tradeoffs

The following items are tagged tradeoffs

Daily

MESO Negotiation Strategies and Negotiation Techniques

Posted by & filed under Dealmaking.

negotiation strategies and negotiation techniques meso negotiation

MESO negotiation techniques for negotiators include creating value at the bargaining table by identifying multiple proposals of equal value and presenting them to your counterpart simultaneously. By making tradeoffs across issues, parties can obtain greater value on the issues that are most important to them. But how can you be sure you’re making the right … Read More 

Product

Prioritizing Climate Change Adaptation Measures

Posted by & filed under .

Elizabeth Fierman under the supervision of David Fairman, David Plumb, Lawrence Susskind, Philip Angell, and Kelly Levin Eight-party negotiation (with option for a ninth person facilitator) regarding climate change issues in a situation loosely based on the situation in Viet Nam. … Read More 

Free Report

Daily

What is a Win-Win Negotiation?

Posted by & filed under Win-Win Negotiations.

What is a Win-Win Negotiation?

In an episode of the American television show The Office, bumbling manager Michael Scott consults with a manual on conflict resolution while attempting to mediate a dispute between two of his subordinates, Angela and Oscar. After Scott explains that there are five approaches to resolving conflict, beginning with “win-lose,” an annoyed Angela interrupts: “Can we … Read More 

Product

Free Report

Daily

Integrative Negotiation Examples: MESOs and Expanding the Pie

Posted by & filed under Dealmaking.

Integrative Negotiation Examples: MESOs and Expanding the Pie

In our society, we’re bombarded with a multitude of decisions each day, beginning with the increasingly complex question of how to order our morning coffee. In his book The Paradox of Choice: Why More Is Less (Ecco, 2004), Swarthmore College psychology professor Barry Schwartz describes the contemporary phenomenon of becoming exhausted by “the tyranny of … Read More 

Product

You Can’t Enlarge the Pie Six Barriers to Effective Government

Posted by & filed under .

When they learn how to negotiate and solve problems, students in management schools are taught two things. First, they are to look for and recognize any cognitive biases that may be affecting their own decisions about possible solutions. Second, in any disagreement, they are to seek out “wise tradeoffs”: resolutions that minimize the costs and … Read More 

Free Report

Daily

Product

Humboldt

Posted by & filed under .

Lawrence Susskind Eight-person, multi-issue mediation among regional government, environmental, development, and business interests regarding environmental and economic tradeoffs and ethical issues in the development of a manufacturing plant … Read More 

Daily

Daily

For Price Negotiators, Preparation is the Key to Success

Posted by & filed under Dealmaking.

For Price Negotiators Preparation is the Key to Success

Some cultures have a long tradition of haggling—bargaining back and forth about the price of an item—in markets and bazaars. By contrast, in the United States and many other countries, haggling between buyers and sellers is an under-practiced skill. You might routinely pass up opportunities to haggle in situations where financial negotiations are not the … Read More 

Daily

Daily

Daily

Dealing with Difficult People? Negotiation Lessons from Ronald Reagan

Posted by & filed under Conflict Resolution.

Dealing with Difficult People? Negotiation Lessons from Ronald Reagan

In recent months, U.S. President Barack Obama and other world leaders have struggled to find a winning strategy to convince Russian President Vladimir Putin to back away from his aggressions toward Ukraine. In a Wall Street Journal editorial, Ken Adelman, U.S. President Ronald Reagan’s ambassador to the United Nations and arms-control director, writes that recently … Read More 

Daily

5 Good Negotiation Techniques

Posted by & filed under Negotiation Skills.

Use Integrative Negotiation Strategies to Create Value at the Bargaining Table

You’ve mastered the basics of good negotiation techniques: you prepare thoroughly, take time to build rapport, make the first offer when you have a strong sense of the bargaining range, and search for wise tradeoffs across issues to create value. Now, it’s time to absorb five lesser-known but similarly effective negotiation topics and techniques that … Read More 

Daily

Conflict Management and Negotiation: Personality and Individual Differences That Matter

Posted by & filed under Conflict Resolution.

Although Elfenbein and her colleagues did find that negotiators performed at a similar level from one negotiation to the next, to their surprise, these scores were only minimally related to specific personality traits. And traits that are basically unchangeable, such as gender, ethnic background, and physical attractiveness, were not closely connected to people’s scores. A small … Read More 

Daily

International Negotiations and Agenda Setting: Controlling the Flow of the Negotiation Process

Posted by & filed under Uncategorized.

international negotiations and agenda setting

When two groups are embroiled in a conflict, it is common for the party with less power to have difficulty convincing the more powerful party to sit down at the negotiating table in international negotiations. Think of a labor union that wants to convince company management to agree to pay increases. In such cases, the … Read More 

Daily

Daily

Daily

Union Strikes and Dispute Resolution Strategies

Posted by & filed under Dispute Resolution.

Union Strikes and Dispute Resolution Strategies

When a conflict looms, it can be tempting for each side to try to make unilateral decisions on key issues because of the belief that negotiations with the other side will be a dead end. This dispute resolution strategy may pay off in the short term, but it’s important to factor in the long-term costs … Read More 

Daily

Daily

Why Great Negotiators Earn More Money

Posted by & filed under Uncategorized.

Why Great Negotiators Earn More Money

What’s the best way to claim more money in a negotiation? Many professional negotiators would recommend hard-bargaining tactics, such as asking the other party to disclose their bottom line, standing firm on price, and threatening to walk away. But truly great negotiators recognize that using haggling strategies alone may leave significant money on the table. … Read More 

Daily

Daily

Daily

Daily

How to Overcome Cultural Barriers to Communication in International Negotiations

Posted by & filed under Uncategorized.

how to overcome cultural barriers to communication in international negotiations

How to overcome cultural barriers to communication: As members of organizations and families, we all know from experience that even people with identical backgrounds can have vastly different negotiating styles and values. Nonetheless, we continue to be intrigued by the idea that distinct patterns emerge between negotiators from different cultures. … Read More 

Daily

For Professional Negotiators, Three Is a Magic Number

Posted by & filed under Uncategorized.

professional negotiators

Everything good comes in threes, they say. For storytellers, this means understanding that readers and listeners find a sequence of three things to be memorable, satisfying, and compelling—whether it’s three bears, three little pigs, or three kings. For professional negotiators, sequences of three can be rewarding as well. The following examples of good negotiation skills … Read More 

Daily

Daily

Leadership Styles in Crisis Negotiations

Posted by & filed under Uncategorized.

euro crisis in Greece leadership qualities for a negotiation in crisis

Since the start of the global economic recession in 2008, few issues have proven as explosive as the Greek debt crisis. The Greek government’s commitment to repay billions of dollars in loans has been a source of contention with creditors ever since a sizable bailout was issued in 2010. … Read More 

Daily

Daily

Negotiation Skills: Building Trust in Negotiations

Posted by & filed under Uncategorized.

Trust may develop naturally over time, but negotiators rarely have the luxury of letting nature take its course. Thus it sometimes seems easiest to play it safe with cautious deals involving few tradeoffs, few concessions, and little information sharing between parties. … Read More 

Daily

Daily

Daily

Daily

Daily

Daily

For a Mutually Beneficial Agreement, Collaboration is Key

Posted by & filed under Uncategorized.

for a mutually beneficial agreement collaboration is key

What is a mutually beneficial agreement? Some negotiation experts would have you believe that a mutually beneficial agreement is one in which each side grabs as much as it can from a finite pot of resources and calls it a day. At the Program on Negotiation, we urge you to aim higher by combining such competitive value-claiming … Read More 

Daily

Daily

Daily

Women Negotiators Break New Ground

Posted by & filed under Uncategorized.

In many other parts of the world, women face the daunting challenge of winning a place at the negotiating table in the first place. In particular, UN Women, an agency of the United Nations, has noted that women are vastly underrepresented in formal peace negotiations worldwide. … Read More 

Daily

Daily

MESO Negotiation: Learn from a Seller’s Market

Posted by & filed under Dealmaking.

negotiating skills and negotiation tactics learn from a sellers market in sales negotiations

What negotiating skills and negotiation tactics can negotiators take away from hyper competitive bargaining situations? With home sales heating up (again) in some parts of the United States, homebuyers are facing competition they haven’t seen since before the real-estate bubble burst back in 2008, and it’s showing up in the form of packed open houses, … Read More 

Daily

Six Guidelines for “Getting to Yes”

Posted by & filed under Uncategorized.

In their revolutionary book Getting to Yes: Negotiating Agreement Without Giving In (Penguin, 3rd edition, 2011), Roger Fisher, William Ury, and Bruce Patton introduced the world to the possibilities of mutual-gains negotiation, or integrative negotiation. The authors of Getting to Yes explained that negotiators don’t have to choose between either waging a strictly competitive, win-lose … Read More 

Daily

Daily

Beware Your Counterpart’s Biases

Posted by & filed under Conflict Resolution.

In the past we have encouraged you to ‘debias’ your own behavior by identifying the assumptions that may be clouding your judgment. We have introduced you to a number of judgment biases – common, systematic errors in thinking that are likely to affect your decisions and harm your outcomes in negotiation. Learn how to identify … Read More 

Daily

Value Creation in Negotiation

Posted by & filed under Uncategorized.

Use Integrative Negotiation Strategies to Create Value at the Bargaining Table

Many people say they dread negotiating and avoid it whenever they can. Why? Typically, because they view negotiation as a competition in which one party’s gains come at the expense of the other party. … Read More 

Daily

Daily

Daily

Power in Negotiation: The Impact on Negotiators and the Negotiation Process

Posted by & filed under Uncategorized.

power in negotiation the impact on negotiators and the negotiation process

According to Dacher Keltner of the University of California at Berkeley and his colleagues, power in negotiation affects two primary neurological regulators of behavior: the behavioral approach system and the behavioral inhibition system. Powerful negotiators demonstrate “approach related” behaviors such as expressing positive moods and searching for rewards in their environment. … Read More 

Daily

Worst Negotiation Tactics of 2015

Posted by & filed under Uncategorized.

Here are some of the worst negotiation tactics displayed during calendar year 2015 – from hard-bargaining, distributive negotiation strategies aimed at getting the whole pie to stonewalling strategies intended to stymy the development of a negotiated agreement. … Read More 

Daily

Top International Negotiation Examples: The East China Sea Dispute

Posted by & filed under Uncategorized.

Even when negotiators believe they sincerely want to reach an outcome that is fair to all, their perceptions of what constitutes a fair agreement are likely to be self-serving. As a result, they are likely to believe they deserve a greater share of a given resource than an unbiased observer would judge to be fair. … Read More 

Daily

Daily

In “Non-negotiation” with Antonio Brown, Steelers Find Mutual Gains

Posted by & filed under Uncategorized.

The National Football League’s Pittsburgh Steelers faced a dilemma. Mid-contract, the team’s star wide receiver, Antonio Brown, asked the team to improve upon the six-year, $42.5 million deal they negotiated back in 2012. Brown had risen to become the best receiver in football and believed he was underpaid. … Read More 

Daily

Top 10 Negotiation Skills

Posted by & filed under Uncategorized.

Increasingly, business negotiators recognize that the most effective bargainers are skilled at both creating value and claiming value—that is, they both collaborate and compete. The following 10 negotiation skills will help you succeed at integrative negotiation. … Read More 

Daily

Daily

Drinks at the White House? Clinton Plans on It

Posted by & filed under Uncategorized.

The practice of using alcohol to grease the wheels has a long and storied role in famous negotiations. In recent decades, shared drinks during adversarial bargaining helped lead to breakthroughs in conflicts in Serbia and Northern Ireland, for example. … Read More 

Daily

How Your Organization Can Benefit from Mediation Techniques

Posted by & filed under Uncategorized.

If you manage people, disputes will show up at your door. The marketing VP protests that the budget cap you and your new finance VP proposed is hindering a research initiative you supported. Two young sales representatives are embroiled in a turf war. Your administrative assistant is upset because the HR director won’t approve the … Read More 

Daily

Negotiating with Your Agent

Posted by & filed under Business Negotiations.

Toby knew that Dara was the perfect New York literary agent for him as soon as he heard her friendly, professional voice on the phone. Never mind that 17 other agents had already rejected his book proposal. Dara’s enthusiasm and recent sales convinced him to sign the three-year exclusive contract she mailed to him in … Read More 

Daily

Daily

Negotiation Training with Heart

Posted by & filed under Uncategorized.

negotiation training with heart

In typical negotiation skills training, we are taught to get beyond our emotions and look at situations rationally. There’s merit to this approach, of course, as feelings can cloud our judgment. But consider what Lieutenant Jack Cambria, who retired in August as the longest-running head of the New York Police Department’s (NYPD’s) hostage negotiation team, … Read More 

Daily

Daily

How to Find the ZOPA in Business Negotiations

Posted by & filed under Business Negotiations.

In business negotiation, two polar-opposite errors are common: reaching agreement when it wouldn’t be wise to do so, and walking away from a mutually beneficial outcome. How can you avoid these pitfalls? Through careful preparation that includes an analysis of the zone of possible agreement, or ZOPA. The agreement trap The “agreement trap” describes the tendency to agree … Read More 

Daily

Learning from the Debates About the Debates

Posted by & filed under Dealmaking.

There is “nothing worse than a debate about debates,” John Podesta, the chairman of Hillary Clinton’s presidential campaign, recently said in the midst of his candidate’s heated negotiations with Democratic rival Bernie Sanders about the terms of their debates. Many who participated in these negotiations would likely agree. But the debates about debates—both on the … Read More 

Daily

Dispute Resolution in Job Negotiations: Repairing a Work Relationship

Posted by & filed under Dispute Resolution.

On October 15, 2012, Citigroup CEO Vikram Pandit walked into the office of the bank’s chairman, Michael E. O’Neill, expecting a routine meeting and perhaps some words of praise. The day before, Citigroup had released a favorable earnings report that suggested the bank was beginning to rebound from the financial crisis. Citi had received a … Read More 

Daily

Daily

In Business Negotiations, Capitalize on a Right of First Refusal

Posted by & filed under Business Negotiations.

in business negotiations capitalize on a right of first refusal

As dealmakers look for more sophisticated ways to reduce risks and increase returns, a right of first refusal—a contractual guarantee that one side can match any offer that the other side later receives—has become a common and useful tool to add to your business negotiation skills.

in business negotiations capitalize on a right of first refusal

As dealmakers look for more sophisticated ways to reduce risks and increase returns, a right of first refusal—a contractual guarantee that one side can match any offer that the other side later receives—has become a common and useful tool to add to your business negotiation skills.

[text_ad]

When the mergers-and-acquisitions (M&A) boom began in 1993, many deals simply required the seller to let the buyer know if a “superior proposal” came along. By the late 1990s, buyers were demanding—and receiving—more than this: an exclusive negotiating period of several days, during which they could decide whether to match or improve upon another bidder’s offer. In current business negotiations, rights of first refusal, also known as matching rights or rights of first offer, are being rapidly incorporated into business negotiations at all levels and in many industries.

In the typical right of first refusal, the grantor gives the right holder the right to buy an asset on the same terms that the grantor would receive from any other bona fide, prospective bidder, otherwise known as the third party.

Suppose, for example, that a private company is negotiating an equity infusion from an investor in exchange for a 20% ownership stake and a set on the board. To preserve its stability, the company conditions the deal on a right of first refusal: before the investor can sell his stake to someone else, the company can buy it back at the negotiated price. The investor accepts the deal, and the company gets its equity.

Now suppose that two years have passed since the company (the right holder) and the investor (the grantor) signed their deal. The investor now wants to liquidate his investment. One potential buyer offers to purchase the 20% interest for $3.4 million. The investor now is required to ask the company, which holds the matching right, if it wants to match the offer. This contractual obligation has important consequences that depend in large part upon the role you play in a negotiation.

Advice for the grantor In negotiation, including a right of first refusal in an agreement can be a classic win-win move. To take a real estate right of first refusal, suppose you’re a landlord negotiating with a prospective tenant. You want to maintain the ability to sell the apartment to someone else in the future, while your prospective tenant wants a commitment to rent the apartment for as long as she wants. The solution might be to offer the tenant a right of first refusal—the power to match any legitimate third-party offer. In this manner, the tenant gains the opportunity to avoid the disruption of a move, and you preserve your own flexibility.

A right of first refusal can also create value through tradeoffs on negotiators’ different expectations. Let’s return to the case of the investor who buys a 20% ownership stake in a private company, and assume that the investor plans to hold the stake for a long time. If the company is not as sure about his commitment, a right of first refusal is cheap for the investor to give and valuable for the company to receive.

Advice for the right holder As the prospective right holder, you should know precisely what a proposed right of first refusal will give you. Many deals that seem to guarantee a right of first refusal are, in fact, murky about the consequences that could arise.

For potential right holders, the most common mistake is to fail to specify what will happen if you choose to match a bid. Will your matching bid call off the contest with the third party or launch a bidding war?

Other details are equally important. How long do you have to decide whether to match an offer? If the duration of the right of first refusal is ambiguous, a third party could short-circuit your right by making an exploding offer with a short fuse. You might fail to match the offer due to time pressure rather than to your unwillingness to pay. The end result is a right of first refusal worth significantly less than you thought.

Advice for third parties What if you’re thinking about making an offer that would trigger a right of first refusal? Returning to the case of the investor with a 20% stake in a company, imagine that you approach the investor about buying him out. When you learn about the company’s right of first refusal, you face a difficult situation. If the company exercises its right of first refusal, you’ve wasted time conducting due diligence and negotiating. If the company doesn’t exercise its right of first refusal, you likely have overpaid. Why? Because the company probably has better information about the true value of the 20% stake than you do. As a result of this information asymmetry, many sophisticated investors avoid deals that trigger a right of first refusal.

Yet the winner’s curse may not apply to you. First, the right holder simply might not be able to match your offer due to a liquidity crunch. Second, you may have just as much or better information about the value of the asset as the right holder. If the right holder doesn’t match your bid, she may not recognize these sources of value. Third, you might bring some special value to the table that the right holder lacks. Try to assess whether any of these three justifications apply before making a bid. If one of them does, you’re ready for business.

[text_ad]

Adapted from “Matching Rights: A Boon to Both Sides,” by Harvard Business School and Harvard Law School professor Guhan Subramanian, first published in the Negotiation newsletter.

When the mergers-and-acquisitions (M&A) boom began in 1993, many deals … Read More 

Daily

Daily

When Rumors Run Wild in Business Negotiation

Posted by & filed under Uncategorized.

when-rumors-run-wild-in-business-negotiation

What impact do rumors have on business negotiations and bargaining within the workplace? In this article, the effects of office gossip and other forms of unverified information are examined with regard to their impact on negotiation scenarios … Read More 

Daily

Daily

Deal Negotiation and Dealmaking: What to Do On Your Own

Posted by & filed under Dealmaking.

Six negotiation skills tips for negotiators seeking to creative value during their next round at the bargaining table. Business negotiators are often faced with the complex task of coordinating multiple parties – here are some tips for the individual business negotiator on how to achieve success in her next deal negotiation. … Read More 

Daily

Daily

Negotiation Skills: Should Put Off What You Could Negotiate Today?

Posted by & filed under Uncategorized.

To reach agreement, negotiators sometimes postpone the resolution of certain issues until a later date. We look at how this practice plays out in the real world. Remember the federal debt ceiling talks? In mid-2011, congressional Republicans insisted on significant spending reductions from their Democratic counterparts in exchange for voting to raise the nation’s debt … Read More 

Daily

In Conflict Resolution, President Carter Turned Flaws Into Virtues

Posted by & filed under Conflict Resolution.

When it comes to conflict resolution, surprisingly useful nuggets of advice come from the realm of international conflict. Take the Camp David Accords of 1978, as described minute-by-minute by Lawrence Wright in his new book, Thirteen Days in September. U.S. President Jimmy Carter made history by negotiating a peaceful end to the conflict between Israel … Read More 

Daily

Daily

Dealing with Difficult People: Tackle Tough Issues Together

Posted by & filed under Dealmaking.

When a difficult negotiation such as a labor contract renegotiation looms, it can be tempting for each side to try to make unilateral decisions on certain issues because of the belief that negotiation with the other side will be a dead end. This strategy may pay off in the short term, but it’s important to … Read More 

Daily

In Business Negotiations, Eat Before You Negotiate

Posted by & filed under Business Negotiations.

When preparing for your next business negotiation, you may want to strategize not only about what you’ll put on the bargaining table, but also how much food you’ll put in your belly beforehand. That’s the message of new research that Cornell University professor Emily Zitek and Dartmouth College professor Alexander Jordan presented at the annual … Read More 

Daily

Daily

Conflict Management Techniques: Should You Take Your Dispute Public?

Posted by & filed under Conflict Resolution.

To turn up the heat on opponents, negotiators sometimes advertise their grievances. Here’s negotiation skills advice on when it’s a good idea to be vocal—and when to keep talks private. The decision seemed nonsensical. Early on the morning of March 7, 2010, with the Academy Awards telecast just hours away, the Walt Disney Company pulled the signal on … Read More 

Daily

How Short-Term Focus Contributes to Future Disasters in Business Negotiations

Posted by & filed under Business Negotiations.

Negotiators tend to concentrate too closely on the here and now. By incorporating future concerns into your talks, you’ll make sounder decisions and guard against crises. In the midst of the current U.S.financial crisis, accusations of greed on Wall Street have sounded across the globe. Greed may be a significant factor in the collapse of credit … Read More 

Daily

Matching Rights in Business Negotiations: Advice for the Grantor – Use Matching Rights to Bridge the Gap

Posted by & filed under Business Negotiations.

In negotiation, including a matching right in an agreement can be a classic win-win move. Suppose you’re a landlord negotiating with a prospective tenant. You want to maintain the ability to sell the apartment to someone else in the future, while your prospective tenant wants a commitment to rent the apartment for as long as … Read More 

Daily

Searching for a Debt Ceiling: Boehner’s Uncertain BATNA

Posted by & filed under BATNA.

As the U.S. government approaches a potentially catastrophic default on its debt in October, President Obama remains determined to avoid negotiations with Republican leaders on the issue, the New York Times reports, a situation that leaves House of Representatives Speaker John Boehner with an uncertain BATNA, or best alternative to a negotiated agreement. … Read More 

Daily

When You Shouldn’t Go It Alone

Posted by & filed under Dealmaking.

A five-year old American manufacturer of medical equipment has just secured a patent on its primary product, a new kind of heart monitor. The potential market is even stronger than the company imagined, yet its second round of venture capital funding is coming to an end. A few other manufacturers are about to go public … Read More 

Daily

Mediating Tragedy: Managing the Boston Victim’s Compensation Fund

Posted by & filed under Uncategorized.

In mid-May, about a month after the Boston Marathon bombings of April 15, lawyer and mediator Kenneth Feinberg stood in an auditorium at the Boston Public Library to address families who had been directly impacted by the tragedy. Feinberg was in charge of administering One Fund Boston, a fund created to distribute donations to the … Read More 

Daily

Daily

Daily

Business Negotiations: Cooperate to Claim Value

Posted by & filed under Business Negotiations.

What happens in negotiations between two individuals who care little about each other’s outcomes? Suppose an engineer and an industrial designer are arguing over the design of a car bumper. The designer only cares about whether the bumper matches the style of the vehicle; the engineer is concerned only about how the bumper connects to … Read More 

Daily

Finally, A Win-Win Deal from Congress

Posted by & filed under Business Negotiations.

To the surprise of many, Congress reached a bipartisan agreement on the 17th of February to extend payroll tax cuts and unemployment benefits. It was only the second time a House bill in the 112th Congress split roughly along party lines, according to the New York Times. Largely regarded as a coup for Congressional Democrats, … Read More 

Daily

When not to show your hand

Posted by & filed under Uncategorized.

In all your negotiations, you must calculate the risks and rewards of sharing information with your counterpart. Here, we consider four types of information that may be best kept under wraps: sensitive or privileged information, information that isn’t yours to share, information that diminishes your power, and information that may fluctuate. Fearful of being hurt by … Read More 

Daily

Negotiating ‘Sacred’ Issues

Posted by & filed under Conflict Resolution, Daily.

Adapted from “Break Down ‘Sacred’ Barriers to Agreement,” first published in the Negotiation newsletter, April 2009. As negotiators, we’re trained to believe that almost every issue is ripe for tradeoffs and concessions. At the same time, most of us hold core values that we believe to be non-negotiable. Your family’s welfare, your personal code of ethics, … Read More 

Daily

Get Ready for Team Talks

Posted by & filed under Daily.

Adapted from “Strength in Numbers: Negotiating as a Team,” by Elizabeth A. Mannix (professor, Cornell University), first published in the Negotiation newsletter, May 2005. The widespread belief in “strength in numbers” suggests that having more players on your team should be a benefit, not a burden. But this belief can lead team members to underprepare … Read More 

Daily

Learn More from Your Proposals

Posted by & filed under Daily.

Adapted from “Lessons from Abroad: When Culture Affects Negotiating Style,” by Jeanne M. Brett (professor, Northwestern University) and Michele J. Gelfand (professor, University of Maryland), first published in the Negotiation newsletter, January 2005. Imagine that you have identified a great opportunity to expand your business by negotiating a joint venture with another company. You need … Read More 

Daily

What’s Relevant?

Posted by & filed under Daily.

Adapted from “Option Overload? Manage the Options on the Table,” by Chris Guthrie (professor, Vanderbilt University Law School), first published in the Negotiation newsletter, August 2007. When choosing among multiple options, negotiators should identify and evaluate the relevant attributes of each option and, if possible, make tradeoffs among them. This approach requires us to factor in … Read More 

Daily

Irrationality in Negotiations: How to Negotiate the Impossible

Posted by & filed under Uncategorized.

Negotiators often struggle with the task of bargaining with those who behave rashly, reason poorly, and act in ways that contradict their own self-interest. But as it turns out, behavior that negotiators often view as evidence of irrationality may in fact indicate something entirely different. … Read More 

Daily

Dealing with Option Overload

Posted by & filed under Business Negotiations, Daily.

Adapted from “Option Overload? Manage the Choices on the Table,” by Chris Guthrie (professor, Vanderbilt University Law School), first published in the Negotiation newsletter. Consider what happened when Randy, who was opening his first restaurant, met with Albert, the general manager of Best Appliances, to negotiate a deal. Albert pulled out a stack of brochures and … Read More 

Daily

How Should You Decide?

Posted by & filed under Business Negotiations.

Adapted from “Three Keys to Navigating Multiparty Negotiation,” by Elizabeth A. Mannix (professor, Cornell University), first published in the Negotiation newsletter. Multiparty negotiations—in which more than two people are bargaining on behalf of themselves or others—create many opportunities to generate value. As the number of people at the table increases, so does the potential to make … Read More 

Daily

Put More on the Table

Posted by & filed under Business Negotiations.

Adapted from “Putting More on the Table: How Making Multiple Offers Can Increase the Final Value of the Deal,” by Victoria Husted Medvec and Adam D. Galinsky (professors, Northwestern University), first published in the Negotiation newsletter. Suppose you open talks with an important customer by making an aggressive first offer. He becomes offended. You back off … Read More 

Daily

Is Your Possession Really Sacred?

Posted by & filed under Uncategorized.

Adapted from “What’s It Worth to You?” by Max H. Bazerman, first published in the Negotiation newsletter. Imagine that a beloved aunt passes away and leaves you a 50-acre parcel of Colorado land. You have often visited the area, and though you never considered owning rural property, the fact that the land has been in your … Read More 

Daily

Too Tough Talk?

Posted by & filed under Daily.

Adapted from “Break Through the Tough Talk,” by Kristina A. Diekmann (University of Utah) and Ann E. Tenbrunsel (Notre Dame University), first published in the Negotiation newsletter. You might think that cultivating a reputation as a tough bargainer might be the best way to cope with a competitive opponent. But this isn’t necessarily the best strategy. … Read More 

Daily

Culture and Communication

Posted by & filed under Daily.

Adapted from “Cultural Notes,” first published in the Negotiation newsletter. As members of organizations and families, we all know from experience that even people with identical backgrounds can have vastly differing negotiating styles and values. Nonetheless, we continue to be intrigued by the idea that distinct patterns emerge between negotiators from different cultures. Researchers do confirm a … Read More 

Daily

Learn More From Your Deals

Posted by & filed under Daily.

Adapted from “Learning to Learn,” first published in the Negotiation newsletter. Learning about a concept or technique is one thing. Actually putting new knowledge to work is quite another. The gap between “knowing” and “doing” is a challenge for managers who want to hone their effectiveness, whether through formal training or private reflection on their experience. Recent … Read More 

Daily

Don’t Just Do the Math

Posted by & filed under Daily.

Adapted from “Do the Numbers Get in Your Way?” by Brian J. Hall (professor, Harvard Business School) and P. Trent Staats (vice president, Verenium Corp.), first published in the Negotiation newsletter. Consider the customer support center that sought to increase the number of calls it could process per hour without increasing its capacity. When the call … Read More 

Daily

Negotiating for Career Satisfaction

Posted by & filed under 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 More 

Daily

Trusting from Square One

Posted by & filed under Daily.

Adapted from “How Much Should You Trust?” by Iris Bohnet (professor, Harvard Kennedy School) and Stephan Meier (professor, Columbia Business School), first published in the Negotiation newsletter. What’s the best way to cope with a fellow negotiator who has betrayed your trust? Ignoring the problem is rarely the best solution. When you distrust someone, you’re forced to … Read More 

Daily

When Does Personality Matter?

Posted by & filed under Daily.

Adapted from “When Tough Talk Is Beside the Point,” by Hal Movius (instructor, The Program on Technology Negotiation, Program on Negotiation, Harvard Law School), first published in the Negotiation newsletter. Most of us intuitively believe that personality traits such as toughness matter a great deal in negotiation. Yet studies by Bruce Barry and Raymond Friedman of … Read More 

Daily

Daily

Dealing with choice overload

Posted by & filed under Uncategorized.

When it comes to offering and considering choices in a negotiation, the more the better, right? In fact, the presence of too many options may actually hamper people from coming to any agreement. A study from the decision-making realm supports this conclusion. Draeger’s Market in Menlo Park, Calif., is renowned for its wide selection of gourmet … Read More 

Daily

Keeping Your Cool when the Negotiations Get Hot

Posted by & filed under Daily.

On the heels of an intricate negotiation, conditions change for the worse. Crops fail, the price of oil skyrockets, one side issues an earnings restatement, or the market as a whole is a lot less promising than it was when you negotiated the initial terms. Suddenly your agreement has lost its luster. How should you … Read More 

Daily

You Want How Much for the Mug?!

Posted by & filed under Uncategorized.

Common psychological barriers lead us to overvalue our possessions. That can be a problem when it’s time to get rid of them. Some possessions truly are priceless—we wouldn’t part with them for any amount of money. Others are virtually priceless, or “pseudosacred,” according to Harvard Business School professor Max Bazerman. We might claim that these … Read More