Negotiation

1912 Presidential Election

3 Million Pamphlets Printed With Photo
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Forgot to get copyright permission from photographer
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Photographer could ask for
$1 / photo
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$3 mil in 1912 worth $60 mil today

Roosevelt’s manager:
“Planning to distribute three million copies of campaign speech with photographs. Excellent publicity opportunity for photographers. How much are you willing to pay to use your photographs? Respond immediately.”

Photographer wrote back: “Appreciate opportunity, but can only afford $250.”

Value:
whatever people find useful or desirable

Negotiation can help create value through agreements that make both parties better off than they were without agreement.

Try to get value for your party

Five Principles for Negotiation

1. Assess your BATNA

BATNA: Best Alternative to a Negotiated Agr

• Identify all alternative plausible options
• Estimate the value associated with each alternative
• Select the best alternative - that’s your BATNA

2. Calculate Reservation Value

Reservation Value

• Your Walk Away Point
• When are you indifferent

3. Assess other party’s BATNA

Roosevelt Photographer deal only worked with focus on other's BATNA

Both Parties had bad BATNAS

• If Roosevelt didn’t use photograph, photographer would make no money, and lose opportunity for national publicity.

4. Other party’s reserve value

5 Evaluate ZOPA

Zone of Possible Agreement

• Space between both party's reserve value

Class Exercise

Some tips for Jobs Negotiations

1. Equation to get what you want

1a. Org has to Like You

1b. Org has to Believe you deserve it

1c. Org Needs to justify internally

1d. flexible currency can help

2. Don't negotiate just to negotiate

3. Learning Mindset

4. Negotiate Multiple Points Together

5. Be prepared for tough questions

6. Watch the Timing

7. Tell the Truth

8. Be a good partner

What job you take is more important

Women Negotiating

Penalty

• Can be seen as more demanding / not nice

Women more effective when pair competence with a communal orientation