famous negotiations
As far as famous negotiations go, this was a classic professional sports dispute. Beginning in March 1998, National Basketball Association team owners and players found themselves at a stalemate over the terms of a new collective bargaining agreement. When the clock struck midnight on June 30, the owners declared a lockout, bringing preparations for the 1998–99 season to a standstill.
What followed was a grueling six months of negotiation, during which both sides watched hundreds of millions of dollars slip away as they struggled to bridge their differences.
In the end, it was a deadline that resolved the conflict.
The team owners announced that if an agreement was not reached by January 7, 1999, the remainder of the season would be canceled. In effect, the owners imposed a final—and largely arbitrary—deadline on their participation in the negotiations. The date itself had little intrinsic meaning to either side.
Business Crisis Management
Claim your FREE copy: Business Crisis Management
Crisis negotiation skills can make or break a negotiator in heated conflicts. Learn these skills from the experts at Harvard Law School when you download our FREE Special Report, Business Crisis Management: Crisis Communication Examples and How to Use Police Negotiation Techniques
Through public statements, the owners committed themselves to declaring an impasse if the deadline passed without a deal. In the early morning hours of January 6, the two sides agreed to contract terms that strongly favored the owners.
Why Deadlines Break Negotiation Impasses
Most of us are familiar with negotiation case stories like this one: tough opponents bargain for months with little progress, only to reach agreement in the final moments before a critical deadline. Without time pressure, negotiators are often tempted to stall, hoping that delay alone will force the other side to give in.
Despite their proven effectiveness, deadlines remain one of the most misunderstood tools in negotiation. Many negotiators hesitate to set deadlines at all.
n his research, Don Moore of Carnegie Mellon University asked participants to predict how deadlines would affect negotiations. Even experienced negotiators believed that a shared deadline would hurt them by forcing premature concessions—thereby helping the other side.
There is some truth to this concern. Deadlines do increase pressure. But they do so for everyone involved.
Using Deadlines to Counter Stalling Tactics
Negotiators who understand that deadlines affect both sides can use them to defuse costly stalling strategies. In many negotiation scenarios, delay itself becomes a tactic.
Consider a familiar example: car salespeople sometimes draw out price negotiations, hoping that the time you have invested will increase your psychological commitment to closing the deal. One way to counter this approach is to establish a clear deadline from the outset. Letting the salesperson know that you have only an hour to reach a possible agreement can change the tone and pace of the negotiation immediately.
Because deadlines put pressure on all parties, they often restart stalled talks and focus attention on closing the deal rather than prolonging the process.
Why Sharing Your Deadline Can Strengthen Your Position
Negotiators often assume that deadlines should be kept secret. Yet research and experience suggest the opposite.
When negotiators credibly communicate a final deadline, they tend to achieve better outcomes. There are two main reasons for this:
Reduced risk of no deal. When both sides know time is limited, they are more likely to work toward resolution before the deadline expires.
Faster concessions. An informed opponent understands that delay will not yield additional leverage and is more likely to make concessions sooner.
The NBA owners’ January 7 deadline would have been meaningless had it been kept private. If the players’ union had expected negotiations to continue regardless of the date, the deadline would have had little impact. Its effectiveness depended on the owners’ public commitment to it.
This dispute remains one of the famous negotiations we can all learn from—particularly when it comes to the strategic use of deadlines.
What have you learned from famous negotiations? Share your story with us in the comments.
Business Crisis Management
Claim your FREE copy: Business Crisis Management
Crisis negotiation skills can make or break a negotiator in heated conflicts. Learn these skills from the experts at Harvard Law School when you download our FREE Special Report, Business Crisis Management: Crisis Communication Examples and How to Use Police Negotiation Techniques
### Related Posts