Vocabulary

“Not by a long shot:” “Not even close.” “We don’t think there is any money to be

made in this deal for us – not by a long shot.”

Party: A participant in a negotiation. “Identifying the real parties to a negotiation

is a key step in your preparation.”

Decision maker: The person in charge of making a final decision. “In Chinese

culture, it may not at all be obvious who the real decision maker is when you first

meet.

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Trap: Something that wastes time, energy, or money in a negotiation, or which

can even cause it to fail. In some cases, your opposite number may even

intentionally lay orset a trap for you. “They set a trap for us, and we fell right

into it.”

Interests: The motivations and aims that help define each part’s objectives. “To

achieve your own goals, it’s essential to consider the other parties’ interests.”

Opposite number: The person (usually of equal rank) who holds your job on the

other party. “My opposite number in the negotiation had years more experience

than I did.”

Where is/are he/she/they coming from? What is their motivation? What drives

them? What are their real interests? “We’re trying to understand where they are

coming from, but so far it’s difficult to determine.

Value: Includes not just monetary value (price) but also intangible, abstract

things like loyalty, brand image, synergies, etc. Collocates with to create,to

deliver, etc. “We have to find more ways to create value and deliver it to our

customers.”

Synergy (n) /synergetic (adj.) / to synergize (v): Synergy refers to a situation in

which the whole is greater than the sum of the parts (that is, situations in which

one plus one is greater than two). “We are looking for synergy effects in order to

maximize joint value.”

To think outside the box: To think creatively outside the normal habits of a

group or organization. “People who can think outside the box are often the best

at finding a compromise that all sides can agree to.”

To contribute to the image of sth. : In this case, image refers to the way that

something is seen – its’ reputation. “Stocking a famous brand can often

contribute greatly to a store’s image.”

Commercial transaction: A situation in which party A buys something from party

B and gives them money for it. “Simple commercial transactions are only one

type of negotiation.”

To set up/remove barriers/obstacles/impediments: Barriers, obstacles, and

impediments are all things that block the road. A barrier is total – the road

cannot be passed; whereas, obstacles and impediments only hinder progress.

“Traditional thinking can be an impediment to positive change.”

Joint value: Mutual benefit. “We have to think of ways to create joint value.”

To overcome blockage: To defeat or conquer barriers to a negotiation.

“Overcoming blockage requires a sincere desire on all sides to reach an

agreement.”

To make the deal: To reach agreement. “It took two weeks to make this deal.”

To maximize value: To create the most value possible. “Negotiation is not just

about reaching a simple agreement but about maximizing value.”

Corporate social responsibility: Values of moral responsibility to the environment

and to the public that companies use to create value by improving their image

and reputation. “In today’s business environment, corporate social responsibility

is an important factor in any global company’s success.”

Shareholder rights: Rights of stockholders in a company to information,

dividends (profit share) etc. “One of the most important shareholder rights it

that to information about a company’s profit and loss.”

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Successful Negotiations

Dialog

Interviewer: Okay, and are those the main things to planning strategy?

Bryan: Not by a long shot. There are several other things to consider. For

instance, we should constantly be asking ourselves, who are the real partiesin

the negotiation… who are the decision makers. Sometimes the person sitting

across the table from you is not the person in charge, or isn’t who they seem to

be.

Interviewer: Right, I can see how that could be atrap.

Bryan: Absolutely. And another thing is to think creatively aboutinterests.

That means, what are their fundamental needs and priorities? A lot of people

make the mistake of not considering carefully where their opposite numberis

coming from, and what goals he has to accomplish.

Interviewer: That has to do with benefits?

Bryan: Certainly, and it leads into a discussion ofvalue. We are looking for

synergy effects, i.e., ways to make 1 + 1 equal more than 2. The questions

are, How can value be created? and,Who is likely to get it?. We need to think

outside the box.

Interviewer: Can you give me an example?

Bryan: Well…. For instance, you may be interested in buying my product

because it contributes to the image ofyour store. Or you may want to

acquire my business because it will help you control a key part of the market.

There is much more to all this than a simple commercial transaction.

Interviewer: Okay, so far we’ve only talked about positive things. What are the

negatives that come up in a negotiation?

Bryan: There’re certainly negatives as well. We often call thesebarriers. It’s

important to think of these not just in terms of obstaclesthat might prevent

agreement, but, much more subtly, as impediments to maximizing joint value.

Interviewer: Soovercoming blockageis not just aboutmaking the deal,

it’s about maximizing value as well.

Bryan: That’s right. And to do that, you have to watch out for the ways that

various parties influence the negotiation processand itsoutcome. This kind

of power toremove or set up barriersto agreementcanbe both a

blessing and a curse.

Interviewer: It seems to me that there’s one last thing that hasn’t come into

the discussion so far, and that’s: Morally, what is the right thing to do?

Bryan: If you had asked me that question 15 years ago, I might have laughed.

But these days we think of ethics in broader terms to include the

environment…corporate social responsibility…shareholder rights… and

all these areas have a lot of potential value for companies.

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Debrief

As the dialog opens, the interviewer – referring to the first half of the discussion

in the previous episode – asks Bryan if that was all there was to negotiation

strategy. Bryan replies, “Not by a long shot,” which means, “not at all.” Then he

goes on to mention another key strategic concern:

Bryan:…For instance, we should constantly be asking ourselves, who are the

real partiesin the negotiation… who are thedecision makers.

A partyto a negotiation is a person, group, or company that has an interest in

the discussion. For example, in a typical sales negotiation there are at least two

parties – the buyer and the seller. Bryan emphasizes how important it is to

determine who the real parties are – who are thedecision makers, that is, the

people who have the final authority to make a decision, be it yes or no, buy or

sell. He says, “sometimes the person sitting across the table from you is not the

person in charge.” The interviewer refers to this as a trap, which in this case

means a situation that leads us to waste time and energy or, in the worst case,

causes us fail.

So determining the real parties – thedecision makers – is the first strategy that

Bryan mentions. Let’s listen to some more example sentences discussing this

element of strategy:

 It’s not always obvious at first glance who the decision makers are.

 Often, there are more than just two parties to a negotiation – deals may be

complex, and we must also consider government or shareholder involvement.

 It’s important to recognize the real parties to the negotiation and identify the

key decision makers.

After interests, what is the next strategy Bryan talks about?

Bryan: … And another thing is to think creatively about interests. That means,

what are their fundamental needs and priorities? A lot of people make the

mistake of not considering carefully where their opposite numberis coming

from, and what goals he has to accomplish.

Here Bryan emphasizes the importance of thinking creativelyor originally about

the actual interestsor goals of the parties to a negotiation. We must consider

where they are coming from– that is, what their opinions and viewpoints are,

what motivates and drives them, etc. The idiom – where someone is coming

from – is a useful oral English expression for discussinginterests. Listen to some

more examples of its use:

 I don’t think I really understand where he’s coming from on this issue.

 We asked them about their motives for the merger to get a feeling for where

they were coming from.

 It’s not at all clear to me where she is coming from.

As the interviewer points out in the dialog, thinking about interests means

considering the other parties benefits. How does Bryan react to this observation?

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Successful Negotiations

Bryan: Certainly, and it leads into a discussion ofvalue. We are looking for

synergy effects, i.e., ways to make 1 + 1 equal more than 2.

Valueis a key consideration in any business deal. It is a broad, abstract term

that does not refer merely to money but more generally to benefit and gain of all

types. We often speak of creating value anddelivering value to customers.

Creating value involves looking for synergy, which, as Bryan points out, means

situations in which the whole is greater than the sum of the parts – or, as he

says, in which one plus one is equal to more than 2.

This term – synergy – has become a very popular and important word in

business language.

 After many mergers, the promised synergies fail to materialize, often

because of cultural and management differences.

 A lot of what we are doing in negotiation is looking for synergies between our

companies.

 Identifying synergy effects requires creative thinking.

Next, Bryan goes on to talk about how to create synergy effects…

Bryan: The question is, How can value be created? and,Who is likely to get it?

We need to think outside the box.

To think outside the boxis another popular, useful business idiom. It means to

think outside the normal habits of a group or organization – in other words, to

think creatively.

 I particularly admire his ability to think outside the box – he’s very original.

 In many tough negotiations, it can really help if there is someone on both

sides who can think outside the box.

 Often, finding and creating value requires thinking outside the box.

Bryan gives two examples of thinking outside the box: 1) Carrying a product in a

store not just to sell it but because it contributes to the image of our business;

and 2) Buying a business not to directly add to our profit but to control a part of

the market. As he underlines, there is much more to all of this than a simple

commercial transaction, i.e., more than mere buying and selling.

Next, the discussion turns from positives to negatives – things that can cause a

negotiation to falter or fail:

Bryan: There’re certainly negatives as well. We often call thesebarriers. It’s

important to think of these not just in terms of obstaclesthat might prevent

agreement, but, much more subtly, impedimentsto maximizing joint value.

Bryan calls these negative barriers. Words he uses with the same or similar

meanings include obstacles andimpediments. All of these words collocate with

the verbs set up (to create) andremove (to get rid of), and they use the

preposition to: For example, Bryan says it’s important toremove obstacles to

maximizing joint value. That means, to get rid ofthings that prevent all sides

from getting more benefit. Together, all these negatives – obstacles,

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impediments, and so on – are referred to as blockage, which must beovercome

or removed. Let’s listen to more examples that demonstrate this important

vocabulary:

 It was a real challenge to remove the barriers that had been set up, but in

the end we succeeded.

 Overcoming blockage is a process of getting rid of obstacles in the road to an

agreement.

 A typical impediment to compromise is an overemphasis on price.

The discussion of blockage leads into the next important strategic consideration

– power. As Bryan thinks of it, this means the ability to set up or remove

barriers, which – depending on what side you are on – can be a blessing or a

curse. This last phrase forms a common idiom. It refers to something that can

be bad or good, depending on the situation. (We also say something is both a

blessing and a curse. )

Listen to some more examples of this expression:

 Fierce competition can be both a blessing and a curse.

 Time constraints can be a blessing and a curse – both speeding things along

and causing people to give up without reaching agreement.

 Having a clear bottom line can be both a blessing and a curse – it’s often

better to be fairly flexible in your approach.

What is the last point that the interviewer raises in the discussion, before the

interview draws to a close? It’s ethics, or morality. The interviewer poses the

question, “Do we need to think morally, what is the right thing to do?” How does

Bryan respond?

Bryan: If you had asked me that question 15 years ago, I might have laughed.

But these days we think of ethics in broader terms to include the

environment…corporate social responsibility…shareholder rights… and

all these areas have a lot of potential value for companies.

Bryan’s opinion is that ethics have become more and more important to

business. Examples he gives are the environment, corporate social responsibility

(often referred to as CSR) and shareholder rights (which mainly refers to the

right of company stockholders to information, but also to the right to dividends

or profit share and the right to cast votes). As Bryan points out, all these moral

issues are areas of great potential value to companies.

Let’s explore all these expressions with example phrases.

 Corporate social responsibility is an area of great potential value to

companies these days, since it can help companies build brand image and

loyalty.

 More and more companies are recognizing the potential value of

environmental protection.

 There is good evidence that expanding and protecting shareholder rights

actually can have a positive effect on stock price.

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Successful Negotiations

Now, it’s your turn to practice. First, we’ll review some of the verb collocations

that we just learned: In a moment, you’ll hear a series of sentences with a verb

blanked out or replaced with abeep. Repeat the whole sentence, supplying the

missing verb in the correct form.

For example, if you hear:

It is important to <beep> obstacles to reaching an agreement.

You will say:

It is important to remove obstacles to reaching an agreement.

Let’s give it a try.

Cue 1:To reach an agreement it’s necessary to<beep> blockage.

Learner 1:

Cue 2:Ideally, negotiation is a process of<beep> joint value.

Learner 2:

Cue 3:We have to try to<beep> outside the box on this.

Learner 3:

Cue 4:Let’s try to think of ways to<beep> more value to customers.

Learner 4:

Answer 1: To reach an agreement it’s necessary toovercomeblockage.

Answer 2:Ideally, negotiation is a process ofmaximizingjoint value.

Answer 3:We have to try tothink outside the box on this.

Answer 4:Let’s try to think of ways todeliver more value to customers.

Next we’ll use the same method to review key vocabulary. You’ll hear another

series of cues. As before, one word is blanked out with a beep. Repeat each

sentence, supplying the missing word.

Cue 1: After many mergers, the promised<beep> fail to materialize.

Learner 1:

Cue 2: It’s not at all clear to me where she is<beep> from.

Learner 2:

Cue 3: Fierce competition can be both a<beep> and a curse.

Learner 3:

Cue 4: More and more companies are recognizing the great<beep> value in

environmental protection.

Learner 4:

Cue 5:Corporate<beep> responsibility is an area of great concern to many

companies these days.

Learner 5:

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Answer 1: After many mergers, the promisedsynergiesfail to materialize.

Answer 2: It’s not at all clear to me where she iscomingfrom.

Answer 3: Fierce competition can be both ablessingand a curse.

Answer 4: More and more companies are recognizing the greatpotentialvalue

in environmental protection.

Answer 5: Corporatesocialresponsibility is an area of great concern to many

companies these days.

That concludes this two-part series on negotiation strategy. We have looked at

common mistakes and reviewed important elements of strategy, including

BATNA,interests,values,barriers,powerandethics. We’ve also covered significant verb collocations as well as a range of useful idioms and expressions,

such as bargaining chips, deal sweeteners, synergy, andthinking outside the

box.

In future episodes, we’ll take a closer look at negotiation language and skills.

Thanks for listening!

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Successful Negotiations

Language Review

A. Useful Language

Review important vocabulary by filling in the blanks in the following sentences

with words we covered in this episode.

1. Often, the most vital step is to recognize real parties to the negotiation and

identify the 1) ___________decision makers.

2. We asked them a series of questions about their motives and interests to get

a feeling for where they are really 2)_____________from.

3. A lot of what we are doing in negotiation is looking for 3) ______________

between our companies.

4. In many tough negotiations, it can really help if there is someone on both

sides who can think 4)________________the box.

5. Having a clear bottom line can be both a blessing or a 5)____________– it’s

often better to be fairly 7)___________in your approach.

6. More and more companies are recognizing the great 8)________________

value in environmental protection.

7. Corporate social 9)______________is an area of great potential value to

companies these days, since it can help companies build brand 10)

___________and loyalty.

B. Prepositions Review

To review useful expression, supply the missing prepositions in the following

sentences.

1. A typical impediment _____compromise is an overemphasis______price.

2. Overcoming blockage is a process of getting rid _____obstacles_____the

road ______an agreement.

3. It was a real challenge _______remove the barriers that had been set up,

but inthe end we succeeded.

4. It is important to remove obstacles________reaching an agreement.

Study Strategy

Think of a negotiation that you had recently or that you have watched or know

about. Analyze it in the terms we have learned in this episode and the last. What

were the parties’ BATNAs and bottom lines? Who were the real decision makers?

What were their interests? How did power play a role? Were their any ethical

questions? Did the people involved think outside the box to maximize joint

value? Or was there an overemphasis on price? Prepare a short talk presenting

your findings.

© 2009 All rights reserved: www.business englishpod.com 24

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Answers

Listening Questions

1) The interviewer uses “trap” to refer to the situation Bryan describes in which

the person sitting across from you in a negotiation is not the actual partyor

decision maker you should be negotiating with.

2) Bryan says we should think creatively about interests: We should think of the

real goals of our opposite number – the person with whom we are negotiating –

and use this creative thinking to find new ways to create valuefor all sides.

3) As Bryan and the interviewer discuss, we shouldn’t just think of blockage as

obstacles to reaching an agreement but also as impediments to maximizing

shared value. That is, overcoming blockage is also about increasing value.

Language Review

A. Useful Language

1) Often, the most vital step is to recognize real parties to the negotiation and

identify the 1) keydecision makers.

2) We asked them a series of questions about their motives and interests to get

a feeling for where they are really 2) comingfrom.

3) A lot of what we are doing in negotiation is looking for 3) synergiesbetween

our companies.

4) In many tough negotiations, it can really help if there is someone on both

sides who can think 4) outsidethe box.

5) Having a clear bottom line can be both a blessing or a 5) curse– it’s often

better to be fairly 7) flexiblein your approach.

6) More and more companies are recognizing the great 8) potentialvalue in

environmental protection.

7) Corporate social 9) responsibilityis an area of great potential value to

companies these days, since it can help companies build brand 10) imageand

loyalty.

B. Prepositions Review

1) A typical impediment tocompromise is an overemphasisonprice.

2) Overcoming blockage is a process of getting rid ofobstaclesinthe roadtoan

agreement.

3) It was a real challenge toremove the barriers that had been set up, butin

the end we succeeded.

4) It is important to remove obstaclestoreaching an agreement.

Online Activities – Flash Quizzes

(click above to open)

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Successful Negotiations

Online Activities: M P 3 P o d cast:

BEP 403 – Building Relationships

This episode on relationship building is part of

an ongoing series on negotiation skills.

There’s an old saying in business – It’s easy to

make money once, but it’s hard to keep

making money for a long time. In other words,

I may be able to make a deal with you this one

time, but unless we establish a relationship

based on long-term mutual benefit, you may

not answer the phone the next time I call.

In negotiation, establishing a good relationship based on trust makes it possibleto

jointly search for creative solutions,to overcome blockageand even toturn conflict

into a productive force.

In this episode, both Peter and Maxine are owners of local telecommunication

services that provide mobile phone users with ring tones and games. Peter’s

company, Textacular, has a significant presence in Denmark; meanwhile, Maxine’s

company, Gamester, is based in northern Germany.

Peter is working on a plan to sell his business to a large, European-wide telecom

service provider. In an effort to increase his company’s value so that he can get

more money for it, Peter wants to roll upor buy other local services like his. In

today’s listening, he is having lunch with Maxine to find out whether she might be

interested in selling her company. As the dialog starts, they have just ordered their

food.

Listening Questions

1) Have Peter and Maxine met before?

2) What does Peter say is his and Maxine’s “biggest overlapping concern?”

3) How does Peter bring up the subject of a possible merger between his and

Maxine’s company?

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