Negotiating Grounds: A Matter of Location - Yours or Mine?
When it comes to negotiation, the location can play a significant role in shaping the outcome of a deal. A recent study suggests that the three rules of real estate - "Location! Location! Location!" - hold just as much importance in making deals as they do in property transactions.
Negotiating at your own office offers advantages such as familiarity with the environment, control over the meeting room, seating, and hospitality, and cost savings from eliminating travel costs. However, negotiating on the other side's territory can provide opportunities to learn about the other party, their business, and the conditions in which they operate.
The choice of a negotiating site has symbolic value in negotiations. Entering your counterpart's territory can show your serious intent and strong desire to make a deal, which can be invaluable in persuading them to sign a contract. On the other hand, negotiating at home allows control over the negotiation environment, including the selection and arrangement of the meeting room, seating, and hospitality, and spares the negotiator from pressures of being away from family, friends, and daily routines.
However, the home field doesn't hold an advantage in terms of learning about the other party during negotiations. A vital purpose of any business negotiation is to allow both sides to learn about each other. Therefore, it's crucial to create a collaborative atmosphere that encourages open communication and trust-building.
Understanding the parties involved is another key consideration. Research suggests that negotiators with a cooperative style are more successful at finding novel solutions that benefit all sides. Be aware of cultural or personal differences that may influence comfort levels in certain settings. For example, some parties may feel more at ease in formal or neutral locations.
To select an environment that maximizes the likelihood of a successful, mutually beneficial deal, consider the following recommendations:
1. **Understand the Parties Involved:** Assess whether the other party prefers a cooperative, collaborative approach or a more competitive style. Be aware of cultural or personal differences that may influence comfort levels in certain settings.
2. **Create a Collaborative Atmosphere:** Choose an environment that facilitates open communication and trust-building. This could be a neutral, private meeting room rather than a noisy public space.
3. **Physical and Psychological Comfort:** Select a venue that is neutral for both parties to prevent any sense of home-field advantage, which can create tension. Ensure the space is private enough so that sensitive information can be discussed without distractions or concerns about confidentiality. The setting should be comfortable and free from unnecessary stressors, such as noise, interruptions, or extreme temperatures.
4. **Technological and Logistical Readiness:** If virtual negotiation is required, ensure reliable internet, video conferencing tools, and technical support are available. Consider the timing, scheduling, and availability of necessary materials or documents.
By carefully considering these elements, you can select an environment that fosters trust, openness, and ultimately, a successful deal. Remember, the answer to "Your place or mine?" can dramatically affect the ensuing negotiation process and, ultimately, the end result.
For more insights on negotiation strategies and techniques, download a free special report titled "Negotiation Skills: Negotiation Strategies and Negotiation Techniques to Help You Become a Better Negotiator" from the Program on Negotiation at Harvard Law School.
- A vital consideration when choosing a location for negotiation is understanding the preferences and comfort levels of the parties involved, taking into account cultural or personal differences.
- To create a collaborative atmosphere during negotiations, select an environment that encourages open communication and trust-building, such as a neutral, private meeting room.
- To prevent any sense of home-field advantage and ensure a comfortable, stress-free negotiation, choose a venue that is neutral for both parties and private enough to discuss sensitive information.
- In the case of virtual negotiations, ensure reliable internet, video conferencing tools, and technical support are available, along with considering the timing, scheduling, and availability of necessary materials or documents.
