Let’s start with the “science.” Professional negotiators know about (and how to create and execute) negotiations plans (opens, fallbacks, accepts, walks positions), BATNAS (best alternative to a negotiated agreement), etc. They know what is and is not negotiable. They know the relevant market. They understand timing. They know how to listen, actively. You cannot learn anything when talking. They appreciate leverage (or lack thereof), which can be structural or situational. They comprehend the value of information asymmetry, the value of transparency and opacity. They know how to package.
Today, negotiations courses and workshops are readily available. When I was in law school, 20+ years ago, one class had a small negotiation exercise. This reality has changed at many law schools, although it seems that business schools are at the forefront of teaching this science. In my Technology Transactions class, I separated the class into two teams (representing a university and a commercial outfit), which in turn negotiated data licensing and collaboration (IP ownership allocation) terms based on a fact pattern I had devised. In the Comparative Privacy course I co-taught, the class, again separated into two teams (representing a data controller and a data processor), negotiated the salient terms of a data processing agreement, again based on a fact pattern.
Literature on negotiations is rich and varied. Consider the following: Bargaining for Advantage (Shell), Getting to Yes (Fisher & Ury), Influence: The Psychology of Persuasion (Cialdini), etc. The depiction of LBJ, as Senate Majority Leader, negotiating the Civil Rights Act of 1957, the first piece of civil rights legislation since Reconstruction, in Master of the Senate (Caro) is instructive as well.
Depictions of negotiations in cinema can have pedagogical value as well. In a riveting Leadership Communications class at Haas Berkeley, we watched excerpts of 12 Angry Men, where Henry Fonda persuades the other jurors to reconsider the evidence and to set aside their collective preconceptions to acquit the accused. Bridge of Spies, where Tom Hanks negotiates a prisoner exchange with the Soviets and East Germans, is equally useful.
This brings me then to the art of negotiations, not to be confused, of course, with the Art of the Deal (which, to date, I have not read). Negotiations is about identifying a solution and then persuading your negotiating partner that, all things being equal, that solution is reasonable, equitable, and fair. Negotiations is not about finding the middle (which may not meet the needs of either party). To be sure, finding common ground is a useful, first step, but, more important is knowing when and where to stand firm, and where you can give a little. Let me give you a concrete example. Imagine you need a certain part by next week. You have some price sensitivity, but without the part, your lost business will eclipse the incremental savings from protracted negotiations by many factors. Here, so long as the pricing is within the realm of the reasonable (which you can deduce by research and pulsing other suppliers), you’re better off accepting the proposed pricing and pushing for accelerated delivery. You’re worse off with a compromise solution, where you meet in the middle on pricing and delivery. On the flip side, the supplier might have some slack in the delivery schedule, but due to razor thin margins, cannot offer a lower price (without approval from executive management). Of course, it is difficult to learn all of this without probing, without having the right conversations.
The world of personal negotiations is vastly different, requiring additional tools and considerations. On a home improvement project a few years ago, after conducting some research and obtaining a few bids, I embarked on negotiations with the service provider I had selected. Based on the bid, I created a detailed spreadsheet, itemizing all of the components and providing explanations to drive down price. The service provider, in essence, looked at the spreadsheet, said he was busy, conceded that his price might be higher than the competition but that it comes with the peace of mind that that project will be completed on time, professionally, and without any headaches on the part of the customer, and asked when he should start the project. I noodled on this, considered my other options, and told him to pull the permit as soon as possible.
Other negotiations (cars, etc.) have proven more fruitful. I am patient and disciplined and, within reason, do not mind going back and forth with the dealer. Closing the sale at the end of the month (or better, year) helps. I have been told that Tesla does not negotiate, so that might be an interesting experience for me, when I decide to buy my next car. It is human nature to want a “deal.” Some time ago, J.C. Penney replaced its sales (50% off!) with everyday low prices, reflecting the same discount. Thus, you could buy a $20 shirt for $10 (in view of the sales tag) or just a $10 shirt (no sales tag). Same shirt. Sales plummeted. People like deals.
Having someone negotiate for you can be helpful. I am more effective negotiating for others than for myself. I can be more objective. The emotions are different, if not muted. That someone may know the market better, have a better network, etc.
I would be remiss not to briefly touch upon salary negotiations. These can be stressful, for many reasons, including various asymmetries. Compensation is one, important component. Title is another. The same can be said about other aspects of the employment package (e.g., ability to work from home, during a non-pandemic period). Putting the deal in writing helps. Getting it right on the front end is critical. Just as the value of a new car drops dramatically as soon as it leaves the lot, so does the ability of a new employee to obtain satisfactory terms as soon as he or she agrees to the package. A new employer will look to your current title and compensation to propose a package, so if you start low, all things being equal, you will stay low.
Last, but certainly not least, do not practice your new negotiation skills on your spouse or significant other or other family members. There is a time and a place for everything, and plenty of opportunities outside the home to continue sharpening your negotiation skills.
Good luck!
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