Introduction to Negotiation Strategy
At Oak Spring University, we provide corporate level professional Negotiation Strategy and other business case study solution. Getting Past the Hype About 3-D Printing case study is a Harvard Business School (HBR) case study written by Jaime Bonnin Roca, Parth Vaishnav, Joana Mendonca, M. Granger Morgan. The Getting Past the Hype About 3-D Printing (referred as “Additive Manufacturing” from here on) case study provides evaluation & decision scenario in field of Technology & Operations. It also touches upon business topics such as - negotiation strategy , negotiation framework, Personnel policies, Technology.
Negotiation strategy solution for case study Getting Past the Hype About 3-D Printing ” 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?
This is an MIT Sloan Management Review article. Although additive manufacturing -also known as 3-D printing -was developed back in the 1980s, lately it has become increasingly talked about as managers look for ways to improve efficiency and reduce production costs. The appeal of additive manufacturing is its potential to reduce the need for expensive materials and energy, cut lead times, and make supply chains more efficient. Despite the promise of additive manufacturing, the authors argue, near-term expectations are overblown. Based on dozens of interviews, study of the literature on the history of materials and process technologies, industry meetings, and factory visits, they have identified three myths that need to be dispelled. The first myth is that additive manufacturing will allow producers to make parts of any complexity as easily and economically as parts that are manufactured in traditional ways (in other words, that it will make complexity "free"). The second myth is that additive manufacturing will prod manufacturing to become local. And the third myth is that additive manufacturing will allow producers to replace mass manufacturing with mass customization. In the authors'view, none of these expectations is likely to be realized in the next few decades. Although the authors say that additive manufacturing will make it easier to design lighter parts with complex geometries and internal cavities, they point to important drawbacks and restrictions. Knowing the parameters of what's possible to produce requires skills that are currently scarce. There are also safety and technical issues. Some of the safety concerns stem from the fact that the technology is new. Although many people are looking for additive manufacturing to bring manufacturing closer to markets and consumers, the authors believe that this scenario has been exaggerated, largely due to economies of scale. Despite expectations that additive manufacturing will bring a decisive shift from mass manufacturing to mass customization, the likelihood that change will occur quickly is slim, the authors say. What's more, they raise questions about how flexible additive manufacturing will be. In theory, a good 3-D printer should be capable of printing a wide range of designs. In practice, though, there may be regulations (particularly in safety-critical applications) about how equipment can be configured.
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, clearly understanding the arbitrage . 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 “Getting Past the Hype About 3-D Printing” 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 (Negotiations options), 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 and other people doing the mediation. According to “Jaime Bonnin Roca, Parth Vaishnav, Joana Mendonca, M. Granger Morgan”, 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 “Getting Past the Hype About 3-D Printing ”, 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 “Getting Past the Hype About 3-D Printing” can make for an effective negotiation strategy and will make it easier to negotiate with this party the next time as well.
Jaime Bonnin Roca, Parth Vaishnav, Joana Mendonca, M. Granger Morgan (2018), "Getting Past the Hype About 3-D Printing Harvard Business Review Case Study. Published by HBR Publications.
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