Investigative Investigative NegotiationNegotiation

Based on the article by Deepak Malhotra and

Max.H.BazermanHarvard Business Review,

September 2007

Key ideaKey idea

The best way to get what we are The best way to get what we are after in a negotiation is to approach after in a negotiation is to approach the situation the way a detective the situation the way a detective approaches a crime sceneapproaches a crime scene

Principle 1Principle 1Don’t just discuss what your counterparts Don’t just discuss what your counterparts wantwant

Find out why they want it.Find out why they want it.

Principle 2Principle 2Seek to understand and mitigate the other Seek to understand and mitigate the other side’s constraints.side’s constraints.

Don’t view the other side’s constraints as Don’t view the other side’s constraints as ”their” problem.”their” problem.

The two sides can help mitigate each The two sides can help mitigate each other’s constraints.other’s constraints.

Principle 3Principle 3

Interpret demands asInterpret demands as opportunities.opportunities.

Do not adopt a defensive mindsetDo not adopt a defensive mindset– What can we learn from the other side’s What can we learn from the other side’s

insistence on this issue?insistence on this issue?– What does the demand indicate about What does the demand indicate about

the other party’s needs and interests?the other party’s needs and interests?– How can the information be used to How can the information be used to

create and capture value?create and capture value?

Principle 4Principle 4Create common ground with adversaries.Create common ground with adversaries.– It is possible to cooperate and compete It is possible to cooperate and compete

with others simultaneously.with others simultaneously.

Principle 5Principle 5Continue to investigate even after the deal Continue to investigate even after the deal appears to be lost.appears to be lost.

Sometimes the deal can be revived.Sometimes the deal can be revived.

In other cases, important information that In other cases, important information that will help in future negotiations can be will help in future negotiations can be acquired.acquired.

More info can be acquired about the More info can be acquired about the customer’s future needs, the interests and customer’s future needs, the interests and concerns of similar customers or the concerns of similar customers or the strategies of other players in the industry.strategies of other players in the industry.

ConclusionConclusionEffective negotiation requires a strong focus Effective negotiation requires a strong focus on the other side’s interests, priorities and on the other side’s interests, priorities and constraints.constraints.

Constructing a value maximising deal often Constructing a value maximising deal often hinges not on the ability to persuade but on hinges not on the ability to persuade but on the ability to listen.the ability to listen.

Ultimately, negotiation is an information Ultimately, negotiation is an information game.game.

Those who can obtain more information Those who can obtain more information perform better than those who stick with what perform better than those who stick with what they know.they know.