PLEASE NOTE: This role simulation was updated in 2005 with higher dollar figures, to make it seem more realistic and worthwhile. The older version with the original dollar figures is available upon request.
SCENARIO:
Burns & Burns, a law firm, is splitting into two new firms, the smaller of which wants to sell 300 volumes from its library that form a set on a specialized topic. So far they have not received any particularly attractive offer. The small law firm of Jones and Solomon is now interested. Purchasing these books as a used set could save Jones & Solomon money over assembling a new library. Two young lawyers are meeting to discuss whether a deal is possible.
MECHANICS:
The exercise can be run in a one-on-one or two-on-two configuration. Negotiation time can range from 20-45 minutes; 30 is usual. Preparation time can be as little as 30 minutes, but it is helpful to allow time for a little outside research on the law book industry. Review can range from 30-90 minutes, and is enhanced by participant demonstrations. These can be new negotiations between people who have just done the negotiation, but not with each other, negotiations between participants who have held off negotiating until this time, or continuing negotiations between participants who have been unable to settle. Both during the basic negotiations and any demonstrations, one or both negotiators can be given additional instructions on the style of negotiation to employ.
MAJOR LESSONS:
- This is an excellent case for exploring the uses of objective criteria. A variety of criteria can be gathered from the case and outside research, and others, with a little thought, can be inferred.
- This case is also a convenient vehicle for exploring different systems of negotiation and how they fare against each other.
- The relationship of BATNA to bottom line is easily illustrated here.
- The case suggests how seldom one encounters a true single-issue negotiation. A little reflection suggests the presence of significant opportunities to expand the pie. In particular, the possibility of establishing an ongoing relationship that might lead to client referrals merits careful consideration.
TEACHING MATERIALS:
For all parties:
- List of Some Possible Objective Criteria
Role Specific:
- Confidential Instructions for the:
Teacher's Package:
PROCESS THEMES:
Anchoring; Authority; BATNA; Constituents; Cost-benefit analysis; Information exchange; Lawyering; Legitimacy; Meaning of "success"; Objective criteria; Offers, first; Options, generating; Relationship; Reservation price; Systems of negotiation; Yesable propositions
SCENARIO:
A school district and a computer consultant are negotiating a potential contract for repair of the school district's failed computer network. Both parties are eager to work with each other: the consultant's qualifications appear perfect for the school district's needs, and the school district would help the consultant connect with additional governmental clients. After a fair amount of negotiation, however, the parties find themselves at an impasse: the consultant's bid (which the consultant feels is very low) is considerably higher than the school's budget for this project. The consultant and a school representative have agreed to meet one last time in an effort to salvage the deal.
This simulation happens to involve a consulting contract, but the negotiation lessons are generic. The exercise can be used simply to illustrate the importance of the creative, option-generating aspect of negotiation. More importantly, it can also be used as the principal vehicle for presenting integrative theory more broadly.
MECHANICS:
This case can be prepared and conducted quickly. Allow 5-15 minutes for preparation, 10-30 minutes for negotiation, and 20-45 minutes for debriefing.
MAJOR LESSONS:
- This exercise is an excellent vehicle for comparing interest-based negotiation and positional bargaining. Conventional offer/counteroffer positional bargaining will almost always fail in this case.
- Joint problem-solving and creative option generation can help overcome an apparent negotiation impasse.
- Creative option generation can involve rescoping the task, rescoping the time frame, and trading on different priorities, among other possibilities.
TEACHING MATERIALS INCLUDE:
Confidential Instructions for:
- Representative for the Tendley school district
Teacher's Package includes:
- Teaching Note (English Version only)
PROCESS THEMES:
Breaking impasses, creating options, identifying interests, transforming problems from zero-sum to non-zero-sum, mutual gains, linkage to other possible deals, building a long-term relationship.
ENHANCED VERSION AVAILABLE:
A digitally enhanced version of this simulation is available through the iDecisionGames platform and includes the following features:
- An Instructor’s Guide summarizing the negotiation concepts covered in the simulation, a quick review of simulation logistics, and a ready-to-use set of debriefing slides;
- Highlights from background readings that will help both students and instructors gain a better understanding of negotiation concepts and methods covered in the simulation;
- Pre- and post-simulation questionnaires instructors can use gauge each student’s grasp of the core concepts before and after participating in the simulation;
- PowerPoint slides that introduce key concepts before the simulation and highlight lessons for debriefing;
- Real time, interactive, data analytics provided via the iDecisionGames platform.
To order the Tendley Enhanced Package click here.
