BEING PREPARED / 373Looking across the table
A negotiator was once asked if he
could formulate a proposal that took
into consideration both his and his
counterpart’s interests. He was puzzled.
“Why should I care about the other
party’s interests?” he asked. “His
interests are his problem.” Such anattitude of blinkered self-interest
characterizes the unprepared negotiator.
In order to succeed, you not only need to
understand yourself and your interests,
but also the other negotiating party, and
the situation as a whole. Ask yourself the
questions listed above when preparing
for a negotiation.AVOIDING ESCALATION OF COMMITMENT
It can be easy to fall into the trap of competing with the other party at all
costs, to ensure that you get that “win.” For example, in the late 1980s,
Robert Campeau, a Canadian businessman, made a hostile bid to acquire
Federated Department Stores (FDS). Macy’s, a competitor of FDS, was
also interested and a bidding war began between Campeau and Macy’s.
Determined to win, Campeau kept increasing his already high bids to a
point where he offered to pay an additional US$500 million. Campeau
won the competition, but two years later he declared bankruptcy. This is a
classic case of escalation of commitment, and a lesson for all negotiators
in keeping a sense of perspective in their negotiations.In focus
>>^ Who will come to the table? Research their personality and their
history of negotiation. Have they been previously successful or
unsuccessful and what approaches did they use?>> What can you find out about their negotiating style, life history,
hobbies, and interests?>>^ If you have more than one counterpart, do they share the same
backgrounds and functional area, and are they likely to be united in
their desired outcome?>>^ Are they authorized to make binding decisions? If not, who are the
“players” behind the scenes who will make the final decision?Preliminary research
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