Live 8 Negotiation

My role assignment for, “Live 8” was the manager of internet development for L.C.A, Inc.  The purpose of the negotiation was to obtain a domain name to replace live8live.com which is being seized lawfully by a Detroit based band named Live8Live.  They sued L.C.A. Inc. for rightful ownership and ICANN found that the band was rightfully entitled to the domain, the process does not allow for an appeal.  As manager, my role was to locate a new domain and at a reasonable price.  The only available domain was live8.org, registered to someone in Turkey, the page is “under construction.”   I reached out to the owner, after confirmation that the individual did indeed own the page.  I provided a brief description as to who I was and what I wanted to purchase the domain for.  I was concise in the request and initially divulged my interest in the page and why, my initial offer to purchase the site was $500,000.  Based on the given budget of 1 million, I knew this was low, knowing there would be a counter, starting low would lead the counter to be closer to both parties resistance point.  The domain owner responded, stating that he would need a significantly higher amount, closer to $1,300,000.  This counter was over the budget I was given even with the possibility of receiving an additional $200,000 on top of the 1 million already allocated.  I attempted to extract the interest of my partner and what his purpose for the domain was.  I further explained that the concert being marketed was for the purpose of charity, that I could offer more but I didn’t want to spend too much and take away from the charity.  Since I was not sure what his plan was for the domain, I asked if he had a business or some sort of service he was selling, or planned to sell using the domain once the website was fully developed.  I offered to place a banner ad on the front page of the site for live8, and informed him that currently 60,000 hits were received daily and we expected that number to double within the next few.  The banner ad would link to the new domain the other party set up if they would agree to sell, driving initial traffic to their site.  I offered $650,000 along with the banner ad on the front page, and he agreed.  Turns out that he sold art and he was launching 3 new galleries.  Since I was unable to get a clear read on his interest, I assume that he accepted the offer since the galleries were startups and he would need to get his name branded.  The offer may seem low based on the budget I was given but once his new site is developed the value of the number of hits from an ad on www.live8.org would have more value, and allow his business to grow quicker. 

Negotiating through email is more difficult than anticipated.  You can see the other person face to face, you can hear their tone, and it’s next to impossible to guess what their reaction is.  If the response to the initial offer is not almost immediate then one wonders if it was too low and borderline offensive.  There is no level of interactivity, or a seamless flow of interactivity. The delay between responses referred to as asynchronous, allows for an undetermined length of time between responses.  Email negotiation also makes it extremely difficult to determine and interpret the other parties’ interests.   Since I was playing the role of someone that had a greater need, I laid out exactly what I wanted and why I wanted it, even asking what the other party’s interests were flat out to avoid confusion.  My partner never really answered my question about what their interests were which made it that much more difficult to read the situation, the negotiation exhibited diminished inter-party process cooperation.   The accuracy in trying to judge the other parties interest was non-existent, and we were unable to identify joint gains.  I feel as though if the other party indicated their interest and what their plans were for the domain in the first place then I may have offered more money along with the advertising to attempt to expand the pie.  It seemed that the offer was accepted just to end the negotiation more quickly.  I can’t really tell if my partner was uncomfortable with the negotiation since it was a different avenue that we have not used yet, or if there was just very little interest to engage.  There was certainly no advantage to exchange information in this negotiation, if my partner were shy or uncomfortable negotiating, one would think that email would have been a means to negotiate more comfortable, more time to formulate a response, digest information, and no fear of giving away their position through body language.  The negotiation was interesting, but I felt like I was constantly trying to extract information, not information he didn’t necessarily want me to have, but information needed to have a successful negotiation.

Final Offer

The film the “Final Offer” provides insight to the contract negotiations between the United Auto Workers and GM set in 1984.  GM had struck a deal with the United States to implement a profit sharing plan and replace the annual 3% wage increase which was the standard cost of living increase for decades prior.  GM has experienced a large increase in profits but wanted the union to believe that the auto market was unstable and increased competition could mean an unstable future market.  The goals of GM were to mirror the recent negotiated contract with the US and implement the same terms for the Canadian Union.  GM was looking to eliminate the 3% wage increase and revert to profit sharing, which would pay out year-end bonuses based on the profitability of the company.  GM wanted to eliminate 80,000-100,000 jobs and expand outsourcing.  The goal was to increase the output of the current labor force and strong arm them into increased productivity will less benefit and uncertainty in pay.   Bob White, the leader of the Canadian UAW, understood that what was good for the United States did not parallel the interests of the Canadian laborers and there would be severe backlash if he did not negotiate for the cost of living wage increase the workers were accustom to.  GM expected Bob White to participate in pattern bargaining in which the Canadian contract would mirror that of the US.  Bob White knew that this negotiating would lead to the split from the UAW and lead to the formation of the Canadian Auto Workers.  With backing from the membership White pushed for the 3% wage increase, ended up in the end with a 2 ¼% increase, but split from the UAW.  If White was not backed by the membership and his laborers who respected White, the negotiation could not have turned out as it did.  There was increased pressure from Beiber, and Smith throughout the talks as the strike date loomed near.  White did not back down from the tactics employed by the UAW and GM.  Even as the talks became heated and the possibility of closing a deal on White’s stated terms seemed next to impossible, White remained calm and collected and did not show his hand, when others flinched.

Real World Coalition Context

Coalitions form when 2 or more people form a group who share similar interests and values, combining resources and create a more powerful position than they would hold on their own.   On a large scale gun violence is a national point of contention that will require negotiation to combat on a federal government level, on the smaller scale gun violence effects small high-risk communities.   In a recent article published by PennLive, a coalition group has formed in a once quiet neighborhood now plagued by drug activity, gun play and has left children ducking for cover from stray bullets.  Many citizens described a more prosperous time, but this blighted neighborhood has witnessed 7 shootings in 8 days, which resulted in several injuries and 1 death.   This is not unfamiliar occurrence to America’s underprivileged cities and has created an accepted numbness, but this neighborhood has come together to create a coalition to fight back, rather than become consumed by it.  Individuals on their own stand no chance in impacting change on this level, but have recognized an opportunity to come together.  It’s unlikely that these two groups will sit down at a table and negotiate between themselves and come to an agreement to curb the violence but the coalition group can exhibit its power over them though silent negotiation.  The group dubbed “the heart of Allison Hill Peacekeepers,” makes their power and presence know by walking the streets at night in hopes of dissuading violence and that some will take heed to their message of peace.  The coalition shifts the power from the thugs that have claimed the streets back to the residents that no longer wish to be prisoners in their homes, retreating indoors at sundown.

The common adversary is pitting neighbors against neighbors and breeding fear of retaliation, in turn keeping the innocent silent to the violence they witness and further weakening their individual bargaining potential.  Now, fed up, and fearing for further deterioration of their lives, a few have come together and have formed a loud voice.  Through their frequent evening walks they are positioning themselves to push back, and building an allegiance. Their selflessness is catching attention by demonstrating true leadership, and inspiring others to follow.

The common objectives of the coalition are the driving force that move the coalition forward.  The objective is for residents to take back control of their neighborhood and show young folks that they care and are focused on non-violent resolution, respect, and recreating value of life.  The group is working on grants to fund professional interrupters which would cost roughly $300,000 annually, but would relieve some of the responsibility of police.  The neighborhoods no longer trust the police and withhold information from them creating an endless cycle.  Not only is the group using their power to deter violence they are positioning themselves in an internal negotiation with fellow neighbors that may have similar fears but refuse to provide information due to lack of trust.   If witnesses won’t participate in a police investigation, the coalition may be able to negotiate with them to provide anonymous information to fellow members of their neighborhood whom they trust. Bringing in professional interrupters who would not carry a badge may restore the comfort level and allow the community to regain strength. The coalition and possible presence of professional interrupters may help curb the unhealthy behavior in the high risk areas and may in turn bring out the interests of the people engaging in the unhealthy behavior.  The youth’s committing gun violence may not wish to behave as they do but see no other choice but to sell drugs and engage in violence as they feel there is no potential otherwise.  The healthy presence and support of the community could turn around the life of someone that thought otherwise, even one life is success, and a step forward for this neighborhood. 

Ethics Questionnaire

The basis of my behavior and ethical values has a lot to do with past experience, relationships, and perceptions.  Learned behavior and personality, and concern as to how I am being viewed have an undertone in how I prefer to interact in a negotiation.   The importance of a relationship with the person you are negotiating with will clearly lead one to be more open, honest, accommodating, and willing to collaborate.  This is where I feel like I would normally land in any setting, even if the stakes were higher and the relationship was of little importance.  I prefer to avoid a tactically demanding setting, which would make me feel uncomfortable, anxious, and focused more on the negative feelings then the goal at hand.  I’m surprised that I scored higher on Traditional Competitive Bargaining, I think it’s more that I believe that tactic is acceptable, but I may not use it myself.  It seems rather obvious when one opens a negotiation with an extreme demand and more of a waste of time than anything, at least if the extreme is blatantly obvious. I agree that there are times where one would pressure the opponent and constraints such as time, or ego may be the underlying focus, but that seems like a waste of time as well.  I have experienced many situations where I have felt as though I am being pressured to concede to something and my thoughts are that it’s either annoying, too boastful by the other party, and unnecessary, but I don’t believe it to be unethical.  Most people in any sort of sales position will take this position initially.  It’s more of a turn off to whatever is being sold than it is a tactic, the reason I would prefer not to go that route, it sours my take on the negotiation.  

I scored rather low, under the average on; Attacking Opponent’s Network, False Promises, and Inappropriate Information Gathering.  All three of these seem rather unethical and based off a lack of confidence, preparedness, and little knowledge of what one is negotiating.  More of a tactic to strong arm an opponent and attack them with fear, bribery, and misrepresentation, none of which seem at all ethical.   One’s fear of an attack to paint them as weak is enough for some people to give in to a certain demand, money motivates some and leads to bribery, but does not mean that it’s the correct way to negotiate and false promises run along the lines of being intentionally untruthful, which may or may not be realized but it’s not the correct course of action.  Some negotiations, even those that produce great results, are based on a foundation misrepresentations which could eventually fall apart or gain someone a reputation of someone that is not trustworthy, effecting future negotiations.  There are times where untruths may be told, it’s unavoidable in some cases, as long as the untruth has no harmful effect, or is not a major misrepresentation of a promise being made, then it’s OK from time to time, if the untruth is meant to gain some advantage but will not have a negative impact.  Some untruths are expected in negotiation, more inflations of truth, if your opponent is expecting it and may be telling untruths themselves, then it can be considered a part of negotiation.

Overall I’m not disappointed how I scored in comparison to others who took the questionnaire.  Each negotiator has their own style, and this helps to understand that some folks are different in how they view ethical behavior in negotiation, no two negotiators are the same in their approach.  One has to be mindful that fellow negotiators can be more like sharks and you need to be aware of that behavior and adjust and other folks are more timid and that shouldn’t be taken advantage of for personal gain.  Knowing as much as you can prior to a negotiation in terms of topic and partner is key to a successful negotiation.

Negotiation Checklist

Negotiation Checklist:

A.    About You 

1.     Currently reviewing job offers from FourCom and Robust Routers.  Interned with Robust Routers over the summer, Leigh Bulterma was Joe Tech’s manager during the internship and the individual that Joe will be negotiating his job offer with.

2.     Joe Tech aspirations and interests going into the negotiation with Robust Routers.

-          Prefers to start in Business Development over Associate Product Manager.  

-          Would like Robust Routers to match the $15,000 sign on bonus offered by FourCom.

-          Negotiate a better relocation allowance that covers all moving costs, broker costs, potential storage, and a flat sum for other extraneous costs.

-          Stock options, not a strong point given uncertain market, last resort if Joe cannot convince Robust Routers to concede on other issues.

-         Start date is not overly important but Joe wouldn’t mind traveling Europe for a couple months after graduation

Issue 1:	Business Development Position
	Maximum Value:				100 Points
RR Business Development Position					100 Points
FourCom Business Development Position					75 Points
RR Associate Manager Position (but move up)					50 Points
Start-up Company Business Development Position					25 Points
RR Associate Manager Position (Stagnant)					0 Points
Issue 2:	Salary
	Maximum Value:				100 Points
RR Business Development Position $101,000					100 Points
FourCom Business Development Position $101,000					75 Points
RR Product Manager Position $83,000					50 Points
Start-up Company BD Position $95,000					25 Points
RR Associate Manager Position $88,000					0 Points
Issue 3:	Signing Bonus
	Maximum Value:				100 Points
RR $10,000 Bonus					100 Points
FourCom $15,000 Bonus					50 Points
RR $10,000 Bonus OR Start-Up Company					0 Points
Issue 4:	Relocatoin
	Maximum Value:				100 Points
RR $15,000 Package					100 Points
FourCom Package					75 Points
RR $10,000 Package					50 Points
RR Original Package $,5000 OR Start Up Company					0 Points
Issue 5:	Start Date
	Maximum Value:				100 Points
RR BD Position and Time to Travel					100 Points
RR BD Position  but Start Right Away					75 Points
RR PM Position and Time to Travel					50 Points
RR PM Position  but Start Right Away					25 Points

. Offer From FourCom                                             0 Points

Issue 6:	Stock Options
	Maximum Value:			100 Points
RR Stock Packate 1,000 Stocks + 500 Per Yr.				75 Points
FourCom Stock Packate 1,000 Stocks + 500 Per Yr				25 Points
Start Up Company				0 Points

3.     BATNA/Aspiration/Resistance Point – If the negotiation with Robust Routers does not conclude with a satisfactory job offer, Joe Tech can accept the offer from FourCom or continue the job search.  

-          Salary/Title:

o     $83,000 (88-5) (R)

o    $101,000 (A)

-          Assignment:

o    Associate Product Manager (R)

o    Business Development Manager (A)

-          Signing bonus:

o    $10,000 (R)

o    $15,000 (A)

-          Relocation:

o    $5,000 (R)

o    $15,000 (A)

-          Stock options:

o    1000 + 500 Per Year (R)

o    1500 + 500 Per Year (A)

-          Start date:

o    May (R)

o    Later (A)

B.    About the Other Side

1.     Importance of Issues

-          Assignment

-          Salary

-          Start Date

-          Signing Bonus

-          Relocation

-          Stock Options

4.     Relationship Between Parties

-          Leigh Bultema was Joe Tech’s manager during his summer internship. 

-          Internship was favorable, some level of trust between both parties.

-          The start date is June 1, 2016 indicating a sense of urgency on Robust Routers end.