Condo Case Analysis RV and ZOPA • Reservation Values, Home – Mr. Johnson: $130,000 (market value) – Mr. Smith: $400,000 (Value of 2 condos minus construction costs) – ZOPA = $130,000-$400,000 = $270,000 • Reservation Values, Lot – Mr. Johnson: $50,000 (market value) – Mr. Smith: $600,000 (added gym value minus construction costs) – ZOPA = $50,000-$600,000 = $550,000 Home Sale Price =$150,000 Lot Sale Price = $150,000 • Mr. Johnson – Home Sale – Lot Sale – Mortgage Payoff $150,000 $150,000 -$50,000 – Total $250,000 ($100K home + 150K cash) Home Sale Price =$150,000 Lot Sale Price = $150,000 • Mr. Smith – Condos for sale x 2 – Gym Enhancement – Home Cost – Lot Cost – Construction Condo – Construction Gym $600,000 $800,000 ($20K x 40) -$150,000 -$150,000 -$200,000 -$200,000 – Total $700,000 Home Sale Price =$150,000 Lot Sale Price = $150,000 • ZOPA, Home: $270,000 • ZOPA, Lot: $550,000 • Total Value Generated: – Mr. Johnson $300,000-$180,000(RV) = $120,000 – Mr. Smith $1,000,000(RV)-$300,000 = $700,000 – Total: $820,000 Rent-free Condo Mortgage Payoff • Mr. Johnson – Condo Value (while alive) $320,000 – Mortgage Payoff $50,000 – Total $370,000 Rent-free Condo Mortgage Payoff • Mr. Smith – Condos for sale x 2 – Gym Enhancement – Home Cost – Lot Cost – Construction Condo – Construction Gym – Mortgage Payoff $600,000 $800,000 ($20K x 40) $0 $0 -$200,000 -$200,000 -$50,000 – Total $950,000 Rent-free Condo Mortgage Payoff • ZOPA, Home: • ZOPA, Lot: $270,000 $550,000 • Total Value Generated: – Mr. Johnson $370,000-$180,000(RV) = $190,000 – Mr. Smith $1,000,000(RV)-$50,000 = $950,000 – Total: $1,140,000 Conflict Management Objectives Understand the concepts of conflict management Describe different styles of conflict management Apply communication strategies to increase effectiveness in conflict conversations Conflict is the interaction of interdependent people who perceive incompatible goals and interference from each other in achieving those goals Conflict is the interaction of interdependent people who perceive incompatible goals and interference from each other in achieving those goals Conflict in ED Common Patients Nurses Consultants What are our choices? Ignore it Talk about it Take it to a higher level Ignore it Sometimes ignoring is ok How to know when Talking about it Master your story Getting started Learning to Listen Making a Plan Following Up Have you ever noticed? Anybody going slower than you is an idiot, and anyone going faster than you is a maniac? -George Carlin Master your story See and hear Tell a story Ugly story? Feel Act Patterson, K, Grenny, J, McMillan R, & Switzler, A. Crucial Conversations. NY, NY: McGraw Hill, 2005. What Happened Feelings Identity Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books, 1999. Sorting out our story What Happened Truth Assumption Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books, 1999. Sorting out our story What Happened Intentions Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books, 1999. Sorting out our story What Happened Blame vs Contribution Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books, 1999. Feelings Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books, 1999. Identity Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books, 1999. How to get started? Third story Create safety Extend an Invitation Mutual Respect Mutual Purpose Third story Their story Your story Listen Speak Clearly Agree on a Plan Follow up What if they didn’t read the same books? Letting Go Practice References • • • • • • • • • • • • • • • • • Malhotra, Deepak, and Max Bazerman. Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond. New York: Bantam, 2007 Tyversky A, Kahneman D. (1981). The Framing of Decisions and Psychology of Choice. Science, 211(4481), 453-458 U.S. News & World Report (2005, January 30), 52. (egocentrism) Kramer RM, Newton E, Pommerenke PL. (1993). Self-Enhancement Biases and Negotiator Judgment: Effects of Self-Esteem and Mood. 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Large Monetary Incentives and Their Effect on Nail Survey Response Rates. Public Opinion Quarterly, 56, 442-453. Rick Foster, President, Foster, Hicks and Associates Leadership and Team Consultants Patterson K, Grenny J, McMillan R, & Switzler A. Crucial Conversations. NY, NY: McGraw Hill, 2005. Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books, 1999. Wilmot W & Hocker J. Interpersonal Conflict. Seventh edition. NY, NY: McGraw Hill, 2005. Stewart J. Bridges Not Walls. Ninth edition. NY, NY: McGraw Hill, 2005. Conger J. The Necessary Art of Persuasion. Harvard Business Review Classics. 2008 Tannen D. The Power of Talk: Who Gets Heard and Why. Harvard Business Review. Sept-Oct 1995.