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In the negotiation "Movie Man", we were provided with a listing of specific point values for different alternatives at issue between the producer and the director. I felt that using this point system was very helpful in preparing my strategy and gauging the success of my negotiation; however, it also introduced additional complication in the process which is why I have chosen to analyze this particular case. The results of the negotiation were as follows John B. (the producer) received 4,500 points while I (the director) received 4,800 points. While the outcome was clearly well balanced, the total amount of points for both sides, the size of the pie, was less than optimal. Upon reflection of the strategies and tactics used in the negotiation, it's apparent that both John and I were set upon finding an integrative solution though somewhere we lost sight of that end goal.
One issue that plagued me in my first negotiation was not carefully identifying which issues were most important to me. I did not normalize the different benefits available to me (time, money, hassle) and could not properly value the concessions I had made to my counterpart or the offers he had made to me. This led to a no-deal outcome which was clearly sub-optimal given that there was a fair range of pricing that we both would have been comfortable with. In "Movie Man", I carefully prepared using the point values and made a separate table indicating the tradeoffs as you move up and down the different scales provided. This allowed me to figure out where I could get the most bang for the buck by moving one increment up or down the scale. I also made sure to identify issues which carried the most weight, by virtue of points, and wrote down qualitative reasons to justify my list of demands. My additional preparation paid dividends during the more distributive areas of the negotiation.
The initial issues that John and I chose to discuss were ones that both of us knew did not carry significant weight for either party. I believe that we both wanted to try and gain some momentum and establish trust prior to discussing the more contentious issues. In addition, both of us lead off the discussion by indicating how important it was that we work together and highlighting the potential for a mutually beneficial agreement. While this sounded great, as soon as we began discussing any points, I found myself falling into a distributive mindset. Instead of indicating the choices that were important to me, I talked about the less beneficial options, not in a positive or negative light, and tried to feel John out. When we eventually agreed upon the mutually beneficial outcomes, it felt unclear that either of us was satisfied. Had either of us been more forthright about our motives, I think we could have left this stage feeling more positive and with a higher level of trust for each other.
The next step in the negotiation was a gradual move towards more important issues. Unfortunately, the tactic that I took here was to look at groups of related points and negotiate within the scope of those three or four points. Even though John and I were trying very hard to be integrative, narrowing the proposals to three or four points made it difficult to expand the pie. John was the first one to toss out the idea of incorporating unrelated issues; however, it appeared to be a little too late. Time pressure made it difficult to work out a larger package deal so we continued to look at points one at a time.
This was a huge mistake in terms of finding the win-win solution. Neither of us had the
flexibility to make the right concessions given the limited packages on the table. In addition, I was unable to understand at any given point how I was doing relative to my aspiration point. I had listed a total number of 500 points as a goal; however, because we were negotiating issue by issue it was difficult to track my progress.
Improved and prolonged communication before initiating any offers would have contributed significantly towards a more integrative solution. It was really difficult to figure out when John was making a large concession. I also could not tell how a high priority issue for him compared with other high priority issues. Because these were areas where we could have made non-specific compensation, it would have been valuable to understand which was the most important. In particular, we did a poor job in negotiating the financial issues because I did not understand the magnitude of the benefit he would receive if I conceded to some of his demands.
A final area where the negotiation could have been improved was keeping some flexibility for renegotiation. Neither of us presented the idea of returning to already agreed upon points and attempting a post-settlement settlement. I was not particularly pleased with our first outcome, but time constraints made it difficult to revisit past issues. In the future, I would make sure to leave this option available in the case that I made some similar mistakes to the ones noted here.
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