4.3 Overcoming Challenges
Learning Objective
3. Discuss potential challenges and develop strategies to overcome them
When we think of the nature of negotiations, there is inherent conflict between the parties. One party’s wants and needs are likely to some degree conflict with those of the other party, so it is only natural that we will encounter some challenges along the way. While there may be various unique challenges that we might experience during a negotiation, they tend to generally fall under two categories: miscommunication and inability to reach an agreement. Again, think of our dance analogy. The slightest miscommunication could lead to a big mistake in the dance, which could have consequences for the entire performance. Similarly, if two partners cannot agree on a dance step or a particular choice of music, the performance will not happen.
An important strategy to consider when planning for our negotiation is how we can create value for both parties so that we can find a mutually beneficial solution.
It is important to create value in a negotiation, and this may mean finding a creative win-win situation for all parties to agree to. Or if a win-win cannot be accomplished, then perhaps, at a minimum, create a solution that might allow both parties to move forward, even if slightly after the negotiation process. Creating value means that you can show the opposition why a certain path is good for both parties.
Integrative bargaining is another strategy that helps you create value to reach a win-win resolution. Integrative bargaining looks for the best solution for both sides, and by showing the opposition the value, they may be more likely to agree to a resolution. For example, in a real estate negotiation, one side might offer a slightly higher price in exchange for additional features they know the other side wants. By showing that added value and understanding wants and needs, you can work together to accomplish a solution that works well for all sides.
During your planning, think about why the other person would want to accept the deal. People aren’t likely to accept a deal that doesn’t offer any benefit to them. Help them meet their own goals while you achieve yours. Integrative outcomes depend on having good listening skills, and if you are thinking only about your own needs, you may miss out on important opportunities. Remember that a good business relationship can only be created and maintained if both parties get a fair deal.
Any strategy we use will have some risk associated with it, just like every dance move carries a risk – we might damage the relationship with the other party or lose the deal entirely. However, the more that we can plan and strategize for our negotiation, the more likely we are to overcome these challenges through the negotiation process.
Tips for Negotiation Success
- Focus on agreement first. If you reach an impasse during negotiations, sometimes the best recourse is to agree that you disagree on those topics and then focus only on the ones that you can reach an agreement on. Summarize what you’ve agreed on so that everyone feels like they’re agreeing, and leave out the points you don’t agree on. Then, take up those issues again in a different context, such as over dinner or coffee. Dealing with those issues separately may help the negotiation process.
- Be patient. If you don’t have a deadline by which an agreement needs to be reached, use that flexibility to your advantage. The other party may be forced by circumstances to agree to your terms, so if you can be patient, you may be able to get the best deal.
- Whose reality? During negotiations, each side is presenting their case—their version of reality. Whose version of reality will prevail? Leigh Steinberg offers this example from the NFL when he was negotiating the salary of Warren Moon. Moon was 41 years old. That was a fact. Did that mean he was hanging on by a thread and lucky to be employed in the first place? “Should he be grateful for any money that the team pays him?” Steinberg posed, “Or is he a quarterback who was among the league leaders in completions and attempts last year? Is he a team leader who took a previously moribund group of players, united them, and helped them have the best record that they’ve had in recent years?” All those facts are true, and negotiation brings the relevant facts to the forefront and argues their merit.
- Deadlines. Research shows that negotiators are more likely to strike a deal by making more concessions and thinking more creatively as deadlines loom than at any other time in the negotiation process.
- Be comfortable with silence. After you have made an offer, allow the other party to respond. Many people become uncomfortable with silence and feel they need to say something. Wait and listen instead.
“Study Guide” from BUS641: Strategic Negotiations and Conflict Management from Saylor Academy is licensed under a Creative Commons Attribution 3.0 Unported license, except where otherwise noted.
“10.5 Negotiations” from Fundamentals of Leadership by Leah Sheppard is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.
“Tips for Negotiation Success” Adapted from information in Stuhlmancher, A. F., Gillespie, T. L., & Champagne, M. V (1998). “The impact of time pressure in negotiation: A meta-analysis”. International Journal of Conflict Management, 9,97-116; Webber, A. (1998, October). “How to get them to show you the money”. Fast Company. Retrieved November 13, 2008 from https://www.fastcompany.com/35462/how-get-them-show-you-money. Used for education purposes under fair dealing.
