How team talks can benefit both sides in negotiations

A good negotiation is where both sides benefit. The way to do it is through team talks – but beware of the pitfalls. The following guide will help you realize joint gains.

The pros: More brains around the table

Teams tend to do better than individuals in terms of achieving joint gains because the more smart people there are at the table, the better a full range of issues can be discussed and understood.

The cons: The trust gap

Teams trust each other less than individuals do because, in team dynamics, there is a clearer ‘us/them’ (or ‘in group/out group’) boundary between the two sides. There is also a greater feeling of unknowingness in relation to the other side compared to individual negotiators. The potential benefit can thus be offset by a lack of mutual trust.

The solution: Increase trust

Prior to negotiations, most of the dialogue that teams engage in could be categorized as ‘schmoozing’ – social small talk unrelated to the negotiations. But when teams are instructed to talk about the overarching goals they share with the other side before negotiating for real, it can significantly increase joint gains in the final agreement. This is because this pre-negotiation discussion fosters perceptions of good intentions from the other side – leading to increased trust and greater cooperation.

Key takeaway

Have your team discuss what’s important for all parties to get a better outcome from your negotiations prior to the main talks, when perceptions of the other team are still being formed and there’s the greatest room for these impressions to be shaped and trust to be built.

Jennifer Jordan

Professor of Leadership and Organizational Behavior

Jennifer Jordan is a social psychologist and Professor of Leadership and Organizational Behavior at IMD. Jennifer’s teaching, research, and consulting focus on the areas of digital leadership, ethics, influence, and power. She has received specialized training and certifications in lie and truthfulness detection, as well as in conflict resolution within organizations. She is Program Director of the Women on Boards and the Leadership Essentials program, and co-Director of the Leading Digital Execution program.