# Watershed Associates - Full Documentation > Professional negotiation training. Fortune 500, Global 1000, government, nonprofits. Best Negotiating Practices (BNPs) framework. 30+ years, 40+ countries. Founded by Steve Wiesner. ## Leadership Team - Steve Wiesner -- President & Lead Trainer. 30+ years. Complex commercial negotiations, cross-cultural dynamics, curriculum design. - Eileen TanPiengco -- Senior Facilitator & Cultural Strategist. Cross-cultural negotiation, gender dynamics, high-stakes influence. - Kim Gowing -- Facilitator & Content Strategist. Negotiation communication, content development, virtual facilitation. ## The BNP Framework Domain 1 -- Relationship & Trust: Body Language, Empathy as Strategy, Cross-Cultural Dynamics, Power Dynamics, Dining Etiquette, Credibility, Managing Emotions. Domain 2 -- Information & Preparation: BATNA, Targets vs. Walkaway, Preparation Frameworks, Probing Questions, Team Roles, Interests vs. Positions. Domain 3 -- Tactics & Influence: Tools of Influence, Psychological Drivers of Fairness, Strategic Concessions, Anchoring, Email Negotiation, Stress Management, Framing. ## Programs ### Framework for Negotiations | https://www.watershedassociates.com/framework-for-negotiations/ Flagship training. Complete BNP framework. Experiential learning, role-plays, case studies. All levels. Live, virtual, or blended. ### The Persuasion Playbook | https://www.watershedassociates.com/the-persuasion-playbook/ Ethical influence mastery. Persuasion psychology, strategic framing, storytelling, non-verbal communication. ### Advanced Negotiations | https://www.watershedassociates.com/advanced-negotiations/ High-stakes strategies. Multi-party deals, cross-cultural negotiations, coalition building, advanced tactics. ### Watershed 365+ | https://www.watershedassociates.com/watershed-365/ Year-round development. Microlearning, peer coaching circles, live touchpoints, community access. Q: What is the Framework for Negotiations workshop? A: Framework for Negotiations is a workshop rooted in The Watershed Way Framework and Best Negotiating Practices(R). It teaches the ongoing cycle of negotiation and relationship-building using a structured, repeatable approach embraced by some of the world's leading negotiators. Q: What will I learn in Framework for Negotiations? A: Participants learn to understand interests vs. positions; define MDOs, LAAs, BATNAs, ZOPA, and Negotiation Envelopes; build comprehensive negotiating plans including research, analysis, and creative concessions; and defend against common tactics while sustaining collaborative relationships. Q: Who should attend the Framework for Negotiations workshop? A: The workshop is designed for negotiators at any level-from those new to structured negotiation to seasoned professionals looking for a proven, repeatable framework to improve outcomes. Q: How is the Watershed Framework different from other negotiation training? A: The Watershed Way Framework is a proprietary, proven structure built on collaborative, win-win principles. It consistently secures better deals by balancing relationship-building with measurable financial outcomes, and is adaptable for both new and experienced negotiators. Q: What is The Persuasion Playbook workshop? A: The Persuasion Playbook is an interactive workshop equipping learners with practical strategies to influence others ethically. Drawing on psychology, behavioral economics, and communication science, it explores what drives decision-making and how to frame messages for maximum impact. Q: What will I learn in The Persuasion Playbook? A: Participants learn to recognize ethical boundaries in influencing, apply evidence-based persuasion models, adjust tactics based on their audience, and strengthen communication skills-from body language to word choice-to secure buy-in and drive action. Q: Who should attend The Persuasion Playbook? A: This workshop is ideal for professionals who want to communicate more effectively, influence decisions ethically, and achieve better outcomes in conversations, negotiations, and presentations. Q: Does The Persuasion Playbook cover ethical influence? A: Yes. Ethical influence is a cornerstone of the program. Participants learn to apply evidence-based persuasion techniques responsibly-building trust and credibility without manipulation. Q: What is the Advanced Negotiations workshop? A: Advanced Negotiations is designed for expert negotiators. It blends strategy, psychology, and real-world application to tackle multi-threaded, high-stakes deals. Topics include financial analysis, AI in negotiations, conflict resolution, power mapping, and stakeholder analysis. Q: Who should attend Advanced Negotiations? A: Advanced Negotiations is geared for experienced negotiators looking to challenge themselves. Ideal attendees have foundational negotiation training and want to sharpen skills in complex, high-stakes scenarios. Q: How is Advanced Negotiations different from Framework for Negotiations? A: Framework for Negotiations builds core skills for any level, while Advanced Negotiations targets seasoned professionals-covering power dynamics, financial analysis, AI-assisted dealmaking, and high-stakes scenario practice. Q: What outcomes can I expect from Advanced Negotiations? A: Past participants have achieved measurable financial impact, often in the millions. The workshop delivers real outcomes through fast-paced discussions, hands-on practice, and strategies tailored for complex dealmaking environments. Q: What is Watershed 365+? A: Watershed 365+ is an ongoing negotiation reinforcement program designed to keep skills sharp all year. It includes three quarterly 90-minute live Zoom mini-workshops spread across 90-day intervals, each paired with an on-demand eLearning module. Q: Who should attend Watershed 365+? A: Watershed 365+ is ideal for teams that have completed a Watershed core workshop-such as Framework for Negotiations or The Persuasion Playbook-and want ongoing skill reinforcement. It also suits organizations seeking long-term behavior change rather than a one-time training event. Q: How does Watershed 365+ work? A: The program runs over a year with three 90-minute live Zoom sessions at quarterly 90-day intervals. Each live session is paired with a self-paced eLearning module so participants can reinforce topics on their own schedule. Q: Is prior negotiation training required for Watershed 365+? A: Yes. Watershed 365+ is a reinforcement program that builds on existing foundations. Participants should have completed a Watershed core workshop or equivalent negotiation training before enrolling. ## Learning Center Articles ### [A Go/No-Go Decision Time](https://www.watershedassociates.com/learning-center/a-go-no-go-decision-time/) Near the end of the Exchange Stage is a critical time for both parties. You have a wealth of information, […] Q: What is a Go/No-Go decision in negotiation? A: A Go/No-Go decision is the critical checkpoint where you assess whether it makes sense to move forward into the Bargaining Stage. Near the end of the Exchange Stage, you've gathered information, built rapport, and evaluated the other party's trustworthiness, competency, and alignment of interests. This is your moment to decide: is a potential agreement here better than your BATNA (Best Alternative to a Negotiated Agreement)? Q: When should you make a Go/No-Go decision during a negotiation? A: Most Go/No-Go decisions happen at two points: early in Preparation, when you uncover a "deal killer," and near the end of the Exchange Stage, once you have enough information to judge whether the deal is worth pursuing. A smaller number of Go/No-Go decisions are made during the Bargaining Stage itself. Q: What happens if you skip the Go/No-Go decision and keep negotiating? A: If you don't pause to evaluate whether a deal is viable, you risk reaching the Conclude Stage only to discover there's no agreement better than your BATNA. At that point, you've invested significant time and resources for nothing. While this can happen when you've been misled about the other party's interests or commitment, it's rare in collaborative negotiations where both sides have been transparent. ### [Anchoring](https://www.watershedassociates.com/learning-center/anchoring/) Recognize Anchoring One of the most ubiquitous tactics, anchoring is an attempt to launch negotiations from an advantageous statement of […] Q: What is anchoring in negotiation? A: Anchoring is an attempt to launch negotiations from an advantageous statement of value, whether the position is rational or arbitrary. Opening offers are anchors whether you intend them as a tactical move or not, because the first number on the table has a powerful psychological effect on how both sides frame the possible outcomes. Q: Is anchoring appropriate in collaborative negotiations? A: It depends on whether your anchor is defensible. Anchoring with a rational, justifiable opening offer is good practice - it's consistent with thinking big and asking for what you want. Anchoring with an irrational value can also work when the subject's value is ambiguous, since neither side can objectively dispute it. However, anchoring can backfire in collaborative settings if objective criteria exist and your anchor is too aggressive, if your counterpart lacks confidence and walks away, or if your counterpart values respect and takes personal offense. Q: What's the difference between a counter-anchor and a counter-offer? A: A counter-anchor means asserting your own MDO (Most Desired Outcome) and making concessions from that position. A counter-offer means using the other party's opening as your starting point for concessions. The distinction matters because counter-offers legitimize the anchor, while counter-anchoring resets the frame entirely around your own position. Q: How do you defend against anchoring in a negotiation? A: You can prevent anchoring by presenting the first offer yourself. If your counterpart anchors first, you have several defensive strategies: prepare thoroughly so you can reduce uncertainty in value with prior contracts, competing offers, and objective criteria; counter-anchor rather than counter-offer; re-anchor by exploring interests and then presenting a new, better-justified position; or use a Crunch - a response that signals you recognize the tactic and won't be weighed down by it. Q: Why should you set your MDO before your LAA when preparing to negotiate? A: When you determine your LAA (Least Acceptable Agreement) first, it acts as a psychological anchor against yourself. You end up making adjustments upward from your floor rather than thinking big from the start. Setting your MDO independently ensures your opening position reflects what you actually want, not a number unconsciously dragged down by your walk-away point. ### [Apologies](https://www.watershedassociates.com/learning-center/apologies/) Effective Apologies in Negotiations Is this a mea culpa moment where an acknowledgement of one’s fault or error is appropriate?  […] Q: Why do apologies matter in negotiations? A: Unresolved trust issues can become the elephant in the room. If you, your predecessor, or your company did something that eroded trust - whether it was a quality issue, an offensive remark, or a late payment - the other party may hold back from sharing their interests. An effective apology can begin to rebuild the trust that's critical for collaborative negotiation. Q: What are the key ingredients of an effective apology in a negotiation? A: An effective negotiation apology has three layers. First, the price of entry: listen, understand, and show understanding. Second, the three standard essentials: show regret, take responsibility, and ask for forgiveness. Third, determine the lasting fix that will allow trust to grow - typically a need for empathy, compensation, or acknowledgement of violated norms. Q: Should you actually say "I'm sorry" in a negotiation? A: Yes. Saying the actual words "I'm sorry" can be more powerful than corporate-sounding alternatives like "I apologize." Formal language can come across as inauthentic and rehearsed, which undermines the whole point of rebuilding trust. A sincere "I'm sorry" signals genuine regret and makes it easier for the other party to move forward. Q: Is simply apologizing enough to resolve a trust issue in negotiations? A: No. Common wisdom says "just apologize and they'll move on," but in negotiations the apology needs to be effective enough to rebuild the level of trust required for people to share their interests openly. A surface-level apology without genuine regret, accountability, and a path forward won't restore the relationship. Q: How do you identify when an apology is needed during a negotiation? A: Watch for clues and Probe. The other party may reference a quality issue that caused them trouble, an offensive remark from your team, or a costly late payment. The originating causes can be slight or major, personal or organizational, obvious or unnoticed. If the other side seems to be holding back, an unresolved trust issue may be the reason. ### [Appreciation](https://www.watershedassociates.com/learning-center/appreciation/) People negotiate, not organizations. As trite as it may sound, don’t forget to thank the people who worked with you, […] Q: Why is showing appreciation important in negotiations? A: People negotiate, not organizations. Everyone wants to be understood and wants their efforts appreciated. The feeling of being appreciated provokes an eagerness to cooperate and helpful emotions. When you appreciate the other side, they're likely to appreciate you in return - creating a positive cycle that strengthens the relationship and improves outcomes. Q: What are the four ways to show appreciation in a negotiation? A: First, understand the other side's point of view, find value in it, and communicate that understanding. Second, acknowledge the effort they put into the negotiation process, even if you couldn't reach agreement. Third, apologize if you make or have made mistakes. Fourth, say the words "thank you" in your language and theirs, and take appropriate cultural action such as handshakes, bows, or other signs of genuine respect. Q: Is showing appreciation a negotiation tactic? A: No. Showing appreciation is a Best Negotiating Practice, not a tactic. Sincerity is the key. If you can't find a way to genuinely feel it, you'll do more harm by faking it. Appreciation should be authentic and consistent - shown to people on your side and the other side who contributed to the process. Q: Should you show appreciation even when a negotiation doesn't result in an agreement? A: Yes. Acknowledging the effort the other party put into the process matters regardless of the outcome. Relationships don't end because one negotiation didn't produce an agreement, and genuine appreciation keeps the door open for future collaboration. ### [Are Good Negotiators Born or Made?](https://www.watershedassociates.com/learning-center/are-good-negotiators-born-or-made/) Just as you might ask, “Are good leaders born or made?” or “Are good salespeople born or made?” you might […] Q: Are good negotiators born or made? A: Both - but most are made, and in many cases, self-made. Some people have natural instincts, but there's no closed club when it comes to mastery of negotiation. Everyone can learn to be an effective and collaborative negotiator with the right desire, discipline, and practice. Q: What does it take to become a good negotiator? A: It takes desire to do better, a disciplined approach where you consistently do the things you know work, goal focus, plenty of practice, mastering the basics, listening to coaches and mentors, and genuine concern for great results, improved commitment, and enhanced reputation. Q: What makes master negotiators different from everyone else? A: Don't be intimidated by master negotiators - they don't know anything you can't learn. They're called "masters" because they've mastered the basics. They practice every day, constantly return to fundamentals, refine their approach, correct unwanted behaviors, and sharpen their skills. It's discipline, not some secret advantage. Q: Why is it worth investing in becoming a better negotiator? A: People seek out good negotiators. Almost everyone prefers to work with an effective collaborative negotiator rather than someone who is inflexible and confrontational. Building your negotiation skills enhances your reputation, improves commitment from others, and leads to better results across every area of your professional life. ### [Bargain: Stage 3](https://www.watershedassociates.com/learning-center/bargain-stage-3/) The third stage, Bargain, is when the action begins, or at least when there is greater intensity to the interaction. […] Q: What is the Bargain Stage in the negotiation process? A: The Bargain Stage is the third of five negotiation stages and is where the real give-and-take begins. It's when the intensity picks up and parties start making proposals, trading concessions, and working toward agreement. Everything you learned in the Preparation and Exchange stages feeds directly into how effective you'll be in Bargaining. Q: What are the three critical tools used during the Bargain Stage? A: The three essential tools are the Negotiator's Probe, the Negotiated Yes, and Effective Concession Patterns. The Probe is used to explore options that create value - it helps you uncover possibilities neither side may have considered. The Negotiated Yes, or "Yes, if...," is how you respond to offers in a way that captures value by always attaching conditions to your concessions. Effective concession patterns require the negotiator to be strategic about the way they manage concessions - reducing the size / amount of their subsequent concessions as they get closer to their goal. Doing so sends a message to the other side that they are approaching the limit. Q: How long does the Bargain Stage typically last? A: It varies enormously. The Bargaining Stage can take hours, weeks, months, or even years depending on the complexity and stakes involved. But regardless of duration, every Bargaining Stage must start with a proposal - a statement of position supported by interests. Q: Should bargaining always happen face-to-face? A: Not necessarily, but when a lot is at risk, it's highly recommended that the parties meet face-to-face at some point during Bargaining - and the earlier the better, especially if they haven't previously met during the Exchange Stage. Technology like email and live video has made remote bargaining efficient and cost-effective, and most modern negotiations use a hybrid approach. But face-to-face interaction gives you access to facial expressions and voice tone that help you read subtext. ### [BATNA: Best Alternative to a Negotiated Agreement](https://www.watershedassociates.com/learning-center/batna-best-alternative-to-a-negotiated-agreement/) Your Best Alternative To a Negotiated Agreement is a well conceived plan that you are willing and able to execute if no agreement […] Q: What is a BATNA in negotiation? A: BATNA stands for Best Alternative To a Negotiated Agreement. It's a well-conceived plan that you're willing and able to execute if no agreement can be reached. It's your ability to walk away - your plan B. BATNAs give you power and leverage, making your opening position and concession pattern stronger. Q: What's the difference between a BATNA and a bluff? A: A BATNA that you aren't willing and able to execute is not a BATNA - it's a bluff. A true BATNA is a unilateral option that doesn't depend on the other party's consent, and you must be genuinely prepared to follow through on it. Bluffs are always risky because if you're called on one, you lose credibility and leverage. Q: When should you reveal your BATNA during a negotiation? A: Start hinting at your BATNAs during the Exchange stage - let the other side perceive that you have the power to walk away, without necessarily revealing what your alternatives are. In the Bargaining stage, you'll decide if and when to reveal specifics. However, if you have all the power, it's wise not to flaunt your BATNA. When powerful parties show off their alternatives, the less powerful counterpart tends to build an offensive in response. Q: Should a BATNA be used as a threat or an advisory? A: Always frame it as an advisory, not a threat. Threats damage relationships; advisories strengthen them. There's a big difference between "We'll go with another supplier if you can't meet our terms" (threat) and letting the other side understand through the natural course of discussion that you have viable alternatives you're prepared to act on. Q: What should you do if you don't have a BATNA? A: Sometimes you don't have a BATNA and must reach agreement. In that situation, be sure to continue working on a long-term BATNA for future use. Consider both short-term and long-term alternatives. The more BATNAs you develop and the more willing you are to execute them, the less likely you'll ever actually need one - the leverage alone improves your position. ### [Best Negotiating Practices Applied Across Cultures](https://www.watershedassociates.com/learning-center/best-negotiating-practices-applied-across-cultures/) With the four key cultural concepts that impact negotiations in mind, let’s explore some of the Best Negotiating Practices from […] Q: Do Best Negotiating Practices work across different cultures? A: Yes. Core practices like believing in win-win mutual gain, thorough preparation, patience, rapport building, and using the Negotiated Yes are productive across cultures. Some practices require cultural nuance in how they're applied, but the fundamentals hold. Practices not specifically addressed from a cross-cultural perspective can be assumed valid in any setting. Q: Why is patience so important in cross-cultural negotiations? A: Most cultures outside of Anglo North America and northwest Europe have a more relaxed approach to time. They may also face constraints you're unaware of, like consensus-building processes or technology limitations. Rushing a slower-paced culture can erode trust and mark you as someone who can be taken advantage of. There are many examples of impatient Westerners being manipulated - hosts spending the entire visit sightseeing, then presenting an unacceptable agreement on the last day. Q: How should you prepare differently for cross-cultural negotiations? A: If thorough preparation is wise at home, it's 10 times wiser abroad. Start from the first point of contact, not a few days before the meeting. Know the other organization's history, goals, government ties, and global aspirations. Learn who is who and what role they play, including people who may stay in the background but hold social prestige. Doing your social homework is far more important when dealing with relationship-oriented cultures than with task-oriented ones. Q: Why is building rapport critical in relationship-oriented cultures? A: In relationship-oriented cultures, people don't do business with strangers, no matter how attractive the offer or how airtight the logic. Building rapport may take an evening, a week of visiting, or months of communication. For Russians, it might mean long nights of eating and saunas together. For Japanese, many slow-moving meetings and dinners. Task-oriented negotiators who view this as irrelevant or a poor use of time risk losing the deal before bargaining even begins. Q: How does the Negotiated Yes ("Yes, if...") help in cross-cultural settings? A: It helps you navigate two common challenges. With indirect cultures like Japanese or Vietnamese, where a direct "no" would be offensive and embarrassing, the Negotiated Yes lets you decline gracefully while keeping the conversation open. With expressive cultures like Russian, Greek, or Italian, where a dramatic "no" might actually mean "not yet" and is meant to stimulate discussion, the Negotiated Yes provides a more controlled response that moves the negotiation forward. ### [Best Negotiating Practices for all 5 Stages](https://www.watershedassociates.com/learning-center/best-negotiating-practices-for-all-5-stages/) Best Negotiating Practices for all 5 Stages There are three Best Negotiating Practices that come to play in almost every […] Q: Which Best Negotiating Practices apply to every stage of a negotiation? A: Three Best Negotiating Practices come into play in almost every stage: BNP 3, Listening; BNP 4, Use of Time and Exercise of Patience; and BNP 5, Management of Emotions - both yours and theirs. These aren't stage-specific skills - they're foundational behaviors that effective negotiators rely on from Preparation through Execution. Q: Why do listening, patience, and emotions management matter across all five negotiation stages? A: Because negotiations aren't just about tactics and concessions - they're about people. Listening helps you uncover interests and build trust at every stage. Patience keeps you from rushing into bad deals or damaging relationships. And managing emotions - yours and the other party's - prevents reactive decisions that can derail progress whether you're preparing, exchanging information, bargaining, concluding, or executing. Q: How do effective negotiators develop these three core skills? A: Effective negotiators master listening, patience, and emotions management through continuous practice and deliberate refinement. These aren't skills you learn once and check off a list. The best negotiators treat them as ongoing disciplines, constantly adjusting and improving their behaviors across every negotiation they engage in. ### [Beware of your Assumptions](https://www.watershedassociates.com/learning-center/beware-your-assumptions/) Re-Organize your data Preparation takes time, but you can’t spend all your time digging for information. You have to analyze […] Q: Are assumptions bad in a negotiation? A: No! Making assumptions, despite what you're often told, is a necessary part of any negotiation. It helps you during planning, and it gives you targets for information acquisition during Exchange - the goal of which is to validate or invalidate assumptions you've made during the Prepare stage. That said, while it's not a bad thing to make assumptions, it IS a bad thing to stick with your assumptions despite mounting evidence that they were wrong. You need to realize that your blind spots are real and strong, and be ready to pivot away from your initial assumptions whenever necessary. Q: How should you organize what you know and don't know before a negotiation? A: Start by sorting everything into three buckets: Known Facts, Don't Knows, and Assumptions. After researching the players, fact base, and applicable standards, go back and re-organize. The goal is to move items from the Don't Knows and Assumptions buckets into Known Facts. The more you can convert before bargaining begins, the stronger your position will be. Q: What should you do when you're caught off guard by an unexpected request during a negotiation? A: Don't respond immediately. Buy yourself time - even five minutes. Write down your thoughts about the justifications, benefits, drawbacks, and your interests. Writing forces you to think through the request properly. You might realize, for example, that a delivery delay won't hurt your production but gives you leverage to ask for an earlier shipment next month. Then call back with a response that addresses both parties' interests. Q: How do you anticipate what the other side will do in a negotiation? A: Step out of your shoes and into theirs. Develop Probes to test your assumptions and answer your don't knows. Identify what the other party may know as fact versus fiction, and what they don't know that they need to know. Prepare for the Probes they may ask you and have credible responses ready. One effective strategy is to assign someone on your team to play the role of the other side - plot their strategy, establish their positions, and articulate their objections. Q: Why is a SWOT analysis important in negotiation preparation? A: A SWOT analysis helps you assess leverage by reviewing strengths and weaknesses internally, and opportunities and threats externally. The key is to do a SWOT for both your side and the other side. Most people are used to assessing their own organization, but forget to make assumptions about their counterpart's position. Running both analyses reveals what additional investigation you need, which assumptions need testing, and which strategies need adjusting. Q: What's the risk of unchecked assumptions in a negotiation? A: Assumptions that go untested can lead you into bargaining with a flawed picture of reality. You might misjudge the other side's priorities, overestimate your leverage, or miss sticking points entirely. The discipline of sorting information into Known Facts, Don't Knows, and Assumptions - and then actively working to convert as many as possible into Known Facts - is what separates prepared negotiators from those who get surprised at the table. ### [Bluffing](https://www.watershedassociates.com/learning-center/bluffing/) Recognize Bluffing An unlikely or outrageous statement used to influence, motivate, or drive concessions. A party pretends they will do […] Q: What is bluffing in negotiation? A: Bluffing is an unlikely or outrageous statement used to influence, motivate, or drive concessions. A party pretends they'll do something they have no intention of doing, or pretends to be in a stronger position than they really are. People typically bluff from a position of weakness, not strength - and it's a tactic you need to recognize and defend against. Q: Why do strong negotiators rarely need to bluff? A: The better prepared you are, the more developed your BATNA, and the more confidence you bring to the table, the less you'll ever need to bluff. The goal should be to never bluff - not because it's off limits, but because your hand is simply that strong. When you've done the work in Preparation, you can make bold, defensible opening positions without resorting to fabrication. Q: Why is bluffing so risky in negotiations? A: Very few people are actually good at bluffing - very few people can make it to the World Series of Poker. There are verbal and nonverbal tells, logical inconsistencies, and gaps in story that are often very clear to a sophisticated negotiator. If they detect a bluff, they won't just dismiss it - they'll pounce and take advantage of it. A failed bluff doesn't just cost you that moment; it damages your credibility for the rest of the negotiation. And if the other side calls your bluff, you must follow through on whatever you claimed. Q: How do you defend against bluffing in a negotiation? A: Preparation is your best prevention - the more you know about the other side's interests, people, and circumstances, the easier it is to spot when something doesn't add up. If you suspect a bluff, use a Crunch to show disbelief, or suggest with a smile that bluffing isn't productive here. You can also use the Negotiator's Probe - open-ended questions that expose the bluff and move the discussion to more genuine ground. If the bluff is inconsequential, simply ignore it. ### [BNP 3: Listen Loudly](https://www.watershedassociates.com/learning-center/bnp-3-listen-loudly/) Listening Enhances Understanding of Interests One of the best ways to persuade others is with your ears. Good negotiators are […] Q: What does "listen loudly" mean in negotiation? A: Listening loudly means being an active, visible listener - not just hearing words, but showing the other party you're engaged through nodding, paraphrasing, reflecting, and summarizing. One of the best ways to persuade others is with your ears. Listening itself can become a powerful concession because everyone wants to be heard, and patient listening strengthens relationships and trust. Q: Why is listening so difficult during negotiations? A: Our brains work against us. We speak at 125 words per minute, can listen to 600-800 words per minute, and think at 2,000 words per minute - so there's a lot of mental bandwidth available for distraction. On top of that, factors like background noise, impatience, anxiety about what to say next, arrogance that we already know more, and biases about the other person's credibility all interfere with authentic listening. Q: What are listening filters and how do they affect negotiations? A: Listening filters are internal processes that selectively choose what information to pay attention to, or distort what we hear. They're the barriers we erect when listening. Common filters include the Polar Thinker (sees only black and white), the Psychic (interrupts to finish your sentences), the Zoom Lens (nit-picks one detail and ignores the big picture), the Jerk Factor (writes off someone's opinion before they speak due to bias), and the Me Show (always brings the conversation back to themselves). Recognizing your own filters is the first step to getting past them. Q: What are some active listening strategies for negotiators? A: Ask open-ended Probing questions and listen to the entire answer. Value silence - it's one of the most powerful listening tools. Draw the other person out with phrases like "Tell me more about that" or "How so?" Paraphrase what you've heard: "Let me see if I got this right..." Acknowledge feelings and show understanding. And remember that body language matters - maintain eye contact, nod, lean in. Questions without authentic listening come across as thinly veiled challenges. Questions with authentic listening activate collaboration. Q: How much of communication is actually about the words being said? A: Only about 7%. When we listen, we pay attention to body language (58%), tone of voice (35%), and the actual words (7%). This is why face-to-face negotiation is so valuable, and why authentic listening goes far beyond just processing what someone says. You need to read the full picture - posture, facial expressions, vocal tone - to truly understand what the other party is communicating. ### [BNP 5: Managing Emotions as You Negotiate](https://www.watershedassociates.com/learning-center/bnp-5-managing-emotions-as-you-negotiate/) You can prepare thoroughly, be great with the Negotiator’s Probe, sort out interests and positions, and develop a winning strategy, […] Q: Why is managing emotions so important in negotiations? A: You can prepare thoroughly, master the Probe, sort out interests and positions, and develop a winning strategy, but it won't be enough. In collaborative negotiations, you can't just manage information and processes - you must manage the emotional reactions of people. Heated emotions are most common in the Bargaining Stage, and unmanaged emotions can derail even the best-prepared negotiation. Q: How do you manage your own emotions during a tense negotiation? A: Start by breathing deeply - filling your abdomen with air changes your muscle memory and enables the rational, creative part of your brain (the neo-cortex) to take over. Use positive self-talk to gain perspective: "I've been in a worse spot and turned things around." If possible, change your external physiology - walk around, look out the window, or step out for a moment. Ask yourself productive questions like "How can I improve things?" rather than unproductive ones like "Why does this always happen to me?" Q: Can you calm down the other party when emotions run high? A: No - and that's a critical insight. You cannot calm another person down. Their thoughts got them angry, and only their thoughts can calm them down. Your role is to influence their thinking. Let them vent without suggesting solutions. Ask questions and listen. When you ask a question and they respond calmly, you know they're starting to regulate. If they get emotional again, return to listening mode. Take a break when you sense an opening of calm - not in the middle of the outburst, which can backfire. Q: How do you tell the difference between a Crunch and genuine emotion? A: A Crunch is a deliberate tactic - rolling eyes, laughter, or dramatic reactions designed to get you to counter your own offer without the other side giving anything in return. Real emotion comes from a genuine feeling of being wronged, surprised, or threatened. The distinction matters because you can Counter-Crunch a tactic, but you must manage real emotions with listening, patience, and empathy. Q: What creates a positive emotional environment in negotiations? A: Use greetings and closings that show friendliness and warmth. Build connections. Negotiate the position, not the person. Encourage ideas. Remain calm when under attack. Acknowledge the other side's concerns. Express appreciation often. Smile when it's fitting. And know what to avoid: don't raise your voice, use sarcasm, become passive aggressive, roll your eyes, or fire off emails without thinking. Throughout the entire process, you want positive energy to fill the space. ### [Body Language and other Nonverbal Cues Across Cultures](https://www.watershedassociates.com/learning-center/body-language-and-other-nonverbal-cues-across-cultures/) Nonverbal Communication and Body Language: Safe Skills Eye contact is a very powerful yet unconscious means of communicating, and the […] Q: How does body language differ across cultures in negotiations? A: Nonverbal communication is very powerful but varies dramatically across cultures. Eye contact is a prime example: in Asia, less eye contact is preferred; in the Middle East, more is expected; in the U.S. and Europe, it falls somewhere in between. The key is not to interpret your counterpart's natural style as negative - too little eye contact doesn't necessarily mean deceit or disinterest, and too much doesn't mean aggression. Q: What body language mistakes should you avoid in cross-cultural negotiations? A: Sit properly - avoid leaning back, slouching, crossing a leg over a knee, draping arms across furniture, or stretching. In many cultures, posture directly communicates respect or disrespect. Never extend your feet or show the soles of your shoes to another person, as shoes are considered dirty in many parts of the world. If your host asks you to remove your shoes, do so without hesitation. Never blow your nose in front of others, especially at the table - always excuse yourself. Q: Are hand gestures safe to use in international negotiations? A: The safest rule of thumb is simply "Don't." Okay signs, V for victory, thumbs up, and other common gestures can be meaningless at best and obscene at worst depending on the culture. When you need to point to indicate a person, thing, or direction, use your whole hand rather than your index finger. To beckon someone, wave your open hand starting away from your body and sweeping inward. Q: Why is understanding nonverbal cues important for negotiators working across cultures? A: Nonverbal communication accounts for the majority of what people absorb when they're listening. If you're unaware of cultural differences in body language, you might unintentionally offend your counterpart or misread their signals entirely. Knowing the signals your body may be sending - and being careful when interpreting theirs - is essential to building the trust and rapport that collaborative negotiations depend on. ### [Build Rapport](https://www.watershedassociates.com/learning-center/build-rapport/) The Exchange Stage provides the best opportunity to get to know the other side. Why is this an ideal time? […] Q: Why is the Exchange Stage the best time to build rapport? A: The Exchange Stage is ideal because the "warm-up" comes at a time when you're well armed with information from Preparation, but before the high-pressure tactics common in Bargaining. Defenses are down and emotions are usually on an even keel. Some people consider this warm-up period trivial - don't make that mistake. It's the prime opportunity to engage when conditions are most favorable. Q: What should you be accomplishing while building rapport during the Exchange Stage? A: Exchange is your courtship, and you're doing more than making small talk. You're building a new relationship on trust, acknowledging an existing relationship, re-establishing an old one, or repairing a damaged one. At the same time, you're assessing likeability, competency, and trustworthiness; evaluating their authority and BATNA; testing your assumptions; correcting their false assumptions; and ensuring alignment of interests. And remember - they're making the same assessments of you. Q: How much time should you invest in rapport building before a negotiation? A: It depends on the situation. The real world is full of unexpected events - the price of oil spikes, the boss issues a new imperative, and suddenly time is short. The effort and time you spend on rapport building should be relative to the conditions you're operating under. Sometimes you have the luxury of a thorough warm-up; other times you need to be efficient. But cutting it out entirely is a mistake regardless of the circumstances. Q: Why shouldn't you skip small talk in a negotiation? A: Small talk - casual conversation before getting down to business - is a natural feature in some countries and devalued in others. But don't overlook its importance. It's how you complete your "social homework," introduce teams, find common ground, and begin the process of assessing the other party. Skipping it means missing a low-pressure window to connect before the stakes get higher in Bargaining. ### [Challenge First Offers](https://www.watershedassociates.com/learning-center/challenge-first-offers/) Always be ready to challenge someone’s first offer – even if their first offer is at or better than your […] Q: Why should you always challenge a first offer in a negotiation? A: Three reasons. First, you can almost always do better than their opening offer - almost nobody starts at their Least Acceptable Agreement. Second, more creativity will flow when you push back and explore options. Third, if you accept quickly and easily, the other side will feel they could have done better and will second-guess the deal. Challenging the first offer is better for both parties. Q: What should you do if the other side's first offer is already at or better than your goal? A: Keep negotiating. Do them and yourself a favor. Ask questions. Crunch - react with surprise without making a counter-offer. Tell them you want to explore creative solutions for mutual gain. Counter their offer and try to reach your Most Desired Outcome (MDO). If you simply accept a great opening offer, the other side will quickly realize they should have started more aggressively, and that breeds regret. Q: What if it's too risky to reject a favorable opening offer? A: At a minimum, show some pain. Give their offer value by asking questions and showing consternation. This indirectly acknowledges that they had a good reason to open where they did. Even if you ultimately accept close to their opening position, the process of engaging - rather than immediately saying yes - makes the other side more comfortable with the outcome. Q: How does challenging first offers benefit the long-term relationship? A: The other side will be more comfortable with the solution and the long-term relationship if they were engaged in a genuine process of giving and getting. Deprive them of the ability to win something from you, and they'll second-guess what seemed like a good deal. But let them work for it and earn concessions, and they'll feel satisfied with the outcome - and want to work with you again. ### [Collaborative Negotiation is an Attitude](https://www.watershedassociates.com/learning-center/collaborative-negotiation-is-an-attitude/) How Do You Define Collaborative Negotiation? As you might expect, many definitions exist for collaborative negotiations. For example: “A communication […] Q: What is collaborative negotiation? A: At its simplest, collaborative negotiation is "talking with a common goal in mind." But it's more than a definition - it's an attitude. It's a win-win approach to problem solving and life in general where you're constantly seeking mutual benefits and always asking, "Is there a better way?" Value-based (or interest-based) negotiating lets you get beyond the limits of positional bargaining. Q: When does a win-lose negotiation strategy actually work? A: A competitive, win-lose approach only works when all five of these conditions are true: you have all the power, it's a one-time agreement, you have strong alternatives, you value the outcome more than the relationship, and the other side has no way of retaliating. If any one of those conditions isn't met, a collaborative approach will serve you better. Q: Does collaborative negotiation guarantee the other side will follow through? A: Commitment doesn't guarantee compliance. However, using a collaborative strategy significantly increases your chances for both commitment and compliance. People extend the most consideration to people they respect and trust. If both sides feel they were treated fairly and maintained their self-esteem through the process, they're far more likely to honor the agreement. Q: Why does collaborative negotiation take more time than competitive negotiation? A: Collaborative negotiations require understanding the other side's interests, motivation, and values - and that takes effort. You're not just haggling over positions; you're exploring options for mutual gain. It takes considerably more time, but the return on your investment is always realized. Be patient. The result is an agreement both sides feel good about, which leads to stronger compliance and a lasting relationship. Q: What's the biggest mistake you can make after winning a negotiation? A: Rubbing it in. If your attitude is "when you win, rub it in," you lose. The number one goal in resolving a conflict is to make sure both sides maintain their self-esteem. You win most when the other side thinks they won too. That's not about being soft - it's about building the kind of relationship where both parties want to work together again. ### [Commitment Varies Across Cultures](https://www.watershedassociates.com/learning-center/commitment-varies-across-cultures/) Commitment Expectations You may think the parties are committed to deal terms, and may even have a written agreement in place. […] Q: Why might a counterpart reopen negotiations after a deal is already signed? A: In relationship-based cultures - common in much of the world outside the U.S., Germany, UK, and Canada - the relationship trumps the written agreement. It's not unusual and not considered dishonorable for one party to request modifications after a deal is closed. They assume a solid partner will understand a change in circumstances and at least consider an adjustment. You don't always have to concede, but you should accept the request gracefully and consider the context. Q: What does it mean when a counterpart from another culture asks you for a personal favor? A: In many relationship-oriented cultures, asking for favors - even personal ones like looking after their child studying abroad or helping them shop for a laptop - is a litmus test of your commitment to the relationship. Don't brush these aside lightly if you value the partnership. If you can accommodate the request, do so. If you truly can't, make a polite excuse and promise to find another way to help - then follow through. Q: How should task-oriented negotiators handle relationship-based commitment expectations? A: Understand that a signed contract may not carry the same finality in every culture. Relationship-oriented counterparts may view the agreement as a living document, subject to adjustment as circumstances change. Rather than reacting with frustration or viewing reopened negotiations as a breach of trust, accept requests gracefully and evaluate them on their merits. The relationship, not the paper, is what holds the deal together. Q: How do you handle gifts or bribery in cross-cultural negotiations? A: Define your own policy and follow it consistently. In many cultures, offering tangible rewards or incentives is a normal part of doing business - what some call gifts, others call bribery, with many gray areas in between. If you need to decline, never express shock or disgust. Simply thank them and explain that your company policy doesn't allow you to accept. Maintaining respect for the cultural context protects the relationship even when you can't participate in the practice. ### [Conclude: Stage 4](https://www.watershedassociates.com/learning-center/conclude-stage-4/) Stage 4 is the time for agreement. To reach this stage you long ago determined that interests are aligned and […] Q: What is the Conclude Stage in the negotiation process? A: Stage 4, Conclude, is the time for agreement. To reach this stage, you've already determined that interests are aligned and that reaching agreement is in both parties' interests. It covers gaining commitment, summarizing what was agreed, handling impasse if it arises, and formalizing the deal. Eager to close, negotiators often make the mistake of bypassing critical elements of this stage. Q: Why is summarizing so important during the Conclude Stage? A: Restating what was agreed on throughout bargaining - as each issue is resolved - keeps everyone clear on what was given by each side. Summarizing early and often prevents misunderstandings that can unravel a deal at the finish line. It also feeds directly into the final written agreement, ensuring nothing gets lost or reinterpreted between the handshake and the signature. Q: What should you do if you reach an impasse late in a negotiation? A: Handle it graciously and with skill. Rarely do you get deep into bargaining and not reach closure, but it can happen. A separation can be temporary or permanent, triggered by impasse, deadlock, or a late realization that no agreement is preferable to the available terms. The key is that handling impasse well can often lead the parties back to bargaining and on to agreement. A graceless exit usually closes that door permanently. Q: Should you still show appreciation even if the negotiation doesn't end in a deal? A: Absolutely. Regardless of whether agreement is reached, the parties should say thank you. Sincere appreciation of the other side's efforts and commitment to the process is often overlooked, but it can have a powerful impact - not just on the current negotiation, but on future opportunities. People remember how they were treated, especially when things didn't work out. ### [Country List of Cultural Characteristics](https://www.watershedassociates.com/learning-center/country-list-cultural-characteristics/) The following list is very simplified. If you are planning on doing business in a specific culture, it is important […] Q: What cultural characteristics matter most when negotiating internationally? A: Four key dimensions shape how negotiations play out across cultures: social orientation (task-oriented vs. relationship-oriented), directness (direct vs. indirect communication), expressivity (expressive vs. reserved style), and perception of time (brisk/urgent vs. relaxed). Understanding where your counterpart's culture falls on each dimension helps you adapt your approach and avoid misreading their behavior. Q: How do task-oriented and relationship-oriented cultures differ in negotiations? A: Task-oriented cultures like the U.S., Germany, Australia, and Canada tend to focus on the business at hand, prefer direct communication, and move at a brisk pace. Relationship-oriented cultures like China, Japan, India, Saudi Arabia, and much of Latin America prioritize personal connections, may communicate more indirectly, and take a more relaxed approach to time. Neither style is better - but misunderstanding the difference can stall or derail a negotiation. Q: Should you rely solely on a country's cultural profile when preparing for international negotiations? A: No. Any country-level summary is very simplified. If you're planning to do business in a specific culture, it's important to investigate that culture more thoroughly. Cultural profiles give you a useful starting point and general awareness, but individuals within any culture vary widely. Use the profiles to set expectations and guide your preparation, not as rigid rules. Q: Why does a country's perception of time matter in negotiations? A: A mismatch in time orientation can create serious friction. Negotiators from urgent, brisk cultures like the U.S. or Germany may push for quick decisions and interpret a relaxed pace as stalling or lack of interest. Counterparts from relaxed cultures like China, India, or Saudi Arabia may view that urgency as impatience or even disrespect. Knowing the other side's time orientation helps you set realistic expectations and avoid being manipulated by deadline pressure. ### [Crunch Tip Sheet](https://www.watershedassociates.com/learning-center/crunch-tip-sheet/) The Tactical Negotiator’s Probe The Tactical Negotiator’s Probe, a “crunch,” is a common tactic used across the globe, and is […] Q: What is a Crunch in negotiation? A: A Crunch is a response to an offer that doesn't come in the form of a counter-offer. It's the simplest and most universal form of the Negotiator's Probe. The goal is to encourage the other party to move off their current position and make a concession - without you having to put a number on the table. Crunches can be soft and gentle, moderate, or more aggressive, and they range from verbal phrases to nonverbal reactions. Q: What are some examples of effective Crunches? A: Common verbal Crunches include: "What flexibility do you have?" / "You need to sharpen your pencil." / "That's not what I expected to hear." / "I just can't get there." / "Can you take another look at your numbers?" Nonverbal Crunches include dead silence, a wince or flinch, sucking air between your teeth, or a confused and surprised look. The best Crunches match your personal style and are culturally appropriate for the situation. Q: How should you respond when someone Crunches you? A: Never respond to a Crunch with a concession - that turns it into a unilateral, or free, concession. Instead, challenge their Crunch with an equally assertive or greater counter-Crunch. Effective counter-Crunches include: "What can you work with?" / "What do you need?" / "Give me a number." / "What are you authorized to approve?" / "Give me something I can take back." The goal is to redirect the pressure back to the other side. Q: Can Crunches backfire in a negotiation? A: Yes. While Crunches can lighten the mood and generate creativity, they can also be overused and damage the relationship. Only use Crunches that match your style and are culturally appropriate for the parties involved. A Crunch that lands well in New York ("You're hurting me" or "Talk to me") might fall flat or offend in Asia, where a more indirect approach like "That will be very difficult" is the norm. ### [Crunching](https://www.watershedassociates.com/learning-center/crunching/) A simple but very popular and universal Probe is known as the “Crunch,” or the “tactical probe.” A Crunch is […] Q: What makes the Crunch different from other types of Probes? A: The Crunch is unique among Probes because it's specifically designed to capture a unilateral concession - getting the other side to move off their position without you making a counter-offer. Most Probes are designed to elicit information that helps both sides find a mutual solution. The Crunch is more tactical, aimed at generating movement, creativity, and ultimately better terms. Q: When and how should you use a Crunch in negotiations? A: Crunches work best in the Exchange and Bargain Stages. Select one that fits your personal style, respects the relationship and culture, and is consistent with the situation. Using it sparingly is more effective - overuse can damage the relationship. Once you Crunch, give the other party time to respond. If it works, Crunch again. Uses range from encouraging more discussion to objecting to an offer to maneuvering the other side off a fixed position. Q: Why should you never respond to a Crunch with a concession? A: Because it becomes a unilateral, or free, concession - and unilateral concessions erode your credibility. If you move off your position just because someone said "You need to sharpen your pencil," you've signaled that your original position wasn't well-founded and that pressure alone is enough to make you give ground. Instead, challenge every Crunch with an equally assertive counter-Crunch that redirects the pressure. Q: How long should you use silence as a Crunch? A: Five to seven seconds of silence is effective as a Crunch. It creates pressure for the other side to fill the gap, often with a concession or additional information. However, silence beyond that can be perceived as confrontational rather than tactical. Like all Crunches, it needs to match the situation and respect the relationship. ### [Deadlines](https://www.watershedassociates.com/learning-center/deadlines/) Recognize Deadlines Imposing real or arbitrary time limits on decision making. Deadlines come in many forms and at many points […] Q: How are deadlines used as a tactic in negotiations? A: Deadlines impose a real or arbitrary time limit on decision making, and they can appear at many points throughout a negotiation. They can be justified or arbitrary, absolute or changeable. Sometimes they're used to force a decision with the goal of gaining advantage. Some deadlines are beyond either party's control, but others are deliberately imposed as a pressure tactic. Q: When is it appropriate to use a deadline in collaborative negotiations? A: Deadlines are effective in collaborative negotiations when the basis for the deadline is justifiable and you use them sparingly with respect to the relationship and cultural context. The key word is justifiable - if you can explain why a decision needs to be made by a certain time and the reasoning holds up to scrutiny, the deadline is a legitimate tool to move things forward. Q: How do you defend against an arbitrary deadline in a negotiation? A: Start by Probing with open-ended questions to determine if the deadline is real: "How did it arise?" "What happens if it isn't acceptable?" "What else can we do?" If it appears arbitrary, call it out in a face-saving way and offer to discuss an appropriate timetable instead. Then treat the deadline like a proposal and counter-offer. If you do agree to the time limit, use "Yes, if..." to get something in exchange for accepting that pressure. Q: How can you prevent deadline tactics from being used against you? A: Discuss any anticipated or possible deadlines when you develop the joint agenda at the start of the negotiation. Getting potential time constraints on the table early takes away the other side's ability to surprise you with a sudden deadline later. When both parties have agreed to a timetable upfront, an arbitrary deadline introduced mid-negotiation is much easier to push back on. Q: Is it ever risky to ignore a deadline in a negotiation? A: Yes. Ignoring a deadline - especially a real one that isn't arbitrarily imposed - carries the risk that the time-limited proposal is withdrawn from consideration entirely. Not every deadline is a tactic. Some are genuine constraints, and dismissing them can cost you the deal. That's why Probing to understand whether a deadline is justified or arbitrary is so important before deciding how to respond. ### [Demonstrate Fairness](https://www.watershedassociates.com/learning-center/demonstrate-fairness/) BNP 18: Use the Power of Legitimacy and Objective Criteria Key aspects to effective negotiations are: Finding interests − why […] Q: Why is demonstrating fairness important in negotiations? A: Standards of Fairness allow you to justify your positions and objectively assess your counterpart's positions. Without an agreed-upon standard, both sides are arguing from subjective, self-satisfying positions with no common measuring point. Demonstrating fairness can even turn a competitive negotiator into a collaborator because it shifts the conversation from "what I want" to "what's reasonable." Q: What are the three types of Standards of Fairness in negotiation? A: Legitimacy, Objective Criteria, and Independent Standards. Legitimacy is what's deemed acceptable because it makes good sense - things like industry standard terms, past agreements, or company policy. Objective Criteria are data-based and fact-based, such as market value, replacement cost, or should-cost analysis. Independent Standards are measures from neutral authorities like CPI, WTO rulings, commodity indices, or published government forecasts. Q: Why is the "power of the written word" so effective in negotiations? A: Standard terms and conditions, company policies, and price schedules are often perceived as more legitimate when they're written down than if you simply state them verbally. Written documents have a tendency to make things appear non-negotiable without you having to say "No." It's often the perception of legitimacy that carries weight, not the actual finality of it. A printed rate schedule feels more authoritative than a spoken number, even if both are equally flexible. Q: How should you respond when the other side uses a Standard of Fairness you disagree with? A: Probe to explore for exceptions, arbitrariness, parameters, and creative options. Ask who issued the standard and whether it's truly relevant to your specific situation. Prevailing standards and criteria differ depending on country, culture, industry, market pressures, and timing. If their standard doesn't hold up, share your own legitimate or objective criteria to establish a measuring point both parties can agree to. Q: When should you introduce Standards of Fairness in a negotiation? A: During the Exchange Stage or early in the Bargain Stage. Share your legitimate or objective criteria to establish the measuring point for the issue before positions harden. If your counterpart hasn't offered any criteria, take the initiative. Whoever frames what "fair" looks like has a significant advantage in shaping the outcome. ### [Develop a Joint Agenda](https://www.watershedassociates.com/learning-center/develop-a-joint-agenda/) The agenda is the bridge that helps you cross over from the Exchange Stage to the Bargaining Stage. You will […] Q: Why is developing a joint agenda important before bargaining? A: The agenda is the bridge from the Exchange Stage to the Bargaining Stage. It serves four key purposes: it lets you complete your homework, helps you avoid single-issue negotiations, makes it more likely the other side comes prepared and with authority, and prevents a "surprise attack" - if they bring up an issue that's not on the agreed agenda, you can redirect them to discuss it at the next meeting. Q: Why should you start with easier issues on the agenda? A: Starting with easier issues builds rapport and gets the other side invested in the process. Think of it like standing in a ticket line - the longer someone has been waiting, the less likely they are to walk away. The same psychology applies in negotiation. Starting with difficult issues can end things quickly by raising sore spots and past problems before the energy for creative problem-solving flows. And importantly, "easy" doesn't mean "small" - many bigger, more substantive issues are actually easier to discuss. Q: Should you save the hardest issues for last on the negotiation agenda? A: No. Sandwich the difficult issues between easier ones - easy, difficult, easy. Saving the hardest issues for last means you're tackling them when everyone is tired, which is the worst time for creative problem-solving. There's also a practical risk: what if the difficult issue turns out to be a deal killer? You'd have invested significant time and effort only to find out you need to execute your BATNA. Q: Whose perspective matters when deciding which issues are "easier"? A: The other person's perspective, not yours. You're starting with issues that are easier for your counterpart to discuss. This keeps them comfortable, builds their investment in the process, and creates momentum before you tackle the topics that require more creativity or where disagreement is more likely. Q: How does a joint agenda protect you from surprise tactics? A: A complete, agreed-upon agenda prevents the other side from introducing issues you haven't prepared for. If they raise something that's not on the agenda, you can simply refer them back to what was agreed and recommend discussing those items at the next meeting. It acts as a compass that keeps the conversation on course and gives you a legitimate tool to push back on unexpected demands. ### [Direct Communication vs. Indirect Communication](https://www.watershedassociates.com/learning-center/direct-communication-vs-indirect-communication/) What is the best way to communicate with others? In cultures with direct communication style (which tend to correlate with […] Q: What's the difference between direct and indirect communication styles in negotiation? A: In direct cultures like the U.S., Australia, Germany, and Canada, literal truthfulness and efficiency are highly valued - saying "No" or "I don't know" is considered honest and respectful. In indirect cultures like Japan, China, India, and Saudi Arabia, directly communicating negative information is seen as impolite, even in business. Polite evasions or excuses are used instead, often recognized by both parties as diplomatic strategies. Neither style is wrong, but intense conflict can occur when the two sides don't understand each other's approach. Q: How should direct communicators adapt when negotiating with indirect cultures? A: Soften your statements and ease into topics gradually. Avoid outright demands like "Why?" or "Are you on board or not?" Instead, try "Could you give us a little background on that?" or "How do you see this playing out?" Learn to listen between the lines - indirect people couch important information in softer terms you may miss if you're not paying close attention. And be patient if you don't get answers on the spot; relationship-oriented groups often need to confer privately before responding. Q: How should indirect communicators adapt when negotiating with direct cultures? A: Understand that direct people are far more reassured by sincere, clear answers than by a gentle letdown. Specific questions or requests for clarification aren't aggression - they're a sign of discomfort that the situation isn't clear. Make sure your counterpart fully understands the implications of what you're saying, because direct people often feel they have to work very hard to interpret indirect communication and it can be exhausting. If you can't respond immediately, reassure them you'll answer soon and give a time frame. Q: Why can mismatched communication styles cause conflict in negotiations? A: Direct communicators may interpret indirect responses as evasive, insincere, or even dishonest. Indirect communicators may find direct statements blunt, aggressive, or disrespectful. Without awareness that these are simply different cultural approaches to the same goal - solving problems and reaching agreement - both sides can draw conclusions that damage trust and derail the negotiation entirely. ### [Dominate Stress During Negotiations](https://www.watershedassociates.com/learning-center/dominate-stress-during-negotiations/) Two casualties of stress are memory and creativity, fundamental requirements for success in negotiating. “Thinking outside the box” can save […] Q: How does stress affect your performance in a negotiation? A: Stress attacks two things you can't afford to lose at the bargaining table: memory and creativity. Under extreme stress, the ability to handle complex tasks dissolves, long-range considerations get sacrificed due to impaired judgment, and the tendency to make a premature deal increases. You may experience "emotional flooding," which leads to cognitive distortions. The greater the stress, the higher the chance you'll choose a risky alternative just to make it stop. Q: What are some practical techniques for managing stress during a negotiation? A: Three proven methods work in the moment. First, Dr. Andrew Weil's breathing exercise: inhale to the count of four, hold to seven, exhale with a "whoosh" to eight, and repeat three times - it takes about two minutes and alters your stress response. Second, visualization - sit quietly and bring to mind a peaceful place, concentrating on all your senses. Third, shift your brain activity away from the stress center by focusing intently on a detailed object, then closing your eyes and recreating the image mentally. For any of these, leave the room and find a quiet spot for a few minutes. Q: Is all stress bad during negotiations? A: No. A healthy level of stress actually creates motivation by presenting a challenge that gets your juices flowing. It's the unhealthy level or form of stress that lowers decision-making ability and wears you out. The goal isn't to eliminate stress entirely - it's to keep it at a level where it sharpens your focus rather than destroying it. Q: Why does managing stress lead to better negotiation outcomes? A: The best negotiators are creative, patient, and calm. When you master stress and dominate your emotions, others enjoy working with you more. And there's a significant payoff: people always extend the most consideration - that is, give their best deals - to people they like and trust. Losing control under stress doesn't just hurt your performance in the moment; it damages the relationship that produces results over time. ### [End-runs](https://www.watershedassociates.com/learning-center/end-runs/) Recognize End-runs After being rejected, taking a proposal directly to the other side’s stakeholders or higher authority, or other third […] Q: What is an end-run in negotiation? A: An end-run is when one party, after being rejected, takes their proposal directly to the other side's stakeholders, higher authority, or third parties to pressure their counterpart into adjusting their position. It's essentially going over someone's head. While it can be a common tactic in sales to build desire before formal negotiations begin, using it during an active negotiation puts the relationship at serious risk. Q: Should you use an end-run in collaborative negotiations? A: No. End-runs are by nature confrontational, not collaborative. They undermine trust and signal that you don't respect the other party's role or authority. If you feel compelled or are required to go above your counterpart, consider advising them first so you can maintain trust. Surprising them with an end-run is one of the fastest ways to damage a negotiating relationship. Q: How do you defend against an end-run? A: Prevention is critical because there's no real defense once an end-run is in motion. The key is to gain the input and buy-in of your stakeholders early in the negotiation cycle and keep them informed of progress throughout. When your stakeholders understand the process and strategy, any attempt by the other side to go around you will be rebuffed. An end-run only works when the target isn't expecting it. Q: When is an end-run considered an appropriate tactic? A: An end-run is most appropriate in competitive negotiations during the Bargain or Conclude stages, and even then it carries significant relationship risk. In sales, it can be a legitimate tool to build awareness and desire for a product or service among stakeholders before formal negotiations begin. But in an ongoing negotiation where you've already established a working relationship, an end-run is a last-resort tactic that signals you've given up on collaboration. ### [Everything is negotiable](https://www.watershedassociates.com/learning-center/everything-is-negotiable/) BNP 1: Everybody is a Negotiator and Everything is Negotiable Why Negotiate? Collaborative negotiating is the primary focus of most decision […] Q: Is everything really negotiable? A: Assume everything is negotiable until proven otherwise. What wasn't negotiable yesterday may be today, and what's not negotiable today may be tomorrow. Some things by themselves may appear non-negotiable, but a good negotiator, after patiently probing, listening, and offering creative solutions that incorporate the other party's interests, can often find a way to make it negotiable. Beware of your assumptions - don't make them truths until you test them. Q: Why has negotiation become more important in modern business? A: The need for negotiated solutions has increased due to a greater focus on the global marketplace, a continued trend toward longer-term relationships and partnerships, an information explosion driven by the Internet, AI, and data mining tools, reliance on fewer suppliers and customers, and inevitable business cycles. Collaborative negotiation has become the preferred approach to productive decision-making and the key to conflict avoidance. Q: Why does collaborative negotiation lead to better compliance? A: Collaboration is inherently inclusive of people and ideas, which generates buy-in to satisfying solutions. You may get agreement without full collaboration, but a higher level of involvement by both sides is proven to result in a higher level of compliance. Negotiating with mutual satisfaction in mind also builds trust, and people always extend the most consideration to people they like and trust. Q: Should you negotiate everything? A: No. Everyone needs to know how to negotiate to get what they want, but don't negotiate everything - you'll wear yourself and your resources out. The skill is knowing when to negotiate and when not to. But when something matters to you, whether in business or personally, your superior skills as a negotiator can tip the scale in your favor, especially when the other side has more power, money, or information. ### [Execute: Stage 5](https://www.watershedassociates.com/learning-center/execute-stage-5/) The most important thing to remember about stage 5 of the negotiation framework is that when you execute, or implement […] Q: What is the Execute Stage in the negotiation process? A: Execute is the fifth and final stage of the negotiation framework, where you implement the terms of the agreement. At this point you have commitment and the form of agreement necessary to support your arrangement. But execution isn't just an administrative step - it requires the full negotiation framework and all 22 Best Negotiating Practices all over again, because implementation brings its own challenges that need to be navigated collaboratively. Q: Why do you need negotiation skills during the execution of an agreement? A: Because execution is where the real work begins. Changes in circumstance, challenges in the relationship, and contract renewals will all require the same collaborative approach that produced the original agreement. The skills you used in Preparation, Exchange, Bargaining, and Concluding don't get shelved once the deal is signed - they become the foundation for how you manage the ongoing relationship. Q: Does the negotiation relationship end once an agreement is reached? A: No - the collaboration has only just begun. The relationship you built throughout the negotiation process is the basis for future agreements with the other side. Both parties now have a foundation of trust and a shared experience of mutual benefit. That foundation gives both sides renewed vigor to face whatever comes next - whether it's changing circumstances, new challenges, or future contract renewals. ### [Expressive vs. Reserved Style](https://www.watershedassociates.com/learning-center/expressive-vs-reserved-style/) How will emotions be perceived in negotiations? Another point to keep in mind regarding communication is that cultures vary in […] Q: How do expressive and reserved communication styles differ in negotiations? A: Reserved cultures like Chinese, Japanese, English, and northwestern Europeans view open displays of emotion as foolish, inappropriate, and immature - even at moments of great frustration or elation. Expressive cultures like Mediterranean, Arab, Russian, and Latin American include emotion as a natural part of the process, and a total lack of emotion from their counterpart may feel like a lack of sincerity and trust. Neither style is right or wrong, but misreading the other can damage the relationship. Q: How should reserved negotiators adapt to an expressive counterpart? A: Don't be overwhelmed by what you see, and don't interpret the "drama" as naivete or a lack of sophisticated business skills. For expressive people, displaying emotion is an offer of trust. If moving toward a more expressive style yourself feels difficult, at least smile and show appreciation for your partner's willingness to communicate openly. Dismissing their emotional expression is dismissing their trust. Q: How should expressive negotiators adapt to a reserved counterpart? A: Don't interpret reserved behavior as snobbishness, coldness, or lack of interest. Reserved people communicate that way out of respect for etiquette and prudence - they don't want to make a bad impression. If you suspect you're overwhelming them, turn down the volume a bit, allow them time to talk, and be patient. Often in more relaxed settings or as the relationship matures, you'll see the personal side you're looking for. Q: Why is understanding emotional expression styles important for cross-cultural negotiations? A: Because mismatched styles lead to mismatched trust signals. An expressive negotiator may see a reserved counterpart's composure as insincerity. A reserved negotiator may see an expressive counterpart's emotion as unprofessional. Both readings are wrong, and both can undermine a deal. Understanding how emotion is perceived across cultures helps you read your counterpart accurately and adapt your own style to build trust rather than erode it. ### [Fill in the Knowledge Gaps](https://www.watershedassociates.com/learning-center/fill-in-the-knowledge-gaps/) No matter how good your research in the Preparation Stage, there are just some things that can’t be discovered until […] Q: Why is the Exchange Stage critical for filling knowledge gaps? A: No matter how good your research in the Preparation Stage, some things can't be discovered until you start discourse with the other side. The Exchange Stage is where you get answers to your Don't Knows, verify the assumptions you made during Preparation, and learn what assumptions the other side has made about you that might need correcting. It's your opportunity to move items from the Don't Knows and Assumptions buckets into Known Facts. Q: What kind of information should you be probing for during Exchange? A: Focus on things that are difficult to research on your own: who their stakeholders are, their lines of authority (who can actually make decisions and whether that person will be at the bargaining table), any timing concerns they have, and their BATNAs. Come prepared with specific Probes designed to uncover these answers - don't leave it to chance or hope the information surfaces on its own. Q: Why can't you rely on assumptions from previous negotiations? A: Because people, processes, goals, and incentives are dynamic. An assumption proven true in one negotiation may not hold in the next. The business environment changes constantly, and your assumptions won't always keep pace. Over time the questions may remain the same, but the answers will likely change. That's why you need to test and retest assumptions every time - treating them as hypotheses to validate, not facts to rely on. Q: Why is it important to learn the other side's assumptions about you? A: The other side will base their bargaining strategy on assumptions they've made about you and your interests. If those assumptions are wrong, they may take positions or make offers that don't align with reality, and you may miss opportunities for mutual gain. Learning their assumptions during Exchange lets you correct misconceptions early, before they harden into positions that are harder to move during Bargaining. ### [Final Written Agreements](https://www.watershedassociates.com/learning-center/final-written-agreements/) The individual negotiators are not typically the ones to prepare final written agreements. But understanding the basics of those agreements […] Q: Why should negotiators understand the basics of written agreements? A: Individual negotiators aren't typically the ones preparing final written agreements, but understanding the basics prevents costly mistakes. You might give away concessions in Bargaining that are more significant than you realized, fail to bargain for something that threatens the final agreement, or neglect to specify objective criteria for approval. Familiarity with agreement fundamentals helps you negotiate terms that hold up on paper. Q: Why is there an advantage to being the side that drafts the final agreement? A: You can use language that's clear to your team and stakeholders. You'll think of minor terms that weren't covered in the negotiation and can include them. And the other side is less likely to balk once things are in writing, even if it isn't exactly how they would have written it. That said, never try to change the essence of the agreement in the draft - you'll instantly lose trust that was hard won. Q: How can attorneys derail a negotiation during the Conclude Stage? A: When legal departments require certain protections that weren't negotiated during Bargaining, attorneys who weren't part of Exchange or other stages - and who haven't built trust with the other side - start debating terms and can derail a relationship you invested in heavily. The solution is to include support department stakeholders like legal, contracting, risk management, and finance before you enter negotiations, and share your standard terms and conditions during a positive stage so concerns become part of the negotiation early. Q: What should a final written agreement cover beyond the negotiated terms? A: Beyond what each side agreed to do or not do, you want to cover delivery terms (and what happens if they're missed), deadlines, circumstances under which the agreement can be modified, performance incentives and penalties, items specifically agreed to be excluded, administrative procedures, payment timing and conditions, insurance and warranties, a dispute resolution process, publicity provisions, and term/termination/extension clauses. Get legal review - the cost of curing an ill far exceeds the cost of having a lawyer review before signing. ### [Four Critical Assessments](https://www.watershedassociates.com/learning-center/four-critical-assessments/) There are four assessments you want to make as you go about the Exchange Stage: trustworthiness, competency, likeability, and alignment […] Q: What are the four critical assessments you should make during the Exchange Stage? A: Trustworthiness, competency, likeability, and alignment of interests. The Exchange Stage is the valuable time when each party makes critical judgment calls about whether to enter into Bargaining, and if so, with what strategy. These four assessments guide that decision - and remember, the other side is making the same assessments about you. Q: How do you assess trustworthiness during a negotiation? A: Ask questions to which you already know the answer. If you get a correct response, it's an indication of trustworthiness. If you get an incorrect answer, there are three possibilities: they have wrong information, they're deceitful, or they didn't understand the question. Ask the same question three more times in different ways and assess the answers. If you determine they're deceitful, you probably don't want to proceed to Bargaining and should consider your BATNA. Q: Why is likeability an important assessment in the Exchange Stage? A: Likeability matters because friends try to make things work for the benefit of both parties and typically don't sue each other. The Exchange Stage is when friendship building begins. Do your "social homework" so you know who you're dealing with and try to connect at a deeper level. Liking and being liked creates a foundation where both sides are motivated to find solutions rather than fight over positions. Q: When should you start assessing whether interests are aligned? A: During the Exchange Stage - earlier than most people think. Although it may seem premature, getting a sense of whether your interests align with theirs helps you determine whether you'll be able to align goals in the next stage, Bargaining. If interests are fundamentally misaligned, it's better to know that early rather than invest time in Bargaining that won't lead to a viable agreement. ### [Gaining Commitment](https://www.watershedassociates.com/learning-center/gaining-commitment/) What is commitment? Commitment is what each side has agreed that it will do or not do. Commitments should be: […] Q: How do you know when it's the right time to conclude a negotiation? A: Conclude when you have what you want and the other side feels the same way, as long as negotiations are still positive. Before closing, ask yourself: Will more bargaining benefit us? Were any issues put aside that we forgot to return to? Would compliance be an issue if we started executing now? Do both sides feel a sense of valuable accomplishment? If things are positive, it may also be a good time to agree on a dispute resolution procedure - prepare for disagreement while the parties are in agreement. Q: Why should you never close a negotiation on a negative note? A: If a sense of valuable accomplishment isn't shared by both sides, you're more than likely to be back at Bargaining or in a contract dispute sooner than you think. Dissatisfied parties tend to raise issues again when the final written agreement is being prepared, when performance lags, or when the situation deteriorates to litigation. If you sense negativity, try raising a minor undecided issue to reset the tone, directly ask the other side how they feel about the agreement, or suggest a break and return with a fresh perspective. Q: What tactics can push you into a premature agreement? A: Watch for scarcity assertions ("there's competition for this"), artificial deadlines, time-limited incentives ("sign today for a discount"), ultimatums, walkouts, and the classic "split the difference" offer. Also beware of over-commitment - the feeling that you've invested so much time that any agreement is better than none. Splitting the difference isn't always fair, especially if opening offers weren't balanced. Consider compromising only at the very end, after genuine bargaining has played out. Q: What are "carrots" and "sticks" for gaining commitment? A: When mutual satisfaction of interests alone isn't enough, you can use positive reinforcements (carrots) or penalties (sticks). Carrots include offering a simultaneous exchange, making agreement dependent on mutual performance, rewarding willingness to act, memorializing agreed terms in writing, or making a public announcement. Sticks include building in penalties for failure to agree, imposing risk of loss of face or reputation, and strengthening your BATNAs and making them known. The most widely accepted stick is a written contract enforceable by law. Q: What makes a commitment durable and reliable? A: Commitments should be practical (reasonable and attainable), durable (not subject to every changing whim), understood by all (clear performance expectations), and verifiable (able to confirm through monitoring). The most promising way to achieve all four is through mutual satisfaction of interests, which requires a collaborative process that builds enough trust for both sides to reveal their true interests. ### [Good Cop/Bad Cop](https://www.watershedassociates.com/learning-center/good-cop-bad-cop/) Recognize Good Cop/Bad Cop Insinuating you are empathetic to the other side’s position, but insisting you must consult a member […] Q: What is the Good Cop/Bad Cop tactic in negotiation? A: It's when a negotiator who wants to say "No" blames it on a "Bad Cop" - a team member, boss, or authority figure who constantly objects or won't agree - as a way to preserve the relationship and keep negotiations positive. It comes in three forms: both Good Cop and Bad Cop in the room together, Bad Cop visits early then leaves while Good Cop references them, or Good Cop alludes to an absent Bad Cop ("I don't think Legal would ever approve this"). Q: How can Good Cop/Bad Cop be used in collaborative negotiations? A: By alluding to an absent Bad Cop when you need to say "No." Used properly and sparingly, it helps you avoid saying "No" directly, buys you time to think, and preserves the relationship. Common Bad Cops include attorneys, auditors, government regulators, bosses, board of directors, partners, or external pressures like the market or economy. There's minimal relationship risk because you're redirecting the rejection away from yourself. Q: How do you defend against Good Cop/Bad Cop? A: You can't prevent it, but you can defend against it. Call it out in a face-saving way: "You're not playing Good Cop/Bad Cop, are you?" said with a smile. Ask to speak directly to the Bad Cop so you can understand the objection. Warn that you'll bring in your own Bad Cop if it continues. Or play along and sincerely Probe the Bad Cop's rationale: "Tell me about why they feel that way" or "What's the closest alternative they'll agree to?" Q: When does Good Cop/Bad Cop backfire? A: When it's overused. If you constantly blame an absent authority for every rejection, the other side will eventually see through it and lose trust. It can also backfire if both the Good Cop and Bad Cop are in the room and the performance isn't convincing - experienced negotiators will recognize the dynamic immediately and may call it out, putting your team on the defensive. ### [Handling Objections: When They say “No”](https://www.watershedassociates.com/learning-center/handling-objections-when-they-say-no/) An objection, honestly stated, is just another way of inviting you to satisfy a concern or need that you did […] Q: What should you do when the other side says "No" in a negotiation? A: Don't respond with a concession, don't argue, and don't retreat in distress. An honest objection is just another way of inviting you to satisfy a concern or need that you didn't address earlier. Hearing "No" is your opportunity to create value. Engage them by asking questions to determine if the objection is real, what interest wasn't served by your proposal, and whether both parties are using the same standards of reasonableness. Q: What questions should you ask when you hear "No"? A: Probe with questions like: "If we can find a solution on this one item, can we get a final agreement today?" Use the hypothetical "Yes, if..." approach: "What if we..." Ask them to describe their ideal outcome: "In a perfect world, what would this look like to you?" Sometimes you only need to acknowledge the difficulty: "I understand this is going to be difficult for all of us." Or invite their creativity: "What ideas do you have for a solution to this challenge?" Q: When does hearing "No" mean you need to go back to preparation? A: Ask yourself: Do you need more information about them? About your own solution, position, product, organization, or market? About stakeholders? Are you talking to the right person? Maybe the solution genuinely isn't a good fit and you should execute your BATNA instead. A "No" prompts both self-reflection and engagement - sometimes the answer is to Probe further, and sometimes it's to step back and prepare more thoroughly. ### [Hollywooding](https://www.watershedassociates.com/learning-center/hollywooding/) Recognize Hollywooding Declaring that an issue or concession is extremely important so that you can gain more credit or advantage […] Q: What is Hollywooding in negotiation? A: Hollywooding is declaring that an issue or concession is extremely important so you can gain more credit or advantage when you give it up. It's a type of bluff - not about whether you'll do the trade, but about the value of the trade. For example, if the other side asks to push delivery by two weeks and it's actually no problem for you, rather than saying so, you react as if it's painful and then agree in exchange for something else you actually want. Q: Can Hollywooding be used in collaborative negotiations? A: Yes. Used sparingly and with respect to the relationship, it can be an effective tool to earn credit for a concession you didn't really care about. There's minimal risk of losing trust because it's almost impossible for the other side to know for sure whether the concession was actually valuable to you. The key is sparingly - if you Hollywood every concession, you'll eventually get caught and lose credibility. Q: How do you defend against Hollywooding? A: Use the Negotiator's Probe. Ask open-ended questions to determine why the concession is so important to them. Dig into the specifics: why does this particular issue matter? What happens if it's not resolved this way? The more you probe, the more likely you are to reveal a more accurate assessment of its true value and avoid giving up something meaningful in exchange for something that cost them nothing. ### [How to Prepare](https://www.watershedassociates.com/learning-center/how-to-prepare/) Begin by sitting down in a quiet space. Affirm to yourself and team members that you will be effective listeners. […] Q: What's the best way to start preparing for a negotiation? A: Begin by sitting down in a quiet space. Affirm that you and your team will be effective listeners and skilled, open-minded negotiators. Seek to understand all the interests at stake from the start. Then delve into a fact-finding mission - don't underestimate how valuable this investigation time and deep creative thinking can be to the entire negotiation outcome. Preparation can be fun and entertaining, especially when access to information is easier than it's ever been. Q: What are the key concepts to focus on during negotiation preparation? A: Four things will help you move outside your traditional boundaries: make assumptions that you can test later, investigate red flags and assumptions using many sources and digging deep, analyze strengths, risks, and connections, and be creative about how to solve the other side's interests. Think broadly and become an explorer. The goal isn't just to prepare your own position - it's to understand the full landscape of what both sides need. ### [How to Start Building Rapport](https://www.watershedassociates.com/learning-center/how-to-start-building-rapport/) Build personal and professional alignment before you talk about the issues. You can use these reference points throughout the negotiation […] Q: What are affiliations and why do they matter in negotiations? A: Affiliations are the connections you have in common with others - areas of commonality that nourish the relationship. You're not negotiating with a company; you're negotiating with a person. Finding shared connections around things like birthplace, universities, sports, hobbies, travel experiences, or children creates personal alignment before you talk about the issues. Research shows you're six times more likely to reach an agreement with people you like. Q: How much time should you spend building rapport before negotiating? A: As much as it takes, but keep perspective. The time you spend should be proportional to the situation and desired relationship. Four factors determine how much warm-up is needed: the stage of the relationship (new, renewed, or long established), the anticipated difficulty of the issues, the amount of information you still don't know or are assuming, and the culture of the parties involved. More unknowns mean more rapport is needed. Q: Why is rapport building especially important in cross-cultural negotiations? A: In many relationship-oriented cultures across Asia, Africa, Latin America, and the Middle East, business is conducted only with people known and trusted. They can't do business with you until you go through the rituals of Exchange, which depending on the culture and stage of the relationship could take hours, weeks, or months. Fast-paced Western negotiators who push to "get down to business" frustrate counterparts who value relationships over contracts. You can't lose by taking the time to build a relationship. Q: How do you build rapport in emails and phone calls, not just in person? A: Add the personal touch. Open every email with a pleasant sentence - "Hope this finds you well," "Glad we had time last week to cover so much," or reference something personal like an upcoming vacation they mentioned. Soften them up before you press on with business. These reference points can be used throughout the negotiation and the relationship to initiate conversations, interject humanity in stressful encounters, and keep the connection alive between meetings. ### [Impasse](https://www.watershedassociates.com/learning-center/impasse/) It is unusual to reach the Conclude Stage of negotiations, where all major issues have been resolved, and find yourself […] Q: What causes impasse in a negotiation? A: Impasse occurs when an obstacle - an idea, a position, or a person - stands in the way of agreement. It's often an indication you haven't flushed out all the interests. You may have misread the situation, been deceived about a party's interests, or simply hit an issue where positions can't align. Impasse can be temporary and doesn't have to lead to deadlock, which is a more permanent state of disagreement. Q: What strategies can help overcome impasse? A: Several approaches work depending on the situation: don't cut off communications, even if things look dead - leave room for future contact. Apologize if appropriate. Make a small open move of graciousness and see if they reciprocate. Let enough time pass for both sides to reassess. Throw something new into the negotiation to recharge bargaining. Change the negotiators (change both to save face). Use a team without authority to develop resolutions for the lead negotiators. Or bring in a neutral third party to facilitate. Above all, handle impasse gracefully to avoid deadlock. Q: How should you handle a walkout during negotiations? A: First, assess the likelihood of finality. A genuine collaborative negotiator who walks out is very frustrated - a schemer is more likely putting on a show. If you want bargaining to continue, apologize unequivocally for how things got out of control, whether you walked out or were walked out on. As a last resort, offer to change the people on both sides to save face and preserve the relationship. Q: When is it better to accept no deal than to push through impasse? A: Sometimes no commitment is better. Walk away if the other side only wants terms beneficial to them (win-lose), if circumstances changed or were manufactured through "bait and switch," if they never really wanted an agreement and entered negotiations for ulterior motives (public relations, learning market value, leveraging their positioning), or if the ethics of negotiating are viewed so differently by each side that compliance will be a constant battle. Get out while you can. ### [Information Exchange: Stage 2](https://www.watershedassociates.com/learning-center/information-exchange-stage-2/) Stage 2 is the Information Exchange step in the framework. While the overriding goal of this stage is to build […] Q: What is the Information Exchange Stage and why is it important? A: Stage 2 is the Information Exchange step in the negotiation framework. While the overriding goal is to build trust, there are six goals to accomplish: develop rapport, learn their interests, authority level, and BATNAs, assess trustworthiness, competency, likeability, and alignment of interests, fill in knowledge gaps, make a Go/No-Go decision, and negotiate the agenda. How you go about Exchange significantly impacts the strength of your relationship and the level of trust you reach. Q: Why is trust the primary goal of the Exchange Stage? A: With a high level of trust, you'll be given better access to the other side's interests and begin to see opportunities for value creation. The sub-text that emerges - what's revealed by the way each side engages during Exchange - frames the relationship and level of trust between the parties. That trust is what unlocks creative solutions in the Bargaining Stage. Q: Can the Exchange Stage change your negotiation strategy? A: Absolutely. Information Exchange is sometimes the most fun stage because it's all about getting to know the other side and testing your assumptions before bargaining. Many times you discover new information that changes your MDO, Goal, and LAA. The information you gather - substantive business or legal information, personal information, cultural awareness - can unlock opportunities for additional creative solutions and lays the groundwork to capture that value in Bargaining. ### [Initial Points to Consider in Preparation](https://www.watershedassociates.com/learning-center/initial-points-to-consider-in-preparation/) Diligent preparation always pays off. But before you get in too deep, give yourself an overview of the situation. You […] Q: What should you think about before diving into detailed negotiation preparation? A: Give yourself an overview before getting into the weeds - don't miss the forest while counting the trees. Ask: Should you even be negotiating? Who has the upper hand, and how can you maintain or change that? It's never too early to start on your contingency plans (BATNAs). Are there egos that need early massaging, people who need to feel they had input? And before doing all the homework, write down your instinct on the other side's most likely position and strategy. Q: What is the Need-to-Know Circle and how does it help preparation? A: Make a long list of everything it would be helpful to know to achieve success. No matter how outlandish, list all your questions and all the facts you currently know. Ask team members what questions should be posed. List all facts that need confirmation. Then organize everything into three categories: things you know to be fact, things you're assuming to be true, and things you don't know but need to know. This structure drives your research and ensures you go into Exchange with a clear picture of your gaps. Q: Why should you write down your instinct before doing detailed preparation? A: Before all the homework pulls you in different directions, articulating your instinct on the other side's most likely position and strategy captures your initial read on the situation. It gives you a baseline to compare against as new information comes in. Sometimes your gut is right and the research confirms it. Other times the research reveals something that should change your approach - but you'll only notice that shift if you documented where you started. ### [Insights of a US American Negotiator on Fairness at the Bargaining Table](https://www.watershedassociates.com/learning-center/insights-of-a-us-american-negotiator-on-fairness-at-the-bargaining-table/) The United States was founded on the central proposition that all people are created equal. I grew up steeped in […] Q: How do cultural views of fairness differ at the bargaining table? A: US Americans tend to bring a built-in concept of fairness into the meeting room and may start bargaining close to what they believe is a "fair" position. Many other cultures, especially those with a tradition of haggling, view fairness as something that can only be determined after the process of give-and-take concludes. They can't define a fair deal until they see the final result. When a "fair-minded" American starts too close to their target, they end up appearing stubborn and inflexible because the concessions the other side expects simply aren't available. Q: Why can starting at a "fair" position actually hurt you in a negotiation? A: If you start at what you believe is fair, you leave no room for the exchange of concessions that makes the other side feel they've earned a good deal. Your counterpart demands concessions that are no longer available, and you appear rigid. It's far easier to set aside your preconception of fairness and start assertively than to try to change the other side's cultural orientation. Rely on the exchange of concessions during bargaining to arrive at a fair outcome. Q: What does fairness really mean in the context of negotiation outcomes? A: One of the best definitions of fairness is that the deal both sides worked hard to achieve is satisfactory to both parties - therefore it's consummately fair. Fairness isn't something you can impose as a precondition. It's something that emerges from a genuine process of bargaining where both sides start assertively, address interests, link concessions, make progressively smaller concessions, seek low-cost/high-value trades, and keep things positive. The process itself produces the fair result. ### [Interests versus Positions](https://www.watershedassociates.com/learning-center/interests-versus-positions/) Understanding the difference between interests and positions is a cornerstone of collaborative negotiation success. Positions Interests What they say they […] Q: What's the difference between interests and positions in negotiation? A: Positions are what people say they want - surface statements of where a person or organization stands. Interests are why they want it - the underlying reasons, values, and motivations. For example, a union's position might be demanding a five-year contract, but the interest is wanting time for workers to retool their skills before plant closings. Rarely is someone's stated position the only way to address their underlying interest. Q: Why is understanding interests so important for collaborative negotiation? A: Because your job as a negotiator is less to convince than to find solutions that address both parties' interests. Sometimes their position conflicts with your interest, but that doesn't mean there isn't a solution that works for both sides. Finding the alignment between interests creates value - you look for solutions that are low cost to you but high value to them, or high value to you and low cost to them. Q: How do interests evolve across the five stages of negotiation? A: During Preparation, you understand your interests and hypothesize theirs. In Exchange, you Probe for their interests and begin sharing yours. In Bargaining, all interests are revealed and satisfied through creative options. In Conclude, interests are resolved to mutual satisfaction. And in Execution, interests change over time, requiring ongoing dialogue and re-alignment. The parties don't reveal their true interests until there's enough trust - which is why the relationship matters so much. Q: Can you give an example of how focusing on interests instead of positions creates a better outcome? A: A project manager wants a one-month extension (position) because she approved the lead programmer's vacation and wants to show her team she keeps her word (interest). Her boss says the deadline stands (position) because the project must finish on time (interest). By focusing on interests, they find two options: give the PM discretion to reassign team members during the absence, or approve overtime compensation. The project gets done on time, and the PM keeps her word. Neither side's original position survives, but both interests are fully met. ### [Introduction to Negotiating Tactics](https://www.watershedassociates.com/learning-center/introduction-to-negotiating-tactics/) Negotiation tactics are maneuvers one side uses to provoke movement or gain advantage over the other side. Tactics can be […] Q: What are negotiation tactics? A: Tactics are maneuvers one side uses to provoke movement or gain advantage over the other side. They're designed to provoke a specific reaction, aren't straightforward, contain a hidden agenda, and can irritate or erode trust if used improperly. They've evolved over hundreds or even thousands of years of human interaction and commerce and are widely used throughout the world. Q: Can tactics be used in collaborative, win-win negotiations? A: Yes. Used sparingly and at the right time in the right situation, tactics can be extremely effective in collaborative negotiations. They help parties reach mutually beneficial agreements. However, they carry risk to the relationship, the outcome, or your reputation if used at the wrong time, in the wrong situation, improperly, without respect for the relationship, or if overused. If you're uncomfortable with any tactic, don't use it. Q: Why is it important to understand negotiation tactics even if you don't use them? A: Because your counterpart won't always share your attitude or value system. Even if you only use tactics honorably or don't use them at all, you'll encounter counterparts who do otherwise. It's critical that you can recognize tactics when they're being used against you, know how to use them effectively in appropriate situations, and know how to defend against them. In the area of defense, an ounce of prevention is worth a pound of cure - take preventive measures that make it less likely a tactic can be used against you. Q: When do negotiation tactics become unethical or illegal? A: Tactics cross the line when they involve misrepresentation that rises to the level of fraud, or when they're used in ways that deliberately deceive about material facts. Views on appropriateness vary among negotiators, academics, legal experts, and across cultures. The key distinction is between tactics as powerful tools used to generate movement and creativity, versus tactics used to manipulate or exploit. They are not Best Negotiating Practices - they are effective maneuvers, and how you use them defines whether they serve or undermine the negotiation. ### [Learn Their Interests](https://www.watershedassociates.com/learning-center/learn-their-interests/) You don’t want to assert your positions in the Exchange Stage. You are building a relationship and discovering critical information, […] Q: When is the right time to start learning the other side's interests? A: After rapport is established and trust is emerging, but before you negotiate an agenda for bargaining. You don't want to assert positions in the Exchange Stage - you're building a relationship and discovering critical information, not making demands. When the other side explains their interests, you can verify your assumptions, determine alignment of interests, begin creative work on solutions, and better assess their BATNAs and authority. Q: What should you do if the other side won't reveal their interests? A: Don't be surprised - there must be a certain degree of trust before people reveal their true motivating factors. If you don't have a clue what their interests really are, try more rapport building. Consider whether they're waiting for an apology. You or your predecessor may have done something that eroded trust. Watch for clues and Probe. You may hear about a quality issue that caused trouble, an offensive remark from a team member, or a late payment that was costly. Q: What makes an effective apology when trust has been damaged? A: An effective, heartfelt apology has several key ingredients: saying you're sorry is just the price of entry. You need to listen, understand, and show understanding. Then deliver three essentials - show regret, take responsibility, and ask for forgiveness. For a lasting fix, determine what solution will allow trust to grow, typically through empathy, compensation, or acknowledgment of violated norms. And if the wrong was public, make the apology equally public. Q: How should you indicate you have BATNAs during Exchange without sounding threatening? A: Be vague. Introducing a BATNA can easily sound threatening - for example, "We're glad to meet you in this process where we're exploring our supplier options" can feel like a threat to your supplier and become an obstacle to creative bargaining. Deliver the same message more softly and you're likely to find your counterpart more open to understanding your interests and revealing their own. The Exchange Stage is about getting and giving information, not issuing warnings. ### [Lessons Learned](https://www.watershedassociates.com/learning-center/lessons-learned/) After a break from any extended negotiations, it helps to take a critical assessment of the highlights and shortcomings of […] Q: Why is debriefing important after a negotiation? A: After a break from any extended negotiations, a critical assessment of the highlights and shortcomings provides valuable lessons for the future - about your own skills and behaviors, as well as information about the other side. You can learn both from reaffirming your successes and acknowledging your failures. Master negotiators learn by doing, and by self-reflection and commitment to improve. Q: How do you debrief without second-guessing yourself to death? A: Keep perspective. You really don't know what would have happened had you learned more answers at the outset, started higher with your opening, or managed concessions differently. The idea is to recharge, not regret. Focus on what you can take forward: What worked? What didn't? What would you do differently next time? That's the mindset that turns every negotiation into preparation for the next one. ### [Limited Authority](https://www.watershedassociates.com/learning-center/limited-authority/) Recognize Limited Authority Coming to negotiations with authority to bind your organization only at the level of your Goal or […] Q: What is the Limited Authority tactic in negotiation? A: Limited Authority is when a negotiator comes to the table with restricted authority to bind their organization, using it as a way to say "No" graciously and buy time to think. It shows up in three scenarios: negotiators deliberately limit their own authority as a tool, negotiators are genuinely limited by organizational policy or imposed by higher-level individuals, or negotiators want you to perceive more limited authority than reality and allude to a proposal being outside their authority. Q: How should you use Limited Authority in collaborative negotiations? A: The key is to limit your authority, not claim you have none - nobody wants to negotiate with someone who has no authority. Make sure your team is in sync with your limited authority. Declare your limit when you need a gracious way to say "No" or time to think, such as "I have to run the idea by the Contracts group first." And never lie about your limited authority - like any type of lying, it's not acceptable in collaborative negotiations. Q: How do you defend against a claim of Limited Authority? A: Always challenge it. It's more likely they have more authority than they claim. Ask respectful questions: Who does have authority? When can that person meet with us? What is the process for you to get the needed authority? What do you have authority to do? What do you need from us to help you get approval? More often than not, when you question their claim this way, the other side demurs and asserts a new claim of greater authority. Don't directly challenge the new claim - you both know what happened, and you're not likely to see this tactic from them again. Q: How can you prevent Limited Authority from being used against you? A: Whenever possible, negotiate with someone who has higher authority than you. Assess their authority level during the Exchange Stage - don't wait until Bargaining. Ask questions like: How long do decisions of this nature normally take? What are your procedures for making decisions? Who in your organization participates? A good negotiator will only answer that they have authority to commit to any agreement that is beneficial - which tells you they're keeping their options open. ### [Making and Managing Concessions](https://www.watershedassociates.com/learning-center/making-and-managing-concessions/) During Bargaining you must make concessions. The essence of bargaining is that you have to give to get. The whole […] Q: Why is managing concessions just as important as making them? A: The way you make concessions - your management of them - is what gives the other side a sense of satisfaction from bargaining. You want them to reach the end feeling they've created and captured value and negotiated the best possible solution. Three components ensure satisfaction: give value but don't rush, send the right message and create a sense of satisfaction, and link concessions while keeping trades provisional. Q: Why should you never make a concession without conditions? A: Making a concession without conditions damages your credibility. If you express a position, then move off it and get nothing in exchange, what does that say about your original position? It was invalid. The other side now questions any subsequent position you take. Always get something in return, and always keep trades provisional pending total agreement using the "Negotiated Yes" or "Yes, if..." approach. Q: What is the Rule of Halves and why is it the preferred concession pattern? A: The Rule of Halves means each subsequent concession should be halfway between your current position and your goal. For example, if you open at 100 with a goal of 200, your moves would be roughly 100...150...180...200. This creates progressively smaller concessions that demonstrate you're approaching your limit, extend the negotiation so you have more opportunities to make proposals, and prove wrong any assumption that you have more to give. Avoid predictability by not being exact with numbers, and use non-round numbers as you get closer to your goal. Q: What messages do your concession patterns send to the other side? A: Big moves send unintended messages: your opening wasn't justifiable, you can keep making big moves, or there's much more to give. Progressively smaller moves signal you're at or near your limit. Also remember: give good news in small chunks to maximize satisfaction, but give bad news all at once. And avoid making a large move after a small one, which signals you have lots of room left. Every trade sends a message - make sure it's the one you intend. ### [Monitoring of Performance](https://www.watershedassociates.com/learning-center/monitoring-of-performance/) Somebody has to monitor performance. It may not be you. At a minimum there should be a monitoring mechanism that […] Q: Why is monitoring performance important during the Execute Stage? A: Somebody has to monitor performance after an agreement is reached. At a minimum, there should be a monitoring mechanism commensurate with the expectation of performance. The degree depends on your experience with the other side, complexity of performance, newness of the product or service, and criticality of timing. Done right, monitoring continues the process of building trust as issues are flagged early and solutions negotiated with the same collaboration as the original agreement. Q: What are the best ways to monitor performance without being intrusive? A: Monitoring should be done as agreed upon in the agreement, in the least intrusive but most effective way. Options include informal check-ups that seem random and casual to the other side but are well planned by you, specified procedures for review and reporting, and personal visits (random or scheduled) since face time is more likely to build the relationship and solve issues before they become performance obstacles. Also stay alert and listen for relevant information about the company as you go about other negotiations. ### [Negotiating Before, During or After Meals in Cross Cultural Settings](https://www.watershedassociates.com/learning-center/negotiating-before-during-or-after-meals-in-cross-cultural-settings/) The Minefield of Negotiating Around Meals At what point should you initiate business topics at a meal? In task-oriented countries, […] Q: When is it appropriate to bring up business at a meal in cross-cultural negotiations? A: It depends entirely on the culture. In task-oriented countries like the US, it's not unusual to bring up business just after ordering. But nearly all relationship-oriented cultures, and many western European cultures, find this surprising and distasteful. In much of the Middle East and Asia, business may not be discussed at all until after more than one meal. In many Latin American countries, the topic of business may be raised at the end of the meal over coffee or brandy, and then only in a very general way. Q: What should task-oriented negotiators do when dining with relationship-oriented counterparts? A: Wait for a strong cue from your counterpart that the time is appropriate. If you attempt to introduce a business topic and it gets deflected in any way - such as being offered another drink or suddenly hearing a comment about the elegant atmosphere - do not pursue it. They'll signal to you when they're ready. It's impossible to know in advance exactly when the "right moment" is since it may depend on the region, industry, past relationship, and immediate circumstances. Q: How should relationship-oriented negotiators handle a task-oriented counterpart who wants to talk business early? A: Recognize their early attempt to discuss business as normal for their culture. If you're not ready, simply indicate you'd like to enjoy your time together a little longer and discuss business at another time. They'll feel relieved if you give them an idea of when - later in this meal, at another meeting on this trip, or on another trip. ### [Negotiating in a Foreign Language](https://www.watershedassociates.com/learning-center/negotiating-in-a-foreign-language/) The Challenge of Negotiating in a Foreign or Second Language Never underestimate the difficulties of doing business in a foreign […] Q: What challenges arise when your counterpart is negotiating in your language? A: Communication will take longer, both long-distance and face-to-face, so patience is essential. You should avoid slang and culturally specific stories. Documents may need to be created in two languages. People may not understand 100% of what you say and may not ask for clarification because they don't want to admit they don't fully understand. Providing written backups of all communications is very helpful - it speeds up the process and shows consideration for their situation. Q: What should you do when you're negotiating in your counterpart's language? A: Bring your own interpreter - don't rely on theirs. Don't assume you understand their colloquialisms. Compensate for any language gaps by providing your materials in written form and asking for theirs in writing so you can cross-check with more fluent team members. Caucus as much as necessary with appropriate apologies to your counterparts, and don't be embarrassed to ask for clarification. The risk of misunderstanding far outweighs the inconvenience of asking. ### [Negotiating in Teams](https://www.watershedassociates.com/learning-center/negotiating-in-teams/) Keys to Success Negotiate as a team, but prepare as a group of creative individuals. Avoid “group think;” encourage individual […] Q: What are the keys to successful team negotiations? A: Negotiate as a team, but prepare as a group of creative individuals - avoid "group think" and encourage individual input. Present one public message and voice throughout. Obtain stakeholder input and buy-in, gain authority and access to all necessary information, establish a hierarchy of decision-making within the team, define a role for each member, and develop mutual respect and trust among your own team members before sitting down with the other side. Q: What roles should be assigned on a negotiation team? A: Key roles include team leader, lead negotiator, spokesperson, financial expert, subject matter expert, scribe, observer, coach, facilitator, back-up lead negotiator, and Bad Guy. Each member should understand their role and what they're allowed to say, if anything. Every team member is an observer when not speaking. And critically, the lead negotiator should be clearly recognized as the lead by both your team and the other side. Q: Why is caucusing so important in team negotiations? A: Caucusing is a sign of preparedness, strength, and confidence - not weakness. Use it whenever necessary. Absolutely no whispering or passing notes to team members at the table; instead, call a caucus. It gives you time to review strategy, discuss alternative concessions, and ensure your team is aligned. Encourage each negotiator to take notes for full team review at caucus so nothing gets lost. Q: What are the biggest risks when negotiating as a team? A: Risk of error generally increases proportionally with the number of team members. Maintaining control is harder with highly invested or emotional members. Ensuring your team speaks with one voice and carries a consistent message is an ongoing challenge. Team negotiations typically take more time and are less efficient. The other side can feel overpowered if your team is too large. And team members who step outside their roles can undermine the entire strategy. ### [Negotiating Over Email](https://www.watershedassociates.com/learning-center/negotiating-over-email/) Email Negotiation How to Harness the Power and Avoid the Pitfalls of Negotiating over Email In our consulting and training […] Q: Why do email negotiations end in impasse so often? A: Research shows that while face-to-face negotiations end in impasse less than 10% of the time, only half of email negotiations result in agreement. There's a greater tendency to lie, exaggerate, bluff, and make intimidating threats over email. Hardball negotiators feel more powerful behind the screen. There's less preparation because negotiators don't feel the pressure of "live performance." It's harder to build rapport and trust, so there's more focus on positions and demands instead of interests. And brainstorming is uncomfortable, which cramps creativity and value creation. Q: What are the most effective strategies for negotiating over email? A: Meet upfront face-to-face if possible, especially for complex agreements. Continue building rapport by expressing positive emotions and adding personal touches to every email. Have a well-established goal and know your parameters before responding to any offer. Brainstorm offline - schedule a phone call or meeting when solutions aren't apparent. Stamp out conflict immediately by picking up the phone rather than responding in kind. And ask more questions, not less, even though it feels tedious over email. Q: When is email most and least appropriate for negotiations? A: Email works best for more straightforward deals where messages are least likely to be misconstrued, and as a practical tool that saves face-to-face time for complex issues. It's also valuable because it allows contemplation time, reduces stress for some personality types, and saves travel costs. It's least appropriate when emotional conflicts need resolution, when creative brainstorming is needed, or when the relationship is new and rapport hasn't been established. The recipient's interpretation of tone and meaning carries far more weight than the sender's intent. ### [Negotiating The Best Deal On A New Car](https://www.watershedassociates.com/learning-center/negotiating-the-best-deal-on-a-new-car/) No matter how complicated the business, no matter how desperate the company for focused and insightful coaching of its stagnated […] Q: How do car dealers actually make money, and why does it matter for negotiating? A: Dealers make money six ways: price of the car, holdback (factory-to-dealer rebate), factory-to-dealer special incentives, financing (including leasing), trade-in, and dealer packages (paint/fabric treatment, extended warranty, undercoating). This is critical because it means a dealer can sell a car at or below invoice and still profit. Invoice doesn't represent the dealer's true cost - it's invoice less holdback less factory-to-dealer incentives. The dealer will not close a deal at a loss, no matter what the sales rep tells you. Q: How should you prepare and set your negotiation targets for a new car? A: Get the Dealer's True Cost (DTC) from resources like Edmunds, Consumer Reports, or Kiplinger's. Set your Most Desired Outcome at DTC, your Goal at DTC plus 2.5%, and your Least Acceptable Agreement at DTC plus 5%. Have an alternative plan ready (different make/model or different dealer). Always bargain from DTC up, never from sticker price down. Make small moves, then smaller and smaller moves to signal you're approaching your bottom line. Q: What common dealer tactics should you watch for when buying a car? A: Don't fall for Good Cop/Bad Cop, Limited Authority, intimidation, or unethical pressure. The dealer isn't doing you a favor with end-of-month delivery - you agree to that timing because that's when special incentives kick in. Keep the factory-to-consumer rebate separate from negotiations since it doesn't come from the dealer's profit. Watch for escalation fees at the end: "processing fees," surprise paint sealant charges, or "take it or leave it." Don't stray from your original plan, and if it doesn't feel right, just leave. Q: What's the smartest way to handle trade-ins and financing when buying a new car? A: Don't mention your trade-in until you have an agreement on the price of the new car. Know what your trade-in is worth from Edmunds or Consumer Reports - even better, sell it yourself. For financing, avoid talking monthly payments. Pre-arrange financing with your bank. If financing with the dealer, never talk financing until you have a deal, and always negotiate the interest rate. When the dealer says the rate isn't negotiable, don't believe it. ### [Negotiating via Zoom or Teams](https://www.watershedassociates.com/learning-center/negotiating-via-zoom-or-teams/) Virtual Negotiation How to Negotiate Effectively on Zoom, Teams, and Other Video Platforms In our consulting and training practice, we're […] Q: How do virtual negotiations on Zoom or Teams compare to face-to-face and email? A: Video negotiations produce outcomes significantly closer to face-to-face than either email or telephone. Negotiators on video are more likely to share information, engage in collaborative problem-solving, and reach mutually beneficial agreements. But the format introduces unique challenges: screen fatigue drains cognitive resources faster than in-person meetings, reading body language is harder through a camera, technical disruptions break momentum at critical moments, and the familiar setting of a home office creates a false sense of informality that leads to less preparation and looser discipline. Q: Why is screen fatigue a serious risk in virtual negotiations? A: Research on "Zoom fatigue" shows that constant self-view, reduced mobility, and the mental effort of processing faces on a grid all contribute to faster burnout. Fatigued negotiators make worse decisions, miss important signals, and are more likely to concede just to end the meeting. To counter this, avoid marathon calls. Cognitive performance on video declines significantly after 45 to 60 minutes, so break complex negotiations into multiple shorter sessions rather than powering through in a single sitting. Q: What should you do when your counterpart won't turn on their camera? A: Camera-off shifts the power dynamic. The person on camera is exposed while the camera-off party operates behind a one-way mirror, observing without being observed. Set the expectation early by including a note when scheduling: "We find these conversations go best with cameras on." Lead by example. If they still won't budge, compensate by asking more questions, pausing frequently to check understanding, and summarizing often. Replace the visual feedback you're not getting with verbal feedback: "I want to make sure that resonates. What's your reaction?" Q: What are the most effective strategies for negotiating on video? A: Prepare your environment deliberately - camera at eye level, good lighting, tested audio. Share an agenda in advance to prevent drift. Be intentional about nonverbal communication: nod when listening, lean forward to signal engagement, look at your camera (not the screen) when making key points. Resist multi-tasking completely. Check in frequently with phrases like "Let me make sure I've got this right." And follow up promptly in writing after every session - video calls are subject to selective memory, and a written summary within 24 hours locks in progress. Q: When does virtual negotiation work best, and when should you push for in-person? A: Virtual works well for ongoing relationships where travel isn't practical, multi-round negotiations, and discussions that benefit from screen sharing to walk through proposals or data together. It struggles when trust has broken down, emotional stakes are high, or sensitive personnel issues are involved - in those cases, meeting face-to-face, even once, can be the difference between impasse and resolution. Large multi-party negotiations also become unwieldy on video, where managing turn-taking and reading reactions across a gallery view is extremely difficult. ### [Negotiation Preparation](https://www.watershedassociates.com/learning-center/negotiation-preparation/) The first stage, Preparation, is probably the most important stage of the framework for collaborative negotiations. Preparation is so critical […] Q: Why is the Preparation Stage the most important stage of the negotiation framework? A: Because this is when you gain a full understanding of your interests and positions, without which you're at a serious disadvantage in Bargaining. Preparation covers initial considerations (should you even be negotiating?), research on players, stakeholders, facts, and benchmarks, analysis of what you know versus what you're assuming versus what you don't know, and the development of Probes to test your assumptions in Exchange. Skipping or shortcutting this stage is the most common mistake negotiators make. Q: What is the Negotiating Envelope and why is it essential? A: The Negotiating Envelope defines your positions: Most Desired Outcome (MDO), Goal, Least Acceptable Agreement (LAA), and Best Alternative to a Negotiated Agreement (BATNA). You need to build one for yourself and map out what you believe theirs looks like. This is where you identify your "must haves," things of equal value to both parties, and creative options that address interests. Without a clear envelope, you have no framework for evaluating trades or knowing when to walk away. Q: What role does relationship planning play in negotiation preparation? A: You need to plan how you'll build trust, be in command of what information you need but don't yet have, and develop Probes that provoke responsiveness in a positive environment. Preparation isn't just about data and positions - it's about anticipating the human dynamics that will determine whether the other side shares their true interests or holds back. The relationship strategy you plan in Preparation sets the tone for everything that follows. ### [Negotiation Safe Skills for Bargaining Across Cultures](https://www.watershedassociates.com/learning-center/negotiation-safe-skills-for-bargaining-across-cultures/) Conducting negotiations in a global setting requires an understanding of cultural differences. There are many books addressing the subject, some […] Q: What are "safe skills" in cross-cultural negotiation? A: Safe skills are approaches you can use effectively in almost any cultural setting without having to re-learn or re-calibrate every time you change environments. They're especially useful when negotiating with people from more than one culture, moving across regions within a country, or when you don't know in advance whether your counterparts are internationally experienced or highly traditional. Safe skills include riding with unfamiliar styles, reserving judgment, working person-to-person, avoiding stereotypes, looking for creative solutions, and remembering that the other side is working hard at it too. Q: What does "ride the style" mean in cross-cultural negotiations? A: It means assuming the other party is on their best or normal behavior and reserving judgment when encountering an unfamiliar or uncomfortable style. Resist the temptation to interpret indirectness as dishonesty, or an emotional style as naivete or a true indicator of real feelings. Just ride with that style until you have more experience with it, then make it work for you. It's far more useful to understand and interpret another culture's style than to attempt to imitate it. Q: What four cultural dimensions should negotiators understand before bargaining across cultures? A: Task versus relationship oriented (do they prioritize getting things done or building personal connections first?), direct versus indirect communication (do they say what they mean literally or communicate through context and implication?), expressive versus reserved style (do they show emotion openly or consider it inappropriate?), and urgent versus relaxed orientation toward time (do they feel deadline pressure or see time as flexible?). Understanding where your counterpart falls on these dimensions helps you adapt your approach without stereotyping. ### [Negotiation Stages Introduction](https://www.watershedassociates.com/learning-center/negotiation-stages-introduction/) There is no magic or mystery to negotiations or to what makes a master negotiator. There are 5 steps and […] Q: What are the five stages of the collaborative negotiation process? A: Prepare (identify potential value, understand interests, develop your fact base), Information Exchange (discover and create value, assess interests, build rapport and trust), Bargain (create and distribute value, address interests, make and manage concessions), Conclude (capture value, confirm interests have been met, show appreciation), and Execute (expand value, address changing interests, strengthen relationships). The model is circular because collaborative negotiations are an ongoing process that builds confidence, trust, and strong relationships. Q: Why do many negotiators skip straight to bargaining, and why is that a mistake? A: People often charge into Exchange or even directly to Bargaining because they want to get to the "real work." But there's no good shortcut to Preparation - it's when you research information, analyze data and leverage, identify interests and positions, and consider the relationship you want to build. And Exchange is where you build the trust that determines whether the other side will share their real interests. Without those foundations, you're bargaining blind. Q: What are the four critical assessments made during the Exchange Stage? A: Trustworthiness (are they honest and dependable?), competency (are they credible and able?), likeability (can you work well together?), and alignment of interests (are your interests aligned with theirs?). If your assessment is negative, you make adjustments or implement your BATNA. If positive, you move forward. But before diving into Bargaining, pause to create one critical tool that will guide and protect you: the joint agenda. Q: What makes the Bargaining Stage successful? A: Bargaining is the give-and-take. If you think success means all take and no give, you won't capture real value. When you give and take what satisfies both parties' interests, you build a lasting relationship and a fruitful outcome. The two essential tools are the Probe and Creativity. Finely tuned communication skills are critical as you explore options to create value and execute trades to capture value. You're most successful when solutions satisfy everyone's needs. ### [Nibble](https://www.watershedassociates.com/learning-center/nibble/) Recognize The Nibble A small concession, maybe 1 or 2% of the total agreement/solution, which is asked for in return […] Q: What is a Nibble in negotiation? A: A Nibble is a small concession - maybe 1 or 2% of the total agreement - requested as the very last concession in exchange for concluding negotiations with an agreement. It's a special kind of "Yes, if..." offered at the finish line. Examples include asking for product training sessions, an immediate rebate, retroactivity of terms, or access to key decision makers. The Nibble is an extremely popular tactic used in almost all cultures worldwide. Q: How should you use Nibbling in collaborative negotiations? A: Plan ahead of time for items that aren't needed to reach agreement but can gain you an additional 1 to 2% in value. Keep it small, and only use it at the very end of negotiations. You should still go with the deal even if you don't get the Nibble. Used consistently across many agreements over a year, Nibbling can significantly enhance the value you provide as a negotiator. But overused or resented by your counterparts, it can leave them better prepared to Nibble back, or worse, less likely to want to work with you. Q: How do you defend against a Nibble? A: You can't prevent a Nibble, but you can easily defend against one. Expect to receive a Nibble and be prepared with a counter-Nibble. If they ask for something small at the end, ask for something small in return. This keeps the exchange balanced and prevents unilateral concessions at the moment when you're most eager to close the deal. ### [Offers and Proposals](https://www.watershedassociates.com/learning-center/offers-and-proposals/) You cannot negotiate an argument. You can negotiate proposals. In fact, the most powerful thing you can do in a […] Q: Why are offers and proposals the most powerful tool in negotiation? A: You can't negotiate an argument, but you can negotiate a proposal. An offer or proposal compels a response - the other side must accept, counter-offer, Probe, or Crunch. That keeps them engaged in the process, which is critical and not always easily achieved. Every proposal is an opportunity to get closure or agreement. Be prepared to make many proposals throughout bargaining to maintain momentum and keep the dialogue productive. Q: What are Multiple Economically Equivalent Offers and why should you use them? A: You can restate a proposal in different terms that are economically equivalent to your prior offer. This is powerful because even if the other side rejected your first framing, they must respond to the new version - and they may find the repackaged terms more appealing. No matter what happens, an offer compels a response, and each response gives you information and keeps you moving toward agreement. Q: What are the four possible responses to any offer or proposal? A: Accept (they agree to your terms), counter-offer (they come back with a modified version), Probe (a sincere and thoughtful response that asks questions to understand your proposal better), or Crunch (a simplistic and tactical response designed to get you to improve your offer without making a counter). Each response tells you something and gives you an opening to continue the negotiation. ### [Opening Proposals](https://www.watershedassociates.com/learning-center/opening-proposals/) You only get one chance to open so it has to be right. It’s time to begin Bargaining. Think big, […] Q: Why should your opening proposal always reflect your Most Desired Outcome (MDO)? A: You only get one chance to open, so it has to be right. Think big, not small. Start high, start low - just don't start in the middle. Your MDO is the result you want and can defend. It's bold and assertive, but not aggressive. If no one has ever gotten the MDO you seek, it's possibly too aggressive and not defensible. Opening at your MDO gives you room to move and give, and the process of giving and getting builds trust like no stingy power play ever can. It also challenges both you and the other side to be more creative. Q: What are the three ways to reflect your MDO in an opening proposal? A: Directly ("I want you to add 3 new team members to your crew"), vaguely ("I want double-digit productivity gains"), or using economically equivalent options ("I want either 3 new team members, or an 8% decrease in product costs, or an increase from 10 to 24 widgets/hour"). Each approach has its place depending on how much flexibility you want to build into the opening. Q: What are the most common reasons negotiators fail to open at their MDO? A: Uncertainty about their own or the other side's interests leads them to open too conservatively. Too much emphasis on the relationship and fear of losing it causes them to aim low. Impatience leads them to open at their Goal, which actually signals to the other side they can push further. Untested assumptions about what the other side will find reasonable. An overly aggressive opponent who anchors outside the Envelope of Reasonability and makes them doubt their own position. And self-defeating internal talk where they pre-negotiate with themselves before hearing the other side's position. ### [Preparation Quick Checklist](https://www.watershedassociates.com/learning-center/preparation-quick-checklist/) Use this checklist to prepare for your next negotiation. Add additional items that are critical to your situation. Develop fact […] Q: What should a negotiation preparation checklist cover? A: A thorough checklist includes developing your fact base, defining the scope, identifying your team, developing a timeline, determining both your and their wants and needs, establishing your desired outcomes and goals, setting your Least Acceptable Agreement, identifying all stakeholders, defining the market and economic situation, listing what's not negotiable, predicting sticking points, determining throw-away items, planning the agenda, clarifying both sides' interests, identifying options for mutual gain, listing your BATNAs and theirs, and anticipating their questions with prepared responses. Q: Why is it important to think about both sides' BATNAs during preparation? A: Your BATNAs represent your backup plan and define your walk-away point, so you need to know them and identify ways to improve them. But listing their BATNAs is equally important because it helps you understand their leverage and how dependent they are on reaching a deal with you. You also need to determine whether your goals are aligned with your counterpart's, and whether they can be aligned if they're not - that assessment requires understanding the full picture on both sides. ### [Probe Challenges](https://www.watershedassociates.com/learning-center/probe-challenges/) What if Probing isn't working? "Why" and "Why not" can feel like an attack. How else can we ask Why […] Q: Why do "Why" and "Why not" questions sometimes backfire in negotiations? A: "Why" and "Why not" can feel like an attack when directed at the person rather than the situation. "Why do you, Why did you, Why can't you" all focus on the person and trigger defensiveness. The fix is to direct the question at the circumstance instead: "Why are the invoices being paid so late?" is less confrontational than "Why can't you pay on time?" Q: What are the four approaches to asking "Why" without sounding like an interrogation? A: Direct the question to the circumstance, not the person. Give context to your "Why" question by adding facts and circumstances. Use language that demonstrates sincere curiosity and empathy, like "Help me understand why..." or "Can you share why this is important?" And intermix with other open-ended questions using What, How, and Who instead of Why. For example, instead of "Why is this important to you?" try "What makes this important to you?" Q: What should you do when probing still isn't getting a response? A: Consider what might be going on. There may not be sufficient rapport or trust yet. They may not feel authorized to reveal the information. They may fear the reason will curtail their leverage. They may be difficult to deal with, or they may enjoy the feeling of power as a customer, supplier, or stakeholder. In some cases, they simply don't need you and aren't negotiating in good faith. The most common fix is going back to rapport building - more trust usually unlocks more information. ### [Probe Starters](https://www.watershedassociates.com/learning-center/probe-starters/) Use the following sentence starters to help you identify Probes that may be useful in your next negotiation situation. Example […] Q: What are good Probe starter phrases to use in negotiations? A: Keep open-ended questions in your toolkit: Why? Why not? Why do you believe...? What do you think we can...? Who can help here? How could that...? How can we meet your concerns? What is your reasoning behind that? What if we...? What are your expectations? Why does that policy exist? What do you suggest would be the next steps? These starters encourage detailed responses rather than simple yes or no answers. Q: How do you take probing to a more strategic level? A: See yourself using probing to challenge your own point of view, stay in a state of curiosity longer to sort out where others are coming from, dig deeper into motivations and real interests, bring the unspeakable question to the surface, challenge the status quo to move the conversation forward, create mutually beneficial options, build on what's being said and take it one or two steps further, and engage with people at a deeper level. Strategic probing isn't just asking questions - it's using questions to unlock creativity and collaboration. ### [Probing in Bargain Stage](https://www.watershedassociates.com/learning-center/probing-in-bargain-stage/) BNP 16: Use the power of The Negotiator’s Probe to get them to move and to explore options. Probing is […] Q: What is the Negotiator's Probe and what makes it different from ordinary questioning? A: The Negotiator's Probe is intentionally delivered, well thought-out, succinct, on-point, often open-ended, always followed by good listening, consultative, and contextual. It's not cross-examination or interrogation designed to get an admission. You Probe precisely because you don't know the answer, or because you want to see if your counterpart knows. These attributes make it well suited for building trust - the other side shares information when they sense from your questions that you're sincere about solving the problem and need their help. Q: How should negotiators use probing effectively during bargaining? A: Keep asking - it's almost impossible to ask too many sincere questions, though limiting to around 9-11 questions works best while allowing them to ask questions too. Use open-ended questions to lead to discussion and creative solutions. Be direct. Plan questions ahead of time for issues where you lack information. Practice "dumb is smart" by asking for their input rather than being a know-it-all. Let them reach conclusions through your probing rather than telling them. And triangulate by asking related but different questions to flush out complete and accurate answers. Q: What's the difference between a well-framed Probe and a poorly framed one? A: A poorly framed Probe like "With virtual meeting software on everyone's devices, why are you insisting that we travel for quarterly reviews?" is perceived as confrontational, puts the other side on the defensive, and elicits a knee-jerk response. A well-framed version - "Help me understand why you want quarterly reviews to be in person?" - shows sincere interest, assumes they have good reasons, calls for reflection, and is more likely to lead to a solution that addresses their real needs. ### [Probing in Exchange Stage](https://www.watershedassociates.com/learning-center/probing-in-exchange-stage/) An effective tool to use during the Exchange Stage – and throughout Bargaining – is called the “Probe.” The Negotiator’s […] Q: What is the purpose of probing during the Exchange Stage? A: The Negotiator's Probe in Exchange is an open-ended question that gets the other side to reveal information, move, explore options, and generate creativity. In Exchange specifically, probing uncovers hidden fears and objections early so you can tackle them before emotions erupt. It lets you assess likeability, competency, and trustworthiness. It demonstrates authenticity by showing you're sincerely interested in understanding and satisfying the other side's needs. And it discovers their interests, confirms or denies your assumptions, and answers your "Don't Knows" including who has authority to commit. Q: How does probing differ between the Exchange and Bargaining stages? A: In Exchange, probing is focused on discovery: uncovering hidden fears and objections, assessing the other side's character and competency, demonstrating your authenticity, discovering interests, confirming or denying assumptions, answering "Don't Knows" about authority, aligning goals, and discovering value as options become apparent. In Bargaining, probing shifts to action: opening opportunities for creative concessions, informing your concession pattern, creating opportunities for trades that get you closer to your MDO, creating value through interest-based solutions, and sometimes taking the form of a Crunch to get the other side to move without making a counter-offer. ### [Problem Solving with Creativity](https://www.watershedassociates.com/learning-center/problem-solving-with-creativity/) BNP 17: Trade Creative Concessions We are born creative. Infants design sounds and even words to make their needs known. […] Q: What is a creative concession and why is it the "secret sauce" of win-win negotiations? A: A creative concession is any concession that has a relatively low cost to one side but relatively high value to the other side because it addresses their interests. These are considered "painless" concessions. They address interests and needs, not positions and demands. They differ in each situation and aren't typically transferable from one negotiation to the next. Linking low-cost concessions to the other side's high-value interests creates options for mutual gain - that's the key driver of mutually beneficial outcomes. Q: Why do most adults struggle with creativity in negotiations? A: Research shows that 98% of five-year-olds are highly creative, but by age 10 that drops to just 10%, and by adulthood it's only 2%. As children learn to write, do math, read, and become rational, a block against creativity creeps in. We must relearn to be creative. In negotiations, creativity is the element of brainpower that supercharges a win-win outcome, and it's critical in both the Exchange Stage (where you use it to discover value) and the Bargaining Stage (where you use it to create value). Q: How do you maintain an environment conducive to creativity during negotiations? A: It's the use of the Best Negotiating Practices that prepares and maintains a creative environment: being well prepared, building rapport and trust at the outset, thinking big, challenging first offers, using the "Negotiated Yes," having ready Probes, and keeping things positive. In Exchange, use creativity to build trust so interests are revealed, learn about the other side's business and challenges, and stand in their shoes. In Bargaining, be prepared to give painless concessions and link them to the other side's interests. Introducing new creative items can also help you get off an impasse and avoid deadlock. ### [Psychological Drivers that Make Demonstrating Fairness So Powerful](https://www.watershedassociates.com/learning-center/psychological-drivers-that-make-demonstrating-fairness-so-powerful/) Why is BNP 18 — demonstrating fairness — so Powerful? Consistency – a desire to appear fair – is inherent […] Q: What psychological drivers make standards of fairness so powerful in negotiations? A: Several deep psychological forces are at work. The desire to appear consistent is probably the strongest - it's ingrained and not culture-specific. We're comfortable staying within our own past agreements and uncomfortable when asking for something outside standards we've previously employed. People even think arbitrary processes like flipping a coin are fair because each side has an equal shot. Beyond consistency, credibility plays a role (talking about standards rather than just your self-serving position builds trust), as does safety in numbers (if a standard is good for most, it's good for us) and the power of the written word (if it's written, it feels real, regardless of whether it's proven). Q: How can you use standards of fairness as a sword or a shield? A: As a sword, persuade with "Let me show you why this is fair" by setting the standard in your favor while keeping it reasonable and justified. As a shield, defend your position by asking them to tell you what about it they don't think is fair. To challenge, show their proposal deviates too far from the norm. To push past impasse, find a standard both sides can agree on, such as tying a volatile price to an industry index rather than arguing about which direction prices will go. To turn a competitor into a collaborator, use settling on a process as a way to find common ground. Q: What is the smartest way to prioritize your use of standards in negotiation? A: First choice: use their standards and criteria to get what you want. They'll be driven to stay consistent, it feels like a major concession in their favor (allowing you to hold back other concessions), and they'll feel respected. Second: fit into a recognized exception to their standard. Third: attack their justification with persuasive arguments while being prepared to defend yours using psychological drivers. Fourth: do a joint search for independent, widely accepted standards. And always be wary of hardball negotiators using seemingly legitimate sources tactically - not all standards are created equal, and their assertions need to be verified. ### [Recognizing and Defending Against the Crunch](https://www.watershedassociates.com/learning-center/recognizing-and-defending-against-the-crunch/) Recognize the Crunch A Crunch is a response to an offer that does not come in the form of a […] Q: What is a Crunch in negotiation? A: A Crunch (sometimes called a Flinch or Wince) is a response to an offer that doesn't come in the form of a counter-offer. It's a unique kind of Probe - a "Tactical Probe" - designed to encourage the other side to move off their current position and make a concession, or to explore and generate creative options. A Crunch can be verbal or nonverbal, and it's so universally recognized in negotiations that it earned its own name. Q: Can you use a Crunch in collaborative negotiations? A: Yes. Both verbal and nonverbal Crunches are widely accepted in collaborative negotiations. As with any tactic, don't overdo it, and keep the Crunch respectful of the relationship and situation. It's a natural part of the give-and-take during bargaining. Q: How do you defend against a Crunch? A: Like the Nibble, you can't prevent a Crunch. But the critical rule is: never respond to a Crunch with a concession. If you do, it becomes a unilateral concession - you gave something and got nothing in return. Instead, counter-Crunch by challenging all Crunches with an equally assertive or greater Crunch of your own. This keeps the exchange balanced and signals that you won't be moved by pressure alone. ### [Recommended Reading on Negotiations](https://www.watershedassociates.com/learning-center/recommended-reading-on-negotiations/)   3D Negotiation by David A. Lax and James K. Sebenius Au Contraire!: Figuring Out the French by Gilles Asselin […] Q: What books do negotiation experts recommend for building negotiation skills? A: Essential reading includes classics like "Getting to Yes" by Fisher, Ury, and Patton for principled negotiation fundamentals, and "Getting Past No" by William Ury for overcoming impasses. "Bargaining for Advantage" by G. Richard Shell blends research with practical tactics. "Negotiation Genius" by Malhotra and Bazerman covers overcoming obstacles and achieving brilliant results. "Never Split the Difference" by Chris Voss offers a former FBI negotiator's perspective. For emotional intelligence in negotiations, "Beyond Reason" by Fisher and Shapiro is invaluable. And for cross-cultural negotiations, "Negotiating Globally" by Jeanne Brett provides a comprehensive framework. Q: Are there negotiation books focused specifically on cross-cultural and international settings? A: Yes, several excellent resources address culture-specific negotiation dynamics. "Negotiating Across Cultures" by Raymond Cohen, "How Germans Negotiate" by W.R. Smyser, "Chinese Negotiating Behavior" by Richard Solomon, "Russian Negotiating Behavior" by Jerrold Schecter, "French Negotiating Behavior" by Charles Cogan, "Understanding Arabs" by Margaret Nydell, and "Case Studies in Japanese Negotiating Behavior" by Michael Blaker all provide deep insights into specific cultural approaches. "Culture and Conflict Resolution" by Kevin Avruch offers a broader framework for understanding cultural dynamics. ### [Red Herring](https://www.watershedassociates.com/learning-center/red-herring/) Recognize Red Herrings Diverting a party’s attention from the real issue to something tangential or unrelated, thus allowing the diverting […] Q: What is a Red Herring tactic in negotiation? A: A Red Herring diverts a party's attention from the real issue to something tangential or unrelated, allowing the diverting party to gain some advantage. It can appear in both the Exchange and Bargaining stages and may be used by collaborative or competitive negotiators. However, when used to divert attention from critical issues, there's serious risk to the relationship, and this use is not recommended in collaborative negotiations because it erodes trust and negates the premise of working together for mutual gain. Q: How do you prevent and defend against Red Herrings? A: Prevention comes from having followed BNP 11: Develop a joint agenda. When the discussion veers off course, keep focus by sticking to the agreed-upon agenda. Defense relies on BNP 16: Use the Power of the Negotiator's Probe. Ask open-ended questions to determine the relationship of the Red Herring to the items actually on the table for negotiation. If there's no legitimate connection, the Red Herring gets exposed and you can redirect to the real issues. ### [Renegotiations](https://www.watershedassociates.com/learning-center/renegotiations/) An agreement is an agreement. But in a relationship that is valuable, parties recognize that when critical underpinnings of an […] Q: When is it appropriate to renegotiate an existing agreement? A: An agreement is an agreement. But in a valuable relationship, when the critical underpinnings of an agreement truly change, parties may be better off renegotiating under new circumstances than requiring performance under the original terms. You can't use renegotiation to get a better deal you've second-guessed your way into. But if circumstances have genuinely changed, you have nothing to lose by discussing it. The other side may actually want to renegotiate some part of the agreement too but didn't ask. Q: How should you approach asking for a renegotiation? A: Attitude is everything - don't appear as the victim or the bully. State your case and ask for consideration based on significant changed circumstances. Develop and improve your BATNAs. Without threats, explain where things are headed if there's no renegotiation. And throw something new into the discussion - look for things the other side may need changed, things they gave up reluctantly last time that you could now offer, or things that have changed in their environment. Don't use shortcuts: begin with full preparation, establish your Negotiating Envelope, exchange information, retest assumptions, and follow all the Best Negotiating Practices. Q: How should you evaluate a request from the other side to renegotiate? A: Weigh the costs of renegotiation against: the cost of eventual nonperformance if you refuse, the strength of your BATNAs if you need an agreement elsewhere, the damage to the relationship if you say "No" versus the benefit if you say "Yes, if...", whether you're likely to need the same consideration in the future, and whether there's something new you could get in a renegotiation that you didn't get or forgot to get the first time. ### [Research](https://www.watershedassociates.com/learning-center/research/) Map out your research: The Players The Fact Base Standards and Benchmarks Research the Players – Stakeholders, Your Team, and […] Q: What are the three key areas of research during negotiation preparation? A: Research the players, the fact base, and standards and benchmarks. For players, that means identifying all stakeholders (not just the negotiators, but partners, users, regulators, customers, constituents, community, and media), building your own team with the right diversity of skills and backgrounds, and learning about the other party's business culture, company philosophies, and individual negotiators. For the fact base, investigate information to define the scope, targeting your assumptions and don't-knows. For standards and benchmarks, identify in advance which measurements you'll accept and which you'll reject. Q: Why can't you rely on information as a source of power in negotiations? A: With the Internet explosion, information is no longer a competitive advantage - it's the price of admission. The other side may come less prepared and you may gain an advantage, but you can't count on it. Sources like LinkedIn, annual reports, SEC filings, industry associations, Dun & Bradstreet, and LexisNexis are available to everyone. What matters is being thorough: research the individuals you'll negotiate with (Google them, see papers they've written, conferences where they've spoken, charitable interests), which will help find affiliations during the Exchange Stage. Q: Why is stakeholder identification so important in preparation? A: Think broadly and ask yourself "Who could possibly be impacted by this negotiation process?" Stakeholders are not usually the people who'll be negotiating but are the partners, users, regulators, customers, constituents, community, and media whose interests and perspectives you need to keep in mind. Missing a key stakeholder can derail an agreement during execution. Identifying them during preparation ensures their interests are accounted for and their potential influence is factored into your strategy. ### [Results of Effective Probing and Crunching](https://www.watershedassociates.com/learning-center/results-of-effective-probing-and-crunching/) Results of Effective Probing and Crunching Maintains control of agenda Keeps parties engaged in productive dialogue Isolates real areas of […] Q: What results should you expect from effective probing and crunching? A: Effective probing and crunching deliver six critical results: they maintain control of the agenda, keep parties engaged in productive dialogue, isolate real areas of interest and concern, uncover hidden fears and objections, achieve minor agreements that build momentum, and allow a gracious way to say "no" without shutting down the conversation. Together, these outcomes keep the negotiation moving forward and create the conditions for creative problem-solving. Q: How do probing and crunching work together during bargaining? A: Probing and crunching are complementary tools. Probing uses open-ended questions to explore interests, test assumptions, and generate creative options. Crunching is a tactical form of probing - a response to an offer that isn't a counter-offer but still gets the other side to move or rethink their position. Used together, they keep you in control of the conversation, help you challenge first offers without saying "no," and create space for the minor agreements that gradually build toward a full deal. ### [Say “Yes, if…” (and Know When to Say “No”)](https://www.watershedassociates.com/learning-center/never-say-no-or-yes-say-yes-if/) The Problem With “No” (and “Yes”) We have a natural tendency to respond to requests with a simple “yes” or […] Q: Why is "Yes, if..." more effective than saying "No" or "Yes" in negotiation? A: A flat "No" eliminates options, ends discussions, generates unproductive emotions, and is face-losing for the other side. A flat "Yes" is just as dangerous - it invalidates your last offer, violates trust, and removes give-and-take. The "Negotiated Yes" - a conditional "We can do what you asked if you can ___" - lets you say the word "yes" (which keeps things constructive), validates your opening offer, forces the other side to assess options rather than simply reacting, and is more likely to generate creativity. Most importantly, it gets the other side engaged in the negotiation. Q: What's the difference between a "Negotiated Yes" and a "Negotiated No"? A: Both use the "Yes, if..." structure, but the intent is different. With a Negotiated Yes, your condition is within the Envelope of Reasonability - it's doable, achievable, and you're genuinely negotiating. With a Negotiated No, your condition is outside the Envelope of Reasonability - it's a gracious way of declining without using the word "No." You're effectively saying no, but letting the other side do the math rather than slamming the door. Q: When should you actually say "No" instead of "Yes, if..."? A: In routine negotiations over pricing, terms, timelines, and scope, "Yes, if..." is almost always superior. But not everything is routine. If someone asks you to break the law, proposes something unethical, or crosses a fundamental boundary around safety, integrity, or core values, you say "No" clearly and without ambiguity. There's a paradox at work: because skilled negotiators so rarely say "No," when they do, it carries enormous weight. The other side knows it's not a tactic - it's a line. If you say "No" to everything, it's noise. If you reserve it for the moments that matter, it's a signal that can't be ignored. Q: What are the best alternatives to saying "No" in standard negotiations? A: You have several elegant tools. Use the Negotiated No with a "Yes, if..." condition so unreasonable it effectively means no. Ask questions with the Negotiator's Probe and leave their request unanswered. Offer legitimate sources for why the request isn't acceptable. Make your own proposal without answering their original request. Or use tactics like Limited Authority, Good Cop/Bad Cop, and the Crunch to redirect the conversation without ever saying the word. ### [Set the Stage](https://www.watershedassociates.com/learning-center/set-the-stage/) Know the Relationship You Want to Build If it is a long-term partnership you seek, then you must establish a […] Q: What are the three strategies for building a strong relationship during Preparation? A: Build trust, find affiliations, and develop Probes that strengthen the relationship while helping you learn the other side's interests. You plan these strategies during Preparation, then execute them in the Exchange and Bargaining stages. Trust-building activities include responsiveness, sincere curiosity in the other side's interests, respect for people and their time, keeping promises, showing empathy, managing your emotions, and listening as an ally. Trust first by giving closely held information to demonstrate you trust them. Q: Why are affiliations important and how do you find them? A: Affiliations are connections with your counterpart that help build rapport. The more you know about them, the more connections you'll find. For example, you might learn during Preparation that your counterpart is a Rotary Club member and so is someone on your team. Search for this kind of information in the Preparation Stage so you can use it in Exchange to create a personal connection. People negotiate more collaboratively with people they like and feel connected to. Q: How should you develop Probes that strengthen the relationship? A: Plan Probes with sincerity. Prepare questions framed to show you hear their concern and want to know more, rather than interrogating them about why they're resisting. Use open-ended questions that allow them to explain. Your questions should show appreciation for the other side's position without agreeing with it. Probes done with sincerity evoke positive responses and quiet negative or confrontational ones. And remember - Preparation isn't a one-time process. Throughout Exchange and Bargaining, you'll return to Preparation activities to enhance your negotiation. ### [Summarize Negotiations](https://www.watershedassociates.com/learning-center/summarize-negotiations/) The three levels of summarization After much has been discussed at the “negotiating table” BARGAIN End of bargaining round/meeting, before […] Q: Why is summarizing so important in negotiations, and when should you do it? A: Like Preparation, negotiators too often rush past this critical practice. There are three critical areas requiring summaries: after concluded discussion points (even as early as Exchange when key issues, non-negotiables, and standards are finalized), at the end of each round of bargaining (to ensure everyone has the same understanding of what's been agreed and what hasn't), and at final commitment (to ensure no room for doubt or confusion). It's not unusual for one side to think an issue was settled one way and the other side to think differently. Q: What are the three techniques for summarizing, and how do you choose between them? A: Verbal, written, and acknowledgement. Verbal is the simplest - articulate concluded issues and get confirmation. Written summaries create a record of all concluded points shared with your counterpart and team. Acknowledgement means getting written confirmation from the other side that the summary is accurate. The extent depends on the amount of detail, the stage of negotiations, and the depth of the relationship. For critical negotiations, if the other side won't acknowledge the accuracy of a summary, that lack of commitment is likely to increase as bargaining continues. Q: What should happen after total agreement is reached? A: Discuss and summarize next steps. Who will write the final summary and within what time period? Are there performance issues to prepare for? Is either party facing timing issues? Who will get back to whom with what? Also confirm you've met their interests and concerns, and get explicit acknowledgment that the final agreement meets their stated interests and goals. Don't leave these details unsaid or un-summarized. ### [Surprise Attack](https://www.watershedassociates.com/learning-center/surprise-attack/) Recognize the Surprise Attack Raising a previously undisclosed issue for the purpose of catching the other side unprepared and gaining […] Q: What is a Surprise Attack in negotiation and why is it risky? A: A Surprise Attack raises a previously undisclosed issue to catch the other side unprepared and gain an advantage in bargaining. It's one of the oldest negotiating tactics, written about in Sun Tzu's "The Art of Strategy." A variation is the Ambush, where a party arrives at bargaining with many more people than expected. In collaborative negotiations, don't use it - it will be seen as confrontational and the beginning of the deterioration of negotiations. Anything cooperative you do afterward will be received with suspicion. Q: How do you prevent and defend against a Surprise Attack? A: Prevention comes from thorough preparation (BNP 6), testing your assumptions (BNP 7), and building trust and relationships (BNP 8). There are no shortcuts. For defense, rely on BNP 11: Develop a joint agenda. If something comes up that wasn't on the agreed agenda, remind them it will have to wait for the next session. Resist the temptation to discuss the new item, even if you're a quick thinker. Responding without preparing is exactly what they want - catching you without information or analysis is the whole point of the tactic. ### [Tactics across cultures: Crunch and Nibble](https://www.watershedassociates.com/learning-center/tactics-across-cultures-crunch-and-nibble/) Crunch and Nibble are Common Tactics Across Cultures The Crunch Should you use Crunches when negotiating with someone from another […] Q: How should you use Crunches when negotiating across cultures? A: Absolutely use them - cultures with millennia of international trading experience are well versed in negotiation subtleties. But use them appropriately. Avoid humorous, aggressive, or metaphor-based Crunches (like "When pigs fly") in cross-cultural settings. Simpler, more sincere Crunches work best: "Do you have any flexibility on that?" "That's not what we expected." "That might be difficult." Or simply "Hmmm..." Nonverbal Crunches like silence, looking at your feet, or graciously calling a break can be very effective. Minimize displaying real or feigned emotion, and don't be influenced by it if they do. Q: How does Nibbling vary across cultures, and why does it matter? A: Nibbling is acceptable in just about every culture, but the style and intensity vary dramatically. Some groups, such as Chinese and overseas Chinese in Singapore, Malaysia, and Indonesia, are renowned for their prowess and persistence at Nibbling. If Nibbling is a minor part of your culture's negotiation style, don't be caught off guard. One example: a Taiwanese developer agreed to a Canadian firm's fee without negotiation, then nibbled vigorously when payment was requested. The Canadians were completely unprepared. Always be ready with a counter-Nibble, regardless of the culture you're negotiating with. ### [Task Orientation vs. Relationship Orientation](https://www.watershedassociates.com/learning-center/task-orientation-vs-relationship-orientation/) Which takes priority, individual accomplishment and responsibility, or maintaining human relationships? In task-oriented cultures, such as Australia, Germany, the Netherlands, […] Q: What's the difference between task-oriented and relationship-oriented cultures in negotiation? A: In task-oriented cultures (Australia, Germany, Netherlands, US), achieving goals means skillfully managing tasks and time. Decision-making often falls to individuals based on rank and expertise. Independent thinking is valued, and the path to success is through accumulation of individual achievements. In relationship-oriented cultures (most of Latin America, eastern and southern Europe, Africa, Middle East, nearly all of Asia), the group is a crucial part of identity. Decisions come top-down or through broad consensus, with emphasis on social skills, political acumen, and loyalty. Issues are discussed in small private groups to avoid embarrassing confrontations. Q: How should task-oriented negotiators adapt when working with relationship-oriented cultures? A: Always budget extra time for relationship-building and participate in it sincerely - this is your best insurance and has additional benefits in collaborative negotiations. Find ways to be creative with scheduling. Have flexible deadlines and don't be overly demanding that others fit your scheduling expectations. Try to think politically as well as logically when assessing the other group's positions, needs, and goals. The time you invest in the relationship isn't wasted - it's how business gets done. Q: How should relationship-oriented negotiators adapt when working with task-oriented cultures? A: Recognize that task-oriented groups are under more serious time pressure. Whatever you can do to work with their schedules will be met with gratitude and appreciation. Understand that a task-oriented group shows its respect by offering logical, well-planned proposals - their lack of emphasis on certain social aspects is considered neither risky nor unfriendly in their culture. It's not a sign of disrespect; it's how they demonstrate competence and professionalism. ### [The Art of the 100/100 Deal for Airports](https://www.watershedassociates.com/learning-center/the-art-of-the-100-100-deal-for-airports/) There’s always room for negotiation. That’s the good news.  There’s even better news: By being willing and ready to negotiate […] Q: Why should airports negotiate instead of using a take-it-or-leave-it approach with vendors? A: A supplier who feels like they lost will do everything to minimize costs of servicing the contract - it'll cost you more in the long run. But suppliers who feel they've been given a fair shake will go the extra distance, above and beyond the call of contract. They'll be more forgiving during all the little negotiations after the contract is signed, and they'll spread the word. Your airport's reputation in the community and marketplace stays intact, and you attract higher-quality vendors with better proposals. It's not always a buyer's market, but it's always a partnership market. Q: How is negotiation different from compromise in an airport context? A: Compromise is actually a way to avoid negotiation. It leaves no one feeling good, no one feeling bad, and no one feeling inspired or committed to the spirit of the contract. The ideal negotiation is a conversation with goals in mind where both sides work hard to create a pie that grows. In a relationship that values long-term objectives over short-term gain, everyone eventually gets their fair share and the pieces of that pie are actually bigger. In airport years, these relationships can be very long-term, sometimes extending past the careers of everyone at the original bargaining table. Q: What are the hallmarks of values-based negotiation for airports? A: As a buyer, care about the seller's business concerns. Have patience - take the time to really understand your seller's perspective and priorities. Establish trust by keeping appointments, paying bills on time, and making consistent decisions. Gather as much information as possible, including annual reports and SEC filings. Be willing to walk away and use impasses to think creatively. Be creative in finding solutions and giving and getting concessions. Never give concessions without getting one in return - a concession given too easily costs you credibility. Treat the seller fairly by fulfilling their needs as they fulfill yours. And always summarize, agree on next steps, and thank them. ### [The Negotiating Envelope](https://www.watershedassociates.com/learning-center/the-negotiating-envelope/) In the Preparation stage, you have to develop your Negotiating Envelope: Goals, Most Desired Outcomes (MDO), Least Acceptable Agreements (LAA), and […] Q: What is the Negotiating Envelope and why is it important? A: The Negotiating Envelope defines your parameters: MDO (Most Desired Outcome), Goal, LAA (Least Acceptable Agreement), and BATNA (Best Alternative to a Negotiated Agreement). Think of it like mountain climbing - if you know how high the mountain is, where most climbers consider success, and where beginners drop out, you can plot your route and measure your performance. Knowing your envelope lets you explore creative options within bounds and measure success along the way. It's called the Envelope of Reasonability because it addresses interests - yours and theirs - not dreams and doubts. Q: What are the four components of the Negotiating Envelope? A: MDO is everything you want and can defend - bold and assertive but not aggressive, and your fact-based plan for your opening proposal. Always develop this first. Goal is a likely outcome that addresses both parties' interests - research shows people with well-defined goals end up closer to their MDO, while those without end up closer to their LAA. LAA is the minimum you'll accept before walking away - broader than a bottom line because it satisfies interests and covers multiple issues. BATNA is your well-conceived Plan B if there's no agreement. Any result between your LAA and MDO means you're better off with an agreement than without one. Q: Why should you always develop MDO first, and what is the Zone of Possible Agreement? A: Develop MDO first, then Goal, then LAA to avoid anchoring yourself too low. If you start with LAA, your thinking shrinks. The negotiation is fluid - you don't stop refining these data points at Preparation. The Zone of Possible Agreement (ZOPA) describes the intellectual zone between two parties where agreement is possible and both sides can agree. Within this zone, an agreement is possible. Outside it, no amount of negotiation will yield one. It's also called "Mutual Motivation" - the place where you assert positions to address aligned interests. ### [Time and Patience in Negotiations](https://www.watershedassociates.com/learning-center/time-and-patience-in-negotiations/) Another Best Negotiating Practice that comes into play throughout the negotiation process is your use of time and exercise of […] Q: Why is patience so critical in negotiation? A: Impatience is the most deadly of all negotiating mistakes. A quick solution may be a bad solution. Time is your enemy but patience is your weapon - if you can wait, you can win. Patience softens expectations and encourages flexibility. It allows time for the other side to accept otherwise tough choices. When you give something away easily and quickly, the other side is less satisfied because it appears to be a concession of low value. A hastily arranged solution or agreement is costly because you'll make unnecessary concessions. Q: How can proposing a solution too early backfire? A: Proposing a perfectly good solution before the other side sees that interests are more aligned than not can be detrimental - they may reject the idea out of hand and be reluctant to return to it later. Similarly, hastily conceding seemingly minor points in Bargaining can cause damage because a small issue may have larger ramifications. The lesson is to learn to be brilliant at doing "nothing." Patience can mean seconds, minutes, hours, days, weeks, months, or even years depending on the situation. Q: How do you manage time pressure and deadlines in negotiation? A: Deadlines force concessions, so establish deadlines for them and Probe any deadline they set. If things are moving too fast, challenge imposed deadlines, recognize when you're losing control, and call for a caucus or break. To mitigate self-imposed time crunches, sell the value of your organization long before bargaining, proactively build relationships with counterparts and decision makers, prepare thoroughly, and leverage face time before selection, in bargaining, and to close the deal. And remember - patience works in both directions. Their patience may compel you to make unnecessary concessions too. ### [Tools of Influence](https://www.watershedassociates.com/learning-center/tools-of-influence/) Negotiation - One of Four Major Influence Tools Negotiation is a critical tool to influence decision-making. But it is not […] Q: What are the four major tools for influencing decisions, and how is negotiation different? A: The four tools are power (command, coercion, threat, force), payment (reward, compensation, material incentives, bribery), persuasion (selling, presentation/educating, argument, lobbying), and negotiation (give-and-take, exchange, bargaining, joint decision). All can be used effectively and legitimately, though not all methods within each are legitimate. Negotiation has an edge over the others because when done well, it brings new ideas to the table that increase value to all parties. The other tools don't inherently create new value the way collaborative negotiation does. Q: How do the other influence tools overlap with negotiation? A: Power, payment, and persuasion all play critical roles within negotiations. You might use persuasion to make your case during Exchange, leverage the power of your BATNA during Bargaining, or structure payment terms as part of your creative concessions. The key distinction is that negotiation isn't always the right tool for every situation - sometimes a direct command, a financial incentive, or a persuasive presentation is more appropriate. But when there's an opportunity for give-and-take and joint decision-making, negotiation creates the most mutual value. ### [Ultimatums](https://www.watershedassociates.com/learning-center/ultimatums/) Recognize Ultimatums A final proposal that is delivered as not negotiable, often referred to as “Best and final,” or “Take […] Q: What is an ultimatum in negotiation and when does it typically appear? A: An ultimatum is a final proposal delivered as non-negotiable, often called "best and final" or "take it or leave it." It typically follows a series of offers and is always the last one, often with a short deadline for response. It appears in the Conclude stage and is used by competitive and compromise negotiators. It's by nature confrontational, not collaborative, and not open to creative solutions. A collaborative negotiator would instead gracefully explain that interests apparently aren't aligned and decide not to reach agreement, hoping the other side will reconsider. Q: How do you defend against an ultimatum? A: You can't prevent an ultimatum, but you have several defenses. First, use the Negotiator's Probe - ask open-ended questions to determine if the ultimatum is real or a bluff. If it's real and falls below your LAA, you've already determined you're better off without an agreement. If it's at or above your LAA and you'd prefer agreement over deadlock, counter with a "Yes, if..." or try for a Nibble. But be cautious - if the ultimatum is real and not a bluff, Nibbling may take this last offer off the table entirely. ### [Urgent vs. Relaxed](https://www.watershedassociates.com/learning-center/urgent-vs-relaxed/) How do different cultures manage time? Cultural attitudes about time usually run between urgent (or brisk) to relaxed. How long […] Q: How do urgent and relaxed cultural attitudes toward time affect negotiations? A: Urgent cultures (US being at the extreme end) feel a need to complete one step or topic before moving on. Jumping around without "getting closure" drives them to desperation. Relaxed cultures (South Asia, most of Africa, eastern and southern Europe, most of Latin America) find "looping" between topics completely normal and the most rewarding way to function. They may feel unnecessarily pressured when working with urgent types. The differences go beyond pace to how long meetings should take, how quickly messages should be returned, how many minutes late is acceptable, and whether a deadline is firm or a convenient fiction. Q: What tips help urgent negotiators adapt to relaxed cultures? A: Plan well in advance for a slower pace and communicate expectations to your team and those you report to. Have other things to do while waiting - review correspondence while a late meeting starts. Indulge in social chat when the group isn't ready for business; you'll learn valuable relationship information. Plan longer slack times in project schedules. Never become angry or issue frustrated ultimatums, especially publicly. If you're having severe time-lag problems, appeal privately to your closest counterpart and ask what can be done to help them understand your time constraints. Q: What tips help relaxed negotiators adapt to urgent cultures? A: Avoid the temptation to see urgent people as insensitive or unrealistic - rigid time constraints are part of how their society is organized, not necessarily personal preference. Work with and negotiate schedules in more detail than you're accustomed to, ensuring proper understanding on both sides. Never make promises you know you can't keep - it's better to be honest and work out a plan than to say the pleasing thing and not follow through. Help motivate your team to work with the agreed schedule, and communicate regularly about unexpected delays so you can find solutions together. ### [What Can Obstruct Performance](https://www.watershedassociates.com/learning-center/what-can-obstruct-performance/) Even the best of agreements can result in conflict during execution. Look out for these obstacles, and remember to apply […] Q: What are the most common obstacles that can derail a negotiated agreement during execution? A: Even the best agreements can hit trouble. Watch for: contract clauses that aren't clear and lead to misunderstandings, naysayers or second-guessers in either organization who voice their lack of support late in the process, unforeseen events that justify renegotiation, minor issues that get ignored and gradually grow into larger problems, and the two sides simply stopping engagement after the agreement is signed. Don't waste all the relationship capital built during negotiations - keep in touch even when things are going well. Q: How do you prevent naysayers from undermining a negotiated agreement? A: Hedge against late-arriving opposition by keeping key stakeholders informed throughout the negotiation process, not just at the end. Save your notes regarding what was traded for what and why. When stakeholders understand the reasoning behind concessions and trades, they're far less likely to second-guess the result. Apply lessons learned from your first engagement to resolve issues and minimize conflict as they arise. ### [What Negotiating Strategy to Use?](https://www.watershedassociates.com/learning-center/what-negotiating-strategy-to-use/) Knowing your negotiation environment is critical to using the most appropriate strategy. We call this “Situational Awareness.” In most situations […] Q: What are the five negotiating strategies and when should you use each one? A: Competitive (win-lose): assert your interests with no concern for theirs - use when you have all the power, it's a one-time transaction, and you value outcome over relationship. Avoidance: find no value in addressing the conflict - use when interests aren't aligned and confrontation isn't worth it. Accommodation: focus on their interests to preserve the relationship - use when trust is high and outcome isn't as critical. Collaboration (win-win): satisfy all parties' interests and gain real commitment by expanding the pie before dividing it. Compromise (win-lose/lose-win): partially satisfy all parties - use only when stakes are small, time is short, or collaboration has failed. Q: What is Situation Awareness and why does it matter more than negotiation trivia? A: Situation Awareness means thinking clearly about the relationship you have to the other party and grasping the relative importance of the outcome. Is it a one-time low-stakes agreement or an important transaction with a lot at stake for both sides? This matters far more than "negotiation trivia" like wearing a power suit, sitting at a round table, or using purposeful body language. Those provide a superficial touch, but aren't nearly as important as awareness of your situation, consistency of process, and mastery of Best Negotiating Practices. Q: How do skilled negotiators actually use these five strategies? A: Skilled negotiators don't lock into one strategy. They typically use all five during a single negotiation: they collaborate to create value, compete for the biggest slice of the pie, compromise when necessary, accommodate to create goodwill, and avoid when there's no value in an agreement. The key is Situation Awareness - it helps you choose the right approach at the right moment, and it's especially critical in collaborative negotiations because the situation can change in an instant. Take a position of power and flaunt it today, and you pay for it tomorrow. Q: Should you always let the other side make the first offer in a negotiation? A: The "Never Open First" approach is too simplistic and promotes tactics over strategy. The valid concern is that opening first gives the other side information about your strategy. But in a typical negotiation you're rarely dealing with a single issue, so opening first on one issue doesn't impact the larger negotiation. Research from Duke, Michigan, and Houston universities found that negotiators who make the first offer tend to experience more anxiety but achieve better economic results - as long as they don't let that anxiety sabotage their opening. Q: When should you let the other side open first? A: Let them open when you lack data to estimate their MDO or LAA (their opening will validate or invalidate your assumptions), when you're unsure of your own MDO and can't assess a reasonable opening for your team, when you're anxious about opening (ask what they think is fair, then react accordingly), or when cultural expectations dictate it (you'll lose more by disrupting their cultural norms than by following them). Critical rule: never second-guess your MDO if their opening is more aggressive than expected. That's Anchoring, and you should stand your ground. Q: When is it better to open first in a negotiation? A: Open first when both sides are well-informed and sophisticated (you control tempo), when you have better information and leverage (you set the standards), when the deal involves detailed written terms (your document becomes the working draft), when you're certain of their LAA (you can anchor just beyond it), when facing an aggressive opponent (you set the Envelope of Reasonability), or when the other side is anxious (making the first move wins favor). Remember: it's not he who speaks first who loses, but he who speaks without preparing who loses. ### [Who Opens First in Negotiations?](https://www.watershedassociates.com/learning-center/who-opens-first-in-negotiations/) Who Should Open First in Negotiations? One school of thought is “Never Open First”. Experience shows that the “Never Open First” approach […] ### [Why Not Negotiate?](https://www.watershedassociates.com/learning-center/why-not-negotiate/) The pace of change, the global marketplace, and the unexpected connections among the people with whom you do business demand […] Q: Why is negotiation more powerful than other ways of getting what you want? A: Anyone can land a favorable deal when armed with market power, money, information, or position. But abusing that influence and resisting negotiation when you have the upper hand comes at great risk. The company you have a strategic alliance with in one market may be a strong competitor in another. Workers hold 8 to 10 jobs during their careers - the person you "brow beat" today may represent your potential investor next year. Negotiation builds trust, and people always extend the most consideration and give their best deals to people they like and trust. Q: Why do people resist negotiating? A: Three predictable reasons. First, patience - in a world where fast food isn't fast enough, the preparation and thought required for negotiating seems painful. Second, socialization - adults have been taught not to ask for what they want (unlike children, who are natural negotiators and unabashedly ask for what they want). Third, invalid assumptions about what's negotiable - what wasn't negotiable in the past may be now. As Einstein illustrated when giving the same exam two years in a row: "The answers have changed." Q: What is negotiation NOT? A: Negotiating is not arguing - it's talking with a goal in mind. Arguing is for fanatics. Negotiation is not manipulation - manipulation involves convincing someone you're right when you know you're wrong, or selling something you know they don't need. Negotiating doesn't require aggressiveness - it requires assertiveness and a willingness to ask for what you want. And negotiation is not a quick fix - it requires adherence to a process that takes time and leaves both sides feeling they can trust each other again. Most powerfully, negotiation works in conflict avoidance, not just conflict resolution. ### [Women Negotiating in a Gender Biased Situation](https://www.watershedassociates.com/learning-center/women-negotiating-in-a-gender-biased-situation/) Women negotiators are often concerned about how to gain credibility and respect when working with cultures strong gender bias. Interestingly, […] Q: What's the key to gaining credibility as a woman negotiating with cultures that have a strong gender bias? A: Interestingly, the key is not so much how the woman behaves, but how her male teammates behave towards her. Respect is gained not by behaving more assertively, but by male teammates showing the respect and deference commensurate to her rank and role. The first step is to discuss the issue with your male team members in advance of the initial meeting. Establishing credibility doesn't happen overnight - it may take several encounters before the other team gets the message. Q: What practical guidance should women follow in gender-biased negotiation environments? A: Be patient and consistent, and always gracious and polite. Overly assertive behavior or trying to prove a point will only set you back. Participate in social events as long as your male teammates are attending. In general, don't allow yourself to end up alone with one or more of the other side's male team members - this is more for appearance than any risk. Be moderate with alcohol if everyone else is drinking, opting for less potent drinks. Dress should be businesslike in every setting. The goal isn't to change your counterpart's culture - it's to negotiate a mutually beneficial agreement. ## Additional Resources - Negotiation Glossary: https://www.watershedassociates.com/negotiation-glossary/ - Best Negotiating Practices: https://www.watershedassociates.com/best-negotiating-practices/ - Insights Blog: https://www.watershedassociates.com/insights/ - About: https://www.watershedassociates.com/about/ - Contact: https://www.watershedassociates.com/contact/ - Sitemap: https://www.watershedassociates.com/sitemap_index.xml