“Real world” negotiation reflection Introduction As the senior manager, I finish the annual performance evaluation of my team members in January. After finishing evaluation I will hold interviews with them, talk about their efforts and the plans for this year. Lilly is one of my team members with a better knowledge of the logistics industry. Based on her performance in 2012, her annual performance is rated B+ and she can get 8% increase in year-end bonuses. In addition, I plan to promote her as a team leader responsible for the logistics software products promotion in the northern market.
Since our company’s business development in 2013 will increase the input in the northern market, I expect the annual sales income in 2013 will increase by 30% under the expected market goals achieved; as a team leader, Lilly’s personal annual income will increase by 15% -20%, depends on the sales commission. But because of some family reasons, she may not be willing to travel for a long time. Before the interview, I heard another message: Lilly was dissatisfied for her personal income being less than another team member, Han, who joined the team in the beginning of 2012.
In addition, Lilly has been worked as a consultant for almost 5 years and she feels a little boring on this work. Due to marketing sales job vacancies in our company, she wants to try the position as a sales manager, in order to get a new working experience and get more time to take care of her family. Preparation Planning Document What issues are most important to you? 1. Retain Lilly as my team member. 2. Promote her as the team leader responsible for the northern market. | What issues are most important to your counterpart? 1. Dissatisfaction with her personal income. 2.
Can the company provide the new challenges on the consultant job? 3. Cannot travel a lot due to family reasons. | What is your BATNA? 1. Retain Lilly as my team member without promotion since she won’t be willing to travel a lot. Continue working as the consultant with expected 5-8% annual income increase. The annual income will be less than now if she shifts to the sales position. 2. Change the bonus distribution, increasing the commission from 2% to 2. 5%, after promoting her as the team leader. 3. If she needs long-term business, over 1 month, she can go home once a weekend every two weeks or get extra 2 days’ vacation.
Reservation Value? 1. Increase the commission from 2% to 3%, after promoting her as the team leader. 2. Increase annual vacation time from 10 days to 20 days. Target? Promote her as the team leader responsible for the northern market. | What is your counterpart’s BATNA? 1. Shift to the sales position which may provide challenge work. 2. Keep the consultant position, ask for a better salary. 3. Accept the promotion and get a much higher annual income. Reservation Value? 1. Make her annual income increasing 10% or more. 2. Try something new. 3. Stay in the city and take care of her family.
Target? To find a new work with both satisfaction payment and more time to take care of her family. | What are your sources of power? Right to promotion. Provide the new challenges on the consultant job. Provide appropriate holiday adjustment. Right to bonus distribution. | What are your counterpart’s sources of power? Shift to the sales position. Ask for a higher salary or business allowance. Ask for more vacation time. | What is your opening move / first strategy? Talk about her annual performance, and tell her the coming promotion. Compare the annual income before and after promotion.
Attract her by the challenge as a team leader. | Other important or unique information / considerations:How long is the travel time she can accept? Her family situation;Is there anything I can do for her or give her some suggestions? | Negotiation Since we now live in different cities, I decided to use the video call interview. Different with telephone conversation, video call can help me to adjust my negotiating strategy by observing the changes in her face. I started with telling her the purpose for this conversation. Talked about the things the company measures for her position; her contribution to revenue or costs.
Based on her performance in 2012, her annual performance is rated B+ and she can get 8% increase in her year-end bonuses. Then, I went to the promotion issue. I analyzed the marketing strategy of our company; the northern market should be one of the most important markets in 2013. Therefore, I need to promote a team leader who can manage the consultant team for northern market. Based on her excellent consultant skill and knowledge of the logistics industry, she is the best man for this position. Lilly showed her satisfaction with the result of annual performance evaluation and was pleased with the chance to be a team leader.
But she said she wanted to change to sales department in order to have more time to take care of her family. Since I know that it could not easy to get more time if being a sales manager, I didn’t consider it as the real reason for her shift. Through conversation, I learned that the real reason was her personal annual income was less than Han, which made her feel uncomfortable. I thought I should focus on the income first. Firstly, shifting to sales department was not a good choice since the income will decrease. Continue working as the consultant with expected 5-8% annual income increase.
Secondly, I explained that she and Han held different position, their income can’t be compared. Although I cannot tell the specific income data, I consider their income is close. Moreover, if she got the promotion, her annual income should be increased to a higher level. After that, I explained the details of the promotion: the sales commission will be increased from 2% to 2. 5%, after promoting her as the team leader, which means her personal annual income will increase by 15% -20%. Lilly was attracted by the condition, but she still worried about the challenge she will face to and how to deal with the family issues.
I told her I can support her work which she didn’t need to be worried about. For family issues, there are two choices: one is getting extra 2 days’ vacation after a 1 month long-term business trip; another is increasing annual vacation time from 10 days to 20 days. She agreed with the latter one at last. Before we ended the conversation, Lilly said she will talk with the coming change with her families, in order to get their support. I think she will convince her families and take the position. Conclusion The result of the negotiation is successful.
I do a pretty good preparation work by determine my bottom line and BATNA in time and good strategy can give me the chance to handle the negotiation follow my own idea. Mutual trust is very important in this negotiation process. Because the real reason for her shift was her personal annual income was less than Han, which made her feel uncomfortable. I can’t deny the fact because I need to build the mutual trust. But I can change the way to discuss the income issue and courage her to keep the position. I found out the solution and I got my target at last.