One thing that I have observed in the 'kiwi' way of doing things is that negotiation is approached in a very liner viewpoint. First one option is put forward, then another option if the first was unsuccessful - and so on until an outcome.
MESO negotiation strategies involving multiple equivalent simultaneous offers at the bargaining table
In MESO negotiation, where multiple offers are presented simultaneously at the negotiation table, effective negotiators seek opportunities to create value. By making tradeoffs across issues, parties can obtain greater value on the issues that are most important to them. Probably the only place I see this happening regularly is in government pay negotiations with strong unions that understand their environment.
So, going back to the 'traditional' way of starting with a single offer to start the process, how can you be sure you’re making the right opening offer?
If the negotiations involve many issues, you can create a great deal of value by making multiple equivalent simultaneous offers, or MESOs.
MESO negotiation strategy entails identifying several proposals that you value equally and presenting them to the other side.
Let's use a salary negotiation as an example.
You might realise that you are equally willing to accept any of these employment packages: $80,000 per year with five weeks’ leave and a requirement to spend 30% of your working time traveling; $75,000 per year with four weeks’ leave and 25% travel, or $65,000 per year with four weeks’ vacation, 5% travel, and the ability to work flexible hours and from home as desired.
By making multiple equivalent simultaneous offers, the theory goes, you appear to be a lot more flexible, collect information about the other side’s preferences based on which offer she likes best, and increase the odds of reaching a mutually beneficial negotiated agreement.
Until recently, the value of MESO negotiation was based on logic rather than on empirical results.
Recent empirical studies have proved that this strategy does, in fact, help create value for negotiators. In addition, making MESOs helps the offering party claim more value by more efficiently meeting the needs of the other side.
Finally, while the offering party succeeds at both claiming and creating value, the other side perceives him as more flexible and accommodating. The only cost of the strategy is that it requires thorough preparation prior to entering into a negotiation.
The evidence is in: making multiple offers simultaneously is an effective negotiation strategy but it is one that is used far too infrequently.
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