You’ve heard all about the importance of preparation, knowing your BATNA, active listening, and other critical tools to maximize your chances of success in any negotiation. But negotiators often overlook a vital aspect of deal-making that could make or break their success: the location.
If you think
a conference room is just a conference room, think again. Location means far
more than the pictures on the wall and the wood color of the table. Whether
your exchange takes place in your own office, on your adversary’s property, or
at a neutral site – and even if the location isn’t ultimately up to you – you
can still take steps to gain an important advantage.
THE HOME TEAM ADVANTAGE
Just as
most sports teams prefer to compete on their own turf, most negotiators
probably prefer to compete in their own location. As the host, a negotiator can
gain control over the negotiation before it even begins.
First,
the host gets to select the room in which the conversation will take place. To
many, this seems like a mindless task, but to a successful negotiator, room
selection and setup requires consideration. The right location depends on what
you’re trying to accomplish. Will the negotiation be relaxed and friendly, or
perhaps more serious and competitive? From there, you must consider the
features of your room, what mood they may elicit in your opponent, and alter
them if needed.
The
Décor: It’s unrealistic
that you’d change the décor of a room each time you have a meeting, but
depending on the mood you want to set, you can choose intelligently between
your conference room, your own private office, or elsewhere. To set the stage
for a friendly negotiation, choose a more homey space with cupboards or
bookshelves; this setup can help relax your adversary and give the impression
that you’re looking for a win-win outcome. Or are you looking to show your
opponent that he or she is in for a tough debate? Choose a site with an “ego
wall,” complete with your awards and framed newspaper clippings. This setup not
only creates a competitive, almost intimidating atmosphere, but also showcases
your confidence – and appearing confident might even help you gain you a
greater level of respect and give you an easier time getting what you want.
The
Seating Arrangements:
Just like the room’s décor, the seating arrangements should differ based on
your strategy. Trying to strike a friendly tone? Consider putting the seats
closer together and more offset than directly head on. Setting up for a more
formal meeting with multiple parties? Create distance between the chairs and
set them more head on. The distance will lessen the chance of emotional
reactions while the head-on direction helps establish a more competitive
atmosphere.
The
Lighting: Insufficient
lighting has been found to contribute to moodiness and depression, while bright
lights can heighten emotions. A 2014 study found that people with access to
natural light will have a greater sense of overall wellbeing than those without
windows. Is your dark conference room stifling the discussion? Try switching to
a different room with abundant natural light.
Drinks:
Just as with lighting,
research has shown that even the temperature of certain food and drinks can
affect a person’s overall mood. Some researchers believe that the temperature
of an object we hold in our hands impacts how we perceive the world around us
at that moment. So if you have a tense negotiation on your hands, you may want
to offer hot coffee instead of a cold soda.
SUCCEEDING AS THE AWAY TEAM
Being
the “away team” at a negotiation can be intimidating – you are unsure what the
negotiation environment will be, you will have fewer (if any) of your
colleagues nearby, and the only resources at your disposal are those you
brought with you. Nevertheless, many aspects of being the away team can give
you a level-up on the competition.
Gather
As Much Information As You Can: On site at your adversary’s
business? Take advantage of the opportunity to look around for any clues that
might help you negotiate. Perhaps the condition of equipment, number of
employees, or other observations can be used to help you later.
Radiate
Confidence: Remember,
your competitor is in their comfort zone. You were willing to travel to their
home. With that, you are showing confidence in your negotiation skills and
position. Remind yourself that if you didn’t think you would triumph, you
wouldn’t have wasted your time traveling.
Limited
Resources May Be a Good Thing: You should never show up to a negotiation ill-prepared, but
as the visiting team, you can always buy time with the excuse that you don’t
have certain information on hand. Take the position that your host has no just
reasoning as to why he or she can’t explain a claim or back up a position with
evidence – all the files are right there. Don’t be shy about pointing that out.
Just
Move It: Maybe
your competitor set up the room with his or her own comfort in mind, but who
says you can’t change it? If you are uncomfortable with the seating
arrangements in the negotiation room – the chairs are too far apart or there is
a light shining in your eyes – just move your chair. You’ll get more
comfortable and project confidence.
A NEUTRAL SETTING
Meeting at a neutral
location? There are still steps you can take to steer things your way:
Background Noise: Are you expecting a challenging and
lengthy negotiation? Consider a quiet setting
such as a hotel conference room; a pause in conversation will be met with
silence, which both conveys seriousness and could even prompt your adversary to
keep talking to avoid awkwardness. Want to set a calmer tone and put your
opponent at ease? Suggest a restaurant with a bit of background noise, which
will allow for natural breaks in the negotiation.
The
Impression: How
important is this deal to you and your competitor? If this negotiation is key
to your success, show that by suggesting an upscale environment.
The
takeaway: if you haven’t adequately prepared for the negotiation or mastered
the emotional principles at play at every negotiation table, the diplomas on
the wall and the location of your chair won’t save you. But smart negotiators
play up every advantage they can. As the saying in the real estate industry
goes, “Location, location, location.” Don’t underestimate its importance in
your next negotiation!