Negotiating as a team has definite advantages over going solo, but it also presents major challenges along the way. Preparation is key. Certain strategies can help you meet team challenges and negotiate better.
3. According to a study led by Leigh Thompson of
Northwestern University, the presence of at least
one team at the negotiating table leads to
greater joint gains in the negotiations.
Goteams!
NEGOTIATING
4. Better information,
with more perspectives
Better control,
with more negotiating tactics
(good cop/bad cop, etc.)
2 team advantages:
NEGOTIATING
5. However, teams present
their own challenges, due to
interpersonal interactions.
5 main challenges are:
1. Lack of coordination
2. Poor control of process
3. Collective preparation
4. The caucus
5. When conflicts arise
NEGOTIATING
7. Select your
team carefully
STRATEGY:
Functionally homogeneous
teams tend to understand each
other better. However,
multifunctional, diverse teams
may be preferable or necessary.
CHALLENGE 1: LACK OF COORDINATION
NEGOTIATING
8. Allow for
warm-up time
STRATEGY:
Before negotiations start, get
to know each other’s
priorities and functions to
foment cohesion and
camaraderie.
CHALLENGE 1: LACK OF COORDINATION
NEGOTIATING
9. Challenge2
Teams can take longer to share
information. Warming-up is
slower and then information
sharing (and tracking) may
cause delays.
Poor control of process
NEGOTIATING
10. Assign issues to members
STRATEGY:
To assign: Teammate 1 Teammate 2 Teammate 3 …
Issue 1
Issue 2
Issue 3
Issue 4
Issue 5
Issue 6
…
CHALLENGE 2: POOR CONTROL OF PROCESS
NEGOTIATING
11. Assign roles to members
STRATEGY:
To assign: Teammate 1 Teammate 2 Teammate 3 …
Issue 1
Issue 2
Issue 3
Issue 4
Issue 5
Issue 6
…
CHALLENGE 2: POOR CONTROL OF PROCESS
To assign: Teammate 1 Teammate 2 Teammate 3 …
Contact
Framing
Options
First offer
Concessions
Agreement
Closing
NEGOTIATING
12. Appoint a leader
STRATEGY:
While most team roles require
specialization, one person
must stay in charge of seeing
the big picture, keeping the
team intact and taking control
when needed.
CHALLENGE 2: POOR CONTROL OF PROCESS
NEGOTIATING
13. Challenge3
For role assignments and
synchronization efforts to work,
teammates must prepare
together. But there’s also prep
work that can be done
individually.
Collective preparation
NEGOTIATING
14. Map individual and organization needs for both sides
and come together as a team to get on the same page.
CHALLENGE 3: COLLECTIVE PREPARATION
My side Other side
Individual needs
Organization needs
Individual alternatives
Organization alternatives
Prepare individually and as a team
STRATEGY:
NEGOTIATING
15. Challenge4
To privately assess progress
and deal with unforeseen
circumstances, caucusing is
important, although some
see it as a sign of weakness or
as a distraction.
The caucus
NEGOTIATING
16. Indicate that
you will caucus
STRATEGY:
Conveying before negotiations
start that your team will take a
break at some point will help
avoid the appearance of
weakness when it happens.
CHALLENGE 4: THE CAUCUS
NEGOTIATING
17. Keep focus and
impose a time limit
STRATEGY:
When your counterpart asks
for a caucus, first summarize
(and come to a consensus on)
what has already been
agreed upon.
CHALLENGE 4: THE CAUCUS
NEGOTIATING
19. Prepare with a conflict
resolution system
STRATEGY:
Map it out ahead of
time and have
teammates agree.
CHALLENGE 5: WHEN CONFLICTS ARISE
NEGOTIATING
20. Caucus, if possible
STRATEGY:
Especially if you’ve prepared
for it, a caucus can get your
team working as a cohesive
unit once again.
CHALLENGE 5: WHEN CONFLICTS ARISE
NEGOTIATING
21. More research at ieseinsight.com
Based on a technical note for
teaching purposes titled
“Negotiating in a Team,” by
IESE’s Kandarp Mehta and
Guido Stein.