Ury, 2003, p.42) Knowing the interest behind the position helps to invent options which can lead to mutual gain. Taking a position and denying the actual interest behind it can lead to a lose-lose outcome. The issue should not be seen as a conflict between the interests because there might be ways to multiple the issues and therefore find ways to
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satisfy both underlying interests. The issue could be solved by exchanging the reasons for the positions. For example, if a record company offers a exclusive record deal to the artist, there will be a negotiation over the contract and terms. Record companys position is to offer a small advance, but the artists position is to get a high advance. To create a win-win situation the record company and the artist should communicate their interest not positions. Record company does not want to offer a high advance, because they would be taking a high risk and on the other hand the artist feels that the advance is too low for maintaining economic well-being. If both parties reveal their interests, its easier to come up with creative solutions. The record company could offer a 360-deal with a higher advance which would create more income streams for them and the risk for making a high investment can be lowered. Therefore the artist could have a higher advance and it would satisfy the artists interest. Instead of having a conflict over positions, both parties come out as winners and the relationship will not be damaged. The issue, interest and position are closely related with each other as one reflects the other. When the interest changes, the position changes even if the issue stays the same. If the parties understand each others interests behind their positions, it is easier to find a fairly good outcome for both.

Different types of negotiation techniques can be used in order to find a solution to the issue. Most negotiators view negotiation as a fixed-pie enterprise. (Thompson, 2011, p.13) In distributive negotiation, the positions are opposite and one-dimensional, it is either a win or a loss. To reach the mid-point the parties must compromise and this leads to loselose outcome. The single issue and hardened positions can lead to aggressive behaviour and be costly, difficult or frustrating. This type of negotiation is good for bargaining over something that does not insist future relationship, because every gain by one party represents a loss to the other. Theres no trust between parties because the information and interests are hidden. The parties could only see others tip of the iceberg. In the music industry, these kinds of negotiations might occur when bargain over cd manufacturing prices, publishing royalties or studio costs. As the pie is fixed the more one wins the more other loses.

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Each move you make within a negotiation helps structure the rules of the game you are playing. (Fisher & Ury, 2003, p.10) Successful negotiators always come prepared, established their walk-away point and BATNA, the best alternative to a negotiated agreement. It is crucial to identify the least acceptable and the most desired outcome. The parties must exchange their underlying interests in order to find a mutually satisfying agreement. If two parties have opposite positions and neither is willing to compromise there will be no zone for possible agreement (ZOPA) and both parties end up losing time, money and value. Kelley Robertson (2012) argues that silence is a powerful tool in negotiation as it gives you control and time. The other person will often volunteer additional information that they have otherwise kept to themselves. (Fearless Selling, 2012) Can argue that the other party could offer a better first offer, called anchor if they feel the pressure of silence. Dealing with different people, there are different tactics for persuasion - central route and peripheral route. (Thompson, 2011) Central route is for people who focus on facts and numbers. There is a rational and accurate approach. When dealing with emotional and motivational issues, its better to use the peripheral route, were people focus on getting approval from others or following their own identity and emotions. Can argue that it is important to take the time, place and a communication way into an account when negotiating, because physical presence and body language can benefit the negotiation as well as ruin it. According to Fisher & Ury (2003) the effective negotiators are ethical, tactful and realistic whereas ineffective negotiators are too trustful, patient and gentle. Can argue that body language can say a lot about peoples intentions, interests and self-control. In digital age, a lot of negotiations are done over e-mail or telephone which suggest a good verbal manner and writing skills. Preparation is an important part for succeeding in the negotiation, because it gives the confidence and helps to realize the others interests behind the positions. Can argue that one should always have a established BATNA and a walk away point which can help to determine the outcome.

Integrative approach to negotiation includes open exchange of information and ideas between the parties. The purpose of negotiating is to serve your interests. The change of that happening increases when you communicate them. (Fisher & Ury, 2003, p.50) The

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aim of this approach is to maintain good relationship and create options for both parties. Satisfying both interests can help to create and claim value for both. Brainstorming ideas and collaboration is the key for integrative negotiation, but this can often lead to wasting time and take much effort. As both parties invent options for mutual gain, the actual issue may fade to the backround and it can be difficult to elaborate the final agreement. One party can use log rolling in order to create more value - inventing issues low cost to them, but high benefit for the other. An exclusive album release with a special merchandize for fans can create a high value for customer, but it is not necessary costly for a record label. It can be argued that empathy and understanding can help to pursue the satisfying longterm interests between the parties. Integrative negotiation includes separating people from the problem. Go even further and be personally supportive. (Fisher & Ury, 2003, p.56) The problem itself should be seen as secondary as the interests come first. Claiming value in negotiation happens when interests are met. Can argue that effective negotiators often enlarge the pie and stand for fair outcome for both parties. They act trustworthy, tactful and self-controlled. (Fisher & Ury, 2003) Can argue that integrative negotiation creates more value in the long run than distributive negotiation.

Good communication lies in exchanging information and underlying desires. A non contractual negotiation can involve many positions, issues and different interests. When the artist and the record label have a negotiation over a music video production, there are a lot of questions asked and answered from both parties to find a mutual agreement. The negotiation should be integrative rather than distributive because both aim for a win-win outcome. Entering to a negotiation about a video which is fairly creative subject can be intimidating and time consuming. The positions might be different and there could be many issues to bargain about. The body language while negotiating is as important as the spoken word. Knowing your walk away point is a good way to secure that the emotions will not get in the way of decision-making. Can argue that a non-contractual negotiation is a power game about who has the right to decide. A record company might suggest that the up-coming pop act should shoot the video in a in-house studio. The artists management wants to shoot the new video on tour, where every live performance could be

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professionally recorded by a production company and then cut later together. As the negotiation starts off with opposite positions, it is crucial to reveal the underlying interests for a win-win situation. Record company wants to manage the costs and stay in control. The artist wants the recognition. Both parties are interested in connecting with fans and expanding the market. Record company could agree with filming the video on tour, if the material could also be used for a DVD. In return, the artists management could give control to the record label so they could choose the production company and therefore stay in control and manage their costs. Both interests are served and will benefit from the agreement.

Arguing over the problem by locking into a position is the most common way of negotiating, but this can lead to unwise agreements, damage the relationship and lose the overall value. It may not be wise to commit yourself to your position, but it is wise to commit yourself to your interests. (Fisher & Ury, 2003, p.55) To create a win-win situation between the record company and the artist, both should communicate their interest not positions. Two parties should join their forces because the problem stands alone. To create and claim more value within the negotiation process both parties must be well-prepared and flexible. Every negotiation is different and can argue that good negotiators must be quick learners to adapt the information about the other party using their intuition.

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Reference List

Thompson L. (2011) The mind & heart of the negotiator. 5th ed. Upper Saddle River, NJ: Prentice Hall.

Fisher, R. And Ury, W. (2003). Getting to yes. 2nd ed. London: Random House Business Books.

Kelley Robertson (2012) The power of silence. Fearless Selling [online]. Available from: http://fearless-selling.ca/tag/negotiating-tactics/ [Accessed 9 November 2012].

Bibliography

Harrison, A. (2011) Music the business: the essential guide to the law and deals. 5th ed. London: Virgin Publishing.

Thompson, L. (2005) The mind & heart of the negotiator. 3th ed. Upper Saddle River, NJ: Prentice Hall.

Carey, J. (2002) The Intellectuals & The masses. Chicago: Academy Chicago Publishers.