PON – Program on Negotiation at Harvard Law School - https://www.pon.harvard.edu
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.
Sometimes even the best agreements arising out of negotiation in business and are liable to failure and such is the case with the dispute between food giants Starbucks and Kraft (now Kraft-Heinz). … Learn More About This Program 
Learning great BATNA examples, or estimations of your best alternative to a negotiated agreement as well as that of your negotiating counterpart, are essential to effective negotiation strategies. When preparing to negotiate, always take time to consider these important questions. … Learn More About This Program
Forging close bonds typically helps negotiators reach better deals, work together effectively over time, and manage conflict—yet negotiators often rush through the process of relationship-building in negotiation. Here’s advice on how to approach this important aspect of negotiation more methodically.
Overcome Partisan Perceptions
An unconscious bias often gets in the way of relationship-building in negotiation: partisan perceptions, or … Read Relationship-Building in Negotiation
If you negotiate regularly on the job, you probably have engaged in multiple business negotiations with counterparts from other cultures. Negotiating across cultural barriers can significantly expand your organization’s reach and bring great rewards. Yet negotiating cross-culturally also can pose challenges, such as these. … Learn More About This Program
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 in business negotiations. … Read How to Find the ZOPA in Business Negotiations
In the Amazon–Whole Foods negotiation, an insistence on exclusivity led the two parties to quickly get down to business. But speed may have led them to overlook an important factor: culture. … Learn More About This Program
So, you’ve offered what you think is a great deal, but your counterpart doesn’t seem to agree. What’s the problem? The offer may be excellent—it’s how you’ve approached framing in negotiation that’s holding you back. … Read Framing in Negotiation
Business negotiations fail for many reasons. An attempted merger between Renault and Fiat Chrysler collapsed, despite its potential benefits, because of the failure to consider how it would play with interested parties. … Read When Business Negotiations Fall Flat
Employment contract negotiation in some industries involves the negotiation of morals clauses—an increasingly common way for organizations to protect themselves from employee misbehavior. … Read Employment Contract Negotiation: Morals Clauses
Men tend to achieve better economic results in negotiation than women, negotiation research studies have found overall. Such gender differences are generally small, but evidence from the business world suggests that they can add up over time. … Learn More About This Program
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