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Showing posts with label lockout. Show all posts
Showing posts with label lockout. Show all posts

Tuesday, April 16, 2013

A Non-Negotiator's Guide to Negotiating


For most of my life, I was a terrible negotiator. I accepted lowball offers, I never demanded the raises I deserved, and I overpaid for everything. I knew that you needed to “drive a hard bargain” and “be willing to walk away from the table” if you wanted to get the best possible deal. I just never seemed to be able to do it, ever.
It reached the point that my husband actually forbid me from negotiating the price of a car, a home, or even a used toaster at the flea market. And while I wouldn’t usually take too kindly to being silenced, I had to admit that I saw his point. In a negotiation, I was the weakest link.
Two programs of research helped me to see what I was doing wrong – specifically, how I was thinking about negotiations the wrong way.

Epiphany #1

When people are about to enter a negotiation, they see it as either a threat or a challengeStudies show that people who see negotiation as a threat experience greater stress and make less advantageous deals. They behave more passively, and are less likely to use tough tactics aimed at gaining leverage, compared to the hard-ballers who feel negotiation to be more of a challenge than a threat.
This makes so much sense to me. My husband absolutely sees negotiating as a challenge. He looks forward to a good haggle. I do not. Reading about these studies, I realized that I have always seen negotiations as threatening, and just wanted them over with as quickly as possible, no matter what it cost me. Why prolong a stressful, threatening situation when you can throw in the towel and move on?
But why do I see negotiations as threats, and not challenges? To answer that, I needed…

Epiphany #2

There is more than one way to look at any goal. Some of us think about our goals as achievements or opportunities to advance – having what psychologists call a promotion focus. Others see their goals as opportunities to keep things running smoothly, to avoid loss, to do what you ought to do – this is called aprevention focus.
Promotion and prevention-focused people work differently to reach the same goal. When we are promotion-focused, we are creative, embrace risk, work quickly, and are fueled by optimism. When we are prevention-focused, we are more thorough and deliberate, more analytical, and better fueled by defensive pessimism (i.e., thinking things might go wrong if you don’t do something to prevent it.)
When it comes to negotiating, having a promotion focus will give you the clear upper-hand. The promotion-focused (like my husband) see negotiation as an opportunity to gain something, and studies show that this helps them to stay focused on their (ideal) price or pay targets. The prevention-minded (like myself) see negotiation as an opportunity to lose something – they worry too much about a negotiation failure or impasse, leaving them more susceptible to less advantageous agreements.
When it comes to getting what you want, it pays to focus on what you have to gain, rather than what you might lose, so that you can see it as a challenge (rather than a threat), and be better able keep your eyes on the prize.
Now, when I enter any negotiation, I make a deliberate effort to refocus myself beforehand. I stop and reflect on what I have to gain by getting a great deal, or by fighting for better compensation – the opportunities for happiness and growth they will afford me.
You wouldn’t believe the deal I got on our last toaster.

HEIDI GRANT HALVORSON

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Dr. Heidi Grant Halvorson, of Columbia’s Motivation Science Center, is an author and speaker.  In Succeed, she revealed surprising science-based strategies we can use to reach goals.  Her new book is Focus:  Using Different Ways of Seeing the World for Success and Influence.

Tuesday, March 26, 2013

To Improve Your Negotiation Skills, Learn from a Pro


To Improve Your Negotiation Skills, Learn from a Pro

EDITED BY KEITH LUTZ ON  / NEGOTIATION SKILLS
On February 16, in the midst of the National Basketball Association’s (NBA) All-Star weekend, members of the National Basketball Players Association (NBPA) unanimously voted to oust Billy Hunter as the union’s executive director.
“This is our union and we have taken it back,” National Basketball Players Association president Derek Fisher said, as reported by ESPN.com. Fisher said the union had been “divided, misled, [and] misinformed,” by its leader. Hunter hinted in a statement that he might contest his firing in court.
As the union’s leader since 1996, Hunter negotiated three collective bargaining agreements for NBA players, contributing to raising their average salaries to more than $5 million, the highest in team sports.
Divided Union
Conflicts between Fisher and Hunter divided union members during the 2011 NBA lockout. According to ESPN.com, “agents didn’t like [Hunter], questioning his bargaining strategies, and they were frustrated they didn’t have a bigger role in his union.”
After Hunter was accused of numerous indiscretions, Fisher pushed for a review of him. In its review, an independent law firm criticized Hunter for various conflicts of interests and poor decisions, such as hiring family members and friends and billing the NBPA for questionable travel and gift expenses. The review did not find Hunter guilty of any criminal activity, but three government investigations of Hunter are ongoing.
After the review was released, the members of the NBPA put Hunter on a leave of absence. About 35 NBA players attended the union committee’s annual meeting in February to discuss Hunter’s future.
Hunter’s Dismissal
NBA superstar LeBron James and longtime player Jerry Stackhouse reportedly took the lead in arguing for Hunter’s dismissal, according to the New York Times. James’s involvement was unusual: league superstars rarely get involved in the nitty gritty of labor negotiations and union management.
James “practically cross-examined the lawyers to prepared the report on Hunter,” the Times reports. And he and Stackhouse demanded explanations from committee members who previously had sided with Hunter rather than Fisher.
NBA players widely respect James for his business savvy and interpersonal skills. So it was not surprising, given James’s forceful arguments against Hunter, that the committee voted unanimously to release Hunter from his duties.
The situation speaks to the power of convincing influential parties to lead important negotiations. One well-respected and admired leader may be uniquely posited to wrap up a negotiation that took many behind-the-scenes players to engineer.

Wednesday, February 27, 2013

A recent study of selfishness in negotiation has interesting results


The Dictator Game: Justifying Selfishness in Negotiation

 / MEETING FACILITATION
In a recent study of selfishness in negotiation, Fei Song of York University and C. Brian Cadsby and Tristan Morris of the University of Guelph had participants play the “dictator game,” adapted from experimental economics literature. In this game, Party A is given a sum of money to allocate between himself and Party B. Because Party B has no power, Party A’s allocation goes into effect without debate. The dictator game captures the essence of negotiations in contexts with an extreme power differential.
Song and her colleagues compared the behavior of people who played the role of Party A on their own versus those who made the allocation decision as part of a two-person team. The authors also compared how males and females behaved in the role of Party A. Male participants were significantly more selfish when they represented a team than when they acted alone; female participants were less influenced by whether they represented only themselves or a two-person team.
The results for males were broadly consistent with past research by Professor Kristina A. Diekmann of the University of Utah, which showed that negotiators are more selfish when they can attribute selfish behavior to their group rather than to themselves. As David Messick of Northwestern University has observed, football coaches don’t justify the decision to take a new position by saying, “I want more money.” Rather, they tend to say, “I need to protect the financial interests of my family.” Obviously, the two statements mean more of less the same thing.
Song and her colleagues raise the possibility that female negotiators are less influenced by the social context of representing a group. These results shine new light on claiming behavior as it relates to gender and whether negotiators act alone or as part of a team. Specifically, when negotiators begin to reference their family, department, or team, they may be about to claim more than their fair share of the pie.

Tuesday, February 19, 2013

Dispute Resolution, NHL style


Dispute Resolution, NHL style

 / DISPUTE RESOLUTION
In the early hours of January 6, the National Hockey League (NHL) and the NHL Players’ Association (NHLPA) concluded a 16-hour mediation session by announcing they had reached agreement to end a 113-day lockout. The deal was finalized a week later, and the players returned to the ice for a shortened 2012-2013 season on January 19.
The dispute escalated as the two sides faced the task of negotiating a new collective-bargaining agreement beginning in July 2012. Citing a desire to bring player salaries in line with those of other professional U.S. sports leagues, the NHL opened with an aggressive proposal to reduce players’ percentage of hockey-related revenue from 57% to 43%, among other demands.
Offended by the proposal, the NHLPA held off a full month before delivering a counterproposal. Donald Fehr, the union’s lead negotiator, put forth an offer that separated player salaries from league revenue, slowing the growth of player salaries, and dividing revenues saved among financially struggling teams.
The team owners accused the union of ignoring their demand to greatly reduce player salaries. When the two sides failed to reach agreement by September 15, the expiration date of their existing contract, the league locked out the players and began cancelling games.
Weeks of cancelled game turn into months, and the season threatened to go the way of the NHL’s 2004 labor dispute, which led to the cancelation of the entire season.
The players eventually agreed to a 50-50 split of hockey-related revenue with the NHLPA. But the two sides remained at impasse on other issues, and a breakthrough didn’t come until federal mediator Scot L. Beckenbaugh entered the picture, according to USA Today.
When face-to-face negotiations got heated, Beckenbaugh separated the two sides and engaged in shuttle diplomacy, visiting each side in turn to identify issues where they were willing to be flexible.
The two sides reached agreement on a host of issues, but their deal ultimately hinged on the issue of player pensions. The team owners agreed to establish a pension plan similar to that of Major League Baseball players, with the teams making significant contributions to grow the plan. Previously, players were solely responsible for making voluntary contributions to the league’s retirement plan.
The agreement allowed NHL players, whose careers are often short, to concede on the short-term issue of salary in return for peace of mind regarding their long-term financial future. Winnipeg Jets defenseman Ron Hainsey, a key negotiator for the NHLPA, called the pension plan the “centerpiece” of the deal, reports USA Today.
The deal suggests a valuable way for business negotiators in all realms to break through thorny disputes: expand your focus by looking for tradeoffs that cut across time periods. Specifically, consider offering a long-term gain for the other side in return for a short-term concession that you value highly. By looking beyond the immediate future, you may be able to identify new sources of leverage—and resolve your dispute.