Restaurant Rancor

SCENARIO:

Casey Andrews and Kelly Handler have both worked in the American Cafe for about four months. They often work the same shifts and have become friends. Just today Casey complained to the manager about how tips are split. The current system is for waiters to pool their tips at the end of the shift and divide them equally. Casey has noticed that Kelly has been late recently, and that she has had to pick up the slack. Kelly is surprised to hear that Casey has problems with the tips. The manager told them that the restaurant will go along with anything that seems reasonable.

 

MAJOR LESSONS:

  • The power of good preparation is extremely clear.
  • Mutual feelings of betrayal by a friend complicate matters.
  • The two have to continue to work together and with the other people at the restaurant.
  • They have to come up with a policy for the entire wait staff.

Rosenberg v. Lincoln Landscaping

SCENARIO:

Mr. & Mrs. Rosenberg purchased a home in Brookline. The landscaper of that property, Ronnie Lincoln telephoned the Rosenbergs to see if they wanted to employ his company's services in the same manner as the prior owners. Seemingly, an agreement was made between Mrs. Rosenberg and Mr. Lincoln to continue the landscaping service. After several billings, Lincoln pursued his clients for payment. A discrepancy surrounding the quality of the work and the actual agreement made has arisen between the Rosenbergs and Lincoln. The landscaper believes that he has done his best to make amends. However, Mr. Rosenberg interprets these actions as concessions to his point of view, and thus far has refused to make any payment to Lincoln Landscaping. The matter finally ends up in small claims court.

 

MECHANICS:

This mediation role play takes about 10 – 15 minutes for reading and preparation. It can either be simulated with a mediator as a one-on-one or two-on-one. The actual role play can run from 30 to 45 minutes. Videotaping can be helpful for observation and review.

 

MAJOR LESSONS:

  • This case is useful for small claims mediators. It shows how a misunderstanding can develop due to lack of information and awareness of local customs. These factors provide an opportunity for mediators to test their information gathering skills.
  • During debriefing, discussions may arise concerning mediator's bias. The mediator can easily adopt the view that advantage has been taken of one of the parties. The intervenor then has the challenge to generate options for a good outcome that is mutually beneficial to both parties.
  • Participants may discuss the value of a written contract versus an oral agreement. The element of trust is illuminated here, as well as the value of re-establishing a good business relationship.

 

TEACHING MATERIALS:

Role Specific:

Confidential Information for:

  • Dr. Julian Rosenberg
  • Ronnie Lincoln
  • Mediator

 

Teacher's Package:

  • All of the above

 

PROCESS THEMES:

Anchoring; Assumptions; Commitment; Cost-benefit analysis; Communication; Credibility; Drafting; Fairness; Information exchange; Interpersonal skills; Legitimacy; Meaning of "success"; Mediation; Meeting design; Message analysis; Misrepresentation; Nonverbal communication; Objective criteria; Options, generating; Personality; Reality testing; Relationship

MORE PRODUCTS BY PAT AARON:

Dirty Laundry
Smithfield v. Rudfurd's Home Repairs

Salary Negotiation

SCENARIO:

This case calls for fine interpersonal skills in balance assertiveness and relationship maintenance. What general guidelines seem applicable for preserving a good working relationship?

The problems of power imbalance, typical in employee relations, are highlighted.

This exercise is an excellent vehicle for comparing principled negotiation and positional bargaining. Depending on the skill of the other negotiator, both approaches can do well.

 

TEACHING MATERIALS:

Participant Materials:

  • General Information
  • Sandy Tanner, Director of Mail Order Sales
  • Pat Lynch, V.P. of Marketing

 

Teacher's Package:

  • All of the above
  • No Teaching Note currently available

Sally Soprano I

NEW – ALL-IN-ONE CURRICULUM PACKAGE 

If you are new to teaching negotiation or are looking to go in-depth on the fundamental negotiation concepts, the Sally Soprano All-In-One Curriculum Package will provide you with everything you need to teach negotiation.

The All-In-One Curriculum Package makes it easy to teach negotiation, track learning outcomes, and includes materials for the instructor as well as for students.

Materials include: 

  • Instructor’s Guide – Guide for instructors on negotiation concepts, simulation logistics, and debriefing simulation participants.
  • Instructor Background Reading List – List of background readings for instructors to complete before using the simulation to gain a better understanding of the negotiation concepts.
  • Student Background Reading List – List of background readings for students to complete before the simulation to gain understanding of the negotiation concepts.
  • Confidential Role Instructions – Confidential role-specific materials for participants in the exercise.
  • Pre-Negotiation Surveys – After completing the background reading and/or presentation of the negotiation concepts, participants complete the online Pre-Negotiation Survey to benchmark their understanding of the key learning points the game is intended to teach.
  • Agreement Outcome Form – Participants reporting the results of any agreements reached in the simulation.
  • Post-Negotiation Survey – After finishing the simulation, but before the debrief, participants fill out the Post-Negotiation Survey so Instructors can gauge participants understanding of the issues and concepts.
  • Class PowerPoint Presentation – The first part of the PowerPoint slide deck is for the instructor to use to introduce negotiation concepts, how to participate in a negotiation simulation, and Sally Soprano. The second part is for the instructor to use in debriefing the simulation with participants.
  • Feedback Survey – At the conclusion of the exercise, participants can give feedback on the process and outcomes.

The Sally Soprano All-In-One Curriculum Package requires a minimum of 90 minutes of class time, but is best run in a two and half or three-hour class. To order this package, you must purchase a minimum of ten copies. A separate copy must be purchased for every participant in the exercise. The materials are all single use and must be re-purchased for subsequent uses.

SCENARIO

Sally Soprano is a distinguished soprano who is now somewhat past her prime. She has not had a lead role in two years but would like to revive her career. The Lyric Opera has a production scheduled to open in three weeks, but its lead soprano has become unavailable. Lyric’s representative has requested a meeting with Sally’s agent to discuss the possibility of hiring Sally for the production. Neither knows much about the other’s interests or alternatives. There is a wide range of possible outcomes.

NOTE This exercise is a modified version of the exercise Sally Swansong I, developed by Norbert S. Jacker and Mark N. Gordon. Sally Swansong I is still available upon request. The Spanish, Swedish, and Dutch translations are based on the original Sally Swansong exercise. See also Theotis Wiley, a variation of this simulation set in the context of a potential endorsement contract between a basketball player and an athletic shoe company.

TEACHING MATERIALS 

Materials for the standard version include:

  • Confidential Instructions for:
    • Sally Soprano’s Agent
    • Lyric Opera’s Business Manager
  • Post-negotiation handouts:
    • Some possible criteria for establishing salary
    • Some creative options
  • Teacher’s Package includes:
    • All of the above
    • Teaching Note

PROCESS THEMES Anchoring; Attorney/Client relations; Authority; BATNA; Bluffing; Confidentiality; Constituents; Fairness; Information exchange; Interests, dovetailing; Lawyering; Legitimacy; Meaning of “success”; Misrepresentation; Objective criteria; Offers, first; Options, generating; Pareto optimization; Precedents; Risk aversion; Risk perception; Systems of negotiation; Trust

MAJOR LESSONS

This exercise is an excellent vehicle for comparing principled negotiation and positional bargaining.

The knowledge that one’s BATNA is weak often leads people to negotiate much less vigorously than they otherwise would. Is this ever justified? If so, under what conditions? The case affords a good opportunity to point out that any such analyses should be based on a consideration of the parties’ relative BATNAs.

The available data allow a number of more or less equally persuasive arguments about what a “fair” salary would be. This is at a minimum good practice in developing and using objective criteria. Beyond that, the case presents the more difficult challenge of finding an objective basis with which to judge the applicability of alternative objective criteria.

Good negotiators put the distributive issues in this case in perspective and reduce their importance by dovetailing interests with creative options that expand the pie. This case has an enormous potential range of such creative options.

Since the case does have a strong competitive element, there is ample opportunity to explore techniques for indirectly and directly extracting information from the other side. Likewise, techniques of protecting oneself from “giving up” the possibility for gains that were unforeseen can be explored and discussed.

SIMILAR SIMULATIONS

 

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 Sally Soprano Enhanced Package click here.

Sally Soprano II

SCENARIO:

Basic facts are the same as in Sally Soprano I, except that as a result of a discussion between Sally and the Lyric Opera's Artistic Director, all available information is known by both sides. The principals have left their agents to work out the details of a deal, knowing that something mutually advantageous is possible.

NOTE: This exercise is a modified and improved version of the exercise Sally Swansong II, developed by Norbert S. Jacker, Deborah Winter and Bruce Patton. Sally Swansong II is still available upon request.

 

MECHANICS:

This negotiation is best one-on-one, although two-on-two is possible. Allow 10 to 30 minutes for negotiation. Sally II is usually done as a follow-up to Sally Soprano I with 5-10 minutes preparation and a 20 minute negotiation. The language of the case does not specify whether the negotiators are lawyers or not. Allow at least a half-hour for debriefing. Discussion can extend much longer (up to two hours).

 

MAJOR LESSONS:

This case is a litmus test of what participants believe, on an unconscious psychological level, constitutes success in a negotiation. Is it "winning," doing better than the other side, or is it achieving an objectively good outcome, one that satisfies your client's interests about as well as possible? Some participants with a competitive orientation will not settle this case, although that is against the interests of both clients. The question is usually framed, before handing out the case, "Would more information make this case easier or more difficult to negotiate? Participants' answers correspond to their orientation on "success"–"good outcome" negotiators say "easier", competitive bargainers say "harder."

 

TEACHING MATERIALS:

For all parties:

  • General Instructions

 

Teacher's Package:

  • All of the above
  • Teaching Note

 

PROCESS THEMES:

Anchoring; Attorney/Client relations; Authority; BATNA; Constituents; Fairness; Interests, dovetailing; Lawyering; Legitimacy; Meaning of "success"; Misrepresentation; Objective criteria; Offers, first; Options, generating; Pareto optimization; Precedents; Risk aversion; Risk perception; Systems of negotiation

Smithfield v. Rudfurd’s Home Repairs

SCENARIO:

Rudfurd's Home Repairs was contacted by John Smithfield to perform an estimate on porch repairs. Upon the arrival of the company workers, it was determined that a hole would have to be placed in the top of the ceiling of the porch in order to assess the extent of the wood rot. The Smithfields had no problem with this, as long as the hole could be repaired. A communication breakdown occurred between the Smithfields and Rudfurd surrounding the repair of the hole and Mr. Smithfield has filed a claim in small claims court.

 

MECHANICS:

This mediation exercise takes about 10-15 minutes for reading and preparation. It is a one-on-one simulation and takes approximately 20-45 minutes for the actual mediation. Videotaping can be helpful for self-evaluation and group review. "A Brief Outline of the Mediation Process," in Other Materials, is useful as background reading for the mediator. "An Actual Small Claims Mediated Agreement," is useful as follow-up reading, especially if mediators have been asked to draft any agreement reached. (Hand this out after the mediators have finished their own try at drafting).

 

MAJOR LESSONS:

  • This case is useful as a teaching tool for small claims mediators. Mediators can test their skills in dealing with parties who feel that court is a waste of time and the procedural process invalidates the notion of fairness.
  • Participants should be able to generate creative options after assessing the interests of the participants involved. It is appropriate to use objective criteria and to also consider Smithfield's BATNA.
  • In considering the meeting design, the mediator can should assess the value of caucuses, as well as test his or her skill in making the parties view and understand the other party's interests.

 

TEACHING MATERIALS:

Role Specific:

Confidential Information for:

  • Smithfield
  • Rudfurd
  • Basic Fact Sheet for Mediator

 

Teacher's Package:

  • All of the above

 

PROCESS THEMES:

Anchoring; Assumptions; Commitment; Communication; Credibility; Drafting; Fairness; Information exchange; Interpersonal skills; Legitimacy; Mediation; Meeting design; Message analyst; Misrepresentation; Nonverbal communication; Objective criteria; Options, generating; Personality; Reality testing

Solar Power

SCENARIO:

The potential acquirer of a technology firm wishes to participate in a fantastically huge project for the production of renewable energy in Northern Africa and the Middle East (Desertec). The acquisition target is viable, yet its owners lack the resources to continue to compete. The exercise condenses the acquisition down to the lone issue of price. Based on a real case, the exercise is best used at the beginning of a course. It covers all basics of distributive negotiations and allows for deducting the tactics of value distributing from the participant´s results.

 

MECHANICS:

Since the acquisition target is not publically traded –the transaction is a one-off between the parties who will not work together anymore in the future— the outcome of this negotiation is determined by how successful the parties divide their proverbial pie. This serves as an eye-opener to many students, allowing them to see the structural similarities between the multi-million-dollar-transaction at hand and day to day negotiations that they may be more familiar with. At the same time it allows them to check and assess their own performance, attitude, and preferences vis-à-vis the requirements of successful value distribution. Lastly, the exercise offers a glimpse into the world of value creation and segues to the possible next exercises in the course.

 

TEACHING MATERIALS:

Role specific:
Confidential Instructions for:

  • Buyer
  • Seller

 

Teacher’s Package:

  • All of the above
  • Teaching Notes
  • Results Spreadsheet (in Excel format, emailed separately)

 

MAJOR LESSONS:

  • This exercise possesses a very large zone of possible agreement (ZOPA), the concepts of which can thereby be introduced, together with the underlying ideas of BATNA and Reservation Price.
  • Due to the large ZOPA, practically all students will reach an agreement, which is of course good on the one hand, and will allow the students to clearly see the differences in how good their achieved result is on the other hand.
  • Students thereby benchmark themselves against the others, and realize that their success was not determined by differences in information or time, but rather in different behaviors they chose to employ. This typically opens participants up for the discussion of the mechanics of value distribution, and the tactical requirements for mastering this successfully.
  • Especially in the rare cases where an agreement is found outside the ZOPA, the case also lends itself to discussing the boundaries between professional negotiation tactics and unethical behavior. It encourages students to recognize and examine their own unspoken assumptions and attitudes about pie sharing ethics and behavior.
  • The exercise includes one side item that students often catch. (Both parties in the scenario would prefer to keep the existing production site of the seller intact, including keeping his/her staff.) This item can serve as an occasion to drawn the line between distributive and integrative negotiations – and to build a bridge into this upcoming topic in the course.

 

PROCESS THEMES:

Anchoring; BATNA; Bluffing; Closure; Commitment; Compatible issues; Fairness; Information exchange; quantifying; individual gains; Legitimacy; Misrepresentation; Objective criteria; Offers, first; Reservation price; Systems of negotiation; Pie sharing; Value Distribution, tactics of

Tendley Contract

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
  • The consultant

 

Teacher's Package includes:

  • All of the above
  • 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.

Theotis Wiley

SCENARIO:

Theotis Wiley is a promising young basketball player with a checkered past. Erive is a small shoe manufacturing company about to launch a new line of basketball shoes. Erive’s Vice-President of Business Development has asked to meet with Theotis’ agent regarding the possibility of an endorsement deal. Neither party knows much about the other party’s interests or alternatives. NOTE: This simulation was adapted from, and is structurally similar to, the Sally Soprano simulation.

 

MAJOR LESSONS:

  • In this case, both parties have relatively weak BATNAs (“Best Alternative to a Negotiated Agreement”). The case affords a good opportunity to discuss the relationship between BATNA and reservation value (sometimes called a “bottom line”), and the effect of one’s BATNA — and of other party’s BATNA — on the negotiation process and outcome.
  • The available data allow a number of arguments about how much money a “fair” endorsement deal would involve. Participants can practice using objective criteria both as a sword and as a shield, and grapple with the challenge of judging the applicability of multiple objective criteria.
  • The case allows for the creation of various options separate from the contract value issue, which can maximize joint gains for both parties. While the case can be negotiated in a very distributive manner, by focusing only on the salary issue, there is ample room for integrative bargaining.
  • Each party in the case is privy to relevant information of which the other party is unaware, which allows for interesting learning points around information disclosure. On the one hand, substantive information exchange can facilitate value creation. On the other hand, by revealing too much information, on runs the risk of being exploited by the other side.
  • Because the case is structured as a negotiation between representatives rather than principals, it can generate useful discussion regarding the principal-agent tension and other agency issues.

 

TEACHING MATERIALS:

Confidential Instructions for:

  • Theotis Wiley’s Agent
  • Erive’s Vice-President of Business Development
  • Appendix for both parties

 

Teacher’s Package includes:

  • All of the above
  • Teaching Note

TownCenter.com

SCENARIO:

The parties to this negotiation are Richard Smith, the owner of a small start-up software firm, and Niles Anderson, a marketing manager at a large internet software company. Richard has registered the internet domain name "towncenter.com", although — unbeknownst to Niles — he has discontinued his plans to use that name. Niles' company has invested a significant among of money in marketing and advertising for a new online marketplace called "TownCenter.com", but failed to secure the corresponding domain name. Niles and Richard now are meeting to discuss the possible sale of "towncenter.com."

 

TEACHING POINTS INCLUDE:

  • selection and use of criteria
  • impact of making the first offer
  • impact of each party's BATNA
  • the pros and cons of information disclosure

 

Teacher's pack includes:

Confidential Instructions for:

  • Niles Anderson
  • Richard Smith.
  • No teaching note currently available