Strategies for Negotiating Effectively When You're at a Disadvantage
In the realm of negotiations, both displayed dominance and the imagining of strong alternatives can significantly improve outcomes, even when objective power is lacking. A study conducted by INSEAD researcher Michael Schaerer and his colleagues, as well as University of Southern California professor Scott S. Wiltermuth and his colleagues, has shed light on these strategies.
The research involved a negotiation simulation where pairs of undergraduates played the role of coworkers hammering out details of a virtual-reality project. Some participants were encouraged to engage in dominance behaviours, while others were not. Some were told they were in a stronger negotiating position, while others were told they were in a weaker position.
The results showed that low-power negotiators who engaged in dominance behaviours felt more powerful and claimed more value. High-power negotiators' dominance behaviours helped create new sources of value, leading to pairs being more successful at expanding the pie by avoiding direct challenges and relying on collaborative moves.
The concept of BATNA, or Best Alternative to a Negotiated Agreement, is a key factor in negotiation. Cultivating a strong alternative option in your mind, or at least imagining having one, can help you stay psychologically and strategically empowered. This reduces neediness and increases your ability to assert boundaries.
Displayed dominance can increase your perceived power and lead to claiming more value in negotiations. Expressing dominance through expansive postures, speaking assertively and clearly, taking the lead in conversation, speaking loudly, and showing controlled anger can be effective. However, it's crucial that dominance behaviours appear authentic and not manipulative, as counterparts may resist if they sense a power grab.
One should also be mindful of channeling anger strategically towards the proposal rather than the person ("strategic umbrage") to demonstrate conviction without escalating conflict. Maintaining poise and confidence when showing assertiveness can make the behaviour more effective.
Imagining a strong BATNA can also enhance one's power in negotiation. However, negotiators who imagine a strong alternative but don't make the first offer may not make a good deal, as they can become anchored by the other side's first offer and distracted by their high aspirations.
Additional tips based on research include signalling a cooperative intention early to avoid power escalation, listening carefully and framing interests clearly, using collaborative language, acknowledging the other party’s position without conceding prematurely, managing emotions by staying calm and positive, and focusing on creating joint value rather than competing over power.
In summary, when lacking power, acting with controlled dominance to boost your perceived strength and mentally preparing strong alternatives to maintain your leverage are key tactics. Combining assertive behaviour with strategic mindset shifts can improve negotiation outcomes despite actual power imbalances. The study leads to the interesting conclusion that in negotiation, positive beliefs—even if they're not rooted in reality—can make us more ambitious and successful.
- Engaging in dominance behaviors can increase perceived power in negotiations, leading to the claiming of more value (Displayed dominance).
- In negotiations, the BATNA (Best Alternative to a Negotiated Agreement) is a key factor in maintaining power and psychological empowerment (Imagining a strong BATNA).
- Strategically channeling anger towards the proposal rather than the person (Strategic umbrage) can demonstrates conviction without escalating conflict.
- To improve negotiation outcomes, it's beneficial to signal a cooperative intention early, listen carefully, frame interests clearly, use collaborative language, acknowledge the other party’s position without conceding prematurely, manage emotions, and focus on creating joint value instead of competing over power (Additional tips).
