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This is the second in a two-part series on negotiation strategy.
It is part of a longer sequence on negotiation skills.
In the first episode, management consultant Brian Fields discussed the basics of making a deal.
We learned how to avoid some top common mistakes and we reviewed important vocabulary such as BATNA, bottom line bargaining chip, win-win and zone of possible agreement.
Today's show continues the interview with Brian.
In the dialogue we'll learn five important elements of strategy parties interests value, power and ethics.
And along the way, we'll study useful vocabulary and idioms.
As you listen to the second half of Brian's interview, try to answer the following listening questions.
The correct responses will be posted, as usual, in a few days on our website at wwwbusinessenglishpodcom.
Listening questions 1
What is the interviewer talking about when he refers to a trap?
2.
How does Brian say we should think about interests?
3.
What does Brian say we should try to maximize in order to overcome blockage in a negotiation?
Okay, and are those the main things to planning strategy?
Not by a long shot.
There are several other things to consider.
For instance, we should constantly be asking ourselves who are the real parties in the negotiation, who are the decision makers?
Sometimes the person sitting across the table from you is not the person in charge, or isn't who he seems to be.
Right.
I can see how that could be a trap.
Absolutely.
And another thing is to think creatively about interests.
That means, what are their fundamental needs and priorities?
A lot of people make the mistake of not considering carefully where their opposite number is coming from and what goals he has to accomplish.
That has to do with benefits certainly, and it leads into a discussion of value.
We are looking for synergy effects, that is, ways to make one plus one equal more than two.
The question is, how can value be created and who is likely to get it?
We need to think outside the box.
Can you give me an example?
Well, for instance, you may be interested in buying my product because it contributes to the image of your store.
Or you may want to acquire my business because it will help you control a key part of the market.
There is much more to all this than a simple commercial transaction.
Okay, so far we've only talked about positive things.
What are the negatives that come up in a negotiation?
There are certainly negatives as well.
We often call these barriers.
It's important to think of these not just in terms of obstacles that might prevent agreement but, much more subtly, as impediments to maximizing joint value.
So, overcoming blockage is not just about making the deal.
It's about maximizing value as well.
That's right.
And to do that, you have to watch out for the ways that various parties influence the negotiation process and its outcome.
This kind of power to remove or set up barriers to agreement can be both a blessing and a curse.
It seems to me that there's one last thing that hasn't come into the discussion so far, and that's, morally, what is the right thing to do?
If you had asked that question to me 15 years ago, I might have laughed.
But these days we think of ethics in broader terms, to include the environment, corporate social responsibility, shareholder rights, and all these areas have a lot of potential value for companies.
As the dialogue opens, the interviewer, referring to the first half of the discussion in the previous episode, asks Brian if that was all there was to negotiation strategy.
Brian replies, not by a long shot. which means not at all.
Then he goes on to mention another key strategic concern.
A party to a negotiation is a person, group or company that has an interest in the discussion.
For example, in a typical sales negotiation there are at least two parties the buyer and the seller.
Brian emphasises how important it is to determine who the real parties are.
Who are the decision makers?
That is, the people who have the final authority to make a decision, be it yes or no, buy or sell.
He says, is not the person in charge.
The interviewer refers to this as a trap, which in this case means a situation that leads us to waste time and energy or, in the worst case, causes us to fail.
So determining the real parties, the decision makers, is the first strategy that Brian mentions.
Let's listen to some more example sentences discussing this element of strategy.
It's not always obvious at first glance who the decision makers are.
Often there are more than just two parties to a negotiation.
Deals may be complex and we must also consider government or shareholder involvement.
It's important to recognise the real parties to the negotiation and identify the key decision makers.
After interests, what is the next strategy Brian talks about?
And another thing is to think creatively about interests.
That means, what are their fundamental needs and priorities?
A lot of people make the mistake of not considering carefully where their opposite number is coming from and what goals he has to accomplish.
Here Brian emphasises the importance of thinking creatively or originally about the actual interests or goals of the parties to a negotiation.
We must consider where they are coming from.
That is what their opinions and viewpoints are, what motivates and drives them.
This idiom where someone is coming from is a useful oral English expression for discussing interests.
Listen to some more examples of its use.
We asked them about their motives for the merger to get a feeling for where they were coming from.
It's not at all clear to me where she is coming from.
As the interviewer points out, in the dialogue thinking about interests means considering the other party's benefits.
How does Brian react to this observation?
Certainly, and it leads into a discussion of value.
We are looking for synergy effects, that is, ways to make 1 plus 1 equal more than 2.
Value is a key consideration in any business deal.
It is a broad, abstract term that does not refer merely to money, but more generally to benefit and gain of all types.
We often speak of creating value and delivering value to customers.
Creating value involves looking for synergy which, as Brian points out, means situations in which the whole is greater than the sum of the parts or, as he says, in which one plus one is equal to more than two.
This term, synergy, has become a very popular and important word in business language.
After many mergers, the promised synergies fail to materialise, often because of cultural and management differences.
A lot of what we are doing in negotiation is looking for synergies between our companies.
Identifying synergy effects requires creative thinking.
Next, Brian goes on to talk about how to create synergy effects.
The question is, how can value be created? and who is likely to get it.
We need to think outside the box.
To think outside the box is another popular useful business idiom.
It means to think outside the normal habits of a group or organization.
In other words, to think very creatively.
I particularly admire his ability to think outside the box.
He's very original.
Often, finding and creating value requires thinking outside the box.
Brian gives two examples of thinking outside the box.
One.
As he underlines, there is much more to all of this than a simple commercial transaction.
That is more than mere buying and selling.
Next the discussion turns from positives to negatives things that can cause a negotiation to falter or fail.
They're certainly negatives as well.
We often call these barriers.
It's important to think of these not just in terms of obstacles that might prevent agreement but, much more subtly, as impediments to maximising joint value.
Brian calls these negatives barriers.
Words he uses with the same or similar meanings include obstacles and impediments.
All of these words collocate with the verbs set up, to create, and remove, to get rid of.
And they use the preposition to.
For example, Brian says it's important to remove obstacles to maximising joint value.
That means to get rid of things that prevent all sides from getting more benefit.
Together.
All these negatives obstacles, impediments and so on are referred to as blockage, which must be overcome or defeated.
Let's listen to some more examples that demonstrate this important vocabulary.
It was a real challenge to remove the barriers that had been set up, but in the end we succeeded.
Overcoming blockage is a process of getting rid of obstacles in the road to an agreement.
The discussion of blockage leads into the next important strategic consideration, power.
As Brian thinks of it, This means the ability to set up or remove barriers which, depending on what side you are on, can be a blessing or a curse.
This last phrase forms a common idiom.
It refers to something that can be bad or good, depending on the situation.
We also say something is both a blessing and a curse.
Listen to some more examples of this expression.
Fierce competition can be both a blessing and a curse.
Time constraints can be a blessing and a curse, both speeding things along and causing people to give up without reaching agreement.
Having a clear bottom line can be both a blessing or a curse.
It's often better to be fairly flexible in your approach.
What is the last point that the interviewer raises in the discussion before the interview draws to a close?
It's ethics or morality.
The interviewer poses the question, do we need to think of morally what is the right thing to do?
How does Brian respond?
If you had asked that question to me 15 years ago, I might have laughed.
But these days we think of ethics in broader terms, to include the environment, corporate social responsibility, shareholder rights, and all these areas have a lot of potential value for companies.
Brian's opinion is that ethics have become more and more important to business.
Examples he gives are the environment, corporate social responsibility, often referred to as CSR, and shareholder rights, which mainly refers to the right of company stockholders to information, but also to the right to dividends or profit share and the right to cast votes.
As Brian points out, all these moral issues are areas of great potential value to companies.
Let's explore all these expressions with example phrases.
Corporate social responsibility is an area of great potential value to companies these days, since it can help companies build brand image and loyalty.
More and more companies are recognizing the potential value of environmental protection.
There is good evidence that expanding and protecting shareholder rights actually can have a positive effect on stock price.
Now it's your turn to practice.
First, we'll review some of the verb collocations that we just learned.
In a moment, you'll hear a series of sentences with a verb blanked out or replaced with a beep.
Repeat the whole sentence, supplying the missing verb in the correct form.
For example, if you hear It is important to obstacles to reaching an agreement.
You will say It is important to remove obstacles to reaching an agreement.
Let's give it a try.
To reach an agreement, it's necessary to Blockage.
Answer To reach an agreement, it's necessary to overcome blockage.
Ideally, negotiation is a process of joint value.
Answer Ideally, negotiation is a process of maximizing joint value.
We have to try to outside the box on this.
We have to try to think outside the box on this.
Let's try to think of ways to... More value to customers.
Answer.
Let's try to think of ways to deliver more value to customers.
Next, we'll use the same method to review key vocabulary.
You'll hear another series of cues.
As before, one word is blanked out with a beep.
Repeat each sentence supplying the missing word.
Answer.
After many mergers, the promised synergies fail to materialize.
It's not all that clear to me where she is from.
Answer.
It's not all that clear to me where she is coming from.
Fierce competition can be both a and a curse.
Answer, fierce competition can be both a blessing and a curse.
More and more companies are recognizing the great value in environmental protection.
Answer more and more companies are recognizing the great potential value in environmental protection.
Corporate responsibility is an area of great concern to many companies these days.
Answer.
Corporate social responsibility is an area of great concern to many companies these days.
