Smart Negotiator

KELD JENSEN, DBA, is a globally recognized negotiation expert, author of 27 books, and professor at leading universities. He is the founder of the SMARTnership Negotiation Organization, ranked among the world’s top 3 negotiation programs. He has advised on deals exceeding $12 billion.

• Introduction: The Evolving World of Negotiation 1A Forgotten Potential in Negotiation 2Capitalizing on Potential 2Is Negotiation a Science or an Art? 2Introduction to a New Era: Negotiation in a World of Sharks—and AI 3The New Negotiator at the Table: Artificial Intelligence 4The Evolution of Negotiation: From Zero-Sum to AI-Enhanced Value Creation 4Understanding AI’s Role in Modern Negotiation 5The SMARTnership AI Framework 6Challenges and Ethical Considerations 6Practical Implementation: Getting Started with AI-Enhanced Negotiation 7Looking Ahead: The Future of AI in Negotiation 8Conclusion: A New Era of Value Creation 8Part I The Foundations of Negotiation:Strategy, Value, and AI 91 The History of Negotiation 11How AI Is Shaping Negotiation 13Data-Driven Preparation 13Enhanced Decision-Making 13Real-Time Assistance 13Cross-Cultural Negotiation 14Efficiency and Scalability 14Challenges and Ethical Considerations with AI 14A New Era of Negotiation 152 Compelling Reasons to Focus on AI for Negotiations 17The New Attendee at the Negotiation Table: AI 18The AI Edge: Enhancing Negotiation Capabilities 19The Human Advantage: Why People Still Drive Negotiation 20Better Together: The Human-AI Alliance 20The Three A’s: Your Guide to Mastery in AI-Enhanced Negotiation 213 Revolutionizing Commercial Relationships: The SMARTnership Approach 23The Roadmap for SMARTnership 24The $3.25 Trillion Opportunity You’re Ignoring 24What Is NegoEconomics? 25Enter SMARTnership 27Distributive Negotiations Generates Poor Economics for All 27A Bigger Pie Means More for Everyone 28SMARTnerships, Partnerships, or Zero-Sum Games 29Do You Actually Have a Negotiation Strategy? 29SMARTnership in Action 30The SMARTnership Advantage 31Lessons for SMART Negotiators 32Ten Landmark Negotiations: Mastering the Art of Strategic Deal-Making 32Tesla and Panasonic: Powering the Future 32Disney and Pixar: Creativity Meets Corporate Strategy 32IBM and Lenovo: Strategic Global Shift 33The Camp David Accords: Peace in the Middle East 33Google’s Acquisition of YouTube: Scaling Digital Content 33Microsoft’s Acquisition of LinkedIn: Building a Professional Network 34The Paris Climate Agreement: Global Cooperation for a Common Goal 34Amazon’s Purchase of Whole Foods: Revolutionizing Retail 35Sony and Marvel Studios: The Spider-Man Deal 35PayPal and eBay: Merging for Mutual Growth 35The Art of Strategic Deal-Making 364 Defining the Rules of the Game and Creating a Strategy 37Discussing Negotiation Before Negotiating 37Articulating a Negotiation Strategy for the Organization 38The Negotiation Code of Conduct 39Crafting Your Own Code of Conduct 40Conscious and Unconscious Negotiation with Yourself 41Preconceived Notions 41Time Is Negotiable 42Reschedule and Take Control 42Thinking Through the Transaction Ahead of Time 44Working with an Agenda 44Understanding the Other Party’s Intentions 44The Advantage of Preparing an Agenda 45Collaborating on an Agenda 45Advantages of Using an Agenda 45Taking the Initiative 45Controlling the Other Party 45Becoming More Prepared 46When an Agenda May Not Be Suitable 46Understanding the Other Party’s Requirements 46Integrating AI to Define the “Rules of the Game” and Develop a Negotiation Strategy 47Leveraging AI to Define the Rules of Engagement 47AI-Enhanced Negotiation Strategy Development 47Suggested Prompts for AI Integration 485 Prerequisites for a Successful Collaboration Agreement 49Requirements for Success 49The Chemistry Must Be Right 49Both Parties Must Believe in the Collaboration Model 50You Must Have Rational and Knowledgeable Negotiators 50You Must Have Communication Proficiency 51You Need a Spirit of Generosity 51Creativity Must Be a Priority 51How AI Can Help Craft and Execute Successful Collaboration Agreements 51Ensuring Compatibility: The Role of Human Chemistry 52Encouraging Belief in the Collaboration Model 52Enhancing Rationality and Knowledge in Negotiations 53Improving Communication Proficiency 53Fostering Generosity 54Encouraging Creativity in Solutions 54Supporting Managerial Tasks 546 Unveiling Value: The Hunt for NegoEconomics in Every Deal 57Key Principles of NegoEconomics 57Example: Selling a Gaming Console 58Example: Car Dealership Negotiation 58Benefits of Focusing on NegoEconomics 59The Room for Negotiation 59Simple Model to Locate NegoEconomics 59Locating NegoEconomics in a Project 61Examples of NegoEconomics 62From Public Authority to Commercial Enterprise 63Buying a Table in the 1950s: A Detailed Process 63Understanding the Shift in Furniture Packaging and Industry Transformation 64Lessons from the Furniture Industry’s Evolution 66Benchmarking and Applying NegoEconomics 66Financial Variables as NegoEconomic Opportunities 67Terms of Payment 67Ownership Models 68Pricing and Budgeting 68Currency Management: Money, Goods, or Services 71Initial Payments and Royalties 72A Strategic Approach to Balancing Requirements, Costs, and Negotiation 73Economies of Scale 75Time in Agreements 76Purchasing Patterns and Modern Commerce 77Rights 78Example: Tesla and Rivian Collaboration 78Leveraging AI in NegoEconomics 79Example: AI in Action for Tesla and Rivian 81AI Prompt Examples for NegoEconomics 81Part II Mastering the Art of Strategy 857 The Power of Generosity in Negotiation 87Rethinking Negotiation: A “Giver” Mindset 87Generosity as Strategic Capital 88SMARTnership and Generosity 88Overcoming the Myth: Why Generosity Isn’t a Weakness 88Tru$tCurrency and the “Giver Advantage” 89The Giver as the Ultimate Negotiator 89The Real Cost of Cheap 90Negotiation as the Antidote to Price Frenzy 91A New Paradigm for Negotiation 918 Success Is Based on Trust and Openness 93Building a Relationship with Your Counterpart 93Two-Way Communication 94Participate in an Open Dialogue 94Listen Actively 95Be Clear on What You Want 96Say What You Mean—Clearly and Directly 96Use Open Calculations 98Conflict Destroys Relationships 99A Third Party Can Help Build Rapport 99Informal Contacts Can Offer Valuable Insights 100Backdoor Selling 100A Tour of the Production Plant 101Understand Your Counterpart 102Using Alternatives to Strength Your Position 104Use Alternatives as a Trial Balloon 104Handling Trial Balloons Effectively 105Preventing Negotiations from Becoming Deadlocked 105Breaking a Deadlock in Negotiation 106Moving Past a Deadlock 107Breaking the Stalemate 108Avoiding Imbalance in the Information Flow 110Don’t Let the Counterpart Define the Playing Field 110Use Questions as a Negotiation Technique 111Using Hypothetical Questions Strategically 113How AI Can Assist in Creating a Culture of Trust and Openness in Negotiations 114Analyzing Human Chemistry and Compatibility 114Enhancing Communication Proficiency 114Facilitating Two-Way Communication 115Building Trust Through Open Calculations 115Improving Rapport Through Informal Interactions 115Enhancing the Use of Visuals and Demonstrations 116Breaking Deadlock with Data 116Using AI to Manage Information Flow 1179 Valuing Trust 119How Can You Value Trust? 119Creating Trust 120Apple iTunes 120Amazon’s “Customer Obsession” and AI Integration 120Netflix’s “Continue Watching” Feature 121How AI Can Enhance Trust in Business 122AI-Driven Insights for Building a Trust Strategy 122Why AI Matters in Trust-Building 12410 The Different Negotiation Styles 125The Five Main Negotiation Styles 125DISC Styles in Negotiation: Adapting to Achieve Better Outcomes 126What Is DISC? 127Negotiating with the Four DISC Styles 127Dominance (D): The Results-Driven Negotiator 127Influence (I): The Relationship-Oriented Negotiator 128Steadiness (S): The Harmonious Negotiator 129Compliance (C): The Analytical Negotiator 129DISC Styles in Negotiation Teams 130Dominance (D): The Natural Leader 130Influence (I): The Engaging Communicator 130Steadiness (S): The Dependable Anchor 130Compliance (C): The Analytical Expert 131Balancing DISC Styles for Success 131How AI Can Assist in Leveraging Negotiation Styles and DISC Framework 131AI’s Role in Supporting Negotiation Styles 132Behavior Analysis 132Dynamic Strategy Recommendations 132AI’s Role in DISC-Based Negotiations 132DISC Profiling 132Team Optimization 133Simulating DISC Scenarios 133Real-Time Feedback 133Additional Prompts for AI Assistance 134Benefits of Using AI for Identifying Negotiation Styles 13411 Masters of the Deal: What Sets Great Negotiators Apart 135Over 35,000 Negotiators Tested 135How Much Do All the Mistakes Cost? 136The Ketchup Effect 136Common Traits of Successful Negotiators 137They Analyze the Negotiation and the Negotiation Variables 138They Prioritize Important over Less Important Factors 138They Make a Decision and Put a Price on the Soft Variables 139They Embrace AI and Understand How to Prompt It Effectively 139They Often Outline the Negotiation on a Board to Get an Overview 139They Incorporate the Message of NegoEconomics 140They Take the Initiative During Negotiations 140They Are Good at Communicating 140They Have High But Realistic Goals 141They Quickly Start Negotiating 141They Try to Avoid Problems by Suggesting Alternatives 141They Create a Positive Negotiation Climate 142They Actively Present Offers and Counteroffers 142They Have a Strategy 142They Distribute the Roles Within the Group and Are Disciplined 143They Work Methodically 143They Do Not Dig Themselves into Foxholes and Fight About Details 143They Start Bargaining in Good Time 143They Take One Last Break Before Entering into an Agreement 144They Make a Point of Behaving in a Credible Manner 144Common Mistakes of Failing Negotiators 144They Only See Half the Negotiation 145They Aim Too Low 145They Do Not Actively Search for the NegoEconomics 147They Throw Themselves into Traditional Negotiation Fights 147Price Is More Important Than the Overall Costs 148The Concept of NegoEconomics Is Vague to Them 149They Overlook the Totality 150They Don’t Understand That the Partner Also Has to Make Money 151They Are Afraid of Opening Up 152They Work Unstructured 153They Have Not Distributed the Roles Within the Group 154They Are Afraid of Bargaining 155They Do Not Set Up a Strategy 156They Lose Their Grip on the Economy 157They Make Insultingly Low Offers 158They Do Not Accept That the Opponent Makes Money 159They Seek “Fair” Solutions 160They Are Not Good at Listening 160Preparing to Avoid Failure 160Other Common Mistakes in Negotiation 161The Personal Contact Is Forgotten 161They Do Not Understand the Opponent 162They Insult the Opponent 163They Forget the Other Interested Parties 164Cost Savings Within One Link Are Eaten Up by Problems in Another 164Exaggerated Suspiciousness Is Present 165There Is a Sense of Stinginess 165They Guard Preserves 165Political Value Norms Influence the Situation 166Envy Impacts the Process 166Cultural Differences Affect the Situation 167The “We-versus-Them” Feeling Hinders the Negotiation 167Leveraging AI for Negotiation Insights 168Part III the Future of Negotiation:AI, Psychology, and Advanced 16912 Creating AI Prompts for Negotiation-Specific Tasks 17113 AI in Negotiation: Amplifying Human Insight for SMARTnership Success 177Refining AI to Reflect Your Voice in Negotiation 177Overcoming Challenges in Negotiation Using AI Prompts 178Leveraging Emotion-Focused Prompts in Negotiation 179Building Empathy into Negotiation Messages 179Key Takeaways for Effective AI-Assisted Negotiation Writing 180The Irreplaceable Human Touch 180The Four Pillars of Human-AI Synergy in Negotiation 180Emotional Intelligence (EQ) in the Digital Age 180Cultural Intelligence (CQ) in a Connected World 181Relationship Architecture in the AI Era 181Creative Problem-Solving: The Human Advantage 182Practical Integration: The Human-AI Balance 182The Future of Human-AI Collaboration in Negotiation 183Conclusion: The Human Advantage 18414 AI as the Negotiator’s New Ally 185Preparation: Building a Solid Foundation 185Strategy: Designing Your Path to Success 186During the Negotiation: Real-Time Assistance 187Emotional Intelligence: Understanding and Responding 187Simulation: Practicing for Excellence 188Crafting Your Next Best Alternative (NBA) 188Communication: Streamlining Dialogues 189Review: Learning from the Process 189Conclusion: Your AI-Powered Negotiation Partner 19015 AI in Contracting: Redefining How to Write and Read Contracts 191The Challenges of Traditional Contracting 191How AI Transforms Contract Writing 192Automating Repetitive Tasks 192Simplifying Language 192Customizing Templates 193Embedding Goals and Values 193Enhancing Contract Reading with AI 193Simplifying Document Navigation 193Identifying Risk 193Providing Contextual Insights 194Providing Real-Time Explanations 194The Ethical Dimension of AI in Contracting 194The Future of AI in Contracting 195Contract Writing Prompts 195General Drafting Prompts 195Clause Suggestions 195Formatting and Structure 196Customization 196Scenario-Specific Drafting 196Clause Summarization 196Risk Identification 196Comparison 196Regulatory Compliance 197Quick Navigation 197Rewriting and Simplification 197Executive Summaries 197Creating FAQs 197Real-Time Questions 197Document Improvement 198Ethical Review 198SMARTnership Optimization 198Embracing AI for Better Contracts 19816 Lessons from the Field: Harnessing Artificial Intelligence in Negotiation 199A Case Study in AI-Driven Negotiation 200Key Details of the Experiment 200The Results: Unpacking the Experiment’s Findings 200Efficiency and Resolution 200Enhanced Preparation 201Behavioral Dynamics 201Challenges and Lessons from Integration 201Asymmetric Usage 201Learning Curve 202Employing AI as a Strategic Partner 202Standardization and Best Practices 202Ethical Considerations 202Machine-to-Machine Negotiation 202The Future of Negotiation in an AI-Driven World 203A New Paradigm for Negotiation 20317 Revolutionizing Negotiation with Real-Time AI Feedback 205The Power of Real-Time Data Analysis 205Emotion and Sentiment Analysis: The Empathy Engine 206Tactical Assistance on the Fly 207Simulating Scenarios for Better Outcomes 207Balancing Technology and Human Intuition 208Overcoming Challenges in AI-Driven Negotiation 208The Future of Real-Time AI Feedback 20918 Defining Authority Bias and Mitigating the Risk 211Origins of Authority Bias 211Modern Manifestations of Authority Bias 212How to Avoid Authority Bias 212Comparison to Anthropomorphism 213Beware of AI Solutions Searching for Problems 21319 The Power of Prompts in Negotiation 215Prompts to Prepare for Negotiations 216Prompts for Building Relationships and Rapport 216Prompts for Negotiation Strategies 218Prompts for Negotiation Tactics 219Prompts for Negotiation Scripts 219Prompts for Risk Management 219Prompts for Scenario Planning 220Prompts for Advanced Techniques 220Prompts for Metrics and Analysis 220Prompts for AI and Negotiation 220Prompts for Training and Development 221Prompts for Sustainability in Negotiations 221Prompts to Close the Deal 221Prompts for Conflict Resolution 221Prompts for Continuous Improvement 222Prompts for Leveraging Tru$tCurrency 222Scenario-Specific Prompts 222Prompts for Innovation in Negotiation 222Prompts for Ethical Considerations 223Prompts for Adding Final Touches 22320 The Role of Artificial Intelligence in Modern Negotiation Dynamics 225Efficiency: The New Paradigm 225The Power and Pitfalls of Information Asymmetry 226Challenges of AI-Driven Negotiation 226AI and SMARTnership: A Collaborative Approach 227Ethical and Regulatory Considerations 227The Future of Negotiation 228Implementing AI-Enhanced SMARTnership Strategies 229Measuring ROI: Quantifying the Impact of AI-Enhanced Strategies 229Financial Metrics 229Performance Metrics 230Relationship Value Metrics 230Change Management: Navigating the Transition to AI-Enhanced Negotiation 230Stakeholder Analysis and Engagement 230Implementation Roadmap 231Resistance Management 231Team Training: Building Competence in AI-Enhanced SMARTnership 231Core Competency Development 231Training Program Structure 232Certification Program 232Conclusion the Starting Point Is You 233Acknowledgments 235About the Author 237Index 239