Deepak Malhotra’s views on Negotiations: “Concessions are often necessary in negotiation," says the HBS professor . "But they often go unappreciated and unreciprocated." Here he explains four strategies for building good will and reciprocity.
1.Label your concessions:
Your concessions will be more powerful when your counterpart views your initial demands as serious and reasonable.
Second, emphasize the benefits to the other side.
Third, don't give up on your original demands too hastily. If the other side considers your first offer to be frivolous, your willingness to move away from it will not be seen as concessionary behavior. By contrast, your concessions will be more powerful when your counterpart views your initial demands as serious and reasonable.
2. Demand and define reciprocity
Labeling your concessions helps trigger an obligation to reciprocate, but sometimes your counterpart will be slow to act on that obligation. To increase the likelihood that you get something in return for your concession, try to explicitly—but diplomatically—demand reciprocity.
3. Make contingent concessions
One hallmark of a good working relationship is that parties don't nickel-and-dime each other for concessions. Rather, each side learns about the interests and concerns of the other and makes good-faith efforts toward achieving joint gains.
4. Make concessions in installments
When trust is low or when you're engaged in a one-shot negotiation, consider making contingent concessions.