Are virtual negotiations more or less effective in creating value for all parties ? The result is mixed. Virtual negotiation tends to leave parties with poorer objective results leaving less warmth and trust during the process. In this article we tell you how to prepare and how to lead a negotiation virtually.
In recent months, almost all negotiations have happened virtually. Even before Covid-19, many negotiators were leveraging digital tools. Technologies such as video, low-cost teleconferencing, and e-mail became opportunities for teams to better plan and negotiate with their counterparts.
First the bad news: Negotiating virtually tends to leave all parties with a poorer objective outcome than planned, leaving less warmth and trust during the process. Furthermore, meta-data analysis from 2002 suggests that group decision making is less effective, less satisfying, and longer when groups do not communicate face to face .
As for email – which is introverts’ preferred refuge for managing conflict – we tend to be less cooperative , perhaps because we have less inhibition about expressing complaints or negative opinions. We also tend to overestimate how well our messages have been understood by our recipients . Studies from 2019 also show that we are not very good at reading emotions through email.
The good news is that research suggests possibilities to increase our chances of being successful in negotiations in a virtual context.
When you are planning Virtual Negotiations
1. Assign clear roles to your team:
Calls with more than 4 people can quickly cause you to lose track. Be sure to ask: Who will open the meeting? Who will explain the proposal? Who will answer the questions? Who will summarize next steps? What will offline communication be like?
2. Specify – and practice – non-online methods to communicate:
There are many stories where “private” messages appear on the main screen and are visible to everyone. To avoid this, different tools can be used. For example, if you’re using Zoom, use your phone and a different app to chat with your coworkers.
3. Keep conversations short:
Chatting during negotiations can be important, but one study found that performing multiple activities in parallel on a smartphone while negotiating produces lower results , is rated as less professional, and decreases counterparts’ trust. To communicate with a partner in a negotiation, brevity is a virtue.
4. The bigger the better:
Charles Naquin and his colleagues found that negotiators who communicated via video performed better than negotiators who used email or text messages. Additionally, those who used a larger computer screen performed better than those who used a smaller screen. The easier you can see your counterparts, the less brain effort will be wasted.
5. Short and concrete:
Just as video and telephone are preferred over email or text, they are also draining. Videos and short teleconferences can allow the parties to have greater attention in the negotiations.
When you are leading Virtual Negotiations
1. Generate connections at the beginning:
Taking a few minutes to connect over general chat can help generate a more collaborative interaction. Studies by Michael Morris show that individuals randomly assigned to have a prior conversation before negotiating by email obtained better financial and social results , compared to those who began negotiating immediately.
In another experiment, negotiations were started with some humor, generating superior results. In general, having connections on a personal level has a powerful effect at different stages of negotiation .
2. Clarify restrictions and assumptions:
Video meetings and teleconferences can start badly if the interlocutors start at different times. After taking a few minutes to connect with people, be sure to quickly clarify the purpose of the meeting and the time frame. For example, if a key party needs to leave early, you can reconfigure the agenda at the beginning of the conversation.
3. Hide own view:
Evidence suggests that when you see yourself during a call it tends to increase self-awareness and self-criticism. Particularly, if you have already shown this tendency, it is better that you turn off the video where you see yourself.
In the end, there is no substitute as rich as negotiating “face to face.” However, as we navigate this period of virtuality, it is useful to remember that digital tools can enable more efficient negotiations and can help us stay connected – if we can understand how we can put these tools to their best use.
Adapted and Translated from English by: Hal Movious (Harvard Business Review)
