By David A. Lax
Read or Download 3-d Negotiation: Powerful Tools to Change the Game in Your Most Important Deals PDF
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Extra resources for 3-d Negotiation: Powerful Tools to Change the Game in Your Most Important Deals
We systematically analyze negotiations and teach what we’ve learned to senior executives, top government officials, and MBAs at Harvard and around the world. This long-term engagement with deals and deal-makers has left us increasingly dissatisfied with the model that dominates most of the negotiations—and the thinking about negotiations—that go on today. What’s the problem? Most negotiators focus on a single dimension of the bargaining process. They are “one-dimensional,” in our terminology, and the single dimension that they embrace is tactics.
Of course, many negotiations center on economic value—that is, potential financial gains to the negotiating parties. Suppose that we own a patent that could dramatically boost the value of your products in a market segment in which our firm has no interest in competing. A licensing deal could create economic value for both of us and would certainly be more appealing than the no-deal alternative. But value can—and in many cases, should—be understood more broadly. Think of the example of Egypt and Israel negotiating over the Sinai described earlier.
When negotiators went beyond the opposing positions, however, they uncovered a vital difference of underlying interest and priority: the Israelis cared more about security, while the Egyptians cared more about sovereignty. The solution was a demilitarized zone under the Egyptian flag. Differences of interest or priority can open the door to unbundling different elements and giving each party what it values the most at the least cost to the other (as the Egyptians and Israelis did): a core principle of deal design.