Beth Doherty under the supervision of Lawrence SusskindTwo-party, two-issue, integrative, scoreable negotiation over the terms of a telecommunications services contract
Data Voice markets telecommunications (“telecom”) services to residential and business customers. This year, a small firm called Consulting Integration needs to renew and adjust its telecom services contract with Data Voice.
This will be Consulting Integration’s second three-year telecom services contract with Data Voice. Technical specialist Robin Rigley represents Consulting Integration in the service contract negotiations, and regional sales manager Kelsey Kidd represents Data Voice.
Robin and Kelsey have to negotiate a difficult issue: the number of integrated voice/data/video workstation setups. With a large part of its business devoted to onsite client consulting, Consulting Integration does not currently require the integrated workstation packages that Data Voice offers. However, when Consulting Integration’s website improvements begin to expand its offsite consulting services, the need for integrated workstation packages may grow.
Before Data Voice expanded its telecom platforms, Data Voice lost many clients who preferred to maintain telecom service agreements with a single carrier. In response, Data Voice began to offer data and video telecom services, bundling them in package agreements like those of their competitors. Because of the additional networking hardware required to offer these services, Data Voice has had to expand its technical, operational, and customer service divisions threefold. Thus, Data Voice can no longer afford to continue contracts restricted to voice-only packages. As the regional sales manager, Kelsey Kidd is responsible for giving each client a “fair” number of voice-only packages. These “fair” numbers are based on the total number of workstations the client fits out, and on Kelsey’s judgment of each client’s need for voice-only setups.
Robin and Kelsey are about to meet to discuss their telecom services contract adjustment and renewal.
TEACHING POINTS INCLUDE:
- Creating value in negotiation through trading on different priorities
- Pareto optimization/ maximization
- Tension between creating and claiming (or distributing) value
- Effect of aspiration and reservation values on negotiated outcomes
- Importance of responding and adjusting to new information in negotiation
TEACHING MATERIALS INCLUDE:
- For both parties
Confidential Instructions for:
- Kelsey Kidd, Regional Sales Manager for Data Voice, Ltd.
- Robin Rigley, Technical Specialist for Consulting Integration, Inc.
Teacher’s Package includes:
- All of the above
Telecom Services Attributes
- Time required:
- 1-2 hours
- Number of participants:
- Teams involved:
- Agent present:
- Neutral third party present:
- Teaching notes available:
- Non-English version available:
PON Teaching Negotiation Resource Center
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Ordering copies for multiple participants
To order multiple copies of a role simulation for use in a course or workshop, simply enter the total number of participants in the box next to “Quantity.” There is no need to calculate how many of each role is required.
If you are ordering hard copies, the Teaching Negotiation Resource Center will calculate the appropriate numbers of each role to provide, based on the total number of participants. For example, if you wish to order a 2-party role simulation for use with a class of 30 students, you would enter “30” in the box next to “Quantity.” You then would receive 15 copies of one role and 15 copies of the other role, for use with your 30 participants. As another example, if you ordered 30 participant copies of a 6-party role simulation, you would receive 5 copies of each role.
In the event that the number of participant copies you order is not evenly divisible by the number of roles in the simulation, you will receive extra copies of one or more roles. Participants receiving the extra roles may partner with other participants playing the same role, thus negotiating as a team. So, for instance, if you ordered 31 copies of a 2-party role simulation, you would receive 15 copies of the first role and 16 copies of the second role. One of the participants playing the second role would partner with another participant playing that same role, and the two would negotiate as a team.