Introduction to Negotiation Strategy
At Oak Spring University, we provide corporate level professional Negotiation Strategy and other business case study solution. Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands case study is a Harvard Business School (HBR) case study written by Laura Winig, Julie Boatright Wilson. The Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands (referred as “Rotterdam Program” from here on) case study provides evaluation & decision scenario in field of Innovation & Entrepreneurship. It also touches upon business topics such as - negotiation strategy, negotiation framework, Generational issues, Growth strategy, Human resource management, Social enterprise.
Negotiation strategy solution for case study Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands ” 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?
Board Chair Nanne Boonstra was about to learn the details of a scaling strategy proposal for Mothers of Rotterdam, a fledgling social service program that helped the city's disadvantaged pregnant women. Boonstra's employer, a venture philanthropy foundation that was funding the program, was interested in whether it was feasible to scale the pilot program throughout Rotterdam. Other stakeholders hoped the program might be replicated elsewhere in the Netherlands or even within other European countries. Boonstra knew that some stakeholders were concerned about scaling too early-before research determined if the program was effective and for whom. He hoped that the consulting firm hired to design the scaling strategy would be able to answer the board's many questions about how best to move forward. How do you turn an innovative start-up program into a structured professional program without losing the passion and energy that comes from its founders? How do you go from a start-up to a more structured, formalized organization? Is the program's inventor the right person to scale the program? How long does a program need to run to determine whether it is effective? Is it necessary/advisable to scale the program in Rotterdam first, and focus on replicating the program in other cities afterwards or can this happen in parallel? Is there a risk of other cities trying to copy the program without guidance from the Rotterdam staff and "not getting it right"? The case goes on to unfold the story of Mothers of Rotterdam-an entrepreneurial social service program based in the Netherlands-from its inception through the board of directors meeting. The program's stakeholders, eager to broaden the impact of Mothers of Rotterdam grapple with how the program can best be scaled up. Of significance is the role of the organization's charismatic founder, Barend Rombout, who is credited with driving the program's successful-if unorthodox-approach to social service delivery. Case number 2128.0
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 “Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands” 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 “Laura Winig, Julie Boatright Wilson”, 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 “Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands ”, 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 “Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands” can make for an effective negotiation strategy and will make it easier to negotiate with this party the next time as well.
Laura Winig, Julie Boatright Wilson (2018), "Mothers of Rotterdam: Scaling a Social Services Program in the Netherlands Harvard Business Review Case Study. Published by HBR Publications.
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