value creation

The result of cooperative problem-solving skills in a negotiation that uncover joint gains for both parties. Value creation is an aspect of “win-win” or “non-zero-sum” negotiation, in which both parties benefit from the agreement. (David A. Lax and James K. Sebenius, 3-D Negotiation [Harvard Business School Press, 2006], 17). See Also: Negotiation Skills: Four Steps for Changing Negotiation Practices in Your Organization, When Lose-Lose Wins, Conflict Management – Anger, the Good and the Bad.

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The following items are tagged value creation.

Daily

Courses and Training

Daily

Courses and Training

Negotiation and Leadership: Dealing with Difficult People and Problems

Posted by & filed under Executive Education Seminars (3 Day Courses), executive training.

It’s often said that great leaders are great negotiators. But how does one become an effective negotiator? On-the-job experience certainly plays a role, but for most executives, taking their negotiation skills to the next level requires outside training. Designed to accelerate your negotiation capabilities, Negotiation and Leadership examines core decision-making challenges, analyzes complex negotiation scenarios, … Read More 

Daily

Dealmaking: Beyond Collusion – How to Include Outsiders in Your Deal in Business Negotiations

Posted by & filed under Conflict Resolution.

The issue of bidder collusion raises a larger question for negotiators: What ethical responsibility do we have to those who aren’t seated at the table with us? Harvard Business School professor Max H. Bazerman uses the term “parasitic value creation” to describe the common tendency of negotiators to focus so narrowly on identifying benefits for those … Read More 

When Lose-Lose Wins

Posted by & filed under Mediation.

Does negotiation research promote the creation of joint gain at the expense of relationship building? Jared R. Curhan, Margaret A. Neale, and Lee D. Ross suggest the field is guilty as charged. To illustrate, the researchers apply author O. Henry’s classic tale “The Gift of the Magi” to negotiation. The short story describes a poor but … Read More 

Conflict Management: Anger – The Good and the Bad

Posted by & filed under Conflict Resolution.

Most negotiations are “mixed motive” in structure, requiring us both to compete to claim value and to cooperate to create value. The ability to move back and forth between these two goals is a critical – and difficult – skill to master. How do emotions affect value creation and claiming? Researchers Alice Isen and Peter Carnevale found that … Read More 

Dealing with Difficult People: The Right Way to Regulate Emotion

Posted by & filed under Dispute Resolution.

Emotional flooding – when strong, specific, and often negative feelings overwhelm us – poses obvious hazards to negotiators, who need to be able to think clearly when faced with the complex, strategically demanding task of creating and claiming value. For this reason, emotional regulation can be an essential component of negotiation. But different types of regulation create … Read More 

Emotional Expression in Negotiation

Posted by & filed under Negotiation Skills.

Most of the existing research on affect in negotiation has focused on emotional experience rather than on emotional expression. Yet studies have shown that emotional expression can occur independently from feelings, making expression worthy of investigation. Marwan Sinaceur and Larissa Tiedens of Stanford University found that negotiators made more concessions when facing counterparts who expressed (but did … Read More 

Negotiation Training: Negotiating in Three Dimensions

Posted by & filed under Negotiation Training.

No matter how many right moves you make at the table – however skillfully you read body language, frame arguments, make offers and counteroffers – doing so at the wrong table can undercut your results. Not only should you negotiate right, you should do the right negotiation. Sometimes this means looking with new eyes for a … Read More 

Matching Rights in Business Negotiations: Advice for the Grantor – Use Matching Rights to Bridge the Gap

Posted by & filed under Business Negotiations.

In negotiation, including a matching right in an agreement can be a classic win-win move. Suppose you’re a landlord negotiating with a prospective tenant. You want to maintain the ability to sell the apartment to someone else in the future, while your prospective tenant wants a commitment to rent the apartment for as long as … Read More 

Enhancing Your Deal in Business Negotiations

Posted by & filed under Dealmaking.

Not all contracts are created equal. Some maximize joint through creative trades, while others are barely satisfactory. Strategic wariness causes many people to leave untapped value on the bargaining table. Of course, agreements based on incomplete and distorted information aren’t likely to be efficient. … Read More 

Keeping the Game Out of Court

Posted by & filed under Business Negotiations.

Sometimes those on opposite sides of a bitter dispute can achieve great gains – if only they can spot the ways in which they are similar. In 2001, the Metropolitan Intercollegiate Basketball Association (MIBA), an organization of five New York-area colleges best known for staging college basketball’s National Invitation Tournament, filed a lawsuit against the National … Read More 

A Value-Creating Condition Thwarted

Posted by & filed under Business Negotiations.

In late 1999, with its stock in free fall, NCS HealthCare, a provider of pharmacy services to long-term care facilities, began “exploring strategic alternatives” – code in the mergers and acquisitions world that NCS’s board wanted to put the company up for sale. In 2001, Omnicare, a larger provider in the same general industry, offered to … Read More 

Water Diplomacy: Understanding Uncertainty, Risk, and Opportunity in Water Management

Posted by & filed under Dispute Resolution.

When countries face contending water claims, one of the biggest obstacles to reaching an agreement is uncertainty. Specifically, there are three types of uncertainty: uncertainty of information, uncertainty of action, and uncertainty of perception. In part 2 of this 5 part series, Program on Negotiation faculty member Lawrence Susskind explains the uncertainties facing negotiators trying … Read More 

Try Skills-Based Strategies First

Posted by & filed under Negotiation Skills.

Before launching a workaround, run through this list of skills-based strategies adopted from Getting Past No: Negotiating Your Way from Confrontation to Cooperation by William Ury (Bantam, 1993). Only attempt a workaround if you’ve tried them all without success: … Read More 

Do You Need a Broker?

Posted by & filed under Conflict Resolution.

According to conventional wisdom, you should always hire a real estate agent when you’re trying to buy a house. The broker’s market expertise will help you decide what moves to make and what price to pay. Because the seller usually has his own broker, the motto “fight fire with fire” applies as well. Perhaps most … Read More 

Do Attitudes Influence Results?

Posted by & filed under Conflict Resolution.

Many people consider negotiations to be stressful and threatening. Others view them as challenges to be overcome. Do these different attitudes influence the outcomes that people reach? New research by professors Kathleen M. O’Connor of Cornell University and Josh A. Arnold of California State University sheds light on this important question. … Read More 

When More is Less

Posted by & filed under Negotiation Skills.

It’s an article of faith in negotiation that expanding the pie of value enhances the parties’ welfare. When there’s only one issue on the bargaining table, the size of the pie is fixed. If one party gets more, the other party gets less. But when multiple issues exist, negotiators can expand the size of the … Read More 

Accounting for Outsiders in Your Negotiations

Posted by & filed under Negotiation Skills.

If you’re in the middle of talks that seem to be going well, here’s a warning: consider the impact of the agreement on those who aren’t at the table, or suffer the consequences. That’s a lesson that Apple and some of the largest U.S. book publishers are currently learning the hard way. On April 12, the … Read More 

In Negotiation, Patience Wins the Jackpot

Posted by & filed under Dispute Resolution.

On April 9, the hearts of internet entrepreneurs everywhere must have skipped a beat at the news that Facebook was paying $1 billion in cash and stock to buy Instagram, a San Francisco-based start-up. Less than two years old, Instagram offers mobile apps that allow users to add effects to their smartphone photos and share them … Read More 

Fight or Flight

Posted by & filed under Negotiation Skills.

Many things factor into whether you choose “fight or flight” when faced with a difficult situation in life. Whether it is a disagreeable coworker or a border struggle between nations, the decisions made at the onset of conflict often determine the tenor of the entire proceeding. Along with information and a good-faith desire for collaboration, knowing … Read More 

Resolving conflict, creating value

Posted by & filed under Negotiation Skills.

Significant business disputes typically involve more than one issue—including disputes that appear to be “just about the money.” Who pays and when? In what form is payment made, with what level of confidentiality, and with what effect on future disputes? In the heat of the moment, disputants too often focus on one conspicuous issue (such as … Read More 

Bringing outsiders to the negotiating table

Posted by & filed under Business Negotiations, Daily.

Adapted from “Why Your Negotiating Behavior May Be Ethically Challenged—and How to Fix It,” first published in the Negotiation newsletter, March 2008. In the late 1990s, pharmaceutical company Schering-Plough filed a patent-infringement lawsuit to prevent rival Upsher-Smith from introducing a generic version of one of Schering-Plough’s products. The two companies reached an out-of-court settlement: Upsher-Smith … Read More 

Negotiation: Challenge or threat?

Posted by & filed under Daily, Negotiation Skills.

Adapted from “Do Attitudes Influence Results?” first published in the Negotiation newsletter, January 2007. Many people consider negotiations to be stressful and threatening. Others view them as challenges that can be overcome. Do these different attitudes influence the outcomes that people reach? Research by professors Kathleen O’Connor of Cornell University and Josh Arnold of California State … Read More 

Why it pays to build relationships

Posted by & filed under Business Negotiations, Daily.

Adapted from “When Lose-Lose Wins,” first published in the Negotiation newsletter, August 2004. Does negotiation research promote the creation of joint gain at the expense of relationship building? Researchers Jared R. Curhan, Margaret A. Neale, and Lee D. Ross suggest that the field is guilty as charged. To illustrate, the team apply author O. Henry’s classic tale … Read More 

Clearinghouse Customers Speak!

Posted by & filed under Daily, Negotiation Skills, Pedagogy at the Program on Negotiation (Pedagogy @ PON).

In an effort to understand more about how the PON Clearinghouse does and doesn’t meet its customers’ needs, we interviewed a number of long-time Clearinghouse clients. We asked what teaching materials they found most valuable and for what reasons. We also asked how they found out about the Clearinghouse and what additional teaching and training … Read More 

When Negotiators Act Like Parasites

Posted by & filed under Negotiation Skills.

Adapted from “Creating Values, Weighing Values,” by Max H. Bazerman (professor, Harvard Business School), first published in the Negotiation newsletter. In April 2001, the FTC filed a complaint accusing pharmaceutical companies Schering-Plough and Upsher-Smith of restricting trade. Upsher-Smith had been preparing to introduce a generic pharmaceutical product that would threaten a near monopoly held by Schering-Plough. … Read More 

The Angry Negotiator

Posted by & filed under Daily, Negotiation Skills.

Adapted from “Emotional Strategy” by Margaret A. Neale (professor, Stanford University), first published in the Negotiation newsletter. Most negotiations require us both to compete to claim value and to cooperate to create value. The ability to move back and forth between these two goals is a critical—and difficult—skill. How do emotions affect value creation and claiming? Researchers … Read More 

Too Tough Talk?

Posted by & filed under Daily, Negotiation Skills.

Adapted from “Break Through the Tough Talk,” by Kristina A. Diekmann (University of Utah) and Ann E. Tenbrunsel (Notre Dame University), first published in the Negotiation newsletter. You might think that cultivating a reputation as a tough bargainer might be the best way to cope with a competitive opponent. But this isn’t necessarily the best strategy. … Read More 

Accentuate the Positive

Posted by & filed under Business Negotiations, Daily.

Adapted from “Promote the Positive or Minimize the Negative?” First published in the Negotiation newsletter. Tory Higgins, a social psychologist, and his colleagues Lorraine Chen Idson and Nira Liberman have introduced the concept of regulatory focus. According to Higgins, when making decisions, people focus on either promotion or prevention. Those focused on promotion are primarily concerned … Read More 

Securities fraud plea bargain

Posted by & filed under Daily, Negotiation Skills.

The Clearinghouse at PON offers hundreds of role simulations, from two-party, single-issue negotiations to complex multi-party exercises. United States v. Dunlop is a four-person, three-issue, two-round exercise between U.S. prosecutors, an executive charged with securities fraud, and defense counsel over the terms of a possible plea bargain; attorney-client interviews are followed by … Read More 

Teams across cultures

Posted by & filed under Daily, International Negotiation.

Adapted from “Team Negotiating: Strength in Numbers?”, first published in the Negotiation newsletter. According to conventional wisdom, when it comes to negotiation, there’s strength in numbers. Indeed, several experimental studies have supported the notion that you should bring at least one other person from your organization to the bargaining table if you can. On average, this … Read More 

When It Pays to Delay

Posted by & filed under Business Negotiations.

Kathy, a serial entrepreneur, was negotiating the acquisition of a boutique software-development firm when a dispute arose regarding the valuation of one of the software firm’s assets. Specifically, the firm owned the rights to a technology patent of uncertain value. The firm’s owner argued that this patent was worth millions. Kathy agreed that the patent … Read More