renegotiation

The following items are tagged renegotiation:

BATNA and Risky Negotiation Tactics

Posted by & filed under BATNA.

Your BATNA is your “best alternative to a negotiated agreement.” Expect that your negotiating counterpart has one going into a negotiation, and so should you. Below is a good BATNA negotiation example involving how to leverage your away-from-the-bargaining-table options and the risks inherent with such a negotiation strategy. … Read More 

Negotiating About Pandas for San Diego Zoo

Posted by & filed under .

Stephen Weiss and Sarah Tatrallyay This case study centers on the most challenging task for a negotiator: to reach a satisfactory agreement with a tough counterpart from a position of low power—and to do so in an uncommon context. The case concerns the executive director of a zoo in the U.S. who seeks two giant pandas, … Read More 

Strategic NegotiationsA Theory of Change in Labor-Management Relations

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Labor-management relations have changed dramatically in recent years. Global competition and related economic, technological, political, and institutional changes have forced the collapse of the traditional social compact—based on steadily increasing wages and benefits for workers in exchange for unchallenged managerial autonomy—underpinning the U.S. labor market. In today’s competitive environment, managers can no longer afford the … Read More 

How to Renegotiate a Bad Deal

Posted by & filed under Dealing with Difficult People.

Think you have some stories from trying to renegotiate? Try this one on for size. Many viewed the deal to be a terrible one from the start.  Back 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 … Read More 

When Not to Show Your Hand in Negotiations

Posted by & filed under Negotiation Skills.

Here, we consider four types of information that may be best kept under wraps: sensitive or privileged information, information that isn’t yours to share, information that diminishes your power, and information that may fluctuate during negotiations. Fearful of being hurt by revealing too much information, most negotiators play their facts and preferences close to the vest. … Read More 

Lessons for Business Negotiators: Negotiation Techniques from International Diplomacy

Posted by & filed under Dealmaking.

Executives rarely view themselves as diplomats engaged in international diplomacy but business negotiators often find the two fields share negotiation skills and negotiation techniques. Rightly or wrongly, diplomacy evokes images of frivolity – days spent wandering exotic capitals, nights spent cruising embassy cocktail parties. … Read More 

Negotiation in the news: In a skirmish over scallops, it’s the French versus the British

Posted by & filed under Dispute Resolution.

When parties are fighting for scarce resources, disputes can become intense. Negotiation is often the answer, but agreements may need to be continually revisited to keep the peace. That’s the main takeaway from the dispute that erupted in the English Channel between French and British fishermen this August. Stormy waters In Europe, the European Union sets fishing … Read More 

Redoing the deal: Lessons from the NAFTA renegotiations

Posted by & filed under Dealmaking.

During the 2016 presidential campaign, then-candidate Donald Trump blamed the trilateral North American Free Trade Agreement (NAFTA) among Canada, Mexico, and the United States for the U.S. trade deficit with Mexico and lost American manufacturing jobs. Upon taking office, Trump said he was determined to either renegotiate NAFTA or walk away from the pact. Mexican president … Read More 

Unlocking cross-cultural differences in negotiation

Posted by & filed under International Negotiation.

Hollywood film executives are known for being savvy negotiators, but they seem to have met their match over the past year as they struggle to renegotiate terms for showing American films in China. Back in 2012, Xi Jinping, then China’s vice president, and then–U.S. vice president Joe Biden negotiated a deal governing the distribution of American … Read More 

Conflict Negotiation Strategies for Business Negotiators

Posted by & filed under Conflict Resolution.

When closing a deal, new business partners are typically optimistic about the path ahead. But somewhere down the line, conflict is almost inevitable. One party may miss a deadline. The two sides may interpret contract terms differently. Changing economic conditions may make it difficult for one side to uphold its end of the deal. When a … Read More 

Video: Setting the Stage for Productive Negotiations

Posted by & filed under Daily, Resources, Videos.

Understanding how to arrange the meeting space is a key aspect of preparing for productive negotiations. In this video, Guhan Subramanian, professor at Harvard Law School and Harvard Business School, discusses a real world example of how seating arrangements can influence a negotiator’s success. The discussion was held in his negotiation training workshop “Setting the … Read More 

Successes and Messes: Ripping Up a Sweetheart Deal, Mid-Contract

Posted by & filed under Business Negotiations.

The Kansas City Royals didn’t have to give catcher Salvador Perez better terms—but did anyway. It was perhaps “the sweetest of sweetheart deals” negotiated by a Major League Baseball (MLB) team in today’s market, according to the New York Times. So why did the Kansas City Royals throw out their old agreement with star catcher Salvador … Read More 

Negotiation in the News: The selfless QB? Tom Brady renegotiates with the Patriots

Posted by & filed under Business Negotiations.

After renegotiating his contract with the New England Patriots, star quarterback Tom Brady attracted almost as much admiration for his seemingly selfless concessions as he has for his stellar performance on the field. But a closer look at the restructured deal suggests that Brady, once again, looked for an advantageous opening and came out a … Read More 

How to avoid a bidding war

Posted by & filed under Business Negotiations.

In the National Basketball Association (NBA), signing an endorsement deal with footwear giant Nike has become a rite of passage for newly anointed superstars. Save for a few notable deals by Adidas, Nike has dominated the practice of paying top talent millions for the right to sell lines of collectible shoes in their names. This past … Read More 

Dealing with Difficult People: Tackle Tough Issues Together

Posted by & filed under Dealmaking.

When a difficult negotiation such as a labor contract renegotiation looms, it can be tempting for each side to try to make unilateral decisions on certain issues because of the belief that negotiation with the other side will be a dead end. This strategy may pay off in the short term, but it’s important to … Read More 

Got a raw deal? Renegotiate a better one

Posted by & filed under Dispute Resolution.

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 

What to Do Before the Deal Breaks Down

Posted by & filed under Dealmaking.

Whenever one side fails to meet its contractual obligations, renegotiation is more likely to succeed if the parties have a strong relationship. Ideally, the aggrieved party will value long-term relations more than potential gains from a claim for breach of contract. For example, a bank will be more willing to renegotiate a loan with a … Read More 

Negotiation Design Dimensions: A Checklist

Posted by & filed under Negotiation Skills.

Here the Program on Negotiation offers a checklist of negotiation design categories. Whether your overall negotiation design is decide-announce-defend (DAD) or full-consensus (FC), or a hybrid of both, raising these issues is usually preferable to falling into a set of important decisions by default. … Read More 

Finding the Right Process in India

Posted by & filed under Negotiation Skills.

In 1995, a new government came into power in the Indian state of Maharashtra and canceled a 20-year power purchase agreement with the Dabhol Power Company, a joint-venture formed by Enron, General Electric, and Bechtel. Claiming that the deal was improper and even illegal, the government declared publicly that it would not renegotiate. … Read More 

Power Failure

Posted by & filed under Business Negotiations.

In 1992 as part of efforts to privatize its energy sector, the Indian government chose energy-trading firm Enron, in conjunction with General Electric and the Bechtel Corporation, to build the world’s largest electricity-generating plant in Maharashtra, one of the poorest states in India. Possessing significant financial, intellectual, and reputational capital, Enron had to have been … Read More 

When you have all the power

Posted by & filed under Business Negotiations, Daily.

Adapted from “The Danger of ‘Take It or Leave It,’” by Ian Larkin (professor, Harvard Business School), first published in the Negotiation newsletter, January 2010. Imagine that one of your organization’s suppliers, with whom you have been very happy, recently lost its only other big customer. Your contract comes up for renegotiation next month. You know … Read More 

After the deal breaks down

Posted by & filed under Daily, International Negotiation.

Adapted from “Redoing the Deal,” by Jeswald W. Salacuse (professor, Fletcher School of Law and Diplomacy, Tufts University), first published in the Negotiation newsletter, August 2005. If you’re like many professionals in these uncertain times, you are probably spending as much time redoing old deals as you are negotiating new ones. Here are four suggestions on … Read More 

The 900-pound Counterpart

Posted by & filed under Business Negotiations, Daily.

Adapted from “Negotiating with a 900-pound Gorilla,” by Lawrence Susskind (professor, Massachusetts Institute of Technology), first published in the Negotiation newsletter. Does your company ever have to negotiate with a behemoth that dominates your market–the so-called 900-pound gorilla? Whether they’re big-box retailers with aggressive pricing strategies or well-established computer software providers, one or two companies seem … Read More 

When incentives strike out

Posted by & filed under Business Negotiations, Daily.

Adapted from “Managers: Think Twice before Setting Negotiation Goals,” first published in the Negotiation newsletter. The next time you’re tempted to dangle performance incentives in front of your employees, think about whether it could backfire. As an illustration, let’s look at Major League Baseball manager Joe Torre’s renegotiation with the New York Yankees in October 2007. Torre … Read More 

How to Avoid a Do-Over

Posted by & filed under Business Negotiations.

Remember that big sales contract you negotiated last fall, the one that got you a fat year-end bonus? Well, your manufacturing department has just told you that delivery will be two months late. So now it’s your job to persuade your customer to accept a new date without canceling the deal. And that’s not all. … Read More 

Turn Vicious Cycles Into Virtuous Ones

Posted by & filed under Business Negotiations.

For decades, Hormel Foods and its employees enjoyed one of the most cooperative and productive labor-management relationships in the processed foods industry. But beginning in the late 1970s, when Hormel pushed for wage concessions, the company’s relationship with its workforce began to deteriorate, especially at the plant in Austin, Minn., the quiet “company town” where … Read More 

Keeping Your Cool when the Negotiations Get Hot

Posted by & filed under Daily, Negotiation Skills.

On the heels of an intricate negotiation, conditions change for the worse. Crops fail, the price of oil skyrockets, one side issues an earnings restatement, or the market as a whole is a lot less promising than it was when you negotiated the initial terms. Suddenly your agreement has lost its luster. How should you … Read More