Hardball Negotiation:

Implementing Strategies in
Extreme Negotiations

Presented By:
EPGDIB 2015-17, Section-A
Arnab Basu (Roll No-8A)
Gurpreet Singh (Roll No-17A)
Ivneet Singh (Roll No-18A)
Piyush Mani (Roll No-28A)
What are Extreme Negotiations?
Negotiation is a dialogue between two or more people or parties intended
to reach a beneficial outcome. The outcome here could be beneficial for all
the parties or a few involved in them.
The main agenda for negotiation is through the dialogue resolve disputes,
produce agreement, for collective advantage to satisfy various needs.
These days in pursuit of competitive advantage many firms employ
strategies designed to rout not simply beat the competitors.
Extreme Negotiations are when the stakes and risks are
especially high.

Examples
Resolving dispute with a Joint Venture.
Negotiation with top customers who
threaten to leave.
Negotiation with monopoly supplier.
Negotiation with stubborn labor unions.
Negotiation with criminals, terrorists or
extremists
Ground Work for Extreme Negotiations
Each Partys What
What are
Are
are our
our interests?
interests? What
What might
might bebe theirs?
theirs?
Are there third party whose interest need to
there third party whose interest need to be
be considered?
considered?
Interest Which
Which interest
interest are
are shared,
shared, which
which different
different and
and which
which conflict?
conflict?
What
What is
is our
our BATNA?
BATNA?
Alternatives What
What is
Can
is other
other partys
partys BATNA?
BATNA?
Can we
we improve
improve our
our BATNA?
BATNA? Can
Can we
we worsen
worsen theirs?
theirs?

Brainstorm What
What possible
possible agreements
satisfy
satisfy all
agreements or
all parties?
parties?
or pieces
pieces of
of an
an agreement
agreement might
might

Solutions What
What solution
solution can
can we
we propose?
propose?

Legitimate What
What external
external criteria
criteria might
might plausibly
plausibly be
be relevant?
relevant?
Solution What
What standards might apply?
standards might apply?

Identify What
What are
what
are our
are
our level
level of
theirs?
what are theirs?
of authority
authority to
to make
make commitments
commitments and
and

Commitments What
What are
are some
some illustrative
illustrative and
and well
well crafted
crafted commitments?
commitments?

Analyze Which
Which relationship
like
relationship matters?
like them
them to
to be?
be?
matters? How
How is
is each
each now?
now? How
How would
would we
we

Relationships What
What can
can we
we do
do to
to bridge
bridge the
the gap
gap at
at low
low cost
cost and
and risk?
risk?
What
What dodo we
we want
want to
to communicate?
communicate? HowHow can
can we
we do
do so
so
Communication persuasively?
persuasively?
Strategy What
What dodo we
listening?
listening?
we learn
learn from
from them?
them? How
How can
can we
we improve
improve our
our
Strategy-1: Understanding the Big Picture
Negotiators in dangerous situations try to act fast to reduce the perceived level
of threat.
They often dive into discussions before theyve fully assessed the situation.
negotiating on the basis of incomplete or incorrect information which often
leads to conflict, impasse, or a solution that addresses only part of the problem
or opportunity.
Toyota Kirloskar Employees Union Negotiation
The trouble started in February when 4,500 grade-
eight workers went on a go-slow to press for demands
including a wage revision for 2013-14. The company
declared a lockout from March 16 and called it off on
March 24, with the condition that the employees sign a
good-conduct undertaking. The Toyota Kirloskar Motor
Employees Union demanded the withdrawal of
suspension of 30 workers and lifting of the lockout
unconditionally.
The Toyota management did not go for the
further to the point of understanding the
demand for wage revision along with other
demands instead took a rapid decision of
locking out.
The declaration of the lock out not only
hampered the production levels but strained
the negotiation process to an extent of hunger
 Statergy-2: Uncover &
Collaborate
Extreme negotiators should try to discover the other side's concerns and what
motivates them. Then they can propose numerous solutions and invite their
counterparts to improve them.
As well as pressuring people to act fast, a threatening situation makes them
want to look strong and more in control than they probably are. In this state of
mind, negotiators tend to stake out extreme positions and make aggressive
demands, which almost always triggers or exacerbates resistance from the
other side.
The skilled negotiator focuses on turning negotiation into side-by-side problem
solving rather than a test of wills.
The Jet Etihad deal
Jet was in serious trouble with a loan over
13200.00 crores.It not only got $750million
dollar loan but at a cheap rate of 3%.
Etihad as a skilled negotiator valued Jet above
the market price but also involved jet into joint
purchasing opportunities and supporting in
areas of insurance and maintenance.
Etihad could have made an unjust offer
understanding Jets critical condition but it took a
step by step approach with a long term goal in
the mind .
 Statergy-3 : Elicit Genuine
Buy In
To "elicit genuine buy-in
persuasion using facts and fairness wins over brute force.
negotiators should be armed with ways to defend their
decisions
set useful precedents for negotiations in the future.

A failure to engage with Putin

Despite years of interactions with the man, world leaders seemed mystified
by Russian president Vladimir Putin and his brazen incursion into Crimea in
2014.

A failure to acknowledge and address Western slights, as perceived by Putin,

led to breakdown in communication that has left Russia isolated and
unpredictable.

Putin failed to elicit a genuine buy in from his western counterparts about his
concerns relating to geopolitical security to Russia.

He abandoned the approach of using facts & resorted to brute force to

relationships that are based on
trust rather than fear.
Dealing with relationship issues head-on, making gradual commitments
and encouraging cooperation.
Skilled extreme negotiators "never make arbitrary concessions in an
effort to buy goodwill" and instead "build trust over time through
incremental and reciprocal commitments

Food subsidies still haunt India at WTO

Under Agreement on Agriculture (AoA), developing
countries can give agricultural subsidies or
aggregate measurement support (AMS) up to 10 per
cent of the value of agricultural production.
The Peace Clause
Under the peace clause, if a developing country
gives agricultural subsidies in excess of 10 per cent
of its agri-GDP, no member will challenge this until
2017 when WTO would look for a permanent
solution to address their food security concerns.
Team Modi recognised that Bali agreement was
flawed. it insisted on a time bound action plan to
address the food procurement subsidy issue.
That was considered too ambitious by US.
However, the WTO-GC in its meeting held on
December 10-11, 2014, approved extension of
peace clause till such time a permanent
solution is put in place.
 Typical Hardball Tactics

Good guy/Bad guy

Negotiators using this tactic can become so involve with their game and
act they fail to concentrate on obtaining their goals
High ball/ Low ball
Starts with a ridiculously high/low opening offer that know they will never
achieve.
The tactics goal is have the other party re-evaluate their opening offer and
move closer to the resistance point.
Bogey
When a negotiator pretends an issue is important when actually it is not.
It works well only if they pick up issue which is important to other issue.
Nibble
Is a tactic used to get small concession without negotiating.
The concession is too small to lose the deal over, but large enough to upset
the other side
 Typical Hardball Tactics

Chicken
Negotiators who use this tactic combine a large bluff &
threaten actions.
Intimidation /Aggressive Behaviour
If you are making a concession, because you assume the other
party is more powerful, or simply accepts the legitimacy of the
other negotiator, as the books says you are INTIMIDATED.
Aggressive behavior is similar accept it is the relentless pushing.
Snow Job
Is the Governments favorite tactic when releasing information to the
public.
It is the overwhelming of information that you have trouble
determining which facts are real or important.
Learning & Conclusion
In case each side adopts extreme position, knowing that it will not be
accepted then employees a combination of bluffing, guile and
brinkmanship in order to cede it as little as possible before reaching the
deal which defines the Extreme negotiation environment.
Hardball tactics are designed to pressure targeted parties will do
things they would not otherwise do, these are the methods which
changed the outcome of distributive bargaining process.

Ethical negotiators consider these tactics out of bounds for any

situation

It is important to research the other party, Set Objectives,

Develop options& tradeoffs, anticipate Questions, objections &
prepare answers before hand to avoid the extreme negotiatons.

More than time, these strategies require patience and

persistence. What often takes more time is the non-constructive
behavior.