Harvard Negotiation Course in 5 Minutes: My Top 4 Takeaways from Harvard's "Mastery of Negotiation" Certification

I had the honor and privilege to complete a Harvard business school Online certification in negotiation last year. It was a fascinating and interactive 3 month course where you utilize learnings in real world scenarios with other students around the world.?

My Top Takeaways:

1. Negotiation is teamwork, not battle.

• What do you think of when you think about “negotiation”. Probably something like what you experience on Facebook Marketplace buying and selling. Offensive low balls, frustrating conversations. The classic perception of negotiation is that it’s 2 opposing parties battling against each others’ best interests to maximize one’s own personal gain. The shift in perspective, which leads to a shift in problem solving approach, is to consider yourselves on the same team, working towards a common goal of maximizing collective value. It just makes the overall process more enjoyable, more productive, and more valuable for both parties. The enemy is not each other, it is the scenario you’re solving for. On the note of attitude, negotiations that begin with “I’m excited for this process” have a 62% higher likelihood to reach a positive mutual outcome than “I’m nervous for this process”.?

2. Preparation is the largest key to successful negotiation.?

• Know your BATNA (Best Alternative to a Negotiated Agreement) aka if you can’t reach a deal, what’s the best next best alternative.?
• Know your ZOPA (Zone of Possible Agreement) aka the worst case and best case scenario while still making a deal. Knowing your own limitations, and by collecting as much info about the other party’s limitations, what’s the lowest you’re willing to go, and the highest you’re willing to go.?
• WHERE? should the negotiation take place? In-person is always more ideal. Your turf, theirs, or a neutral location? All have pros and cons. I’m personally a fan of meeting on the other parties turf. It shows willingness to contribute, and it provides insight on their personal and organizational values.?
• WHEN? Time of year and time of day can play critical roles. When are budgets allocated, when is the other party least distracted, most optimistic, and vice versa. When do you want to avoid negotiating? Typically in B2B conversations, it’s best to get ahead of the fiscal year by 4-6 months to allow for planning and allocation of budget.?
• WHO is there?
• Larger teams can be helpful if people have certain expertise. Coaching can be necessary. But it’s essential to be aligned so communication is clear as a team and there are no misalignments.?
• Small teams are more agile which is an advantage in today’s fast paced world?
• Consider “leaving someone at home” so you can say, "I need to check with my team and get back to you", if you need more time. Know who your scapegoat decision maker is.?
• Will you make the first offer or delay for the other party??
• Making first offer:?
• Pros:?

You set the anchor and the expectation for the negotiation

Often more efficient to cut to the chase

Often helps determine the final agreement price to be more in your favor

• Cons:?

You might come in too high or too low

You need to have some understanding of your counterparts feasible price range

First offer can offend the counterpart, or damage the relationship / atmosphere of the situation

• My preference, since I usually know my resources and I don’t have much time, is to make the first offer. This requires maximum preparation but is typically most efficient. Let’s cut to the chase.?

3. Get Creative?

• Complex problems have complex solutions. Know the areas where you can provide unique solutions tailored to the scenario.?
• Specific examples here include:
• Inventory buy-backs: we’ll sell you x amount of inventory and if it doesn’t sell, we’ll buy it back?
• Performance incentives: if you achieve x we’ll provide x
• One way to identify areas for creativity is asking questions. Double the quantity or quality of the questions that you ask and you’ll double the amount of possible creative solutions.?

4. Keep the human element top of mind.

• Negotiations are often the beginning of long term human relationships. Keep the long game in mind. Get to know the values, morals, passions, interests, and priorities of the other party. Have a genuine interest in the other party.?
• A study that proved the importance of relationship building in negotiation: Group A was given 10 minutes to casually talk, then was given the negotiation details. Group B was given the details prior and were told to come to an agreement as soon as possible. Group A was 60% more likely to come to an agreement. Build the relationship. Know who you’re dealing with.?
• Nobody likes the boring water cooler talk, so try to find the most efficient route to genuine and mutually interesting conversation, founded on common ground. I tend to point out something that we have in common early on in relationship building phase. I’m fortunate to work in an industry where nearly everyone I work with enjoys being on, or in, the water. So I try to connect on fishing, diving, surfing, sailing, which people tend to be very passionate and willing to talk about.?
• Utilize Yes and No questions if the other party is hesitant to open up. Sometimes getting people to say “no” makes them more comfortable saying yes later on. For instance you could ask “Would it be unreasonable for me to ask you to reduce the transaction fee, if I can increase xx…”. Similarly, getting people to say yes can be productive as well, making it easier to work toward more yes’s. “Are you open to…”?
• Think from the other parties perspective. If you’re about to lowball them on an offer, how would you feel in their shoes? Do they have an emotional tie to the situation? The answer is always yes, but to what degree. Everyone has feelings and even in business we will never be fully robotic. For example: If you’re buying artwork from someone and you anticipate doing so long term, consider paying a very fair market price initially to establish good rapport. Then maybe bundle purchases later on for a win-win, or draft a long term agreement that establishes more significant deliverables from both parties.?
• Body language is key: You want to be engaged, leaned forward, listening, non-verbal cues can be very significant. Mirroring the other party with physical gestures and verbal cues?is proven to be powerful.?

Overall I highly recommend this course. Most of the material reinforced information I already knew, so the real value for me was in the interactive case-based scenarios with other students where you apply the techniques and learnings.

I'm curious to hear if you recommend any courses through universities, Coursera, Udemy, Youtube, or beyond!

Harvard Business School Online

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