How to Use Tradeoffs to Create Value in Your Negotiations
How do expectations of fairness and reciprocity at the bargaining table impact negotiator decisions regarding the strategies and tactics they use at the negotiation table? … Read More
Win-win negotiations are those negotiations in which each party walks away from the bargaining table having achieved its goals within the confines of an integrative, or value-creating, bargaining process rather than through a haggling, or distributive, bargaining process. Win-win negotiation is a principle feature of integrative bargaining and is promoted by the Program on Negotiation throughout its literature and research. Win-win strategies are all about increasing your opponent’s satisfaction even as you achieve the outcome you desire.
Using these strategies can also be a powerful tool of persuasion when faced with tall odds or powerful opponents. Examples of win-win negotiations are delivered throughout the Program on Negotiation site, from Mayor Michael Bloomberg versus the New York teachers’ union, to an end to the NHL lockout, to the use of win-win strategies in the intractable Middle East, to Disney Corp.’s purchase of Lucasfilm.
Some examples of win-win strategies:
Skilled negotiators manage expectations prior to and during a negotiation. Some managers do this instinctively. They also avoid making concessions too soon to avoid increasing their opponents’ expectations.
Ensure that our opponent perceives his outcome as beneficial by being modest about your gains from a deal, and commend your counterpart for his hard bargaining.
Give your negotiation counterpart a voice in the decision process. Even when you’re in a position of power, be sure to acknowledge your counterpart’s perspective and invite him or her to express his views, to suggest alternatives, and to react to initial proposals. You can also enhance perceptions of fairness after an outcome has been reached by providing detailed explanations for unappealing actions or outcomes.
The Program on Negotiation also discusses tactics such as this:
Share information: Instead of assuming your interests are directly opposed to your counterparts’ interests, provide information that could lead to wise tradeoffs
Reject the “fixed pie:” It’s easy to assume that the pie of resources to allocate is fixed; when in fact there are opportunities to expand the pie by creating value.
Avoid anchoring on the first offer: Don’t become overly affected by the first number entered into the negotiation.
Set concrete goals: By setting concrete goals in advance, you won’t be swayed by other’s influence tactics, vivid stories, and hard bargaining techniques.
Avoid dwelling on the past: Past investments should rarely affect our decisions about the future
Take your time: When you’re pressed into making snap decisions, your thinking will be more intuitive and less rational
How do expectations of fairness and reciprocity at the bargaining table impact negotiator decisions regarding the strategies and tactics they use at the negotiation table? … Read More
This negotiation case study demonstrates the power of coalitions to achieve objectives at the bargaining table. How can negotiators cooperate with bargaining counterparts to create value for both sides? Here is the strategy used by Wyoming ranchers to achieve just that. … Read More
When we think of win-lose negotiation examples, we think of competitions in which it seemed that one party had to succeed and the other had to fail. In fact, in the majority of win-lose negotiation examples, a win-win negotiation was possible, but parties overlooked opportunities to create value. As a consequence, they reached subpar results. … Read More
If a pet project of yours is facing an up-or-down vote, negotiation can be a powerful tool to help sway the outcome in your favor. One example was New York governor Andrew M. Cuomo’s successful campaign to legalize same-sex marriage in the state, as described by Michael Barbaro in the New York Times. … Read More
When U.S. First Lady Michelle Obama was offered her first job after law school, it didn’t even occur to her to negotiate for a higher salary, she said in a recent interview in Parade magazine. … Read More
No one likes strikes. They can be financially devastating to employers and employees alike. And because strikes inconvenience the public, whatever popular support striking workers gain may fade when a strike drags on over time. … Read More
The following question was asked of Andrew Wasynczuk, MBA Class of 1953 and Senior Lecturer of Business Administration Harvard Business School in the Negotiation Briefings monthly “Ask the Negotiation Coach” column:
I run a midsized retail sports-apparel chain located in the southwestern United States. I’ve been searching for a seasoned executive to lead new store expansion … Read More
It seemed to be a match made in Internet heaven. In late 2010, Google made a $6 billion bid for Groupon, the Chicagobased company that emails daily coupon deals for local goods and services to consumers around the world. (If enough people sign up, the daily deal “tips,” meaning the coupons are issued; otherwise, the … Read More
Negotiators seeking to break through the mythical fixed-pie mindset can try the following three proven strategies, suggested by Max Bazerman for finding mutually beneficial tradeoffs. … Read More
National governments across the globe face the challenge of securing enough doses of a safe, effective coronavirus vaccine when one or more become available. Many wealthier nations are taking a competitive approach to this negotiation challenge, jostling with each other to tie up deals with pharmaceutical companies for the most promising vaccine candidates. A coordinated … Read More