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Offers deal-makers techniques to access mutually beneficial solutions that cannot make their way to the bargaining table without a cooperative strategy that enables the parties to together with mutual benefit and success.

Inhaltsverzeichnis

Frontmatter

The 3-Legged Stool: Trust, Behavioral Economics, and Negotiation Competency

Frontmatter

Chapter 1. A New Paradigm for Commercial Relationships

Abstract
You enter the conference room and take your seat across the table from a guy who has something you want. It could be cash, or services, or widgets. You have an expectation in your mind of the probable outcome of your negotiation with him based on your past experiences with similar people. Before you even begin the bargaining, you are pretty clear as to what you will leave the table with, give or take a percentage point or two.
Keld Jensen

Chapter 2. Behavioral Economics in Deal-making

Abstract
In commercial transactions, optimized outcomes are measured financially—more gross revenue, increased profit margins, greater percentage of market share, and so forth. In personal relations, optimized outcomes are measured in better understanding, less conflict, and more collaboration. Regardless of the kind of transaction in which you are involved—as a CEO, a procurement officer, a sales director, or a dad or mom—the optimized outcomes are achieved atop a three-legged stool (Figure 2.1). The legs of that stool are:
  • Trust
  • Negotiation competency
  • Behavioral economics
Keld Jensen

Chapter 3. The Trust Factor: The Keystone of NegoEconomics™

Abstract
This past summer, I was dining at an outdoor restaurant in Copenhagen. When I ordered my food, the waiter told me that I had to pay in advance because they had experienced a growing number of guests who left without paying the bill. I was curious and asked to speak with the owner. He came out and confirmed the issue about paying the bill. I then asked him, “If you do not trust me to pay the bill, why should I trust that I will receive my food after I have paid?” While I did stay for the meal, I will not be returning to a restaurant that does not trust me. Other guests will feel the same, which will lower the restaurant’s Tru$t Currency.
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Defining the Rules of the Games, Articulating a Negotiation Strategy, and Making the Pie Bigger

Frontmatter

Chapter 4. Rules of the Game: Defining and Setting Expectations

Abstract
The first item of business in any negotiation is for the parties to decide how they are going to negotiate. The Rules of the Game must be articulated and agreed to before any conversation takes places regarding the merits of the matter to be decided or the deal to be made. Who are the teams? What are the rules of play and the conditions for termination? This process can be time consuming. In fact, it can sometimes take more time than the actual negotiation, but establishing the ground rules prior to commencement of the bargaining saves a lot of time down the road, avoids misunderstandings, and enhances the prospects for cooperation.
Keld Jensen

Chapter 5. Preparation and Analysis Prior to Bargaining: The First 5 Phases of the Negotiation Process

Abstract
Negotiation is a process that requires both time and experience to be truly effective. Almost no one is a born negotiator. Since each negotiation involves difference circumstances and each counterpart is unique, the more you prepare, the better the chances for optimized outcomes for everyone at the table. The important thing is to be able to recognize, at any given point, where you are in the process and be able to assess your objectives and make a proper judgment call about your next step. This breakdown of the phases is a tool to help you think strategically about the process so that you are working toward the mutual gains that lie inherent in the transaction. Breaking the process down into phases can help anyone experience a better outcome. There are ten phases to this process. They are not necessarily linear. Each phase relies on the others.
Keld Jensen

Chapter 6. Creating a Culture of Trust and Openness

Abstract
An arrangement that is exclusively based on one party’s victory over the other is barbaric and can never be humanized. It can only be maintained as long as the party with superior bargaining equity can force the opponent into submission, and sooner or later it will collapse. The alternative is cooperation and SMARTnership. However, the negotiator who does not understand the theoretical reasoning behind the ideas of SMARTnership and NegoEconomics is not motivated to be open and assume the risks inherent in an open negotiation climate. In order to cooperate, both parties must buy into the underlying theory of cooperation.
Keld Jensen

Chapter 7. Where the “Bigger” Comes from: Expanding the Range of NegoEconomic Potential

Abstract
The room for negotiation can be defined as the difference between the highest price that a buyer is willing to pay and the lowest price to which a supplier will come down. For a deal to be struck, there must be positive room for negotiation. The buyer must be willing to pay a price above the supplier’s threshold of pain.
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Dividing the Bigger Pie, Making the Deal, and Defining the Future

Frontmatter

Chapter 8. Style Choices

Abstract
Negotiators have style choices that reflect their attitude and govern their behavior during a negotiation. These style choices can be used with any of the strategic choices, although some are less compatible, such as combat (the style choice) in conjunction with SMARTnership (the strategic choice). Cooperation is generally more compatible with SMARTnership, while combat is more compatible with zero-sum.
Keld Jensen

Chapter 9. Sealing the Deal: The Second 5 Phases of the Negotiation Process

Abstract
This chapter examines the second 5 phases of the negotiation process. In this half of the process, the deal is made, performance is undertaken, and the parties either agree to continue to work together or go their separate ways.
Keld Jensen

Chapter 10. How Big Is My Piece? How the NegoEconomic Value Is to Be Divided

Abstract
At the end of the negotiation, when the NegoEconomic value has been identified and the principles and solutions of the agreement have been given clear contours, the delegates could move to a tougher type of negotiation in which the parties test the leverage of each other (Figure 10.1). An effective negotiator uses cooperation to build relationships and trust, as well as to create asymmetric value. Zero-sum games are sometimes used to negotiate about the division of the asymmetric value that has been created, if the Rules of the Game do not clearly describe how to split that value.
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Chapter 11. Dealing with Stress, Threats, and Bluffing

Abstract
My ancestors, the Vikings, were a wild bunch and once ruled most of Northern Europe. Imagine a short-legged, stubby-fingered little Viking running in the forest, with a wild beard flying and metal helmet precariously balanced on his head. Suddenly he meets a rival Viking from an enemy tribe. My ancestors only had two ways of reacting. Run away or draw the sword and fight. The modern negotiator is vulnerable to the same two primitive behaviors — fight or flight.
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Chapter 12. Make the Pie Bigger and Nobody Loses

Abstract
The following case study brings together all the concepts that have been discussed in this book in a single real-world example. It illustrates how these ideas are used in combination and in phases to achieve optimized outcomes for negotiators who are brave enough to venture into the land of SMARTnership and NegoEconomics. The mutual gains solutions that were achieved in this case were enabled by the trust factor.
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Conclusion

Conclusion

Restoring Trust to the Marketplace: It All Starts with You
Abstract
I have the privilege of meeting thousands of interesting, exciting, intelligent people every year around the world. Sometimes after one of my presentations, one of these people will approach me and say something like: I agree with your philosophy and thinking about the creation of Nego Economics, openness, and trust. But how do I change my counterpart so that they will work with me in a spirit of cooperation?
Keld Jensen

Backmatter

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