SIX HABITS OF MERELY EFFECTIVE

NEGOTIATORS
(J.K. Sebenius / #rO 104e / 9 p)

Summary

Most executives know the basics of negotiation; some are spectacularly adept. Yet even
experienced negotiators routinely leave money on the table, end up in deadlock, damage
relationships, or allow conflicts to spiral. They fall prey to common mistakes that keep
them from solving the right negotiation problem. Because the other side will say yes
only to a proposal that meets its own interests better than its best no-deal option, you
must understand and shape your counterpart's decision so that it chooses in its own
interest what you want. Far from being exercises in manipulation, understanding your
counterpart's interests and shaping the decision so that the other side agrees to a proposal
for its own reasons are the keys to jointly creating and claiming sustainable value from a
negotiation. The author describes six common mistakes that result in merely effective
negotiation: neglecting your counterpart's problem, letting priee bulldoze other interests,
letting positions drive out interests, searching too hard for common ground, neglecting
no-deal alternatives, and failing to correct for skewcd vision.

Outline

Solving the Right Negotiation Problem

Mistake 1: Neglecting the Other Side's Problem

Mistake 2: Letting Price Bulldoze Other Interests

:\listake 3: Letting Positions Drive Out Interests

:\listake 4: Searching Too Hard for Common Ground

:\listake 5: ~eglecting BATNAs

'listake 6: Failing to Correct for Skewed Vision

From 'Ierely Effective to Superior Negotiation

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Learning Objectives
After reading the article and completing the following exercises, managers should be able
to:
• Know why it's essential to understand the other side's interests in a negotiation.
• Grasp several common mistakes negotiators make and why they can jeopardize the
outcome of a negotiation.
• Identify the mistakes they are most prone to make and take steps to correct them.

Questions and Ideas to Consider

1. Think about a negotiation for which you are preparing. Use the six mistakes
discussed in the article to help you prepare. You might want to keep the following
questions in mind:

• Neglecting the Other Side's Problem ... How would you define the problem from
the other side's perspective? Be as specific and as fair as you can. Does this
suggest a way to build a "golden bridge" between the other party's perspective
and your goal?

• Letting Price Bulldoze Other Interests ... Consider the four non-price factors
identified by the author (the relationship; the social contract; the process; and the
interests of the full set of players). How will you address these factors in your
preparation? How do they relate to the primary issue or problem?

• Letting Positions Drive Out Interests ... What do you know about the other side's
interests? How might they contribute to creating value in this negotiation? What
actions could you take to find out more about these interests?

• Searching Too Hard for Common Ground ... Conduct a "differences inventory" for
both sides. Which differences could potentially lead to joint gains?

• Neglecting BATNAs ... What is your BATNA is this situation? What is the other
side's BATNA? How do you know? What is the zone of possible agreement
between your BATNAs? How can you leverage your BATNA in this
negotiation?

• Failing to Correct for Skewed Vision ... Can you determine what part your o\\-n
bias might play in how you approach this negotiation? What steps will you take
to mitigate the effects of your bias?

2. At the end of the article, the author identifies several other errors that negotiators are
prone to making. Review the list carefully. Are there particular errors that you ten,':
to repeat when negotiating? What two or three steps could you take to address these
mistakes?