Avoiding Common Mistakes When Negotiating
Disclaimer: The summaries and interpretations provided on this page are unofficial and have not been reviewed, endorsed, or approved by the Canada School of Public Service (CSPS).
Summary
- The “mythical fixed pie” is a common negotiation error where people assume negotiations are always zero-sum situations where one person’s gain must come at another’s expense
- This assumption treats negotiations as purely competitive situations where the pie is fixed in size and advancing your agenda requires preventing others from advancing theirs
- Single-issue negotiations are indeed win-lose by nature, but most real-world negotiations involve multiple issues
- When multiple issues are at stake, there is potential to expand the pie and create value for both parties rather than just dividing existing value
- The typical way to expand the pie is to add more issues to the discussion or split existing issues into smaller components
- Playing the competitive positional game can work when there is large initial overlap between what parties find minimally acceptable
- The competitive approach fails when parties face a legitimate impasse with no initial overlap between their acceptable terms
- Breaking impasses requires an interest-based option generating strategy that emphasizes collaboration and cooperation over competition
- This collaborative approach involves being forthcoming and sharing as much relevant information as possible with the other party
- Poor team organization can cause failure even when the negotiation strategy is correct
- Team members need clearly defined roles and must be aligned on the approach to avoid undermining the negotiation effort
Actionable Advice
- Avoid assuming negotiations are zero-sum win-lose situations by default
- Look for opportunities to add new issues to the negotiation discussion
- Consider splitting existing issues into smaller, more manageable components
- When facing an impasse with no overlap, shift from competitive to collaborative approach
- Share information openly and be forthcoming with the other party during collaborative negotiations
- Focus on interests rather than positions when generating options
- Ensure every team member knows their specific role in the negotiation
- Align all team members on the chosen strategy before entering negotiations
- Make sure the team is "singing from the same song sheet" to avoid mixed messages
- Pay equal attention to both strategy selection and team organization
- Use interest-based option generation when parties are initially at an impasse