BazermanMoore

divided between negotiators. Yet, far too many negotiators focus only on claiming value
and therefore fail to create value. Having pummeled the other side effectively, they
walk away confident and satisfied, but also lacking the value that could have been created.
Would you rather claim 60 percent of a $1,000 pie, or 55 percent of a $2,000 pie?
Even if you get a smaller portion of a large pie, this tradeoff may be profitable for you.
Again, we are not preaching that negotiators have to be nice. The most self-interested
negotiators should still want to create a bigger pie in order to claim more of that pie for
themselves.
THE TOOLS OF VALUE CREATION
When we teach negotiation, our executive and MBA students often fail to find mutually
beneficial trades in simulations. As we present data that clarify that tradeoffs were possible,
the students immediately respond by asking how they could have created optimal
value when they lacked key information about the other side’s interests and positions.
This section reviews six strategies for collecting that information. While no single strategy
is guaranteed to work in a specific situation, they collectively increase the likelihood
of creating the biggest pie possible. The list begins with strategies that work best when
you trust the other side. As we move down the list, we get to strategies that help create
value even when your relationship with the other side is competitive or even hostile.
Build Trust and Share Information
The Tools of Value Creation 161
The easiest way for parties to create value is for the two opponents to share information
with each other about their preferences—specifically, the values that they place on different
issues. Once this information comes to light, the parties can maximize joint
benefit.
Unfortunately, information sharing is easier said than done. People are much more
comfortable sharing information when they trust one another. Yet we often are reluctant
to trust the other side in a negotiation because we believe that giving away information
could prevent us from claiming value. In one negotiation simulation that we use
in our teaching, for example, the two parties represent two different divisions of the
same corporation. The vast majority of participants do not create the biggest pie possible.
They fail to share information, despite being part of the same corporation! Surprisingly,
many executives note that it is harder to negotiate within their own firm than with
an outside supplier or customer. There is something wrong when negotiators in the
same organization fail to share information and destroy organizational resources as a
result. Much more information sharing should occur within organizations, as well as
between organizations.
In addition, Malhotra and Bazerman (2007) argue that it is useful to build trust
when your cooperative behavior cannot be interpreted as self-serving. Even the untrustworthy
appear nice when they are trying to get the deal. But rational negotiators
maintain and strengthen relationships with others even when there is no obvious economic
or political reason to do so. This relationship building can increase the likelihood
that your next negotiation will be with someone who happens to trust you. Finally, remember
that the best way to build trust is to actually be trustworthy!