of the agreements you negotiate so as to maximize potential value, and also how
to claim as much of .... Negotiating Globally: How to Negotiate Deals, Resolve.
Negotiations MLD 221E Harvard Kennedy School Spring Semester 2014 Class meetings: M/W 11:40 AM - 1:00 PM, Littauer 230 T 4:10 PM - 6:30 PM, STARR
Professor: Julia Minson
[email protected] Office: 150 Taubman – Office hours by appt. Course Assistants: Shailey Hingorani
[email protected] Omar Aziz
[email protected] Faculty Assistant: Catherine Kearns
[email protected] We negotiate every day. We negotiate with co-workers, bosses, subordinates, clients, salespeople, romantic partners, and many others. This course is designed to build your understanding, skill, and confidence so that you achieve better outcomes in all your negotiations—large and small. In this course you will learn how to increase the quality of the agreements you negotiate so as to maximize potential value, and also how to claim as much of that value for yourself as you can. You will learn to see opportunities to negotiate where you had never seen them before. A basic premise of the course is that great negotiators are not born, but made through thoughtful, evidence-based skill building. Thus, the course is structured around three types of activities: Applying analytical skills to gain a strategic understanding of negotiation contexts Learning empirically validated techniques for advancing your interests Practice, practice, and more practice The following is a partial list of course objectives:
Gain a deep understanding of the strategic structure of negotiations. It is critical to learn to think rigorously about interests, goals, positions, rights, and power. These issues are often ambiguous and do not have singularly correct answers. Improve your ability to understand the behavior of individuals, groups, and organizations in competitive and collaborative situations. Provide experience in negotiation, including learning to evaluate the costs and benefits of alternative actions and how to manage the negotiating process. Develop confidence as a negotiator.
Course Requirements and Grading Criteria: Performance on negotiation exercises: 15% Class participation: 20% Midterm exam 25% Team assignments: 20% (4 assignments, each worth 5% of the grade) Final paper: 20% Negotiation outcomes: 15% This is a class where a great deal of learning is generated by your experiences preparing for and participating in negotiation exercises. In the “real world” negotiation outcomes often carry high stakes. Thus, your outcomes on four of the eleven class exercises will count toward your grade. The points you earn will be standardized and compared to other students negotiating in the same role as you. The average outcome in any given role will receive a 3, an outcome one standard deviation above or below the average will receive a 4 or a 2, an outcome two standard deviations above or below the average will receive a 5 or a 1. At the end of the semester I will drop the lowest of these four scores for each student. Class Participation: 20% This component of the grade is divided equally between participation in negotiation exercises, submission of all preparation sheets/hot debriefs on a weekly basis, and the quality of your contribution to class discussion. Exercise Preparation: Students are expected to fully complete a Prep Sheet in advance of each exercise. Preparation ensures that both you and your negotiation counterpart(s) derive maximum value from each exercise. You cannot get credit for an exercise unless you turn in a prep sheet and a debrief sheet. Hot Debriefs: Hot Debriefs are due immediately after completion of exercises and prior to departure, and serve as a means to capture your insights and feedback from negotiation exercises in a systematic manner. These debrief materials also aid in tracking skill acquisition and development over the semester. Class discussion: Your participation in class discussion will be evaluated on the quality of your contributions and insights. After each negotiation exercise, a debriefing session will include sharing information about results, strategies attempted, and reactions to the process. I will cold-call to ensure that all students have equal opportunity to share their thoughts. Attendance: You must attend all Monday and Wednesday class sessions and all Tuesday negotiation exercises or team check-in sessions. Unexcused absences are not permitted. (You must have your Program Director contact Professor Minson directly to formally excuse any absence.) Punctuality: Your on-time arrival to all Monday and Wednesday classes, and Tuesday evening exercises and team check-in sessions is mandatory. Lateness will be noted and
will affect your participation grade. Midterm exam 25% The midterm exam will be given in class on Monday, 3/24. The exam will test your command of the material covered up to that point in classroom sessions and readings. The aim of the exam is to make sure you are familiar with negotiation concepts and can apply them thoughtfully. You will not be responsible for knowing names, dates, or methodological details associated with specific research. Team project (20% of grade) and final paper (20% of grade) This course features a team project designed to extend your negotiation skills from the classroom into the real world. Throughout the semester you and your teammates will work to orchestrate a series of trades in order to raise goods, services, or funds to a nonprofit organization or charitable cause of your choosing. Each student will begin the semester with a small, low-value object and will be required to attempt to trade it for larger and more valuable objects. The trading will be done in several rounds, eventually culminating in obtaining your desired donation. At the end of each round you and your team will engage in a learning check-in session to review your progress toward your goal and the growth of your individual negotiation competencies. At the end of the learning check-in session each team will submit a report that will be worth 5% of your grade. Four such reports will be submitted in the course of the semester. The final paper in the class will be based on your analysis and takeaways from the group project (20% of grade). One paper will be submitted per group. This paper should be thought of as a group-based, take-home final exam that will provide you with the opportunity to showcase the growth of your analytical, practical, and scientific negotiations knowledge. In the paper you will be expected to demonstrate your command of course concepts, familiarity with the readings, and growing self-awareness. The paper is due at 11:59 pm, Tuesday, May 6th. You will receive detailed instructions regarding the project structure and rules on Monday, Feb. 10. Throughout the team project you will not be graded on the size of the donation that you end up negotiating. Even great negotiators don’t always get their way. Your grade will be based on your willingness to stretch your comfort zone in order to grow your negotiation skills, and your understanding of the relevant negotiation principles, as reflected in your reports and final paper. Course Code of Conduct 1. Be prepared and arrive punctually for all exercises (see attendance policy). 2. There will be no computers, cell phones or tablets used in class except during negotiation exercises. 3. Being present includes not only being physically present, but also being mentally engaged. Please arrive ready to participate. 4. You may not share course materials with anyone outside of class, nor borrow course materials from anyone who has taken the class previously. 5. Class discussion stays in class.
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Maximizing the Skill-Building Benefits of the Exercises Commit to playing the exercise faithfully, as it was written, in a way that maximizes the intended learning for you and your counterpart(s). Be focused on your skill-building objectives, as identified on your Prep Sheet. Be yourself. You are taking on a role with a specific portfolio of interests, to which you should adhere. However, the role descriptions should not supplant your better judgment. Remember, you are trying to develop your own negotiation style that fits well with the broader dimensions of your personality. Observe your emotions. Even in stylized exercises, there are opportunities for real disagreement and conflict escalation. Understanding your emotional response as tensions arise is a vital negotiation skill. Manage your reputation. Your reputation as a fair and reasonable negotiator is based on how you actively manage the process and outcome of your negotiation. Dedicate sufficient time to the Hot Debrief. Don’t rush your learning! Be prepared to give and receive constructive feedback. Keep it confidential. You may not show your confidential role instructions to the other side, although you are free to tell the other side whatever you would like about your confidential information. Do not make up facts or information that materially change the power distribution of the exercise. Specifically: You may not lie about your BATNA.
Required Readings Malhotra, D., & Bazerman, M. H. (2008). Negotiation Genius. New York: Bantam. ISBN: 978-0-553-80488-1 (Hardback) or 978-0553384116 (Paperback). The course outline simply refers to this textbook as M&B. MacDonald, K. (2008). One red paperclip: The story of how one man changed his life one swap at a time. ISBN: 978-0091914530. There are also additional articles on Course Pages. The articles that have been selected offer a clear, lay description of cutting edge research in the field of negotiations. Our class time is limited and thus we will not be able to explicitly discuss every reading. However, visible familiarity with the readings will increase your participation grade, your performance on the exercises, and ultimately the value you derive from the class. The midterm will draw on the material in the readings whether it was discussed in class or not. Suggested additional readings (if you want to learn more) Brett, Jeanne M. (2007). Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and Make Decisions Across Cultural Boundaries. San Francisco: Jossey-Bass. Cialdini, Robert B. (1993). Influence: The Psychology of Persuasion. Morrow: New York. Thompson, Leigh (2011). The Mind and Heart of the Negotiator. Upper Saddle River, NJ: Prentice Hall. ISBN: 0-13-140738-4.
DAY
DATE
CLASS ACTIVITY
ASSIGNMENTS/ READINGS
MON
JAN 27
Syllabus Pfeffer: Evidence-based management
TUE WED
JAN 28 JAN 29
Introduction Appleton-Baker exercise No exercise Negotiation fundamentals
MON
FEB 3
TUE WED
FEB 4 FEB 5
MON TUE WED
Malta case – managing your BATNA Synertech-Dosagen Anchoring, offers and counteroffers, midpoints
M&B Ch. 1; Wheeler: Negotiations analysis Edmunds: Confessions of a car salesman Wriggins: Up for auction
Prep sheet; Hot debrief Galinsky: First offer? Schweitzer on satisfaction Galinsky on threats FEB 10 Class project launch M&B Ch. 11; One red paperclip; FEB 11 Bullard Houses Prep sheet; Hot debrief FEB 12 Ethics and lying M&B Ch. 3, 9-10; Malhotra: Smart alternatives Schweitzer: Negotiators lie Lax & Sabinius: On ethics MONDAY FEBRUARY 17 – HOLIDAY – PRESIDENT’S DAY
TUE WED MON TUE WED
FEB 18 FEB 19 FEB 24 FEB 25 FEB 26
Summer Internship Integrative negotiations Negotiating job offers Project team check-in 1 Gender in negotiations
MON TUE
MAR 3 MAR 4
Stopwatch
WED
MAR 5
Advanced integrative strategies
MON TUE WED
MAR 10 MAR 11 MAR 12
OPEQ Project team check in 2 OPEQ debrief
MON TUE WED MON
MAR 24 MAR 25 MAR 26 MAR 31
Midterm Exam Mexico Venture Cultural influences George Mitchell – the negotiator as Mediator
Cementownia Odra
Prep sheet; Hot debrief M&B Ch. 2; Weingart: Job negotiations Bowles: Gender in negotiations Kray: Leading through negotiations Prep sheet; Hot debrief Prep sheet; Hot debrief Moore: Deadline pressure Robinson: The Farpoint Gambit M&B Ch. 3; Raiffa: PSS Medvec, Galinsky: Multiple offers Moore: Do you know how much you care Prep sheet; Hot debrief
Hofsteder: Prisoner’s dilemma Lax & Sebenius: Neg dilemma SPRING BREAK MARCH 15-23
Prep sheet; Hot debrief Brett: Culture and negotiation Sebenius & Curran: To Hell with the future Curran & Sebenius: Mediator as coalition builder
TUE WED
APR 1 APR 2
Project team check in 3 Mediation
MON
APR 7
Persuasion
TUE WED
APR 8 APR 9
ABC Round 1 Negotiating in teams
MON TUE WED MON TUE
APR 14 APR 15 APR 16 APR 21 APR 22
ABC Round 2 ABC Round 3 ABC Film ABC Debrief Psychological barriers
WED MON TUE WED
APR 23 APR 28 APR 29 APR 30
Project team check in 4 Project presentations Final paper planning session Project presentations / Class Finale
Lewicki et al.: Using third parties Brockner: Why it’s hard to be fair Gladwell: The power of context Cialdini: Reciprocal concessions Cialdini: Weapons of influence M&B Ch. 7; Prep sheet; Hot debrief Groupthink – Chapter 1 Mannix: Negotiating as a team Prep sheet; Hot debrief Prep sheet; Hot debrief Kuhle, Knox, & Ross (handed out in class) Dixit & Nalebuff M&B Chs. 4, 5, 6 Ross, L. (2012). Perspectives on Disagreement and Dispute Resolution. Behavioral Foundations of Public Policy, 108 Effective presentation checklist M&B Ch. 13-14
FINAL PAPER DUE - Tuesday, May 6th, before 11:59 p.m.
