What Would You Do? Intermediate Benchmarks

WWYD Intermediate Benchmarks 

(See the WWYD scenario

After the potential partners had successfully staked out their optimistic Like to Achieve position, Carol had them take on a new assignment.  In step one, they had actually achieved 2 aims — they had identified their key variables or deal-points in addition to staking out the upper limit to their negotiating range.

Now Carol asked them to focus on their key variables, but this time look for some kind of external index or benchmark that could support the key proposals.  Ideally, a good benchmark would be readily available, reliable, and match the value and price movements of the item being negotiated.  Plastic parts and some chemicals were indexed to the price of oil (Brent Crude Morning London price, for example).  If the price of the index moved then it indicated the rate for the index variable. 

What Would You Do if you were Al or Bob?  What eternal benchmarks, indices, or standards will work in each man’s favor?

Remember – Negotiators decide on their goals and variables first, and then find objective standards and indices that will enhance their bargaining position.  What kinds of benchmarks will help Al reach his goals?  What standards will enhance 

Al’s Variables: 

1.  50% ownership stake, equal decision-making authority

2.  Guarantee of salary package including severance package equal to 6 months gross compensation.

3.  Minimal investment, easy exit.

Bob’s Variables: 

1.  Control and solo decision-making authority across the board.

2.  Each partner contributes $25,000 immediately, and undertakes to provide seed funding of $50,000 within 8 weeks of incorporating.

3.  Airtight NDAs, non-competes, and other entanglements. 

What would you pick as your major benchmark and supporting standards?

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