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effective negotiation

What is Effective Negotiation?

In the business world, organizations take competition for granted, but they often overlook effective negotiation strategies they can use to cooperate and achieve better outcomes.

We might hope that when we adopt effective negotiation strategies—such as spending lots of time preparing and asking questions at the table—we would achieve consistently strong results in our negotiations. Yet as most of us have experienced, our outcomes can vary a great deal from one negotiation to the next.

In part, this may be due to a lack of understanding on the benefits of effective negotiation with our competition. As proof of those benefits, in 2013, U.S. automakers Ford and General Motors announced they were teaming up to develop two new automatic transmissions (a nine-speed and a 10-speed) to help them comply with tightening fuel-economy regulations. The complex, high-tech parts are critical to vehicle performance, but they’re not part of a carmaker’s brand identity.

Working together to design the transmissions allowed the companies to share the high costs of developing the hardware without blurring their identities in the eyes of consumers. After designing the hardware, the companies split off to independently develop control software for the transmissions.

It’s worth pointing out, however, that effective negotiation doesn’t mean that some negotiations won’t still require hard bargaining. The cast of the TV sitcom, “Friends,” offers a prime example. At the height of program’s popularity they banded together to pull off an unprecedented salary negotiation, walking away with a $1 million each per episode for the final two seasons, which aired from 2002-2004.

In one instance, as negotiations went on without an agreement, the executives took an especially hard line against one cast member. In response, the entire cast walked out in the middle of filming an episode, costing the studio up front, showing them what the consequences of not reaching a deal would be in the long term.

To learn more about effective negotiation techniques, download your FREE copy of Getting the Deal Done, from the Program on Negotiation at Harvard Law School.

 

 

The following items are tagged effective negotiation:

Cross Cultural Communication: Translation and Negotiation

Posted by & filed under International Negotiation.

In previous international negotiation articles from cross cultural negotiation case studies, we have focused on how international negotiators can avoid cognitive biases and overcome cultural barriers. But how do negotiators dealing with counterparts that speak another language modify their negotiation techniques to accommodate for the lack of a common language? … Read More

Relationship-Building in Negotiation

Posted by & filed under Business Negotiations.

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

Trust in Negotiation: Does Gender Matter?

Posted by & filed under Negotiation Training.

It can be difficult to assess whether to trust a counterpart in negotiation. As a result, we often fall back on unreliable information, such as gender stereotypes, when making trust-related decisions. Let’s review what we know about the link between gender and trust in negotiation, and then consider effective means of measuring and building trust … Read Trust in Negotiation: Does Gender Matter?

How to Negotiate a Business Deal

Posted by & filed under Business Negotiations.

In late 2016 and early 2017, news stories abounded of companies that were having second thoughts about planned mega-mergers. Abbott Laboratories began looking for ways to exit its acquisition of Alere, citing investigations of the medical test maker, for example. And Verizon started rethinking its acquisition of Yahoo! following a data breach at the tech … Read How to Negotiate a Business Deal

Top Ten Posts About Conflict Resolution

Posted by & filed under 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

5 Types of Negotiation Skills

Posted by & filed under Negotiation Skills.

Business people 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 … Read 5 Types of Negotiation Skills

Win-Lose Negotiation Examples

Posted by & filed under Win-Win Negotiations.

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 Win-Lose Negotiation Examples

5 Common Negotiation Mistakes and How You Can Avoid Them

Posted by & filed under Negotiation Skills.

Sometimes our negotiation mistakes are glaring: We accidentally reveal our bottom line, criticize the other party when patience was warranted, or get our numbers mixed up. More often, though, our negotiation mistakes are invisible: We get a perfectly good deal but are unaware that we could have gotten a better one if we hadn’t succumbed … Read More

5 Good Negotiation Techniques

Posted by & filed under Negotiation Skills.

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 5 Good Negotiation Techniques

Negotiation Skills: Four Steps for Changing Negotiation Practices in Your Organization

Posted by & filed under Business Negotiations.

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

Dear Negotiation Coach: Coordinating Teams to Get Everyone in the Same Frames

Posted by & filed under Negotiation Training.

Q: I lead a team of approximately 50 lawyers in the in-house legal department of a Fortune 500 company. As our team gets larger, reflecting the company’s growth, I’d like to install quality-control measures to ensure that all our attorneys are effectively negotiating settlements when appropriate and taking cases to trial when not. What are … Read More

When Hard-Bargaining Isn’t Enough

Posted by & filed under Dispute Resolution.

Leonardo da Vinci’s painting Salvator Mundi has long been shrouded in mystery. The 16th-century portrait of Jesus Christ periodically disappeared over hundreds of years before being mistakenly sold at auction as another artist’s work for just £45 in 1958. In 2005, art dealers purchased the damaged painting for approximately $10,000 in an estate auction. After … Read When Hard-Bargaining Isn’t Enough

MESO Negotiation Strategies and Negotiation Techniques

Posted by & filed under Dealmaking.

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

Effective Negotiation Strategies for Dealing with Competitors

Posted by & filed under Negotiation Skills.

In the business world, organizations take competition for granted, to the extent that they often overlook opportunities to meet their goals by working with one another. But the benefits of negotiation in business can extend to our dealings with competitors. Recent high-profile negotiations highlight three effective negotiation strategies competitors can use to cooperate and compete. … Read More

Closing the Deal in Negotiations When Win-Win Seems Likely

Posted by & filed under Dealmaking.

Excerpted from the article “Will Your Negotiation Make It to the Finish Line?” in the December 2020 issue of Negotiation Briefings, the Program on Negotiation’s monthly newsletter of advice for professional negotiators.  When it comes to closing the deal in negotiations, agreements sometimes fall apart for good reason. If one or more parties realize they could … Read More

Implement Negotiation Training in Your Organization

Posted by & filed under Negotiation Training.

Organizations across the globe spend many millions of dollars each year on negotiation training for their employees. This training can be in-house, led by consultants and other experts, or employees can travel to training programs at universities and elsewhere. After engaging in a couple of days of training, employees return to the office and attempt … Read More

Teaching with Video-Based Negotiation Scenarios

Posted by & filed under Teaching Negotiation.

Access to multimedia content has rapidly increased throughout the world, with videos and short clips permeating our daily life. We are consuming, producing, and interacting with videos more now than ever before. In light of increasing video fluency and interest in using videos in education, the Program on Negotiation’s Teaching Negotiation Resource Center is creating … Read Teaching with Video-Based Negotiation Scenarios

Effective Negotiation Behavior: Are You Consistent?

Posted by & filed under Negotiation Skills.

We might hope that when we adopt effective negotiation strategies—such as spending lots of time preparing and asking questions at the table—we would achieve consistently strong results in our negotiations. Yet as most of us have experienced, our outcomes and personal satisfaction can vary a great deal from one negotiation to the next. Why? Likely … Read More

Mandated Mediation: What to Expect

Posted by & filed under Mediation.

More and more companies are inserting alternative dispute resolution (ADR) clauses in their contracts with customers and vendors—and even, in some cases, in agreements with their own employees. ADR clauses can be beneficial for all concerned if it means avoiding the cost, delay, and uncertainty of going to court. Mandated mediation, in particular, may offer … Read Mandated Mediation: What to Expect

Effective Negotiation Techniques: Strive for a Precision Advantage

Posted by & filed under Negotiation Skills.

As you may have noticed, the first offer made in a negotiation often has a significant influence on the final outcome. In their research, psychologists Daniel Kahneman and Amos Tversky documented that the first number introduced in a negotiation serves as an “anchor” that can be impossible to ignore—no matter how irrelevant, outrageous, or insulting … Read More

Success & Messes: Nancy Pelosi’s next-to-last stand

Posted by & filed under Negotiation Skills.

On February 14, the White House announced that President Donald Trump would sign a federal budget deal that included only a fraction of the funds he had demanded for a border wall with Mexico and attempt to secure the remaining wall funding by declaring a national emergency. For many congressional Democrats, Trump’s capitulation on the budget— following … Read More

The Moral Quandary: Negotiation Exercises Featuring Ethical Dilemmas

Posted by & filed under Teaching Negotiation.

In a negotiation, few issues heighten tensions faster than when one party feels that the other party has done something ethically or morally incorrect. To help professionals prepare for times like this, the Program on Negotiation’s Teaching Negotiation Resource Center (TNRC) offers a variety of negotiation exercises designed to teach participants how to handle disputes that … Read More

Negotiation Training with Heart

Posted by & filed under Negotiation Training.

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 Negotiation Training with Heart

Teaching Negotiation: The Art of Case Study Writing

Posted by & filed under Teaching Negotiation.

Jim Sebenius, the Gordon Donaldson Professor of Business Administration at Harvard Business School, and Director of the Harvard Negotiation Project, addressed these questions in his presentation at the NP@PON Faculty Dinner Seminar on October 7, 2010. His article, “Developing Negotiation Case Studies,” began as a memo to a novice case writer about how to write … Read More

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 Negotiating with Your Agent

In Negotiation, Display Anger with Caution

Posted by & filed under Negotiation Skills.

Virtually all of us experience feelings of anger from time to time during our negotiations. Past research findings reassured business negotiators that their displays of anger could benefit them by conveying toughness and motivating their counterparts to make concessions. But a new research study by professors Hajo Adam of Rice University and Jeanne M. Brett … Read In Negotiation, Display Anger with Caution

“Negotiating at Work: Turn Small Wins into Big Gains”: A Book Talk with Deborah Kolb

Posted by & filed under Daily, Events.

The Program on Negotiation at Harvard Law School is pleased to present: Negotiating at Work: Turn Small Wins into Big Gains

with Deborah Kolb Professor Emerita, Simmons College School of Management Tuesday, November 17 4:00-5:15 PM Pound Hall 102 Harvard Law School Campus Free and open to the public; refreshments will be served.   About the book: Negotiation is undoubtedly essential to navigating the working world. Dr. … Read More

Have You Negotiated How You’ll Negotiate?

Posted by & filed under Negotiation Skills.

A large pharmaceutical company was engaged in licensing negotiation with a small biotech firm over the terms of a technology transfer. When the talks reached a standstill over royalty rates, the two sides began an all-weekend marathon session. Each side came armed with supporting arguments and data, but, by Sunday afternoon, they had failed to converge toward … Read Have You Negotiated How You’ll Negotiate?

Ambassador Tommy Koh of Singapore Named the Great Negotiator by the Program on Negotiation and the Future of Diplomacy Project

Posted by & filed under International Negotiation.

The Program on Negotiation, an inter-university consortium of Harvard, MIT, and Tufts, and Harvard’s Future of Diplomacy Project have named Ambassador Tommy Koh of Singapore the recipient of the 2014 Great Negotiator Award. In public events at Harvard planned for the afternoon of Thursday, April 10, 2014 (details to be announced), participants will honor Koh’s … Read More

Capitalize on negotiator differences

Posted by & filed under Negotiation Skills.

Adapted from “What Divides You May Unite You,” by James K. Sebenius (professor, Harvard Business School), first published in the Negotiation newsletter, July 2005. Some years ago, an English property development firm had assembled most of the land outside London that it needed to build a large regional hospital. Yet a key parcel remained, and its … Read Capitalize on negotiator differences

Bruce Patton on Teaching the Micro-Skills of Negotiation

Posted by & filed under Daily, Negotiation Skills, Pedagogy at PON.

There is often a profound gap – of which we are typically unaware – between what we “know” or “believe” about effective negotiation practice and what we actually do as practitioners under pressure.  Bruce Patton, the founder of Vantage Partners and co-founder of the Harvard Negotiation Project, advocates helping students master key “micro-skills” to enable … Read More

Making and Using Films to Teach Negotiation

Posted by & filed under Daily, Negotiation Skills, Pedagogy at PON.

Access to multimedia content is rapidly increasing throughout the world, with videos and short clips permeating our daily life – whether in gas stations, on ATMs, cell phones, or mobile entertainment devices.   We are consuming, producing, and interacting with videos more now than ever before: YouTube is the third-most visited website on the Internet, the … Read Making and Using Films to Teach Negotiation

Insights from a Communication and Negotiation Conference: The Benefits of Not Knowing

Posted by & filed under Daily, Negotiation Skills, Pedagogy at PON.

An Experiment: Exploring Interdisciplinary Linkages between Negotiation and Communication Studies What would negotiation pedagogy look like if we focused more on the core meanings and practices of communication? How can understanding the underpinnings of communication – the components of conversation and the exchange of meaning – help us understand and improve our negotiations? The weekend of … Read More

Negotiate how you’ll negotiate

Posted by & filed under Daily, Negotiation Skills.

Adapted from “Have You Negotiated How You’ll Negotiate?” by Robert C. Bordone, Professor, and Gillien S. Todd, Lecturer, Harvard Law School. Breakdowns in negotiation are common. In the face of impasse at the bargaining table, managers are quick to blame either the challenges of the issues being negotiated or the hard-line tactics of the opposing parties. … Read Negotiate how you’ll negotiate