Discover step-by-step techniques for avoiding common business negotiation pitfalls when you download a copy of the FREE special report, Business Negotiation Strategies: How to Negotiate Better Business Deals, from the Program on Negotiation at Harvard Law School.


contracts

A contract is an agreement having a lawful object entered into voluntarily by two or more parties, each of whom intends to create one or more legal obligations between them. The elements of a contract are "offer" and "acceptance" by "competent persons" having legal capacity who exchange "consideration" to create "mutuality of obligation."

The following items are tagged contracts

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Courses and Training

Negotiation and Leadership: Dealing with Difficult People and Problems

Posted by & filed under executive training, Negotiation and Leadership (3 and 1 Day Courses).

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 

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Free Report

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Courses and Training

Negotiation and Leadership: Dealing with Difficult People and Problems

Posted by & filed under executive training, Negotiation and Leadership (3 and 1 Day Courses).

Negotiation and Leadership Dealing With Difficult People and Problems Fall: December 5-7, 2016 Spring: April 18-20, 2017 | May 15-17, 2017 | June 19-21 2017

Become a More Effective Negotiator Great leaders are great negotiators. By equipping you with the innovative negotiation strategies you need to excel at the bargaining table, Negotiation and Leadership will help you:

Improve working relationships and resolve seemingly … Read More 

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ENCO

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Jeswald W. Salacuse, Arun Venkataraman, and Fritz von Carp … Read More 

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Contract Negotiations and Business Communication: How to Write an Iron-Clad Contract

Posted by & filed under Business Negotiations.

contract negotiations and business communication how to write an iron clad contract

Writing a contract that both encapsulates the negotiated agreement but also incorporates future elements such as the business relationship and the sustainability of the agreement can be a daunting task for even the most experienced negotiators. Executives often leave the legal issues surrounding their deals to their attorneys. While this division of labor is often … Read More 

Courses and Training

Negotiation and Leadership: Dealing with Difficult People and Problems

Posted by & filed under executive training, Negotiation and Leadership (3 and 1 Day Courses).

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 

Product

Manager as Negotiator (The)Bargaining for Cooperation and Competitive Gain

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This fine blend of Harvard scholarship and seasoned judgment is really two books in one. The first develops a sophisticated approach to negotiation for executives, attorneys, diplomats – indeed, for anyone who bargains or studies its challenges. The second offers a new and compelling vision of the successful manager: as a strong, often subtle negotiator, … Read More 

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5 Win-Win Negotiation Strategies

Posted by & filed under Win-Win Negotiations.

5 Win-Win Negotiation Strategies

Business negotiators understand the importance of reaching a win-win deal: when both sides are satisfied with their agreement, the odds of a long-lasting and successful business partnership are much higher. But concrete strategies for generating a win-win contract often seem elusive. The following five, from experts at the Program on Negotiation at Harvard Law School, … Read More 

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Wintertime in Winterville

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Jonathan Raab, Sarah McKearnan, Jan Martinez, and Michele Ferenz Four-party negotiation among a federal building manager, the building contracting officer, a local employment agency, and a nonprofit organization regarding the renewal of a janitorial services contract in the context of past service problems … Read More 

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Product

Telecom Services

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Beth Doherty under the supervision of Lawrence Susskind Two-party, two-issue, integrative, scoreable negotiation over the terms of a telecommunications services contract … Read More 

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Using Principled Negotiation to Resolve Disagreements

Posted by & filed under Dispute Resolution.

Using Principled Negotiation to Resolve Disagreements

Parties can often reach a better agreement through integrative negotiation—that is, by identifying interests where they have different preferences and making tradeoffs among them. If you care more about what movie you see tonight, but your friend cares more about where you have dinner, for example, you can each get your preference on the issue … Read More 

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Hopkins HMO

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Janet Martinez Three-party, multi-issue contract negotiation among representatives for an HMO and two pharmaceutical companies over the purchase of a new antidepressant drug … Read More 

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Fishladder Claim

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Susan Podziba and Lawrence Susskind Three-party, two-round internal negotiation among agency officials over whether to litigate or pursue non-binding arbitration to settle a contract claim against a private contractor … Read More 

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Win Win Negotiation: Managing Your Counterpart’s Satisfaction

Posted by & filed under Uncategorized.

How to arrive at optimal agreements and make everyone happy with win win negotiation

As the following points of win-win negotiation will demonstrate, ensuring that your counterpart is satisfied with a particular deal requires you to manage several aspects of the negotiation process, including his outcome expectations, his perceptions of your outcome, the comparisons he makes with others, and his overall negotiation experience itself. … Read More 

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Brachton Collective Bargaining Exercise

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Two-team, multi-issue employment contract negotiation between three teachers’ union representatives and three school committee representatives; includes internal team meetings before external negotiations … Read More 

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Book Contract, The

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Two-party, single-issue distributive negotiation between a publisher and a literary agent over the advance payment for the agent’s unpublished but very promising client … Read More 

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How to Negotiate Under Pressure

Posted by & filed under Uncategorized.

How to Negotiate Under Pressure

At the time, it seemed to be an example of coolheaded dealmaking in the midst of disaster. In 2009, hit hard by the 2008 financial crisis and changes in consumer preferences, U.S. automaker Chrysler was on the brink of collapse, and the Treasury Department stepped in to do a deal. In exchange for about $12 … Read More 

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How to Negotiate a Business Deal

Posted by & filed under Business Negotiations.

How to Negotiate a Business Deal

In late 2016 and early 2017, news stories abounded of companies that were having second thoughts about planned mega-mergers. Abbott Laboratories began looking for ways to exit its acquisition of Alere, citing investigations of the medical test maker, for example. And Verizon started rethinking its acquisition of Yahoo! following a data breach at the tech … Read More 

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The Negotiation Process in China

Posted by & filed under Uncategorized.

negotiation process

With its booming economy and growing international consumer influence, the role of negotiation in international business is more important than ever and negotiation skills appropriate for China are in high-demand. Here are a few negotiation tips to help you successfully navigate your next round of business negotiations in China. … Read More 

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What is a Win-Win Negotiation?

Posted by & filed under Uncategorized.

What is a Win-Win Negotiation?

In an episode of the American television show The Office, bumbling manager Michael Scott consults with a manual on conflict resolution while attempting to mediate a dispute between two of his subordinates, Angela and Oscar. After Scott explains that there are five approaches to resolving conflict, beginning with “win-lose,” an annoyed Angela interrupts: “Can we … Read More 

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The Importance of Negotiation in Business

Posted by & filed under Business Negotiations.

The Importance of Negotiation in Business

What are the essential ingredients to getting ahead in the workplace? Hard work, communication skills, and a generous dose of luck all play a role, of course. Another key ingredient—one that is often overlooked—is the ability to recognize and capitalize on opportunities to negotiate for your career success. Why is negotiation in business important? Because … Read More 

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Announcing the 2017-2018 PON Graduate Research Fellows

Posted by & filed under Daily, Graduate Research Fellowships.

The Program on Negotiation Graduate Research Fellowships are designed to encourage young scholars from the social sciences and professional disciplines to pursue theoretical, empirical, and/or applied research in negotiation and dispute resolution. Consistent with PON’s goal of fostering the development of the next generation of scholars, this program provides support for one year of dissertation … Read More 

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Negotiation Topics in Business: Make a Bump Plan

Posted by & filed under Business Negotiations.

negotiation topics in business and negotiation strategy make a bump plan

Regrouping from the cancellation of the 2004–2005 season due to failed labor negotiations, National Hockey League (NHL) teams and players faced the challenge of radically restructuring their collective bargaining agreement (CBA) in July 2005. The new CBA instituted a uniform cap (as well as a floor) on team payrolls. It also set maximums and minimums … Read More 

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Google’s Negotiations with Groupon: How Business Negotiators Can Maximize Value Claiming While Engaging in Integrative Negotiations

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Google's Negotiations with Groupon: How Business Negotiators Can Maximize Value Claiming While Engaging in Integrative Negotiations

It seemed to be a match made in Internet heaven. In late 2010, Google made a $6 billion bid for Groupon, the Chicago­based company that e­mails daily coupon deals for local goods and services to consumers around the world. (If enough people sign up, the daily deal “tips,” meaning the coupons are issued; otherwise, the … Read More 

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Dealmaking: Don’t Wait for Them to Blink

Posted by & filed under Dealmaking.

dealmaking

In labor disputes and dealmaking, negotiators on both sides are likely to overestimate the odds that the other side will view their proposals as fair. In fact, however, self-serving perceptions of what constitutes a fair settlement can cause negotiators to remain miles apart. These factors appear to have come into play when the National Hockey … Read More 

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Win Win Negotiations: Can’t Beat Them? Join a Coalition.

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Win Win Negotiations: Can’t Beat Them? Join a Coalition.

This negotiation case study demonstrates the power of coalitions to achieve objectives at the bargaining table. How can negotiators cooperate with bargaining counterparts to create value for both sides? Here is the strategy used by Wyoming ranchers to achieve just that. … Read More 

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Alternative Dispute Resolution: Corporate Stakeholder Engagement and Mineral Extraction in Colombia

Posted by & filed under Dispute Resolution.

Alternative Dispute Resolution

Corporations around the world are being pressed by their shareholders to do a better job of taking local concerns into account when they initiate mineral extraction projects. Indeed, both stakeholders and risk managers are demanding this. Many companies are now systematically assessing the concerns of a wide range of stakeholders and seeking to demonstrate (in … Read More 

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When Dealmaking Breaks Down, Take the High Road

Posted by & filed under Dealmaking.

dealmaking

When a negotiation reaches an impasse, it can be tempting to use threats and punishment to try to coerce the other side into conceding. That happened in a dispute between Amazon and Hachette, one of the largest New York publishers, as reported in the New York Times. … Read More 

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Mediation Process and Business Negotiations: How Does Mediation Work in a Lawsuit?

Posted by & filed under Uncategorized.

mediation process and business negotiations how does mediation work in a lawsuit

How does mediation work in a lawsuit? What benefits can mediation offer businesses that deal with multiple contractual agreements, some of which may end in disputes? These questions were answered by Harvard Law School Associate Professor and negotiation expert Dan Greiner in an “Ask the Negotiation Coach” segment from our Negotiation Briefings newsletter. … Read More 

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How to Renegotiate a Bad Deal

Posted by & filed under Dealing with Difficult People.

Many viewed the deal to be a terrible one from the start. In December 2008, Richard M. Daley, then Chicago’s mayor, announced that his administration had agreed to lease the city’s parking meters for 75 years to a private company for nearly $1.2 billion in an attempt to tackle a budget shortfall of about $500 … Read More 

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Beware Your Counterpart’s Biases

Posted by & filed under Conflict Resolution.

In the past we have encouraged you to ‘debias’ your own behavior by identifying the assumptions that may be clouding your judgment. We have introduced you to a number of judgment biases – common, systematic errors in thinking that are likely to affect your decisions and harm your outcomes in negotiation. Learn how to identify … Read More 

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Value Creation in Negotiation

Posted by & filed under Uncategorized.

Use Integrative Negotiation Strategies to Create Value at the Bargaining Table

Many people say they dread negotiating and avoid it whenever they can. Why? Typically, because they view negotiation as a competition in which one party’s gains come at the expense of the other party. … Read More 

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How to Avoid Faulty Negotiated Agreements

Posted by & filed under Dealmaking.

Some of the trickier aspects of designing the right contract with your agent include properly aligning her incentives and monitoring her work. Supervising your agent can be especially hard when she knows more than you do about the area of work. For example, hiring an agent who is a lawyer and paying her on an … Read More 

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What is an Arbitration Agreement?

Posted by & filed under Conflict Resolution.

If you have ever owned a cell phone or been issued a credit card, odds are you’ve signed an arbitration agreement. You also may have signed an arbitration agreement when you started your current job or a past one, whether you remember doing so or not. … Read More 

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Business Negotiation Skills: How to Deal with a Failing Business Partnership

Posted by & filed under Business Negotiations.

It had seemed like the beginning of a fruitful relationship. In April 2012, six wealthy businessmen teamed up to buy the Philadelphia Inquirer and several affiliated businesses for $61.1 million, promising to work together to reverse the newspaper’s flagging fortunes. Their infusions of cash and appointment of a Pulitzer Prize–winning reporter, William K. Marimow, as … Read More 

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How to Defend Against “Scope Creep” at the Negotiation Table

Posted by & filed under Uncategorized.

The following question was asked of Negotiation Coach and PON faculty member Guhan Subramanian in the February 2014 issue of the Negotiation Briefings newsletter: Question: I run a small consulting firm that has a services contract with a major multinational corporation. The team we work with has a bad habit of continually adding items to the … Read More 

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Announcing the 2016-2017 PON Graduate Research Fellows

Posted by & filed under Daily, Graduate Research Fellowships.

    The Program on Negotiation Graduate Research Fellowships are designed to encourage young scholars from the social sciences and professional disciplines to pursue theoretical, empirical, and/or applied research in negotiation and dispute resolution. Consistent with PON’s goal of fostering the development of the next generation of scholars, this program provides support for one year of dissertation … Read More 

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Using Mediation to Resolve International Disputes

Posted by & filed under Conflict Resolution.

As businesses increasingly branch out globally, they also face the possibility of broken contracts and strained relationships. Mediation can be an effective means of resolving disputes and getting business partners back on track, but do intercultural differences complicate the process? If so, how can disputants and mediators adjust? Elizabeth D. Salmon of the University of Maryland … Read More 

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Top 10 Best Negotiations of 2014: Negotiation Case Studies Drawn from Negotiation Examples in Real Life

Posted by & filed under Uncategorized.

Rather than unparalleled triumphs and victories, many of the 10 Best Negotiations of 2014 share a common theme of “making the best of a bad situation.” From climate change to Congress to Cuba, negotiators often found themselves trying to claw their way out of the darkness and into the light. Here are 10 negotiations that … Read More 

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Negotiation Skills for Resolving International Conflicts

Posted by & filed under Uncategorized.

What are the essential skills a negotiator needs to resolve conflicts abroad? How do international conflicts differ from domestic conflicts? What issues specific to bargaining across borders emerges in intercultural negotiations? In this article we explore ways in which negotiators can develop bargaining skills to overcome any barriers to communication they may encounter in negotiations … Read More 

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In The Simpsons Dealmaking, Harry Shearer Goes Public

Posted by & filed under Dealmaking.

How did actor Henry Shearer and the producers of the hit television show The Simpsons arrive at a win-win negotiated agreement? In this article drawn from examples of negotiation in real life, we examine the negotiations between the actor and the producers and offer insights into the bargaining strategies employed by each. … Read More 

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Win-Win Negotiation with Bethenny Frankel

Posted by & filed under Business Negotiations.

Win Win negotiations for Bethenny Frankel

In this negotiation scenario straight from reality television, Lu Ann de Lesseps, Ramona Singer, and Sonja Morgan test their negotiating prowess against reality tv network Bravo in their contract renewal renegotiations. Skinnygirl mogul and financial whiz kid, Bethenny Frankel, offers a template for bargaining for success on reality tv and beyond. … Read More 

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After the West Coast Ports Conflict, Damage Remains

Posted by & filed under Crisis Negotiations.

after the west coast ports conflict damage remains

No one wants to engage in crisis negotiations. When parties need to hurriedly work out a solution to a shared problem, time is short, tempers are frayed, and the disaster is looming. Feeling they’ve exhausted good-faith bargaining, parties in crisis negotiations may believe they face an impossible choice between caving in to the other side’s … Read More 

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International Negotiation: Your Own Worst Enemy?

Posted by & filed under Uncategorized.

Knowing how to manage your own internal conflicts before engaging in negotiations is an invaluable negotiation skill negotiators should develop prior to engaging in international negotiations, business or otherwise. … Read More 

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In Rome, Conflict Management Turns Operatic

Posted by & filed under Conflict Resolution.

When financial disputes arise between longstanding partners, both insiders and outsiders often note, “It’s not about the money.” Simmering resentment, mutual blame for ongoing problems, poor communication, and other deep issues often underlie arguments over money and make conflict management all the more difficult. Parties may reach agreement on monetary issues, but if they fail … Read More 

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A Perspective on the Colombian Peace Process

Posted by & filed under Daily, Events.

The Program on Negotiation at Harvard Law School and the David Rockefeller Center for Latin American Studies are pleased to co-present: A Perspective on the Colombian Peace Process   with   Dr. Alejandro Ordóñez Maldonado Inspector General of Colombia Procurador General  de la Nación   Friday, December 5th 12:00 – 1:00 PM Milstein East, Wasserstein Hall Harvard Law School Campus  Free and open to the public.   Please bring your … Read More 

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In Business Negotiations, Restraint Can Be Key—Even in High Fashion

Posted by & filed under Business Negotiations.

When employees leave an unsatisfying job, the feeling of relief they feel sometimes motivates them to explain their decision to whomever will listen. But that tendency can backfire and necessitate tense business negotiations, as a recent story from the world of high fashion illustrates. In November 2012, designer Nicolas Ghesquière startled the fashion world with … Read More 

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How to Deal When the Going Gets Tough

Posted by & filed under Conflict Resolution.

Most business negotiators understand that by working collaboratively with their counterparts while also advocating strongly on their own behalf, they can build agreements and longterm relationships that benefit both sides. During times of economic hardship, however, many negotiators abandon their commitment to cooperation and mutual gains. Instead, they fall back on competitive tactics, threatening the other … Read More 

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Cooperation in Congress? Liberals and Libertarians Polish Their Negotiation Skills

Posted by & filed under Uncategorized.

On June 19, Republican Representative Thomas Massie of Kentucky, a libertarian, teamed up with two liberal Democrats, Zoe Lofgren of California and Rush D. Holt of New Jersey, to push through an amendment that places new prohibitions on the National Security Agency and the CIA’s surveillance operations, including barring the agencies from engaging in warrantless … Read More 

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Master the Art and Science of Haggling for More Productive Business Negotiations

Posted by & filed under Business Negotiations.

Just like the prices of houses, cars, and other big-ticket items, the prices of furniture, electronics, wine, jewelry, another “medium-ticket” goods are now frequently up for discussion. The ancient art of haggling—the back-and-forth dance of offers and concessions between buyer and seller—is making a comeback, and you would do well to brush up on your … Read More 

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At the Met, Conflict Management in a Minor Key

Posted by & filed under Conflict Resolution.

This spring, the Metropolitan Opera opened labor talks with the 16 unions representing its workers, whose contracts all expire at the end of July, the New York Times reports. Labor and management agree on one fundamental point—that the opera is struggling financially amid falling ticket sales, a depleted endowment, and growing expenses. Perhaps not surprisingly, … Read More 

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Conflict Management: Becoming a Team Player

Posted by & filed under Conflict Resolution.

Show me the money!” That refrain from the 1996 movie Jerry Maguire, shouted by a football player to his agent, continues to echo through U.S. professional sports negotiations today. A public arena, enormous piles of cash, and even bigger egos combine to make sports negotiations a unique context. Yet anyone who has negotiated through agents, … Read More 

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Dealmaking: What About the Fine Print?

Posted by & filed under Business Negotiations.

Choosing the right words for your contract is a negotiation in itself. Five guidelines will help you achieve greater precision. When negotiators sign on the dotted line, they sometimes worry about the wrong concerns. “Did I overpay?” wonders the buyer as he inks the sales agreement. Across the table, the seller is thinking, “I bet if I’d pushed … Read More 

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Low-Drama Negotiation Skills at the “Late Show”

Posted by & filed under Uncategorized.

Just one week after David Letterman revealed his decision to leave his long-running talk show, the Late Show with David Letterman, CBS announced that comedian Stephen Colbert would be his replacement. The negotiations surrounding the changing-of-the-guard were remarkably business-like and calm for the tumultuous world of late-night television. Letterman debuted his show Late Night in 1982 … Read More 

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Top Ten Business Deals of 2013: American Airlines – U.S Airways

Posted by & filed under Dealmaking.

On November 29, 2011, the same day American Airlines filed for bankruptcy, US Airways CEO Doug Parker called American head Tom Horton to discuss a possible merger. Horton rebuffed Parker, saying airline needed to spend time reorganizing and renegotiating its labor contracts before focusing on a deal, the Wall Street Journal reports. … Read More 

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Program on Negotiation Welcomes Visiting Scholar Stefanos Mouzas

Posted by & filed under Daily.

Stefanos Mouzas is Professor of Marketing and Strategy at Lancaster University Management School in England, where he is also affiliated with the Center of Law and Society. He received his B.Sc. (Economics) from the University of Athens, LL.M. (Contract Law) from University of Bristol, and Ph.D. (Marketing) from Lancaster University. He was Visiting Professor … Read More 

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Nantucket’s Never-Ending Negotiations: Harvard Negotiation and Mediation Clinical Program (HNMCP) Students Shape How Town and Unions Work Together

Posted by & filed under Uncategorized.

Preparation. Practice. Persistence. Those qualities make for a good firefighter, and as Nantucket Firefighter Nate Barber learned from working with Harvard Negotiation and Mediation Clinical Program (HNMCP) students, they also make for a good negotiator. As a member of Nantucket’s Local 2509 of the International Association of Firefighters and a former undergraduate negotiation student at Boston … Read More 

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Taking Alternative Dispute Resolution (ADR) Too Far

Posted by & filed under Uncategorized.

More and more companies are inserting alternative dispute resolution (ADR) clauses in their contracts with customers and vendors, and even in agreements with their own employees. ADR processes such as mediation and arbitration can be beneficial for all concerned if they help avoid the cost, delay, and uncertainty of going to court. Mediation, in particular, … Read More 

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When You Should Put Pen to Paper

Posted by & filed under Uncategorized.

Managers often are surprised to learn that deals don’t need to be written down to be legally binding. As a matter of contract law, all that’s needed is an offer, acceptance, and consideration - legalese for a benefit gained by each side. For many deals, this means that a handshake is sufficient to “bind” the … Read More 

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When Umbrella Agreements Spring Leaks in Dispute Resolution

Posted by & filed under Dispute Resolution.

Negotiators tend to want the best of both worlds. When reaching an agreement, they want to nail down parties’ respective rights and responsibilities, but they also want to retain the flexibility to deal with ever-changing business conditions. One solution to this apparent dilemma is to craft umbrella, or framework, agreements. (The term umbrella is more commonly … Read More 

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Taking ADR Too Far

Posted by & filed under Dispute Resolution.

More and more companies are inserting alternative dispute resolution (ADR) clauses in their contracts with customers and vendors, and even in agreements with their own employees. ADR processes such as mediation and arbitration can be beneficial for all concerned if they help avoid the cost, delay, and uncertainty of going to court. Mediation, in particular, … Read More 

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When Negotiations Take Advantage of Outsiders

Posted by & filed under Uncategorized.

In March, reported Rob Wildeboer of Chicago’s WBEZ radio station broke the news that inmate in Cook County prisons (including those in the city of Chicago) were being charged inflated phone rates due to a profit-generating contract between the county and Securus Technologies, the company that operates the jail phone service. The contract requires Securus … Read More 

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Negotiator toolbox: Capitalize on differences

Posted by & filed under Business Negotiations.

The problem: You and your negotiating counterpart express differing opinions about the future success, performance, or timeliness of an item or service. A homeowner might be skeptical of a contractor’s promise to complete an extensive remodeling project within six months, for instance. Differing forecasts can breed suspicion and stand in the way of agreement. The tool: … Read More 

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How comparisons affect satisfaction

Posted by & filed under Uncategorized.

Social comparisons are a critical factor in guiding negotiator satisfaction, Maurice E. Schweitzer of the University of Pennsylvania and Yale psychologist Nathan Novemsky have found in their research. Not only do negotiators compare their profit from a deal with the profit they imagine their counterpart earned, but they also compare their profit with the profits … Read More 

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Hardball tactics from a major leaguer

Posted by & filed under Business Negotiations.

Adapted from “Becoming a Team Player: Lessons from Professional Athletics,” first published in the Negotiation newsletter, October 2009. In Major League Baseball (MLB), one particular player’s agent is widely blamed for the contentious nature of contract negotiations: Scott Boras. Boras has negotiated unprecedented contracts for many of the most highly paid players, including Manny Ramirez, Johnny … Read More 

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How much authority do they have?

Posted by & filed under Business Negotiations.

Adapted from “Contracts 101: What Every Negotiator Should Know about Contract and Agency Law” by Guhan Subramanian (professor, Harvard Business School and Harvard Law School), first published in the Negotiation newsletter, February 2006. While hammering out an agreement, a mid-level manager offered a customer a significant price discount. When the discount failed to materialize, the customer … Read More 

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Why it pays to haggle

Posted by & filed under Daily.

Adapted from “Master the Art and Science of Haggling,” first published in the Negotiation newsletter, August 2009. Businesses that never would have considered negotiating with customers before the global economic crisis are now willing, even eager, to make a deal. Just like the prices of houses, cars, and other big-ticket items, the prices of furniture, electronics, … Read More 

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Don’t rush into a flawed contract

Posted by & filed under Business Negotiations, Daily.

Adapted from “A Contingent Contract? Weigh the Costs and Benefits of Making a ‘Bet’,” by Guhan Subramanian (professor, Harvard Law School and Harvard Business School), first published in the Negotiation newsletter, August 2006. Contracts in professional sports are often chock-full of contingencies -“bets” that parties place on their different expectations of future outcomes – and former … Read More 

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When Negotiation Trumps Procurement Auctions

Posted by & filed under Business Negotiations, Daily.

Adapted from “Negotiations versus Auctions: New Advice for Buyers,” first published in the Negotiation newsletter, August 2007. Economists have long advocated auctions as an effective means of increasing value. Yet recent research contradicts this conventional wisdom. In fact, as compared with negotiations, auctions can actually raise prices in procurement contracts. Suppliers tend to prefer negotiations because … Read More 

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Successful negotiation strategies lead to bright future for 2011 Stanley Cup Champion Boston Bruins

Posted by & filed under Business Negotiations, Daily.

As Zdeno Chara, the captain of the Boston Bruins, hoisted the Stanley Cup at the conclusion of the 2011 Stanley Cup playoffs, fans could celebrate with abandon, secure in the knowledge that their star defenseman will be wearing black and gold through the 2017-2018 season. Without the last minute contract extension signed days before … Read More 

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Unlocking Labor Disputes

Posted by & filed under Conflict Resolution, Daily.

Adapted from “How the Writers Got Back to Work,” first published in the Negotiation newsletter, May 2008. When labor talks reach a stalemate, negotiators may be able to get back on track by avoiding extreme demands, thinking carefully about the other side’s point of view, negotiating in smaller groups, and enlisting the help of a neutral … Read More 

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A Closer Look at Collective Bargaining

Posted by & filed under Business Negotiations, Daily.

Adapted from “Innovation in Labor Relations,” first published in the Negotiation newsletter. In 2004, a team of MIT and Harvard researchers published a study of a bold initiative by health-care giant Kaiser Permanente and its many unions to restructure their relationship. Given the recent spotlight focused on collective bargaining, beginning with a very public battle in … Read More 

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Negotiators: Don’t Go on a Power Trip

Posted by & filed under Uncategorized.

Adapted from “When You Hold All the Cards,” by Guhan Subramanian (professor, Harvard Business School and Harvard Law School), first published in the Negotiation newsletter. One of your customers has just landed a lucrative new contract, and you’re the only supplier who can add a critical component to that customer’s production process. Concerns about violating your … Read More 

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Agreeing to Disagree

Posted by & filed under Business Negotiations, Daily.

Adapted from “What Divides You May Unite You,” by James K. Sebenius (professor, Harvard Business School), first published in the Negotiation newsletter. Mark Twain once quipped that “it is differences of opinion that make horse races.” Along these lines, differences in beliefs about how future events will unfold—what a key price will be, whether a technology … Read More 

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Professor Subramanian Featured in NYTimes DealBook

Posted by & filed under Business Negotiations, Daily.

PON Executive Committee member and author of the book Negotiauctions was featured in the New York Times DealBook discussing the effectiveness of go-shop provisions in contracts. To read the full article, click here. Professor Subramanian found that “despite the conventional wisdom, go-shops were generally effective and did indeed result in subsequent bids. The one exception … Read More 

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Everyday Ingenuity

Posted by & filed under Daily.

Adapted from the Negotiation newsletter. Negotiation expert Roger Fisher sagely counsels, “Solutions are not the answer.” Instead of tossing demands back and forth on their way to an outcome, negotiators should focus on the process of exploring their underlying needs and interests. Get the process right, and practical solutions often follow. But process still depends on the … Read More 

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Pull Ahead of the Pack

Posted by & filed under Business Negotiations, Daily.

Adapted from “Think You’re Powerless? Think Again,” first published in the Negotiation newsletter. If your organization regularly bids for business, you may be accustomed to feeling like the weaker party, write Deepak Malhotra and Max H. Bazerman in their book Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond … Read More 

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To Avoid an Impasse, Keep Talking

Posted by & filed under Business Negotiations, Daily.

Adapted from “How the Writers Got Back to Work,” first published in the Negotiation newsletter. What happens when people think they’ve invested too much in a dispute to back down from their entrenched positions? This question rose to the fore as the Writers Guild of America (WGA) West and East’s strike against the Alliance of Motion … Read More 

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Keep it Out of Court

Posted by & filed under Business Negotiations, Daily.

Adapted from “Turn Disputes into Deals,” by by Robert H. Mnookin (professor, Harvard Law School) first published in the Negotiation newsletter. In 1982, writer and movie producer Art Buchwald wrote a screen treatment that his partner, Alain Bernheim, pitched to Paramount Pictures. Settling upon the title King for a Day, Paramount and Bernheim entered into an … Read More 

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Trusting from Square One

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Adapted from “How Much Should You Trust?” by Iris Bohnet (professor, Harvard Kennedy School) and Stephan Meier (professor, Columbia Business School), first published in the Negotiation newsletter. What’s the best way to cope with a fellow negotiator who has betrayed your trust? Ignoring the problem is rarely the best solution. When you distrust someone, you’re forced to … Read More 

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Deal with Last-Minute Demands

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Adapted from “When They Slice the Deal Too Thin,” by Michael Wheeler (professor, Harvard Business School), first published in the Negotiation newsletter. Suppose that, after months of negotiation, you reach a detailed agreement with a customer and shake hands. A week later, the customer’s procurement officer calls to tell you that there have to be some … Read More 

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Get the Kinks Out

Posted by & filed under Business Negotiations, Daily.

Adapted from “Should You Get the Kinks Out?” by Ian Larkin (professor, Harvard Business School), first published in the Negotiation newsletter. You may have heard about the power of contingent contracts in negotiation. As an example, imagine that a supplier has proposed you pay a bonus of 10% if the fault rate for its products is … Read More 

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Negotiation or an auction?

Posted by & filed under Business Negotiations, Daily.

Adapted from “Negotiations Versus Auctions in Procurement,” first published in the Negotiation newsletter.

When developing procurement contracts, when should you hold an auction, and when should you negotiate? In a study of more than 4,000 private-sector construction contracts in Northern California between 1995 and 2000, researchers Patrick Bajari, Robert McMillan, and Steven Tadelis examined the differences … Read More 

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Pharma talks

Posted by & filed under Business Negotiations, Daily.

The PON Clearinghouse offers hundreds of role simulations, from two-party, single-issue negotiations to complex multi-party exercises.  The following role simulation is a three-party, multi-issue contract negotiation among representatives for an HMO and two pharmaceutical companies over the purchase of a new antidepressant drug. SCENARIO: Hopkins HMO is the largest independent managed health care organization in the … Read More 

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Negotiations in the telecommunication industry

Posted by & filed under Business Negotiations, Daily.

The Clearinghouse at PON offers hundreds of role simulations, from two-party, single-issue negotiations to complex multi-party exercises.  Telecom Services is a two-party, two-issue, integrative, scorable negotiation over the terms of a telecommunications services contract. Scenario: Data Voice markets telecommunications (“telecom”) services to residential and business customers. This year, a small firm … Read More 

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Learning from the Soda Wars

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This past November, in an unusual move, Costco, the largest wholesale club in the United States, removed Coca-Cola products from its shelves and posted messages telling shoppers that Coke products would not be available until the company lowered its prices. … Read More 

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To Avoid Disaster, Plan Ahead

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In the midst of the recent financial crisis, accusations of greed on Wall Street have sounded across the globe. Greed may be a significant factor in the collapse of credit markets, but it’s not the only one. Overlooked in cries to punish the “bad apples” is the role of a mistake that virtually all negotiators … Read More 

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How to Defuse a Strike

Posted by & filed under Conflict Resolution.

The recent dispute between the Writers Guild of America (WGA) West and East and the Alliance of Motion Picture and Television Producers (AMPTP) illustrates how a disagreement at the negotiating table can lead to a long and costly strike. As the two sides battled back and forth, AMPTP member companies laid off support staff, and … Read More