Negotiation

BOHAY SYNDICATE

Credit to Prof. Dr. Ir. Utomo Sarjono Putro, M.Eng (Dean of SBM ITB) Surabaya, 20 April 2021
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Eko Munadi Herry Subagiyo Prasetyo Bondan Winarno

BOHAY
 W h a t is N e g o t i a t i o n ?

01 02

N e g o t i a t i o n is to
get s o m e th in g
f r o m others, b u t
usually, y o u h a v e to RATIONAL DISTRIBUTIVE
s h a re s o m e th in g
too to t h e others.

BOHAY 3
 H o w D o W e Deal with Conflict?

S m o o t h i n g /A v o i d a n c e Negotiations
2 3
Gloss over/play down Win-lose
differences; let problems pass Win-win

Forcing Assisted Negotiation

1 4 Third-party involvement to aid
The use of power and position
(formal, informal) resolution

BOHAY 4
T h e G o l d e n R u l e of N e g o t i a t i o n
Negotiation

People will not

n e g o t i a te w i t h y o u
u n l e s s t h e y b e li eve
you can H E L P Help
them or HURT
them.

BOHAY 5
 N e g o t i a t i o n Activities

Daily Office Market Home Etc

Activities Activities Activities Activities

1 2 3 4 5

BOHAY 6
 H i t c h h i k e r C a s e (1)

M o st p a s s i n g m o t o r i s t T h e r e is n o i n c e n t i v e
Yo u w a l k a l o n g t h e wo n ’ t pick up a for t h e o t h e r s to
street a n d wish h i t c h h i ke r. n e g o t i a t e w i t h yo u .
t h a t s o m e o n e will
4
stop a n d give a 2
ride b e c a u s e you
h a v e s u f fe r e d f r o m
t h e h e at .

Yo u a r e i n w e a k p o s i t i o n :
- Yo u c a n ’ t h e l p t h e m
- Yo u c a n ’ t h u r t t h e m
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 H i t c h h i k e r C a s e (2)

o Now im a g in e th at
s o meone does stop and
a s k y o u for d i r e c t i o n s .
o I n o n e s i d e y o u n e e d a lift.
o I n o t h e r s i d e h e /s h e n e e d
g u i d a n c e / i n fo r m a t i o n .
o Yo u m a y h e l p t h e m to
provide the right direction
N E G O T I AT I O N m a y h a p p e n

BOHAY 8
 Stake Holders’ Power/Interest Grid?
I NT E R E S T

Keep Infor med SU B JE CT S P L AYE R S

CROW D CONTEXT S E T T E R S

POW E R

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 P o s i t i o n a n d T h r e at

D o .... t h e n I will d o .... If not, I will d o ....

P o s itio n T h re a t

BOHAY 10
 Major Traps of N e g o t i a t i o n

Leaving money on the table Walking away from the table

(lose-lose negotiation) (hubris)
4
Settling for terms that are worse
Settling for too little
than your current situation
(winner’s curse)
(agreement bias)

BOHAY 11
Winner C u r s e

When a proposal of a negotiator i s easily

agreed by his/her partner, then there i s
high possibility that the negotiator
demands too low

Why does this happen? →

Incomplete information

Ostricth Effect
BOHAY 12
 Confidence vs Courteousness
4

3
The Leader
2
A Leader listen to and
understands their
The Tank opponent, assesses
situations well and
This is common steers the negotiations
1 behavior model, The process.
The Mouse Confidence person,
but not a
People who value
Courteousness one
Courteousness but
Teenager who lack
People who lack Confidence
Confidence
Credit : - The Kremlin School of Negotiation by Igor Ryzov
- IG @eko_munadi

BOHAY
P a t h of I k i g a i

Credit : - Ikigai by Hector Gracia & F Miiralles

- IG @eko_munadi

BOHAY 14
N e g o t i a t o r Movies
S T E V E J O B S Movie :

N I G H T S C R AW L E R Movie :

E R I N B R O C KO V I C H Movie :

BOHAY 15
Distributive Approach
Solution for Winner’s Curse, Hubris, and
Agreement Bias

Bohay 16
 Distributive Negotiation –
Claiming value

In thi s type of negotiation

one party competes with 1
another for a “fixed s um of
value”

A single-issue negotiation 2
i s purely distributive

One party’s gain i s other 3

party’s loss

BOHAY 17
 BATNA, R P a n d A P

B A T NA Reservation Price Aspiration Price

Aspiration = what you hope for (happy to say yes to)

Reservation = what you’d settle for (minimum you’d

willing to say yes to)

BA T NA = what you get if you don’t settle

BOHAY 18
BATNA: B e s t Alternatif T o a N e gotiate d A g r e e m e n t

In the absence of a deal, it i s the preferred course

of action you should take

Fallback action; making agreement or go to court

Knowing your BA TNA allows you to understand

how much it will cost you if you fail to come to an
agreement

BOHAY 19
WHY B A T N A ?

Your BA TNA allows you to determine

the point at which you can say no to an
unfavorable proposal

If your BA TNA i s strong, you can

negotiate more favorable terms

In contrast, a weak or unknown BATNA

means you don’t have much bargaining
power

BOHAY 20
 How to Use BATNA to S t r e n g t h e n Y o u r
Negotiating Position

You can im pr ove

your BATNA You can weaken the
other side’s BATNA

BOHAY 21
 What does it Mean to Be an
”Effective Ne g o t iat o r”?

Individual Level
• Getting valued resources
(money, people, projects) Company Level
• Maintaining & building
relationships • Profitable deal making
• Enhancing your reputation (effective sales force)
• People trust • Getting positive (rather
• Enjoying peace of mind than negative) press
• Enhancing reputation of
company
• Building the brand

BOHAY 22
Negotiation S ki l ls as
Core Leadership Competency
Key communication & influence tool for
in ter dependent r elations hips (in & outs ide
the company)

Most people not very god at negotiation

(e.g over 80% of corporate executives
and CEOs leave money on the table)

People don’t realize this

Our challenge i s to dramatically

improve ability to :
- Create value
- Claim value
- Build trust

Research basis in economics and

psychology
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Thank you
BOHAY