How do you shape negotiations with framing and anchoring?

1 What is framing?

Framing is the way you communicate the context, meaning, and implications of the negotiation to the other party. Framing can affect how the other party perceives the situation, their interests, and their options. Framing can also influence their emotions, expectations, and willingness to cooperate. For example, framing the negotiation as a problem-solving exercise rather than a conflict can foster a collaborative mindset and a positive atmosphere.

2 How to frame effectively?

In order to frame effectively, you need to understand the other party's perspective, needs, and goals, while also aligning your frame with your own objectives and strategy. To do this, use positive and constructive language that emphasizes common ground, mutual benefits, and long-term relationships. Instead of negative and aggressive language that could trigger defensiveness, resistance, or hostility, provide clear and relevant information that supports your position and value proposition. Additionally, focus on the benefits and opportunities of your offer rather than the costs and risks. Present multiple options or scenarios that allow the other party to choose and feel in control. Lastly, reframe any objections or challenges as opportunities or questions to explore.

3 What is anchoring?

Anchoring is the process of establishing a reference point or a benchmark for the negotiation. Anchoring can affect how the other party evaluates your offer, compares alternatives, and makes concessions. For example, anchoring a high price or a low demand can create an impression of value or scarcity, and influence the other party's expectations and satisfaction.

4 How to anchor effectively?

To anchor effectively, you need to have a good understanding of your target, reservation, and aspiration points. You should also back up your anchor with credible evidence and arguments. When making the first offer or counteroffer, do so confidently and assertively, but not unrealistically or offensively. It is important to base your anchor on objective standards such as market value, industry norms, or expert opinions. Explain the logic behind your anchor and how it reflects your interests and priorities. Additionally, anticipate the other party's reactions to your anchor and be prepared to adjust or modify it if needed. Lastly, remember to use anchoring as a tool to create value, not as a tactic to exploit or manipulate the other party.

5 How to avoid framing and anchoring biases?

Framing and anchoring are not only techniques that you can use, but also biases that can distort your perception, judgment, and decision-making in a negotiation. For example, you may be influenced by how the other party frames the situation or an irrelevant anchor they propose. To avoid framing and anchoring biases, it's important to be aware of your own assumptions and preferences, as well as critical of the other party's frames and anchors. Additionally, you should remain flexible and open to different perspectives, alternatives, and outcomes. Lastly, seek feedback from others who can offer a different view of the situation and negotiation.

6 How to combine framing and anchoring?

Framing and anchoring are complementary techniques that can work together to shape negotiations and achieve optimal results. To combine these two approaches effectively, you need to be strategic, creative, and adaptive. For instance, use framing and anchoring to support your goals and align them with the other party's interests. You can also create contrast and comparison effects, such as making an offer look like a bargain or a concession appear generous. Additionally, explore and expand the zone of possible agreement by framing the negotiation as a joint venture or anchoring a range instead of a point. Finally, you can use framing and anchoring to overcome impasse or deadlock, such as reframing the problem as a challenge or opportunity, or anchoring a contingency or compromise.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?