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NEGOTIATION STRATEGY 4

Dealing with a Spoiler? Negotiate Around the Problem

Sometimes the best way to deal with obstinate negotiators is to bypass them completely. Here’s how to execute an effective workaround.

BY ROBERT C. BORDONE

NEGOTIATION DYNAMICS 7

Taking BATNA to the Next Level

By enhancing your best alternative to a negotiated agreement, you can gain a critical advantage at the table.

BY GUHAN SUBRAMANIAN

ACROSS THE TABLE 9

When Dividing the Pie, Smart Negotiators Get Creative

Don’t settle for uninspired compromises. Find ways to modify and expand resources to achieve more value.

BY DEBORAH M. KOLB AND PETER J. CARNEVALE

RESEARCH SUMMARIES 12

The Heat of the Moment

Do Attitudes Influence Results?

C O M M U N I C A T I O N

Negotiating Differences: How

Contrasting Styles Affect Outcomes

Not everyone bargains the same way. By becoming

attuned to various social motives, you can adapt

your own approach for the better.

B Y L A U R I E R . W E I N G A R T

H O W W O U L D Y O U D E S C R I B E your negotiating

style? Are you a cooperative negotiator who

focuses on crafting agreements that benefit

everyone, or do you actively compete to get a better

deal than your counterpart? Perhaps you follow a

third route, concentrating only on maximizing

your own outcomes with little concern for how the

other side performs.

In any given negotiation, your style has a stable compo-

nent that comes from your disposition and personality; continued on page 2

some people are naturally more cooperative than others,

for instance. Yet your style will also fluctuate depending on

the situation and the person across the table. For example,

you’re more likely to focus on maximizing joint gain when

you’re negotiating a joint venture with a trusted colleague,

than when you’re battling with other department heads

over the annual budget.

What happens when negotiators with different styles—

or those with similar styles, for that matter—meet at the

bargaining table? Are certain style combinations more

desirable than others? Should you try to adapt your style to

each negotiation? This article addresses these and other

commonly asked questions about negotiation style and, in

particular, illuminates the consequences of using coopera-

tive versus more self-interested strategies.

“What type of negotiator am I?” Differences in social motives, or one’s preference for certain

types of outcomes in interactions with others, affect how

individuals approach negotiation. Psychologists have iden-

tified four basic types of social motives that drive human

behavior in competitive situations such as negotiation:

1. Individualists are motivated to maximize their

own outcomes without concern for the out-

comes of others. About half of U.S. negotiators

studied (typically students and businesspeople)

have an individualistic orientation, making this

the most common group.

2. Cooperators, comprising approximately 25% to

35% of U.S. study participants, are motivated to

I N S I D E

Negotiation and Decision-Making Strategies That Deliver Results

A Newsletter Published by

the Program on Negotiation

at Harvard Law School

Volume 10

Number 1

January 2007

maximize both their own and other parties’

outcomes and to ensure that gains are fairly

distributed.

3. Competitives, comprising about 5% to 10% of

U.S. study participants, prefer outcomes that

maximize the difference between their own and

others’ outcomes. They want to win—and by a

wide margin. As a result, their behavior tends to

be the most self-serving, and their lack of trust

makes joint problem solving difficult.

4. Altruists seek to maximize the other party’s out-

come without concern for their own. Altruists

are difficult to find in today’s business world, so

little research has been done on this motive in

negotiation contexts.

Because relatively few people fall into the latter two cate-

gories, most of the negotiation literature has focused on indi-

vidualists and cooperators; this article will as well. Carsten De

Dreu of the University of Amsterdam, Seungwoo Kwon of

Korea University, and I have found that individualists engage

in more value-claiming behavior than do cooperators;

specifically, they are more likely than cooperators to make

threats (within limits), to argue and substantiate their posi-

tions, and to make single-issue offers. Cooperators are more

likely than individualists to engage in value-creating strate-

gies such as providing information, asking questions, gaining

insight into the other party, and making multi-issue offers

and tradeoffs. However, cooperators sometimes act competi-

tively, just as individualists sometimes cooperate. As I will

explain, your counterpart’s approach can influence your own

choice of strategy significantly.

“What type of negotiator should I be?” Should a negotiator focus on maximizing her own out-

comes, or should she take a more cooperative approach?

Cooperative negotiators are more likely than hard bar-

gainers to discover creative solutions that expand the pie of

resources for both sides, as Catherine H. Tinsley and Kath-

leen O’Connor concluded in their December 2006 Negoti-

ation article, “Want the Best Deal Possible? Cultivate a

Cooperative Reputation.” Furthermore, those who engage

in cooperative strategies report higher satisfaction with the

negotiation process and its outcomes than do more self-

interested or competitive negotiators—and they build

strong business relationships as a result.

Cooperators are also more effective than individualists

at using value-creating strategies to improve their own

outcomes, my research with Mary Kern of Baruch College

and Jeanne Brett of Northwestern University has shown.

Why might this be true? It could be that cooperators

appear more sincere than individualists when working to

create value.

Despite the proven benefits of cooperative behavior, many

negotiators fail to engage fully in the process of maximizing

joint gain. Some don’t gravitate naturally toward strategies

aimed at meeting both sides’ interests. Others worry that

cooperation leaves them vulnerable to exploitation.

It’s tempting to draw conclusions about the relative

advantages and disadvantages of particular social motives.

Yet even if you were to change your approach, style differ-

ences would continue to crop up in your negotiations.

Your overarching social motive influences not only what

strategies you use but also how you use them—and the

same goes for your counterpart.

Negotiating Differences (continued)

2 Negotiation

Production and Marketing Circulation and Fulfillment pnmsi Production Manager Beverly Freeman Design Flanders + Associates

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Negotiation About this publication

Negotiation offers subscribers practical advice and guidance for developing and

honing skills in the art of negotiation. Published monthly, Negotiation’s editorial

content is provided by academics from Harvard Law School, Harvard Business

School, and other centers around the world. Negotiation is one of an array of

teaching, training, and learning tools and services offered by the Program on

Negotiation (PON) at Harvard Law School.

About the Program on Negotiation

The Program on Negotiation at Harvard Law School is a world-renowned inter-

disciplinary center focused on negotiation and conflict resolution. Founded in

1983, PON is a consortium of faculty, students, and associates at Harvard University,

the Massachusetts Institute of Technology, Tufts University, and other Boston-area

schools. Drawing from numerous fields of study, including law, business, govern-

ment, psychology, economics, anthropology, and education, PON connects rigorous

research and scholarship with a deep understanding of practice.

looming deadline. Some begin working to create value. This

shift may help them reach an agreement, but they may not

actually achieve high outcomes for themselves.

Yet individualistic negotiating pairs can reach high-

quality agreements, my colleagues and I have found. (See

the sidebar “Individualists: Cooperate to Claim Value.”)

“What if we have different social motives?” When a cooperator and an individualist bargain, the situa-

tion grows more complex. In addition to engaging your

own strategy, you must react and adjust to a style that may

strike you as foreign or inappropriate.

Notably, though, people in negotiation tend to converge

in their approaches, which allows their interactions to

become more predictable, Kathleen McGinn of Harvard

Business School and Angela Keros of Goldman Sachs have

found. Negotiators get in sync by purposefully reciprocat-

ing each other’s approaches and subconsciously mimick-

ing behaviors, my research with Michael Prietula of Emory

University and Elaine Hyder and Chris Genovese of

Carnegie Mellon University has shown.

Whose social motive will dominate the “hybrid” style?

Individualists will not dominate and outperform coopera-

tors for the simple reason that a cooperator is not necessarily

January 2007 3

“What if we have the same social motive?” When two people share the same motive, they fall prey to

the same flaws and reinforce each other’s failings. Consider

a labor negotiation in which the chief management nego-

tiator withholds information about revenue projections,

while the labor leader holds back details about workforce

sentiment. Impasse is the predicable result. When you’re

negotiating with a fellow individualist or a fellow coopera-

tor, your goal should be to overcome the inherent flaws of

your orientation.

The case of two cooperators. Two cooperators who meet at the negotiating table risk

concentrating so closely on each other’s interests that they

lose sight of their own—and settle for outcomes that split

the difference rather than truly satisfy both parties’ inter-

ests. Imagine that a newly hired research analyst fails to ask

his manager for a cutting-edge workstation for fear of

appearing greedy. The manager, who has already been

quite responsive to his requests, would happily provide the

workstation were she aware of the potential upside. Unfor-

tunately, this joint benefit goes undiscovered.

My research with Mara Olekalns of the University of

Melbourne and Jeanne Brett suggests strategies that can

improve the outcomes of such negotiations. When you’re

negotiating with a fellow cooperator, include value-claiming

behaviors in your repertoire: make offers that focus on a sin-

gle issue, communicate your own preferences and positions,

and clarify your limits. When you claim value in a context of

cooperation and trust, you focus the negotiation on explor-

ing value-maximizing agreements—but be careful not to

shift talks from problem solving into contentiousness.

The case of two individualists. When two individualists negotiate, their natural ten-

dency to use value-claiming strategies, such as making

demands and threats, can escalate into conflict and

impasse, Olekalns and Philip Smith of the University of

Melbourne have found. As Katie A. Liljenquist and Adam

D. Galinsky noted in their September 2006 Negotiation

article, “How to Defuse Threats at the Bargaining Table,”

people tend to reciprocate negative behaviors more than

positive ones.

As conflict increases, the odds of maximizing mutual

gain decrease, as do your chances of maximizing individual

gain. Suppose two individualists negotiate a joint venture.

Although both parties may feel they got the best outcome

possible, the resulting agreement will likely overlook syner-

gies across the two organizations. An exception to this ten-

dency sometimes emerges when individualists face a

INDIVIDUALISTS: COOPERATE TO CLAIM VALUE

What happens in negotiations between two individu-

alists who care little about each other’s outcomes? Sup-

pose an engineer and an industrial designer are

arguing over the design of a car bumper. The designer

cares only about whether the bumper matches the style

of the vehicle; the engineer is concerned only about

how the bumper connects to the front. After describ-

ing the trouble he’s having with the existing design, the

engineer presents a solution that the designer deems

“ugly.” The designer threatens to involve her boss if the

engineer doesn’t revert to a prior design

You’re the engineer—what do you do? First, balance

your value-claiming strategies by working to create

value. Ask the designer to explain where she thinks the

new design went wrong, and identify possible solu-

tions and low-priority issues on which you can offer

tradeoffs. Second, remind her that there’s hope for a

solution if you both let down your guard and work

together. Third, listen openly to the designer’s propos-

als and try to build on them. Above all, ensure that

your cooperative moves are reciprocated, or you’ll be

vulnerable to exploitation.

4 Negotiation

an individualist, you should avoid revealing too much

information if none is forthcoming. Instead, reciprocate

contentious behavior while signaling your desire to switch

to cooperation. Merely identifying a tactic as unacceptable

can neutralize it, assuming you provide a more effective

course.

If you’re an individualist, don’t lose sight of your ability

to protect yourself from difficult opponents. Even when a

solution is not immediately obvious, you’re likely to keep

forging ahead. At the same time, pick up the signals your

counterpart is sending. Reciprocate cooperative behavior,

and don’t be overly wary until you are absolutely sure the

other side can’t be trusted. �

Laurie R. Weingart is a professor of organizational behavior at the

Tepper School of Business at Carnegie Mellon University, where she

has researched and taught negotiation skills for more than 15 years.

She can be reached at [email protected].

To order a reprint of this article, call 800-391-8629.

a naïve negotiator. Brett, Olekalns, Smith, and I have found

that cooperators are more sensitive than individualists to

the approaches of others and more likely to adjust in response.

They claim more value when negotiating with individualists.

Much less sensitive to the negotiating environment,

individualists tend to focus on claiming value regardless of

their counterparts’ social motive. Individualists may not

even realize they are negotiating with cooperative oppo-

nents, who quickly switch tactics in response to competi-

tive behavior.

“How can I capitalize on my natural tendencies?” Rather than trying to overhaul your social motive completely,

it makes more sense to work on strengthening your natural

talents and practicing the best elements of other styles.

If you’re a cooperator, this means capitalizing on your

ability to detect others’ social motives and adapting your

own approach accordingly. Although you shouldn’t

immediately abandon problem solving when faced with

Negotiating Differences (continued)

N E G O T I A T I O N S T R A T E G Y

Dealing with a Spoiler? Negotiate Around the Problem

Sometimes the best way to deal with obstinate negotiators is to bypass them completely.

Here’s how to execute an effective workaround.

B Y R O B E R T C . B O R D O N E

A T ONE TIME OR ANOTHER, most of us have confronted a fel- low negotiator who seemed intent on blocking even

our most reasonable requests and actions. This was the sit-

uation faced by Alexis, the CIO at a midsize publishing

company. Phil, the company’s CEO, hired Alexis to create

an online information system tailored to the needs of their

largest customers. Phil promised to support Alexis as she

implemented the new system and restructured the IT

department. The two met on many occasions to negotiate

issues related to cost, increased staff needs, impact on cus-

tomers, and coordination challenges.

Despite his promises of cooperation, in almost every

meeting with Alexis, Phil proved to be a barrier to her

problem-solving efforts. He repeatedly denied her request

to increase the size of her staff, limited her authority, and

delayed making important decisions. To her frustration

and embarrassment, Alexis faced huge project delays, ris-

ing costs, and low credibility throughout the organization.

She felt stuck between two unhappy choices: accepting the

status quo or starting another job search.

In past issues of Negotiation, we’ve shown you ways to

transform a difficult counterpart’s no into a hearty yes. But

what happens when you’ve followed all this good advice

and still find yourself faced with a perpetual naysayer?

When interpersonal and tactical strategies fail to win

over someone whose approval is essential to your goals, the

negotiation may seem hopeless. Fortunately, there is an

option of last resort. Consider crafting what I call a

workaround—a strategic approach to getting what you

need without the involvement or support of your adversary.

What type of spoiler are you facing? When your best efforts fail to budge the other party in the

right direction, you may be facing one of the three types of

“spoilers” identified by Stanford University professor

Stephen John Stedman.