Gavin Kennedy - Strategic Negotiation

First published 2007 by Ashgate Publishing

Published 2016 by Routledge
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Copyright Gavin Kennedy 2007

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British Library Cataloguing in Publication Data
Kennedy, Gavin
Strategic negotiation : an opportunity for change
1. Negotiation in business
I. Title
658.4'52

Library of Congress Cataloging-in-Publication Data
Kennedy, Gavin.
Strategic negotiation : an opportunity for change / by Gavin Kennedy.
p. cm.
Includes index.
ISBN 978-0-566-08797-4
1. Negotiation in business. I. Title.
HD58.6.K48 2007
658.4'52-dc22

2007002015

ISBN 13: 978-0-566-08797-4 (hbk)
ISBN 13: 978-1-138-26328-4 (pbk)

For Felix and Ren

Strategic Negotiation Process Model

Force field diagram

Increasing distant sales

Locating wholly owned distant facilities to increase distant sales

Acquiring a company with wholly owned distant facilities to increase distant sales

negotiating range in a licence agreement

Licensees negotiating range

Negotiators entry and exit point

Entry strategy opening close to clients exit price

Force field diagram

Force field diagram: additional categories

Perception of power/expectations relationship

Expanded force field

Expanded force field applied to a Virgo negotiable issue

Expanded force field applied to a banks negotiation with a corporate borrower

Ahmeds force field solution

Power balance ratio

Expected average outcome: pure compromise vote, no bargaining

Stability analysis for the police complaints issue

Negotiation landscape for the reform of complaints procedures

Salience relationship analysis: ACPOS v Executive

Strategic Negotiation Process Model

Selected factors affecting reward design

Correlations between elements and objectives in a pay package

Bid/no-bid decision

Power balance ratio for warranty condition

Power balance ratios for proposals for several major issues

Issue: independent complaints procedure

Stakeholder classification (from ACPOSs perspective)

Commercial imperatives

Operational imperatives

Impact of imperatives on HR strategies

Impact of imperatives on financial strategies

Derivation of the Negotiation Agenda topics

Commercial imperatives

Operational imperatives

Impact of imperatives on HR

Derivation of the Negotiation Agenda topics

Impact of imperatives on financial strategies

Negotiation Agenda for a PFI contract

No matter how skilled at negotiation you might become, if you are pursuing inappropriate strategies, your negotiation skills wont pull rabbits out of a hat (like magicians who amaze children); conversely if you have brilliant and appropriate strategies, but do not have the requisite negotiation skills to implement them, you will not succeed unless you have the good luck to choose negotiating partners with even fewer skills than your own. Relying on luck is the antithesis of strategy; if you have poor strategies and poor negotiating skills, you will reap what you sow.

Interest in negotiation strategy follows naturally from interest in the process of negotiation. Teaching negotiation skills to managers soon raises questions about how and why they are pursuing this or that objective for which they wish to deploy their improved negotiation skills. If not clearly separated, arguments about appropriate skills easily become confused with implicit differences in strategic objectives.

Strategic Negotiation is different from my other books on negotiation (such as Kennedy on Negotiation, Gower, 1998 and (with Florence Kennedy) Kennedys Simulations for Negotiation Trainers, 3rd Edition, Gower, 2007); it is a step up from introducing negotiators to negotiating skills to introducing them to the different task of preparing them to apply their skills to serve their strategic purposes.

Strategic Negotiation is for practitioners and is based on an elective written for postgraduate MSc management courses at Edinburgh Business School (Strategic Negotiation, EBS, 2005). Its focus is on the generation and implementation of negotiation strategy in business and public organizations and is based on many years of practical experience.

Teaching strategic planning effectively is extremely difficult. Strategy is not a series of axioms to be rote learned; it is about the application of thoughtful analysis to real world problems, with the added complication that there is vast room for error both in the selection of the tools of analysis and in the identification of the real world problem. Strategic Negotiation offers advice in the implementation phase of strategy. It is organized around case examples that demonstrate the application of its Process Model to the real world. The cases are drawn largely from my consultancy work in various industries and business situations, without any pretence to comprehensive coverage; and I also draw upon the work of colleagues who have demonstrated competence in this field. To cover all, or even most, potential applications of negotiation strategy would produce a multi-volume text, which is neither appropriate nor necessary for most purposes. The cases illustrate the application of the core concepts and provide a framework for understanding how the strategic negotiation process can be applied to general situations.

It is important in Strategic Negotiation to remember that you are approaching fairly generic business situations from the functional point of view of a negotiator and not that of other professions such as a lawyer, accountant, finance specialist, marketeer, production engineer, human resource management specialist, or any other of the many functions with which you may be concerned in your organization. It is true that you will touch on many of these functions in this book but you will not, so to speak, be touched by any one of them alone. The negotiation strategist approaches business problems from a different angle to those working exclusively in other functions. It is often a question of Which of my objectives are possible in this situation and how will they be achieved?

As Chester Karrass puts it, though for a somewhat different purpose: You get what you negotiate, not what you deserve, or, as I heard a hard-boiled streetwise person, experienced in the ways of the world, put it: Sometimes you get what you want, sometimes you get what you need, and other times you get what you get. Negotiation is about trying to do better than just getting what you get. Negotiation strategy is about creating the conditions that enable you to get (closer) to what you want. Anybody who tells you that negotiation is easy is obviously the kind of person who makes do with what can be got, which is not quite the same.