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Posts Tagged ‘Parteto

Pareto is a great Italian and why YOU could do better in negotiations!

The Pareto principle (also known as the 80-20 rule, the law of the vital few, and the principle of factor scarcity) states that roughly 80% of the effects come from 20% of the causes. Business management thinker Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; he developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas. It is a common rule of thumb in business; e.g., „80% of your sales come from 20% of your clients.

Kurt Rohner, a master negotiator for almost two decades, transfers and applies the Pareto principle to negotiations. The first question is: “How much time do you need to invest to the gain know-how of negotiations, to multiply your own capability of negotiating by at least four times?”

The fundamental knowledge is to understand the nature of negotiations with the 4D-Model. Any negotiation, in business, in private life, in conflicts of any kind or even in court proceedings is tied to four dimensions. The first and root dimension is the interest of the involved parties. Parties may be single people, companies or organizations such as unions, political parties or states. Only the overlap of interest between parties defines a common ground as a prerequisite for any negotiation. The common interests define the substance, the content of negotiations as the second dimension in negotiation. Since there are always two or more parties involved the relationship between the parties define the third dimension of any negotiation. The fourth dimension is the process of the negotiation to obtain an agreement.

Understanding the 4D-Model of interest, substance, relationship and the process will give any negotiator a simple map to navigate any kind of negotiation.

In his speech Kurt Rohner will present the 4D model as a base for understanding how to achieve better results in negotiations.

In the substance dimension there are two fundamentally different approaches to reach agreement. The most common and widely ingrained style is the bargaining. Some people call it the bazaar-method to divide one point in discussion. In the orient this method is cultivated to reach agreement on prices on goods traded. This distributive approach in negotiations is a good and efficient method if one single item is under discussion. However in the complex world of today many negotiations embrace several points to negotiate. Having multiple issues to negotiate this method does not produce satisfactory results to any party.

A complete different approach any business person to be familiar with, is the integrative method. Often this method is referred to as the Harvard-Principle. Kurt Rohner will demonstrate and explain the integrative method in an easy to understand and fast to apply method. It is the story of four women haggling for two eggs.

If you are ready to invest two hours to the presentation of Kurt Rohner in the event of Performance Strategies in Bologna you will have return equal to the Pareto principle. Immediately you will achieve better results in your negotiations.

Get in touch with me and you shall receive the details.