Anchoring indiscriminately: An ill-advised alternative to not offering at all

People commonly have one of two intuitions about whether to make the first offer in a negotiation. Many people’s intuition is simple: Don’t. Wait to hear what the other side says and try to learn from it. While appropriate in certain situations, this approach has major problems that I and others have detailed before.

But today, let’s explore the other common intuition about first offers. The more brazen among us tend to assume the opposite: Always move first. Always drop an aggressive anchor that will force the other side to play on your home turf. To that point, haven’t we all worked with someone who anchors indiscriminately on everything—who always suggests allocating themself the most staff, biggest budget, or smallest amount of work?

We’ve all worked with someone like that.

And so we should all know that this approach is just as ill-advised as the first—all but certain to make life non-negotiable. Since many people haven’t gotten the memo, though, let’s consider a few serious downsides of this strategy in the workplace. To all those who consider anchoring indiscriminately a wise tactic, consider the risks that:

  1. You’ll develop a reputation: Perhaps the biggest risk of anchoring indiscriminately is that everyone will associate your name with the tactic. When I mention the person who asks for the most staff, biggest budget, or least work, you’ll personally pop into everyone’s brain. And if the image sticks in their mind, they’ll probably start…
  2. Using the same tactic on you: If it was just you anchoring indiscriminately, the tactic might work. But there’s a whole world of savvy or at least cynical and battle-scarred negotiators who, observing you anchoring indiscriminately, might start anchoring just as indiscriminately against you in all future confrontations. And an ongoing war of indiscriminate anchors is not gonna end well. Alternatively…
  3. They’ll walk away: A deal anchored around your hopes and desires is great as long as it happens. But research suggests it may not if the recipient is offended by your offer. Instead, they’ll get mad and march away. This is not a justification for not moving first in an isolated situation, but it’s a consideration when considering whether to anchor indiscriminately, as those who detect the tactic are likely to get offended more easily and often.
  4. You’ll have to live with yourself: If you happen to work at a particularly pliable organization, you might get lucky and find others assenting to all your indiscriminate requests. But then you’ll have to live with an accumulating mass of guilt associated with a series of unnecessary requests, if not a groundswell of derision from your colleagues.
  5. You’ll lose touch with your real priorities: Less appreciated but no less important is the risk that you’ll get so fixated on anchoring indiscriminately that you’ll forget to consider your real priorities. In the process of dropping anchors wherever you can—and often it’s the quantifiable stuff like staff numbers, dollar amounts, and time commitments—you’ll forget to consider whether those issues matter most in a given situation. And since the qualitative stuff often matters more, you’ll miss the opportunity to anchor where it counts.

So if both anchoring indiscriminately and avoiding anchors entirely are problematic, what would I advise? Choosing your anchors carefully: identifying the negotiations that matter most and the issues that matter most within them, and anchoring unabashedly on those. But also identifying the less critical negotiations and less consequential issues and demonstrating the willingness to be a team player. Here’s to anchoring intelligently rather than indiscriminately!

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