scenario:
Mitch James is a business writer who has been freelancing for the last decade. He has had articles and essays published in a number of publications including MoneySense, the Globe’s Report on Business, the Financial Times, Maclean’s, and many more. When Mitch first started freelancing it was exciting to pitch articles and negotiate contracts. He made some good contacts in the industry over the years. The novelty, however, has worn off. He actually misses the regular paycheque and benefits of his previous job. His former colleague Janice mentioned that she was looking for a communications expert for her organization, and she suggested to Mitch that he consider the job.
For the last five years, Janice Brown has been executive director of a local non-profit organization that supports development of the renewable energy industry. The organization is looking at hiring a communications person to handle their communications, marketing and outreach efforts. The organization’s board has authorized Janice to offer up to $59,000 to the successful candidate. Of course, the board would ideally like the salary to be lower, if possible.
Janice has told them about Mitch, and the board has agreed that she should invite him to consider the position. Up until now, the organization has outsourced its communications needs, spending approximately $40,000 a year on various consultants as required.
Mitch is very interested in the position – he’s interested in the organization’s work and it has an excellent reputation — but it will depend on how much the job pays. As a freelancer, his income has varied anywhere from $30,000 to about $80,000, depending on the year and how much work he was able to secure.
Question: How would the principles of interest-based negotiation apply in this situation?
Your answer should address the following:
• Why should Mitch engage in interest-based negotiation instead of positional bargaining?
• What are Mitch’s interests, and what are some of the non-profit’s interests?
• What might some options for mutual gain be? (The ability to generate creative options is a skill worth developing, so give it a try here!)
• What kind of objective standard(s) might be useful in this situation?
• What do you think should be Mitch’s Best Alternative to a Negotiated Agreement (BATNA)? See if you can think of two credible alternatives.
• If you were Mitch’s best friend, what advice would you give him as he embarks on this negotiation?
