How Great Questions Improve Negotiation Outcomes

Negotiation is the most popular elective at Harvard Business School. Logical, as so much of business (and life) comes down to finding ways to work with others to achieve goals.

When negotiating, the right questions—asked both of yourself and others—can accelerate the process of finding the coveted but sometimes elusive win-win.

How do you get there? 

First, understand both parties’ motivations and goals; second, capitalize on differences to create value; and, third, claim your value.

And, never forget: you negotiate with people, not companies.

Great Questions

Here are four sets of questions that consistently lead to better negotiation outcomes:

1. Before the negotiation, ask yourself:

   • What value does each party bring? 

   • What are the primary and secondary interests for each party? 

   • Who has leverage? 

   • What are my non-negotiables? 

   • What's my BATNA (Best Alternative to a Negotiated Agreement)? Understanding your fallback option if the negotiation fails gives you confidence and leverage. The stronger your BATNA, the stronger your position.

2. To start the negotiation, ask:

   • What do you want at the end of this meeting that you don’t have now? Get them to share as much as possible.

   • What does the other party really want? 

   • How are our perceptions different? Looking past surface-level demands to uncover their true interests allows you to propose solutions that satisfy them without compromising your own goals.

3. How can we both win? Ask:

   • How can I frame this as solving a problem together instead of a competition? Shifting the mindset from adversarial to collaborative reduces friction and builds rapport. 

   • How can we find the efficient frontier by looking for differences where value can be created? Try to negotiate multiple issues simultaneously. 

   • One way to validate honesty and solve problems of trust and differences is a thoughtful contingency clause. Is a contingency possible? Don’t argue over the future—bet on it.

4. Do an ethics check. Ask yourself:

   • Would I be comfortable if my actions were fully and fairly described in the newspaper? 

   • Does my behavior in the negotiation reflect the kind of person I want to be known and remembered as?

Great Finds

I recently attended a half-day event offered by the Ritz-Carlton Leadership Center called “A Culture of Excellence & Brand Differentiating Service.” It was super interesting to learn about the art and science behind the Ritz “user experience.”

I appreciated their emphasis on treating their staff just as well as their guests. Their motto is “We are Ladies and Gentlemen serving Ladies and Gentlemen.” At its core, this motto establishes equitable, dignified exchanges between staff and guests. It rejects the traditional hierarchical view where service workers are considered inferior to those they serve. This philosophy extends to any business: treat your employees the way you would want them to treat your clients.

Great Inspiration

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Onward!

Mike