1. Lead-in (10 minutes)
- Do you know what “give and take” is?
- When you negotiate with others, do you allow flexibility?
- Are you open to “give and take” in all matters, or at times, are you very fixed on a specific outcome?
2. Clarification (20 minutes)
Let’s see the Give and Take method in action!
Context: A corporate bank negotiation between two managers, Alex and Jordan, regarding resource allocation for new projects.
Scenario:
Alex, the Senior Manager of the Investment Division, and Jordan, the Head of the Risk Management Department, are seated in a conference room at the corporate headquarters of their bank.
They are negotiating the allocation of resources for two major upcoming projects: an investment venture and a risk assessment initiative.
Alex: “Good morning, Jordan. I believe we both know how crucial the upcoming investment venture is for our bank. I propose we allocate 70% of our available resources to it.”
Jordan: “Morning, Alex. While I understand the importance of your project, my team’s risk assessment initiative is equally vital. It’s essential for the bank’s long-term security. I was thinking of a more balanced distribution, maybe 50-50.”
Alex: “I see your point, Jordan. However, consider the potential revenue from the investment venture. It might be wise to prioritize it now. What if we go for a 60-40 split in favor of the investment project?”
Jordan: “Alex, I agree that the venture could be lucrative, but neglecting risk assessment could have dire consequences. How about we compromise at 55-45? This way, your project gets more resources, but mine isn’t left behind.”
Alex: “That seems like a reasonable compromise. I can work with a 55-45 split. Additionally, if the initial stages of the investment venture are successful, we could reconsider and possibly reallocate resources.”
Jordan: “That sounds like a good plan. Let’s also schedule regular reviews to monitor both projects’ progress and adjust as needed.”
Alex: “Agreed. Let’s finalize this and put our teams to work. Thanks for the constructive discussion, Jordan.”
Jordan: “Likewise, Alex. Looking forward to seeing both our projects succeed.”
3. Student Sheet: Expanded Vocabulary and Usage
- Compromise
- Definition: An agreement or settlement of a dispute reached by each side making concessions.
- Use Case: Finding a middle ground in negotiations.
- Connotation: Positive.
- Example Sentences:
- “The team reached a compromise by dividing the project responsibilities equally among members.”
- “Compromise is key in business negotiations to ensure all parties feel their interests are represented.”
- Concession
- Definition: Something that is granted, especially in response to demands in a negotiation.
- Use Case: Offering something to the other party in negotiations.
- Connotation: Neutral, can be positive in showing flexibility.
- Example Sentences:
- “The manager made a concession by agreeing to a later deadline in return for enhanced quality.”
- “Offering a concession can often break a stalemate in tough business negotiations.”
- Bargaining
- Definition: Negotiating the terms and conditions of a transaction.
- Use Case: Discussing terms in business deals.
- Connotation: Neutral, associated with negotiation skills.
- Example Sentences:
- “Effective bargaining is essential to secure favorable terms in a contract.”
- “Bargaining power in business often depends on the alternatives each party has.”
- Deadlock
- Definition: A situation in negotiations where no progress can be made due to disagreement.
- Use Case: Challenging phase in negotiations.
- Connotation: Negative.
- Example Sentences:
- “The contract discussions hit a deadlock over payment terms.”
- “To avoid a deadlock, both parties need to be willing to engage in ‘give and take’.”
- Mediation
- Definition: Intervention in a dispute to resolve it; arbitration.
- Use Case: Resolving conflicts in negotiations.
- Connotation: Positive, suggests resolution.
- Example Sentences:
- “A mediator was brought in to facilitate the negotiation process between the disputing companies.”
- “Mediation is often a necessary step in complex business negotiations to find a mutually acceptable solution.”
- Leverage
- Definition: The power to influence a person or situation to achieve a desired outcome.
- Use Case: Gaining an advantage in negotiations.
- Connotation: Positive, implies strategic advantage.
- Example Sentences:
- “The company used its high market share as leverage in the negotiation with suppliers.”
- “Understanding the other party’s needs can provide significant leverage in business negotiations.”
- Stalemate
- Definition: A situation where further action or progress in a negotiation is impossible.
- Use Case: Describing a standstill in discussions.
- Connotation: Negative, indicates a challenging situation.
- Example Sentences:
- “The wage negotiation reached a stalemate when neither side would budge from their demands.”
- “Breaking a stalemate often requires creative thinking and flexibility from all parties involved.”
- Arbitration
- Definition: The use of an arbitrator to settle a dispute.
- Use Case: Resolving disputes in a more formal setting.
- Connotation: Neutral, implies legal resolution.
- Example Sentences:
- “The two companies agreed to go to arbitration to resolve their contract dispute.”
- “Arbitration is often seen as a last resort when negotiations and mediation fail.”
- Consensus
- Definition: General agreement among various groups on a particular issue.
- Use Case: Reaching an agreement acceptable to all parties.
- Connotation: Positive, indicates collaboration.
- Example Sentences:
- “The team reached a consensus on the marketing strategy after several meetings.”
- “Achieving consensus in a large organization can be challenging but is crucial for unified decision-making.”
4. Understanding American Negotiation Culture
1. Direct Communication:
- American Style: Americans tend to be direct and explicit in their communication during negotiations. They value clarity and straightforwardness.
- Advice for Brazilians: Be prepared for a direct approach. Articulate your points clearly and avoid ambiguity. Understand that directness is not rudeness but a cultural preference for clear communication.
2. Time Sensitivity:
- American Style: Time is seen as a valuable commodity in American business culture. Punctuality and efficiency are highly valued.
- Advice for Brazilians: Respect schedules and deadlines. Be punctual for meetings and be concise in your discussions. Avoid long, drawn-out negotiations without clear progress.
3. Individualism:
- American Style: American negotiators often focus on individual achievements and goals. There’s an emphasis on personal responsibility and accountability.
- Advice for Brazilians: Highlight how the negotiation benefits both parties on an individual level. Understand that American counterparts might prioritize personal or corporate success.
4. Legal and Contractual Precision:
- American Style: Americans rely heavily on legal contracts and precise terms. They tend to be meticulous about the specifics of a deal.
- Advice for Brazilians: Be prepared for detailed contracts. Ensure you understand and agree to all terms before signing. Legal counsel may be advisable.
5. Competitive Approach:
- American Style: Negotiations in the U.S. can be competitive, with a focus on winning or achieving the best possible deal.
- Advice for Brazilians: Be ready for assertive tactics and competitive strategies. Maintain a balance between competitive spirit and collaborative efforts to reach a mutually beneficial agreement.
6. Decision-Making Process:
- American Style: Decisions are often made quickly and can be top-down. The hierarchy in companies is usually respected.
- Advice for Brazilians: Be prepared to make decisions or reach agreements promptly. Understand who the decision-makers are and tailor your proposals accordingly.
5. Overcoming Cultural Differences
- Research and Preparation: Before entering negotiations, research the specific company and the individuals involved to understand their business culture and expectations better.
- Cultural Sensitivity: Be open and respectful towards the American business culture while also sharing insights about Brazilian business practices.
- Communication Style: Adapt your communication style to be more aligned with American directness, while also clearly explaining any Brazilian negotiation nuances.
- Building Relationships: While Americans may be more transactional, building a rapport and trust is still beneficial. Small talk and personal connections can be valuable, especially in establishing long-term business relationships.
- Flexibility and Adaptation: Be flexible and ready to adapt your strategy if you notice that certain approaches are more effective with your American counterparts.
6. Feedback (Lets talk)
- How did you find the class?
- Do you now feel confident to use “give and take” in business dealings?
- What feedback can you give me?