R2. Creating value in negotiation - Chapter 2.pdf

Sides interestso the situation improved once the

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side's interestso The situation improved once the execu- tive shared more information regarding his interests and communi- cated a willingness to give the pharmaceutical company something in returno PSSs not only facilitate logrolling, they can also help to iden- tify and add issues that were not even part of the initial negotiation; in the aboye example, the parties had never discussed a right of first re- fusal in the formal negotiations that preceded the PSSo Ir is easy to see how a PSS might have improved the outcome in the Momsocom negotiationo Had the parties continued to negotiate and share information after the initial agreement was signed, they might have discovered the value of shifting to eight runs, making a deal on Juniors) and/or including a contingency clause that leveraged different ratings expectationso Despite these potential benefits, post-setdement setdements are a . severely underutilized too1. Many people have never heard ofPSS, oth- ers are wary of the risks associated with renegotiating, others doubt that a PSS can really be ofbenefit, and still others do not know how to CREATING VALUE IN NEGOTlATION 81 propose a PSSo We have addressed the first three issueso Now let's con- sider how you might pro pose a PSS: Step 1: Start by acknowledging the progress that was already made in reaching the initial agreemento Step 2: Suggest that there are aspects of the deal that you wish could be improved; acknowledge that they probably feel similarlyo Step 3: Suggest thatyou may have already conceded everything that you can afford, but that you are willing to try to think "outside the box" if that will help the other partyo Step 4: State that it is important for both of you to reali;z;e that you are not looking for a new agreement, but for an improved agreement that both parties prefer to the current agreemento As an example, you might say the following: "Congratulations! 1 think that our hard work has really paid off in a great dealo We're probably both ready to call it a dayo I'm wondering, though, whether you might be open to an ideao Though we're both satisfied with the agreement, there are in- evitably aspects of the deal that 1 wish could have been better for me, and you probably feel the same way about other aspectso Wh,at if we spent a few more minutes talking about potential improvements ro the deal that would make both of us better off? Maybe we'v~ already exhausted those possibilities-but it might be a good idea ro see if there are anY stones left un- turnedo Of course, if we can't find ways to make both parties happier, we'll be even more confident that our signed agree- ment is the right one for everyoneo Ifyou're up for it, let's give it a try 000" Keep in mind that it is not necessary for you to have this conversa- tion immediately upon signing the initial dealo You might want to sleep on ito You might even wait a week or a month before revisiting the dealo The key, however, is to realize that your negotiation
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