Mastery Journal: Negotiations and Deal Making

Mastery Journal:

Negotiations and Deal Making

FullSail University

What a month! Negotiation and Deal Making was an incredible class. The instructor Elizabeth Rockhill Counsman, Esq. is a fabulous instructor who is very knowledgeable on this subject. We learned topics such as: the difference between Positions and Interests, what are Dirty Tricks and how to recognize them, why Mutual Benefit is imperative, the benefits of being Prepared, how to use Objective Criteria, what a BATNA (best alternative to a negotiated agreement) is and most importantly, Separating the Person from the Problem. My goal for this class, was to understand how I personally perform in a negotiation setting so that I may build the skills needed to become a more successful negotiator. Ultimately, This class delivered that and more.

Initially, this class was not what I expected. I assumed the focus would be on case studies and papers. Instead, Mrs. Counsman used scenarios in which we role-played specific negotiations. The purpose of these scenarios was to understand how we would handle the outcome of each deal. We had one role-playing exercise each week with a worksheet that accompanied it. The worksheet challenged us to review how the concepts she taught us were applied to the issue. I truly enjoyed getting into character and observing how the other students would play their roles. Having a chance to learn this way gave us the opportunity to apply the lessons she taught and evaluate what our strengths and weaknesses were. It was easy to see from the first negotiation, that the selfish mentality of winning, losing, and bartering came into play. For some students, it was a competition and would ask, “how do you feel you won”, in reference to the outcome of the negation. Strangely however, the outcome was beneficial to both parties and in essence both were winners.

A great example of what we learned is the Orange story. Two kids are arguing for an orange, the mother in her wisdom intervenes and figures out that each child wants the Orange. She determines that the solution is to split it in half. Using this solution both children are 50% satisfied with there half of the orange. Mrs. Counsmans showed us that, understanding the interest (why they want it), in the orange would aid in achieving a solution where both children would be 100% satisfied. In this scenario, one child wanted the orange peels to make a cake; the other wanted to eat it. With this knowledge, the more obvious solution would have been to give one child the peels and the other the fruit. Sadly, this concept is lost when parties are in a negotiation. This is mainly due to factors like negative emotions, perception, and lack of preparation, which strongly affect the outcome. Elizabeth educated us that the person is not the problem. We must separate the person from the issue and focus on finding a solution to the concern that benefits both parties.

The concepts learned will undoubtedly be in my negotiation tool bag for years to come. I feel extremely confident stepping into a mediation or negotiation now then I have ever been. I will continue to read the resources that were available to me during class. Utilizing these new skills and experiences to resolve issues amicably and with a mutually beneficial outcome will make me a well-rounded individual overall. I ultimately feel that I reached my goal stated in my mastery journal and ready to use what I learned in any situation.

Interview Blog

Anna Lipsey

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Summary: 

 Anna Lipsey worked for Acme Comic Superstore as an Event Planner and Coordinator. Anna was responsible for planning social media strategies and campaigns. She also produced, planned, and organized events such as: original productions, art exhibits, open mic nights, gaming tournaments, workshops, and movie nights. She has a strong work ethic and an awesome attitude that fuels her ability to make things happen. Anna’s outgoing personality, character, willingness to work hard and ability to solve problems, makes her a perfect candidate in illustrating how to handle a negotiation properly. The following is an interview conducted by Blueprints to Entrepreneurship (BTE) with Anna on the subject.

Negotiation Topics:

   1     Separating the person from the problem:

       Getting caught up inside negotiations is common. We must learn that in most cases, "the problem is the issue, not the person. Finding ways to separate yourself from it is key to being successful in negotiating. Some good practices are: looking at the issue from their point of view, have clear communication, and not attacking the person (verbal bullying). 

BTE-     In your negotiations, how have you been able to separate the person, from the problem you are trying to solve?

 Anna- “I have to put all of my feelings (good and bad) aside and focus on the topic at hand. Whatever we are negotiating is usually affecting others, not just myself, so I have to make sure I go in level headed and open minded to accomplish what I was meant to accomplish.”

BTE-     What tips have you learned along the way that you find helpful and would recommend?

 Anna- “Being fair and compromising is everything! It is very difficult to negotiate with a person who refuses to budge. You can still get what you want from a situation while also benefitting the other person as long as both sides truly listen and stay open minded.”

   2     Mutual benefit:

       An agreement that benefits both parties. It is common to enter a negotiation with self interests. However what some people fail to see is that both parties have problems, and great deal makers can come up with solutions to both problems that benefit everyone in someway. 

BTE-     Most negotiations assume a competitive role. Can you think of a time where both parties came to a mutual benefit?

 Anna- “An actor who was on a famous television show in the 90’s approached Acme Comics and Collectibles and asked if he could perform his adult rated comedy skit in our Danger Room. As the Event Coordinator, and also handling our PR, I had to negotiate with his manager about his fee, as well as the topics he was looking to cover during his performance; to guarantee Acme customers would not leave with any negative feelings towards the establishment. After many back and forth phone calls, both parties agreed on ticket sale percentages, marketing platforms and “Do’s and Dont’s”. The night was a success.”

   3     Objective criteria:

Objective Criteria is usually a standard you can reference when negotiating terms. It is a good practice to research the negotiation before hand so that you may determine what some standards are so that they me be a reference or even a starting point.

BTE-     Was there ever a time in a negation with someone that either party used the “industry standard”? Did it help or hurt the negotiation?

 Anna- ”Going back to the story regarding the 90s television actor, his manager stated he would be sending over a rider for Acme to look over and agree to. I stated that we were not in the position to comply with such a rider and that his team would need to take care of that before arriving. The manager explained that the “industry standard” is that all performers have a rider. I kindly let him know that he was not dealing with a typical venue and that Acme employees were already skeptical about allowing him into our establishment due to his current reputation. The manager then backed down.”

   4     BATNA:

Your BATNA is the Best Alternative To A Negotiated Agreement or your back up plan. Some BATNA's are more beneficial than others. It is imperative that you do not let your BATNA become a crutch or blind you to a potential agreement that mutually benefits both partie. 

BTE-     Have you been in a negotiation where you knew the other persons BATNA, and if so how did you prepare for it?

 Anna- “With my current position, I knew they were looking at other candidates, but I also realized I had more experience than my competitors. After I was offered the position and salary, I counter offered with a higher salary. I knew that they could easily go with another candidate who was willing to do the work for a cheaper cost, so I used that opportunity to tell them what I could bring to the table that others could not. With that being said, we met in the middle and I was given the job with a higher salary than others, but slightly less than what I had hoped for walking in. I prepared for that negotiation by thinking long and hard about what set me apart from others.”

   5     Emotions:

It is impossible to separate emotions from a negotiation, but negative emotions can ruin the chance to see a deal through. It is important to keep negative emotions in check and focus on the problem.

BTE-     What has been your experience with dealing with negative emotions and how have you been able to manage it during a negotiation?

 Anna- “I very rarely dislike people, but when I do, I do. A company approached us at Acme Comics a while back and wanted to join forces while taking 50% revenue from one of our most popular events at the time. The woman over the organization had previously asked if they could be involved, and I explained the options she had. She did not particularly like the choices I offered, so we ended the conversation. A few weeks later while I was out of the office, she approached my coworkers again. It was hard to negotiate with someone who I disliked because they were solely looking for their own personal gain instead of benefitting both parties, but after many conversations, we agreed to have her be involved in a way that would assist her organization while being fair to Acme.”

Below are great books that discuss Negotiation's more in depth:
The Handbook of Conflict Resolution: Theory and Practice, 3rd Edition
Contract Negotiation Handbook: Getting the Most Out of Commercial Deals
What Makes a Leader: Why Emotional Intelligence Matters
Getting to Yes: Negotiating Agreement Without Giving In

Developing Digital Ecstasy Games

By: Edward Sanchez

 Creating any startup is no simple task and there are many things an entrepreneur has to consider when doing so. While learning to become an entrepreneur, I have elected to apply my learned skills into starting a video game studio. So far I have been taught that an entrepreneur must have an understanding of who they are and what exactly they want their brand to represent. Next, a business owner must have to determine how they will differ from any competitors and if that difference is something that consumers even want. Making products that no one wants will get them nowhere.

 It is not enough to have a passion in the industry you will choose. Entrepreneurship in most cases, does not offer you the ability to sit and focus on just the service you are providing. Depending on the business you literally have be jack of all trades and do everything from Finance down to throwing out the trash.  In an article written by Gary Williams for Gamasutra, He discusses ten tips digital publishers can learn from the physical boxed model. He taps on the need to have a business-oriented mind when developing games. His very first tip talks about the need for a business plan and how it’s just as important as the game itself (Williams, 2015).

 I feel that all the tips he shares in this article are insightful, but my favorite tip was the one where he talks about maximizing access to the consumer. Stella Garber a contributor to Forbes Magazine writes that customer acquisition or the ability to obtain a customer and having them come back for more; is the hardest thing startups struggle with. Being able to diversify how you get your product into the consumer’s hands will help in expanding your brand’s recognition and increasing the profits to your business. The journey to launching my game studio has just begun and with resources like these, I feel that my vision can see the light of day (Garber, 2015).

Andreas Wolter plays "Ruf!" [Album Emotion Pictures]

Business Story Tellers: Tai Lopez

 

Click the Image for Tai Lopez Tedx Talk

 Tai Lopez is a motivational speaker, business consultant, investor and entrepreneur who prides himself with reading a book a day. He uses the books as a form of mentorship. During his Tedx Talk, he discusses the ways to achieve the four pillars of success in Health, Wealth, Love, and Happiness. Tai inspires me to pursue a better life by making it seem more attainable. The way he delivers his message is a call to action. We can control our lives, choose to effect change in the way we perceive the world, and possess the ability filter what we learn. Tai made me realize that being stoic today will lead to a better life tomorrow, not just for me but also, for my future generations.

 Before I found out about Tai, I realized I did things for monetary gain. I didn’t worry much about social interactions or building mutually beneficial partnerships. Now, I understand that those mutually beneficial partnerships are the keystones to building empires. I now look for opportunities that pertain to personal growth, and educational advancement. Helping others gives me a sense of fulfillment and I gain skills that help me be more marketable in life. In his Ted Talk, Tai lays out the rules you should follow to gain the “Good Life”: 1) Be Humble, 2) Persevere, 3) Toughen up, 4) Read Books 5) Be Stoic. People want the good life but do not want to follow the rules to gain it.

 Today, I follow Tai on Twitter, Facebook, and Linkedin. I have subscribed to his Youtube channel, Periscope and Snapchat. I try to listen to him whenever possible because he reiterates the message of “Do what you need to do to deserve the success you receive.” Tai also has a 67 Step mentorship program that I have purchased and reviewed several times. I have implemented his teachings in my daily routine on my journey to the “Good Life”, and I recommend you do as well.