CBN Value Creation & Claiming Flashcards

What does 'value claiming' refer to in business negotiation?

Answer: Capturing as much as possible of the available deal value for yourself

Value claiming involves using negotiation tactics to secure the largest possible share of the deal's total available value.

How can anchoring be used as a value-claiming tactic?

Answer: By making the first offer to set a reference point that influences the final outcome

A strong opening anchor biases subsequent negotiations toward that reference point, helping the anchoring party claim more value.

What is the tension between value creation and value claiming in negotiation?

Answer: Creating value requires openness, while claiming value requires withholding information

The negotiator's dilemma arises because sharing information creates value but also exposes weaknesses that the other party can exploit when claiming value.

Which strategy allows a negotiator to both create and claim value effectively?

Answer: Sequencing — create value first through collaboration, then claim strategically

Skilled negotiators first expand available value through collaboration, then use strategic techniques to secure their fair share of that value.

What is a 'package deal' and how does it support value creation?

Answer: Bundling multiple issues together to enable trades that increase overall value

Package deals allow parties to make trades across multiple issues simultaneously, often creating more value than negotiating each issue separately.

In CBN, how do contingent agreements contribute to value creation?

Answer: They allow parties to make deals even when they have different expectations about the future

Contingent agreements let parties structure deals around future uncertainties, enabling agreement when parties have different forecasts about outcomes.