Idea in Brief
The Problem
Some of the costliest mistakes in negotiations take place before anyone sits down at the bargaining table. That’s because deal makers tend to focus too much on substance—offers, counteroffers, concessions—and not enough on process.
The Solution
Four strategies can help set the stage for a successful negotiation.
- Negotiators need to address matters of process at the outset.
- They must set realistic expectations.
- They need to clearly identify all players that will influence or be influenced by the deal.
- And they must set the psychological frame through which the deal will be viewed.
Countless books and articles offer advice that can help deal makers avoid missteps at the bargaining table. But some of the costliest mistakes take place before negotiators even sit down to discuss the substance of the deal. That’s because people fall prey to a seemingly reasonable—but ultimately faulty—assumption about deal making. Negotiators often take it for granted that if they bring a lot of value to the table and have sufficient leverage, they’ll be able to strike a great deal. While those things are certainly important, many other factors influence where each party ends up.