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NEGOTIATING
WINNING
STRATEGIES
FOR TEAM
NEGOTIATIONS
NEGOTIATING
Research has shown that
teams negotiate better than
lone individuals in almost
all situations.
1+1=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
Better information,
with more perspectives
Better control,
with more negotiating tactics
(good cop/bad cop, etc.)
2 team advantages:
NEGOTIATING
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
Challenge1
NEGOTIATING
Within teams, both interpersonal
problems and task-related
conflicts can come into play.
Lack of coordination
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
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
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
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
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
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
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
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
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
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
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
Challenge5
It’s almost inevitable during
the course of tense
negotiations.
When conflicts arise
NEGOTIATING
Prepare with a conflict
resolution system
STRATEGY:
Map it out ahead of
time and have
teammates agree.
CHALLENGE 5: WHEN CONFLICTS ARISE
NEGOTIATING
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
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.
LEARN MORE
Wanttolearn 

tonegotiatebetter?

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Winning Strategies for Team Negotiations

  • 2. NEGOTIATING Research has shown that teams negotiate better than lone individuals in almost all situations. 1+1=3
  • 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
  • 6. Challenge1 NEGOTIATING Within teams, both interpersonal problems and task-related conflicts can come into play. Lack of coordination
  • 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
  • 18. Challenge5 It’s almost inevitable during the course of tense negotiations. When conflicts arise 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.