Idea in Brief

The Problem

People don’t understand what’s really at stake in a negotiation. Their misconceptions make it much harder to reach an agreement.

Why It Happens

Negotiators focus on the total amount to be divided, not on the value created by an agreement. That leads to conflicting views on power and fairness.

The Solution

Recognize that the gains to be shared are the additional value the agreement creates over and above the sum of the two sides’ best alternatives. This negotiation pie should be divided equally, because both sides are equally essential to creating it.

Negotiation is stressful. A great deal is at stake: money, opportunity, time, relationships, reputations. Often that brings out the worst in people as they attempt to take advantage of the other side or try to look tough. So wouldn’t we all be better off if there was a way to treat people fairly in a negotiation and get treated fairly in return? In the following pages we’ll offer a simple, practical, field-tested approach that enables you to do just that.

A version of this article appeared in the November–December 2021 issue of Harvard Business Review.