The negotiation management course with professor Uta Herbst is intense, teaching for example the anchor and award theory and how to leave the negotiation table with a smile

The negotiation management course with professor Uta Herbst is intense, teaching for example the anchor and award theory and how to leave the negotiation table with a smile

ECG — 2024-12-10

News from ECG

The negotiation management course with professor Uta Herbst is intense, teaching for example the anchor and award theory and how to leave the negotiation table with a smile. “I give the participants the tools to start using the negotiation skills right away, both at work and in everyday life, since practice makes perfect”, says professor Uta Herbst.

Uta Herbst is a professor of business studies, University of Potsdam, and well known internationally as a negotiation expert. The negotiation courses in cooperation with ECG, the Association of European Vehicle Logistics, started before Corona which gave the course a bit of a crisis focus, but with the uncertain times in many European countries, there´s always a need for knowledge about negotiation, both for managing the company better, and for keeping good relations.

The next course will be held in Potsdam 21-22 January and 4-5 March, and there are still a few openings for participants from the FVL-industry.

The content of the course is based on research and scientific findings. Knowing the theories will help you in all types of negotiations”, she says.

One of the theories discussed in the course is the “anchor theory”, when you set an anchor, a lower price as a start of a negotiation. 

The negotiation starts with the first anchor”, says Uta Herbst and points at her watch and says, “You can buy this for 700.”
After the other person comes with a counter price, Uta Herbst is ready.

Then you can use the “reward effect” to base the bet on the anchor – like saying “I can´t give you 700, but I can give you 500”. Research tells me it´s a very good move to persuade the other side to find an agreement.”

The negotiation course is a 2 day long course designed for participants from the FVL-industry by going through all research findings, industry examples, real cases, and adapting theory to practical behavior. 

Uta Herbst takes even some bakery into the class. In the same way you need to start with whipping the eggs and sugar to make a cake, you need to start thinking negotiation in steps, first power, then issues, then anchoring, then rewarding and storytelling. 

I have been giving the negotiation course for 20 years, but it keeps changing due to research finding. By comparing it to a cooking recipe, you optimize the process and get a clear guidance in a logical order. Depending on the anchor, the reward is going to be small or large”, says Uta Herbst.

Is it essential to learn about negotiation in uncertain times?
Yes, I would think so. We teach how to act in one-to-one negotiation. We make observations on both sides’ uncertainties. In crisis negotiations, the margin for negotiation is shrinking”, Uta Herbst says.

If both sides fear to earn less, the emotions are higher, and a little less open. When the negotiation is less open, both sides stick to their position, and we will have a hard fight. If open, then I can offer a better price if you can give better return. Exchange in mutual interest starts by dealing with uncertainties.

But it can also be the opposite, especially if people have personal fears. One of the parties might fear to lose his job if he loses the negotiation.

In crisis, negotiation has more bilateral negative and less strategic game theoretical play. There is no room in those circumstances. Then you need to be stress resilient.

Is there a difference in negotiating regarding what industry you are in?
No, not really. If one of the biggest customers in the industry suffer, regardless of industry, the counterparts will get more difficult negotiations, since they will try to defend their position”,  says Uta Herbst.

What about different cultures?
Different cultures increase the difficulty in negotiations. You may think someone you´re negotiating with is stubborn, but he´s not. That might just be the way they do negotiations. There are many similarities, but also differences in nationalities.”

Why would you recommend this course?
It´s a good mixture of presentation and application and learning. After two days simulation game, the participants get the strength, to immediately apply the knowledge.

It will increase the margin and the satisfaction of making the process more effective. You learn to know where you stand, you can better evaluate your own performance”, says Uta Herbst.

One of the former participants is Mats Eriksson, CEO of AXESS Logistics with operations in Sweden, Norway and Denmark. 
“The course gives you an excellent tool for negotiating that can be used for internal or external negotiations in your company. The tools are easy to apply. Other courses tend to overcomplicate these issues. I found the tools applicable as soon as I left the course”, says Mats Eriksson and adds. "Uta Herbst is also an incredible knowledgeable lecturer and inspiration. There is no exaggeration to compare her courses to those of be INSEAD.”