Book SummaryNegotiation Genius, by Deepak Malhotra and Max Bazerman

1-Page Summary1-Page Book Summary of Negotiation Genius

In Negotiation Genius, negotiation experts Deepak Malhotra and Max H. Bazerman provide a comprehensive system for negotiating successfully in all areas of your life, whether you’re negotiating a deal with a customer, a salary with a potential employer, or how to divide household chores with your roommate. To be a “negotiation genius,” you must prepare extensively before a negotiation and learn to not only claim but create value. By applying the authors’ strategies,...

Negotiation Genius Summary Prepare for Your Negotiation

According to Malhotra and Bazerman, the first step to good negotiation is preparation. Before you enter a negotiation, you must gather as much information as you can about the other party. Being well-prepared allows you to identify opportunities to add value to both parties, recognize the most effective negotiation strategies to use, and anticipate potential challenges.

(Shortform note: Other experts note the costly consequences of failing to prepare: Poor preparation can triple the amount of time and money spent after a negotiation to fix issues created by less favorable deals.)

Calculate BATNAs, RVs, and the ZOPA

The authors suggest you prepare three main things before entering your negotiation: your and your counterpart’s best alternative to a negotiated agreement (BATNA), reservation value (RV), and zone of possible agreement (ZOPA).

Step 1: Calculate Your BATNA and RV

In every negotiation, you want to make a deal that leaves you better off than if you hadn’t negotiated. To ensure this outcome, you must determine when you should walk away. You can do this by calculating your **best...

Negotiation Genius Summary Create and Seize Value During Your Negotiation

Now that you’ve learned to gather information and estimate BATNAs and RVs, let’s dive into the negotiation process itself. When negotiating, your goal should be to get the best possible deal for yourself while strengthening your relationship with the other party. Building relationships ensures cooperation and enhances your reputation as a negotiator. To achieve a good deal and a stronger relationship, you must not only claim but create value.

(Shortform note: This approach to negotiation is similar to what the authors of Getting to Yes define as principled negotiation, which calls for both parties to work together rather than harbor hidden agendas. They argue that this approach is superior to positional bargaining, which is more adversarial and results in parties defending their positions and focusing on give-and-take. When you focus on cooperation and relationship-building, you can make agreements that satisfy both parties and aren't as time-consuming to reach.)

According to Malhotra and Bazerman, value is anything that...

Negotiation Genius Summary Use Influence Tactics to Make Your Offer More Attractive

Now that you’ve learned to gather information, create value, and overcome obstacles, let’s look at how you can make your offer seem more attractive by using psychology-based techniques and taking advantage of cognitive biases.

1. Highlight potential losses. People tend to fear losing things more than they care to gain things. To make your offer sound more attractive, focus on what your counterpart stands to lose rather than gain.

(Shortform note: You can further highlight potential losses by making what you’re offering seem rare and scarce. According to Robert Cialdini in Influence, how scarce an item is usually reflects how valuable it is, so people will be more strongly motivated to jump on an opportunity that seems scarce.)

2. Bundle negatives and split up positives. People prefer to face one big loss rather than many small ones and receive many small gains over one big one. For example, when asking for concessions, you might ask for them all at once. When giving concessions, split them up and offer them separately throughout your negotiation. This minimizes the pain...

Negotiation Genius Summary Overcome Obstacles That Affect Negotiations

Now that we’ve discussed the negotiation process, let’s look into some common obstacles during negotiations that can impede your ability to understand and communicate with your counterpart.

Cognitive Biases

According to the authors, cognitive biases are common errors in how we think, interpret information, and make decisions that can prevent us from negotiating effectively and recognizing ways to maximize value creation. To be an effective negotiator, you must learn to recognize and confront your biases, as well as those of your negotiation counterpart. The authors argue that it’s much easier to achieve a good outcome with a good negotiator than one who’s thinking irrationally.

(Shortform note: Malhotra and Bazerman focus on the ways cognitive biases can harm our negotiations, but other experts point out that these biases are, on the whole, necessary and even helpful in our daily lives. In Influence, Robert Cialdini explains that these biases are mental shortcuts that allow us to make quick decisions and thereby navigate the world effectively. Without...

Shortform Exercise: Create More Value During Your Next Negotiation

Use Malhotra and Bazerman's tips for identifying and creating value to achieve a better negotiation outcome for both you and your counterpart.

Think about an upcoming negotiation you have. Describe the parties involved and the context of the negotiation.