Arbitration & Mediation

Six Negotiation Pitfalls to Avoid from the Stanford Graduate School of Business

By Victoria Pynchon

The advice below is part of the Stanford Graduate School of Business Knowledge Base.  I have excerpted the article.  To read the entire discussion (particularly if case study examples are helpful to you) click here.

Poor planning

After preparing your own agenda, outline the same for your opponents: What are their preferences, alternatives, and bottom line? Once at the bargaining table, test your hypotheses to determine what the opposition's priorities really are. Prepare a written goal and analysis sheet for yourself.

Thinking the pie is fixed

Usually it's not. You may make this common mistake when there is a "congruent issue," when both parties want the same thing. . . . .  [At least one GSB professor has found that] 20 to 35 percent of the students assume it's a fixed pie and miss an opportunity to get what both parties want.

Failing to pay attention to your opponent

One way to get inside your opponent's head and influence his attitude is to shape the issues for him, a technique called "framing." If you get your opponent to accept your view of the situation, then you can influence the amount of risk he is willing to take.

Assuming that cross-cultural negotiations are just like "local" negotiations

[A cross-culturally] sensitive negotiator . . .  capitalize[s] on the differences [among] cultures . . .

Paying too much attention to anchors

Anchors are part of a bargaining dynamic known as "anchoring and adjustment." This involves clearly setting the parameters for negotiation.

Caving in too quick

Accepting a well-priced deal too quickly can cause anger on the other side, too. . . .  No matter what the price, even if it's fair, always offer less — if only to make your opponent feel good about the deal. You may come up to full price in the end, but at least your opponent will feel as if he made you work for it.

Don't Gloat

Finally, when you've cut a sweet deal, never do the dance of joy in public by turning to your opponents and telling them you would have done it for less. Gloating will only drive your opponent to extract the difference from you sometime in the future.

Full post as published by Settle It Now Negotiation Blog on September 22, 2009 (boomark / email).