"Big Iron" tells the story of an Arizona Ranger's duel with Texas Red, a 24 year old outlaw. The song released in 1959 and ultimately reached #26 on the Billboard Hot 100 chart in April 1960. I personally found this song from one of my favorite video games, Fallout 3: New Vegas.
Monday, December 2, 2019
What I'm Listening To: Gunfighter Ballads And Trail Songs by Marty Robbins
I had a friend who recently introduced me to some classic favorites from Marty Robbins. If you are at all a fan of spaghetti westerns or old country music you will love this album. I have shared one of my favorite songs from the album, "Big Iron", below:
"Big Iron" tells the story of an Arizona Ranger's duel with Texas Red, a 24 year old outlaw. The song released in 1959 and ultimately reached #26 on the Billboard Hot 100 chart in April 1960. I personally found this song from one of my favorite video games, Fallout 3: New Vegas.
"Big Iron" tells the story of an Arizona Ranger's duel with Texas Red, a 24 year old outlaw. The song released in 1959 and ultimately reached #26 on the Billboard Hot 100 chart in April 1960. I personally found this song from one of my favorite video games, Fallout 3: New Vegas.
Sunday, December 1, 2019
Negotiations
I am currently taking Negotiations at Kellogg and thought I would share a brief overview of how to approach negotiations. Below are the key components of building a strong deal:
Prepare
Analyze the goal, BATNA, and reservation point of each side.
BATNA -> best alternative to a negotiated agreement...in other words, what could you do without the negotiation?
Reservation Point -> the point at which you would walk away from the negotiation; is determined by your BATNA
Set an aggressive goal
Need to set ambitious goals in every negotiation. Doing this has the benefit of anchoring the conversation closer to your goals which most often results in better outcomes.
Improve your BATNA
Your BATNA is the biggest source of power in any negotiation. You need to simultaneously develop BATNA during the negotiation process. An example of this would be securing as many job offers as possible so you can better negotiate a compensation package with your favorite offer.
Establish a reservation point
Your reservation point (RP) is not your aspiration and is determined by your BATNA. This is another reason to constantly try to improve BATNA.
Carefully analyze the other side's BATNA
Your goal should be based on weaknesses of the other side's BATNA, which leads negotiators to negotiate largely around their own RP rather than capitalizing on the full bargaining zone. Remember that each side's BATNA will change over time.
Bargaining Zone -> the range between a seller's RP and the buyer's RP
Create a scoring system
Want to quantify all issues in terms of points/currency. Fractionate larger issues into smaller ones, prioritize issues, and assign relative weights. Doing this ensures that you remember the whole picture during negotiations, helps see tradeoffs, and gives you more confidence/backbone during the actual conversation.
Negotiate at the package level
Negotiating issue by issue makes everything contentious which leads to worse outcomes. They take longer and a re more likely to leave to an impasse.
Make the first offer and build a rationale
Make the first offer to get an anchoring effect - people make estimates by starting from an initial anchor value (aggressive offer) and adjusting from there to yield a final answer. The rationale however must be focused on the other side's interests.
*When you want the other side to maintain status quo, highlight the gains. When you want the other side to move away from status quo, highlight the losses.*
Leave yourself room to concede
People do not like to make unilateral concessions so it is best them to see you concede and make them feel like they are "winning".
Make multiple equivalent offers simultaneously
Making multiple offers (usually 3) allows you top be aggressive while also signaling cooperation. It also allows you to test what the other side is telling you and allows you to be persistent.
Prepare
Analyze the goal, BATNA, and reservation point of each side.
BATNA -> best alternative to a negotiated agreement...in other words, what could you do without the negotiation?
Reservation Point -> the point at which you would walk away from the negotiation; is determined by your BATNA
Set an aggressive goal
Need to set ambitious goals in every negotiation. Doing this has the benefit of anchoring the conversation closer to your goals which most often results in better outcomes.
Improve your BATNA
Your BATNA is the biggest source of power in any negotiation. You need to simultaneously develop BATNA during the negotiation process. An example of this would be securing as many job offers as possible so you can better negotiate a compensation package with your favorite offer.
Establish a reservation point
Your reservation point (RP) is not your aspiration and is determined by your BATNA. This is another reason to constantly try to improve BATNA.
Carefully analyze the other side's BATNA
Your goal should be based on weaknesses of the other side's BATNA, which leads negotiators to negotiate largely around their own RP rather than capitalizing on the full bargaining zone. Remember that each side's BATNA will change over time.
Bargaining Zone -> the range between a seller's RP and the buyer's RP
Create a scoring system
Want to quantify all issues in terms of points/currency. Fractionate larger issues into smaller ones, prioritize issues, and assign relative weights. Doing this ensures that you remember the whole picture during negotiations, helps see tradeoffs, and gives you more confidence/backbone during the actual conversation.
Negotiate at the package level
Negotiating issue by issue makes everything contentious which leads to worse outcomes. They take longer and a re more likely to leave to an impasse.
Make the first offer and build a rationale
Make the first offer to get an anchoring effect - people make estimates by starting from an initial anchor value (aggressive offer) and adjusting from there to yield a final answer. The rationale however must be focused on the other side's interests.
*When you want the other side to maintain status quo, highlight the gains. When you want the other side to move away from status quo, highlight the losses.*
Leave yourself room to concede
People do not like to make unilateral concessions so it is best them to see you concede and make them feel like they are "winning".
Make multiple equivalent offers simultaneously
Making multiple offers (usually 3) allows you top be aggressive while also signaling cooperation. It also allows you to test what the other side is telling you and allows you to be persistent.
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