Breakthrough Business Negotiation

About the Author

Michael Watkins is an associate professor of business administration at Harvard Business School, where he specializes in negotiation and corporate diplomacy. His experience is not limited to academia; he is an associate and frequent participant in the Program on Negotiation at Harvard Law School. Watkins brings a wealth of knowledge and practical insights into the art of negotiation, making him a respected authority in the field. His book, "Breakthrough Business Negotiation: A Toolbox for Managers," reflects his deep understanding and expertise, providing invaluable guidance to managers and leaders striving to excel at the negotiating table.

Main Idea

"Breakthrough Business Negotiation" delves into the intricacies of negotiation, illustrating that it is far more complex than simple offer and counter-offer exchanges. Watkins emphasizes that successful negotiation requires meticulous analysis, strategic planning, and effective management of the process. He introduces the concept of the "breakthrough negotiator," who must diagnose situations, shape structures, manage processes, and assess outcomes. Watkins also highlights the importance of leadership in negotiation, as the best negotiators are also leaders who can unite and guide a team towards a successful outcome. The book provides a comprehensive framework and practical tools for mastering the art of negotiation, ensuring consistent success at the negotiating table.

Table of Contents

1. Foundations of the Breakthrough Approach
   • The Four Key Tasks of Negotiators
   • Diagnosing the Situation
   • Shaping the Structure
   • Managing the Process
   • Assessing the Results
2. Building the Breakthrough Toolbox
   • Overcoming Power Imbalances
   • Building Coalitions
   • Managing Conflict
   • Leading Negotiations

Analyzing and Explaining Key Concepts

The Four Key Tasks of Negotiators

Watkins breaks down the complexity of negotiation into four key tasks: diagnosing the situation, shaping the structure, managing the process, and assessing the results. These tasks form the foundation of the breakthrough approach to negotiation. By understanding and mastering these tasks, negotiators can significantly enhance their effectiveness and achieve superior outcomes.

Diagnosing the Situation

The first step in any negotiation is a thorough diagnosis of the situation. Watkins identifies seven key structural elements to consider: parties, rules, issues, interests, alternatives, agreements, and linkages. Understanding these elements helps negotiators to clearly see the landscape of the negotiation and identify potential barriers and opportunities.

“Thorough analysis of a situation and its structure is an essential negotiating skill and a hallmark of breakthrough negotiators.” - Michael Watkins

By diagnosing the situation, negotiators can identify all involved parties, recognize the rules governing the negotiation, uncover all relevant issues, understand the interests of all parties, determine viable alternatives, anticipate possible agreements, and consider how current negotiations might link to others. This comprehensive analysis lays the groundwork for a strategic and informed approach to negotiation.

For example, in a negotiation for a pay raise, the parties involved might include the employee, the direct manager, and possibly the HR department. The rules could be company policies on salary increments, the issues might involve performance metrics and budget constraints, and the interests could include the employee's desire for recognition and financial reward versus the company's need to manage costs. Alternatives might include seeking a job elsewhere, agreements could range from a modest raise to additional benefits, and linkages might involve other employees' salary negotiations impacting the outcome.

Shaping the Structure

Once the situation is diagnosed, the next task is shaping the structure of the negotiation. This involves influencing who participates, what issues are discussed, and how information is controlled. Watkins emphasizes the importance of setting the agenda early and framing the negotiation to guide the discussion in a favorable direction.