Hiding or Sharing Information During Contract Negotiation
Every negotiator must determine whether to conceal information about their position or whether revealing information in negotiation is the best strategy for finding jointly with their counterpart. This solution meets both sides’ interests. If you are interested in learning more, visit this page.
Business negotiations tend to necessitate deception. Few negotiators offer the truth when asked, “What is your bottom line?” in simple distributive negotiation. They deflect, alter the subject, or lie. Even generally cooperative negotiators frequently inject straw issues or overstate the severity of minor problems in more complex, multi-issue talks to get concessions on what matters. A critical skill in practically all negotiating engagements is the capacity to signal that you are relatively firm on positions when, in fact, you are flexible – in other words, to bluff about your objectives.
Conventional wisdom is to withhold information.
Most of us intuitively assume it is best to keep what is essential to us secret from our counterparts. The belief is that the more the counterpart knows about you, the more they will use this information to their advantage. Negotiation coaches who only provide tips and methods to get the most out of the negotiation, to the cost of the counterpart, frequently promote this idea. Is that, however, the correct thing to do?
The first stage is information sharing during the negotiation. In Harvard-style interest-based negotiation, one should delve beyond the declared stances to find the parties’ true interests. Once these interests are known, the parties can collaborate to discover solutions that satisfy them to the greatest extent possible (preferably symmetrically). Positions are simple to understand. These are what the parties initially state. Yet, recognizing interests necessitates more information sharing during the negotiation process.
Negotiation is a two-way street: the opposing side should put in as much effort as you do to fully know their counterpart’s interests. If one party makes significant efforts to conceal facts from the other, the interest-based negotiation process will fail.
- A win-win situation necessitates proper information exchange.
- Hiding information makes achieving this goal more difficult, if not impossible.
To help the other party table information, top negotiators employ specific skills such as labeling, mirroring, and calibrated questions. As a result, they are eager to share information with their counterpart. This determines all variables that can optimize the contract for both parties. However, remember that negotiation is a delicate skill and requires proper coaching. It is best to get the help of a contract review and negotiation attorney to ensure that you do not make any mistakes.