Removing the need for negotiation

“You pay $150 dolla!!”
“No, I’m not paying anything!”
“Your fault, you pay $150 dolla!”
“No, it was your fault. I’m not paying anything!”

I move over to the curb as my friend and an enraged taxi driver continue their dialogue in the middle of the street. Cars on either side are incessantly using their car horns to signal their frustration with the gridlock. Some try to slowly squeeze past in the small gap that is not taken up by the taxis. Meanwhile the line of cars is rapidly growing in length.

“You open door, you pay me $150 dolla!”
“Forget it. You’re the one who overtook us!

As my friend had exited our taxi, another taxi had overtaken us, resulting in a small collision. While our taxi was scratch free (well, no additional scratches from the collision), the side mirror assembly of the other car was now in pieces on the ground.

“You pay me $150 dolla!”
“Hey, there is no way that mirror costs $150 dollars!”

This move was a mistake. By engaging in the conversation about cost, my friend could be perceived as accepting responsibility for the accident and now the question is reduced to “how much will he pay”. The taxi driver quickly picked up on this.

“Ok, you pay me $120 dolla!”

How are they negotiating now? Yes, old-style bargaining over money. This battle of attrition continued for about 10 minutes. So please picture 10 minutes of standing in the middle of the road, emotions running high, and with cars passing within centimetres, in the dusty, hot and humid air of South East Asia.

Eventually my friend turns silent, disengages from the dialogue, walks up to the damaged taxi, leans forward, and picks up the pieces of the side mirror. While he slowly inspects the mirror, the taxi driver continues their negotiation:

“70 dolla. You pay me 70 dolla!”

And then we all hear a *CLICK*. Was that… Could it be… Yes, as I look over I see that my friend have successfully put the side-mirror back together.

“But it is not working. You pay me $70 dolla!”
“How do you know it’s not working? Try it!”

The taxi driver reluctantly tries the electric mirror control. And voila, it’s all working and no visible scratches!

What begun as a clumsy bargaining process was resolved using masterful negotiation. My friend had snapped out of the traditional “I’m right and you’re wrong” or “I want XYZ from you” mentality, and instead removed the need to have a negotiation altogether.

In our book we named this technique preventative options – options (or solutions) that allow us to prevent the need to have particularly difficult negotiations. While our example here was quite trivial, this technique becomes a very powerful option for values-based negotiations where parties will never change their mind or accept being “wrong” (e.g. on abortion, religion, global warming, gun control, etc).

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…?