100 GREAT BUSINESS IDEAS • 103-^ Searching too hard for common ground. Common ground can help
negotiations, but different interests can allow both sides to get
something out of the deal.
-^ Neglecting BATNA. This refers to the “best alternative to a
negotiated agreement”: the options you will be faced with
if the deal falls through. By analyzing your prospects—and
your partner’s prospects—you can decide what to offer in the
negotiation and when to offer it.
-^ Failing to correct for skewed vision. Two types of bias can affect
negotiations—role bias and partisan perceptions. Role bias
(the confi rming evidence trap) is the tendency to interpret
information in self-serving ways, overestimating your chances
of success, while partisan perceptions (the over-confi dence trap)
is the propensity to glorify your own position while vilifying
opponents. You can overcome these biases by placing yourself in
the position of your “opponent.”
In practice
- An understanding of others’ desires and perspective is crucial
to being able to persuade them why they should agree to your
proposal. Explore their position with them. - Research an individual or company before negotiation. Do not limit
research to information immediately relevant to the deal—a broad
knowledge of the industry, company goals, and market conditions
the organization faces will give you extra weight in negotiations. - Do not feel the need to be overly aggressive. Show that you are a
fi rm negotiator, but remember that mutual understanding and
establishing rapport will yield large rewards. - Conduct a full analysis of potential agreements that allow both
sides to win, without either party having to accept a loss.