ORGS 4560 Lecture 4: Getting Past Yes
2 Jan 2016
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Getting past yes: negotiating as if implementation mattered. At&t and bt announce 50/50 joint venture, concert: value billion start-up, would pool assets, talent and relationships, expected to generated billion in profit from day one. Reality: concert was out of business 3 years later; thousands of employees laid off and billion announced in charges. Reason for demise: weak market condition + the way the deal was put together: at&t negotiators secured key multinational customers for itself. Both companies ended up in direct competition for business. Concert was institutionalized to prevent this cannibalization: bt refused to contribute to at&t"s purchase of ibm global network. Saved bt money but left concert with overlapping products: questions about revenue recognition, competing offerings, and account ownership (pertaining to concert) went unanswered. A problem"s roots are anchored in the deal"s inception: do not just focus on signing the deal, but on the process of creating value.
