Business Negotiations

Effective business negotiation is a core leadership and management skill. This is the ability to negotiate effectively in a wide range of business contexts, including dealmaking, employment discussions, corporate team building, labor/management talks, contracts, handling disputes, employee compensation, business acquisitions, vendor pricing and sales, real estate leases, and the fulfillment of contract obligations. Business negotiation is critical to be creative in any negotiation in a business setting. Business negotiation strategies include breaking the problem into smaller parts, considering unusual deal terms, and having your side brainstorm new ideas.

Leveraging the contrast effect is also a powerful tool in negotiations. You might ask for more than you realistically expect, accept rejection, and then shade your offer downward. Your counterpart is likely to find a reasonable offer even more appealing after rejecting an offer that’s out of the question. Additionally, offering several equivalent offers that aim higher than your counterpart is likely to accept will elicit reactions that can help you frame a subsequent set that, thanks in part to the contrast effect, are more likely to hit the mark.

Building a team is critical to negotiations in business. To prevent conflicts among diverse, strong-minded team members from overshadowing group goals, negotiation teams should spend at least twice as much time preparing for upcoming talks as they expect to spend at the table. Because the other side will be ready and willing to exploit any chinks in your team’s armor, it’s important to hash out your differences in advance.

Other business negotiation tips include curbing overconfidence, creating value in the negotiation, establishing a powerful BATNA, effective use of emotions at the bargaining table, caucusing, delineating your zone of possible agreement, and other skills geared toward an integrative bargaining outcome rather than a distributive, or haggling, bargaining outcome.

In addition, considering the ethical and legal repercussions of a deal to insure that it is a true win-win is the hallmark of every experienced business negotiator.

Articles include many business negotiation examples, and explore concepts such as creative dealmaking, renegotiating unfavorable deals, seeking advice from a negotiation opponent, identifying a solid BATNA and crafting draft agreements.

See full description

Pull Ahead of the Pack

PON Staff   •  10/18/2010   •  Filed in Business Negotiations, Daily

Adapted from “Think You’re Powerless? Think Again,” first published in the Negotiation newsletter.

If your organization regularly bids for business, you may be accustomed to feeling like the weaker party, write Deepak Malhotra and Max H. Bazerman in their book Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond … Read Pull Ahead of the Pack

Help Them Be More Certain

PON Staff   •  10/11/2010   •  Filed in Business Negotiations, Daily

Adapted from “Everybody’s Doing It,” by Robert B. Cialdini (professor, Arizona State University), first published in the Negotiation newsletter.

Brown University Medical School researchers conducted a fascinating study on the factors that influence adolescents to take up cigarette smoking. As expected, several personal, familial, and social circumstances were to blame. For instance, teens who had been … Read Help Them Be More Certain

See No Evil: Why We Overlook Other People’s Unethical Behavior

PON Staff   •  10/01/2010   •  Filed in Business Negotiations, Daily

Francesca Gino, Don A. Moore, and Max Bazerman (Jesse Isidor Straus Professor of Business Administration, Harvard Business School)

Managers unknowingly promote unethical behavior in the way they issue orders to subordinates or outsource work or mishandle their priorities. The result:  scandals that can cost trillions of dollars. In this article, the authors explain how leaders can … Learn More About This Program

Keep it Out of Court

PON Staff   •  09/27/2010   •  Filed in Business Negotiations, Daily

Adapted from “Turn Disputes into Deals,” by by Robert H. Mnookin (professor, Harvard Law School) first published in the Negotiation newsletter.

In 1982, writer and movie producer Art Buchwald wrote a screen treatment that his partner, Alain Bernheim, pitched to Paramount Pictures. Settling upon the title King for a Day, Paramount and Bernheim entered into an … Read Keep it Out of Court

Negotiating for Career Satisfaction

PON Staff   •  09/20/2010   •  Filed in Business Negotiations, Daily

Adapted from “Beyond Salary: Negotiating for Job Satisfaction and Success,” first published in the Negotiation newsletter.

Most people enter employment negotiations assuming that compensation and benefits are the only issues on the table, according to Negotiation editorial board member David Lax. By contrast, enlightened job seekers realize these concerns are only part of the picture. In … Read Negotiating for Career Satisfaction

A World of Difference: How Culture Affects Negotiating Style

PON Staff   •  09/17/2010   •  Filed in Business Negotiations

Tufts Magazine, Tufts University: Negotiating Life

Jeswald W. Salacuse (Henry J. Baker Professor of Law; former Dean, Fletcher School of Law and Diplomacy, Tufts University; author of The Global Negotiator and Seven Secrets for Negotiating with Government

Negotiation may be a universal tool, but culture affects how people around the world wield it. In this article, professor … Learn More About This Program

Don’t Be Cursed

PON Staff   •  09/06/2010   •  Filed in Business Negotiations, Daily

negotiations

Adapted from “How to Win an Auction—and Avoid the Sinking Feeling that You Overbid,” first published in the Negotiation newsletter.

Imagine that at the beginning of class, a professor produces a jar full of coins and announces that he is auctioning it off. Students can write down a bid, he explains, and the highest bidder will … Read Don’t Be Cursed

Set Yourself Up for Success

PON Staff   •  08/23/2010   •  Filed in Business Negotiations, Daily

Adapted from “Do a 3-D Audit of Barriers to Agreement,” by James K. Sebenius (professor, Harvard Business School), first published in the Negotiation newsletter.

When talks stall, it’s tempting to jump to conclusions: “They’re being unreasonable.” “We’re not communicating well.” “We’re in a weak position.” Sometimes, however, setup barriers are to blame—that is, you don’t have … Read Set Yourself Up for Success

Would you like us to inform you when new posts become available?

We hate spam as much as you do. You have our promise not to sell or share your email address — ever! Please read our privacy policy.