Distinguish the differences between two-party negotiations and multiparty negotiations.

Distinguish the differences between two-party negotiations and multiparty negotiations.

Review the following cases and address the following using the rubric below:

Issue or Problem in the case
Facts in Case
Distinguish the differences between two-party negotiations and multiparty negotiations in the Case
Negotiated Solution

Case 1:

Here is an example of a very difficult situation with a [negotiators] member of his own team before joining us at K&R.

Hanks client had put together a strong team to negotiate a deal with an Israeli company. This was one of his clients biggest deals ever in the country; huge commissions were riding on it. The client had a local negotiator in Israel who was very talented, but also very strong-willed. Well call him Attila. As a result of his inability to be flexible when necessary, the deal was stalling. Hank was called in to take over the lead negotiator role.

Hank met with the entire client team in Israel. After assessing the situation, he formulated an updated negotiation strategy. It was clearly explained to Attila that Hank was now in charge and that Attila would take the important second chair. When conducting our meetings with the customer, all information was to be funneled through Hank. Attila agreed to this approach. On the way to the first meeting, Attila was reminded that he had an important roleto cover the financialsbut that Hank would take the lead. It was repeated four times. Attila agreed four times.

We walked into the meeting room and Attila sat four seats away from Hank despite the explicit understanding that Attila was to man the second chair. Hanks team sat down anyway and explained the roles of everybody from their team.

Just a few minutes after the other sides lead negotiator began speaking, Attila interrupted him. Hank stopped him after a few words, politely explaining that our client was speaking and not to interrupt him. A few minutes later, Attila interrupted the client again. The third time he did it, Hank stopped him at the first word. Attila jumped up and stormed out of the room. Attila did not yet know Hanks approach or skills well enough; he also had a huge commission riding on the outcome. Nonetheless, we had to manage this internal conflict to not only keep order and focus, but maintain credibility with the other side and the rest of our team.

The team across the table smiled when they saw that Hank and his team were going to proceed without Attila. As negotiations unfolded over the following days, Attila was kept in the loop as to the latest developments, but out of the meetings. Over this time, Attila realized he was wrong and overcame his misgivings about Hanks approach to the process. The following week, Attila was ready to rejoin the meetings. He lent his particular expertise and helped the team close the deal.

Case 2:

We were representing a buyer of equipment from a Chinese company. We were buying, not selling. Harvey was in the second seat, sitting across from the most senior negotiation on the opposing team. Well call him Lu Jiang. He was serving as a mentor for a much younger team member, Chang Lee, who was the lead negotiator for the Chinese team. As the mentor, Lu Jiang had a lot of face riding on this negotiation.

At the end of a long negotiation day, the head of our team said, Now we will have to address the process of the negotiation.

Chang Lee said something important, but off the topic. Our lead negotiator jumped on the remark and said tersely, Lets not talk about that now. We have to address the process. The entire team from the Chinese company was shocked. Lu Jiang was clearly offended. Chang Lee had lost face not only in front of his team but also in front of his mentor. This was serious to the Chinese, who place a premium on face.

K&R Negotiations co-founder, Harvey, understood that we would never get anywhere unless we could help the Chinese team save face. So he turned to the lead negotiator and said, Chang Lee makes an excellent point. We will have to address his point before we finish today. Harveys comment pumped air back into their entire team. Lu Jiang supported that comment and praised his lead negotiator for making a good point. Humiliation was avoided, harmony restored, and the negotiation continued.

Cases authored by K&R Negotiation Associates.

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