Negotiating from a single perspective

There are multiple vantage points – or perspectives – from which we can view any interaction (a.k.a. negotiation). The perspective we adopt determines what we see. So in order to see more – and thus learn and understand more – negotiators choose to adopt multiple perspectives.

But what happens when I fail to consider other peoples’ perspectives and only stick with my own? Well, unsurprisingly the options, solutions or recommendations I come up with tend to only cater to my problem and my needs.

And if you don’t like my solution then there is a high risk that I will assume my job should be to persuade you to accept my solution. And when that doesn’t work I might instead resort to using power to force you to accept my solution.

And then we clash, deadlock, and get stuck in a potentially perpetual battle. All because I didn’t consider your perspective, and thus I didn’t (couldn’t!) think of a solution that would actually work for you as well.

With that little snippet of theory, let’s see a clear example of it in action. The key phrase to look out for comes about 55 seconds into the video that a reader sent me today.

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A Jedi mind trick for creating more value

The participants in the executive program returned to the seminar room after having carried out a negotiation simulation with each other. The key focus of the negotiation had been to maximise value and the group of international senior managers and executives had performed quite well.

In the following debrief we discussed how we could have created even more value, and the group collectively identified quite a few additional options. Well done!

But then I put a very simple question to the group: “We’ve now pushed the limit of what we can achieve in the negotiation, so let us try something else. What if I now asked you to forget about the negotiation altogether, and instead simply treat the case you were given as an exercise in how to maximise value for the two parties involved?”

I was temporarily blinded by all the metaphorical light bulbs that simultaneously switched on in the room 🙂 . Creating dramatically more value suddenly became very easy – even trivial.

So what changed? The task was still the same, but the participants’ frame of mind had changed. When asked to merely solve a well-defined problem (i.e. “What would it take to maximise value for both parties”) we do precisely that – solve the problem. We know how to solve problems and we do it well!

In contrast, when we believe our task is to negotiate, chances are – ironically – that our brains start to run destructive processes that severely limit our ability to influence others or create value. The vast majority of us have flawed beliefs of how influence works, so when we attempt to influence we actually – unintentionally but effectively – sabotage the process instead.

So what is the Jedi mind trick I’m referring to in the title? “We are presently not in a negotiation… We are presently not in a negotiation… It is just a problem to be solved… We are presently not in a neg…” In other words, with most people we want to avoid associating the word “negotiation” with our current interaction.

Interestingly, when we cross paths with the minority of people who subscribe to value creation, win/win and systems maximisation, we actually want to do the opposite and encourage them to make the most of using their skills for everyone’s benefit. So here the mind trick then changes to:We are presently in a negotiation… Every interaction is a negotiation… We are presently in a neg…”

Ask… then ask again!

The real world is very complex, and yet physicists can reduce complex interactions between objects into simple diagrams and formulas. Similarly, human interaction is tremendously complex – and in this domain it is the negotiator who will reduce what goes on into almost trivial simplicity. But don’t be fooled; these insights are still very powerful!

Let me illustrate. In the last few weeks I have had three very similar conversations. And while these have involved more complexity than I will capture here, I can actually summarise the key parts of each dialogue in just a few sentences.

See if you can spot the pattern (which I’ve hopefully made abundantly obvious!)

Dialogue 1:
Obstacle: “You can’t return the product for cash. You can only exchange it.”
Negotiator: “Really?”
Obstacle: “Yes.”
Negotiator: “Really?”
Obstacle: “Ok, ok, you can get your money back.”

Dialogue 2:
Obstacle: “We will will allocate just over half the funds you expected.”
Negotiator: “Really?”
Obstacle: “Yes.”
Negotiator: “Really?”
Obstacle: “Ok, you’ll get all the funds you expected.”

Dialogue 3:
Obstacle: “I’m sorry, but the price for our services is now three times higher than what you paid last year.”
Negotiator: “Really?”
Obstacle: “Yes.”
Negotiator: “Really?”
Obstacle: “Yes.”
Negotiator: “Really?”
Obstacle: “Ok, you can continue paying what you paid last year.”

I have of course cut out all the irrelevant noise. What is left is the following – a challenge. Not in a confrontational way. Not a counter proposal. Not even articulated as a specific question. Merely an indication that I’m not quite ready to accept what the other party is proposing. And in each of the scenarios this approach gave me exactly what I wanted.

There is a common saying in negotiations circles that goes like this: “if you don’t ask the answer is always no”. Based on these three mini-dialogues I would like to add: “…and if the answer is no – ask again!”

Beware of the status negotiation

(This is a repost from Filip’s original blog)

In my upcoming book I discuss the idea that every negotiation (and interaction!) we have is actually made up of multiple parallel negotiations.

When I ask you ”What was that last negotiation about?”, the answer you give me will probably be what we call the formal topic of the negotiation. Now, if this were the only negotiation we needed to pay attention to then life would be very easy.

But human interaction is much more complex than that. Our formal topic will be polluted by a range of covert negotiations (or competitions!) about status, perceptions, intentions, understanding, trust, rapport, fairness, values, beliefs, and so on.

So let’s today look at one of these; the status negotiation. We all want status and recognition. But we make two flawed assumptions that often make the status negotiation impossible to resolve. One assumption is that we should have most status. The other is that we assume there is only one source of status.

The pattern can look something like this:

  • Person A: “I have 20 years experience in this area, so I know what I’m talking about.” (i.e.”I’m right because of my status!” )
  • Person B: “Well I have education, so I understand this in much more detail than a simple practitioner.”
  • Person C: “I have the most senior title, so the organisation has decided that my view is most important.”
  • Person D: “Yes, but I’m much older than all of you, and have life experience that you can’t begin understand.”
  • Person E: “You are all wrong. I’m clearly the most intelligent person in the room, so my view is obviously the most important.”
  • Persons A, B, C, D in unison: “No, I’m the most intelligent person in the room!”

Do our negotiations really look like this? YES… they do! But not on the surface. All of this goes on behind the scenes. Still, the results are readily visible, and with focused attention we can pick up on the signals in time.

Each party that does not feel that their status is acknowledged will resent the others. Left unresolved, this unmet need will predictably pollute the rest of the negotiation or interaction. It is not uncommon for a failed status negotiation to cause an otherwise successful negotiation to derail.

So what can we do instead? How about we deal with those flawed assumptions! Let’s first appreciate that there are countless sources of status. The more sources we have, the more flexibility we have to let the other party also get their status needs met. We need to take responsibility for this. Because if we put all our eggs in one basket and only rely on a single source of status (e.g. our title or rank) then our ego will do everything it can to protect that source of status. And we already know that having a sensitive ego is incompatible with being a skilled influencer or negotiator.

Let’s also acknowledge that the goal is not to feel appreciated at the expense of the other party. Rather the goal is to feel sufficiently appreciated. There is no competition here, so stop competing!

Let’s try this out:

“So you (Person B) have a PhD? Fantastic! I’m sure that your education together with my (Person A) experience in this area will enable us to arrive at even better outcomes than those we could each have achieved individually!”

Now wasn’t that the easiest thing in the world…?