Arikelen MNGY
Sebenius, J.K. (2001). Six Habits of Merely Effective Negotiators. Harvard
Business Review, 79(4), 87- 95.
This article, as the title implies, shows us some difficulties/wrongdoings while
negotiating with others and offers some guidelines to improve our skills.
1. Neglecting the other side’s problem
Negotiators are aware of their own interests and problems but you can’t negotiate
effectively when you neglect the problem of the other party. Transfer yourself into
their situation and think of reasons why they would say yes that is also good for
your self-interest. When you get to know their BATNA/interests or their point of
view, you will, most likely, end up faster with an agreeable solution for both
parties.
2. Letting price bulldoze all other interests
Most deals do not only involve interests such as the price of the object/service,
but do also involve interests such as a positive working relationship (which is of
course an example of something that is crucial in a long-term deal). Think about
things as negotiations of your salary with your boss; when you don't have an
alternative (BATNA = 0) you will have to work with him for a longer period of time.
Then you shouldn’t let only price determine whether you will sign the new
contract.
Also the ‘spirit of the deal’ is important, also referred to as the social contract.
When you have a positive/good distributive relationship with a client, for example
they share information with you that is actually necessary for you or your
company, you shouldn’t give that up only thinking about price. In the deal-making
process you have to be respectful and fair too, has to come to an agreement that
is letting both of the parties satisfied. When using price-centric tactics the joint
gains will eventually be left unrealized, something that can harm in the long-term,
whereas you only focus on short-term gratification (a good price).
3. Letting positions drive out interests
Incompatible positions may mask compatible interests. Your gain isn’t necessarily
your ‘opponent’s’ loss. There are three elements at play in negotiations. Issues
which are for explicit agreement, Positions are the party’s stands on the issues
and interests are the underlying concerns that would be affected by the
resolutions. Take into account that incompatible positions are unfavorable and
can lead to problems while negotiating.
4. Searching too hard for common ground
We are typically advised to find win-win agreements in a negotiation. However, it
is essential not to be too focused on reaching the common ground but rather
focus on the differences each party might have in their interests on the matter.
The author presents an example of why differences in interest might shift the
, focus and result in something better. Egypt and Israel were negotiating over Sinai,
and their positions on where to draw the boundary were incompatible. However,
they found a solution when they discovered that they had vital differences of
interest. The differences were such that Israelis wanted security, and Egyptians
cared more about sovereignty. The solution was ultimately a demilitarized zone
under the Egyptian flag.
5. Neglecting BATNA
The best alternative to a negotiated agreement represents your actions if the
proposed deal weren’t possible. (for example walk away, approach another
buyer). Assessing your own and your partner’s BATNA reveals surprising
possibilities. Having a strong BATNA is a great negotiation tool for you, which is
why it is also essential to consider your counterparts' BATNA. That is, of course,
somewhat difficult but could help you in a potential negotiation. BATNAs are
critical to negotiation because you cannot make a wise decision about whether to
accept a negotiated agreement unless you know what your alternatives are.
6. Failing to correct for skewed vision
The authors presents two biases that prompt error. The first one being self-
serving role bias. This means that people tend to unconsciously interpret
information that aligns with their own side and do so in a self-serving way.
“Believing your own line” is a typical mistake negotiators make. The second bias
is partisan perceptions. This bias highlights our error in assessing the other side.
Research shows that people tend to portray themself as more “knowledgeable”
and talented than their opponents. Partisan perception shape behaviour. For
example, believing that your opponent is stubborn might trigger that behaviour,
which ultimately reduces the possibility of reaching a constructive agreement.
How can you counteract these biases?
- Just knowing that they exist helps,
- Seeking views from the outside (externally) is also helpful
- The crucial part is to try and have someone prepare a case “as the other side”
and perform a role play that can generate valuable insight. → you will then learn
more about the counterpart.
Sebenius, J.K. (2001). Six Habits of Merely Effective Negotiators. Harvard
Business Review, 79(4), 87- 95.
This article, as the title implies, shows us some difficulties/wrongdoings while
negotiating with others and offers some guidelines to improve our skills.
1. Neglecting the other side’s problem
Negotiators are aware of their own interests and problems but you can’t negotiate
effectively when you neglect the problem of the other party. Transfer yourself into
their situation and think of reasons why they would say yes that is also good for
your self-interest. When you get to know their BATNA/interests or their point of
view, you will, most likely, end up faster with an agreeable solution for both
parties.
2. Letting price bulldoze all other interests
Most deals do not only involve interests such as the price of the object/service,
but do also involve interests such as a positive working relationship (which is of
course an example of something that is crucial in a long-term deal). Think about
things as negotiations of your salary with your boss; when you don't have an
alternative (BATNA = 0) you will have to work with him for a longer period of time.
Then you shouldn’t let only price determine whether you will sign the new
contract.
Also the ‘spirit of the deal’ is important, also referred to as the social contract.
When you have a positive/good distributive relationship with a client, for example
they share information with you that is actually necessary for you or your
company, you shouldn’t give that up only thinking about price. In the deal-making
process you have to be respectful and fair too, has to come to an agreement that
is letting both of the parties satisfied. When using price-centric tactics the joint
gains will eventually be left unrealized, something that can harm in the long-term,
whereas you only focus on short-term gratification (a good price).
3. Letting positions drive out interests
Incompatible positions may mask compatible interests. Your gain isn’t necessarily
your ‘opponent’s’ loss. There are three elements at play in negotiations. Issues
which are for explicit agreement, Positions are the party’s stands on the issues
and interests are the underlying concerns that would be affected by the
resolutions. Take into account that incompatible positions are unfavorable and
can lead to problems while negotiating.
4. Searching too hard for common ground
We are typically advised to find win-win agreements in a negotiation. However, it
is essential not to be too focused on reaching the common ground but rather
focus on the differences each party might have in their interests on the matter.
The author presents an example of why differences in interest might shift the
, focus and result in something better. Egypt and Israel were negotiating over Sinai,
and their positions on where to draw the boundary were incompatible. However,
they found a solution when they discovered that they had vital differences of
interest. The differences were such that Israelis wanted security, and Egyptians
cared more about sovereignty. The solution was ultimately a demilitarized zone
under the Egyptian flag.
5. Neglecting BATNA
The best alternative to a negotiated agreement represents your actions if the
proposed deal weren’t possible. (for example walk away, approach another
buyer). Assessing your own and your partner’s BATNA reveals surprising
possibilities. Having a strong BATNA is a great negotiation tool for you, which is
why it is also essential to consider your counterparts' BATNA. That is, of course,
somewhat difficult but could help you in a potential negotiation. BATNAs are
critical to negotiation because you cannot make a wise decision about whether to
accept a negotiated agreement unless you know what your alternatives are.
6. Failing to correct for skewed vision
The authors presents two biases that prompt error. The first one being self-
serving role bias. This means that people tend to unconsciously interpret
information that aligns with their own side and do so in a self-serving way.
“Believing your own line” is a typical mistake negotiators make. The second bias
is partisan perceptions. This bias highlights our error in assessing the other side.
Research shows that people tend to portray themself as more “knowledgeable”
and talented than their opponents. Partisan perception shape behaviour. For
example, believing that your opponent is stubborn might trigger that behaviour,
which ultimately reduces the possibility of reaching a constructive agreement.
How can you counteract these biases?
- Just knowing that they exist helps,
- Seeking views from the outside (externally) is also helpful
- The crucial part is to try and have someone prepare a case “as the other side”
and perform a role play that can generate valuable insight. → you will then learn
more about the counterpart.
