3/3/2021 Why do negotiations fail?

- The Smart Manager

lack of preparation

Many negotiations fail because they are not taking place within the zone of possible
agreement (ZOPA). Basically, this means that both parties come to the negotiating table
with nothing but excitement and the hope that a deal can be made—even when the
evidence suggests that there is no real possibility of reaching a deal even in the best of
circumstances. Often, this type of negotiation occurs when one or both parties are
desperate for a deal, unprepared for the process, or under-prepared. Only later do they
realize that there are too many obstacles between them to justify a serious negotiation.

To avoid time-wasting negotiations that have no chance of success, it is important to do

the necessary due diligence beforehand. Do not commit to formal negotiations unless
there is an identifiable and realistic path to achieving your aims.

lack of a framework of understanding

Other negotiations fail due to a failure to clearly communicate and understand issues of
material importance. Too often, this occurs when there is no established framework and
a checklist to manage key issues, goals, and objectives.

When you are initiating a negotiated deal, it is important to establish a framework of

general understanding right away, so that this common understanding can be clearly
communicated to all relevant parties. Invite input and feedback to ensure that you
minimize surprises that could turn out to be deal-killers. As the negotiator, you should
also think through the best-case and worst-case scenarios, including the possibility of a
bottom-line walk away.

failure to build a relationship

Another common factor in failed negotiations is a lack of

rapport. It is crucial to establish some sort of common ground
early, so that the negotiating parties can build a solid
relationship. In business, as in life, it is always preferable to
build friendships and promote mutual interest than to allow
you inherent self-interest to hold sway in our dealings with
others. Great rapport helps to cultivate understanding and
flexibility, and creates a more favorable environment of
mutual interest that makes it easier to resolve outstanding
issues.

Moreover, when you create great rapport throughout your

negotiating process, it is easier to iron out a detailed
implementation plan once the deal is done.
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3/3/2021 Why do negotiations fail? - The Smart Manager

lack of trust and respect

As you might expect, it is difficult to negotiate in an environment where trust and respect
are in short supply. When it comes to negotiations, that lack of trust and respect all too
often leads to stalemate and abandonment of the discussions.

The problem is that trust and respect are essential for fostering productive engagement.
When they are absent, both parties are always on their guard, fearful of hidden
intentions and misrepresented claims. That leads to bad feelings and an unwillingness to
collaborate or reciprocate. Rather than focusing on resolving big issues, the parties
spend time arguing over trivialities—which leads to even more conflict and confrontation.

no longer a good deal or not as good as represented

Sometimes, negotiations simply fail because the deal is not as good as it first appeared,
or economic and other conditions change in ways that make the deal less attractive.
While doing your homework can help in many other areas, it is also important to
recognize that sometimes the factors that derail a deal are outside your control.

confrontational personalities

Egoistic and confrontational negotiators have killed many deals. They create a
combative environment that makes it difficult to reach a compromise or concession.
When a negotiator is focused only on strength and ego, it creates a poisonous ‘win at all
costs’ atmosphere. Always remember: a bad deal is far worse than no deal.

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