implementing-strategies-in-extreme-negotiations Essay example

4427 Words Apr 28th, 2014 18 Pages
Ideas in Practice

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HBR.ORG To read the full article, go to hbr.org/2010/11/extreme-negotiations/ar/1. Implementing Strategies in Extreme Negotiations
A conversation with Jeff Weiss and Jonathan Hughes

SPOTlighT On leadershIp lessOns frOM the MIlItary

Spotlight

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ARTWORK Stacy Pearsall, Lead the Way
March 9, 2007, Old Baqubah, Iraq

Extreme Negotiations
What U.S. soldiers in Afghanistan have learned about the art of managing high-risk, highstakes situations by Jeff Weiss, Aram Donigian, and Jonathan Hughes

November 2010 harvard Business review 67

In November 2010, Jeff Weiss and Jonathan Hughes, along with
Major Aram Donigian, published an article in HBR called “Extreme
Negotiations.” It
…show more content…
They hit you with a large, unexpected price increase. Most people react by assuming the worst: They’re trying to extort as much money from us as they can. With this assumption, you are likely to act aggressively, rather than engaging in a more productive form of negotiation.
Instead, before responding to the supplier, you might first brainstorm a number of possible motivations for the price increase. Did the supplier’s costs go up significantly? Are they trying to increase revenue to fund a new R&D or growth initiative? Do they actually want to exit this business? Now you can decide different ways to test these hypotheses. A few phone calls and some market research might serve to validate or invalidate a hy-

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pothesis up front. And then, you will probably need to ask them some questions.
Too often, under conditions of stress, we ask questions in an aggressive or disrespectful manner, which makes it less likely the other side will be forthcoming.
Instead of saying: “How the hell could you try to take advantage of us like this?” you might say: “We value the long-term relationship our companies have had, and it has always seemed you did as well. The recent price increase you’ve demanded seemed to come out of the blue, without warning or explanation. We’d appreciate hearing more about what’s behind it.”
The trick here is to ask questions in a way that makes it easier for the other side to answer, and awkward not to.
One other

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