Negotiation is a part of Alternative Dispute Resolution (ADR) and is one of the most common and straightforward form of ADR. It is a process where parties and their legal representatives seek to resolve the dispute by reaching an agreement between them. It tends to be more cost effective than or a protracted dispute. [1] It is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage or to craft outcomes to satisfy various interests. [2] However, for a successful negotiation, laying a solid foundation is essential and hence one must be aware of the following mistakes and ought to avoid them:
TOTALLY FOCUSING ON ONE’S OWN INTERESTS: It is important to recognize the needs and priorities of the opposite party as it would lead to better outcomes for both sides and act as a catalyst in the negotiating process, which would lead to a win-win situation rather than a win-lose situation. People tend to make this mistake where they become too self-centered with their own needs and not pay enough attention to the needs and perspective of the opposite party. [3]
COMPETING INSTEAD OF COLLABORATING: It is a fact that parties while negotiating mostly focus on competing with each other rather than potentially collaborating with each other and building trust through openness and transparency and come to a solution that best suits both parties. Focusing on creating and claiming value should be the way for more effective negotiation, as this will allow you to identify potential tradeoffs. Everyone should look for a win-win solutions while negotiating for better result. [4]
ACCEPTING A QUICK COMPROMISE TO GET THINGS DONE: People tend to hasten the negotiation process in order to get over with the whole thing quickly. In the process of it, the parties tend to accept a quick compromise which they often end up regretting later. Hence, it is important to be patient throughout the negotiation process and do not allow yourself to become desperate. [5]
ALLOWING YOUR EMOTIONS TO GET IN THE WAY: It is a common tendency that negotiators tend to lose their temper and as a result, the negotiation takes an ugly turn. Anger is most likely to beget anger on both sides of the table. Apart from that, negotiators are susceptible to emotional biases that can prevent them from doing their best. Strong emotions prevent the parties from making rational decisions, leading to negotiation mistakes. It is important to take control of your emotions and anger during negotiation, to be able to negotiate a deal successfully and effortlessly. [6]
NEGLECTING THE OPPOSITE PARTY’S NEEDS AND PERSPECTIVE: People while negotiating tend to be self-centered and revolve around their own interest which is one of the most fatal mistakes one can make while negotiating. Negotiation is a two-way street and it is important to hear to the other side’s point of view too. It is important to under the reasoning behind their reasoning rather than simply asking what the other person is hoping to gain. [7]
USING AGGRESSIVE AND ACCUSATORY LANGUAGE: How a person communicates during a negotiation can divulge a lot about a person’s willingness to cooperate. People should avoid using the pronoun “I” and instead use “We” in a statement which emphasizing the willingness to work together and use empathetic phrases to acknowledge the feelings of the other party. [8]
RUSHING THE PROCESS: It is one of the most common mistakes that people rush into a negotiation without thoroughly preparing. A person might be under the notion that they have prepared thoroughly about what they want to get out of the deal, but that is one of the greatest blunders ever. It is crucial to ample time to analyze several aspects of negotiation carefully. It is needed that a person commits to their bargaining strategy and see it through to the very end. [9]
GIVING ULTIMATUMS IMMEDIATELY: Giving ultimatums immediately while negotiating can be a bad start for any negotiation and it you get off on the wrong foot. It is always advised to avoid giving ultimatums as much as possible, if not left with any choice, it should be the last resort. As negotiations can be contentious, sometimes a person is presented with ultimatums that might push one to decide whether to take the deal or face impending consequences. It is advised to exercise patience in such scenarios which can lead to a possibility of a more favorable outcome down the line. [10]
LOSING SIGHT OF YOUR VALUES: It is often witnessed that people tend to lose sight of their own values and their original goal while negotiating a deal for a long time. Every decision a person makes should be informed by both their values and objectives a person hopes to accomplish. A person should have a clear and detailed picture of what they and the other person wants and should firmly hold their initial position in order to not lose sight of their values.
NEGOTIATING AS MERELY BARGAINING OVER THE PRICE: It is always advised to consider negotiation as an opportunity for new business deals and relationships, and not just a process of bargaining over the price and getting over with it. Negotiators should have a pro-active approach towards the process and always aim for a win-win situation rather than feeding their own interests.
Apart from that, five mistakes to avoid while preparing for negotiation as suggested by Mr. Deepak Malhotra are:
- Having too few people/perspectives: Having too few people or perspective in a team while preparing for negotiation is a great drawback as it results in lack of diverse arguments or reasoning.
- Having too much focus on our own interest: Having too much focus on what we want and the arguments we are going to make in order to have the concede to our demands and not paying enough attention to what are the needs and wants of the other party is one of the biggest mistakes. Ignoring what they want, what are the arguments they are going to make or what they might say that might make us defenseless can be one of the biggest blunders while negotiating a deal.
- Not thinking enough about the constraints on their side: It is important to consider the constraints of the other party like what are the things they can and cannot do, what are the mistakes we might make because we assume they have flexibility in certain areas, what are the opportunities we might lose out on because we do not realize they have more flexibility in other areas might be a great drawback.
- Focusing too much on substance and not enough on process: Having too much focus on give-and-take aspect and not on the entire process is a big mistake. Focusing mostly on substances like: what is our offer going to be; how are we going to make the offer; how are we going to respond to their offer and not giving much attention to what is going to happen beyond the table, in the whole process, often leads to failing in addressing important questions in the long process like: how should we sequence different aspects of this negotiation; what are the milestones we should be looking at; should we have a framework agreement before we get into one element of this. Such trivial questions play an important role in negotiating a successful deal which people often tend to overlook.
- Zooming out: Again, people tend to focus too much on the substance and not on the entire process which collaterally brings out the mistake that people do not think enough about how this particular negotiation is going to aid them to fulfil their broader objectives as an organization, or fails to address the question as to how negotiation is helping them in order to pursue their broader strategy.
[1] PORTER DODSON, https://www.porterdodson.co.uk/alternative-dispute-resolution-solicitors, (last visited Feb 13, 2022).
[2] Ranganathvg, Negotiation-Mode Of Alternative Dispute Resolution, LEGALSERVICEINDIA, (Feb 13, 2022, 7:08 PM), http://www.legalservicesindia.com/article/245/Negotiation-Mode-Of-Alternative-Dispute-Resolution.html#:~:text=Negotiation%20is%20a%20dialogue%20intended,method%20of%20alternative%20dispute%20resolution.
[3] Martin Zwilling, 8 Common Business Negotiation Mistakes–and How to Avoid Them, INC, (Feb 12, 2022, 10:18 PM), https://www.inc.com/martin-zwilling/8-common-business-negotiation-mistakes-and-how-to-avoid-them.html.
[4] THOMAS, https://www.thomasnet.com/articles/other/negotiation-mistakes-pitfalls/, (last visited 10 Feb, 2022).
[5] Inc, Supra.
[6] Katie Shonk, 5 Common Negotiation Mistakes and How You Can Avoid Them, PON.HARVARD, (Feb 12, 2022, 12:26 PM), https://online.hbs.edu/blog/post/negotiation-strategies-what-not-to-do.
[7] Matt Gavin, BAD NEGOTIATION: 9 MISTAKES TO AVOID AT THE BARGAINING TABLE, HARVARD BUSINESS SCHOOL, (Feb 13, 2022, 6:01 PM), https://www.google.com/amp/s/www.pon.harvard.edu/daily/negotiation-skills-daily/5-common-negotiation-mistakes-and-how-you-can-avoid-them/%3famp.
[8] Ibid.
[9] Ibid.
[10] Ibid.
YLCC would like to thank Riya Singh for her valuable insights in this article.
