Introduction to Negotiation Strategy
At Oak Spring University, we provide corporate level professional Negotiation Strategy and other business case study solution. Verizon Reimagines Corporate Real Estate case study is a Harvard Business School (HBR) case study written by Josh Lehr, Pau Amigo, M. Julia Prats. The Verizon Reimagines Corporate Real Estate (referred as “Tousignant Verizon” 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, Decision making.
Negotiation strategy solution for case study Verizon Reimagines Corporate Real Estate ” 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 late October 2015 James Tousignant, Director of Transactions and Real Estate Development for Verizon Global Real Estate, was sitting in his office at Verizon?s headquarters in Basking Ridge, NJ' a sprawling 1.4 MM square foot megaplex of 80's construction. The compound was made up of nine building-wings and a central core to serve food to over 5,000 employees each day. As he looked out his office window he pondered what he should do. Verizon had spent significant resources and energy developing their campus master plan and Verizon's new way to work within them, but had overlooked a large share of the administrative portfolio (small offices under 50K square feet) which made up two thirds of Verizon's portfolio by count, housed over 8,500 employees, and represented $62 million in annual operating cost.The next morning Tousignant would present a plan to John Vasquez, Verizon's Global Head of Real Estate, that should solve the problems with the small office portfolio as well as align the portfolio with the greater enterprise's strategic goals. Tousignant wondered if he should move forward with the plan or reconsider if the risks outweigh the benefits. Tousignant knew that if he did, the strategy would mean a strong departure from traditional corporate real estate. He would spend the rest of the night carefully reviewing the strategy, implementation, and of course the benefits, risks, and alternatives. It would be a night of Keurig and energy bars.
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 “Verizon Reimagines Corporate Real Estate” 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 “Josh Lehr, Pau Amigo, M. Julia Prats”, 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 “Verizon Reimagines Corporate Real Estate ”, 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 “Verizon Reimagines Corporate Real Estate” can make for an effective negotiation strategy and will make it easier to negotiate with this party the next time as well.
Josh Lehr, Pau Amigo, M. Julia Prats (2018), "Verizon Reimagines Corporate Real Estate Harvard Business Review Case Study. Published by HBR Publications.
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