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Negotiation strategies|What People Still Get Wrong About Negotiations
Negotiation strategies

What People Still Get Wrong About Negotiations

They assume the size of the pie is fixed—and miss opportunities to create value. by Max H. Bazerman

From the Magazine (January–February 2025)
Roberta Neidigh

Summary.   

Most executives leave value on the negotiating table, for two main reasons: First, many executives mistakenly believe that they’re negotiating over a fixed pie and that gains for one side necessarily mean losses for the other. Second, they focus exclusively on how to claim value for themselves (by taking as much as they can of that mythical fixed pie) rather than coming up with ways to increase the size of the pie. All too often, negotiators fail to share information with their counterparts about preferences on the various issues, fearful that they will be exploited if the other side knows what they value. They keep all their cards hidden and assume that this is the secret to being a tough negotiator. To elicit the information necessary to create value, resolve conflicts, and reach efficient agreements, negotiators should use four key strategies: building trust, asking questions, sharing information, and making multiple offers simultaneously. A fifth strategy is also introduced: the concept of post-settlement set­tlements (PSS) to improve deals even after initial agreements have been made.
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One of the simulations I use when teaching managers to negotiate more effectively involves a technology transfer between two divisions of a corporation. The price of the transfer is central to the negotiation, but there are other important issues to be considered as well. The structure of the deal will affect how much profitability the technology transfer creates for each division and for the company as a whole.

Read more on Negotiation strategies or related topics Negotiating skills, Persuasion, Trustworthiness, Interpersonal skills, Organizational culture, Interpersonal communication and Behavioral science
A version of this article appeared in the January–February 2025 issue of Harvard Business Review.
Read more on Negotiation strategies or related topics Negotiating skills, Persuasion, Trustworthiness, Interpersonal skills, Organizational culture, Interpersonal communication and Behavioral science

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