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 =$150,000Lot Sale Price = $150,000

• Mr. Johnson– Home Sale $150,000– Lot Sale $150,000– Mortgage Payoff -$50,000

– Total $250,000 ($100K home + 150K cash)

Home Sale Price =$150,000Lot Sale Price = $150,000

• Mr. Smith– Condos for sale x 2 $600,000– Gym Enhancement $800,000 ($20K x 40)– Home Cost -$150,000– Lot Cost -$150,000– Construction Condo -$200,000– Construction Gym -$200,000

– Total $700,000

Home Sale Price =$150,000Lot 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 CondoMortgage Payoff

• Mr. Johnson– Condo Value (while alive) $320,000– Mortgage Payoff $50,000

– Total $370,000

Rent-free CondoMortgage Payoff

• Mr. Smith– Condos for sale x 2 $600,000– Gym Enhancement $800,000 ($20K x 40)– Home Cost $0– Lot Cost $0– Construction Condo -$200,000– Construction Gym -$200,000– Mortgage Payoff -$50,000

– Total $950,000

Rent-free CondoMortgage Payoff

• ZOPA, Home: $270,000• ZOPA, Lot: $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

CommonPatientsNursesConsultants

What are our choices?

Ignore itTalk about itTake it to a higher level

Ignore it

Sometimes ignoring is okHow to know when

Talking about it

Master your storyGetting startedLearning to ListenMaking a PlanFollowing 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 hearTell a story

Ugly story?

FeelAct

Patterson, K, Grenny, J, McMillan R, & Switzler, A. Crucial Conversations. NY, NY:

McGraw Hill, 2005.

What HappenedFeelingsIdentity

Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,

1999.

Sorting out our story

Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,

1999.

Sorting out our story

Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,

1999.

Sorting out our story

Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,

1999.

Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,

1999.

Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,

1999.

How to get started?

Third story

Create safety

Extend an InvitationMutual RespectMutual Purpose

Third storyTheir storyYour 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. Organizational Behavior and Human Decision Processes, 56(1), 110-133.• Medvec VH, Madey SF, Gilovich T. (1995). When Less is More: Counterfactual Thinking and Satisfaction

Among Olympic Medalists. Journal of Personality & Social Psychology, 69(4), 603-610.• Cialdini R, Vincent J, Lewis S, Catalan J, Wheeler D, Darby B. (1975). Reciprocal Concessions Procedure

for Inducing Compliance: The Door-in-the-Face Technique. Journal of Personality and Social Psychology, 31, 206-215.

• Taylor T, Booth-Butterfield S. (1993). Getting a Foot in the Door with Drinking and Driving: A Field Study of Healthy Influence. Communication Research Reports, 10, 95-101.

• Langer EJ, Blank A, Chanowitz B. (1978). The Mindlessness of Ostensibly Thoughtful Action: The Role of “Placebic” Information in Interpersonal Interaction. Journal of Personality & Social Psychology, 36, 635-642.

• Cialdini RB. (January 2004). Everybody’s Doing It. Negotiations, 7.• James JM, Bolstein R. (Winter 1992). 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.