Lesson 6

Strategy and Planning

 1. SMART GOALS
Give examples of some goals you have set that is
SMART (Specific, Measureable, Agreed, Realistic
and Time-bound)
a)
b)
c)
d)
 2. Dual Concern Model
Give examples of strategies from the Dual Concern
model in your previous negotiation:
a) Collaboration
b) Competition
c) Accommodation
d) Avoidance
 3. Video
Watch the video and stop at 3.47

https://www.youtube.com/watch?v=18ZDiRsbEZA
a) What is the issue?
b) What are Lou’s and Nina’s interest
c) What are Lou’s target and resistance prices?
d) What are Nina’s target and resistance prices?
e) What is Lou’s and Nina’s BATNAs?
f) What are the additional conditions Lou demand?
 4. Discussion
What are the steps in the planning process of a
negotiation?
Give examples for each step
 Lesson 7

PERCEPTION
 1. Exercise
1. Maureen is good in calculation and do not like to
meet people. Is she likely to be an accounts clerk
or a receptionist?
2. John is an extrovert and like to meet new people.
Is he likely to be a salesman or a computer
programmer?
3. Henry is an introvert and likes to read. Which job
is more suitable to him? Salesman or librarian?
4. Abraham wears spectacles and is in his fifties. Do
you think he is wise?
 2. Exercise
Cisco in Silicon Valley was once the darling of the
new economy. Business news raved about is success,
its wonderful customers service, unique corporate
culture and charismatic CEO. In March 2000, it was
voted the most valuable company in the world.
Then the dot-com crash happened. Cisco’s stock
dived 80% of its value. Nothing changed. Only the
demand of Cisco’s products changed.
What perception distortion is this?
 3a. Read the following at normal
speed. Do not skim or skip.

A newspaper is better than a magazine. A seashore is a better place than

the street. At first, it is better to run than to walk. You may have to try it
several times. It takes some skill but it is easy to learn. Even young
children can enjoy it. Once successful, complications are minimal. Birds
seldom get too close. Rain, however, soaks in very fast. Too many people
doing the same thing can cause problems. One needs lots of space. If there
are no complications, it can be very peaceful. A rock will serve as an
anchor. If things break loose from it, you will not get a second chance.

(Source: On Being Certain: Believing You are Right When You’re Not. Robert Burton, MD)

Do you find this paragraph meaningless?

 3b. Now think of a kite. Visualize a kite.
Read the paragraph again.
A newspaper is better than a magazine. A seashore is a better place than
the street. At first, it is better to run than to walk. You may have to try it
several times. It takes some skill but it is easy to learn. Even young
children can enjoy it. Once successful, complications are minimal. Birds
seldom get too close. Rain, however, soaks in very fast. Too many people
doing the same thing can cause problems. One needs lots of space. If there
are no complications, it can be very peaceful. A rock will serve as an
anchor. If things break loose from it, you will not get a second chance.

(Source: On Being Certain: Believing You are Right When You’re Not. Robert Burton, MD)

Do you think this paragraph makes a lot of sense?

 4. Exercise
• Fall in stock prices becomes correction
• Overpaid acquisition price is branded as goodwill
• Problems are transformed to challenges
• A company that retrench workers is rightsizing
• A person who is fired is reassessing his career
• A fallen soldier is a war hero
• Genocide is translated to ethnic cleansing
• Unsold products are products in distress
• Accounts in trouble need intensive care

• What do you call all the above choice of words?

 5. Video
Please watch this Erin Brockovich video and stop at 2.20

https://www.youtube.com/watch?v=BbWcaxrVcxY

a) What type of frame did Ed Masry (lawyer) use?

b) What type of frame did Mr Foil from PG & E use?
c) What hardball tactic did Mr Foil use?
d) What is Ed Masry’s BATNA?
e) What mistakes did Mr Foil made?
 6. Exercise
Give examples of the following perceptual distortion
a) Halo effects
b) Selective perception
c) Projection
 Lesson 8
Cognitive Biases and Emotions
 1. Exercise
Every restaurant hopes to be the next Michelin-
starred restaurant.
Most of them closed after three years.
Return on investment is below zero

What cognitive bias is this? Why?

 2. Exercise
Auction houses like Christie’s and Sotheby’s
capitalize on this cognitive bias.
A person who bids till the end of the auction gets this
special feelings that the item is theirs, increasing its
value.
The nearly owner would suddenly increase his bid –
paying more than he planned. Any withdrawal is
perceived as a loss.

What cognitive bias is this? Why?

 3. Exercise
1950s Texas. Ten oil companies bid for a piece of a
land for oilfields. Lowest assessment $10 million.
Highest assessment $100 million. Actual value lies in
the middle.
Industry analysts noticed that the winner at these
auction always paid too much and years later, go
bankrupt.
What cognitive bias is this? Why?
 4. Exercise
• If a company makes good profit, the CEO attributes
this to his performance, his team and the corporate
culture
• If it makes losses, it blames the economic
conditions, exchange rates, taxes and fierce
competition

• What cognitive bias is this? Why?

 5. Exercise
Start-ups hire people of high IQ. That is not the true.
Start-ups hire fewer people than other corporations.
So their IQ is higher than other corporations that hire
more people where the IQ is averaged out.

What is this cognitive bias?

 6. Video
Please watch the video:

https://www.youtube.com/watch?v=WHjjy2kfBq4

a) What cognitive bias did the lady partner has?

b) How do you convince her to buy the chair?
 7. Discussion
a) Name and discuss cognitive biases you have
experienced before.
b) How do you manage it in future?
 8. Discussion
a) Name some of the positive emotions you have in
a negotiation
b) Were they useful?
c) Name some of the negative emotions you have in
a negotiation.
d) Were they useful?
 Lesson 9
Communications
 1. Video
Please watch this video:

https://www.youtube.com/watch?v=4YPtW8VFo9E

a) What is the Paul’s initial offer and the

counteroffer by Steve?
b) What is the ZOPA (Range of Possible Agreement)
c) What is Steve and Paul BATNAs?
d) How do you rate the communication process?
 2. Video
Please watch this video

https://www.youtube.com/watch?v=6PpQk63iIWw
Catherine Zeta Jones (Marylin Rexroth) is divorcing Rex Rexroth. Freddy
Bender is the lawyer for Catherine while George Clooney (Miles Massey)
acts for Rex.
a) What the icebreaker (small talk) appropriate?
b) How was the process of negotiation?
c) Was Freddy Bender’s anger and walking off an appropriate strategy?
d) How was George Clooney’s behavior?
 3. Discussion
What are the components of a good communication
in a negotiation?
a)
b)
c)
d)
e)
f)
 4. Discussion
Relate your experiences in your previous negotiation
in
a) Offer
b) Counteroffer
c) BATNAs
 Lesson 10
Negotiation Power
Inter-cultural Negotiation
 1. Video
View this video:

https://www.youtube.com/watch?v=UTE0G9amZNk

Discuss what other body language are unacceptable in

your or other culture.
 2. Video
View this HSBC video:

https://www.youtube.com/watch?v=ALWwK7Vz4gY

Discuss why is understanding the other party’s

culture important in negotiation
 3. Discussion
How does Hofstede’s Model affect your culture in
terms of
1. Individualism/Collectivism
2. Power distance
3. Career Success/Quality of life
4. Uncertainty Avoidance
 4. Discussion
a) What are the various types of power you have
seen?
b) What are the sources?
c) Are they useful to the negotiation?