Introduction to Negotiation Strategy
At Oak Spring University, we provide corporate level professional Negotiation Strategy and other business case study solution. Recruit Japan: Harnessing Data to Create Value (Abridged) case study is a Harvard Business School (HBR) case study written by Howard H. Yu, Thomas W. Malnight, Ivy Buche. The Recruit Japan: Harnessing Data to Create Value (Abridged) (referred as “Recruit Platforms” 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, Innovation, IT, Marketing.
Negotiation strategy solution for case study Recruit Japan: Harnessing Data to Create Value (Abridged) ” 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?
Recruit Holdings, Japan's largest staffing firm and a leading marketing media company started out in the early 1960s as an advertising company publishing magazines for jobseekers. It scaled up over the following decades to add business verticals such as real estate, bridal, travel, beauty salons and restaurants. Spurred by the internet revolution in the early 2000s, Recruit launched job boards and websites for its diverse media businesses while also moving content online by digitizing many of its popular magazines. In the early 2010s, it transitioned into becoming a service provider with the launch of a number of web-based platforms that allowed SMEs to digitize several key activities, such as point-of-sale registers, reservations and payments. By 2015 Recruit's digital platforms had gained significant popularity and the company was generating enormous amounts of online data on types of transactions, end-user behaviors and SME business characteristics. It also held significant deep offline data that resided within the sales team. However, the platforms and the data was specific to individual businesses. Recruit began to push for a unified backbone platform that would cut across all businesses with vertically stacked integrated solutions. It also established an artificial intelligence (AI) research laboratory in Silicon Valley. The mandate was to apply the latest technologies in data analytics, machine learning and AI to achieve breakthrough innovation. At the same time, Recruit harbored global aspirations and embarked on international expansion, mainly through acquisitions. Its goal was to become the world's largest staffing firm by 2020 and the largest media company by 2030. Could Recruit replicate its business model successfully overseas? Could it leverage its people and technological platforms to transform itself into a truly global internet corporation? Could it cannibalize its existing businesses through data-driven innovations to leapfrog into the future?
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 “Recruit Japan: Harnessing Data to Create Value (Abridged)” 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 “Howard H. Yu, Thomas W. Malnight, Ivy Buche”, 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 “Recruit Japan: Harnessing Data to Create Value (Abridged) ”, 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 “Recruit Japan: Harnessing Data to Create Value (Abridged)” can make for an effective negotiation strategy and will make it easier to negotiate with this party the next time as well.
Howard H. Yu, Thomas W. Malnight, Ivy Buche (2018), "Recruit Japan: Harnessing Data to Create Value (Abridged) Harvard Business Review Case Study. Published by HBR Publications.
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