Business Negotiations

Adapted from “Is Your Counterpart Rational . . . Really?” by Deepak Malhotra (professor, Harvard Business School), first published in the Negotiation newsletter, March 2006.

How can you negotiate with someone who seems irrational? First, by questioning whether it is reasonable for you to judge your counterparts as irrational. As it turns out, behavior that negotiators … Read When irrationality isn’t the issue

Adapted from “Managing for Better Results,” by Max H. Bazerman, first published in the Negotiation newsletter, October 2008.

If you’ve ever been disappointed by the negotiation results of your sales force, you’re not alone. There could be many reasons for your employees’ unimpressive results, but there are two most likely culprits: a failure to understand what … Read Set your sales force up for success

Adapted from “Learning to Be Creative,” first published in the Negotiation newsletter, April 2010.

In negotiation, creativity – the ability to generate new ideas – enables parties to generate solutions that expand the pie of value. Reflecting the common view that creativity is an innate talent that can’t be taught, most organizations seek out creatively minded … Read The creative negotiator

In an economic downturn, negotiation opportunities sometimes dry up because parties think they have nothing left to give. During times like these, bartering flourishes. Whether it’s toxic assets, piano lessons, manicures, or a fleet of new cars, most cash-strapped negotiators have something of value they can trade for what they want.

Bartering doesn’t need to be … Read Joining the barter economy

Adapted from “Disappointed by Results? Improve Accountability,” first published in the Negotiation newsletter, January 2009.

How can you make the negotiators who report to you more accountable for their behavior? When negotiators know they will have to justify their actions, they become more focused, researchers have found.

But accountability can backfire if negotiators become so vigilant … Read Holding negotiators accountable

Adapted from “A Contingent Contract? Weigh the Costs and Benefits of Making a ‘Bet’,” by Guhan Subramanian (professor, Harvard Law School and Harvard Business School), first published in the Negotiation newsletter, August 2006.

Contracts in professional sports are often chock-full of contingencies -“bets” that parties place on their different expectations of future outcomes – and former … Read Don’t rush into a flawed contract

Adapted from “Negotiations versus Auctions: New Advice for Buyers,” first published in the Negotiation newsletter, August 2007.

Economists have long advocated auctions as an effective means of increasing value. Yet recent research contradicts this conventional wisdom. In fact, as compared with negotiations, auctions can actually raise prices in procurement contracts. Suppliers tend to prefer negotiations because … Read When Negotiation Trumps Procurement Auctions

As Zdeno Chara, the captain of the Boston Bruins, hoisted the Stanley Cup at the conclusion of the 2011 Stanley Cup playoffs, fans could celebrate with abandon, secure in the knowledge that their star defenseman will be wearing black and gold through the 2017-2018 season. Without the last minute contract extension signed days before … Learn More About This Program