Arabnews24.ca:Tuesday 1 November 2022 07:39 AM: Aiming high could have unexpected consequences
By Sherif Attar
In a world of ever-changing ambiguity and uncertainty, executives have to face two challenges: excellent performance and people development. Where many managers think those endeavours are “competing”, this author believes they are “completing”. GET DOWN TO BUSINESS argues.
Adapted from Katherine Shonk
Your high aspirations prior to the negotiation set you up for a partnership that needed to be managed with particular care, suggest researchers Lei Lai (Tulane University), Hannah Riley Bowles (Harvard Kennedy School), and Linda Babcock (Carnegie Mellon University) in a recent study.
Abundant research supports the immediate benefits of aiming high in negotiation. But challenging goals may negatively affect the relationships that spring from negotiated deals.
The positives of aiming high
When negotiators set specific, challenging goals (such as “I’m going to try to negotiate a rate that’s 10 per cent higher than I’ve earned on past projects”), they consistently achieve better objective outcomes for themselves than do those who set lower or vague goals (such as “I’ll do my best”). Negotiators with relatively high aspirations also contribute to more efficient agreements for both sides.
The simple act of visualising and committing to a goal helps us anticipate how we will attain it.
Set high goals for success
Lai and her team’s findings hint at a dark side to setting high goals in negotiation: namely, high goals seem to work so well that your counterparts may resent your success. As a result, they may find you unlikable, be reluctant to work with you in the future, and behave selfishly toward you when given a chance.
In one-off negotiations where you don’t expect to cross paths with your negotiating counterpart again, it may matter little if he doesn’t like you. But most negotiations, of course, carry at least the possibility of future interactions. If you are happy with your experience negotiating for a new car, for example, you may recommend the dealership to friends or choose to return when it comes time to buy your next car. Thus, it is typically important to look for ways to balance your desire to meet a high goal with the need to build a good relationship.
There are several ways you can try to manage your counterpart’s satisfaction – and odds of co-operating with you in the future – while still aiming high.
Manage wins and losses
Research by Nobel laureate Daniel Kahneman and Amos Tversky shows that people prefer to experience several “wins” rather than one, but show the opposite preference for losses. Thus, make concessions, issue rewards, and deliver good news in stages rather than all at once – but convey bad news in one big chunk.
Delay acceptance
A counterpart’s quick acceptance of an offer can cause a negotiator to regret that she didn’t ask for more, Adam D. Galinsky of Columbia University and his colleagues have found in their research. For this reason, even if the other side quickly acquiesces to your high goals, try to prolong the negotiation a bit to improve her overall satisfaction.
Hide your glee
Negotiators tend to be less interested in working again with counterparts who express satisfaction with their results than with those who seem less satisfied, researcher Jared R. Curhan and his colleagues have found.
Your satisfaction may lead your counterpart to assume that you took advantage of him. So if you have success meeting your high goals, keep your exuberance to a minimum.
For questions or suggestions, please send your comments.
Sherif Attar, an independent management consultant/trainer and organisation development authority, delivers seminars in the US, Europe, Middle East and the Far East.
