?? The Four Cardinal Sins of Negotiation

Stepping into the negotiation arena, I was driven by a rather peculiar aspiration: to master the art I felt most uneasy about. Truth be told, no sane soul jumps out of bed, fist-pumps the air, and declares, "Yes! Three nerve-wracking negotiations today!"

Negotiations, by their very nature, breed a specific cocktail of anticipation and anxiety. Recognizing the four most infamous blunders in negotiation has been my saving grace, ensuring I dodge these costly bullets with grace.?

Negotiation:?A delicate dance between art and strategy

Even the most seasoned negotiators?can trip over their own feet. Here’s a spotlight on those four pesky pitfalls:?

1.- Leaving Value on the Table?

• What it is:?Negotiators often overlook opportunities to enhance mutual gains.?
• Causes:?Poor preparation, limited understanding of both parties’ interests, priorities, and preferences, and ineffective communication.?
• Avoidance Strategies:

? Break away from the zero-sum mindset.?

? Build trust to encourage collaboration and information sharing.?

? Focus on interests rather than positions.?

? Promote open exchange of interests, priorities, and preferences to discover hidden value.?

? Use asymmetrical prioritization of issues for beneficial trade-offs.?

? Negotiate in bundles to maximize synergy, not sequentially.?

? Utilize MESOs (Multiple Equivalent Simultaneous Offers).?

• Case in point:?Remember when CBS and Time Warner treated us to a month of no CBS over some fee squabble? Both sides bled money like it was going out of style.?

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2.- Settling for Crumbs

• What it is:?Accepting far less than what we could have potentially achieved.?
• Causes:?Inadequate preparation, focusing on personal weaknesses, and fear of conflict.?
• Avoidance Strategies:

? Set ambitious but achievable targets.?

? Firmly anchor your negotiations around these targets.?

? Make the first offer if possible; if not, your counteroffer based on your target.?

? Leverage your opponent’s weaknesses.?

? Ensure every concession is exchanged for something of value.?

• Case in point:?IBM is offloading its PC business to Lenovo for peanuts, which is not their brightest moment.?

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3.- Walking Away Too Soon

• What it is:?Leaving negotiations prematurely, missing out on potentially better outcomes.?
• Causes:?Emotional reactions, poor judgment, or impatience.?
• Avoidance Strategies:

? Manage emotions and take breaks when necessary.?

? Accurately assess your BATNA (Best Alternative to a Negotiated Agreement) and compare it to what potentially can be achieved or the offer on the table.?

• Case in point:?The 2018 US-North Korea summit in Hanoi ended abruptly when President Trump walked away, potentially missing out on a beneficial partial agreement.?

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4.- Accepting a Deal Below Your BATNA

• What it is:?Settling for a deal worse than the fallback alternative.?
• Causes:?Inadequate evaluation of BATNA, fear, and succumbing to the pressure of closing the deal.?
• Avoidance Strategies:

? Regularly reassess your BATNA, and keep on working on improving it.?

? Maintain objectivity and resist short-term pressures.?

• Case in point:?Yahoo said no to billions from Microsoft, only to scrape pennies compared to what Verizon offered years later.?

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In conclusion:

• Mastering the avoidable art?of negotiation blunders not only polishes your skills but sets you apart in the high-stakes game of give and take.?
• Know these traps well, and your negotiation results won't just be better—they'll be spectacular.?

Here’s to not just surviving?in the negotiation jungle but thriving!?

Happy negotiating!???

Pablo Restrepo?

CEO Negotiation by Design