CBN Value Creation & Claiming Flashcards

What is 'value creation' in the context of business negotiation?

Answer: Expanding the total benefits available to both parties through collaborative problem-solving

Value creation involves finding mutually beneficial trades that increase the overall size of the deal rather than simply dividing a fixed resource.

What negotiation approach is most closely associated with value creation?

Answer: Integrative negotiation focused on mutual gains

Integrative negotiation focuses on identifying shared interests and creative trades that benefit both parties simultaneously.

In CBN methodology, what does 'expanding the pie' mean?

Answer: Identifying trades that increase total value before dividing it between parties

Expanding the pie means finding additional value through creative solutions before negotiating how to distribute that value.

Which technique best helps identify opportunities for value creation?

Answer: Trading on differences in priorities between the two parties

When parties value issues differently, trades can be made that give each side more of what they care about most at minimal cost to the other.

Why is information sharing important in value-creating negotiations?

Answer: It reveals interests and priorities that enable creative trades between parties

Sharing information about priorities and constraints allows both parties to identify trades that create more value than positional bargaining.

What is 'logrolling' in value-creating negotiations?

Answer: Trading concessions on different issues based on each party's priorities

Logrolling involves making trades where each party concedes on issues they value less in exchange for gains on issues they value more.