3d Negotiation

 3d Arbitration Essay


Knowledgeable negotiators not merely play their particular cards well, they design the game in their favor even before they reach the table.

Playing the Whole Game


simply by David A. Lax and James T. Sebenius

Reprint R0311D

Knowledgeable negotiators not simply play all their cards very well, they design and style the game in their favor could they reach the desk.

3-D Arbitration

by David A. Lax and Wayne K. Sebenius


What stands between you and the you actually want? Within our analysis of hundreds of talks, we've discovered barriers in three contrasting dimensions: Is tactics; the second is deal style; and the third is installation. Each dimension is crucial, but many negotiators and far of the discussion literature fixate on only the first two. For instance, many negotiation catalogs focus on just how executives may master tactics—interactions at the bargaining table. The most popular barriers to yes from this dimension include a lack of trust between parties, poor communication, and negotiators' " hardball” attitudes. Therefore the books offer useful tips on reading gestures, adapting your look to the bargaining situation, listening actively, framework your circumstance persuasively, selecting offers and counteroffers, handling deadlines, countering dirty tricks, avoiding cross-cultural gaffes, and so on. The second aspect, that of deal design—or negotiators' ability to draw up a deal on the table that creates long lasting value—also gets attention. Every time a deal would not offer

enough value to all or any sides, or perhaps when their structure won't allow for accomplishment, effective 2-D negotiators work to analyze underlying options for economic and noneconomic worth and then art agreements which could unlock that value for the parties. Does some kind of trade between sides make sense and, if so , on what terms? When it is00 a taking place agreement, perhaps with eventualities and risk-sharing provisions? A deal with a even more creative strategy and structure? One that meets ego demands as well as monetary ones? Beyond the social and deal design issues executives encounter in 1-D and 2-D negotiations rest the 3D obstacles—flaws inside the negotiating setup itself. Common problems from this often-neglected third dimension incorporate negotiating together with the wrong functions or about the wrong pair of issues, including parties in the wrong series or in the wrong period, as well as contrapuesto or unattractive no-deal alternatives. 3-D negotiators, however , reshape the range and pattern of the game itself to offer the desired result. Acting entrepre-

harvard business review • november 2003

page one particular

3-D Negotiation

neurially, away from the table, they will ensure that the right parties are approached in the right in an attempt to deal with the right issues, by right means, at the right time, under the proper set of expectations, and facing the right nodeal options. Previous U. S. trade agent Charlene Barshefsky, who has negotiated with a huge selection of companies, government authorities, and non-governmental organizations to spearhead deals on goods, services, and intellectual home, characterizes good 3-D talks this way: " Tactics on the table are only the cleanup work. Many people blunder tactics intended for the root substance plus the relentless efforts away from the desk that are had to set up the most promising conceivable situation when you face your equal. When you know what you need and you have put a broader approach in place, after that negotiating strategies will circulation. ”1

3D Negotiation used

Even managers who have superior sociable skills in negotiations can easily fail when the barriers to agreement along with the 3-D realm. Throughout the 1960s, Kennecott Copper's longterm, low-royalty deal governing its huge Este Teniente my very own in Chile was at risky of renegotiation; the political situation in Chile got changed considerably since the deal was formerly drawn up, rendering...