When a dispute flares up and conflict resolution is required, the outcome can be sadly predictable: the conflict escalates, with each side blaming the other in increasingly strident terms. The dispute may end up in litigation, and the relationship may be forever damaged. … Read 3 Negotiation Strategies for Conflict Resolution
Discover step-by-step techniques for avoiding common business negotiation pitfalls when you download a copy of the FREE special report, Business Negotiation Strategies: How to Negotiate Better Business Deals, from the Program on Negotiation at Harvard Law School.
What is Value Creation in Negotiation?
Value creation in negotiation helps both parties get what they want.
People often view negotiation as win-lose, but maintaining a win-win mindset and adding issues to the discussion are the keys to value creation and working out a great deal.
Value creation allows parties to integrate various sources of value through tradeoffs and other creative dealmaking strategies. Even in a negotiation over a used car, for example, you might be able to look beyond price to identify other issues to add to the discussion.
Value-creating opportunities can be uncovered by searching for a common interest, rather than letting the differences that exist between you dominate the discussion. Other promising value-creation strategies include asking lots of questions to learn about what matters to your counterpart and sharing information about your own interests and priorities.
The goal of this cooperative problem-solving in a negotiation is to uncover joint gains for both parties. Value creation is an aspect of win-win negotiations in which both parties benefit from the agreement.
Remember, though, taking a collaborative approach to negotiation doesn’t negate the importance of claiming a fair share of the value you’ve jointly created. Effective value claiming should be based on a thorough analysis of what you want out of the negotiation as well as what the other party wants.
In sum, remember that situations that appear to be zero-sum rarely are.
The key to value creation?
Bringing a degree of optimism about the chances of expanding the pie to every negotiation.
Find out more about value creation and discover how to handle complicated, high-level negotiations in this free special report, Negotiation Skills: Negotiation Strategies and Negotiation Techniques to Help You Become a Better Negotiator, from Harvard Law School.
We will send you a download link to your copy of the report and notify you by email when we post new negotiation advice and information to our website.
The following items are tagged value creation:
Negotiation and Leadership: Dealing with Difficult People and Problems
THREE-DAY COURSE | December 4-6, 2023 Negotiation and Leadership: Dealing with Difficult People and Problems BONUS DAY | December 7, 2023 The Art of Saying No: Save the Deal, Save the Relationship, and Still Say No
Three-Day Program Agenda Negotiation and Leadership: Dealing with Difficult People and Problems DAY 1: Monday, December 4, 2023UNDERSTANDING KEY NEGOTIATION CONCEPTS MORNING: Registration, Continental Breakfast and … Read More
The Difficulty of Achieving a Win-Win Negotiation Outcome
In a negotiation, it may help to signal to your counterpart your willingness to engage in bargaining aimed at creating a win-win outcome for both parties. … Read More
Negotiation and Leadership: Dealing with Difficult People and Problems
THREE-DAY COURSE | October 23-25, 2023 Negotiation and Leadership: Dealing with Difficult People and Problems BONUS DAY | October 26, 2023 Future Proofing: How to Make Sure Your Negotiated Agreement is Good for the Long Term
Three-Day Program Agenda Negotiation and Leadership: Dealing with Difficult People and Problems DAY 1: Monday, October 23, 2023UNDERSTANDING KEY NEGOTIATION CONCEPTS MORNING: Registration, Continental Breakfast and … Read More
Managing Expectations in Negotiations
Successful negotiators work hard to ensure that when they and their counterpart leave a negotiation, both sides feel satisfied with the agreement. Why should you care whether the other side is pleased with negotiations or not? … Read Managing Expectations in Negotiations
Negotiation and Leadership: Dealing with Difficult People and Problems
THREE-DAY COURSE | September 18-20, 2023 Negotiation and Leadership: Dealing with Difficult People and Problems BONUS DAY | September 21, 2023 Difficult Conversations: How to Discuss What Matters Most
Three-Day Program Agenda Negotiation and Leadership: Dealing with Difficult People and Problems DAY 1: Monday, September 18, 2023UNDERSTANDING KEY NEGOTIATION CONCEPTS MORNING: Registration, Continental Breakfast and Overview 8:00 a.m. – 9:00 a.m. ET Negotiation Fundamentals: … Read More
Repairing Relationships Using Negotiation Skills
Negotiation is not only something we do at work; often the toughest negotiations we encounter are in our personal lives. Some of the most successful negotiation examples of the power of negotiation skills in dispute resolution is when they repair relationships between friends. … Read Repairing Relationships Using Negotiation Skills
Harvard Negotiation Master Class: Advanced Strategies for Experienced Negotiators – May 8-10, 2023
Strictly limited to 60 participants who have completed a prior course in negotiation, this first-of-its-kind program offers unprecedented access to experts from Harvard Law School, Harvard Business School, and the Harvard Kennedy School—all of whom are committed to delivering a transformational learning experience. … Read More
Value Claiming in Negotiation
In most negotiations, we face two goals: claiming value and creating value. Value can be defined as anything you would like to get out a negotiation, whether it be more dollars, a consulting contract, a new rug, an end to conflict, and so on. … Read Value Claiming in Negotiation
Negotiation and Dispute Resolution Online
This virtual and highly interactive semester-length seminar explores the ways that people negotiate to create value and resolve disputes. Designed to improve understanding of negotiation theory and build negotiation skills, the curriculum integrates negotiation research from several academic fields with experiential learning exercises. In light of the COVID-19 pandemic, all sessions will be delivered live. … Read Negotiation and Dispute Resolution Online
Negotiation Strategies: Emotional Expression at the Bargaining Table
Most of the existing negotiation research on affect in negotiation has focused on emotional experience rather than on emotional expression. … Read More
Bargaining for a New Car: Real World Negotiations Examples
When it comes to bargaining for a new car, are women negotiating harder bargains than men? According to a recent report from NPR Morning Edition’s Sonari Glinton, women not only negotiate harder bargains than men when it comes to vehicle purchases, but also they do more extensive preparatory work (See: Negotiating for What You Really Want- … Read More
Negotiation Skills Training: Define Your Negotiation Style
How would you characterize your negotiation style: Are you collaborative, competitive, or compromising? During any professional negotiation skills training, you’re likely to find out your negotiating style when setting goals and revealing your negotiating personality. … Read More
MESO: Make Multiple Equivalent Simultaneous Offers to Create Value in Dealmaking Table
MESO negotiation, a negotiation strategy for creating value with a counterpart who may be reluctant to negotiate, allows negotiators to propose multiple offers without signaling commitment or preference for any one option. Business negotiators that practice integrative negotiation strategies often complain that although they try to focus on creating value, they run into far too many difficult … Read More
Cultural Barriers and Conflict Negotiation Strategies: Apple’s Apology in China
When dealing with a difficult counterpart, it helps to take a conciliatory approach to the bargaining table. While apologies necessarily involve moments of vulnerability, they can also open doors to value creation and strengthen the relationship you have with your bargaining counterpart. Let’s look back at Apple’s apology in China for its maligned warranty policies … Read More
Negotiation Skills: Four Steps for Changing Negotiation Practices in Your Organization
Individual negotiators are sometimes overwhelmed by the idea of leading organization-wide changes to negotiation practices. In fact, it doesn’t take much time or effort to set the wheels of reform in motion, write Hallam Movius and Lawrence Susskind in Built to Win. Here are four simple steps to implement in your workplace. … Read More
How Principal Agent Theory Works in Business Negotiations: Dealmaking Strategies for Bargaining with Agents
The Program on Negotiation has identified three basic sets of circumstances in business negotiations where you’ll be better off tapping an agent (see also principal-agent theory) to take your place at the bargaining table (at least for part of the negotiating process): … Read More
The Star Wars Negotiations and Trust at the Negotiation Table
What is negotiation in business? Negotiation research has identified it as a process of building trust and negotiation tactics for building trust at the bargaining table have proven effective in helping negotiators create, and claim, more value out of dealmaking scenarios. … Read More
When Lose-Lose is the Best Alternative to a Negotiated Agreement (BATNA)
As the famous tale “The Gift of the Magi” illustrates, sometimes the best outcomes in negotiated agreements is a lose-lose situation for both parties. … Read More
3-D Negotiation Strategy
Here are some negotiating skills and negotiation tactics from 3-D negotiation by James Sebenius and David Lax. … Read 3-D Negotiation Strategy
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
Teaching the Fundamentals: The Best Introductory Negotiation Role Play Simulations
Introductory negotiation courses are taught in law and business schools around the world, but are also increasingly taught to undergraduates and in all types of corporate settings. No matter the context, though, the basic elements of negotiation are roughly similar. Teaching interest-based negotiation, the Zone of Possible Agreement (ZOPA), the Best Alternative to a Negotiated … Read More
Expanding the Pie: Integrative versus Distributive Bargaining Negotiation Strategies
Imagine that you’re buying a used car from its original owner. Of course, you want to get the best deal you can for your money, while your counterpart wants to maximize the value of his asset. After haggling with one another, each side finally arrives at a price point acceptable to both parties. But how … Read More
Do Attitudes in Negotiation Influence Results?
Many people consider negotiations to be stressful and threatening. Others view them as challenges to be overcome. Do these different attitudes influence the outcomes that people reach? New research by professors Kathleen M. O’Connor of Cornell University and Josh A. Arnold of California State University sheds light on this important question. … Read Do Attitudes in Negotiation Influence Results?
Use Integrative Negotiation Strategies to Create Value at the Bargaining Table
How can you uncover additional value, make useful trades, and put together a package that exceeds your party’s expectations? Here are four integrative negotiation strategies for value creation that all negotiators should add to their toolkit. … Read More
How to Overcome Cultural Barriers in Communication – Cultural Approximations of Time and the Impact on Negotiations
Some of the most fundamental international negotiation skills to develop are negotiation strategies on how to overcome cultural barriers in communication. … Read More
Renegotiation Lessons from the NAFTA Talks
During the 2016 presidential campaign, Donald Trump blamed the trilateral North American Free Trade Agreement (NAFTA) among Canada, Mexico, and the United States for the U.S. trade deficit with Mexico and for lost American manufacturing jobs. Upon taking office, Trump said he was determined to either engage in renegotiation of NAFTA or walk away from the … Read Renegotiation Lessons from the NAFTA Talks
Negotiations in the News: Lessons for Business Negotiators
What can business negotiators learn from current negotiations in the news? Quite a bit, according to the dozens of negotiation experts who contributed to the January 2019 special issue of the Negotiation Journal, entitled “Negotiation and Conflict Resolution in the Age of Trump.” … Read More
Business Negotiation Skills: How to Enhance Your Negotiated Agreement
A common topic in our business negotiations articles are negotiation topics in business about enhancing your deal after signing the negotiated agreement. After all, not all contracts are created equal. … Read More
Managing Difficult Conversations: Achieving Objectives with Backmapping Negotiation Strategies
The problem: Your negotiation seems to be over before it has begun. Your targeted counterpart is refusing to sit down with you or simply ignoring your requests. How can you get her to see that she would benefit from negotiating with you? … Read More
Mediation and the Conflict Resolution Process
It’s often the case that when two people or organizations try to resolve a dispute by determining who is right, they get stuck. That’s why so many disputes end up in court. There is a better way to resolve your dispute: by hiring an expert mediator who focuses not on rights but on interests—the needs, … Read Mediation and the Conflict Resolution Process
How Your Communication Style Impacts Value Creation
In negotiation, we bring our unique personalities and styles to the table. A reserved, cautious person is likely to bargain differently than someone who is outgoing and proactive, for example. There is much we can do to improve our negotiation performance—such as preparing thoroughly and using proven persuasion strategies. But can we also improve our … Read More
Dear Negotiation Coach: How Should I Handle an Early Offer Negotiation?
In a hot real estate market, sellers may find themselves determining the best way to engage in an early offer negotiation. We asked Leslie John, the Marvin Bower Professor of Business Administration at the Harvard Business School, to answer a question regarding this topic. Q: I’m selling my house in a seller’s market. As is the … Read More
What is Distributive Negotiation and Five Proven Strategies
Most negotiations call for very different, even opposing, skills: collaboration and competition. To get a great deal, we typically must work with others to find new sources of value while also competing with them to claim as much of that value for ourselves. Before mastering the intricacies of value creation in negotiation, it helps to … Read More
Value Conflict: What It Is and How to Resolve It
Some of our most heated negotiations and disputes involve value conflict over our core values, such as our personal moral standards, our religious and political beliefs, and our family’s welfare. Consider these value conflict examples:
Business partners clash over the ethical standards they expect each other to uphold. A negotiator refuses to do business with a potential counterpart … Read Value Conflict: What It Is and How to Resolve It
Dear Negotiation Coach: How Can You Simplify Complex Negotiations with Stakeholder Alignment?
In complex, multiparty negotiations, the task of value creation can quickly become overwhelming because of the large number of parties and interests at stake. An emerging process called “stakeholder alignment” can help construct order from chaos in complex negotiations, according to Joel Cutcher-Gershenfeld, a professor at the Heller School for Social Policy and Management at … Read More
Top Ten Posts About Conflict Resolution
Conflict resolution is the process of resolving a dispute or a conflict by meeting at least some of each side’s needs and addressing their interests. Conflict resolution sometimes requires both a power-based and an interest-based approach, such as the simultaneous pursuit of litigation (the use of legal power) and negotiation (attempts to reconcile each party’s … Read Top Ten Posts About Conflict Resolution
Value Creation in Negotiation: Capitalize on Multiple Issues
Between 2017 and 2019, the United Kingdom (U.K.) and the European Union (E.U.) negotiated the terms of Brexit, the U.K.’s official departure from the E.U. The talks were contentious and stalled often, ultimately being extended by six months. The trouble started even before the negotiations began, as the parties disagreed about how the process should unfold. … Read More
Negotiation Team Strategy
Some negotiations are simple enough to handle on our own, but those deals are increasingly rare in the business world. These days, to thrive in negotiation, you often need to be able to work effectively as part of a negotiation team. … Read Negotiation Team Strategy
Win-Win Bargaining: Private Negotiation, Public Auction, or Both?
When Amazon and Apple each began scouting locations for a new campus in 2017, we might have expected them to follow similar negotiating strategies aimed at win-win bargaining. In fact, their searches were very different:
Amazon set off a frenzy in September 2017 when it announced it was soliciting bids from cities interested in hosting its second headquarters, … Read More
Facing an Email Negotiation? Take a Proactive Approach
As a format for complex deals, email negotiation has a bad reputation. Negotiators are more likely to deceive one another when using email, and they have trouble building trust and rapport in email messages. Furthermore, some research has found that negotiators achieve less joint gain and are less satisfied with their outcomes when negotiating over … Read More
For Greater Value Creation, Look Beyond Your BATNA
For value creation in negotiation, you may need to look beyond your greatest source of power. You may have learned— perhaps in this newsletter or in Roger Fisher, William Ury, and Bruce Patton’s landmark negotiation book Getting to Yes: Negotiating Agreement Without Giving In (Penguin, 1991)—that your most powerful asset is often a strong BATNA, or … Read More
Redevelopment Negotiation: The Challenges of Rebuilding the World Trade Center
As the 20th anniversary of the horrific terror attacks of September 11th approaches, we look back at all that has changed in the world and at home in the two decades since. In the wake of the destruction of the World Trade Center in New York City, there were difficult questions and challenges facing those … Read More
Right of First Refusal: A Tool to Negotiate with Care
Among many useful negotiation skills and strategies, a right of first refusal can often benefit negotiators. In a right of first refusal, the right holder is typically given the power to buy an asset on the same terms that the grantor would receive from any other legitimate, prospective bidder, according to Harvard Business School and … Read More
Teach Your Students Value Distribution with a Simulation on Solar Power
Do your students really understand the difference between value distribution and integrative negotiation, and have you given them a chance to practice their distributive bargaining skills? Do they understand that every negotiation includes elements of both value creation and value distribution? To help teach these key negotiation skills the Teaching Negotiation Resource Center (TNRC) has developed a … Read More
Test Your Negotiation Decision-Making Ability
A negotiation research study using distributive negotiation examples sheds interesting light on decision-making capabilities, intelligence, and “intuition.” … Read Test Your Negotiation Decision-Making Ability
Four Ways to Manage Conflict in the Workplace
Samantha was livid. While making a presentation during a meeting that both attended, Brad, a newcomer in her department, had shared some slides during a presentation that were clearly based on ideas for a project she’d shared with him privately—without giving her credit. Samantha angrily confronted Brad in his office after the meeting; he became … Read Four Ways to Manage Conflict in the Workplace
The Top Three Defensive Negotiation Strategies You Need to Know
In the course of a career, a negotiator will confront many skilled persuaders. Here, we review three defensive negotiation strategies a negotiator can employ. … Read More
For a Mutually Beneficial Agreement, Collaboration is Key
At the Program on Negotiation, we urge you to aim higher by combining such competitive value-claiming with collaborative value creation. Not because it’s the “nice” thing to do, but because it’s been proven to be the best path to a truly mutually beneficial agreement. … Read More
Integrative Negotiations, Value Creation, and Creativity at the Bargaining Table
When life becomes routine we are more likely to overlook details or, conversely, we cannot see the forest for the trees. In both instances, what we may lack is a creative outlook on the situation at hand. In negotiations, creativity can lead to value-creation for both parties. … Read More
Negotiating with Millennials – How to Overcome Cultural Differences in Communication
Negotiation training often focuses on bridging gaps between negotiators with different styles, backgrounds, or objectives, but what about overcoming generational barriers in negotiation? Generational differences need not stymie efforts at the bargaining table. In this segment from “Dear Negotiation Coach,” we explore how to overcome cultural differences in communication with members of the Millennial generation. … Read More
5 Types of Negotiation Skills
Businesspeople who are looking for effective negotiation strategies often confront a dizzying array of advice. It can be useful to take a step back and categorize these strategies into various types of negotiation tactics. Highlighting the benefits of negotiation in business, the following five types of negotiation tactics can help you think more broadly about … Read 5 Types of Negotiation Skills
An Example of the Anchoring Effect
People tend to irrationally fixate on the first number put forth in a negotiation—the anchor—no matter how arbitrary it may be. Even when we know the anchor has limited relevance, we fail to sufficiently adjust our judgments away from it. This is the anchoring effect. … Read An Example of the Anchoring Effect
What to Do When Your BATNA is Not Good Enough
The following question was featured in the “Ask the Negotiation Coach” section of the Negotiation Briefings newsletter, April 2010 issue. Question: What should I do when a negotiation seems to be all about price, I have no BATNA, and the other side knows it? … Read What to Do When Your BATNA is Not Good Enough
Coming Up with Win-Win Solutions at the Bargaining Table
Even those who effectively engage in an integrative negotiations or mutual-gains approach to negotiation, a bargaining scenario in which parties work together to meet interests and maximize value creation during the negotiation process, can be stymied by the task of dividing up a seemingly fixed pie of resources, such as budgets, revenue, and time. … Read More
The Right Way to Regulate Emotion in Negotiation
Emotional flooding – when strong, specific, and often negative feelings overwhelm us – poses obvious hazards to negotiators, who need to be able to think clearly when faced with the complex, strategically demanding task of creating and claiming value. For this reason, emotional regulation can be an essential component of negotiation. But different types of regulation create … Read The Right Way to Regulate Emotion in Negotiation
5 Win-Win Negotiation Strategies
Business negotiators understand the importance of reaching a win-win negotiation: when both sides are satisfied with their agreement, the odds of a long-lasting and successful business partnership are much higher. But concrete strategies for generating a win-win contract often seem elusive. The following five, from experts at the Program on Negotiation at Harvard Law School, … Read 5 Win-Win Negotiation Strategies
The Angry Negotiator
Most negotiations require us both to compete to claim value and to cooperate to create value. The ability to move back and forth between these two goals is a critical—and difficult—skill. How do emotions affect value creation and claiming? Researchers Alice Isen and Peter Carnevale found that a positive mood leads to greater value creation. … Read The Angry Negotiator
Negotiation Skills for Win-Win Negotiations
A few characteristics of negotiation styles include hard bargaining tactics focused on claiming as much value as possible and integrative negotiation strategies such as value creation or win-win negotiation scenarios. What negotiation styles leads to optimal negotiated agreements and are suitable to win-win negotiations? One skill to cultivate that will have a positive impact on … Read Negotiation Skills for Win-Win Negotiations
Negotiation Skills: Value Creation Resources
By following these steps in your next negotiation, you’ll improve the chances of meeting everyone’s interests. … Read Negotiation Skills: Value Creation Resources
Value Creation in Negotiation: Be Better, Not Perfect
To reach better outcomes, negotiators learn to create value. Instead of only haggling over the cost of a service contract, they make tradeoffs with their counterpart on issues such as delivery, timing, duration, ancillary products, and so on. We can apply these negotiation skills to achieve better deals not only for those at the bargaining table, … Read More
What’s so great about small talk?
This spring and summer, professional sports leagues scrambled to negotiate deals with players’ unions to start or resume their seasons with health, financial, and logistical accommodations for the Covid-19 pandemic. Most reached mutually agreeable deals, with some bumps in the road. Then there was Major League Baseball (MLB). As they tried to work out when the 2020 … Read What’s so great about small talk?
Negotiation and Conflict Management Styles
In negotiation and conflict management, we bring our unique personalities and styles to the table. A reserved, cautious person is likely to bargain differently than someone who is outgoing and proactive, for example. There is much we can do to improve our negotiation performance—such as preparing thoroughly and using proven persuasion strategies. But should we … Read Negotiation and Conflict Management Styles
Get the best job possible in a tough market
The numbers are staggering: As a result of the coronavirus pandemic, unemployment in the United States rose from 3.5% in February to 14.7% by the end of April, the highest rate since the Great Depression. The number of unemployed Americans leapt to 23.1 million by the end of April, according to the Labor Department. With many … Read Get the best job possible in a tough market
Four Conflict Negotiation Strategies for Resolving Value-Based Disputes
In many negotiations, both parties are aware of what their interests are, and are willing to engage in a give-and-take process with the other party to come to agreement. … Read More
Register Now for the Online Fall Negotiation and Dispute Resolution Seminar!
This virtual and highly interactive semester-length seminar explores how people negotiate to create value and resolve disputes. Designed to improve understanding of negotiation theory and build negotiation skills, the curriculum integrates negotiation research from several academic fields with experiential learning exercises. All sessions will be delivered live via Zoom. Emphasizing both theoretical and practical insights, this … Read More
In Preparation for Negotiation, Choose the Right Process
In preparation for negotiation, sellers face a choice between negotiating one on one with buyers, holding an auction, or combining elements of both processes. Consider the different paths that Amazon and Apple followed in 2017 when each began scouting locations for a new campus:
Dangling the prospect of a $5 billion campus and about 50,000 jobs, … Read More
Teaching Real Estate Negotiation: How to Identify and Create Value
How do you teach your students to identify and create value in real estate negotiations? Real estate negotiation can be difficult for both the buyer and the seller. Teaching real estate negotiation can involve value creation, distributive bargaining, as well as issue linkages. It is important for both buyers, sellers, and agents to identify ways to … Read More
What an Operatic Role-Play Simulation Can Teach You About Negotiation
A distinguished older soprano, Sally has not had a lead role in two years. However, when another soprano falls ill, the Lyric Opera is eager to hire Sally…but at what price? Sally Soprano is one of the best-known role-play simulations from the Program on Negotiation’s Teaching Negotiation Resource Center (TNRC). And it’s a classic for good … Read More
Corporate Negotiation Pitfalls: The Case of Facebook
In corporate negotiation, negotiators often care most about getting the best price possible, assessing the other party’s ability to follow through, and closing the deal. Unfortunately, such business preoccupations can lead dealmakers to overlook potential ethical concerns, as current negotiations in the news often attest. Examining some of Facebook’s recent corporate negotiation mistakes, we describe … Read More
Managing Faultlines in Group Negotiations
Group negotiations are a fact of managerial life, yet the outcomes of teamwork are highly unpredictable. Sometimes groups cohere, reaching novel solutions to nagging problems, and sometimes infighting causes them to collapse. How can you predict when conflict will emerge in groups, and what can you do to stop it? Dora Lau of the Chinese University … Read Managing Faultlines in Group Negotiations
The Winner’s Curse: Will You Be Its Next Victim?
Imagine that you’re up for a new job that you’d like very much. At the end of a long hiring process, the HR manager asks you to name your price. You propose a salary that you believe to be ambitious, expecting some haggling to follow. Instead, the HR manager smiles and holds out her hand … Read More
Women Negotiators Break New Ground
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 Women Negotiators Break New Ground
Business Negotiation: When is an Outsider Needed at the Negotiation Table
One of the most popular negotiation topics in business concerns the role of outsiders to the negotiation. In this article the Program on Negotiation explores how to include outsiders in both your strategy and at-the-table negotiations. … Read More
How to Break Through Barriers in Negotiation When Dealing with Difficult People
In negotiation, we sometimes face the dreaded task of asking difficult people, intimidating opponents, and otherwise daunting counterparts for a big favor. How can we close the deal when we can barely summon up the courage to talk to the person in the first place? … Read More
How to Build Trust at the Bargaining Table
To maximize the joint gain created by a deal, both sides need to take risks which requires building trust in negotiations. Here’s how negotiators can establish the necessary trust. … Read How to Build Trust at the Bargaining Table
Negotiation Topics in Business: Make a Bump Plan
Regrouping from the cancellation of the 2004–2005 season due to failed labor negotiations, National Hockey League (NHL) teams and players faced the challenge of radically restructuring their collective bargaining agreement (CBA) in July 2005. The new CBA instituted a uniform cap (as well as a floor) on team payrolls. It also set maximums and minimums … Read Negotiation Topics in Business: Make a Bump Plan
BATNA: Negotiation Preparation to Help Avoid Giving Up at the Bargaining Table
When you expect an opponent to be competitive, your confidence in the outcomes you can achieve in negotiation is likely to plummet. In negotiation research with Adam Galinsky of Northwestern’s Kellogg School of Management, negotiators were provided with some background about their counterpart including information on how competitive their counterpart has been in previous negotiations. … Read More
Using Your BATNA: Bruce Patton and William Ury Discuss the ‘Fiscal Cliff’
A standoff between Democrat President Barack Obama and congressional Republicans in 2012 focused attention on the negotiation styles employed by the two parties as they sought to secure their interests while also working toward the resolution of a budgetary battle. … Read More
Dispute Resolution: Uncertainty, Risk, and Opportunity in Water Diplomacy
When countries face contending water claims, one of the biggest obstacles to reaching an agreement is uncertainty. Specifically, there are three types of uncertainty: uncertainty of information, uncertainty of action, and uncertainty of perception. In part 2 of this 5 part series, Program on Negotiation faculty member Lawrence Susskind explains the uncertainties facing negotiators trying … Read More
An Alternative to Traditional Dispute Resolution Instruction
Many negotiation and mediation instructors draw from other disciplines for a range of purposes. Insights from social psychology, for instance, can help students understand, explain, or predict certain interpersonal and inter-group dynamics. Ideas from economics and game theory can shed light on various value-creation principles. … Read More
Promoting Fair Outcomes in Negotiation
So, you believe you’ve done everything you can do create value in your negotiation. You engaged in logrolling, making trades based on your and the other party’s different preferences on particular issues. You brainstormed new issues to add to the discussion, added a contingent contract, and proposed multiple offers simultaneously to identify which your counterpart … Read Promoting Fair Outcomes in Negotiation
Protecting Yourself from Competitive Expectations
Like other cognitive biases, competitive expectations can be insidious. Fortunately, there are several steps you can take to forestall their negative consequences. … Read Protecting Yourself from Competitive Expectations
Conflict Management: Anger – The Good and the Bad
Most negotiations are “mixed motive” in structure, requiring us both to compete to claim value and to cooperate to create value. The ability to move back and forth between these two goals is a critical – and difficult – skill to master. … Read Conflict Management: Anger – The Good and the Bad
Drinks at the White House? Clinton Plans on It
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 Drinks at the White House? Clinton Plans on It
Beware Self-Fulfilling Prophecies in Negotiation
A self-fulfilling prophecy is a prediction of expectations that a person has that comes true because he or she expects it will. … Read Beware Self-Fulfilling Prophecies in Negotiation
Make the Most of Mediation in Negotiations and Dispute Resolution
What at first seemed like a minor misunderstanding has spiraled out of control. A Chicago-based printing company hired your Chicago-based IT consulting firm to train its staff to use its new computer system. … Read More
Financial Negotiations During the Banking Crisis: Did the Mortgage Foreclosure Settlement Meet Its Goals?
The mortgage foreclosure settlement reached by the Obama Administration and major US banks bailed out during the 2008 financial crisis illustrates the importance of an integrative negotiations approach to bargaining with your counterpart. Here are the strategies and techniques employed by each side to reach a consensus on the mortgage foreclosure settlement. … Read More
Conflict Management in Negotiation: Training with the Enemy
Negotiation skills tips to help create value during your next session at the bargaining table. Read how collaboration and competition can lead to value creation in business negotiations. … Read More
Negotiation Skills: Could I Really Make a Difference?
Individual negotiators are sometimes overwhelmed by the idea of leading organization-wide changes to negotiation practices. In fact, it doesn’t take much time or effort to set the wheels of reform in motion, write Hallam Movius and Lawrence Susskind in Built to Win. … Read More
Dealmaking: Beyond Collusion – How to Include Outsiders in Your Deal in Business Negotiations
The issue of bidder collusion raises a larger question for negotiators: What ethical responsibility do we have to those who aren’t seated at the table with us? Harvard Business School professor Max H. Bazerman uses the term “parasitic value creation” to describe the common tendency of negotiators to focus so narrowly on identifying benefits for those … Read More
How to win at win-win negotiation
When parties to a negotiation can’t seem to find common ground, it sometimes seems as if the only solution is “winner take all.” Consider the decade-long campaign by the backers of the Cape Wind project to build the first offshore wind farm in the United States off the coast of Massachusetts in Nantucket Sound. Led by … Read How to win at win-win negotiation
Is your negotiating style holding you back?
The story, related by an anonymous job candidate on a blog called the Philosophy Smoker, went viral. According to the job candidate, referred to only as “W,” the philosophy department of Nazareth College, a small liberal-arts college in Rochester, New York, offered her a tenure-track position following a round of interviews. W said she responded … Read Is your negotiating style holding you back?
Matching Rights in Business Negotiations: Advice for the Grantor – Use Matching Rights to Bridge the Gap
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
A Value-Creating Condition Thwarted
In late 1999, with its stock in free fall, NCS HealthCare, a provider of pharmacy services to long-term care facilities, began “exploring strategic alternatives” – code in the mergers and acquisitions world that NCS’s board wanted to put the company up for sale. In 2001, Omnicare, a larger provider in the same general industry, offered to … Read A Value-Creating Condition Thwarted
Try Skills-Based Strategies First
Before launching a workaround, run through this list of skills-based strategies adopted from Getting Past No: Negotiating Your Way from Confrontation to Cooperation by William Ury (Bantam, 1993). Only attempt a workaround if you’ve tried them all without success: … Read Try Skills-Based Strategies First
Accounting for Outsiders in Your Negotiations
If you’re in the middle of talks that seem to be going well, here’s a warning: consider the impact of the agreement on those who aren’t at the table, or suffer the consequences. That’s a lesson that Apple and some of the largest U.S. book publishers are currently learning the hard way. On April 12, the … Read Accounting for Outsiders in Your Negotiations
Fight or Flight
Many things factor into whether you choose “fight or flight” when faced with a difficult situation in life. Whether it is a disagreeable coworker or a border struggle between nations, the decisions made at the onset of conflict often determine the tenor of the entire proceeding. Along with information and a good-faith desire for collaboration, knowing … Read Fight or Flight
Resolving conflict, creating value
Significant business disputes typically involve more than one issue—including disputes that appear to be “just about the money.” Who pays and when? In what form is payment made, with what level of confidentiality, and with what effect on future disputes? In the heat of the moment, disputants too often focus on one conspicuous issue (such as … Read Resolving conflict, creating value
Negotiation: Challenge or threat?
Adapted from “Do Attitudes Influence Results?” first published in the Negotiation newsletter, January 2007. Many people consider negotiations to be stressful and threatening. Others view them as challenges that can be overcome. Do these different attitudes influence the outcomes that people reach? Research by professors Kathleen O’Connor of Cornell University and Josh Arnold of California State … Read Negotiation: Challenge or threat?
Why it pays to build relationships
Adapted from “When Lose-Lose Wins,” first published in the Negotiation newsletter, August 2004. Does negotiation research promote the creation of joint gain at the expense of relationship building? Researchers Jared R. Curhan, Margaret A. Neale, and Lee D. Ross suggest that the field is guilty as charged. To illustrate, the team apply author O. Henry’s classic tale … Read Why it pays to build relationships
Former Clearinghouse Customers Speak!
In an effort to understand more about how the former PON Clearinghouse does and doesn’t meet its customers’ needs, we interviewed a number of long-time Clearinghouse clients. We asked what teaching materials they found most valuable and for what reasons. We also asked how they found out about the former Clearinghouse and what additional teaching and … Read Former Clearinghouse Customers Speak!
When Negotiators Act Like Parasites
Adapted from “Creating Values, Weighing Values,” by Max H. Bazerman (professor, Harvard Business School), first published in the Negotiation newsletter. In April 2001, the FTC filed a complaint accusing pharmaceutical companies Schering-Plough and Upsher-Smith of restricting trade. Upsher-Smith had been preparing to introduce a generic pharmaceutical product that would threaten a near monopoly held by Schering-Plough. … Read When Negotiators Act Like Parasites
Too Tough Talk?
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 Too Tough Talk?
Accentuate the Positive
Adapted from “Promote the Positive or Minimize the Negative?” First published in the Negotiation newsletter. Tory Higgins, a social psychologist, and his colleagues Lorraine Chen Idson and Nira Liberman have introduced the concept of regulatory focus. According to Higgins, when making decisions, people focus on either promotion or prevention. Those focused on promotion are primarily concerned … Read Accentuate the Positive
Securities fraud plea bargain
The Clearinghouse at PON offers hundreds of role simulations, from two-party, single-issue negotiations to complex multi-party exercises. United States v. Dunlop is a four-person, three-issue, two-round exercise between U.S. prosecutors, an executive charged with securities fraud, and defense counsel over the terms of a possible plea bargain; attorney-client interviews are followed by … Read Securities fraud plea bargain
Teams across cultures
Adapted from “Team Negotiating: Strength in Numbers?”, first published in the Negotiation newsletter. According to conventional wisdom, when it comes to negotiation, there’s strength in numbers. Indeed, several experimental studies have supported the notion that you should bring at least one other person from your organization to the bargaining table if you can. On average, this … Read Teams across cultures
Business Negotiation Skills: Negotiate Before the Damage is Done
Suppose you work for a specialty bicycle manufacturer and have negotiated a one-year contract to buy 500 headlamps per month from a supplier for $10 each, with payment due 30 days after receipt. The seller makes five deliveries; you promptly pay $5,000 after each shipment. The seller fails to make the sixth delivery, however, and … Read More