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NEGOTIATION: Myths, Misperceptions and Damned Lies
*Features Margaret Neale, Professor of Organizations and Dispute Resolution, Stanford Graduate School of Business
It's better to receive the first offer than to give it. Honesty is the best negotiating policy. Don't ever let them see you sweat. Professor Neale convincingly debunks these common beliefs as she shares the results of empirical research on negotiating strategies and the process of "mutual influence" that drives negotiation. In fact, making the first offer can set the bar high - to your advantage. Being honest about your bottom line can backfire. And emotions can play a powerful role in negotiations.
Before you begin, be clear about your goal. Is it to get as much value out of a deal as possible? To develop a relationship and create value for both parties? Or simply to win - a dangerous goal! In any case, you need to determine three things: your bottom line, your optimistic target, and your alternatives if the deal fails. Try to figure out the same of your negotiating counterpart. The more prepared you are, the more flexibility you have in negotiating strategies. In the end, don't settle for just any deal. Work to get a good deal - or it's no deal.