Managing status in a negotiation

Are people concerned about status in any negotiation? Yes, they are. The question is, how do you deal with your concerns and those of the others?

This is part one of six-part knowledge letter sharing guidelines applicable in most situations.

Select the correct benchmark

Often the negotiators make tacit comparisons with others. When the other side finds certain items in their stance unacceptable or even offensive, they fail to understand the bases.

In preparation or the dialog phase in a negotiation, think who or what have you selected as the benchmark. Ask yourself,

?     how relevant and helpful is the reference?

?    How impartial is the criterion? Choosing a standard or benchmark only to enhance your status may cause mistrust.

?     Are you shooting for an outcome ideal for you and way out of the agreement zone? Assess the information accurately and open realistically within the bargaining zone.

In turbulent economic times, we are especially prone to make unrealistic comparisons. For example, the real estate market boom peaked in 2006. Since then, the real estate market has declined significantly. However, many homeowners have a hard time adjusting their prices to the current market reality. The typical seller still remembers the houses sold at the peak prices and fail to change their expectations. Therefore, the homes do not sell.

For developing an ability to negotiate skillfully, check out “The World Is A Bazaar – Life Is A Negotiation.”

Satish Mehta

Author, Speaker, Coach
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