Wednesday, December 31, 2014

5 Fatal Negotiation Mistakes



Many people think of negotiation as a formal process, but negotiation actually takes place every day. Task-oriented conversations, for example, are usually a form of negotiation. Regardless of whether your negotiation is formal or informal, people will generally make the same types of mistakes. These mistakes arise from inherent human characteristics and are usually adverse to everyone’s interests.

Below are the five most common negotiation mistakes that I have seen over the years that I have been training and consulting in this field.

“Me vs. You”
Humans assume that they must fight over assets to acquire them, and that mentality applies in negotiations as well. This type of thinking turns negotiations into a competition. Competitive negotiation assumes that each side is trying to defeat the other party and gain the most for themselves. This mentality leads to inefficiencies and harms professional relationships.

Bad Faith
You should never negotiate in bad faith. The rationale for this concept is not based on religious beliefs or karma; instead, you should negotiate in good faith because negotiating in bad faith will eventually cause you to remove yourself from the situation as reality will serve as a mirror reflecting your unethical behavior. On top of that, your reputation will precede you and ruin any attempts at negotiation.

Engaging in One-Dimensional Negotiations
When you are only focused on one item in the negotiation, you are stuck in one-dimensional negotiation. Negotiating on one item – usually money - is likely to cause dead ends or extensive compromises. One-dimensional negotiation often indicates that the negotiation is still on a positional-competitive level instead of an interest-cooperative level.

Instead, you should increase the number of factors on the able by engaging in multi-dimensional negotiations. This type of negotiation requires that you ask the Why question: Why does each party want a particular item or outcome? When used properly, this question opens doors to effective negotiations.

Sticking to Your Guns
If all of your needs, interests, and constraint were addressed in the negotiation, but they are addressed in a way that you had not envisioned, does that mean you compromised? I am disappointed in the number of people in my workshops that would answer yes. They assume that any change in their position is a compromise. Being flexible does not always mean that you compromised. Being able to ask the Why question, you open the door to a better articulation of your own point of view, enabling you to define your point of view in a way that enables collaborative solutions.

Failing to Properly Prepare
Perhaps the most obvious mistake is failing to properly prepare for the negotiation. Engage in “dress rehearsals” to mentally prepare for the negotiation. Although this may be seem useless because the practice is not “real,” this extra preparation is crucial! When you confront the other side for real, it'll be the second time you've negotiated with hi… this extra first time would make a world of a difference.

The number of mistakes that people make in negotiations is much larger than five. However, being aware of how to negotiate, being properly trained, and avoiding the above mistakes will significantly improve your negotiation abilities in the future.

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