Negotiation Skills

How many types of negotiations can you think of? There are countless — business negotiations, legal negotiations, international negotiations, crisis negotiations, and more. But who typically wins? Is it those with a stronger position and a tougher negotiating style? It depends. Classic negotiation tactics suggest the winners are those who are better prepared and more strategic.

In this review, we’ve compiled some of the most popular strategies and negotiation models to help you sharpen your skills.

Getting to Yes

If you don't know about the Harvard negotiation method, now is the time to learn about it. The Program on Negotiation (PON) was established in 1983 as a research initiative at Harvard Law School and now includes participants from Harvard, MIT, and Tufts University. The essence of Harvard's negotiation method is that you don't have to choose between negotiating in a tough, demanding manner or in a friendly, accommodating way. As stated on the PON blog, “there’s a better, third way of negotiating — one that doesn’t rely on toughness or accommodation, but that will improve your likelihood of meeting your negotiation goals.”

In the famous book Getting to Yes: Negotiating Agreement Without Giving In (Penguin, 2nd edition, 1991), authors Roger Fisher, William Ury, and Bruce Patton of the Harvard Negotiation Project outline four core principles of "principled negotiation." These principles, highlighted on the PON site, can transform how you approach negotiations:

1. Separate the people from the problem: Strong emotions often complicate negotiations. The aim isn’t to “win” but to understand and address each party’s concerns.
2. Focus on interests, not positions: Instead of arguing over opposing positions, identify the underlying interests — needs, wants, and motivations — that drive those positions.
3. Invent options for mutual gain: Don’t settle for the first agreeable solution. Instead, brainstorm a range of possibilities and select the best option that benefits all parties.
4. Insist on using objective criteria: To avoid unproductive back-and-forth arguments, rely on fair, independent standards such as market value, expert opinions, or legal benchmarks.

From winning to resulting

During the NES Popular Science Days in memory of Gur Ofer, a special discussion (in Russian) on negotiation skills was held. Speakers included Dzhangir Azer ogly Dzhangirov (MAE'2004), Senior Vice-President of Sberbank; Anton Suvorov (MAE'1999), NES Rector and Associate NES Professor; Yulia Danchina, NES Visiting Professor; and Marat Atnashev, NES Visiting Professor. Below is a summary of their advice, which aligns with and expands on the Harvard method:

• Preparation is Key: Success in negotiations is 80% preparation. Invest time in preparing, and view negotiations as a dynamic process where all parties can achieve their goals.
• Gather Information: Collect details on the parties involved, the company, and key individuals. Negotiations aim to reduce information asymmetry, leading to better outcomes.
• Recognize Manipulation: Stay alert to irrational behavior, aggression, or emotional escalation. These can signal attempts at manipulation or make you vulnerable to it.
• Evaluate Results: Reflect on three aspects: the tangible outcome, the resources invested (e.g., time, legal fees), and the impact on your reputation or social capital.
• Leverage Alternatives: Strong negotiating power comes from having alternatives. Avoid negotiating from a weak position without solid options

Understanding fundamental negotiation concepts is critical. Two important terms are:

• ZOPA (Zone of Possible Agreement)

According to the Business Insights Blog from Harvard Business School Online, the Zone of Possible Agreement (ZOPA) refers to the range in a negotiation where two or more parties can find common ground. Within this zone, the negotiating parties can work towards a shared goal and potentially reach an agreement that incorporates some of each other's ideas. ZOPA is also known as the "bargaining range" or "bargaining zone."

• BATNA (Best Alternative to a Negotiated Agreement):?

The definition, or the ability to identify a negotiator’s best alternative to a negotiated agreement, is among one of the many pieces of information negotiators seek when formulating dealmaking and negotiation strategies. If your current negotiation reaches an impasse, what’s your best outside option? According to the PON, your BATNA is the measure by which you should judge any proposed agreement. A strong BATNA protects against unfavorable terms and strengthens your negotiation power.

Professor at Quinnipiac University School of Law Jennifer Gerarda Brown, in her chapter “Creativity and Problem-Solving” from The Negotiator’s Fieldbook (American Bar Association, 2006), offers techniques to enhance negotiation skills. One such exercise is called "mind mapping," which is a form of word association. In this technique, negotiators write down the problem they are facing and then add any related words that come to mind on the same piece of paper. Once the paper is filled with words, negotiators can draw lines to connect those that seem related. This method is designed to uncover potentially useful links between various aspects of a problem, provoking creative solutions to challenging issues.

Top 10 Books for Becoming a Stronger Negotiator?

Recommended by NES Professors

1. Getting to Yes: Negotiating Agreement Without Giving In Roger Fisher, William L. Ury, Bruce Patton
2. 3D Negotiation: Powerful Tools to Change the Game in Your Most Important Deals David A. Lax, James K. Sebenius
3. Thinking, Fast and Slow Daniel Kahneman
4. Games People Play: The Psychology of Human Relationships Eric Berne
5. The Strategy of Conflict Thomas Schelling
6. Influence: The Psychology of Persuasion Robert Cialdini
7. Emotional Intelligence: Why It Can Matter More Than IQ Daniel Goleman
8. Just Listen: Discover the Secret to Getting Through to Absolutely Anyone Mark Goulston
9. Never Split the Difference: Negotiating As If Your Life Depended On It Chris Voss
10. Why We Fight: The Roots of War and the Path to Peace Christopher Blattman