Part of building a big business is negotiation. We negotiate all the time – with our employees, customers, partners, and investors. But what if our model of negotiation is wrong and there is a better way to split the pie? Barry Nalebuff of Honest Tea stands up at the Menlo CEO Summit shares his way of approaching a successful negotiation.
Barry begins his talk by using simple examples where the negotiation is done with all the cards open on the table. He moves progressively on to more complicated situations including cost savings, mergers, and where the gains are uncertain. What do we take away when all is said and done? The big idea is seeing everything in terms of What is the Pie. This perspective challenges the traditional notion of power in negotiation. He provides a compelling alterative to simple proportional division. The approach is based on game theory and his own experiences building Honest Tea and negotiating to a successful outcome with The Coca-Cola Company.