Research & Discussion: Negotiation

Below is a discussion article I wrote for an MBA Strategic Communications course on the topic of effective negotiations.

Business Negotiation Skills:  5 Common Business Negotiation Mistakes
Harvard Law School - Program on Negotiation

This special report outlines 5 common mistakes taken into negotiations that undercut the effectiveness of the process.  I have limited exposure to negotiations at the enterprise or executive level, so I was applying these concepts to both family conversations and team dialogue related to motivating specific behavior or driving performance for my store.
The five mistakes include:

1. Viewing Negotiation As A Fixed Pie - Other students have covered this concept as well, but looking at a negotiation as WIN or LOSE is really counterintuitive to the productivity and mutual gain that can be achieved through effective compromise.
2. Overvaluing Your Assets - This refers to a "seller's bias" that overvalues assets.  It's important to restrict emotions in negotiations and engage in levelheaded decision making.
3. Going On A Power Trip - Though having an upper-hand can result in advantageous outcomes, if you leave the other party feeling disrespected or mistreated, you can face future backlash (fundamental marketing rule resting on the power of word-of-mouth and the value of your reputation).
4. Not Knowing What You Really Want - Two things here really stood out to me.  First, the power of impact bias or overestimating the happiness generated when you get what you want.  Secondly, the roller coaster of mis-wanting.  Again, effective negotiations require restraint and control of personal emotions.
5. Binding Yourself Too Tightly To A Deal - Here the article explores the importance of modeling scenarios, assessing commitment levels on both sides of the negotiation and leveling the playing field.  These are done to ensure vested interest doesn't become lopsided leaving one party holding the bag in the fall-out of a failed outcome.

These learnings were very valuable.  As I mentioned, my work experience has not included a great deal of negotiating.  I think finding creative win-win oriented solutions would be my natural style as a coach and team developer.  Thinking through the accountabilities and impact of emotional control would be most important in a negotiation situation.