Last week was fabulous! For the first time in two full years, I was back in front of an HBS classroom—at long last, teaching in-person. Yes, in the meantime we did get better at running virtual courses, but nothing compares with the engagement, spirited debate, and hearty laughs we share when we are truly together.
This was in an executive course, Strategic Negotiation, led by my colleague Jim Sebenius, with participants from twenty-four countries. One of the simulations I debriefed put them in the challenging (though, welcome) position of having to manage two parallel negotiations.
Imagine, for example, that you’re a property owner who’s dealing with two possible buyers. Or flip that role. You could be a would-be buyer who is considering acquiring one or the other of two different places.
I’m not talking about situations where you have sure thing in your grasp, say a firm job offer, and you’re just seeing if you can get an even better deal from someone else. Instead I’m speaking of trying to find agreement with one party when your no-deal alternative (your “BATNA”) is the uncertain possibility of striking a deal with somebody else. Think of this as the “two birds in the bush, with no bird in hand” problem.
It's actually a very common situation, maybe more the rule than the exception. If you’re trying to fill a position in your company, for example, you’ll be connecting with several finalists simultaneously, not one at a time. (And they likely will be dealing with other potential employers.) Same with shopping for a car or a new home. When you find yourself in such circumstances, consider some of the issues we explored in the executive class last week.
First, recognize that you’re lucky. Yes, running parallel negotiations is more challenging, but it’s a whole lot better than having no viable options.
Second, weigh how you should invest your time. Do you put an equal amount of effort into each possible deal, or go all-in on the most promising one? Perhaps you should give that one priority, but don’t let the others languish. You may discover that one or more of them is more attractive than you first thought.
Third, have an explicit learning agenda. If you have several options, you can discover more about the market you’re functioning in. If you’re job hunting, for example, you may uncover a variety of ways to structure compensation. What you learn in one negotiation may help you in another.
Fourth, if you have two attractive options, give some thought to how you can vary your approach each one. With Option A, it might be wise to not be overly demanding. Seek a good outcome, though maybe not a great one. This can become your “bird in the hand.” Then with Option B, you could be more ambitious and push for your dream deal. If that works out, great. If it doesn’t, you’re still going to land on your feet.
Finally, watch out for option-overload. The more alternatives you pursue, the less time and attention you’ll have to devote to negotiating a well thought out and creative agreement. And don’t forget that whoever you’re negotiating with may well have options, too. There’s a time to explore alternatives. There’s also a time when they may disappear.
P.S. On a closely related topic, check out “How to Manage a Job Offer When You’re Still Interviewing Elsewhere,” a free Harvard Business Review web article. It offers strategies for buying time without losing the opportunity.
Housekeeping
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Be well! Mike