The real benefit of negotiating

Most people assume that the benefits of negotiating = the concessions you extract. You benefit by the exact amount of the discount, raise, or additional dinner eaten by your kid.

One of the biggest benefits of negotiating, though, has nothing to do with concessions. You often benefit the most not from the concessions you extract but from the information you unexpectedly glean.

Based on experience and research alike, let me assure you that acting on this underappreciated benefit of negotiating rather than immediately accepting an unattractive fate can make life negotiable. Accordingly, let’s consider some of the most common and beneficial facts you’re likely to unexpectedly learn in a negotiation:

  1. Upcoming sale: While pushing for a better price, a vendor may well reveal that you can obtain it by simply holding your horses—for a month, or perhaps until Black Friday. That’s interesting, because the sale was already planned and generally available, so it doesn’t reflect a concession. Still, simply learning while negotiating surely benefits you personally.
  2. Untapped discount: Alternatively, you may well learn from a retailer—especially a small or local retailer—that they will charge you less if you pay by cash or check. Interesting, because the retailer didn’t make a concession—they simply informed you of a preexisting policy that, for whatever reason, had previously eluded your attention.
  3. Unwanted features: In the process of trying to negotiate down a peskily high-price, you may well learn that part of its peskiness is attributable to a fancy feature you never wanted and still don’t. A meaningless warranty, frivolous upgrade, unwanted add-on. Take that feature out of the mix and you suddenly have a manageable price. Again, no real concession on their part, especially if it was included not because of profit margins but because of faulty assumptions about your desires. But by stripping out whatever you don’t want, you just got the price you did.
  4. Unexpected sensitivity: Or, consider negotiations in your own organization. In the process of pushing for a particular objective—an exception, strategy, important procedural change—you may well learn of an odd, idiosyncratic sensitivity likely to stymie your objectives. Maybe some executive really objects to proposals that make an arch nemesis look good. Or maybe some other executive really objects to proposals he or she hasn’t reviewed first—even though he or she has never had any comment. You haven’t obtained any concessions from anyone. But in the process of negotiating, you’ve learned an odd idiosyncratic fact that would’ve otherwise sunk you.
  5. Underlying motive: Particularly but far from exclusively with kids, you may discover a hidden underlying motive. Perhaps the kid isn’t eating her lunch for reasons entirely unrelated to your hot buttons. Perhaps she’s just afraid of her upcoming flu shot. Now that you understand as much, can you perhaps nudge her toward nourishment by reminding her of the sticker and sucker awaiting her after the shot? No guarantees, but the point is that you haven’t extracted any concessions. You’ve simply addressed the real problem.

So when pondering whether to negotiate, don’t just ponder the likelihood of concessions. Ponder the likelihood of learning something new. Or, since you don’t know what you don’t know, perhaps ponder my assurance that there’s usually something you don’t—and should.

Making negotiations fun: Five lessons from the outliers who actually like them

Ask a person their favorite activities, and they’re not likely to say “negotiation.” Most of us dislike negotiation, and some utterly despise it.

But does it really have to be that way? Isn’t it at least conceivable to enjoy negotiation?

In my role as negotiation professor, I’ve had the pleasure of observing at least a few students who seem to genuinely enjoy negotiating, in the classroom and beyond. In hopes of helping the rest of us make our negotiation-filled lives more fun and negotiable at the same time, let me recount a few of their common characteristics.

People who enjoy negotiation tend to:

  1. Understand the worst they can do is the same. Many of us dread negotiation because we fear a phantom calamitous outcome. We imagine ourselves getting a salary reduction or a higher price on the car. People who enjoy negotiation know that’s not likely to happen. In the face of a respectful and reasonable request for something that genuinely matters, some counterparts will say no but few will retract their offers. And assuming your request is in fact respectful and reasonable, few will fault you for trying—some may even respect you that much more. People who enjoy negotiation know that the worst possible downside is often the status quo.
  2. Understand the other side needs them too. Many of us dread negotiation because we assume we’re the only one who needs something. But if we’re in a negotiation rather than a command-and-control relationship, we’re not! The car dealer needs our purchase and trade-in. The employer doesn’t want to interview additional candidates after choosing you. Even the cable company needs our business, sort of. Those who enjoy negotiation know that dependence runs both ways.
  3. Treat the negotiation more like a puzzle than a problem. Many of us dread negotiation because we hate dealing with interpersonal problems, and negotiations seem like yet more of those. People who enjoy negotiations don’t see them that way at all. They see negotiations as puzzles to be solved by two smart and motivated people. Sure, they recognize that those two people may not be entirely aligned, but they don’t confuse partial misalignment with total opposition.
  4. Think beyond money. Many people hate negotiation because they fixate on money—and specifically on the risk of losing it, e.g., by paying too much for that car. As suggested in my book, The Bartering Mindset, those who enjoy negotiation know that money is typically one of several issues to be negotiated—and often the least negotiable. So they don’t shy away from the ever-important monetary issues, but they also don’t hesitate to consider the many non-monetary issues that are often substantially more malleable. With the car dealer, for example, they’re talking not just about price, but financing, floor mats, servicing, the value of their trade in, etc., etc., etc.
  5. Don’t knock themselves for trying. Many of us hate negotiation because we’re mortified at the prospect of failure. We can’t stomach the prospect of asking for something, getting denied, and walking sheepishly out the door. The best negotiators know they won’t always succeed—and they don’t expect to. If they try their best to no avail, they learn from whatever might have happened and congratulate themselves for trying, knowing they won’t have to wake up at 4 am questioning the salary they “could have had” if they’d asked. And sometimes they even high-five themselves vigorously for the failure, knowing as they do that “no” was actually the right answer in light of the better deal they just got elsewhere.

So consistent are these assumptions that I can usually identify the people who verbalize them as the outliers who enjoy negotiation. Here’s hoping the rest of us can learn a few lessons from the outliers that make negotiations—if not fun—at least negotiable.

Five reputations no negotiator wants

Many of our most important negotiations happen at work. We negotiate job offers, reconcile competing strategies, allocate limited funds. So it would really behoove us to understand the drivers of our success in such situations—the factors that will determine whether we walk away happy or sad.

If I asked you to name just one such factor, what would you say?

Chances are, you’d name a negotiation strategy. Aggressively insist on your demands! Persuasively plead your case! Creatively seek a solution! Or some other behavior to display in the negotiation itself.

While none of these answers is inherently wrong, I’d suggest that your success in a critical organizational negotiation is often determined long before the negotiation itself—in the many less-critical negotiations and non-negotiation situations that crystallize your reputation. Critical negotiations become substantially more negotiable, in other words, when you’ve developed the right reputation beforehand.

It’s easier to see what the right reputation is if you first consider the opposite—the type of reputation you really don’t want to bring into a critical organizational negotiation. At that point, you really don’t want to be known as the:

  1. Constant negotiator: We all know someone who negotiates every flipping, last thing. Why do I only get 10 pencils? I need at least 12! Do we really have to go Applebee’s? I’m really hankering for the Olive Garden. Constant negotiator is not the type of reputation you want to carry into your critical organizational negotiations, as everyone will think this important negotiations is just another in your never-ending string of demands.
  2. Selfish negotiator: We all know someone who, though they don’t necessarily negotiate everything, they approach every negotiation (and non-negotiation) with exactly one objective: themself. Would it cost three jobs to guarantee my 12-pencil minimum at all times? No matter, as long as I get my pencils. You obviously don’t want to develop this reputation either, as everyone will come into the critical negotiation ready for battle.
  3. Pushover negotiator: Conversely, kind of, we all know someone who never ever sticks up for themself. Want to reduce my pencil allocation by two pencils a month, ultimately leaving me with pens alone? No matter, I’ll just buy some pencils myself. Not a good idea to develop this reputation either, as everyone will approach the critical negotiation with the demeanor of Jaws in the presence of a bleeding beluga.
  4. Reactive negotiator: We all know someone who, despite the “manager” in their title, sits around and lets the world conquer them. They seem utterly incapable of steering the course of events, and they often respond bitterly when the world steers them. Oftentimes, they just fade into the background. Not a good idea to develop this reputation either, as someone else in the critical negotiation will steer the negotiation in their own direction before you have the chance to, well, react.
  5. Incoherent negotiator: We all know someone who can never seem to collect their thoughts. Their statements are jumbled, and their requests tend toward the internally inconsistent. Thought 1: We should all get more pencils! Thought 2: Management should really cut costs! Developing such a reputation may well keep the other party on their toes. But you’re unlikely to get what you want from a critical organizational negotiation, for the simple reason that neither you nor they has a clue what that is.

So if you shouldn’t cultivate any of these reputations before a critical negotiation, what type of reputation should you to develop? A reputation as someone who confidently negotiates when they have to, but only when they have to. And when they do, as someone who confidently or even insistently sticks up for their true needs but also gives in on their non-needs, particularly when the other side truly needs the opposite. And someone who doesn’t react to negotiations as they happen but leads the way, typically by initiating and coherently guiding the discussion.

Do all of that in the small situations before your critical organizational negotiation and, dollars to donuts, you’ll walk away with the critical outcome.

Negotiating by reminding: “We’re playing for the same team!”

Two people who work for the same organization should theoretically have the same goals. Some even define an organization that way—as a set of interdependent people working toward a set of common objectives. So when two people from the same organization meet in the same negotiation—a discussion about how to allocate resources, carve up a project, tackle a difficult problem—they might have differing information or perspectives, but they shouldn’t have differing ends.

Sadly, many people who work in organizations quickly realize that at least some of their colleagues—how shall I put this delicately—sure seem to. At least the occasional organizational colleague appears to bring dramatically different objectives to the same intra-organizational negotiation.

That being the case, it’s important to consider our response carefully. In particular, should we meet such colleagues with the same competitive response we’d deliver to a difficult outsider? Or does our common organizational membership call for a different approach? My experience teaching negotiators and observing such negotiations, coupled with insights from negotiation research, argue for the latter. In particular, I’ve observed that spending less time “negotiating” with difficult insiders and more time convincing or reminding them that you’re playing for the same team can make life negotiable.

Want to see so for yourself? Consider tabling your “negotiation” tactics and responding to a difficult insider by:

  1. Reminding them of the common goal: Sometimes people in organizations simply forget they’re working for the same organization. They get so hung up on their departmental or personal objectives that they forget the common source of their paychecks. If you encounter such a person, you might simply remind them that all of us here at Acme Corp., at some level, want to deliver the best widget. No guarantees this small step will move their needle—for many, it won’t—but occasionally a small nudge is all that’s needed to help people see and shed their more parochial objectives.
  2. Invoking a common enemy: If you can’t identify a common objective, you might at least happen upon a common “enemy.” Research suggests that even when people can’t rally around a common cause, they can sometimes rally around a common dislike, e.g., for a competitor their company consistently wants to best in the marketplace. This approach, while significantly less tasteful than the first, is probably better than not getting back on the same team at all.
  3. Identifying isolated points of agreement: If you can’t find a common goal or even a common enemy, well, your task is considerably harder. Still, you might be able to find an isolated point of agreement on a small issue, or at least on the process. Sure, you can’t understand why they’re focusing on the quarterly vs. the long-term implications of their budgetary recommendations, but can you perhaps identify a small budget-worthy project with both short- and long-term potential? Or at least agree that the budgeting process should be more data-driven and transparent? If Kennedy and Khrushchev could agree they didn’t want nuclear war—if Trump and Kim Jong-un could agree they wanted a photo op—I’ll bet you can. If so, and even if the agreement has little to do with the negotiation at hand, you might at least establish enough team spirit to tackle the negotiation later.

So here’s the point: The next time you negotiate with an organizational colleague with a vastly different objective, consider tabling the tendency to strong-arm them into submission. Instead, spend more time—even most of your time—reminding or convincing them that you play for the same team. Do that, and you’ll probably come up with a solution that will make the coach substantially prouder.

Offers you can’t refuse

Employees in organizations often get offers they can’t refuse. As in The Godfather, though, it’s not that the offers are enticing. It’s that the employees who receive them literally can’t refuse without suffering irreparable damage. They’d better accept that project assignment or stare down a pink slip. They’d better support that strategy or watch their career wither.

Since the offer recipient can’t say anything but yes, these situations can’t be negotiations, right? Well, sort of. Negotiation research as well as my own experience studying and working in organizations hints at a few strategies for making even these non-negotiable situations negotiable:

  1. Discuss the how: The fact that you can’t negotiate whether to support a particular strategy, for example, does not imply that you can’t negotiate how to do it. Would you be more comfortable working behind the scenes on the implementation details associated with that strategy than publicly proclaiming your support at town-halls? Or, if you have to proclaim your support, would you simply prefer to do so after filing your quarterly numbers and watching your workload level off? Even if you can’t negotiate the what, you can often negotiate the how.
  2. Ask for something different: The fact you can’t negotiate a particular offer does not imply that you can’t negotiate anything at all. Suppose you’ve really been wanting a better cubicle and then comes an offer you can’t refuse: take on a new project! But wait: Couldn’t this be your golden opportunity to accept the project even while requesting the cubicle? You wouldn’t necessarily have to do both at exactly the same time, but you could! What if the new cubicle also positioned you closer to the people you’ll work with on the project?
  3. Ask for something different in the future: Even if there’s nothing else to negotiate right now—or even if negotiating right now would be inappropriate—you can surely think of a few things you’ll need to negotiate in the future. Perhaps you know you’ll eventually need to request a raise, a virtual work arrangement, or the ability to reduce (or increase) your travel? At the time of the non-refusable offer, why not make a specific note (or at least a mental note) linking the offer to your future need? That’s not to say it will be necessary or appropriate to verbally reference the non-refusable offer when making the future request. It’s just to suggest that people who make requests (even non-refusable requests) of you right now may be more psychologically inclined to hear requests from you in the future.

Luckily, most of us don’t deal with Godfather-style gangsters at work. But many of us do deal with offers that, for a host of more mundane reasons, we can’t realistically refuse. Here’s hoping that seeing the negotiable elements of non-negotiable offers can make life, in general, more negotiable.

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!

Can we all merge later?

If you’re traumatized by traffic, the following claim may strike you as controversial if not downright sacrilegious. So let me apologize in advance for any offense. But then let me direct you to the common situation in which one of two lanes on your side of the roadway ends, necessitating a merge into the other. And finally, let me claim that waiting a bit longer to merge is a win-win driving strategy that can make everyone’s life more negotiable.

Much like the drivers currently taking offense, I’m generally of the mind that merging as soon as possible is the best and most courteous thing to do. If you saw me on a road in a lane about to end, you’d quickly see me merging. And then, looking a little closer inside my window, you’d see me taking a very dim view of the guy in the huge pickup truck—and it’s always a guy in a huge pickup truck—who waits till the very last minute to merge and inevitably cuts everyone off. So rest assured that the views expressed here do not reflect some odd idiosyncratic opposition to merging—or some secret life as the guy in the pickup truck.

Instead they reflect a realization borne of a recent construction project. You see, there’s a road in my area in which the right lane gradually comes to an end, necessitating an eventual merge into the left. Until recently, this merge has been unremarkable, with courteous drivers weaving together naturally and continuing on their merry way. But then came construction on another area road that forced everybody and their brother onto this one. And then I observed the tendency of approximately 90% of drivers to do what I do—to get into the left lane as soon as humanly possible, leaving the left lane totally jammed and the right lane free of all traffic except the occasional pickup truck.

And then I got to thinking: Is this really the best outcome for all of us do-gooders on the left? Here we are, just twiddling our thumbs in frustration. And there we are, watching the pickup guy whizz by on the right, now boiling mad. Wouldn’t it be better for some of us to loosen up our do-gooding by staying in the right lane a little bit longer, thereby reducing our own wait time? And here’s the critical part: Wouldn’t that also be better for the people who were in the left lane already or are dead-set on remaining do-gooders and merging right away? With our departure, their wait time would certainly go down too. And here’s the best part of all: If enough do-gooders were to merge a bit later, wouldn’t that gleefully stymie the devious designs of the pickup guy, who planned to leave all us do-gooders in the dust? In short, isn’t it a win-win (and possibly a win-win-win) for some of us to merge later?

Turns out, my realization is reasonable in the eyes of the construction company, which subsequently installed a sign urging people to “use both lanes” (including the one that ends). So, much as it pains my do-gooder inclinations to say so, I suspect that a few of us merging a bit later—not dangerously late and not just the guy in the pickup truck—would produce a win-win outcome for all of us. A better use of all available roadway, just like a better use of all available resources in any negotiation, typically leads to a better outcome for everyone.