Business Negotiation December 29, 2015

Psychological Approaches That Help Move Talks to Closure

Negotiators settle when each believes the other side has conceded most of what it will and further efforts are not likely to be very productive. At this point, the desire to close outweighs the desire for more concessions and the parties move toward closure. Reaching this point sooner is often preferable to letting the almost closed negotiation go on and on because already-settled issues sometimes fall apart with too much talk. The nine psychological approaches suggested can gently move the bargaining process from indecision to agreement. One: Assure the other person that she is wise to reach agreement. Give her good reason to support a closing decision now. Good references from pleased associates help. Tell the other why they will be pleased and satisfied. Don’t belabor the reasons or it may create doubts instead of reassurance. Two: Act as though agreement has been reached on the main issues. Start talking about details like when the new agreement will begin, the wording of a procedure or whether they or you will let others in the organization know of the new arrangement. Three: Make repeated requests for agreement and closure. Don’t be afraid to say, “We know everything we need to know to agree, don’t we?” Say it again as you go along. Four: If you get a “No” answer to the above, ask why. The other party will probably tell you. You will then have something specific to overcome or improve on. Do it again if closure doesn’t follow. Five: Make the benefits of agreement as tangible and real as possible in terms of the other party’s needs, not yours. Six: Fear of loss can be a stronger motivator for settlement than desire for gain. Many negotiators are more strongly motivated to avert loss than to gain something by prolonging bargaining. Talks can be moved to closure by laying out for the other side the negative consequences that may naturally follow if agreement is not reached at this time. In doing so be careful not to threaten or otherwise jeopardize the relationship you now share. Seven: Offer the other party a choice between acceptable choices A and B. It shifts the other party’s decision from choosing to agree or not to choosing between two satisfactory alternatives. Eight: Make the final deal a little sweeter than the other though it would be. An unexpected kindness or treat carries a special value as talks close. Nine: Tell a story that supports closing the deal now. An appropriate non-threatening story can make closure more persuasive than a wealth of rational arguments. People act in their self-interest. These nine approaches lead the other person toward closure because they take into account their needs and help them relieve some of the tensions inherent in making a “Yes” decision.