Deepak Malhotra Shares His Award Winning Negotiation Tips | CNBC
CNBC・49 minutes read
Negotiation expert Deepak Malhotra emphasizes the human element in negotiations, introduces "negotiation tweaks," and advises on strategy meetings before negotiations. He stresses the importance of honesty, credibility, and understanding the other party's perspective for successful outcomes in negotiations.
Insights
- Negotiation expert Deepak Malhotra stresses the significance of understanding the human element in negotiations to achieve successful outcomes, emphasizing the importance of human interaction, empathy, and building better understandings and agreements.
- Malhotra introduces innovative concepts like "negotiation tweaks," advises rewarding good arguments over finding the right answer, and underlines the necessity of balancing attention between the substance of the deal and the negotiation process for effective negotiations, encouraging a comprehensive approach that involves diverse perspectives.
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Recent questions
What is negotiation expert Deepak Malhotra known for?
Specializing in negotiations, deal-making, and conflict resolution.
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Summary
00:00
"Negotiation Expert Emphasizes Human Interaction Success"
- Deepak Malhotra, a negotiation expert from Harvard Business School, specializes in negotiations, deal-making, and conflict resolution.
- His work extends beyond business to include conflict resolution in various sectors like healthcare and government.
- Negotiation, to Malhotra, is fundamentally about human interaction and achieving better understandings and agreements.
- He emphasizes the importance of understanding the human element in negotiations to achieve success.
- Malhotra introduces the concept of "negotiation tweaks," drawing inspiration from golf coaching for quick fixes in negotiation strategies.
- He advises on the necessity of a strategy meeting before negotiations, involving diverse perspectives for a comprehensive approach.
- Rewarding good arguments over finding the right answer is crucial in fostering a collaborative negotiation environment.
- Understanding the consequences of no deal is essential, but focusing on the other party's perspective can lead to better outcomes.
- Balancing attention between the substance of the deal and the negotiation process is vital for successful negotiations.
- Negotiating process before substance involves understanding the timeline, key decision-makers, and potential obstacles in reaching a deal.
12:25
Effective Negotiation Strategies for Successful Conflict Resolution
- Mediator prepares parties for conflict escalation during a week-long process, warning that hatred will intensify around day three.
- Normalizing the process is crucial to prevent parties from prematurely quitting due to heightened emotions.
- Businessman in South Asia insists on Western partners experiencing the journey to his facilities to understand operations better.
- In negotiations, adopting a learning mindset is advised to understand all parties' interests and constraints.
- Asking why instead of what in negotiations uncovers underlying motivations and aids in resolving seemingly incompatible positions.
- Preparing for tough questions and potential weaknesses in pitches is essential to maintain credibility and address concerns proactively.
- Initiating the first offer in negotiations grants control over framing and expectations, shaping the negotiation's direction.
- Presenting offers with accompanying narratives enhances their impact and increases the likelihood of acceptance.
- Labeling concessions and managing attributions help control how concessions are perceived, avoiding negative interpretations.
- Negotiating multiple interests simultaneously rather than haggling over individual issues leads to more flexible and beneficial outcomes.
26:06
Effective Negotiation Strategies for Successful Agreements
- In negotiations, it is crucial to understand the other party's priorities and flexibility levels to tailor proposals effectively.
- Expressing flexibility in negotiation styles and structures can increase the likelihood of reaching agreements.
- Allowing various payment methods or currencies in a deal can enhance the chances of successful outcomes.
- Promptly rejecting unreasonable offers can set a tone of seriousness and avoid wasting time.
- Preparing in advance for negotiations, including anticipating tough questions and planning responses, is essential.
- Recognizing and respecting the constraints of the other party can aid in navigating towards mutually beneficial agreements.
- Avoid assuming the other party is irrational or stubborn; instead, seek to understand their perspective and interests.
- Educating the other party on the value you bring or aligning offers with their interests can facilitate agreement.
- Writing the other party's "victory speech" in negotiations can help ensure they can accept a deal without losing face.
- Ignoring ultimatums in negotiations can prevent unnecessary conflict and allow for more productive discussions.
39:10
Effective Negotiation Strategies for Success
- Negotiations should not end with a simple "no," but rather with a clear explanation of why the deal couldn't be reached, pushing for a yes or detailed reasoning.
- After a negotiation, it is advisable to send an email to confirm agreements, reframe any misunderstandings, and gather additional information that may have been missed during the meeting.
- Honesty is crucial in negotiations, as lying can damage credibility, leading to potential failure in future deals where credibility is the only leverage.
- Maintaining honesty and credibility is essential, as credibility can become the sole reason someone is willing to negotiate with you, emphasizing the importance of always being truthful.
- Losing credibility often occurs gradually through small actions like not following through on promises or changing stances during the negotiation process, highlighting the need for consistent honesty.
- The speaker encourages attendees to reflect on their negotiation skills, aiming to improve even further, suggesting that even skilled negotiators can always enhance their abilities.
