Introduction to Negotiation Strategy
At Oak Spring University, we provide corporate level professional Negotiation Strategy and other business case study solution. Ujaala Borderline General Insurance Company Limited case study is a Harvard Business School (HBR) case study written by W. Glenn Rowe, Lyn Purdy, Uhnat Kohli. The Ujaala Borderline General Insurance Company Limited (referred as “Ujaala Borderline” from here on) case study provides evaluation & decision scenario in field of Strategy & Execution. It also touches upon business topics such as - negotiation strategy, negotiation framework, Influence, Leadership.
Negotiation strategy solution for case study Ujaala Borderline General Insurance Company Limited ” provides a comprehensive framework to analyse all issues at hand and reach a unambiguous negotiated agreement. At Oak Spring University, we provide comprehensive negotiation strategies that have proven their worth both in the academic sphere and corporate world.
What’s my BATNA (Best Alternative To a Negotiated Agreement) – my walkaway option if the deal fails?
What are my most important interests, in ranked order?
What is the other side’s BATNA, and what are his interests?
"In the last two years Ujaala Borderline had lost two key accounts and lost in the bidding process for a third large account. Ujaala Borderline's CEO and Executive VP Corporate Sales (Indian and MNC business) had just left a meeting with the firm's largest client - Sweekar Iron and Steel. Sweekar's CEO had informed them that he was taking his firm's business from Ujaala Borderline and going with another provider. The CEO had pointed out several servicing issues that had occurred over the last two years and considered that these issues had been ignored. First, there were errors in policies and several problems with delivery. Second, because of Ujaala Borderline's many organizational changes, managers at Sweekar were required to interact with several Ujaala Borderline staff - this issue was compounded by the claim from each Ujaala Borderline staff member that they owned the Sweekar account. Third, there were several mistakes in quotes. Fourth, Sweekar had three different relationship managers in four years because of the high staff turnover at Ujaala Borderline. Finally, a recent claim had not been settled to Sweekar's satisfaction. As the CEO left the meeting, he wondered what had happened. He had recently been profiled in a national newspaper as the CEO of the leading general insurer in India but now felt that he was embroiled in changes that he knew he had created. As he was thinking about the meeting with Sweekar's CEO and recent events he almost collided with an auto rickshaw. If Dhirender had not shouted a warning there probably would have been a collision. The CEO now realized that Ujaala Borderline had many problems and he knew that he had to act quickly and decisively to turn things around or else his job was at risk."
By interests, we do not mean the preconceived demands or positions that you or the other party may have, but rather the underlying needs, aims, fears, and concerns that shape what you want. Negotiation is more than getting what you want. It is not winning at all cost. Number of times Win-Win is better option that outright winning or getting what you want.
Options are the solutions you generate that could meet your and your counterpart’s interests . Often people come to negotiations with very fixed ideas and things they want to achieve. This strategy leaves unexplored options which might be even better than the one that one party wanted to achieve. So always try to provide as many options as possible during the negotiation process. The best outcome should be out of many options rather than few options.
When soft bargainers meet hard bargainers there is always the danger of soft bargainers ceding more than what is necessary. To avoid this scenario you should always focus on legitimate standards or expectations. Standards are often external and objective measures to assess the fairness such as rules and regulations, financial values & resources , market prices etc. If the negotiated agreement is going beyond the industry norms or established standards of fairness then it is prudent to get out of the negotiation.
Every negotiators going into the negotiations should always work out the “what if” scenario. The negotiating parties in the “Ujaala Borderline General Insurance Company Limited” has three to four plausible scenarios. The negotiating protagonist needs to have clear idea of – what will happen if the negotiations fail. To put it in the negotiating literature – BATNA - Best Alternative to a Negotiated Agreement. If the negotiated agreement is not better than BATNA then there is no point in accepting the negotiated solution.
One of the biggest problems in implementing the negotiated agreements in corporate world is – the ambiguity in the negotiated agreement. Sometimes the negotiated agreements are not realistic or various parties interpret the outcomes based on their understanding of the situation. It is critical to do negotiations as water tight as possible so that there is less scope for ambiguity.
Many negotiators make the mistake of focusing only on the substance of the negotiation (interests, options, standards, and so on). How you communicate about that substance, however, can make all the difference. The language you use and the way that you build understanding, jointly solve problems, and together determine the process of the negotiation with your counterpart make your negotiation more efficient, yield clear agreements that each party understands, and help you build better relationships.
Another critical factor in the success of your negotiation is how you manage your relationship with your counterpart. According to “W. Glenn Rowe, Lyn Purdy, Uhnat Kohli”, the protagonist may want to establish a new connection or repair a damaged one; in any case, you want to build a strong working relationship built on mutual respect, well-established trust, and a side-by-side problem- solving approach.
According to
Harvard Business Review
, there are three types of negotiators – Hard Bargainers, Soft Bargainers, and Principled Bargainers.
Hard Bargainers – These people see negotiations as an activity that they need to win. They are less focused less on the real objectives of the negotiations but more on winning. In the “Ujaala Borderline General Insurance Company Limited ”, do you think a hard bargaining strategy will deliver desired results? Hard bargainers are easy to negotiate with as they often have a very
predictable strategy
Soft Bargainers – These people are focused on relationship rather than hard outcomes of the negotiations. It doesn’t mean they are pushovers. These negotiators often scribe to long term relationship rather than immediate bargain.
Principled Bargainers – As explained in the seven elemental tools of negotiations above, these negotiators are more concern about the standards and norms of fairness. They often have inclusive approach to negotiations and like to work on numerous solutions that can improve the BATNA of both parties.
Open lines of communication between parties in the case study “Ujaala Borderline General Insurance Company Limited” can make for an effective negotiation strategy and will make it easier to negotiate with this party the next time as well.
W. Glenn Rowe, Lyn Purdy, Uhnat Kohli (2018), "Ujaala Borderline General Insurance Company Limited Harvard Business Review Case Study. Published by HBR Publications.
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